Common use of Annual Operating Costs Clause in Contracts

Annual Operating Costs. As used herein, the term “Annual Operating Costs” shall mean the costs to Landlord of operating, maintaining, repairing and replacing the Property during each calendar year of the Lease Term. Such costs shall include by way of example rather than limitation: All real estate taxes and assessments, general or special, ordinary or extraordinary, imposed upon the Property (including all improvements thereto), reasonable costs incurred in protesting real estate taxes or assessments, reasonable legal fees, salaries, wages, fringe benefits and union dues of workers and other on-site employees of Landlord, all insurance premiums, fees, impositions, costs for repairs, maintenance, service contracts, management fees, governmental permits, overhead expenses, costs of furnishing water, sewer, gas, fuel, electricity and other utility services, janitorial service, trash removal, and the costs of any other items attributable to operating or maintaining any or all of the Property excluding any costs which under generally accepted accounting principles are capital expenditures; provided, however, that Annual Operating Costs shall also include the annual amortization (over the anticipated useful life) of the cost of a capital improvement, plus any interest or financing charges thereon, falling within any of the following categories: (i) a labor-saving or energy-saving device or improvement which eliminates any component of Annual Operating Costs (or which reduces the amount or rate of increase of any component of Annual Operating Costs) from the costs that would have been incurred had such device or improvement not been installed; (ii) an installation or improvement required by reason of any law, ordinance or regulation (including environmental laws), which requirement did not exist on the date of this Lease and is generally applicable to similar office buildings; or (iii) an installation or improvement which directly enhances safety of tenants in the Building generally. If Landlord shall receive an abatement of any real estate taxes or assessments imposed upon the Property relating to any period for which Tenant is obligated to pay Tenant’s Share of Annual Operating Costs under this Xxxxxxxxx 0, Xxxxxxxx shall promptly pay or credit to Tenant an amount equal to Tenant’s Share of the proceeds of such abatement, after deducting Landlord’s cost in obtaining the same. If, due to a future change in the method of taxation, any other tax, however designated (including, without limitation, any rent tax), is imposed in substitution for or in addition to real estate taxes, then such other tax shall be included within Annual Operating Costs. The cost of all goods, services, labor and materials supplied or furnished by Landlord at the request of Tenant solely for the benefit of Tenant and/or the Leased Premises shall not be included within Annual Operating Costs and shall be paid by Tenant promptly upon being billed therefor. Other exclusions to the Annual Operating Costs shall include: (i) costs and expenses incurred in connection with leasing space in the Building, such as leasing commissions, allowances, space planner fees, advertising and promotional expenses, legal fees for the preparation of leases, and rent payable with respect to any leasing office, court costs and legal fees incurred to enforce the obligations of other tenants under leases of portions of the Building, (ii) rental concessions, lease buy-outs or the costs of relocating tenants within the building, (iii) the costs of renovating or otherwise improving or decorating, painting or redecorating any tenant’s space, (iv) any costs representing an amount paid to any person or entity related to or affiliated with Landlord which is material in excess of the amount which would have been paid in the absence of such relationship, (v) overhead or profit paid to Landlord, subsidiaries or affiliates of Landlord for services on or to the Building or common areas if and to the extent the costs exceed competitive costs for such services in comparable first-class office buildings located within five (5) miles of the Building where they are not so provided by Landlord or a subsidiary or affiliate of Landlord, (vi) all costs for which Tenant or any other tenant in the building is being charged other than pursuant to the Annual Operating Costs reimbursement provisions of the Lease, (vii) the cost of any items for which Landlord is reimbursed by insurance to the extent of the reimbursement received, (viii) any interest or penalties incurred by Landlord due to violations of or non-compliance of the Landlord or the building or any part thereof with statutes, laws, regulations or ordinances including without limitation the Americans with Disabilities Act (for purposes of this provision only, collectively, “Laws”), and (ix) cost incurred because of the gross negligence of the Landlord or due to breach of the Landlord under any contractual obligation.

