Common use of Cap on Controllable Operating Expenses Clause in Contracts

Cap on Controllable Operating Expenses. For the purpose of calculating Tenant’s Proportionate Share of increases in Operating Expenses, “Controllable Operating Expenses” (as hereinafter defined) for the first Comparison Year (i.e., the period from July 1, 2006, through June 30, 2007), and each Comparison Year thereafter, shall not increase by more than the lesser of: (a) the actual increase in Controllable Operating Expenses over the Controllable Operating Expenses for the preceding Comparison Year [or, with respect to the first (1st) Comparison Year, over the Controllable Operating Expenses for the Base Expense Year]; or (b) five percent (5%) over the amount of the Controllable Operating Expenses for the preceding Comparison Year [or, with respect to the first (1st) Comparison Year, over the amount of the Controllable Operating Expenses for the Base Expense Year]. As used herein, the term “Controllable Operating Expenses” means all Operating Expenses other than Taxes, insurance, utilities, management fees, costs subject to government regulation, such as minimum wages, and all costs incurred to comply with new or revised Legal Requirements. By way of illustration of the foregoing, with respect to the Comparison Year covering the period from July 1, 2006, through June 30, 2007, the Controllable Operating Expenses shall not exceed the amount determined by the following formula, when “X” equals the actual amount of the Controllable Operating Expenses for the Base Expense Year: X times 1.05 = maximum amount of Controllable Operating Expenses with respect to the Comparison Year covering the period from July 1, 2006, through June 30, 2007. Thus, if Controllable Operating Expenses for the Base Expense Year are $4.00 per rentable square foot, the maximum amount of Controllable Operating Expenses with respect to the Comparison Year covering the period from July 1, 2006, through June 30, 2007, would be $4.00 x 1.05 = $4.20 per rentable square foot.

Cap on Controllable Operating Expenses. For During the purpose of calculating Tenant’s Proportionate Share of increases Initial Term -------------------------------------- (as defined in Operating ExpensesParagraph 47(a) hereof) only, “for each calendar year subsequent to the 1996 calendar year, Controllable Operating Expenses” Expenses (as hereinafter defined) shall increase no more than ten percent (10%) on a cumulative, compounded basis, over the previous calendar year (except that when computing the cap for the first Comparison Year (i.e.1997 calendar year, the period amount for the 1996 calendar year shall be re-computed as if Tenant had leased the Premises for the entire 1996 calendar year). As used herein, "Controllable Operating Expenses" shall include only (i) employees' salaries and benefits (other than those required by law or union contract) and (ii) payments to third party contractors (but only to the extent comparable services can be obtained from July 1reputable vendors or contractors for lower total payments, 2006, through June 30, 2007and only to the extent of the difference between the actual payment and such lower total payments), and each Comparison Year thereafter, shall not increase by more than the lesser of: (a) the actual increase in Controllable Operating Expenses over shall expressly not include, without limitation, utility payments, insurance premiums, Taxes, and all other expenses not within the control of Landlord. By way of example only, assume that the Controllable Operating Expenses (without regard to the application of the cap) for the entire 1996 calendar year is $100, then (1) if actual Controllable Operating Expenses for the preceding Comparison Year [or1997 calendar year equal $105, with respect to the first Tenant would be charged $105 in Controllable Operating Expenses, and (1st2) Comparison Year, over the if actual Controllable Operating Expenses for the Base Expense Year]; or 1998 calendar year equal $125, Tenant would be charged $121 in Controllable Operating Expenses, and (b3) five percent (5%) over the amount of the if actual Controllable Operating Expenses for the preceding Comparison Year [or1999 calendar year equal $132, with respect to the first Tenant would be charged $132 in Controllable Operating Expenses, and (1st4) Comparison Year, over the amount of the if actual Controllable Operating Expenses for the Base Expense Year]. As used herein2000 calendar year equal $150, the term “Tenant would be charged $146.41 in Controllable Operating Expenses” means all Operating Expenses other than Taxes, insurance, utilities, management fees, costs subject to government regulation, such as minimum wages, and all costs incurred to comply with new or revised Legal Requirements. By way of illustration of the foregoing, with respect to the Comparison Year covering the period from July 1, 2006, through June 30, 2007, the Controllable Operating Expenses shall not exceed the amount determined by the following formula, when “X” equals the actual amount of the Controllable Operating Expenses for the Base Expense Year: X times 1.05 = maximum amount of Controllable Operating Expenses with respect to the Comparison Year covering the period from July 1, 2006, through June 30, 2007. Thus, if Controllable Operating Expenses for the Base Expense Year are $4.00 per rentable square foot, the maximum amount of Controllable Operating Expenses with respect to the Comparison Year covering the period from July 1, 2006, through June 30, 2007, would be $4.00 x 1.05 = $4.20 per rentable square foot.SECURITY DEPOSIT ----------------

