Common use of Building Operating Costs Clause in Contracts

Building Operating Costs. Tenant will pay to Landlord, as additional rental hereunder, in the manner set forth below, an amount ("Tenant's Pro Rata Share") equal to the Premises' Pro Rata Share of the amount by which Building Operating Costs for each calendar year of the Term exceeds Landlord's Share of Building Operating Costs. For purposes hereof, the term "Building Operating Costs" means all costs, charges, and expenses incurred by Landlord in connection with owning, operating, maintaining, repairing, insuring and managing the Building and Common Areas except those costs, charges, and expenses included within the definition of Energy Costs. Building Operating Costs include, without limitation, the items enumerated on Exhibit "C" to this Lease. If the Building Operating Costs for any calendar year is less than Landlord's Share of Building Operating Costs, the Premises' Pro Rata Share of Building Operating Costs will be deemed to be equal to Landlord's Share of Building Operating Costs. Notwithstanding the foregoing, Tenant’s Pro Rata Share of Controllable Operating Costs (defined below) shall not increase by more than 5% over Tenant’s Pro Rata Share of Controllable Operating Costs in the previous calendar year, including the Base Year, on a cumulative, compounded basis. However, any increases in Building Operating Costs not recovered by Landlord due to the foregoing limitation shall be carried forward into succeeding calendar years during the Term (subject to the foregoing limitation) until fully recouped by Landlord. For example, if Controllable Operating Costs were $100.00 in 2017, then the total Controllable Operating Costs that could be included in Building Operating Costs in 2018 would be $105.00, for 2019 the amount would be $110.25, for 2020 the amount would be $115.76, and so on. In the preceding example, if Controllable Operating Costs in both 2018 and 2019 were $107.00, then Landlord could include only $105.00 in Building Operating Costs in 2018, but $109.00 (the Controllable Operating Costs plus the carry-forward from 2018) in 2019. The term “Controllable Operating Costs” means all Building Operating Costs excluding expenses relating to the cost of utilities, security expenses, insurance, real estate taxes and assessments, and other expenses arising from legal requirements. Any category of expenses which was not included in Landlord’s Share of Building Operating Costs shall not be included in Building Operating Costs unless the cost of such new category is added to Landlord’s Share of Building Operating Costs.

Building Operating Costs. (a) Tenant will hereby agrees that for each Operating Year during the term of this Lease for which the total Building Operating Costs shall exceed the Building Operating Costs for the First Operating Year, Tenant shall pay to Landlord, as additional rental hereunder, in the manner set forth belowrent, an amount ("Tenant's Pro Rata Share") equal to the Premises' Pro Rata Share Tenant’s Occupancy Percentage of such excess within thirty (30) days after receipt of Landlord’s statement (the “Operating Statement”) therefor. The Operating Statement shall indicate (i) the initial additional amount required to be paid by Tenant as additional rent; (ii) the Tenant’s new Adjusted Minimum Rent; and (iii) the manner in which such adjustment is computed. Landlord shall present its Operating Statement within ninety (90) days after the commencement of each such Operating Year (“Billing Date”). Tenant shall thereafter, for the balance of that Operating Year and for that portion of the amount next Operating Year until the Billing Date during such year, make monthly payments at the time that Tenant pays minimum Monthly Rent of l/12th of such increase to reflect the change as of the Billing Date, which amounts shall be credited for the account of Tenant against the annual payment due on the succeeding Billing Date. Notwithstanding anything to the contrary contained in this Lease, if Landlord (i) has not delivered the Operating Statement for any Operating Year during the Term (except for the Operating Statement applicable to the calendar year during which the Term expired or was terminated) by the date that is twelve (12) months after the end of the Operating Year in question, or (ii) has not delivered an Operating Statement for the Operating Year during which the Term expired or was terminated by the date that is six (6) months after the end of such Operating Year, then Tenant shall not be obligated to make any payments that exceed the estimated Building Operating Costs already paid by Tenant for each calendar year of the Term exceeds Landlord's Share of Building such Operating Costs. For purposes hereof, the term "Building Operating Costs" means all costs, charges, and expenses incurred by Landlord in connection with owning, operating, maintaining, repairing, insuring and managing the Building and Common Areas except those costs, charges, and expenses included within the definition of Energy Costs. Building Operating Costs include, without limitation, the