Common Area Operating Expenses. Lessee shall pay to Lessor during the term hereof, in addition to the Base Rent, Lessee's Share (as specified in Paragraph 1.6) of all Common Area Operating Expenses, as hereinafter defined, during each calendar year of the term of this Lease, in accordance with the following provisions: (a) The following costs relating to the ownership and operation of the Project are defined as "Common Area Operating Expenses": (i) Costs relating to the operation, repair and maintenance, in neat, clean, good order and condition, but not the replacement (see subparagraph (e)), of the following: (aa) The Common Areas and Common Area improvements, including parking areas, loading and unloading areas, trash areas, roadways, parkways, walkways, driveways, landscaped areas, bumpers, irrigation systems, Common Area lighting facilities, fences and gates, elevators, roofs, exterior walls of the buildings, building systems and roof drainage systems. (bb) Exterior signs and any tenant directories. (cc) Any fire sprinkler systems. (dd) All other areas and improvements that are within the exterior boundaries of the Project but outside of the Premises and/or any other space occupied by a tenant. (ii) The cost of water, gas, electricity and telephone to service the Common Areas and any utilities not separately metered. (iii) The cost of trash disposal, pest control services, property management, security services, owner's association dues and fees, the cost to repaint the exterior of any structures and the cost of any environmental inspections. (iv) Any increase above the Base Real Property Taxes (as defined in Paragraph 9). (v) Any "Insurance Cost Increase" (as defined in Paragraph 7). (vi) Any deductible portion of an insured loss concerning the Building or the Common Areas. (vii) Auditors', accountants' and attorneys' fees and costs related to the operation, maintenance, repair and replacement of the Project. (viii) The cost of any capital improvement to the Building or the Project not covered under the provisions of Paragraph 2.3 provided; however, that Lessor shall allocate the cost of any such capital improvement over a 12 year period end Lessee shall not be required to pay more than Lessee's Share of 1/144th of the cost of such capital improvement in any given month. The cost of such improvement shall be capitalized under GAAP and amortized over the useful life of such improvements and the annual amortization shall be deemed an operating expense in each of the calendar years during which the cost of the improvement is amortized. (ix) The cost of any other services to be provided by Lessor that are stated elsewhere in this Lease to be a Common Area Operating Expense.
Appears in 2 contracts
Samples: Standard Industrial/Commercial Multi Tenant Lease Gross, Standard Industrial/Commercial Multi Tenant Lease Gross (Zoned Properties, Inc.)
Common Area Operating Expenses. Lessee shall pay to Lessor during the term hereof, in addition Notwithstanding anything to the Base Rentcontrary contained in this Lease, Lessee's Share (as specified in Paragraph 1.6) of all the following shall not be included within Common Area Operating Expenses, as hereinafter defined, during each calendar year : Any depreciation on the Building or Property. Costs of a capital nature involving replacement of the term roof, foundation, structural members, load-bearing walls, or building systems; provided, however, that Lessee shall be responsible for replacement of the HVAC system serving the Premises, if required during the first ten (10) years of the Lease term. If replacement of the HVAC system is required thereafter, the cost thereof shall be borne by Landlord, and Landlord shall be entitled to include in Common Area Operating Expenses annually an amount equal to one year's amortized cost of such replacement HVAC, amortized over an anticipated ten year useful life. Such amortization shall be at ten percent (10%). Costs incurred due to Lessor's violation of any terms or conditions of this Lease, in accordance with the following provisions:
(a) The following costs relating . Overhead profit increments paid to Lessor's subsidiaries or affiliates for management or other services on or to the ownership and operation building or for supplies or other materials to the extent that the cost of the Project are defined as "services, supplies, or materials exceeds the cost that would have been paid had the services, supplies, or materials been provided by unaffiliated parties on a competitive basis. All interest, loan fees, and other carrying costs related to any mortgage or deed of trust or related to any capital item, and all rental and other payable due under any ground or underlying lease, or any lease for any equipment ordinarily considered to be of a capital nature (except janitorial equipment which is not affixed to the Building.) Costs of repairs and other work occasioned by fire, windstorm, or other casualty of an insurable nature (but not including deductibles paid by Landlord for insured losses). In no event, however, shall Common Area Operating Expenses":
(i) Costs relating include the amount of any deductibles paid with respect to any loss covered by earthquake coverage, where such deductible exceeds twenty-five thousand dollars. Any costs, fines, or penalties incurred due to violations by Lessor of any governmental rule or authority, this Lease or any other lease in the Property, or due to Lessor's negligence or willful misconduct. Management costs, to the operation, repair and maintenance, in neat, clean, good order and condition, but not the replacement (see subparagraph (e)), extent they exceed 5% of the following:
(aa) The Common Areas and Common Area improvements, including parking areas, loading and unloading areas, trash areas, roadways, parkways, walkways, driveways, landscaped areas, bumpers, irrigation systems, Common Area lighting facilities, fences and gates, elevators, roofs, exterior walls of the buildings, building systems and roof drainage systems.
(bb) Exterior signs and any tenant directories.
(cc) Any fire sprinkler systems.
(dd) All other areas and improvements that are within the exterior boundaries of the Project but outside of the Premises and/or any other space occupied by a tenant.
(ii) The cost of water, gas, electricity and telephone to service the Common Areas and any utilities not separately metered.
(iii) The cost of trash disposal, pest control services, property management, security services, owner's association dues and fees, the cost to repaint the exterior of any structures and the cost of any environmental inspections.
(iv) Any increase above the Base Real Property Taxes (as defined in Paragraph 9).
(v) Any "Insurance Cost Increase" (as defined in Paragraph 7).
(vi) Any deductible portion of an insured loss concerning the Building or the Common Areas.
(vii) Auditors', accountants' and attorneys' fees and costs related to the operation, maintenance, repair and replacement of the Project.
(viii) The cost of any capital improvement to the Building or the Project not covered under the provisions of Paragraph 2.3 provided; however, that Lessor shall allocate the cost of any such capital improvement over a 12 year period end Lessee shall not be required to pay more than Lessee's Share of 1/144th of the cost of such capital improvement in any given monthAnnual Rent. The cost of such improvement shall be capitalized under GAAP and amortized over correcting any building code or other violations which were violations prior to the useful life of such improvements and the annual amortization shall be deemed an operating expense in each of the calendar years during which the cost of the improvement is amortized.
(ix) Commencement Date. The cost of containing, removing, or otherwise remediating any other services to be provided contamination of the Property (including the underlying land and ground water) by Lessor that are stated elsewhere in this Lease to be a Common Area Operating Expenseany toxic or hazardous materials (including, without limitation, asbestos and "PCB's") where such contamination was not caused by Lessee or any of its agents, employees, contractors or invitees.