Annual Operating Costs. As used herein, the The term “"Annual Operating Costs” " shall mean all costs Landlord incurs from owning, operating and maintaining the costs to Landlord Building and the lot or tract of operatingland on which it is situated (the Annual "Property"). Annual Operating Costs shall include, maintaining, repairing and replacing the Property during each calendar year of the Lease Term. Such costs shall include by way of example rather than limitation: All real estate taxes and assessmentsinsurance costs, general or special, ordinary or extraordinary, imposed upon the Property including premiums; fees; Impositions (including all improvements theretodefined below), reasonable costs incurred in protesting real estate taxes or assessments, reasonable legal fees, salaries, wages, fringe benefits and union dues of workers and other on-site employees of Landlord, all insurance premiums, fees, impositions, ; costs for repairs, maintenance, maintenance and service contracts, ; management fees, ; landscaping; snow removal; governmental permits, permits fees; costs of compliance with governmental orders and regulations; administrative and overhead expenses, ; costs of furnishing water, sewer, electricity, gas, fuel, electricity and other utility services, for use in Common Facilities of the Building and Property; and the cost of janitorial service, service and trash removal; excluding, and however, from Annual Operating Costs the costs of any other items attributable to operating or maintaining any or all of the Property excluding any following: costs which are treated as capital under generally accepted accounting principles are capital expendituresprinciples; provided, however, that Annual Operating Costs shall also include the annual amortization (over the anticipated useful life) mortgage debt or ground rents incurred by Landlord as owner of the cost Property; income, excess profits, corporate capital stock or franchise tax imposed or assessed upon Landlord, unless such tax or any similar tax is levied or assessed, in lieu of a capital improvement, plus all or any interest or financing charges thereon, falling within any of the following categories: (i) a labor-saving or energy-saving device or improvement which eliminates any component of Annual Operating Costs (or which reduces the amount or rate of increase part of any component currently existing Imposition or an increase in any currently existing Imposition; but only to the extent of Annual Operating Costs) from the costs that would have been incurred had such device or improvement not been installed; (ii) an installation or improvement required by reason of any law, ordinance or regulation (including environmental laws), which requirement did not exist on the date of this Lease substitution and is generally applicable to similar office buildings; or (iii) an installation or improvement which directly enhances safety of tenants in the Building generally. If Landlord shall receive an abatement of any real estate taxes or assessments imposed upon calculated as if the Property relating to any period for which Tenant is obligated to pay Tenant’s Share was the sole asset of Annual Operating Costs under this Xxxxxxxxx 0Landlord, Xxxxxxxx shall promptly pay leasing commissions, accountants' consultants or credit to Tenant an amount equal to Tenant’s Share of the proceeds of such abatementattorneys' fees, after deducting Landlord’s cost in obtaining the same. If, due to a future change in the method of taxation, any other tax, however designated (including, without limitation, any rent tax), is imposed in substitution for or in addition to real estate taxes, then such other tax shall be included within Annual Operating Costs. The cost of all goods, services, labor and materials supplied or furnished by Landlord at the request of Tenant solely for the benefit of Tenant and/or the Leased Premises shall not be included within Annual Operating Costs and shall be paid by Tenant promptly upon being billed therefor. Other exclusions to the Annual Operating Costs shall include: (i) costs and disbursement and other expenses incurred in connection with leasing space negotiations or disputes with tenants or prospective tenants or associated with the enforcement of any leases or the defense of Landlord's title to or interest in the BuildingBuilding in connection with any proceedings involving real property taxes other than disputes regarding tax assessment and reduction of real property taxes; costs of construction of the Building and related facilities and correction of defects in construction of the Building (including permit, license and inspection fees); costs of any items or services sold or provided to tenants (including Tenant) for which Landlord is entitled to be reimbursed by such as leasing commissions, allowances, space planner fees, advertising and promotional expenses, legal fees for the preparation of leases, and rent payable with respect tenants or which are not generally provided to any leasing office, court costs and legal fees incurred to enforce the obligations of other all tenants under leases of portions of the Building, ; fees and higher interest charges caused by Landlord's refinancing the Building; all repairs to the interior of