Common use of Allocation of Direct Expenses Clause in Contracts

Allocation of Direct Expenses. The parties acknowledge that the Building is part of a multi-building commercial project consisting of the Building, and the Other Existing Buildings and such other buildings as Landlord (and/or any other owners of the Project) may elect to construct and include as part of the Project from time to time in accordance with the terms hereof (the Other Existing Buildings and any such other buildings are sometimes referred to herein, collectively, as the “Other Buildings”), and that certain of the costs and expenses incurred in connection with the Project (i.e. the Operating Expenses, Tax Expenses and Utilities Costs) shall be shared among the Building and/or such Other Buildings, while certain other costs and expenses which are solely attributable to the Building and such Other Buildings, as applicable, shall be allocated directly to the Building and the Other Buildings, respectively. Accordingly, as set forth in Sections 4.1 and 4.2 above, but subject to the limitations contained in this Section 4.3, Operating Expenses, Tax Expenses and Utilities Costs are determined annually for the Project as a whole (excluding, however, any such costs incurred solely by an owner of any Other Building(s) that is other than Landlord or a common area association for the Project and that do not pertain to shared common costs for the shared Common Areas of the Project), and a portion of the Operating Expenses, Tax Expenses and Utilities Costs, which portion shall be reasonably determined by Landlord on an equitable basis, shall be allocated to the Building (as opposed to the tenants of the Other Buildings), and such portion so allocated shall be the amount of Operating Expenses, Tax Expenses and Utilities Costs payable with respect to the Building upon which Tenant’s Share shall be calculated. Such portion of the Operating Expenses, Tax Expenses and Utilities Costs allocated to the Building shall include all Operating Expenses, Tax Expenses and Utilities Costs which are attributable solely to the Building, and an equitable portion of the Operating Expenses, Tax Expenses and Utilities Costs attributable to the Project as a whole (excluding, however, any such costs incurred solely by an owner of any Other Building(s) that is other than Landlord or a common area association for the Project and that do not pertain to shared common costs for the shared Common Areas of the Project. As an example of such allocation with respect to Tax Expenses and Utilities Costs, it is anticipated that Landlord (and/or any other owners of the Project) may receive separate tax bills which separately assess the improvements component of Tax Expenses for each building in the Project and/or Landlord may receive separate utility bills from the utility companies identifying the Utilities Costs for certain of the utilities costs directly incurred by each such building (as measured by separate meters installed for each such building), and such separately assessed Tax Expenses and separately metered Utilities Costs shall be calculated for and allocated separately to each such applicable building. In addition, in the event Landlord (and/or any other owners of the Project) elect to subdivide certain common area portions of the Project such as landscaping, public and private streets, driveways, walkways, courtyards, plazas, transportation facilitation areas and/or accessways into a separate parcel or parcels of land (and/or separately convey all or any of such parcels to a common area association to own, operate and/or maintain same), the Operating Expenses, Tax Expenses and Utilities Costs for such common area parcels of land may be aggregated (subject to the limitations contained in this Section 4.3) and then reasonably allocated by Landlord to the Building and such Other Buildings on an equitable and reasonable basis (based upon sound real estate management and accounting practices, consistently applied) as Landlord (and/or any applicable covenants, conditions and restrictions for any such common area association) shall provide from time to time; provided, however, all such allocations shall be consistently applied and implemented in a non-discriminatory manner against Tenant.

Appears in 1 contract

Samples: Genesis Campus Point (Heron Therapeutics, Inc. /De/)