Appears in 1 contract
Samples: Standard Industrial/Commercial Multi Tenant Lease (Homestead Com Inc)
Common Area Operating Expenses. Lessee shall pay to Lessor during the term hereof, in addition to the Base Rent, Lessee's Share (as specified in Paragraph Section 1.6) of all the Common Area Operating Expenses, as hereinafter defined, during each calendar year of the term of this Lease, in accordance with the following provisionsfollowing:
(a) 4.2.1 The following costs relating to the ownership and operation of the Project are defined as "Common Area Operating Expenses":
(ia) Costs relating to the operation, repair and maintenance, in neat, clean, good order and condition, but not the replacement (see subparagraph (e)), condition of the following:
(aa1) The Common Areas and Common Area improvements, including parking areas, loading and unloading areas, trash areas, roadways, parkways, walkways, driveways, landscaped areas, bumpers, irrigation systems, Common Area lighting facilities, fences and gates, elevators, roofs, exterior walls of the buildings, building systems and roof drainage systems.
(bb2) Exterior signs and any tenant directories.
(cc3) Any fire sprinkler systems.
(dd4) All other areas and improvements that are within the exterior boundaries of the Project but outside of the Premises and/or any other space occupied by a tenant.
(iib) The cost of water, gas, electricity and telephone to service the Common Areas and any utilities not separately metered.
(iiic) The cost of trash disposal, pest control services, property management, security services, owner's owners' association dues and fees, the cost to repaint the exterior of any structures and the cost of any environmental inspections.
(ivd) Any increase above the Base Reserves set aside for maintenance and repair of Common Areas and Common Area equipment. ·
(e) Real Property Taxes (as defined in Paragraph 9Section 11).
(vf) Any "Insurance Cost Increase" Premiums (as defined in Paragraph 7Section 9.1). the Common Areas.
(vig) Any deductible portion of an insured loss concerning the Building or the Common Areas.Project or
(viih) Auditors', accountants' and attorneys' fees and costs related to the operation, maintenance, repair and replacement of the Project.
(viiii) The cost of any capital improvement to the Building or the Project not covered under the provisions of Paragraph 2.3 provided; Section 2.3, provided however, that Lessor the monthly amount payable during the remainder of the term of this Lease or any extension thereof shall allocate the cost of any such capital improvement over a 12 year period end Lessee shall not be required limited to pay more than Lessee's Share of 1/144th of the cost of such capital improvement in any given month. expenditure, multiplied by a fraction, the numerator of which shall be one (1) and the denominator of which shall be the number of months over which the capital expenditure may be depreciated by the Lessor for income tax purposes.
(j) The cost of such improvement shall be capitalized under GAAP and amortized over the useful life of such improvements and the annual amortization shall be deemed an operating expense in each of the calendar years during which the cost of the improvement is amortizedjanitorial services for non-leasable areas.
(ixk) Costs for Lessor's management, accounting, bookkeeping, payment of Common Area Operating Expenses, collection of reimbursements and related services, which shall not cumulatively exceed five percent (5%) of total Common Area Operating Expenses on an annual basis.
(I) The cost of any other services to be provided by Lessor that are stated elsewhere in this Lease to be a Common Area Operating Expense.
4.2.2 Any Common Area Operating Expenses and Real Property Taxes that are specifically attributable to the Unit, or to any building in the Project or to the operation, repair and maintenance thereof, shall be allocated entirely to such Unit or other building. However, any Common Area Operating Expenses and Real Property Taxes that are not specifically attributable to any building or to the operation, repair and maintenance thereof, shall be equitably allocated by Lessor to all buildings in the Project.
4.2.3 The inclusion of the improvements, facilities and services set forth in Section 4.2.1 shall not be deemed to impose an obligation upon Lessor to either have said improvements or facilities or to provide those services unless the Project already has the same, Lessor already provides the services, or Lessor has agreed elsewhere in this Lease to provide the same or some of them.
4.2.4 Lessee's Share of Common Area Operating Expenses is payable monthly on the same day as the Base Rent is due hereunder. The amount of such payments shall be based on Lessor's estimate of the annual Common Area Operating Expenses, which is currently $2,000.00 per month, but is subject to modification at any time during the Term of this Lease. Within 60 days after written request (but not more than once each year) Lessor shall deliver to Lessee a reasonably detailed statement showing Lessee's Share of the actual Common Area Operating Expenses for the preceding year. If Lessee's payments during such year exceed Lessee's Share, Lessor shall credit the amount of such over-payment against Lessee's future payments. If Lessee's payments during such year were less than Lessee's Share, Lessee shall pay to Lessor the amount of the deficiency within 1O days after delivery by Lessor to Lessee of the statement.
4.2.5 Common Area Operating Expenses shall not include any expenses paid by any tenant directly to third parties, or as to which Lessor is otherwise reimbursed by any third party, other tenant, or insurance proceeds.
Appears in 1 contract
Common Area Operating Expenses. Lessee shall pay to Lessor during the term hereof, in addition to the Base Rent, Lessee's ’s Share (as specified in Paragraph Section 1.6) of all the Common Area Operating Expenses, as hereinafter defined, during each calendar year of the term of this Lease, in accordance with the following provisionsfollowing:
(a) 4.2.1 The following costs relating to the ownership and operation of the Project are defined as "“Common Area Operating Expenses"”:
(ia) Costs relating to the operation, repair and maintenance, in neat, clean, good order and condition, but not the replacement (see subparagraph (e)), condition of the following:
(aa1) The Common Areas and Common Area improvements, including parking areas, loading and unloading areas, trash areas, roadways, parkways, walkways, driveways, landscaped areas, bumpers, irrigation systems, Common Area lighting facilities, fences and gates, elevators, roofs, exterior walls of the buildings, building systems and roof drainage systems.
(bb2) Exterior signs and any tenant directories.
(cc3) Any fire sprinkler systems.
(dd4) All other areas and improvements that are within the exterior boundaries of the Project but outside of the Premises and/or any other space occupied by a tenant.
(iib) The cost of water, gas, electricity and telephone to service the Common Areas and any utilities not separately metered.
(iiic) The cost of trash disposal, pest control services, property management, security services, owner's owners’ association dues and fees, the cost to repaint the exterior of any structures and the cost of any environmental inspections.
(ivd) Any increase above the Base Reserves set aside for maintenance and repair of Common Areas and Common Area equipment.
(e) Real Property Taxes (as defined in Paragraph 9Section 11).
(vf) Any "Insurance Cost Increase" Premiums (as defined in Paragraph 7Section 9.1).
(vig) Any deductible portion of an insured loss concerning the Building Project or the Common Areas.
(viih) Auditors'’, accountants' ’ and attorneys' ’ fees and costs related to the operation, maintenance, repair and replacement of the Project.
(viiii) The cost of any capital improvement to the Building or the Project not covered under the provisions of Paragraph 2.3 provided; Section 2.3, provided however, that Lessor shall allocate the cost of any such capital improvement over a 12 year period end Lessee shall not be required to pay more than Lessee's Share of 1/144th monthly amount payable during the remainder of the cost term of this Lease or any extension thereof shall be limited to Lessee’s Share of such capital improvement in any given month. expenditure, multiplied by a fraction, the numerator of which shall be one (1) and the denominator of which shall be the number of months over which the capital expenditure may be depreciated by the Lessor for income tax purposes.
(j) The cost of such improvement shall be capitalized under GAAP and amortized over the useful life of such improvements and the annual amortization shall be deemed an operating expense in each of the calendar years during which the cost of the improvement is amortizedjanitorial services for non-leasable areas.