items enumerated on Exhibit "C" to this Lease. If the Building Operating Costs for any calendar year is less than Landlord's Share of Building Operating Costs, the Premises' Pro Rata Share of Building Operating Costs will be deemed to be equal to Landlord's Share of Building Operating CostsYear. Notwithstanding the foregoing, Tenant’s Pro Rata Share of Controllable Operating Costs (defined below) shall not increase by more than 5% over Tenant’s Pro Rata Share of Controllable Operating Costs in the previous calendar year, including the Base Year, on a cumulative, compounded basis. However, any increases in Building Operating Costs not recovered by Landlord due to the foregoing limitation shall be carried forward into succeeding calendar years during the Term (subject to the foregoing limitation) until fully recouped by Landlord. For example, if Controllable Operating Costs were $100.00 in 2017, then the total Controllable Operating Costs that could be included in Building Operating Costs in 2018 would be $105.00, Tenant remains obligated for 2019 the amount would be $110.25, for 2020 the amount would be $115.76, and so on. In the preceding example, if Controllable Operating Costs in both 2018 and 2019 were $107.00, then Landlord could include only $105.00 in Building Operating Costs in 2018, but $109.00 (the Controllable Operating Costs plus the carry-forward from 2018) in 2019. The term “Controllable Operating Costs” means all Building Operating Costs excluding expenses relating to the cost of utilities, security expenses, insurance, real estate taxes and assessments, and other expenses arising from legal requirements. Any category of expenses which was not included in Landlord’s Share its full share of Building Operating Costs shall not be included in Building payable for such year if delivery of said Operating Costs unless the cost Statement was delayed through no fault of such new category is added to Landlord’s Share of Building Operating Costs.

Building Operating Costs. Tenant will pay to Operating Costs shall not include expenses for legal services, real estate brokerage and leasing commissions, Landlord's federal and state income taxes, as additional rental hereunderincome tax accounting, in the manner set forth belowinterest, an amount ("Tenant's Pro Rata Share") equal depreciation, general corporate overhead, or capital improvements to the Premises' Pro Rata Share Building or the Project except (a) for capital improvements (i) installed for the purpose of reducing or controlling expenses, or (ii) required by any governmental or other authority having or asserting jurisdiction over the amount by Building or the Project and (b) as otherwise provided herein. If any expense which Building would otherwise constitute an Operating Cost for the calendar year during which such expense is paid relates to one or more calendar years other than or in addition to the calendar year during which such expense is paid, such expense will be proportionately allocated to the Operating Costs for each calendar year to which such expense is related. Similarly, with respect to capital expenditures to replace existing equipment and machinery necessary to the day to day operation of the Building or the Project or common usage Building or Project components and systems, such capital expenditures shall be amortized on a monthly basis over the useful life thereof (not to exceed 120 months) at an interest rate of twelve percent (12%) per annum, and the amount recoverable by Landlord as Operating Costs in the year during which any such expenditure is made and each year of the Lease Term exceeds Landlord's Share thereafter occurring shall equal the sum of all such amortization payments payable during each such year. In the event that the Building is not fully leased during any calendar year, Landlord may make appropriate adjustments to the Building Operating Costs, using reasonable projections, to adjust such costs to an amount that would normally be expected to be incurred if the Building were 95% leased, and such adjusted costs shall be used for purposes of this Paragraph 3.3. For purposes hereof, the term "Building Controllable Expenses" shall mean all Operating Costs" means all costs, Costs other than any utilities fees and charges, insurance premiums, and real estate taxes, in each case payable by Landlord with respect to the Building or the Project, as well as any expenses incurred by Landlord in connection its compliance with owningany law, operatingregulation, maintainingordinance, repairing, insuring and managing or the like enacted after the date hereof by any governmental or other authority having or asserting jurisdiction over the Building or the Project. For purposes of calculating Operating Expenses and Common Areas except those costs, charges, and expenses included within the definition of Energy Costs. Building Operating Costs include, without limitation, the items enumerated on Exhibit "C" to this Lease. If the Building Operating Costs for any calendar year is less than LandlordTenant's Share of Building Operating Costs, the Premises' Pro