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Allocation of Direct Expenses. The parties acknowledge that the Building is a part of a multi-building commercial project consisting of the Building, and the Other Existing Buildings and such other buildings as Landlord (and/or any other owners of the Project) may elect to construct and include as part of the Project from time to time in accordance with the terms hereof (the Other Existing Buildings and any such other buildings are sometimes referred to herein, collectively, as the “Other Buildings”), and that certain of the costs and expenses incurred in connection with the Project (i.e. the Operating Direct Expenses, Tax Expenses and Utilities Costs) shall will be shared among between the Building and/or such Other Buildings, while certain other costs tenants and expenses which are solely attributable to the Building and such Other Buildings, as applicable, shall be allocated directly to occupants of the Building and the Other Buildings, respectivelytenants and occupants of the other buildings in the Project. Accordingly, as set forth in Sections 4.1 and Section 4.2 above, but subject to the limitations contained in this Section 4.3, Operating Expenses, Tax Direct Expenses and Utilities Costs are shall be determined annually for the Project as a whole (excludingwhole, and Tenant shall be responsible for paying Tenant’s Share of the Direct Expenses, provided, however, Landlord in its sole discretion, may determine and allocate some or all Direct Expenses for each Building, in which case Tenant’s Share of such Direct Expenses shall be based on the percentage equal to its proportionate share of the building in question. To the extent the entire Project is not fully occupied, Landlord shall adjust the variable components of Operating Expenses for the Base Year (and at Landlord’s option, Landlord may adjust the variable components of Operating Expenses for any Expense Year if the Project is not fully occupied in such costs incurred solely by an owner of any Other Building(s) that is other than Landlord or a common area association Expense Year), based on Landlord’s reasonable, good faith estimate based on historical operating expense information for the Project and that do not pertain or other reasonable data available to shared common costs for the shared Common Areas of the Project)Landlord, and a portion of the Operating Expenses, Tax Expenses and Utilities Costs, which portion shall be reasonably determined by Landlord on an equitable basis, shall be allocated to the Building (as opposed to the tenants of the Other Buildings), and such portion so allocated shall be determine the amount of Operating Expenses, Tax Expenses that would have been incurred in the Project had the Project been one hundred percent (100%) occupied; and Utilities Costs payable with respect the amount so determined shall be deemed to have been the amount of Operating Expenses for such year attributable to the Building upon which Project. If, during the Lease Term: (a) any portion of rentable square feet of the Common Areas is converted for exclusive use by occupants of the Project other than Tenant, such that Tenant no longer has use thereof as contemplated by the terms of this Lease, the rentable square feet of the Premises shall be recalculated according to the BOMA Standard, and Base Rent for the Premises and Tenant’s Share shall be calculated. Such portion reduced accordingly as of the Operating Expensesdate such areas are no longer available for use by Tenant as contemplated by this Lease, Tax Expenses and Utilities Costs allocated /or (b) additional rentable square feet of improvements which are not Common Areas are added to the Building Project, Tenant’s Share shall include all Operating Expenses, Tax Expenses and Utilities Costs which be reduced accordingly as of the date such rentable square feet are attributable solely occupied by a tenant or occupant that is entitled to the Building, and an equitable portion of the Operating Expenses, Tax Expenses and Utilities Costs attributable to the Project as a whole (excluding, however, any such costs incurred solely by an owner of any Other Building(s) that is other than Landlord or a common area association for the Project and that do not pertain to shared common costs for the shared Common Areas of the Project. As an example of such allocation with respect to Tax Expenses and Utilities Costs, it is anticipated that Landlord (and/or any other owners of the Project) may receive separate tax bills which separately assess the improvements component of Tax Expenses for each building in the Project and/or Landlord may receive separate utility bills from the utility companies identifying the Utilities Costs for certain of the utilities costs directly incurred by each such building (as measured by separate meters installed for each such building), and such separately assessed Tax Expenses and separately metered Utilities Costs shall be calculated for and allocated separately to each such applicable buildingexclusive use thereof. In addition, in the no event shall Tenant’s Share be increased. In no event shall Landlord be entitled to collect from tenants more than one hundred percent (and/or any other owners 100%) of the Project) elect to subdivide certain common area portions of the Project such as landscaping, public and private streets, driveways, walkways, courtyards, plazas, transportation facilitation areas and/or accessways into a separate parcel or parcels of land (and/or separately convey all or any of such parcels to a common area association to own, operate and/or maintain same), the Operating Direct Expenses, Tax Expenses and Utilities Costs for such common area parcels of land may be aggregated (subject to the limitations contained in this Section 4.3) and then reasonably allocated by Landlord to the Building and such Other Buildings on an equitable and reasonable basis (based upon sound real estate management and accounting practices, consistently applied) as Landlord (and/or any applicable covenants, conditions and restrictions for any such common area association) shall provide from time to time; provided, however, all such allocations shall be consistently applied and implemented in a non-discriminatory manner against Tenant.