(ixk) Costs for Lessor’s management, accounting, bookkeeping, payment of Common Area Operating Expenses, collection of reimbursements and related services, which shall not cumulatively exceed five percent (5%) of total Common Area Operating Expenses on an annual basis.
(l) The cost of any other services to be provided by Lessor that are stated elsewhere in this Lease to be a Common Area Operating Expense.
4.2.2 Any Common Area Operating Expenses and Real Property Taxes that are specifically attributable to the Unit, or to any building in the Project or to the operation, repair and maintenance thereof, shall be allocated entirely to such Unit or other building. However, any Common Area Operating Expenses and Real Property Taxes that are not specifically attributable to any building or to the operation, repair and maintenance thereof, shall be equitably allocated by Lessor to all buildings in the Project.
4.2.3 The inclusion of the improvements, facilities and services set forth in Section 4.2.1 shall not be deemed to impose an obligation upon Lessor to either have said improvements or facilities or to provide those services unless the Project already has the same, Lessor already provides the services, or Lessor has agreed elsewhere in this Lease to provide the same or some of them.
4.2.4 Lessee’s Share of Common Area Operating Expenses is payable monthly on the same day as the Base Rent is due hereunder. The amount of such payments shall be based on Lessor’s estimate of the annual Common Area Operating Expenses, which is currently $2,000.00 per month, but is subject to modification at any time during the Term of this Lease. Within 60 days after written request (but not more than once each year) Lessor shall deliver to Lessee a reasonably detailed statement showing Lessee’s Share of the actual Common Area Operating Expenses for the preceding year. If Lessee’s payments during such year exceed Lessee’s Share, Lessor shall credit the amount of such over-payment against Lessee’s future payments. If Lessee’s payments during such year were less than Lessee’s Share, Lessee shall pay to Lessor the amount of the deficiency within 10 days after delivery by Lessor to Lessee of the statement.
4.2.5 Common Area Operating Expenses shall not include any expenses paid by any tenant directly to third parties, or as to which Lessor is otherwise reimbursed by any third party, other tenant, or insurance proceeds.
Appears in 1 contract
Samples: Industrial/Commercial Multi Tenant Lease (Vital Therapies Inc)
Common Area Operating Expenses. Lessee shall pay to Lessor during the term hereof, in addition to the Base Rent, Lessee's Share (as specified in Paragraph 1.6) of all Common Area Operating Expenses, as hereinafter defined, during each calendar year of the term of this Lease, in accordance with the following provisions:
(a) The following All costs incurred by Landlord relating to the ownership and operation of the Project are defined as "Project, including, but not limited to, the following (collectively, the “Common Area Operating Expenses":”):
(ia) Costs relating to the The operation, repair and maintenance, in neat, clean, good order and condition, but not the replacement (see subparagraph (e)), of the following:
(aai) The Common Areas and Common Area improvementsAreas, including parking areasthe Parking Garage, loading and unloading docks and areas, trash and recycling areas, roadways, parkwayssidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, Common Area lighting facilities, fences and gates, elevatorselevators and roof, roofs, exterior walls of the buildings, building systems and roof drainage systems.
(bbii) Exterior signs and any tenant directoriesdirectories for which Landlord is responsible under this Lease.
(cciii) Any fire sprinkler systemsThe Building Systems.
(dd) All other areas and improvements that are within the exterior boundaries of the Project but outside of the Premises and/or any other space occupied by a tenant.
(iib) The cost of water, gas, electricity and telephone to service the Common Areas and any utilities not separately metered.
(iiic) The cost of trash Trash and recycling disposal, pest control services, property management, management and security services, owner's association dues and fees, the cost to repaint the exterior of any structures services and the cost costs of any environmental inspections’ provided that Tenant’s Percentage Share of Common Area Operating Expenses for any calendar year shall include a property management fee equal to [***] percent ([***]%) of the Building’s revenues plus expenses.
(iv) Any increase above the Base Real Property Taxes (as defined in Paragraph 9).
(v) Any "Insurance Cost Increase" (as defined in Paragraph 7).
(vi) Any deductible portion of an insured loss concerning the Building or the Common Areas.
(vii) Auditors', accountants' and attorneys' fees and costs related to the operation, maintenance, repair and replacement of the Project.
(viiid) The cost of any capital improvement improvements (as determined by generally accepted accounting principles) made by Landlord to the Building or the Project not covered under after the provisions of Paragraph 2.3 provided; howeverCommencement Date that are (i) reasonably anticipated by Landlord to reduce other Common Area Operating Expenses, that Lessor shall allocate and only to the cost of any such capital improvement over a 12 year period end Lessee shall not be required to pay more than Lessee's Share of 1/144th of the cost extent of such capital improvement reasonably anticipated savings, (ii) made to the Premises and/or Common Areas or any portion thereof that are required under any Applicable Law which is first enacted into law after the Commencement Date, or (iii) required by this Lease to be made to the Premises and/or Common Areas by Landlord in order to replace any given monthitem that has worn out, become obsolete, or otherwise requires replacement (collectively, the “Capital Improvement Expenses”). The cost of such improvement Any Capital Improvement Expenses shall be capitalized under GAAP and amortized over the useful life of such capital improvements at the Amortization Rate as reasonably determined by Landlord in accordance with industry standard practices (commencing on completion of such capital improvement), and only the annual amortization amortized portion of such cost shall be deemed an operating expense included in each of the calendar years during which the cost of the improvement is amortizedCommon Area Operating Expenses in any one Lease Year.
