Common use of Common Area Costs Clause in Contracts

Common Area Costs. Common Area Costs" mean all costs incurred in a manner deemed by Landlord to be reasonable and appropriate and for the best interests of the Shopping Center in connection with the management, operation, maintenance, replacement and repair of the Common Areas, including but not limited to security, landscaping, utilities, painting, striping, lighting, management fee (4% of gross revenues), administration fee of fifteen percent (15%) of Common Area Costs and pest control among other items. Common Area Costs shall not include depreciation of costs or expenses in connection with the original construction and installation of the Common Areas or Common Area Costs which are classified as capital expenditures under generally accepted accounting principles, provided, however, that the costs of improvements to the Common Areas intended to reduce Common Area Costs or as may from time to time be required by any newly enacted (after the date of this Lease) laws, ordinances, rules or regulations of any governmental authority or agency having jurisdiction thereof shall be includable in Common Area Costs to the extent of the annual amortization thereof over the useful life of the improvements. Common Area Costs shall not include principal or interest payments on any mortgage or deed of trust or ground rent payments under any ground lease; costs or expenses associated with leasing space in the Shopping Center or the sale of any interest in the Shopping Center, including marketing costs and brokerage commissions; costs of preparing, improving or altering space for a specific tenant; costs relating to maintaining Landlord's legal existence, either as a corporation, partnership or other entity; payments made to any entities that are related to Landlord to the extent such payments exceed the market rate customarily paid to unrelated entities for comparable goods or services; costs incurred because Landlord or any tenant violated the terms of any lease; costs that are reimbursed to Landlord by any source (other than additional rent provisions such as this one) (e.g., by way of warranties, insurance or condemnation proceeds, or payment by any other tenant); and costs incurred to remove or otherwise deal with any Hazardous Materials in, upon or under the Shopping Center that were not introduced by Tenant or any party for which Tenant is responsible. In view of the fact that Tenant is solely bearing the cost of maintaining, repairing, insuring and replacing all elements of its building, Landlord agrees that any share of Common Area Costs allocated to the Premises shall not include any costs associated with the maintenance, repair, insurance or replacement of any other buildings in the Shopping Center or the furnishing to any other premises in the Shopping Center of any work, service or utility the cost of which is being borne by Tenant with respect to the Premises.

Common Area Costs. For purposes of calculating Tenant's Allocable Share of Building and Project Costs, the term "Common Area Costs" mean is defined as all costs and expenses of the nature hereinafter described which are incurred by Landlord in a manner deemed connection with ownership and operation of the Project in which the Premises are located, together with such additional facilities as may be determined by Landlord to be reasonable reasonably desirable or necessary to the ownership and appropriate and for the best interests operation of the Shopping Center Building and/or Project. All costs and expenses shall be determined in connection accordance with the management, operation, maintenance, replacement and repair of the Common Areasgenerally accepted accounting principles which shall be consistently applied (with accruals appropriate to Landlord's business), including but not limited to securitythe following: (i) common area utilities, including water, to the extent not separately metered; (ii) common area maintenance and service agreements for the Project and the equipment therein, including without limitation, maintenance of the sidewalks, landscaping, utilitieswaterscape, paintingroof membrane, stripingparking areas, lightingdriveways, service areas, and the building exterior; (iii) insurance premiums and costs, including without limitation, the premiums and cost of fire, casualty and liability coverage and rental abatement and earthquake (if required pursuant to Section 9.B) insurance applicable to the Building or Project; (iv) repairs, replacements and general maintenance (excluding repairs and general maintenance paid by proceeds of insurance or by Tenant or other third parties, and repairs or alterations attributable solely to tenants of the Building or Project other than Tenant); (v) all real estate taxes and assessment installments or other impositions or charges which may be levied on the Building or Project, upon the occupancy of the Building or Project and