Common use of Definition of Project Costs Clause in Contracts

Definition of Project Costs. The term “Project Costs” means all costs and expenses incurred by Landlord or Landlord’s Agents in connection with the operation of the Building, including, but not limited to, the following: repair and maintenance of the roof, structural frame, foundation and exterior walls of the Building, periodic painting of the Building, periodic cleaning of the exterior windows of the Building, landscaping services, outside pest control, normal maintenance and repair of the HVAC through maintenance contracts or otherwise, sweeping, maintenance services, repairs to and replacement of asphalt paving, bumpers, striping, light bulbs, light standards, monument and directional signs and lighting systems, perimeter walls, retaining walls, sidewalks, planters, landscaping and sprinkler system in planting area, any and all assessments levied against the Building pursuant to the Restrictions, water, electrical and other utility services not supplied directly to a tenant, removal of trash, rubbish and other refuse from the Building, cleaning of and replacement of signs of the Building not reimbursed directly by a tenant, including re-xxxxxxx and repairs made as required; repair, operation and maintenance of the Common Area, including, but not limited to, removal of any obstructions not reasonably required for the Common Area uses, prohibition and removal of the sale or display of merchandise or the storing of materials and/or equipment in the Common Area, and payment of all electrical, water and other utility charges or fees for services furnished to the Common Area; obtaining and maintaining public liability, property damage and other forms of insurance which Landlord may or is required to maintain in connection with the Building (including the payment of any deductibles thereunder); costs incurred in connection with compliance of Applicable Laws, including, without limitation, any Applicable Laws or changes in Applicable Laws regarding Hazardous Materials; establishment of reasonable reserves for replacements and/or repair of Common Area improvements, equipment and supplies; employment of such personnel as Landlord may deem reasonably necessary, if any, to police the Common Area and facilities; the cost of any capital improvements (other than tenant improvements for specific tenants) made by or on behalf of Landlord to the Building or Common Area to the extent of the amortized amount thereof the useful life of such capital improvements calculated at a market cost of funds, as reasonably determined by Landlord, for each year of the applicable amortization period during the Term; depreciation of machinery and equipment used in connection with the maintenance and operation of the Common Area for which a reasonable reserve has not been established as herein provided; employment of personnel used in connection with any of the foregoing, including, but not limited to, payment or provision for unemployment insurance, worker’s compensation insurance and other employee costs; the cost of bookkeeping, accounting and auditing and legal services provided in connection with any of the foregoing; the cost of any tax, insurance or other consultant utilized in connection with the Property; and any other items reasonably necessary from time to time to properly repair, replace, maintain and operate the Property or Building. Project Costs shall also include a management fee to cover Landlord’s management, overhead and administrative expenses; provided, however, if Landlord elects to delegate its duties hereunder to a professional property manager, then Project Costs shall not include any management fee to Landlord but under such circumstances any amounts paid to the professional property manager shall be added to and deemed a part of Project Costs (provided, however, that in no event shall the management fee paid directly to Landlord or Landlord’s property manager exceed four percent (4%) of gross rents for the Building). If Landlord elects to perform any maintenance or repair herein described in conjunction with properties other than the Property, and if a common maintenance contractor is contracted with for such purpose, the contract amount allocable to the Property, as reasonably determined by Landlord, shall be added to and deemed a part of Project Costs hereunder, subject to the limitation in the previous sentence. Project Costs shall also include any costs, expenses and other charges levied or charged against Landlord and/or the Property by under the Restrictions. Increases in Project Costs by reason of a disproportionate impact by Tenant thereon (for example, and not by way of limitation, increases in costs of trash collection because of Tenant’s excessive generation of trash or increases in costs of Common Area maintenance because of Tenant’s unpermitted storage of inventory or materials in the Common Area), in Landlord’s reasonable judgment, may be billed by Landlord, as an item of Additional Rent, directly to Tenant. .Notwithstanding the foregoing, Operating Expenses shall not include: (i) the cost of capital improvements or other capital expenditures to the Project unless such capital costs or expenditures are made to (a) reduce the normal annual operating costs of the Project, or (b) comply with applicable laws, statutes, rules, regulations or ordinances enacted or promulgated by any governmental authority after the Commencement Date, (ii) costs incurred in the leasing of any portion of the Project, including brokerage fees, marketing costs and tenant improvement costs, (iii) depreciation and amortization, (iv) interest and principal payments on mortgages and other debt costs, (v) costs for which Landlord is reimbursed by insurance, warranty, or any tenant or other third party, (vi) costs associated with the operation of the business of the entity that constitutes Landlord (as distinguished from the costs of operation of the Building and the Property, (vii) ground rents, (viii) costs arising from the gross negligence or willful misconduct of Landlord or its agents, employees or contractors in connection with this Lease, (ix) costs to correct any construction defect in the Building or to remedy any violation of any covenant, condition, restriction, or law that exists as of the Commencement Date, (x) costs incurred to comply with laws relating to removal or remediation of Hazardous Materials from the Building or the Property and any costs of fines or penalties related thereto, in each case to the extent not brought onto the Premises, the Building or the Property by Tenant, (xi) legal fees and accountants’ fees incurred in connection with disputes with tenants or associated with the enforcement of the terms of any leases with tenants, (xii) capital cost occasioned by casualties or condemnation, (xiii) any bad debt loss, rent loss or reserved for bad debt or rent loss not used in the same year; (xiv) the wages of any employee who does not devote substantially all of his or her employed time at the Property unless such wages and benefits are prorated to reflect time spent on operating and managing the Property versus time spent on unrelated matters; (xv) costs incurred due to the violation by Landlord or any other tenant of the Building or the terms of a Lease; or (xvi) costs incurred in connection with the construction of any additional buildings or structures on the Property.