(ixe) The cost of any Any other services to be provided by Lessor Landlord that are stated elsewhere in this Lease to be a Common Area Operating Expense. Notwithstanding any other provision of this Lease to the contrary, Common Area Operating Expenses shall not include the following: (1) depreciation on the Building; (2) debt service, interest, principal, points, attorneys’ fees, environmental investigations or reports, and fees and other lender costs and closing costs incurred by Landlord on any loan secured by a deed of trust or any other debt instrument encumbering the Project or any part thereof or on any unsecured loan obtained by Landlord; (3) any payments or rental by Landlord under a ground lease or master lease relating to the Project; (4) attorneys’ fees and expenses, brokerage commissions, or other related expenses incurred in connection with leasing of the Project including lease concessions, rental abatements and construction allowances; (5) the cost of any improvements or equipment that would be properly classified as capital expenditures (except for any capital expenditures expressly included in Section 4.3.3(e)); (6) the cost of decorating, improving for tenant occupancy, painting or redecorating portions of the Building to be demised to tenants; (7) marketing and promotional costs with respect to the Project and leasing of space, including advertising expenses relating to vacant space; (8) real estate brokers’ or other leasing commissions; (9) rentals incurred in leasing HVAC systems, elevators or other equipment that if purchased rather than rented, would constitute a capital item that is excluded, except for (i) rental costs incurred in making repairs or in keeping Building Systems in operation while repairs are being made and (ii) rental costs of equipment not affixed to the Building that is used in providing janitorial or similar services; (10) costs for which Landlord is reimbursed by (i) insurance carried by, or required to be carried by, Landlord, (ii) condemnation proceeds, or (iii) other tenants or any other source, and Landlord shall use commercially reasonable efforts to pursue claims under insurance policies, existing warranties and/or guaranties or against other third parties, as applicable, to pay such costs; provided, that, the reasonable cost of pursuing such claims shall be included in Common Area Operating Expenses; (11) any bad debt loss, rent loss, or reserves for bad debt loss or rent loss; (12) costs incurred in connection with the operation of the business of the entity constituting Landlord, as distinguished from the costs of operating the Building, including accounting and legal matters, costs of defending any lawsuits with any mortgagee, costs of selling, syndicating, financing, mortgaging or hypothecating any of Landlord’s interest in the Building; (13) overhead and profit increment paid to Landlord or its affiliates for goods and/or services in the Building to the extent the same exceed the cost of such goods and/or services of comparable quality rendered by unaffiliated third parties of similar skill, competence and experience in Comparable Buildings; (14) costs for which Landlord has been compensated by a management fee to the extent that the inclusion of such costs in Common Area Operating Expenses would result in a double charge; (15) Landlord’s political or charitable contributions; (16) the cost of any “tenant relations” parties, events or promotions; (17) costs attributable to an increase in the size of the Project management office or rent attributable to any such increase; (18) any costs, fees, dues, contributions or similar expenses for industry associations or similar organizations to which Landlord is a member; (19) costs to repair or replace the Project resulting from any casualty; (20) repairs, alterations, additions, improvements or replacements made to rectify or correct any defect in the design, materials or workmanship of the Project (as opposed to the cost of normal repair, maintenance and replacement expected in light of the specifications of the applicable construction materials and equipment) or to comply with any Applicable Laws in effect as of the Commencement Date; (21) repairs, alterations, additions, improvements or replacements made to rectify or correct damage caused by the negligence or willful misconduct of Landlord or any Landlord Party; (22) costs incurred in installing, operating and maintaining any specialty improvement not normally installed, operated and maintained in projects comparable to the Project, including, without limitation, an observatory, luncheon club, or athletic or recreational facilities, if not generally available to all office tenants of the Project, including Tenant; (23) salaries, wages, bonuses and other compensation (including hospitalization, medical, surgical, retirement plan, pension plan, union dues, parking privileges, life insurance, including group life insurance, welfare and other fringe benefits, and vacation, holidays and other paid absence benefits) relating to asset managers, leasing agents, promotional directors, officers, directors, or executives of Landlord that are above the rank of senior property manager or the Building chief engineer; (24) fines, penalties or interest incurred due to violation by Landlord of the terms and conditions of any lease or any Applicable Laws or due to violation by any other tenant in the Project of the terms and conditions of any lease or any Applicable Laws; (25) interest, penalties or other costs arising out of Landlord’s failure to make timely payment of its obligations; (26) property management fees in excess of the amount set forth in Section 4.3.3(c); (27) costs incurred to test, survey, cleanup, contain, axxxx, remove, remediate, mitigate, monitor or otherwise remedy Hazardous Materials or mold from the Project (except that Common Area Operating Expenses shall include costs incurred in connection with the prudent operation and maintenance of the Project, such as monitoring air quality); (28) costs incurred to correct defective equipment installed in the Project (as opposed to the cost of normal repair, maintenance and replacement expected in light of the specifications of the applicable equipment); (29) sale or financing costs incurred in connection with any sale, financing or refinancing of the Project; (30) any reserves other than those expressly set forth in Section 4.3.3(d); (31) costs for sculpture, paintings or other objects of art installed by Landlord in the Project; (32) the cost of operation, repair, maintenance and other expenses relating to the portions of the Building used for retail and restaurant use, to the extent that, in Landlord’s reasonable judgment, such costs exceed the costs that which would have been incurred by Landlord if the entirety of the Building had been office space (rather than a mixture of office and retail and restaurant space); (33) costs and expenses of providing HVAC service to other tenant spaces in the Building outside of Building Standard Hours; (34) costs and expenses of providing electricity to areas of the Building outside of the Common Areas; (35) costs and expenses to provide water, gas, fuel, steam, lights, sewer service and other utilities to other tenants or occupants of the Building in excess of amounts typically used in connection with ordinary office use; (36) costs relating to the repair of structural portions of the roof, foundations, floors and exterior walls; (37) costs incurred in connection with re-certification pursuant to one or more Green Rating Systems or to support achieving any energy and carbon reduction targets (except costs incurred pursuant to Section 7.6.2 below); (38) the cost of labor and employees with respect to personnel not located at the Building on a full-time basis unless such costs are appropriately allocated between the Building and the other responsibilities of such personnel; (39) any of the amounts set forth in above to the extent paid to asset managers, leasing agents, promotional directors, officers, directors, or executives of Landlord that are above the rank of senior property manager or the Building chief engineer; (40) costs for janitorial services for any rentable area in the Project to the extent Tenant continues to provide such services to the Premises as set forth herein; (41) travel expenses of Landlord, its employees, agents, partners and affiliates, (42) costs of any parties, ceremonies or other events for third parties conducted by Landlord, (43) Landlord Overruns, (44) any hard or soft costs associated with the [***], (45) any hard or soft costs associated with the [***], (46) any hard or soft costs associated with the Security System Transfer, and (47) any hard and soft costs in connection with the Cafeteria Enforcement Measures, which shall be paid solely by Landlord and not reimbursed by Tenant.
Appears in 1 contract
Samples: Office Lease (Zynga Inc)
Common Area Operating Expenses. Lessee shall pay to Lessor during the term hereof, in addition to the Base Rent, Lessee's Share (as specified in Paragraph 1.61 6(b)) of all Common Area Operating Expenses, as hereinafter defined, during each calendar year of the term of this Lease, in accordance with the following provisions:
(a) The following Common Area Operating Expenses. are defined, for purposes of this Lease, as all costs incurred by Lessor relating to the ownership and operation of the Project are defined as "Common Area Operating Expenses"industrial Center, including, but not limited to, the following:
(i) Costs relating to the The operation, repair and maintenance, in neat, clean, good order and condition, but not the replacement (see subparagraph (e)), of the following:
: (aa) The Common Areas and Common Area improvementsAreas, including parking areas, loading and unloading areas, trash areas, roadways, parkwayssidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, Common Area lighting fighting facilities, fences and gates, elevators, roofs, exterior walls of the buildings, building systems elevators and roof drainage systems.
roof. (bb) Exterior signs and any tenant directories.
. (cc) Any fire Fire detection and sprinkler systems.
(dd) All other areas and improvements that are within the exterior boundaries of the Project but outside of the Premises and/or any other space occupied by a tenant.
(ii) The cost of water, gas, electricity and telephone to service the Common Areas and any utilities not separately meteredAreas.
(iii) The cost of trash Trash disposal, pest control services, property management, management and security services, owner's association dues and fees, the cost to repaint the exterior of any structures services and the cost costs of any environmental inspections.
(iv) Reserves set aside for maintenance and repair of Common Areas.
(v) Any increase above the Base Real Property Taxes (as defined in Paragraph 910.2(b)) for the Building and the Common Areas.
(vvi) Any "Insurance Cost Increase" (as defined in Paragraph 78.1).
(vivii) The cost of insurance carried by Lessor with respect to the Common Areas.
(viii) Any deductible portion of an insured loss concerning the Building or the Common Areas.
(vii) Auditors', accountants' and attorneys' fees and costs related to the operation, maintenance, repair and replacement of the Project.