including any substitute or additional charges which may be imposed during, or applicable to the Lease Term including real estate tax increases due to a sale, transfer or other change of ownership of the Building or Project, as such taxes are levied or appear on the City and County tax bills and assessment rolls; and (vi) fees for management fee services rendered by either Landlord or a third party manager engaged by Landlord (4which may be a party affiliated with Landlord), except that the total amount charged for management services and included in the expenses to be reimbursed by Tenant shall not exceed the monthly rate of 5% of gross revenues)the Base Monthly Rent, administration fee of fifteen percent (15%) of Common Area Costs which the parties acknowledge as a reasonable and pest control among fair market value for such services. Landlord shall have no obligation to provide guard services or other items. Common Area Costs shall not include depreciation of costs or expenses in connection with security measures for the original construction and installation benefit of the Common Areas or Common Area Costs which are classified as capital expenditures under generally accepted accounting principles, Project. Tenant assumes all responsibility for the protection of Tenant and Tenant's Agents from acts of third parties; provided, however, that nothing contained herein shall prevent Landlord, at its sole option, from providing security measures for the costs Project. This is a "Net" Lease, meaning that Base Monthly Rent is paid to Landlord absolutely net of improvements to the Common Areas intended to reduce Common Area Costs or as may from time to time be required by any newly enacted (after the date of this Lease) laws, ordinances, rules or regulations of any governmental authority or agency having jurisdiction thereof shall be includable in Common Area Costs to the extent of the annual amortization thereof over the useful life of the improvements. Common Area Costs shall not include principal or interest payments on any mortgage or deed of trust or ground rent payments under any ground lease; costs or expenses associated with leasing space in the Shopping Center or the sale of any interest in the Shopping Center, including marketing all costs and brokerage commissions; costs of preparing, improving or altering space expenses. The provision for a specific tenant; costs relating to maintaining Landlord's legal existence, either as a corporation, partnership or other entity; payments made to any entities that are related to Landlord to the extent such payments exceed the market rate customarily paid to unrelated entities for comparable goods or services; costs incurred because Landlord or any tenant violated the terms of any lease; costs that are reimbursed to Landlord by any source (other than additional rent provisions such as this one) (e.g., by way of warranties, insurance or condemnation proceeds, or payment by any other tenant); and costs incurred to remove or otherwise deal with any Hazardous Materials in, upon or under the Shopping Center that were not introduced by Tenant or any party for which Tenant is responsible. In view of the fact that Tenant is solely bearing the cost of maintaining, repairing, insuring and replacing all elements of its building, Landlord agrees that any share of Common Area Costs allocated by means of periodic payment of Tenant's Allocable Share of Building and/or Project Costs is intended to pass on to Tenant and reimburse Landlord for all costs of operating and managing the Premises shall not include any costs associated with the maintenance, repair, insurance or replacement of any other buildings in the Shopping Center or the furnishing to any other premises in the Shopping Center of any work, service or utility the cost of which is being borne by Tenant with respect to the PremisesBuilding and/or Project.

Common Area Costs. Common Area Costs" mean all costs incurred in a manner deemed by Landlord to be reasonable and appropriate and for the best interests of the Shopping Center in connection with the management, operation, maintenance, replacement and repair of the Common Areas, including but not limited to security, landscaping, utilities, painting, striping, lighting, management fee (4% of gross revenues), administration fee of fifteen percent (15%) of Common Area Costs and pest control among other items. Common Area Costs shall not include depreciation of costs or expenses in connection with the original construction and installation of the Common Areas or Common Area Costs which are classified as capital expenditures under generally accepted accounting principles, provided, however, that the costs of improvements to the Common Areas intended to reduce Common Area Costs or as may from time to time be required by any newly enacted (after the date of this Lease) laws, ordinances, rules or regulations of any governmental authority or agency having