Definition of Project Costs. The term “"Project Costs” " means all costs and expenses incurred by Landlord or Landlord’s 's Agents in connection with the operation of the BuildingProject, including, but not limited to, the following: repair and maintenance of the roof, structural frame, foundation and exterior walls of the Buildingbuildings in the Project, periodic painting of the Buildingbuildings in the Project, periodic cleaning of the exterior windows of the Buildingbuildings in the Project, landscaping services, outside pest control, normal maintenance and repair of the HVAC through maintenance contracts or otherwise, sweeping, maintenance services, repairs to and replacement of asphalt paving, bumpers, striping, light bulbs, light standards, monument and directional signs and lighting systems, perimeter walls, retaining walls, sidewalks, planters, landscaping and sprinkler system in planting area, any and all assessments levied against the Building Project pursuant to the Restrictions, water, electrical and other utility services not supplied directly to a tenant, removal of trash, rubbish and other refuse from the BuildingProject, cleaning of and replacement of signs of the Building not reimbursed directly by a tenantProject, including re-xxxxxxx relamping and repairs made as required; repair, operation and maintenance of the Common Area, including, but not limited to, removal of any obstructions not reasonably required for the Common Area uses, prohibition and removal of the sale or display of merchandise or the storing of materials and/or equipment in the Common Area, and payment of all electrical, water and other utility charges or fees for services furnished to the Common Area; obtaining and maintaining public liability, property damage and other forms of insurance which Landlord may or is required to maintain in connection with the Building Project (including the payment of any deductibles thereunder); costs incurred in connection with compliance of Applicable Laws, including, without limitation, any Applicable Laws laws or changes in Applicable Laws laws applicable to the Project, excepting any laws or changes in laws regarding Hazardous Materials; establishment of reasonable reserves for replacements and/or repair of Common Area improvements, equipment and supplies; employment of such personnel as Landlord may deem reasonably necessary, if any, to direct parking and police the Common Area and facilities; the cost of any capital improvements (other than tenant improvements for specific tenants) made by or on behalf of Landlord to the Building Project or Common Area to the extent of the amortized amount thereof over the useful life of such capital improvements calculated at a market cost of funds, all as reasonably determined by Landlord, for each such year of the applicable amortization period useful life during the Term; depreciation of machinery and equipment used in connection with the maintenance and operation of the Common Area for which a reasonable reserve has not been established as herein provided; employment of personnel used in connection with any of the foregoing, including, but not limited to, payment or provision for unemployment insurance, worker’s 's compensation insurance and other employee costs; the cost of bookkeeping, accounting and auditing and legal services provided in connection with any of the foregoing; the cost of any tax, insurance or other consultant utilized in connection with the PropertyProject; and any other items reasonably necessary from time to time to properly repair, replace, maintain and operate the Property or BuildingProject. Project Costs shall also include a management fee to cover Landlord’s 's management, overhead and administrative expenses; provided, however, if Landlord elects to delegate its duties hereunder to a professional property manager, then Project Costs shall not include any management fee to Landlord (except for any costs and/or administrative and overhead expenses reasonably incurred by Landlord in monitoring and auditing the performance delegated to the professional property manager), but under such circumstances any reasonable amounts paid to the professional property manager shall be added to and deemed a part of Project Costs (provided, however, that in no event shall the management fee paid directly to Landlord or Landlord’s property manager exceed four percent (4%) of gross rents for the Building)Costs. If Landlord elects to perform any maintenance or repair herein described in conjunction with properties other than the PropertyProject, and if a common maintenance contractor is contracted with for such purpose, the contract amount allocable to the PropertyProject, as reasonably determined by Landlord, shall be added to and deemed a part of Project Costs hereunder, subject to the limitation in the previous sentence. Project Costs shall also include any costs, expenses and other charges levied or charged against Landlord and/or the Property by under the Restrictions. Increases in Project Costs by reason of a disproportionate impact by Tenant thereon (for example, and not by way of limitation, increases in costs of trash collection because of Tenant’s 's excessive generation of trash or increases in costs of Common Area maintenance because of Tenant’s 's unpermitted storage of inventory or materials in the Common