(viii) The cost of any capital improvement to the Building or the Project not covered under the provisions of Paragraph 2.3 provided; however, that Lessor shall allocate the cost of any such capital improvement over a 12 year period end Lessee shall not be required to pay more than Lessee's Share of 1/144th of the cost of such capital improvement in any given month. The cost of such improvement shall be capitalized under GAAP and amortized over the useful life of such improvements and the annual amortization shall be deemed an operating expense in each of the calendar years during which the cost of the improvement is amortized.
(ix) The cost of any Any other services to be provided by Lessor that are stated elsewhere in this Lease to be a Common Area Operating Expense.
(b) Any Common Area Operating Expenses and Real Property Taxes that are specifically attributable to the Building or to any other building in the Industrial Center or to the operation, repair and maintenance thereof, shall be allocated entirely to the Building or to such other building. However, any Common Area Operating Expenses and Real Property Taxes that are not specifically attributable to the Building or to any other building or to the operation, repair and maintenance thereof, shall be equitably allocated by Lessor to all buildings in the Industrial Center.
(c) The inclusion of the improvements, facilities and services set forth in Subparagraph 4.2(a) shall not be deemed to impose an obligation upon Lessor to either have said improvements or facilities or to provide those services unless the Industrial Center already has the same, Lessor already provides the services, or Lessor has agreed elsewhere in this Lease to provide the same or some of them.
(d) Lessee's Share of Common Area Operating Expenses shall be payable by Lessee within thirty (30) days after a reasonably detailed statement of actual expenses is presented to Lessee by Lessor At Lessor's option, however, an amount may be estimated by Lessor from time to time of Lessee's Share of annual Common Area Operating Expenses and the same shall be payable monthly or quarterly, as Lessor shall designate, during each 12-month period of the Lease term, on the same day as the Base Rent is due hereunder. Lessor shall deliver to Lessee within sixty (60) days after the expiration of each calendar year a reasonably detailed statement showing Lessee's Share of the actual Common Area Operating Expenses incurred during the preceding year. If Lessee's payments under this Paragraph 4.2
Appears in 1 contract
Samples: Standard Industrial/Commercial Multi Tenant Lease (Supergen Inc)
Common Area Operating Expenses. Lessee shall pay to Lessor during the term hereof, in addition to the Base Rent, Lessee's Share (as specified in Paragraph 1.61.6(b)) of all Common Area Operating Expenses, as hereinafter defined, during each calendar year of the term of this Lease, in accordance with the following provisions:
(a) The following Common Area Operating Expenses" are defined, for purposes of this Lease, as alt costs incurred by Lessor relating to the ownership and operation of the Project are defined as "Common Area Operating Expenses"Project, including, but not limited to, the following:
(i) Costs relating to the The operation, repair and maintenance, in neat, clean, good order and condition, but not the replacement (see subparagraph (e)), of the following:
: (aa) The Common Areas and Common Area improvements, including parking areas, loading and unloading areas, trash areas, roadways, walkways, parkways, walkways, driveways, landscaped areas, bumpers, irrigation systems, Common Area lighting facilities, fences and gates, elevators, roofs, exterior walls of the buildings, building systems roof and roof drainage systems.
, (bb) Exterior signs and any tenant directories.
, (cc) Any fire Fire detection and sprinkler systems.
(dd) All other areas and improvements that are within the exterior boundaries of the Project but outside of the Premises and/or any other space occupied by a tenant.
(ii) The cost of water, gas, electricity and telephone to service the Common Areas and any utilities not separately metered.
(iii) The cost of trash Trash disposal, pest control services, property management, management and security services, owner's association dues and fees, the cost to repaint the exterior of any structures services and the cost costs of any environmental inspections.
(iv) Any increase above the Base Reserves set aside for maintenance and repair of Common Areas.
(v) Real Property Taxes (as defined in Paragraph 910.2)
(vi) The cost of the premiums for the insurance policies maintained by Lessor under Paragraph 8 hereof.
(v) Any "Insurance Cost Increase" (as defined in Paragraph 7).
(vivii) Any deductible portion of an insured loss concerning the Building or the Common Areas.
(vii) Auditors', accountants' and attorneys' fees and costs related to the operation, maintenance, repair and replacement of the Project.
(viii) The cost of any capital improvement Capital Expenditure to the Building or the Project not covered under the provisions of Paragraph 2.3 provided; however, that Lessor shall allocate the cost of any such capital improvement Capital Expenditure over a 12 year reasonable period end and Lessee shall not be required to pay more than Lessee's Share of 1/144th of the cost of such capital improvement Capital Expenditure in any given month. The cost of such improvement shall be capitalized under GAAP and amortized over the useful life of such improvements and the annual amortization shall be deemed an operating expense in each of the calendar years during which the cost of the improvement is amortized.
(ix) The cost of any Any other services to be provided by Lessor that are stated elsewhere in this Lease to be a Common Area Operating Expense. Lessor's Initials Lessees Initials
(b) Any Common Area Operating Expenses and Real Property Taxes that are specifically attributable to the Unit, Building or to any other building in the Project or to the operation, repair and maintenance thereof, shall be allocated entirely to such Unit, Building or other building. However, any Common Area Operating Expenses and Real Property Taxes that are not specifically attributable to the Building or to any other building or to the operation, repair and maintenance thereof, shall be equitably allocated by Lessor to all buildings in the Project.
(c) The inclusion of the improvements, facilities and services set forth in Subparagraph 4.2(a) shall not be deemed to impose an obligation upon Lessor to either have said improvements or facilities or to provide those services unless the Project already has the same, Lessor already provides the services, or Lessor has agreed elsewhere in this Lease to provide the same or some of them.
(d) Lessee's Share of Common Area Operating Expenses shall be payable by Lessee within 10 days after a reasonably detailed statement of actual expenses is presented to Lessee. At Lessor's option, however, an amount may be estimated by Lessor from time to time of Lessee's Share of annual Common Area Operating Expenses and the same shall be payable monthly or quarterly, as Lessor shall designate, during each 12-month period of the Lease term, on the same day as the Base Rent is due hereunder. Lessor will attempt to deliver to Lessee within 60 days after the expiration of each calendar year a reasonably detailed statement showing Lessee's Share of the actual Common Area Operating Expenses incurred during the preceding year. If Lessee's payments under this Paragraph 4.2(d) during said preceding year exceed Lessee's Share as indicated on said statement, Lessee shall be credited the amount of such overpayment against Lessee's Share of Common Area Operating Expenses next becoming due. If Lessee's payments under this Paragraph 4.2(d) during the preceding year were less than Lessee's Share as indicated on such statement, Lessee shall pay to Lessor the amount of the deficiency within 10 days after delivery by Lessor to Lessee of the statement.
Appears in 1 contract
Samples: Standard Industrial/Commercial Multi Tenant Lease (Alldigital Holdings, Inc.)