Cap on Controllable Operating Expenses. For the purpose purposes of calculating Tenant’s Proportionate Share 's Additional Rental pursuant to Section 8 of the Lease, Landlord and Tenant hereby agree that, commencing with the first full calendar year of the Lease Term, Operating Expenses (except for Uncontrollable Costs, as hereinafter defined) shall be deemed not to increase by more than four percent (4%); the applicable percentage cap is herein referred to as the "Operating Expense Cap" from one calendar year to the next calendar year, regardless of any actual increases in Operating Expenses; provided, “Controllable however, in the event that in any calendar year any such increase in Operating Expenses” Expenses is in fact greater than the Operating Expense Cap (any such increase in excess of the Operating Expense Cap being hereinafter collectively referred to as hereinafter defined) for the first Comparison Year (i.e., the period from July 1, 2006, through June 30, 2007"Carryover Percentage"), and each Comparison Year thereafter, Landlord shall have the right to add all of the Carryover Percentage (or such portion thereof as will not produce a total increase by more in Operating Expenses in excess of the Operating Expense Cap) to the increases in Operating Expenses occurring over any of the following years of the Lease Term in which such increases in Operating Expenses are less than the lesser of: (a) Operating Expense Cap, on a cumulative basis until all such Carryover Percentages have been used to increase Operating Expenses for purposes of calculating Tenant's Additional Rental payable pursuant to paragraph 7 of the Lease. For example, if the actual increase in Controllable Operating Expenses over during the Controllable second calendar year of the Lease Term is six percent (6%) and if, for purposes of this example, the Operating Expenses for the preceding Comparison Year [or, with respect to the first (1st) Comparison Year, over the Controllable Operating Expenses for the Base Expense Year]; or (b) Cap is five percent (5%) over (thus creating a Carryover Percentage of one percent (1%), which may be carried forward to future years by Landlord), and if in the amount third calendar year of the Controllable Lease Term the actual increase in the Operating Expenses for is four percent (4%), then during the preceding Comparison Year [or, with respect to the first (1st) Comparison Year, over the amount third calendar year of the Controllable Operating Expenses for the Base Expense Year]. As used herein, the term “Controllable Operating Expenses” means all Operating Expenses other than Taxes, insurance, utilities, management fees, costs subject to government regulation, such as minimum wages, and all costs incurred to comply with new or revised Legal Requirements. By way of illustration of the foregoing, with respect to the Comparison Year covering the period from July 1, 2006, through June 30, 2007, the Controllable Lease Term Operating Expenses shall not exceed be deemed to increase by five percent (5%), such five percent (5%) increase arising from adding the amount determined by four percent (4%) increase in Operating Expenses which occurred in the following formulathird calendar year to the one percent (1%) Carryover Percentage from the second calendar year. The foregoing provisions of this Section notwithstanding, when “X” equals Taxes, all utility costs and expenses, including, without limitation, those for electricity and other feels and forms of power or energy, water charges, sewer and waste disposal, and the actual amount cost of all casualty, liability and other insurance applicable to the Project and Landlord's personal property used in connection with the Project (all of the Controllable Operating Expenses for the Base Expense Year: X times 1.05 = maximum amount of Controllable Operating Expenses with respect foregoing are herein collectively referred to the Comparison Year covering the period from July 1as "Uncontrollable Costs") shall not be subject to any limitation or cap, 2006and, through June 30, 2007. Thus, if Controllable Operating Expenses for the Base Expense Year are $4.00 per rentable square footaccordingly, the maximum amount total dollar increase in Operating Expenses, and Tenant's Additional Rental payable pursuant to paragraph 7 of Controllable Operating Expenses with respect to the Comparison Year covering Lease, for any and each calendar year during the period from July 1, 2006, through June 30, 2007, would Lease Term shall be $4.00 x 1.05 = $4.20 per rentable square footcalculated without any limitation or cap on Uncontrollable Costs.