Area), in In Landlord’s 's reasonable judgment, may be billed by Landlord, as an item of Additional Rent, directly to Tenant. .Notwithstanding the foregoing, Operating Expenses shall not include: (i) the cost of capital improvements or other capital expenditures to the Project unless such capital costs or expenditures are made to (a) reduce the normal annual operating costs of the Project, or (b) comply with applicable laws, statutes, rules, regulations or ordinances enacted or promulgated by any governmental authority after the Commencement Date, (ii) costs incurred in the leasing of any portion of the Project, including brokerage fees, marketing costs and tenant improvement costs, (iii) depreciation and amortization, (iv) interest and principal payments on mortgages and other debt costs, (v) costs for which Landlord is reimbursed by insurance, warranty, or any tenant or other third party, (vi) costs associated with the operation of the business of the entity that constitutes Landlord (as distinguished from the costs of operation of the Building and the Property, (vii) ground rents, (viii) costs arising from the gross negligence or willful misconduct of Landlord or its agents, employees or contractors in connection with this Lease, (ix) costs to correct any construction defect in the Building or to remedy any violation of any covenant, condition, restriction, or law that exists as of the Commencement Date, (x) costs incurred to comply with laws relating to removal or remediation of Hazardous Materials from the Building or the Property and any costs of fines or penalties related thereto, in each case to the extent not brought onto the Premises, the Building or the Property by Tenant, (xi) legal fees and accountants’ fees incurred in connection with disputes with tenants or associated with the enforcement of the terms of any leases with tenants, (xii) capital cost occasioned by casualties or condemnation, (xiii) any bad debt loss, rent loss or reserved for bad debt or rent loss not used in the same year; (xiv) the wages of any employee who does not devote substantially all of his or her employed time at the Property unless such wages and benefits are prorated to reflect time spent on operating and managing the Property versus time spent on unrelated matters; (xv) costs incurred due to the violation by Landlord or any other tenant of the Building or the terms of a Lease; or (xvi) costs incurred in connection with the construction of any additional buildings or structures on the Property.

Definition of Project Costs. The term “Project Costs” means all costs and expenses incurred by Landlord or Landlord’s Agents in connection with the operation of the BuildingProject, including, but not limited to, the following: repair and maintenance of the roof, structural frame, foundation and exterior walls of the Buildingbuildings in the Project, periodic painting of the Buildingbuildings in the Project, periodic cleaning of the exterior windows of the Buildingbuildings in the Project, landscaping services, outside pest control, normal maintenance and repair of the HVAC through maintenance contracts or otherwiseotherwise (but not including repair and maintenance of any Specialized HVAC unless Landlord elects to maintain the same pursuant to Section 9.2), sweeping, maintenance services, repairs to and replacement of asphalt paving, bumpers, striping, light bulbs, light standards, monument and directional signs and lighting systems, perimeter walls, retaining walls, sidewalks, planters, landscaping and sprinkler system in planting area, any and all assessments levied against the Building Project pursuant to the Restrictions, water, electrical and other utility services not supplied directly to a tenant, removal of trash, rubbish and other refuse from the BuildingProject, cleaning of and replacement of signs of the Building not reimbursed directly by a tenantProject, including re-xxxxxxx relamping and repairs made as required; repair, operation and maintenance of the Common Area, including, but not limited to, removal of any obstructions not reasonably required for the Common Area uses, prohibition and removal of the sale or display of merchandise or the storing of materials and/or equipment in the Common Area, and payment of all electrical, water and other utility charges or fees for services furnished to the Common Area; obtaining and maintaining public liability, property damage and other forms of insurance which Landlord may or is required to maintain in connection with the Building Project (including the payment of any deductibles thereunder); costs incurred in connection with compliance of any Applicable Laws or changes in Applicable Laws, including, without limitation, any Applicable Laws laws or changes in Applicable Laws laws regarding Hazardous Materials; establishment of reasonable reserves for replacements and/or repair of Common Area improvements, equipment and supplies; employment of such personnel as Landlord may deem reasonably necessary, if any, to direct parking and police the Common Area and facilities; the cost of any capital improvements (other than tenant improvements for specific tenants) made by or on behalf of Landlord to the Building Project or Common Area to the extent of the amortized amount thereof over the lesser of (i) the useful life of such capital improvements