the Building of a structural nature (ii) rental concessions, lease buy-outs not made necessary by unusual use by Tenant); costs incurred due to violation by Landlord or any tenant of the costs terms and conditions of relocating tenants within the building, (iii) the costs of renovating or otherwise improving or decorating, painting or redecorating any tenant’s space, (iv) any costs representing an amount lease; overhead and profit increment paid to any person or entity related to or affiliated with Landlord which is material in excess of the amount which would have been paid in the absence of such relationship, (v) overhead or profit paid to Landlord, subsidiaries or affiliates of Landlord Landlord, or to any party as a result of a noncompetitive selection process, for management or other services on or to the Building or common areas if and for supplies or other materials, to the extent that the costs of such services, supplies or materials exceed competitive the costs for such services in comparable first-class office buildings located within five (5) miles of that would have been paid had the Building where they are not so services, supplies or materials been provided by Landlord unaffiliated parties on a competitive basis; general overhead and administrative expenses except salaries of on-site property manager, management secretary and maintenance man; any compensation paid to clerks, attendants or a subsidiary or affiliate of other persons in commercial concessions operated by Landlord, (vi) all costs for which Tenant or any rentals and other tenant related expenses incurred in the building is being charged other than pursuant to the Annual Operating Costs reimbursement provisions of the Lease, (vii) the cost of any items for which Landlord is reimbursed by insurance to the extent of the reimbursement received, (viii) any interest or penalties incurred by Landlord due to violations of or non-compliance of the Landlord or the building or any part thereof with statutes, laws, regulations or ordinances including without limitation the Americans with Disabilities Act (for purposes of this provision only, collectively, “Laws”), and (ix) cost incurred because of the gross negligence of the Landlord or due to breach of the Landlord under any contractual obligation.leasing air

Annual Operating Costs. As used herein, the (i) The term “''Annual Operating Costs” " shall mean the actual costs to Landlord of operating, maintaining, repairing operating and replacing maintaining the Property (including, without limit, all improvements thereto and fixtures and equipment therein or thereon) during each calendar year of the Term (and any renewals or extensions thereof) including, without limit, the first calendar year during which the Term of this Lease Termshall have commenced for the purpose of determining the Base Operating Costs (as defined in Article 4(e)(iv) below), excluding Tenant Energy Costs (as hereinbefore defined). Such costs shall include include, by way of example rather than of limitation: All real estate , (1) charges or fees for, and taxes and assessmentson, general or special, ordinary or extraordinary, imposed upon the furnishing to the Property of water and sewer service, electric energy (including all improvements theretoexcluding the supply of electric energy included in Tenant Energy Costs or paid by Tenant directly to the utility provider), reasonable costs incurred in protesting real estate taxes or assessments, reasonable legal fees, salaries, wages, fringe benefits and union dues of workers and other on-site employees of Landlord, all insurance premiums, fees, impositions, costs for repairs, maintenance, service contracts, management fees, governmental permits, overhead expenses, ; (2) costs of furnishing waterelevator service and charges or fees for maintenance of the Property, sewerplanting, gas, fuel, electricity replanting and other utility services, janitorial service, trash removal, policing, cleaning, restriping, resurfacing, maintaining and the costs of any other items attributable to operating or maintaining any or repairing all walkways, roadways, parking areas forming part of the Property excluding Property, maintaining all landscaped areas of the Property; (3) charges or fees for any costs which under generally accepted accounting principles are capital expendituresnecessary governmental permits; provided(4) wages, howeversalaries and benefits of employees of Landlord or any management company engaged by Landlord in connection with the Building, management fees, overhead and expenses, provided that Annual Operating Costs Landlord's management/administrative fees and expenses shall also include the annual amortization be capped at four percent (over the anticipated useful life4%) of the cost of a capital improvement, plus any interest or financing charges thereon, falling within any of the following categories: (i) a labor-saving or energy-saving device or improvement which eliminates any component of Annual Operating Costs (or which reduces the amount or rate of increase of any component of Annual Operating Costs) from the costs that would have been incurred had such device or improvement not been installed; (ii) an installation or improvement required by reason of any