Cap on Controllable Operating Expenses. For the purpose purposes of calculating Tenant’s Proportionate Share 's Additional Rental pursuant to Paragraph 19 of the Lease, Landlord and Tenant hereby agree that, commencing with the first full calendar year of the Lease Term, Operating Expenses (except for Uncontrollable Costs, as hereinafter defined) shall be deemed not to increase by more than four and one-half percent (4 1/2%) herein referred to as the "Operating Expense Cap" from one calendar year to the next calendar year, regardless of any actual increases in Operating Expenses; provided, “Controllable however, in the event that in any calendar year any such increase in Operating Expenses” Expenses is in fact greater than the Operating Expense Cap (any such increase in excess of the Operating Expense Cap being hereinafter collectively referred to as hereinafter defined) for the first Comparison Year (i.e., the period from July 1, 2006, through June 30, 2007"Carryover Percentage"), and each Comparison Year thereafter, Landlord shall have the right to add all of the Carryover Percentage (or such portion thereof as will not produce a total increase by more in Operating Expenses in excess of the Operating Expense Cap) to the increases in Operating Expenses occurring over any of the following years of the Lease Term in which such increases in Operating Expenses are less than the lesser of: (a) Operating Expense Cap, on a cumulative basis until all such Carryover Percentages have been used to increase Operating Expenses for purposes of calculating Tenant's Additional Rental payable pursuant to Paragraph 19 of the Lease. For example, if the actual increase in Controllable Operating Expenses over during the Controllable second calendar year of the Lease Term is ten percent (10%) and if, for purposes of this example, the Operating Expense Cap is eight percent (8%) (thus creating a Carryover Percentage of two percent (2%), which may be carried forward to future years by Landlord), and if in the third calendar year of the Lease Term the actual increase in the Operating Expenses for the preceding Comparison Year [or, with respect to the first (1st) Comparison Year, over the Controllable Operating Expenses for the Base Expense Year]; or (b) five is six percent (56%) over ), then during the amount third calendar year of the Controllable Operating Expenses for the preceding Comparison Year [or, with respect to the first (1st) Comparison Year, over the amount of the Controllable Operating Expenses for the Base Expense Year]. As used herein, the term “Controllable Operating Expenses” means all Operating Expenses other than Taxes, insurance, utilities, management fees, costs subject to government regulation, such as minimum wages, and all costs incurred to comply with new or revised Legal Requirements. By way of illustration of the foregoing, with respect to the Comparison Year covering the period from July 1, 2006, through June 30, 2007, the Controllable Lease Term Operating Expenses shall not exceed be deemed to increase by eight percent (8%), such eight percent (8%) increase arising from adding the amount determined by six percent (6%) increase in Operating Expenses which occurred in the following formulathird calendar year to the two percent (2%) Carryover Percentage from the second calendar year. The foregoing provisions of this Section notwithstanding, when “X” equals Taxes, all utility costs and expenses, including, without limitation, those for electricity and other fuels and forms of power or energy, water charges, sewer and waste disposal, and the actual amount cost of all casualty, liability and other insurance applicable to the Project and Landlord's personal property used in connection with the Project (all of the Controllable Operating Expenses for the Base Expense Year: X times 1.05 = maximum amount of Controllable Operating Expenses with respect foregoing are herein collectively referred to the Comparison Year covering the period from July 1as "Uncontrollable Costs") shall not be subject to any limitation or cap, 2006and, through June 30, 2007. Thus, if Controllable Operating Expenses for the Base Expense Year are $4.00 per rentable square footaccordingly, the maximum amount total dollar increase in Operating Expenses, and Tenant's Additional Rental payable pursuant to Paragraph 19 of Controllable Operating Expenses with respect to the Comparison Year covering Lease, for any and each calendar year during the period from July 1, 2006, through June 30, 2007, would Lease Term shall be $4.00 x 1.05 = $4.20 per rentable square footcalculated without any limitation or cap on Uncontrollable Costs.