improvements, and (ii) twelve (12) years, in either case, calculated at a market cost of funds, all as reasonably determined by Landlord, for each year of the applicable amortization period during the Term; depreciation of machinery and equipment used in connection with the maintenance and operation of the Common Area for which a reasonable reserve has not been established as herein provided; employment of personnel used in connection with any of the foregoing, including, but not limited to, payment or provision for unemployment insurance, worker’s compensation insurance and other employee costs; the cost of bookkeeping, accounting and auditing and legal services provided in connection with any of the foregoing; the cost of any environmental consultant or other services used in connection with Landlord’s monitoring of the Project with respect to Hazardous Materials; the cost of any tax, insurance or other consultant utilized in connection with the PropertyProject; and any other items reasonably necessary from time to time to properly repair, replace, maintain and operate the Property or BuildingProject. Project Costs shall also include a management fee to cover Landlord’s management, overhead and administrative expenses; provided, provided however, if Landlord elects to delegate its duties hereunder to a professional property manager, then Project Costs shall not include any management fee to Landlord (except for any costs and/or administrative and overhead expenses reasonably incurred by Landlord in monitoring and auditing the performance delegated to the professional property manager), but under such circumstances any reasonable amounts paid to the professional property manager shall be added to and deemed a part of Project Costs (provided, however, that in no event shall the management fee paid directly to Landlord or Landlord’s property manager exceed four percent (4%) of gross rents for the Building)Costs. If Landlord elects to perform any maintenance or repair herein described in conjunction with properties other than the PropertyProject, and if a common maintenance contractor is contracted with for such purpose, the contract amount allocable to the PropertyProject, as reasonably determined by Landlord, shall be added to and deemed a part of Project Costs hereunder, subject to the limitation in the previous sentence. Project Costs shall also include any costs, expenses and other charges levied or charged against Landlord and/or the Property Project by under the Restrictions. Increases in Project Costs by reason of a disproportionate impact by Tenant thereon (for example, and not by way of limitation, increases in costs of trash collection because of Tenant’s excessive generation of trash or increases in costs of Common Area maintenance because of Tenant’s unpermitted storage of inventory or materials in the Common Area), in Landlord’s reasonable judgment, may be billed by Landlord, as an item of Additional Rent, directly to Tenant. .Notwithstanding the foregoing, Operating Expenses shall not include: (i) the cost of capital improvements or other capital expenditures to the Project unless such capital costs or expenditures are made to (a) reduce the normal annual operating costs of the Project, or (b) comply with applicable laws, statutes, rules, regulations or ordinances enacted or promulgated by any governmental authority after the Commencement Date, (ii) costs incurred in the leasing of any portion of the Project, including brokerage fees, marketing costs and tenant improvement costs, (iii) depreciation and amortization, (iv) interest and principal payments on mortgages and other debt costs, (v) costs for which Landlord is reimbursed by insurance, warranty, or any tenant or other third party, (vi) costs associated with the operation of the business of the entity that constitutes Landlord (as distinguished from the costs of operation of the Building and the Property, (vii) ground rents, (viii) costs arising from the gross negligence or willful misconduct of Landlord or its agents, employees or contractors in connection with this Lease, (ix) costs to correct any construction defect in the Building or to remedy any violation of any covenant, condition, restriction, or law that exists as of the Commencement Date, (x) costs incurred to comply with laws relating to removal or remediation of Hazardous Materials from the Building or the Property and any costs of fines or penalties related thereto, in each case to the extent not brought onto the Premises, the Building or the Property by Tenant, (xi) legal fees and accountants’ fees incurred in connection with disputes with tenants or associated with the enforcement of the terms of any leases with tenants, (xii) capital cost occasioned by casualties or condemnation, (xiii) any bad debt loss, rent loss or reserved for bad debt or rent loss not used in the same year; (xiv) the wages of any employee who does not devote substantially all of his or her employed time at the Property unless such wages and benefits are prorated to reflect time spent on operating and managing the Property versus time spent on unrelated matters; (xv) costs incurred due to the violation by Landlord or any other tenant of the Building or the terms of a Lease; or (xvi) costs incurred in connection with the construction of any additional buildings or structures on the Property.