Rata Share of Building Operating Costs will be deemed to be equal to Landlord's Share of Building Operating Costs. Notwithstanding the foregoingExpense Increases, Tenant’s Pro Rata Share of Controllable Operating Costs (defined below) shall not increase by more than 5% over Tenant’s Pro Rata Share of Controllable Operating Costs in the previous calendar year, including the Base Year, on a cumulative, compounded basis. However, any increases in Building Operating Costs not recovered by Landlord due to the foregoing limitation Controllable Expenses shall be carried forward into succeeding calendar years during the Term capped at ten percent (subject to the foregoing limitation10.0%) until fully recouped by Landlord. For example, if Controllable Operating Costs were $100.00 in 2017, then the total Controllable Operating Costs that could be included in Building Operating Costs in 2018 would be $105.00, for 2019 the amount would be $110.25, for 2020 the amount would be $115.76, and so on. In the preceding example, if Controllable Operating Costs in both 2018 and 2019 were $107.00, then Landlord could include only $105.00 in Building Operating Costs in 2018, but $109.00 (the Controllable Operating Costs plus the carry-forward from 2018) in 2019. The term “Controllable Operating Costs” means all Building Operating Costs excluding expenses relating to the cost of utilities, security expenses, insurance, real estate taxes and assessments, and other expenses arising from legal requirements. Any category of expenses which was not included in Landlord’s Share of Building Operating Costs shall not be included in Building Operating Costs unless the cost of such new category is added to Landlord’s Share of Building Operating Costsper annum.

Building Operating Costs. Tenant will pay to Landlord, as additional rental hereunder, in the manner set forth below, an amount ("“Tenant's ’s Pro Rata Share"”) equal to the Premises' ’ Pro Rata Share of the amount by which Building Operating Costs for each calendar year of the Term exceeds Landlord's ’s Share of Building Operating Costs. For purposes hereof, the term "“Building Operating Costs" ” means all costs, charges, and expenses incurred by Landlord in connection with owning, operating, maintaining, repairing, insuring and managing the Building and Common Areas except those costs, charges, and expenses included within the definition of Energy Costs. Building Operating Costs includeinclude and exclude, respectively, without limitation, the items enumerated on Exhibit "”C" ” to this Lease. If the Building Operating Costs for any calendar year is less than Landlord's ’s Share of Building Operating Costs, the Premises' ’ Pro Rata Share of Building Operating Costs will be deemed to be equal to Landlord's ’s Share of Building Operating Costs. Notwithstanding the foregoingforegoing provisions of this paragraph, Tenant’s Pro Rata Share it is agreed that for the purpose of Controllable determining such additional rental obligations of Tenant under this Lease pursuant to this paragraph, Building Operating Costs (defined belowexclusive of the Non-Capped Operating Costs, as hereinafter defined) for any calendar year following the Base Year shall not increase be increased by more than 5% six percent (6%) over Tenant’s Pro Rata Share the amount of Controllable Building Operating Costs in (exclusive of the previous Non-Capped Operating Costs) for the then immediately preceding calendar year, including the Base Year, provided that such increase shall be determined from year to year on a cumulativecumulative and compounding basis; it being further agreed that, compounded basis. Howeverfor purposes hereof, any increases in Building the term “Non-Capped Operating Costs not recovered by Landlord due Costs” shall mean (a) expenditures of a capital nature permitted hereunder to the foregoing limitation shall be carried forward into succeeding calendar years during the Term (subject to the foregoing limitation) until fully recouped by Landlord. For example, if Controllable Operating Costs were $100.00 in 2017, then the total Controllable Operating Costs that could be included in Building Operating Costs in 2018 would be $105.00Costs, for 2019 the amount would be $110.25, for 2020 the amount would be $115.76, and so on. In the preceding example, if Controllable Operating Costs in both 2018 and 2019 were $107.00, then Landlord could include only $105.00 in Building Operating Costs in 2018, but $109.00 (the Controllable Operating Costs plus the carry-forward from 2018b) in 2019. The term “Controllable Operating Costs” means all Building Operating Costs excluding expenses relating to the cost of utilities, security utility expenses, insurance, (c) real estate taxes and assessments, and other expenses arising from legal requirements. Any category of expenses which was not included in Landlord’s Share of Building Operating Costs shall not assessments permitted hereunder to be included in Building Operating Costs unless the cost of such new category is added to Landlord’s Share of Building Operating Costs, and (d) insurance premiums.