Cap on Controllable Operating Expenses. For the purpose Effective as of calculating Tenant’s Proportionate Share of increases in Operating ExpensesJanuary 1, “2015, Controllable Operating Expenses” Expenses (as hereinafter defined) for that may be included in Operating Expenses in any year of the first Comparison Year (i.e., the period from July 1, 2006, through June 30, 2007), and each Comparison Year thereafter, Term shall not increase by more than exceed one hundred six percent (106%) (the lesser of: (a“Controllable Expense Cap”) the actual increase in Controllable Operating Expenses over the of Controllable Operating Expenses for the preceding Comparison Year [orcalendar year 2014, with respect to calculated on a compounded and on-going basis. To illustrate the first compounding component of the Controllable Expense Cap, Controllable Operating Expenses that may be included in the calculation of Operating Expenses for any calendar year after 2014 (1st) each a "Comparison Year, over ") shall not exceed the product of the total Controllable Operating Expenses for the Base Expense calendar year 2014 and the following percentages for each Comparison Year]: 106% for 2015; or 112.36% for 2016; 119.10% for 2017; 126.25% for 2018; and so on (b) five percent (5%) over the amount of the Controllable Operating Expenses for the preceding Comparison Year [or, with respect without regard to what was actually incurred and subject to the first (1st) Comparison Year, over the amount remaining terms of the Controllable Operating Expenses for the Base Expense Year]this Section 5). As used herein, (i) the term “Controllable Operating Expenses” means all Operating Expenses other than (after any gross up permitted under the Lease) excluding (1) Taxes, insurance, (2) the cost of utilities, management fees(3) insurance costs, (4) employment costs subject based upon the minimum wage (including benefits), (5) any costs Landlord is required to government regulation, such as minimum wages, and all costs incurred incur to comply with any rule, code, law, regulation, or ordinance adopted or promulgated after the Effective Date (or new or revised Legal Requirements. By way different interpretations of illustration any of the foregoingforegoing adopted or promulgated after the Effective Date) of any governmental authority or agency, with respect (6) management fees (as limited in Section 2(c) of the Lease), and (7) any expense increase arising from the unionization of any service rendered to the Comparison Year covering the period from July 1Project, 2006, through June 30, 2007, the Controllable Operating Expenses shall not exceed the amount determined by the following formula, when and (ii) “Xon-going basis” equals the actual amount of the Controllable Operating Expenses for the Base Expense Year: X times 1.05 = maximum amount of Controllable Operating Expenses with respect to the Comparison Year covering the period from July 1, 2006, through June 30, 2007. Thusmeans that, if Controllable Operating Expenses for any given Comparison Year exceeds the Base Controllable Expense Cap for that Comparison Year, Landlord may carry over to future Comparison Years amounts by which Controllable Operating Expenses exceeded the Controllable Expense Cap in any previous Comparison Year are $4.00 per rentable square footuntil fully recouped by Landlord, so long as the maximum amount of Controllable Operating Expenses with respect billed to the Tenant in each Comparison Year covering never actually exceeds the period from July 1, 2006, through June 30, 2007, would be $4.00 x 1.05 = $4.20 per rentable square footControllable Expense Cap for that Comparison Year.

