Common use of Common Area Costs Clause in Contracts

Common Area Costs. The cost of maintaining, repairing, landscaping, painting, and operating the Common Areas of the Elm Road Medical Campus, 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 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 herein in accordance with the Declaration as provided in Section 7.3. The Declaration amendment shall provided that Common Area Costs shall specifically exclude the following: the cost of any item for which Landlord is 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 during the first (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 (defined below), pursuant to Section 4.4 above. (b) The cost of maintainingterm Area shall mean all actual direct costs and expenses reasonably paid or incurred by Landlord during each calendar year during the term hereof in managing, repairingequipping, landscaping, painting, maintaining and operating the Common Areas of the Elm Road Medical CampusAreas, to be set forth in the Declaration of Protective Covenants and Restrictions for Elm Road Medical Campus dated December 20including cleaning, 2007 and recorded on January 18lighting, 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 tolandscaping, striping and minor patching of the parking areas or other Common Areas(but excluding any repaving of such parking areas), lightingpremiums for insurance required hereunder, removal wages and salaries of snow, ice, trash, rubbish personnel employed for such operation and other refuse from maintenance (to the extent such charges directly apply to the operation and maintenance of the Common Areas), costs associated charges for utilities consumed connection with any such work, professional security, depreciation (on a straight line basis) of Landlord’s obligations set forth all equipment or machinery used in Section 7.2such maintenance and which reduces such Common Area Costs, and the cost seven and one-half percent (7.5%) of leasing all such costs (excluding Taxes, any other personal property, sales, or the depreciation on other taxes, Insurance, and utilities) for Landlord's administrative costs and management fees. In addition, Area shall include all costs incurred by Landlord repaving all or any equipment used to implement the foregoing maintenance. Tenant shall pay Tenant’s Percentage Share part of Common Area Costs herein in accordance with the Declaration as provided in Section 7.3. The Declaration amendment shall provided that Common Area Costs shall specifically exclude the following: the cost of any item for which Landlord is 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 from and after the date which 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 the Elm Road Medical Campus’s leasable square footage; seven (7) years, and if Tenant’s Percentage 's Proportionate Share of Real Estate Taxes or Insurance such repaving costs, as as set forth above, would exceed the sum of Seven Thousand Fifty Dollars (which are provided for by separate agreement herein$7,050) per sq. ft.); the cost of , then 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 such excess amount shall be payable by Tenant during the first (1st) Lease Year of next succeeding year, subject to the Lease Term are estimated at Twelve Thousand AND 00/100 DOLLARS ($12,000,00), same limitation. Any such excess amounts shall continue to be carried forward and be payable by Tenant in twelve (12) equal installments during 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 first (1st) Lease Year expiration or termination of this Lease. Notwithstanding the Lease Term of One Thousand AND 00/100 DOLLARS ($1,000.00) per month.foregoing, Area

Common Area Costs. The 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, landscapinginsuring and replacing all elements of its building, painting, and operating the Common Areas of the Elm Road Medical Campus, 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 Landlord agrees that any 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 share of Common Area Costs herein in accordance allocated to the Premises shall not include any costs associated with the Declaration as provided maintenance, repair, insurance or replacement of any other buildings in Section 7.3. The Declaration amendment shall provided that Common Area Costs shall specifically exclude the following: Shopping Center or the furnishing to any other premises in the Shopping Center of any work, service or utility the cost of any item for which Landlord is reimbursed being borne by insurance or otherwise; the cost of repairs made in accordance Tenant with Landlord’s obligations pursuant to Section 6.1; the cost of any additions respect 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 during the first (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 monthPremises.