Definition of Project Costs. The term “"Project Costs” " means all costs and expenses incurred by Landlord or Landlord’s 's Agents in connection with the operation of the Building, including, but not limited to, the following: repair and maintenance of the roof, structural frame, foundation and exterior walls of the Building, periodic painting of the Building, periodic cleaning of the exterior windows of the Building, landscaping services, outside pest control, normal maintenance and repair of the HVAC through maintenance contracts or otherwise, sweeping, maintenance services, repairs to and replacement of asphalt paving, bumpers, striping, light bulbs, light standards, monument and directional signs and lighting systems, perimeter walls, retaining walls, sidewalks, planters, landscaping and sprinkler system in planting area, any and all assessments levied against the Building pursuant to the Restrictions, water, electrical and other utility services not supplied directly to a tenant, removal of trash, rubbish and other refuse from the Building, cleaning of and replacement of signs of the Building not reimbursed directly by a tenantBuilding, including re-xxxxxxx relamping and repairs made as required; repair, operation and maintenance of the Common Area, including, but not limited to, removal of any obstructions not reasonably required for the Common Area uses, prohibition and removal of the sale or display of merchandise or the storing of materials and/or equipment in the Common Area, and payment of all electrical, water and other utility charges or fees for services furnished to the Common Area; obtaining and maintaining public liability, property damage and other forms of insurance which Landlord may or is required to maintain in connection with the Building (including the payment of any deductibles thereunder); costs incurred in connection with compliance of with Applicable Laws, including, without limitation, any Applicable Laws or changes in Applicable Laws regarding Hazardous Materials; establishment of reasonable reserves for replacements and/or repair of Common Area improvements, equipment and supplies; employment of such personnel as Landlord may deem reasonably necessary, if any, to police the Common Area and facilities; the cost of any capital improvements (other than tenant improvements for specific tenants) made by or on behalf of Landlord to the Building or Common Area to the extent of the amortized amount thereof over the lesser of (i) the useful life of such capital improvements or (ii) ten (10 years, in either case, calculated at a market cost of funds, all as reasonably determined by Landlord, for each year of the applicable amortization period during the Term; depreciation of machinery and equipment used in connection with the maintenance and operation of the Common Area for which a reasonable reserve has not been established as herein provided; employment of personnel used in connection with any of the foregoing, including, but not limited to, payment or provision for unemployment insurance, worker’s 's compensation insurance and other employee costs; the cost of bookkeeping, accounting and auditing and legal services provided in connection with any of the foregoing; the cost of any environmental consultant or other services used in connection with Landlord's monitoring of the Property with respect to Hazardous Materials; the cost of any tax, insurance or other consultant utilized in connection with the Property; and any other items reasonably necessary from time to time to properly repair, replace, maintain and operate the Property or Building. Project Costs shall also include a management fee to cover Landlord’s 's management, overhead and administrative expenses; provided, provided however, if Landlord elects to delegate its duties hereunder to a professional property manager, then Project Costs shall not include any management fee to Landlord (except for any costs and/or administrative and overhead expenses reasonably incurred by Landlord in monitoring and auditing the performance delegated to the professional property manager), but under such circumstances any reasonable amounts paid to the professional property manager shall be added to and deemed a part of Project Costs (provided, however, that in no event shall the management fee paid directly to Landlord or Landlord’s property manager exceed four percent (4%) of gross rents for the Building)Costs. If Landlord elects to perform any maintenance or repair herein described in conjunction with properties other than the Property, and if a common maintenance contractor is contracted with for such purpose, the contract amount allocable to the Property, as reasonably determined by Landlord, shall be added to and deemed a part of Project Costs hereunder, subject to the limitation in the previous sentence. Project Costs shall also include any costs, expenses and other charges levied or charged against Landlord and/or the Property by or under the Restrictions. Increases in Project Costs by reason of a disproportionate impact by Tenant thereon (for example, and not by way of limitation, increases in costs of trash collection because of Tenant’s 's excessive generation of trash or increases in costs of Common Area maintenance because of Tenant’s 's unpermitted storage of inventory or materials in the Common Area), in Landlord’s 's reasonable judgment, may be billed by Landlord, as an item of Additional Rent, directly to Tenant. .Notwithstanding the foregoing, Operating Expenses shall not include: (i) the cost of capital improvements or other capital expenditures to the Project unless such capital costs or expenditures are made to (a) reduce the normal annual operating costs of the Project, or (b) comply with applicable laws, statutes, rules, regulations or ordinances enacted or promulgated by any governmental authority after the Commencement Date, (ii) costs incurred in the leasing of any portion of the Project, including brokerage fees, marketing costs and tenant improvement costs, (iii) depreciation and amortization, (iv) interest and principal payments on mortgages and other debt costs, (v) costs for which Landlord is reimbursed by insurance, warranty, or any tenant or other third party, (vi) costs associated with the operation of the business of the entity that constitutes Landlord (as distinguished from the costs of operation of the Building and the Property, (vii) ground rents, (viii) costs arising from the gross negligence or willful misconduct of Landlord or its agents, employees or contractors in connection with this Lease, (ix) costs to correct any construction defect in the Building or to remedy any violation of any covenant, condition, restriction, or law that exists as of the Commencement Date, (x) costs incurred to comply with laws relating to removal or remediation of Hazardous Materials from the Building or the Property and any costs of fines or penalties related thereto, in each case to the extent not brought onto the Premises, the Building or the Property by Tenant, (xi) legal fees and accountants’ fees incurred in connection with disputes with tenants or associated with the enforcement of the terms of any leases with tenants, (xii) capital cost occasioned by casualties or condemnation, (xiii) any bad debt loss, rent loss or reserved for bad debt or rent loss not used in the same year; (xiv) the wages of any employee who does not devote substantially all of his or her employed time at the Property unless such wages and benefits are prorated to reflect time spent on operating and managing the Property versus time spent on unrelated matters; (xv) costs incurred due to the violation by Landlord or any other tenant of the Building or the terms of a Lease; or (xvi) costs incurred in connection with the construction of any additional buildings or structures on the Property.