jurisdiction thereof shall be includable in Common Area Costs to the extent of the annual amortization thereof over the useful life of the improvements. Common Area Costs shall not include principal or interest payments on any mortgage or deed of trust or ground rent payments under any ground lease; costs or expenses associated with leasing space in the Shopping Center or the sale of any interest in the Shopping Center, including marketing costs and brokerage commissions; costs of preparing, improving or altering space for a specific tenant; costs relating to maintaining Landlord's legal existence, either as a corporation, partnership or other entity; payments made to any entities that are related to Landlord to the extent such payments exceed the market rate customarily paid to unrelated entities for comparable goods or services; costs incurred because Landlord or any tenant violated the terms of any lease; costs that are reimbursed to Landlord by any source (other than additional rent provisions such as this one) (e.g., by way of warranties, insurance or condemnation proceeds, or payment by any other tenant); and costs incurred to remove or otherwise deal with any Hazardous Materials in, upon or under the Shopping Center that were not introduced by Tenant or any party for which Tenant is responsible. In view of the fact that Tenant is solely bearing the The cost of maintaining, repairing, insuring landscaping, painting, and replacing all elements operating the Common Areas of its buildingthe Elm Road Medical Campus, Landlord agrees that to be set forth in the Declaration of Protective Covenants and Restrictions for Elm Road Medical Campus dated December 20, 2007 and recorded on January 18, 2008 as Document Number 0802055 in the office of the Recorder of St. Jxxxxx County, Indiana (“Declaration”) pursuant to an amendment to the Declaration, shall specifically include, but not necessarily limited to: repairs to, striping and patching of the parking areas or other Common Areas, lighting, removal of snow, ice, trash, rubbish and other refuse from the Common Areas, costs associated with any share of Landlord’s obligations set forth in Section 7.2, and the cost of leasing or the depreciation on any equipment used to implement the foregoing maintenance. Tenant shall pay Tenant’s Percentage Share of Common Area Costs allocated to the Premises shall not include any costs associated herein in accordance with the maintenance, repair, insurance or replacement of any other buildings Declaration as provided in Section 7.3. The Declaration amendment shall provided that Common Area Costs shall specifically exclude the Shopping Center or the furnishing to any other premises in the Shopping Center of any work, service or utility following: the cost of any item for which Landlord is being borne reimbursed by insurance or otherwise; the cost of repairs made in accordance with Landlord’s obligations pursuant to Section 6.1; the cost of any additions to the Common Areas pursuant to an expansion of the Elm Road Medical Campus’s leasable square footage; Tenant’s Percentage Share of Real Estate Taxes or Insurance (which are provided for by separate agreement herein); the cost of any alterations, additions, changes, replacements, improvements and repairs and other items which under generally accepted accounting and auditing principles consistently applied (as pertaining to the real estate industry) are properly classified as capital expenditures (except as provided herein) or which are made in order to prepare space for occupancy by a new tenant or other occupant of the Elm Road Medical Campus; the cost of any initial installations for any tenant or other occupant of the Elm Road Medical Campus; reserves for the replacement or repair of portions of, or for equipment and machinery used in connection with, the Elm Road Medical Campus; legal, accounting and other professional fees; interest or amortization payments in connection with the Elm Road Medical Campus; leasing commissions, advertising expenses and other costs incurred in leasing or attempting to lease any portion of the Elm Road Medical Campus; the cost of any services, maintenance, or repairs performed specifically for certain tenants and not for the common use and benefit of all the tenants of the Elm Road Medical Campus; the cost of correcting defects in the construction of the buildings, improvements and equipment of the Elm Road Medical Campus; the cost of Landlord’s membership (and costs related thereto) in any organizations representing Elm Road Medical Campus owners; and any political or charitable contributions. Common Area Costs payable by Tenant with respect to during the Premisesfirst (1st) Lease Year of the Lease Term are estimated at Twelve Thousand AND 00/100 DOLLARS ($12,000,00), payable by Tenant in twelve (12) equal installments during the first (1st) Lease Year of the Lease Term of One Thousand AND 00/100 DOLLARS ($1,000.00) per month.