Common Area Operating Expenses. Subject to the provisions of Section 4.3 below, Lessee shall pay to Lessor during the term hereof, in addition to the Base Rent, Lessee's ’s Share (as specified in Paragraph Section 1.6) of the increase in the total of all Common Area Operating Expenses, as hereinafter defined, over and above the total Common Area Operating Expenses paid by Lessor during Lessee’s Base Year, during each calendar year of the term of this Lease, in accordance with the following provisionsfollowing:
(a) 4.2.1 The following costs relating to the ownership and operation of the Project are defined as "“Common Area Operating Expenses"”:
(ia) Costs directly relating to and reasonably applied to the operation, repair and maintenance, in neat, clean, good order and condition, but not the replacement (see subparagraph (e)), condition of the following:
(aa1) The Common Areas and Common Area improvements, including parking areas, loading and unloading areas, trash areas, roadways, parkways, walkways, driveways, landscaped areas, bumpers, irrigation systems, Common Area lighting facilities, fences and gates, elevators, roofs, exterior walls of the buildings, building systems and roof drainage systems.
(bb2) Exterior signs and any tenant directories.
(cc) Any fire sprinkler systems.
(dd3) All other areas and improvements that are within the exterior boundaries of the Project but outside of the Premises and/or any other space occupied by a tenanttenant provided the same constitute Common Areas.
(iib) The cost of water, gas, electricity and telephone to service the Common Areas and any utilities not separately metered.
(iiic) The cost of trash disposal, pest control services, property management, security services, owner's owners’ association dues and fees, the cost to repaint the exterior of any structures and the cost of any environmental inspections.
(ivd) Reserves set aside for maintenance and repair of Common Areas and Common Area equipment.
(e) Any increase above the Base Real Property Taxes (as defined in Paragraph 9Section 11).
(vf) Any "“Insurance Cost Increase" ” (as defined in Paragraph 7Section 9.1.1).
(vig) Any deductible portion of an insured loss concerning the Building Project or the Common Areas.
(viih) Auditors'Reasonable auditors’, accountants' ’ and attorneys' ’ fees and costs directly related to the operation, maintenance, repair and replacement of the Project.
(viiii) The cost of any capital improvement to the Building or the Project not covered under the provisions of Paragraph 2.3 provided; Section 2.3, provided however, that Lessor shall allocate the cost of any such capital improvement over a 12 year period end Lessee shall not be required to pay more than Lessee's Share of 1/144th monthly amount payable during the remainder of the cost term of this Lease or any extension thereof shall be limited to Lessee’s Share of such capital improvement in any given month. The cost expenditure, multiplied by a fraction, the numerator of such improvement which shall be capitalized under GAAP and amortized over the useful life of such improvements one (1) and the annual amortization denominator of which shall be deemed an operating expense in each the number of the calendar years during months over which the cost of capital expenditure may be depreciated by the improvement is amortizedLessor for income tax purposes.
(ixj) The cost of janitorial services for non-leasable areas.
(k) The costs of professional management, if any, including costs for Lessor’s management, accounting, bookkeeping, payment of Common Area Operating Expenses, collection of reimbursements and related services, which shall not cumulatively exceed four percent (4%) of total Common Area Operating Expenses on an annual basis.
4.2.2 Any Common Area Operating Expenses and Real Property Taxes that are specifically attributable to the Premises, or to any building in the Project or to the operation, repair and maintenance thereof, shall be allocated entirely to such Premises or other services building. However, any Common Area Operating Expenses and Real Property Taxes that are not specifically attributable to any building or to the operation, repair and maintenance thereof, shall be provided equitably allocated by Lessor that are stated to all buildings in the Project. Lessee’s Share for any given year shall be computed as though the Project had been 100% occupied on average during such year.
4.2.3 The inclusion of the improvements, facilities and services set forth in Section 4.2.1 shall not be deemed to impose an obligation upon Lessor to either have said improvements or facilities or to provide those services unless the Project already has the same, Lessor already provides the services, or Lessor has agreed elsewhere in this Lease to be a provide the same or some of them.
4.2.4 Lessee’s Share of Common Area Operating Expense.Expenses exceeding Common Area Operating Expenses incurred and included in Lessee’s Base Year is payable monthly on the same day as the Base Rent is due hereunder. The amount of such payments shall be based on Lessor’s estimate of the annual Common Area Operating Expenses. Within 60 days after the end of each calendar year during the term of this Lease, Lessor shall deliver to Lessee a reasonably detailed statement (i.e. line item description for all Common Area Operating Expenses) showing Lessee’s Share of the actual Common Area Operating Expenses for the preceding year (the “Reconciliation”). If Lessee’s payments during such year exceed Lessee’s Share, Lessor shall credit the amount of such over-payment against Lessee’s future payments. If Lessee’s payments during such year were less than Lessee’s Share, Lessee shall pay to Lessor the amount of the deficiency within 10 business days after delivery by Lessor to Lessee of the statement. In the event of any dispute as to any Lessee’s Share of Common Area Operating Expenses due under this Section 4.2.4, Lessee, an officer of Lessee or Lessee’s certified public accountant who shall have the right after reasonable notice and at reasonable times to inspect Lessor’s accounting records at Lessor’s accounting office (which shall be located in Southern California). If, after such inspection, Lessee still disputes such Lessee’s Share of Common Area Operating Expenses, upon Lessee’s written request therefor, a certification as to the proper amount of Lessee’s Share of Common Area Operating Expenses and the amount due to or payable by Lessee shall be made by an independent (i.e. not utilized by either party within the past three (3) years) certified public accountant mutually agreed to by Lessor and Lessee. If Lessor and Lessee cannot mutually agree to an independent certified public accountant, then each party shall select an independent certified public accountant, who then shall jointly select a third independent certified public accountant (failing which agreement either party may seek a judicial determination of such independent certified public accountant). Each of the three (3) independent certified public accountants shall, within forty-five (45) days after selection make a good faith determination of Lessee’s Share of Common Area Operating Expenses then due and shall notify Lessor, Lessee, and each other independent certified public accountant of such
Appears in 1 contract
Samples: Industrial/Commercial Multi Tenant Lease (Tandem Diabetes Care Inc)
Common Area Operating Expenses. “Common Areas” is defined areas and facilities outside the Premises and within the exterior boundaries of the Project and the interior utility raceways that are provided and designated by Lessor from time to time for the general nonexclusive use of Lessor, Lessee shall pay to Lessor during and other tenants of the term hereofProject and their respective employees, in addition to the Base Rentsuppliers, Lessee's Share (as specified in Paragraph 1.6) of all shippers, customers, contractors and invitees, including parking areas, loading and unloading areas, trash areas, landscaped areas, roadways, sidewalks, walkways, parkways, and driveways. “Common Area Operating Expenses” are defined for purposes of this Lease, as hereinafter defined, all costs incurred by Lessor during each calendar year of the term of this Lease, in accordance with the following provisions:
(a) The following costs relating to the ownership and operation of the Project are defined as "Common Area Operating Expenses":
Project, including but not limited to the following (i) Costs relating to the operation, repair and maintenance, in a neat, clean, good order and condition, but not the replacement (see subparagraph (e)), of the following:
: (aaa) The Common Areas and Common Area improvementsAreas, including parking areas, loading and unloading areas, trash areas, roadways, parkwayssidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, Common Area lighting facilities, fences and fences, gates, elevators, roofs, exterior walls of the buildings, building systems elevators and roof drainage systems.
roof; (bbb) Exterior signs and any tenant directories.