Appears in 1 contract

Samples: Office Lease (3com Corp)

Allocation of Direct Expenses. The parties acknowledge that the Building Retail Area is part of a multi-building commercial an office and retail project consisting of the Building, Building and the Other Existing Buildings and such other buildings as Landlord (and/or any other owners of the Project) may elect to construct and include as part of the Project from time to time in accordance with the terms hereof (the Other Existing Buildings and any such other buildings are sometimes referred to herein, collectively, as the “Other Buildings”)Retail Area, and that certain of the costs and expenses incurred in connection with the Project Real Property (i.e. i.e., certain of the Operating Direct Expenses, Tax Expenses and Utilities Costs) shall be shared among the Building and/or such Other Buildingsand the Retail Area, while certain other costs and expenses which are solely attributable or exclusively pertaining to the Building and such Other Buildingsand/or the Retail Area, as applicable, shall be allocated directly to the Building and and/or the Other BuildingsRetail Area, respectively. Accordingly, as set forth in Sections 4.1 and 4.2 through 4.5 above, but subject to the limitations contained in this Section 4.3, Operating Expenses, Tax Direct Expenses and Utilities Costs are determined annually for the Project Real Property as a whole (excluding, however, any such costs incurred solely by an owner of any Other Building(s) that is other than Landlord or a common area association for the Project and that do not pertain to shared common costs for the shared Common Areas of the Project)whole, and a portion of the Operating Direct Expenses, Tax Expenses and Utilities Costs, which portion shall be reasonably determined by Landlord on an equitable basis, shall be allocated to the Building Retail Area (as opposed to the tenants of the Other BuildingsOffice Building), and such portion so allocated shall be the amount of Operating Expenses, Tax Direct Expenses and Utilities Costs payable with respect to the Building Retail Area upon which Tenant’s Share shall be calculated. Such portion of the Operating Expenses, Tax Direct Expenses and Utilities Costs allocated to the Building Retail Area and payable by Tenant hereunder shall include all Operating Expenses, Tax Direct Expenses and Utilities Costs which are attributable solely to the BuildingRetail Area, and an equitable portion of the Operating Expenses, Tax Direct Expenses and Utilities Costs attributable to the Project Real Property as a whole (excludingwhole, however, any such costs incurred solely by an owner of any Other Building(s) that is other than Landlord or a common area association for the Project and that do not pertain to shared common costs for the shared Common Areas net of the Projectsame costs attributable to the Retail Area. As an example of such allocation of Direct Expenses, with respect to Tax Expenses repairs and Utilities Costscapital improvements to be made to the Office Building or Retail Area, it is anticipated that Landlord (and/or any other owners of the Project) may receive separate tax bills which separately assess cost thereof shall be allocated directly to the improvements component of Tax Office Building or Retail Area, as applicable, and not included in Operating Expenses for each building in the Project and/or Landlord may receive separate utility bills from Real Property as a whole or allocated to the utility companies identifying the Utilities Costs for certain of the utilities costs directly incurred by each such building (Office Building or Retail Area, as measured by separate meters installed for each such building), and such separately assessed Tax Expenses and separately metered Utilities Costs shall be calculated for and allocated separately to each such applicable buildingapplicable. In addition, in the event that prior to execution of this Lease or at any time thereafter Landlord (and/or any other owners of the Project) elect has elected or subsequently elects, at its sole option, to subdivide certain common area portions of the Project such as landscaping, public and private streets, driveways, walkways, courtyards, plazas, transportation facilitation areas and/or accessways into a separate parcel or parcels of land (certain portions of the Real Property, including portions on which the Office Building and/or Retail Area are now or hereafter located and/or certain Common Areas of the Real Property and/or has separately convey conveyed or subsequently separately conveys all or any of such parcels to a another person or entity (including to any common area association to own, operate and/or maintain same), the Operating Expenses, Tax Direct Expenses and Utilities Costs for such common area separate parcels of land may shall be aggregated (subject to the limitations contained in the foregoing provisions of this Section 4.34.5) and then reasonably allocated by Landlord to the Office Building and such Other Buildings Retail Area on an a reasonable and equitable and reasonable basis (based upon sound real estate management and accounting practices, consistently applied) as Landlord (and/or any applicable covenants, conditions and restrictions for any such common area association) shall provide from time to time; provided, however, all such allocations shall be consistently applied and implemented in a non-discriminatory manner against Tenant.

Appears in 1 contract

Samples: Retail Lease (KBS Real Estate Investment Trust II, Inc.)