Common Area Costs. (a) During the initial term of this Lease and any extension thereof, Tenant shall reimburse Landlord, as additional rent, Tenant's Proportionate Share of the Common Area Costs" Costs (defined below), pursuant to Section 4.4 above. (b) The term Area shall mean all actual direct costs and expenses reasonably paid or incurred in a manner deemed by Landlord to be reasonable during each calendar year during the term hereof in managing, equipping, maintaining and appropriate and for the best interests of the Shopping Center in connection with the management, operation, maintenance, replacement and repair of operating the Common Areas, including but not limited to securitycleaning, lighting, landscaping, utilities, painting, striping, lighting, management fee striping and minor patching of the parking areas (4% but excluding any repaving of gross revenuessuch parking areas), administration fee premiums for insurance required hereunder, wages and salaries of fifteen personnel employed for such operation and maintenance (to the extent such charges directly apply to the operation and maintenance of the Common Areas), charges for utilities consumed connection with such work, professional security, depreciation (on a straight line basis) of all equipment or machinery used in such maintenance and which reduces such Common Area Costs, and seven and one-half percent (157.5%) of Common all such costs (excluding Taxes, any other personal property, sales, or other taxes, Insurance, and utilities) for Landlord's administrative costs and management fees. In addition, Area Costs and pest control among other items. Common Area Costs shall not include depreciation of all costs incurred by Landlord repaving all or expenses in connection with the original construction and installation any part of the Common Areas or Common Area Costs from and after the date which are classified as capital expenditures under generally accepted accounting principles, is seven (7) years after the Commencement Date: provided, however, that such repaving costs shall be amortized on a straight line basis over a period of seven (7) years, and if Tenant's Proportionate Share of such repaving costs, as as set forth above, would exceed the costs sum of improvements Seven Thousand Fifty Dollars ($7,050) per sq. ft.), then any such excess amount shall be payable by Tenant during the next succeeding year, subject to the Common Areas intended same limitation. Any such excess amounts shall continue to reduce Common Area Costs be carried forward and be payable by Tenant for succeeding years, until such time that such amounts may be paid by Tenant without exceeding such limitation, provided that Tenant shall have no obligation to pay for any such repaving costs remaining unamortized upon the expiration or as may from time to time be required by any newly enacted (after the date termination of this Lease) laws. Notwithstanding the foregoing, ordinances, rules or regulations of any governmental authority or agency having jurisdiction thereof shall be includable in Common Area Costs to the extent of the annual amortization thereof over the useful life of the improvements. Common Area Costs shall not include principal or interest payments on any mortgage or deed of trust or ground rent payments under any ground lease; costs or expenses associated with leasing space in the Shopping Center or the sale of any interest in the Shopping Center, including marketing costs and brokerage commissions; costs of preparing, improving or altering space for a specific tenant; costs relating to maintaining Landlord's legal existence, either as a corporation, partnership or other entity; payments made to any entities that are related to Landlord to the extent such payments exceed the market rate customarily paid to unrelated entities for comparable goods or services; costs incurred because Landlord or any tenant violated the terms of any lease; costs that are reimbursed to Landlord by any source (other than additional rent provisions such as this one) (e.g., by way of warranties, insurance or condemnation proceeds, or payment by any other tenant); and costs incurred to remove or otherwise deal with any Hazardous Materials in, upon or under the Shopping Center that were not introduced by Tenant or any party for which Tenant is responsible. In view of the fact that Tenant is solely bearing the cost of maintaining, repairing, insuring and replacing all elements of its building, Landlord agrees that any share of Common Area Costs allocated to the Premises shall not include any costs associated with the maintenance, repair, insurance or replacement of any other buildings in the Shopping Center or the furnishing to any other premises in the Shopping Center of any work, service or utility the cost of which is being borne by Tenant with respect to the Premises.Area

Common Area Costs. (a) During each calendar year or portion thereof included in the Term and any renewal thereof, commencing on the Rent Commencement Date, Tenant shall pay to Landlord, as additional rent, Tenant’s Proportionate Share of Common Area Costs" . Tenant’s Proportionate Share of Common Area Costs (“Tenant’s Proportionate Share”) shall equal Tenant’s Common Area Costs Percentage times the annual Common Area Costs of the Shopping Center. Tenant’s Common Area Costs Percentage is one and 07/100 percent (1.07%) which percentage represents the ratio of the approximate gross leasable area of the Premises to the total approximate gross leasable area of the Shopping Center. In the event that the gross leasable area of the Shopping Center or the Premises is increased or decreased, the Tenant’s Common Area Costs Percentage shall be recalculated and adjusted. Tenant’s percentage share of Common Area Costs shall be the percentage set forth above, except as follows: If any space in the Shopping Center is leased to a tenant who is separately responsible for paying