; (ccc) Any fire Fire detection and sprinkler systems.
(dd) All other areas and improvements that are within the exterior boundaries of the Project but outside of the Premises and/or any other space occupied by a tenant.
; (ii) The the cost of water, gas, electricity and telephone service to service the Common Areas and any utilities not separately metered.
Areas; (iii) The cost of trash Trash disposal, pest control services, property management, management and security services, owner's association dues and fees, the cost to repaint the exterior of any structures services and the cost of any environmental inspections.
; (iv) Any increase above the Base reserves set aside for maintenance and repair of Common Areas; (v) Real Property Taxes (as defined in Paragraph 9).
(v) Any "Insurance Cost Increase" (as defined in Paragraph 7).
for the Common Areas; (vi) Any the cost of the premiums for insurance policies maintained by Lessor under the terms of the Lease; (vii) any deductible portion of an insured loss concerning the Building Common Areas. The term “Common Area Operating Expenses” shall also include, without limitation, all costs and expenses incurred by Lessor relating to the following: (i) wages, salaries, payroll burdens and all related expenses and benefits of all on-site and off-site employees engaged in the management, operation and maintenance of the Industrial Center, limiting such charges only to amounts directly allocable to services rendered by the employees for the benefit of the Industrial Center, (ii) all supplies, materials and rental equipment used in connection with the ownership, operation, management and maintenance of the Industrial Center; (iii) the fair market rent of, and the cost to operate, the office of the property manager located in the Industrial Center, if any, to the extent such office is used for the benefit of the Industrial Center; (iv) all costs and expenses levied, incurred or required to be paid, either directly or indirectly, in order to comply with any and all laws, statutes, ordinances, rules and regulations or the Common Areas.
requirements of governmental or public authorities and/or utilities with respect to the Industrial Center, or the operation of the Building by Lessor; (viiv) Auditors'depreciation on personal property located in or used in connection with the Industrial Center, accountants' and attorneys' fees and costs reasonably related to the operation, maintenance, repair expected life of such property; and replacement (vi) amortization of capital improvements made to the Industrial Center by Lessor which are designed to improve the operating efficiency of the Project.
Industrial Center or which are required under any governmental law or regulation applicable to the Industrial Center, with amortization over such period as Lessor shall determine, together with interest thereon at ten percent (viii10%) The cost per annum. Lessor agrees that the property management fee and the maintenance and repair reserve components of Common Area Operating Expenses shall not increase by more than five percent (5%) per year during the Lease Term, compounded annually, over the amount thereof which existed during the first year of the Lease Term. Lessee shall pay to Lessor “Lessees Share of Common Area Operating Expenses”. Lessee’s Share of Common Area Operating Expenses shall be that percentage of all of the buildings in the Project (i.e., 408,502 square feet) represented by the square footage of the Premises entitled to be occupied by Lessee under the terms of this Lease. Since only the ground floor of the Premises will be entitled to be occupied by Lessee in the first year of the Lease Term, Lessee’s Share of Operating Expenses for said year be thirteen and 20/100ths percent (13.20%), based upon the ratio of the Premises (i.e., 53,940 square feet) to the square footage of all of the buildings in which the premises is located (i.e., 408,502 square feet). Lessee’s Share of Operating Expenses shall be increased in the second, third, and fourth years of the Lease Term in reflect the additional square footage comprising the Premises as more fully described in Paragraph 50 of this Lease Addendum. Lessee’s Share of Operating Expenses shall be payable by Lessee within twenty (20) days after a reasonably detailed statement of actual expenses is presented to Lessee. At Lessor’s option, however, an amount may be estimated by Lessor from time to time of Lessee’s Share of Common Area Operating Expenses, and the same shall be payable monthly during each 12-month period of the Lease Term, on the same days as Base Rent is due and payable. Lessor shall deliver to Lessee within one hundred and twenty (120) days after the end of each calendar year a reasonably detailed statement showing the actual expenses incurred during the preceding year. If Lessee’s payments hereunder during said preceding year exceed Lessee’s Share as indicated on said statement, Lessee shall be credited the amount of such overpayment against Lessee’s Share of Common Area Operating Expenses next due and payable: If Lessee’s payments hereunder during the preceding year were less than Lessee’s Share as indicated on said statement, Lessee shall pay to Lessor the amount of the deficiency within twenty (20) days after delivery to Lessee by Lessor of said statement. Notwithstanding any provisions of the Lease to the contrary, in the event of any capital improvement dispute regarding the amount due as Lessee’s pro rata share of Common Area Operating Expenses and/or the amount due as Common Area Operating Expenses, Lessee shall-have-the right, after reasonable notice and at reasonable times, to inspect and photocopy Lessor’s accounting records at Lessor’s office in Orange County relating to such annual statement. If, after such inspection and photocopying, Lessee continues to dispute the amount of Lessee’s Share pro rata share of Common Area Operating Expenses, Lessee shall be entitled to retain a national, independent, certified public accountant to audit and/or review Lessor’s records to determine the proper amount of Lessee s Share pro rata share of Common Area Operating Expenses. If such audit or review reveals that Lessor has overcharged Lessee, then within five (5) days after the results of such audit are made available to Lessor, Lessor shall reimburse Lessee the amount of such overcharge plus interest at the rate specified in Paragraph 13.5 of the Lease (the “Interest Rate”). If the audit reveals that Lessee was undercharged, then within five (5) days after the results of the audit are made available to Lessee, Lessee shall reimburse Lessor the amount of such undercharge plus interest thereon at the Interest Rate. If Lessor desires to contest such audit results, Lessor may do so by submitting the results of the audit to arbitration in Orange County, California, pursuant to the Building or Commercial Arbitration Rules of the Project not covered under American Arbitration Association within five (5) days of receipt of the provisions results of Paragraph 2.3 provided; howeverthe audit, that and the arbitration shall be final and binding upon Lessor shall allocate the cost of any such capital improvement over a 12 year period end and Lessee. Lessee shall not be required agrees to pay more than Lessee's Share of 1/144th of the cost of such capital improvement audit, provided that, if the audit reveals that Lessor’s determination of Lessee’s Percentage Share of Common Area Operating Expenses as set forth in any given month. The statement submitted pursuant to this Paragraph 77 (“Actual Statement”) sent to Lessee was in error in Lessor’s favor by more than five percent (5%), Lessor shall pay the cost of such improvement audit. Lessor shall be capitalized under GAAP required to maintain records of all Common Area Operating Expenses and amortized over the useful life other Rent Adjustments for a one-year period (“Review Period”) following Lessor’s delivery to Lessee of such improvements and the annual amortization shall be deemed an operating expense in each Actual Statement setting forth Lessee’s Share of the calendar years during which the cost of the improvement is amortized.
(ix) Common Area Operating Expenses. The cost payment by Lessee of any other services amounts pursuant to be this Paragraph shall not preclude Lessee from questioning the correctness of any Actual Statement provided by Lessor that are stated elsewhere in this Lease at any time during the Review Period, but the failure of Lessee to object thereto prior to the expiration of the Review Period shall be a Common Area Operating Expenseconclusively deemed Lessee’s approval of the Actual Statement.