law, ordinance or regulation (including environmental laws), which requirement did not exist on the date of this Lease and is generally applicable to similar office buildings; or (iii) an installation or improvement which directly enhances safety of tenants in Landlord's gross revenue for the Building generally. If Landlord shall receive an abatement of any real estate taxes (not including Tenant Energy Costs or assessments imposed upon electric costs paid by Tenant directly to the Property relating to any period for which Tenant is obligated to pay Tenant’s Share of Annual Operating Costs under this Xxxxxxxxx 0, Xxxxxxxx shall promptly pay or credit to Tenant an amount equal to Tenant’s Share of the proceeds of such abatement, after deducting Landlord’s cost in obtaining the same. If, due to a future change in the method of taxation, any other tax, however designated (including, without limitation, any rent tax), is imposed in substitution for or in addition to real estate taxes, then such other tax utility provider) and shall be included within Annual Landlord's established Base Year Operating Costs. The cost of all goods, services, labor and materials supplied or furnished by Landlord at the request of Tenant solely for the benefit of Tenant and/or the Leased Premises shall not be included within Annual Operating Costs and shall be paid by Tenant promptly upon being billed therefor. Other exclusions to the Annual Operating Costs shall include: (i) costs and expenses incurred in connection with leasing space in the Building, such as leasing commissions, allowances, space planner fees, advertising and promotional expenses, legal fees for the preparation of leases, and rent payable with respect to any leasing office, court costs and legal fees incurred to enforce the obligations of other tenants under leases of portions of the Building, (ii) rental concessions, lease buy-outs or the costs of relocating tenants within the building, (iii) the costs of renovating or otherwise improving or decorating, painting or redecorating any tenant’s space, (iv) any costs representing an amount paid to any person or entity related to or affiliated with Landlord which is material in excess of the amount which would have been paid in the absence of such relationship, (v) overhead or profit paid to Landlord, subsidiaries or affiliates of Landlord for services on or to the Building or common areas if and to the extent the costs exceed competitive costs for such services in comparable first-class office buildings located within five ; (5) miles of the Building where they are not so provided by Landlord or a subsidiary or affiliate of Landlord, (vi) all costs for which Tenant or any other tenant in the building is being charged other than pursuant to the Annual Operating Costs reimbursement provisions of the Lease, (vii) the cost of any items premiums for which Landlord is reimbursed by hazard, rent, liability, workmen's compensation and other insurance upon the Property or portions thereof; (6) costs arising under service contracts with independent contractors; (7) professional and consulting fees including, without limit, legal and auditing fees; (8) repairs, replacements and improvements to the extent Property which are appropriate for the continued operation of the reimbursement receivedBuilding as a first class office building; and (9) the cost of all other items which, (viii) any interest under standard accounting practices, constitute operating or penalties incurred by Landlord due maintenance costs which are attributable to violations of or non-compliance of the Landlord or the building Property or any part thereof with statutes, laws, regulations or ordinances including without limitation the Americans with Disabilities Act (for purposes of this provision only, collectively, “Laws”), and (ix) cost incurred because of the gross negligence of the Landlord or due to breach of the Landlord under any contractual obligation.portion thereof. The term "

Annual Operating Costs. As used hereinExcept as expressly provided in the immediately following sentence, the term “"Annual Operating Costs” " shall mean all actual and necessary costs Landlord incurs from owning, operating and maintaining the costs to Landlord Building and the lot or tract of operatingland on which it is situated (the "Property"). Annual Operating Costs shall include, maintaining, repairing and replacing the Property during each calendar year of the Lease Term. Such costs shall include by way of example rather than limitation: All real estate taxes and assessmentsinsurance costs, general or special, ordinary or extraordinary, imposed upon the Property including premiums; fees; Impositions (including all improvements theretodefined below), reasonable costs incurred in protesting real estate taxes or assessments, reasonable legal fees, salaries, wages, fringe benefits and union dues of workers and other on-site employees of Landlord, all insurance premiums, fees, impositions, ; costs for repairs, maintenance, maintenance and service contracts, ; management fees (consistent with market rates for management fees, but not to exceed 3% of the gross rent for the Building); landscaping; snow removal; governmental permits, permits fees; costs of compliance with governmental