Cap on Controllable Operating Expenses. For the purpose purposes of calculating Tenant’s Proportionate Share 's Additional Rental pursuant to Article 8 of increases in the Lease, Landlord and Tenant hereby agree that, commencing with the first full calendar year of the Term, Operating ExpensesExpenses (except for Uncontrollable Costs, “Controllable Operating Expenses” (as hereinafter defined) for the first Comparison Year (i.e., the period from July 1, 2006, through June 30, 2007), and each Comparison Year thereafter, shall be deemed not to increase by more than the lesser of: (a) the actual increase in Controllable Operating Expenses over the Controllable Operating Expenses for the preceding Comparison Year [or, with respect to the first (1st) Comparison Year, over the Controllable Operating Expenses for the Base Expense Year]; or (b) five percent (5%) over (the amount "Operating Expense Cap") from one calendar year to the next calendar year, regardless of any actual increases in Operating Expenses; provided, however, in the event that in any calendar year any such increase in Operating Expenses is in fact greater than the Operating Expense Cap (any such increase in excess of the Controllable Operating Expense Cap being hereinafter collectively referred to as the "Carryover Percentage"), Landlord shall have the right to add all of the Carryover Percentage (or such portion thereof as will not produce a total increase in Operating Expenses in excess of the Operating Expense Cap) to the increases in Operating Expenses occurring over any of the following years of the Term in which such increases in Operating Expenses are less than the Operating Expense Cap, on a cumulative basis until all such Carryover Percentages have been used to increase Operating Expenses for the preceding Comparison Year [or, with respect purposes of calculating Tenant's Additional Rental payable pursuant to the first (1st) Comparison Year, over the amount Article 8 of the Controllable Lease. For example, if the actual increase in Operating Expenses during the second calendar year of the Term is ten percent (10%) and if, for the Base Expense Year]. As used hereinpurposes of this example, the term “Controllable Operating Expenses” means all Expense Cap is eight percent (8%) (thus creating a Carryover Percentage of two percent (2%), which may be carried forward to future years by Landlord), and if in the third calendar year of the Lease Term the actual increase in the Operating Expenses other than Taxesis six percent (6%), insurance, utilities, management fees, costs subject to government regulation, such as minimum wages, and all costs incurred to comply with new or revised Legal Requirements. By way of illustration then during the third calendar year of the foregoing, with respect to the Comparison Year covering the period from July 1, 2006, through June 30, 2007, the Controllable Lease Term Operating Expenses shall not exceed be deemed to increase by eight percent (8%), such eight percent (8%) increase arising from adding the amount determined by six percent (6%) increase in Operating Expenses which occurred in the following formulathird calendar year to the two percent (2%) Carryover Percentage from the second calendar year. The foregoing provisions of this Section notwithstanding, when “X” equals Taxes, all utility costs and expenses, including, without limitation, water charges, sewer and waste disposal, and the actual amount cost of all casualty, liability and other insurance applicable to the Project and Landlord's personal property used in connection with the Project (all of the Controllable Operating Expenses for the Base Expense Year: X times 1.05 = maximum amount of Controllable Operating Expenses with respect foregoing are herein collectively referred to the Comparison Year covering the period from July 1as "Uncontrollable Costs") shall not be subject to any limitation or cap, 2006and, through June 30, 2007. Thus, if Controllable Operating Expenses for the Base Expense Year are $4.00 per rentable square footaccordingly, the maximum amount total dollar increase in Operating Expenses, and Tenant's Additional Rental payable pursuant to Article 8 of Controllable Operating Expenses with respect to the Comparison Year covering Lease, for any and each calendar year during the period from July 1, 2006, through June 30, 2007, would Lease Term shall be $4.00 x 1.05 = $4.20 per rentable square footcalculated without any limitation or cap on Uncontrollable Costs.