Appears in 1 contract
Samples: Sublease Agreement (Masimo Corp)
Common Area Operating Expenses. Lessee shall pay to Lessor during the term hereof, in addition to the Base Rent, Lessee's Share (as specified in Paragraph 1.61.6(b)) of all Common Area Operating Expenses, as hereinafter defined, during each calendar year of the term of this Lease, Lease in accordance with the following provisions:
(a) The following Common Area Operating Expenses" are defined, for purposes of this Lease, as all costs incurred by Lessor relating to the ownership and operation of the Project are defined as "Common Area Operating Expenses"Industrial Center, including, but not limited to the following:
(i) Costs relating to the The operation, repair and maintenance, in neat, clean, good order and condition, but not the replacement (see subparagraph (e)), condition of the following:
(aa) The Common Areas and Common Area improvementsAreas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways parkways, walkways, driveways, landscaped areas, striping, bumpers, irrigation systems, Common Area lighting facilities, fences and gates, elevators, roofs, exterior walls of the buildings, building systems elevators and roof drainage systemsroof.
(bb) Exterior signs and any tenant directories.
(cc) Any fire Fire detection and sprinkler systems.
(dd) All other areas and improvements that are within the exterior boundaries of the Project but outside of the Premises and/or any other space occupied by a tenant.
(ii) The cost of water, gas, electricity and telephone to service the Common Areas and any utilities not separately meteredAreas.
(iii) The cost of trash Trash disposal, pest control services, property management, management and security services, owner's association dues and fees, the cost to repaint the exterior of any structures services and the cost costs of any environmental inspections.
(iv) Any increase above the Base Reserves set aside for maintenance and repair of Common Areas.
(v) Real Property Taxes (as defined in Paragraph 9).
(v10.2) Any "Insurance Cost Increase" (as defined in to be paid by Lessor for the Premises and the Common Areas under Paragraph 7)10 hereof.
(vi) The costs of the premiums for the insurance policies maintained by Lessor under Paragraph 8 hereof.
(vii) Any deductible portion of an insured loss concerning the Building Premises or the Common Areas.
(vii) Auditors', accountants' and attorneys' fees and costs related to the operation, maintenance, repair and replacement of the ProjectArea.
(viii) The cost of any capital improvement to the Building or the Project not covered under the provisions of Paragraph 2.3 provided; however, that Lessor shall allocate the cost of any such capital improvement over a 12 year period end Lessee shall not be required to pay more than Lessee's Share of 1/144th of the cost of such capital improvement in any given month. The cost of such improvement shall be capitalized under GAAP and amortized over the useful life of such improvements and the annual amortization shall be deemed an operating expense in each of the calendar years during which the cost of the improvement is amortized.
(ix) The cost of any Any other services to be provided by Lessor that are stated elsewhere in this Lease to be a Common Area Operating Expense.
(ix) Property management fees.
Appears in 1 contract
Samples: Lease Agreement (Qad Inc)
Common Area Operating Expenses. Lessee shall pay to Lessor during the term hereof, in addition Notwithstanding anything to the Base Rentcontrary contained in this Lease, Lessee's Share (as specified in Paragraph 1.6) of all the following shall not be included within Common Area Operating Expenses, as hereinafter defined, during each calendar year : Any depreciation on the Building or Property. Costs of a capital nature involving replacement of the term roof, foundation, structural members, load-bearing walls, or building systems; provided, however, that Lessee shall be responsible for replacement of the HVAC system serving the Premises, if required during the first ten (10) years of the Lease term. If replacement of the HVAC system is required thereafter, the cost thereof shall be borne by Landlord, and Landlord shall be entitled to include in Common Area Operating Expenses annually an amount equal to one year's amortized cost of such replacement HVAC, amortized over an anticipated ten year useful life. Such amortization shall be at ten percent (10%). Costs incurred due to Lessor's violation of any terms or conditions of this Lease, in accordance with the following provisions:
(a) The following costs relating . Overhead profit increments paid to Lessor's subsidiaries or affiliates for management or other services on or to the ownership and operation building or for supplies or other materials to the extent that the cost of the Project are defined as "services, supplies, or materials exceeds the cost that would have been paid had the services, supplies, or materials been provided by unaffiliated parties on a competitive basis. All interest, loan fees, and other carrying costs related to any mortgage or deed of trust or related to any capital item, and all rental and other payable due under any ground or underlying lease, or any lease for any equipment ordinarily considered to be of a capital nature (except janitorial equipment which is not affixed to the Building.) Costs of repairs and other work occasioned by fire, windstorm, or other casualty of an insurable nature (but not including deductibles paid by Landlord for insured losses). In no event, however, shall Common Area Operating Expenses":
(i) Costs relating include the amount of any deductibles paid with respect to any loss covered by earthquake coverage, where such deductible exceeds twenty-five thousand dollars. Any costs, fines, or penalties incurred due to violations by Lessor of any governmental rule or authority, this Lease or any other lease in the Property, or due to Lessor's negligence or willful misconduct. Management costs to the operation, repair and maintenance, in neat, clean, good order and condition, but not the replacement (see subparagraph (e)), extent they exceed 5% of the following:
(aa) The Common Areas and Common Area improvements, including parking areas, loading and unloading areas, trash areas, roadways, parkways, walkways, driveways, landscaped areas, bumpers, irrigation systems, Common Area lighting facilities, fences and gates, elevators, roofs, exterior walls of the buildings, building systems and roof drainage systems.
(bb) Exterior signs and any tenant directories.
(cc) Any fire sprinkler systems.
(dd) All other areas and improvements that are within the exterior boundaries of the Project but outside of the Premises and/or any other space occupied by a tenant.
(ii) The cost of water, gas, electricity and telephone to service the Common Areas and any utilities not separately metered.
(iii) The cost of trash disposal, pest control services, property management, security services, owner's association dues and fees, the cost to repaint the exterior of any structures and the cost of any environmental inspections.
(iv) Any increase above the Base Real Property Taxes (as defined in Paragraph 9).
(v) Any "Insurance Cost Increase" (as defined in Paragraph 7).
(vi) Any deductible portion of an insured loss concerning the Building or the Common Areas.
(vii) Auditors', accountants' and attorneys' fees and costs related to the operation, maintenance, repair and replacement of the Project.
(viii) The cost of any capital improvement to the Building or the Project not covered under the provisions of Paragraph 2.3 provided; however, that Lessor shall allocate the cost of any such capital improvement over a 12 year period end Lessee shall not be required to pay more than Lessee's Share of 1/144th of the cost of such capital improvement in any given monthAnnual Rent. The cost of such improvement shall be capitalized under GAAP and amortized over correcting any building code or other violations which were violations prior to the useful life of such improvements and the annual amortization shall be deemed an operating expense in each of the calendar years during which the cost of the improvement is amortized.
(ix) Commencement Date. The cost of containing, removing, or otherwise remediating any other services to be provided contamination of the Property (including the underlying land and ground water) by Lessor that are stated elsewhere in this Lease to be a Common Area Operating Expenseany toxic or hazardous materials (including, without limitation, asbestos and "PCB's") where such contamination was not caused by Lessee or any of its agents, employees, contractors or invitees.
Appears in 1 contract
Samples: Lease Agreement (Homestead Com Inc)