orders and regulations first enacted after the Occupancy Date; administrative and overhead expenses, ; costs of furnishing water, sewer, electricity, gas, fuel, electricity and other utility services, for use in common areas of the Building and Property; and the cost of janitorial service, service and trash removal; excluding, and however, from Annual --------- Operating Costs the costs of any other items attributable to operating or maintaining any or all of the Property excluding any following: costs which are treated as capital expenditures under generally accepted accounting principles are capital expenditures; provided(except as provided in Sections 9(d) and 10(b) below), howevercosts incurred to cause the Premises, that Annual Operating Costs shall also include the annual amortization Building or the Common Facilities to comply with applicable law or code (over except to the anticipated useful lifeextent necessitated by Tenant's particular method or manner of use (or misuse) of the cost Premises and except as permitted by Section 10 (b), below), Landlord warranty work; costs associated with compliance with Environmental Laws and removal and remediation of a capital improvement, plus any interest Hazardous Substances; mortgage debt or financing charges thereon, falling within any ground rents incurred by Landlord as owner of the following categories: (i) a labor-saving Property; income, excess profits, corporate capital stock or energy-saving device franchise tax imposed or improvement which eliminates assessed upon Landlord, unless such tax or any component similar tax is levied or assessed, in lieu of Annual Operating Costs (all or which reduces the amount or rate of increase any part of any component of Annual Operating Costs) from the costs that would have been incurred had such device currently existing Imposition or improvement not been installedan increase in any currently existing Imposition; (ii) an installation or improvement required by reason of any law, ordinance or regulation (including environmental laws), which requirement did not exist on the date of this Lease and is generally applicable to similar office buildings; or (iii) an installation or improvement which directly enhances safety of tenants in the Building generally. If Landlord shall receive an abatement of any real estate taxes or assessments imposed upon the Property relating to any period for which Tenant is obligated to pay Tenant’s Share of Annual Operating Costs under this Xxxxxxxxx 0, Xxxxxxxx shall promptly pay or credit to Tenant an amount equal to Tenant’s Share of the proceeds of such abatement, after deducting Landlord’s cost in obtaining the same. If, due to a future change in the method of taxation, any other tax, however designated (including, without limitation, any rent tax), is imposed in substitution for or in addition to real estate taxes, then such other tax shall be included within Annual Operating Costs. The cost of all goods, services, labor and materials supplied or furnished by Landlord at the request of Tenant solely for the benefit of Tenant and/or the Leased Premises shall not be included within Annual Operating Costs and shall be paid by Tenant promptly upon being billed therefor. Other exclusions to the Annual Operating Costs shall include: (i) costs and expenses incurred in connection with leasing space in the Building, such as leasing commissions, allowancesaccountants', space planner consultants' or attorneys' fees, advertising and promotional expenses, legal fees for the preparation of leases, and rent payable with respect to any leasing office, court costs and legal fees incurred to enforce the obligations of other tenants under leases of portions of the Building, (ii) rental concessions, lease buy-outs or the costs of relocating tenants within the building, (iii) the costs of renovating or otherwise improving or decorating, painting or redecorating any tenant’s space, (iv) any costs representing an amount paid to any person or entity related to or affiliated with Landlord which is material in excess of the amount which would have been paid in the absence of such relationship, (v) overhead or profit paid to Landlord, subsidiaries or affiliates of Landlord for services on or to the Building or common areas if and to the extent the costs exceed competitive costs for such services in comparable first-class office buildings located within five (5) miles of the Building where they are not so provided by Landlord or a subsidiary or affiliate of Landlord, (vi) all costs for which Tenant or any other tenant in the building is being charged other than pursuant to the Annual Operating Costs reimbursement provisions of the Lease, (vii) the cost of any items for which Landlord is reimbursed by insurance to the extent of the reimbursement received, (viii) any interest or penalties incurred by Landlord due to violations of or non-compliance of the Landlord or the building or any part thereof with statutes, laws, regulations or ordinances including without limitation the Americans with Disabilities Act (for purposes of this provision only, collectively, “Laws”), and (ix) cost incurred because of the gross negligence of the Landlord or due to breach of the Landlord under any contractual obligation.,