Definition of Project Costs. The term “Project Costs” means all costs and expenses incurred by Landlord or Landlord’s Agents in connection with the operation of the Building, including, but not limited to, the following: repair and maintenance of the roof, structural frame, foundation and exterior walls of the Building, periodic painting of the Building, periodic cleaning of the exterior windows of the Building, landscaping services, outside pest control, normal maintenance and repair of the HVAC through maintenance contracts or otherwise, sweeping, maintenance services, repairs to and replacement of asphalt paving, bumpers, striping, light bulbs, light standards, monument and directional signs and lighting systems, perimeter walls, retaining walls, sidewalks, planters, landscaping and sprinkler system in planting area, any and all assessments levied against the Building pursuant to the Restrictions, water, electrical and other utility services not supplied directly to a tenant, removal of trash, rubbish and other refuse from the Building, cleaning of and replacement of signs of the Building not reimbursed directly by a tenantBuilding, including re-xxxxxxx relamping and repairs made as required; repair, operation and maintenance of the Common Area, including, but not limited to, removal of any obstructions not reasonably required for the Common Area uses, prohibition and removal of the sale or display of merchandise or the storing of materials and/or equipment in the Common Area, and payment of all electrical, water and other utility charges or fees for services furnished to the Common Area; obtaining and maintaining public liability, property damage and other forms of insurance which Landlord may or is required to maintain in connection with the Building (including the payment of any deductibles thereunder); costs incurred in connection with compliance of with Applicable Laws, including, without limitation, any Applicable Laws or changes in Applicable Laws regarding Hazardous Materials; establishment of reasonable reserves for replacements and/or repair of Common Area improvements, equipment and supplies; employment of such personnel as Landlord may deem reasonably necessary, if any, to police the Common Area and facilities; the cost of any capital improvements (other than tenant improvements for specific tenants) made by or on behalf of Landlord to the Project, Building or Common Area to the extent of the amortized amount thereof over the lesser of (i) the useful life of such capital improvements or (ii) five (5) years, in either case, calculated at a market cost of funds, all as reasonably determined by Landlord, for each year of the applicable amortization period during the Term; depreciation of machinery and equipment used in connection with the maintenance and operation of the Common Area for which a reasonable reserve has not been established as herein provided; employment of personnel used in connection with any of the foregoing, including, but not limited to, payment or provision for unemployment insurance, worker’s compensation insurance and other employee costs; the cost of bookkeeping, accounting and auditing and legal services provided in connection with any of the foregoing; the cost of any environmental consultant or other services used in connection with Landlord’s monitoring of the Property with respect to Hazardous Materials; the cost of any tax, insurance or other consultant utilized in connection with the Property; and any other items reasonably necessary from time to time to properly repair, replace, maintain and operate the Property or Building. Project Costs shall also include a management fee to cover Landlord’s management, overhead and administrative expenses; provided, provided however, if Landlord elects to delegate its duties hereunder to a professional property manager, then Project Costs shall not include any management fee to Landlord (except for any costs and/or administrative and overhead expenses reasonably incurred by Landlord in monitoring and auditing the performance delegated to the professional property manager), but under such circumstances any reasonable amounts paid to the professional property manager shall be added to and deemed a part of Project Costs (provided, however, that in no event shall the management fee paid directly to Landlord or Landlord’s property manager exceed four percent (4%) of gross rents for the Building)Costs. If Landlord elects to perform any maintenance or repair herein described in conjunction with properties other than the Property, and if a common maintenance contractor is contracted with for such purpose, the contract amount allocable to the Property, as reasonably determined by Landlord, shall be added to and deemed a part of Project Costs hereunder, subject to the limitation in the previous sentence. Project Costs shall also include any costs, expenses and other charges levied or charged against Landlord and/or the Property by or under the Restrictions. Increases in Project Costs by reason of a disproportionate impact by Tenant thereon (for example, and not by way of limitation, increases in costs of trash collection because of Tenant’s excessive generation of trash or increases in costs of Common Area maintenance because of Tenant’s unpermitted storage of inventory or materials in the Common Area), in Landlord’s reasonable judgment, may be billed by Landlord, as an item of Additional Rent, directly to Tenant. .Notwithstanding the foregoing, Operating Expenses shall If Landlord is not include: furnishing any particular work or service (i) the cost of capital improvements which, if performed by Landlord, would be included in Project Costs) to a tenant who has undertaken to perform such work or other capital expenditures service in lieu of the performance thereof by Landlord, Project Costs shall be deemed to be increased by an amount equal to the additional Project unless Costs which would reasonably have been incurred during such capital costs period by Landlord if it had at its own expense furnished such work or expenditures are made service to (a) reduce such tenant. Project Costs for the normal annual operating costs of the ProjectBase Year shall not include market-wide cost increases due to extraordinary circumstances, including, but not limited to, Unavoidable Delay, boycotts, strikes, conservation surcharges, embargoes or shortages, or (b) comply with applicable lawsamortized costs relating to capital improvements. In no event shall the components of Project Costs for any year related to insurance, statutessecurity or utility costs be less than the components of Project Costs related to insurance, rulessecurity or utility costs, regulations or ordinances enacted or promulgated by any governmental authority after the Commencement Daterespectively, (ii) costs incurred in the leasing of any portion of the Project, including brokerage fees, marketing costs and tenant improvement costs, (iii) depreciation and amortization, (iv) interest and principal payments on mortgages and other debt costs, (v) costs for which Landlord is reimbursed by insurance, warranty, or any tenant or other third party, (vi) costs associated with the operation of the business of the entity that constitutes Landlord (as distinguished from the costs of operation of the Building and the Property, (vii) ground rents, (viii) costs arising from the gross negligence or willful misconduct of Landlord or its agents, employees or contractors in connection with this Lease, (ix) costs to correct any construction defect in the Building or to remedy any violation of any covenant, condition, restriction, or law that exists as of the Commencement Date, (x) costs incurred to comply with laws relating to removal or remediation of Hazardous Materials from the Building or the Property and any costs of fines or penalties related thereto, in each case to the extent not brought onto the Premises, the Building or the Property by Tenant, (xi) legal fees and accountants’ fees incurred in connection with disputes with tenants or associated with the enforcement of the terms of any leases with tenants, (xii) capital cost occasioned by casualties or condemnation, (xiii) any bad debt loss, rent loss or reserved for bad debt or rent loss not used in the same year; (xiv) the wages of any employee who does not devote substantially all of his or her employed time at the Property unless such wages and benefits are prorated to reflect time spent on operating and managing the Property versus time spent on unrelated matters; (xv) costs incurred due to the violation by Landlord or any other tenant of the Building or the terms of a Lease; or (xvi) costs incurred in connection with the construction of any additional buildings or structures on the PropertyBase Year.

Definition of Project Costs. The term “"Project Costs” " means all costs and expenses incurred by Landlord or Landlord’s 's Agents in connection with the operation of the BuildingProject, including, but not limited to, to the following: repair and maintenance of the roof, structural frame, foundation and exterior walls of the Buildingbuildings in the Project, periodic painting of the Buildingbuildings in the Project, periodic cleaning of the exterior windows of the Buildingbuildings in the Project, landscaping services, outside pest control, normal maintenance and repair of the HVAC through maintenance contracts or otherwiseHVAC, unless Landlord elects to maintain the same pursuant to Section 9.2), sweeping, maintenance services, repairs to and replacement of asphalt paving, bumpers, striping, light bulbs, light standards, monument and directional signs and lighting systems, perimeter walls, retaining walls, sidewalks, planters, landscaping and sprinkler system in planting area, any and all assessments levied against the Building Project pursuant to the Restrictions, water, electrical and other utility services not supplied directly to a tenant, removal of trash, rubbish and other refuse from the BuildingProject, cleaning of and replacement of signs of the Building not reimbursed directly by a tenantProject, including re-xxxxxxx relamping and repairs made as required; repair, operation and maintenance of the Common Area, including, but not limited to, removal of any obstructions not reasonably required for the Common Area uses, prohibition and removal of the sale or display of merchandise or the storing of materials and/or equipment in the Common Area, and payment of all electrical, water and other utility charges or fees for services furnished to the Common Area; obtaining and maintaining public liability, property damage and other forms of insurance which Landlord may or is required to maintain in connection with the Building Project (including the payment of any deductibles thereunder); costs incurred in connection with compliance of Applicable Laws, including, without limitation, any Applicable Laws laws or changes in Applicable Laws laws applicable to the Project, including without limitation any laws or changes in laws regarding Hazardous Materials; establishment of reasonable reserves for replacements and/or repair of Common Area