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Allocation of Direct Expenses. The parties acknowledge that the Building is a part of a multi-building commercial project consisting of the Building, and the Other Existing Buildings and such other buildings as Landlord (and/or any other owners of the Project) may elect to construct and include as part of the Project from time to time in accordance with the terms hereof (the Other Existing Buildings and any such other buildings are sometimes referred to herein, collectively, as the “Other Buildings”), and that certain of the costs and expenses incurred in connection with the Project (i.e. the Operating Direct Expenses, Tax Expenses and Utilities Costs) shall will be shared among between the Building and/or such Other Buildings, while certain other costs tenants and expenses which are solely attributable to the Building and such Other Buildings, as applicable, shall be allocated directly to occupants of the Building and the Other Buildings, respectivelytenants and occupants of the other buildings in the Project. Accordingly, as set forth in Sections 4.1 and SECTION 4.2 above, but subject to the limitations contained in this Section 4.3, Operating Expenses, Tax Direct Expenses and Utilities Costs are shall be determined annually for the Project as a whole (excludingwhole, and Tenant shall be responsible for paying Tenant's Share of the Direct Expenses, provided, however, Landlord in its sole discretion, may determine and allocate some or all Direct Expenses for each Building, in which case Tenant's Share of such Direct Expenses shall be based on the percentage equal to its proportionate share of the building in question. To the extent the entire Project is not fully occupied, Landlord shall adjust the variable components of Operating Expenses for the Base Year (and at Landlord's option, Landlord may adjust the variable components of Operating Expenses for any Expense Year if the Project is not fully occupied in such costs incurred solely by an owner of any Other Building(s) that is other than Landlord or a common area association Expense Year), based on Landlord's reasonable, good faith estimate based on historical operating expense information for the Project and that do not pertain or other reasonable data available to shared common costs for the shared Common Areas of the Project)Landlord, and a portion of the Operating Expenses, Tax Expenses and Utilities Costs, which portion shall be reasonably determined by Landlord on an equitable basis, shall be allocated to the Building (as opposed to the tenants of the Other Buildings), and such portion so allocated shall be determine the amount of Operating Expenses, Tax Expenses that would have been incurred in the Project had the Project been one hundred percent (100%) occupied; and Utilities Costs payable with respect the amount so determined shall be deemed to have been the amount of Operating Expenses for such year attributable to the Building upon which Project. If, during the Lease Term: (a) any portion of rentable square feet of the Common Areas is converted for exclusive use by occupants of the Project other than Tenant’s , such that Tenant no longer has use thereof as contemplated by the terms of this Lease, the rentable square feet of the Premises shall be recalculated according to the BOMA Standard, and Base Rent for the Premises and Tenant's Share shall be calculated. Such portion reduced accordingly as of the Operating Expensesdate such areas are no longer available for use by Tenant as contemplated by this Lease, Tax Expenses and Utilities Costs allocated /or (b) additional rentable square feet of improvements which are not Common Areas are added to the Building Project, Tenant's Share shall include all Operating Expenses, Tax Expenses and Utilities Costs which be reduced accordingly as of the date such rentable square feet are attributable solely occupied by a tenant or occupant that is entitled to the Building, and an equitable portion of the Operating Expenses, Tax Expenses and Utilities Costs attributable to the Project as a whole (excluding, however, any such costs incurred solely by an owner of any Other Building(s) that is other than Landlord or a common area association for the Project and that do not pertain to shared common costs for the shared Common Areas of the Project. As an example of such allocation with respect to Tax Expenses and Utilities Costs, it is anticipated that Landlord (and/or any other owners of the Project) may receive separate tax bills which separately assess the improvements component of Tax Expenses for each building in the Project and/or Landlord may receive separate utility bills from the utility companies identifying the Utilities Costs for certain of the utilities costs directly incurred by each such building (as measured by separate meters installed for each such building), and such separately assessed Tax Expenses and separately metered Utilities Costs shall be calculated for and allocated separately to each such applicable buildingexclusive use thereof. In addition, in the no event shall Tenant's Share be increased. In no event shall Landlord (and/or any other owners be entitled to collect from tenants more than 100% of the Project) elect to subdivide certain common area portions of the Project such as landscaping, public and private streets, driveways, walkways, courtyards, plazas, transportation facilitation areas and/or accessways into a separate parcel or parcels of land (and/or separately convey all or any of such parcels to a common area association to own, operate and/or maintain same), the Operating Direct Expenses, Tax Expenses and Utilities Costs for such common area parcels of land may be aggregated (subject to the limitations contained in this Section 4.3) and then reasonably allocated by Landlord to the Building and such Other Buildings on an equitable and reasonable basis (based upon sound real estate management and accounting practices, consistently applied) as Landlord (and/or any applicable covenants, conditions and restrictions for any such common area association) shall provide from time to time; provided, however, all such allocations shall be consistently applied and implemented in a non-discriminatory manner against Tenant.

Appears in 1 contract

Samples: Office Lease (3com Corp)

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