Common Area Costs. The cost of maintaining, repairing, landscaping, painting, and operating the Common Areas of the Elm Road Medical Campus, to be set forth (a) During each calendar year or portion thereof included in the Declaration of Protective Covenants Term and Restrictions for Elm Road Medical Campus dated December 20any renewal thereof, 2007 and recorded commencing on January 18the Rent Commencement Date, 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 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 to Landlord, as additional rent, Tenant’s Percentage Proportionate Share of Common Area Costs. Tenant’s Proportionate Share of Common Area Costs herein in accordance with (“Tenant’s Proportionate Share”) shall equal Tenant’s Common Area Costs Percentage times the Declaration as provided in Section 7.3annual Common Area Costs of the Shopping Center. The Declaration amendment 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 provided that be recalculated and adjusted. Tenant’s percentage share of Common Area Costs shall specifically exclude be the followingpercentage 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 any item 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 which Landlord is reimbursed by insurance or otherwise; the purpose of determining Tenant’s percentage share of the balance of the cost of repairs made such services. Additionally, if any space in accordance with Landlordthe 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 obligations pursuant 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 6.1; 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 any additions 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 pursuant to an expansion of incurred in operating 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 hereinShopping Center); (3) all costs incurred in painting (including painting of exterior walls), gardening, landscaping, and for traffic control; (4) the cost of any alterationspublic liability insurance, additionsproperty damage insurance, changesand all other insurance coverage carried by Landlord for all land and improvements comprising the Shopping Center (including worker’s compensation and fidelity bonds); (5) all costs for repairs, replacementsmaintenance and improvements including but not limited to, improvements roof repairs, maintenance and repairs 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 direct parking and 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 items which under generally accepted accounting direct or indirect costs of engineers, superintendents, watchmen, security, porters and auditing principles consistently applied other Shopping Center personnel, costs of service and maintenance contracts; (as pertaining 7) depreciation (on a straight line basis) of all capital expenditures made by Landlord to the real estate industry) are properly classified as extent such 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 intention 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. reduce Common Area Costs payable by Tenant during or comply with any governmental law, order, requirement or regulation; and (8) Landlord’s administrative costs and overhead costs in an amount, in the first aggregate, equal to five percent (1st5 %) Lease Year of the Lease Term are estimated at Twelve Thousand AND 00/100 DOLLARS total of all other Common Area Costs. For purposes of this Section 3.5, the term “Shopping Center” shall include the Land ($12,000,00as defined in Section 3.6), 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. The cost Tenant shall pay Landlord for Landlord’s estimate of maintainingall Common Area Costs, as defined in this subparagraph, during the Lease Term. Such payments shall be made on a monthly basis in accordance with Section 4.06, below. All costs incurred by Landlord for the operation and maintenance of the Common Areas located on the Property, or for maintenance of which the owner of the Property is or shall be liable to contribute pursuant to applicable recorded restrictions, are herein referred to as “Common Area Costs”. Common Area Costs include, but are not limited to, costs and expenses for paving maintenance for the private common drive providing access to the Premises from various public streets; Project monument signage and landscaping: all real property taxes and assessments levied on or attributable to the Common Areas and all Common Area improvements; all personal property taxes levied on or attributable to personal property used in connection with the Common Areas; straight-line depreciation on personal property owned by Landlord which is consumed in the operation or maintenance of the Common Areas; rental or lease payments paid by Landlord for rented or leased personal property used in the operation or maintenance of the Common Areas; fees for required licenses and permits; repairing, landscapingresurfacing, repaving, maintaining, painting, lighting, cleaning, refuse removal, security and operating similar items; and a reasonable allowance (not to exceed five percent (5%) of the Common Areas Area Costs) to Landlord for Landlord’s supervision of the Elm Road Medical Campus, 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 . Landlord may cause any or all of Landlord’s obligations set forth in Section 7.2, such services to be provided by third parties based upon prevailing market rates and the cost of leasing or the depreciation on any equipment used to implement the foregoing maintenance. Tenant such services shall pay Tenant’s Percentage Share of be included in Common Area Costs herein in accordance with the Declaration as provided in Section 7.3Costs. The Declaration amendment shall provided that Common Area Costs shall specifically exclude not include interest on debt, capital retirement of debt or depreciation of real property which forms part of the following: Project; legal fees of Landlord incurred in connection with lease negotiations or enforcement; brokerage commissions; expenses for the cost renovation of space for new tenants; compensation paid to any employee of Landlord or agent above the grade of Building manager; costs associated with correcting any violation of law; costs due to Landlord’s breach of this Lease; costs relating to any art work or the like; political or charitable contributions; entertainment or travel expenses of Landlord or its employees, agents, partners and affiliates; reserves of any item for which Landlord is 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 alterationskind, additionsincluding without limitation, changes, replacements, improvements replacement reserves 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 bad debts or lost rent or any similar charge not involving the replacement or repair payment of portions of, or for equipment and machinery used in connection with, the Elm Road Medical Campusmoney to third parties; legal, accounting and other professional fees; interest or amortization payments costs incurred in connection with the Elm Road Medical Campussale, financing or refinancing of the Project; leasing commissions, advertising organizational expenses associated with the creation and other costs operation of the entity which constitutes Landlord; or Landlord’s expenses 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 during the first (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 monthtenant finish improvements.