improvements, equipment and supplies; employment of such personnel as Landlord may deem reasonably necessary, if any, to direct parking and police the Common Area and facilities; the cost of any capital improvements (other than tenant improvements for specific tenants) made by or on behalf of Landlord to the Building Project or Common Area to the extent of the amortized amount thereof over the useful life of such capital improvements calculated at a market cost of funds, all as reasonably determined by Landlord, for each such year of the applicable amortization period useful life during the Term; depreciation of machinery and equipment used in connection with the maintenance and operation of the Common Area for which a reasonable reserve has not been established as herein provided; employment of personnel used in connection with any of the foregoing, including, but not limited to, payment or provision for unemployment insurance, worker’s compensation insurance and other employee costs; the cost of bookkeeping, accounting and auditing and legal services provided in connection with any of the foregoing; the cost of any environmental consultant or other services used in connection with Landlord's monitoring of the Project with respect to Hazardous Materials; the cost of any tax, insurance or other consultant utilized in connection with the PropertyProject; and any other items reasonably necessary from time to time to properly repair, replace, maintain and operate the Property or BuildingProject. Project Costs shall also include a management fee to cover Landlord’s 's management, overhead and administrative expenses; provided, however, if Landlord elects to delegate its duties hereunder to a professional property manager, then Project Costs shall not include any management fee to Landlord Landlord, but under such circumstances any reasonable amounts paid to the professional property manager shall be added to and deemed a part of Project Costs (provided, however, that in no event shall the management fee paid directly to Landlord or Landlord’s property manager exceed four percent (4%) of gross rents for the Building)Costs. If Landlord elects to perform any maintenance or repair herein described in conjunction with properties other than the PropertyProject, and if a common maintenance contractor is contracted with for such purpose, the contract amount allocable to the PropertyProject, as reasonably determined by Landlord, shall be added to and deemed a part of Project Costs hereunder, subject to the limitation in the previous sentence. Project Costs shall also include any costs, expenses and other charges levied or charged against Landlord and/or the Property by under the Restrictions. Increases in Project Costs by reason of a disproportionate impact by Tenant thereon (for example, and not by way of limitation, increases in costs of trash collection because of Tenant’s 's excessive generation of trash or increases in costs of Common Area maintenance because of Tenant’s 's unpermitted storage of inventory or materials in the Common Area), in Landlord’s 's reasonable judgment, may be billed by Landlord, as an item of Additional Rent, directly to Tenant. .Notwithstanding the foregoing, Operating Expenses shall not include: (i) the cost of capital improvements or other capital expenditures to the Project unless such capital costs or expenditures are made to (a) reduce the normal annual operating costs of the Project, or (b) comply with applicable laws, statutes, rules, regulations or ordinances enacted or promulgated by any governmental authority after the Commencement Date, (ii) costs incurred in the leasing of any portion of the Project, including brokerage fees, marketing costs and tenant improvement costs, (iii) depreciation and amortization, (iv) interest and principal payments on mortgages and other debt costs, (v) costs for which Landlord is reimbursed by insurance, warranty, or any tenant or other third party, (vi) costs associated with the operation of the business of the entity that constitutes Landlord (as distinguished from the costs of operation of the Building and the Property, (vii) ground rents, (viii) costs arising from the gross negligence or willful misconduct of Landlord or its agents, employees or contractors in connection with this Lease, (ix) costs to correct any construction defect in the Building or to remedy any violation of any covenant, condition, restriction, or law that exists as of the Commencement Date, (x) costs incurred to comply with laws relating to removal or remediation of Hazardous Materials from the Building or the Property and any costs of fines or penalties related thereto, in each case to the extent not brought onto the Premises, the Building or the Property by Tenant, (xi) legal fees and accountants’ fees incurred in connection with disputes with tenants or associated with the enforcement of the terms of any leases with tenants, (xii) capital cost occasioned by casualties or condemnation, (xiii) any bad debt loss, rent loss or reserved for bad debt or rent loss not used in the same year; (xiv) the wages of any employee who does not devote substantially all of his or her employed time at the Property unless such wages and benefits are prorated to reflect time spent on operating and managing the Property versus time spent on unrelated matters; (xv) costs incurred due to the violation by Landlord or any other tenant of the Building or the terms of a Lease; or (xvi) costs incurred in connection with the construction of any additional buildings or structures on the PropertySee Rider 7.3.