the cost of a service that would otherwise be included in Common Area Costs, the leasable area of such tenant’s space shall be excluded from the leasable area of the Shopping Center for the purpose of determining Tenant’s percentage share of the balance of the cost of such services. Additionally, if any space in the Shopping Center is leased to a tenant who creates an exemption from any category of Common Area Costs so as to reduce the Shopping Center’s total cost of the same proportion to that tenant’s leasable area, then the leasable area of such tenant’s space shall be excluded from the leasable area of the Shopping Center for the purpose of determining Tenant’s percentage share of such category of Common Area Costs. (b) As used in Section 3.5(a) above, the term “Common Area Costs” shall mean all the costs and expenses of every kind and nature paid or incurred by Landlord in each calendar year in operating, managing, cleaning, protecting, equipping, lighting, repairing, replacing and maintaining all Common Areas in the Shopping Center. Such costs and expenses shall include, without limitation (including appropriate reserves), (1) the cost of maintaining, repairing or replacing all service pipes, electric, gas, and water lines and sewer mains leading to and from the Premises and other premises in the Shopping Center; (2) gas, electricity, water, sanitary sewer, storm sewer and other utility charges (including surcharges of every type and nature for services provided to the Common Areas incurred in operating the Shopping Center); (3) all costs incurred in a manner deemed painting (including painting of exterior walls), gardening, landscaping, and for traffic control; (4) the cost of public liability insurance, property damage insurance, and all other insurance coverage carried by Landlord to be reasonable for all land and appropriate and for the best interests of improvements comprising the Shopping Center in connection with the management(including worker’s compensation and fidelity bonds); (5) all costs for repairs, operation, maintenance, replacement maintenance and repair of the Common Areas, improvements including but not limited to, roof repairs, maintenance and replacement; sidewalk and street repair, maintenance and replacement; sign repair and maintenance; line painting and striping; lighting; decorations; sanitary and drainage control; public address system; security systems; cleaning; removal of snow, trash and rubbish; and depreciation on machinery and equipment used in such improvements, maintenance or repair; (6) costs of personnel, if any, to security, landscaping, utilities, painting, striping, lighting, management fee (4% of gross revenues), administration fee of fifteen percent (15%) of Common Area Costs direct parking and pest control among other items. Common Area Costs shall not include depreciation of costs or expenses in connection with the original construction and installation of to provide security for the Common Areas and facilities, management fees and personnel costs, including, but not limited to salaries, wages, fringe benefits and other direct or Common Area Costs which are classified as indirect costs of engineers, superintendents, watchmen, security, porters and other Shopping Center personnel, costs of service and maintenance contracts; (7) depreciation (on a straight line basis) of all capital expenditures under generally accepted accounting principles, provided, however, that the costs of improvements made by Landlord to the Common Areas intended extent such capital expenditures are made with the intention to reduce Common Area Costs or as may from time comply with any governmental law, order, requirement or regulation; and (8) Landlord’s administrative costs and overhead costs in an amount, in the aggregate, equal to time be required by any newly enacted five percent (after 5 %) of the date total of all other Common Area Costs. For purposes of this Lease) lawsSection 3.5, ordinances, rules or regulations of any governmental authority or agency having jurisdiction thereof shall be includable in Common Area Costs to the extent of the annual amortization thereof over the useful life of the improvements. Common Area Costs shall not include principal or interest payments on any mortgage or deed of trust or ground rent payments under any ground lease; costs or expenses associated with leasing space in the Shopping Center or the sale of any interest in the term “Shopping Center, including marketing costs and brokerage commissions; costs of preparing, improving or altering space for a specific tenant; costs relating to maintaining Landlord's legal existence, either ” shall include the Land (as a corporation, partnership or other entity; payments made to any entities that are related to Landlord to the extent such payments exceed the market rate customarily paid to unrelated entities for comparable goods or services; costs incurred because Landlord or any tenant violated the terms of any lease; costs that are reimbursed to Landlord by any source (other than additional rent provisions such as this one) (e.g., by way of warranties, insurance or condemnation proceeds, or payment by any other tenantdefined in Section 3.6); and costs incurred to remove or otherwise deal with any Hazardous Materials in, upon or under the Shopping Center that were not introduced by Tenant or any party for which Tenant is responsible. In view of the fact that Tenant is solely bearing the cost of maintaining, repairing, insuring and replacing all elements of its building, Landlord agrees that any share of Common Area Costs allocated to the Premises shall not include any costs associated with the maintenance, repair, insurance or replacement of any other buildings in the Shopping Center or the furnishing to any other premises in the Shopping Center of any work, service or utility the cost of which is being borne by Tenant with respect to the Premises.