Cap on Controllable Operating Expenses. For the purpose purposes of calculating Tenant’s Proportionate Share 's Additional Rental pursuant to Article 8 of the Lease, Landlord and Tenant hereby agree that, commencing with the first full calendar year of the Lease Term, Operating Expenses (except for Uncontrollable Costs, as hereinafter defined) shall be deemed not to increase by more than four percent (4%) from one calendar year to the next calendar year, regardless of any actual increases in Operating Expenses; provided, “Controllable however, in the event that in any calendar year any such increase in Operating Expenses” Expenses is in fact greater than the Operating Expense Cap (any such increase in excess of the Operating Expense Cap being hereinafter collectively referred to as hereinafter defined) for the first Comparison Year (i.e., the period from July 1, 2006, through June 30, 2007"Carryover Percentage"), and each Comparison Year thereafter, Landlord shall have the right to add all of the Carryover Percentage (or such portion thereof as will not produce a total increase by more in Operating Expenses in excess of the Operating Expense Cap) to the increases in Operating Expenses occurring over any of the following years of the Lease Term in which such increases in Operating Expenses are less than the lesser of: (a) Operating Expense Cap, on a cumulative basis until all such Carryover Percentages have been used to increase Operating Expenses for purposes of calculating Tenant's Additional Rental payable pursuant to Article 8 of the Lease. For example, if the actual increase in Controllable Operating Expenses over during the Controllable second calendar year of the Lease Term is ten percent (10%) and if, for purposes of this example, the Operating Expense Cap is eight percent (8%) (thus creating a Carryover Percentage of two percent (2%), which may be carried forward to future years by Landlord), and if in the third calendar year of the Lease Term the actual increase in the Operating Expenses for the preceding Comparison Year [or, with respect to the first (1st) Comparison Year, over the Controllable Operating Expenses for the Base Expense Year]; or (b) five is six percent (56%) over ), then during the amount third calendar year of the Controllable Operating Expenses for the preceding Comparison Year [or, with respect to the first (1st) Comparison Year, over the amount of the Controllable Operating Expenses for the Base Expense Year]. As used herein, the term “Controllable Operating Expenses” means all Operating Expenses other than Taxes, insurance, utilities, management fees, costs subject to government regulation, such as minimum wages, and all costs incurred to comply with new or revised Legal Requirements. By way of illustration of the foregoing, with respect to the Comparison Year covering the period from July 1, 2006, through June 30, 2007, the Controllable Lease Term Operating Expenses shall not exceed be deemed to increase by eight percent (8%), such eight percent (8%) increase arising from adding the amount determined by six percent (6%) increase in Operating Expenses which occurred in the following formulathird calendar year to the two percent (2%) Carryover Percentage from the second calendar year. The foregoing provisions of this Section notwithstanding, when “X” equals Taxes, all utility costs and expenses, including, without limitation, those for electricity and other fuels and forms of power or energy, water charges, sewer and waste disposal, and the actual amount cost of all casualty, liability and other insurance applicable to the Project and Landlord's personal property used in connection with the Project (all of the Controllable Operating Expenses for the Base Expense Year: X times 1.05 = maximum amount of Controllable Operating Expenses with respect foregoing are herein collectively referred to the Comparison Year covering the period from July 1as "Uncontrollable Costs") shall not be subject to any limitation or cap, 2006and, through June 30, 2007. Thus, if Controllable Operating Expenses for the Base Expense Year are $4.00 per rentable square footaccordingly, the maximum amount total dollar increase in Operating Expenses, and Tenant's Additional Rental payable pursuant to Article 8 of Controllable Operating Expenses with respect to the Comparison Year covering Lease, for any and each calendar year during the period from July 1, 2006, through June 30, 2007, would Lease Term shall be $4.00 x 1.05 = $4.20 per rentable square footcalculated without any limitation or cap on Uncontrollable Costs.