Common use of Increase in Operating Costs Clause in Contracts

Increase in Operating Costs. Tenant shall pay to Landlord fifty-three one hundredths of a percent (.53%) (being the approximate and agreed upon proportion which the floor area of the premises bears to the total rentable office floor area above grade of the Building) of the increase during the term of this Lease in Annual Operating Charges (as hereinafter defined) over the Base Operating Charges (as hereinafter defined). The Annual Operating Charges are hereby defined as the sum of the following costs and expenses: (i) gas, electricity, water, sewer and other utility charges (including surcharges) of whatever nature, (ii) insurance, (iii) building personnel costs, including, but not limited to, salaries, wages, fringe benefits and other direct and indirect costs of engineers, superintendents, watchmen, porters and any other building personnel, (iv) costs of service and maintenance contracts, including, but not limited to, chillers, boilers, controls, elevators, mail chute, window, janitorial and general cleaning, security services, and management fee, (v) all other maintenance and repair expenses and supplies which are deducted by Landlord in computing it Federal Income tax liability, (vi) any other costs and expenses (i.e. items which are not capital improvements) incurred by Landlord in operating the Building, including ground rent, if any, and (vii) the cost of any additional services not provided to the Building at the Lease Commencement Date but thereafter provided by Landlord in the prudent management of the Building. If, after determination of the Base Operating Charges, Landlord installs energy saving devises designed to reduce the level of consumption of one or more utility services provided in the Building, then for purposes of subsection (i) of this Paragraph 3(c), the charges for each such affected utility service shall be the lesser of either the actual cost of such utility service plus the amortized cost of purchasing and installing the energy saving device (as used by Landlord for federal income tax purposes), or the present cost of providing the same level of such utility service as was consumed in the twelve (12) month period immediately preceding the installation of the energy saving device(s) (level of service multiplied by present rate charges for such service). In the event that any business, rent or other taxes which are now or hereafter levied upon Tenant's use or occupancy of the premises or Tenant's business at the premises or on Landlord by virtue of Tenant's occupancy of the premises, are enacted, changed or altered so that any of such taxes are levied against Landlord or the mode of collection of such taxes is changed so that Landlord is responsible for collection or payment of such taxes, any and all such taxes shall be deemed to be a part of the Annual Operating Charges and Tenant shall pay the taxes that would otherwise be imposed on it to Landlord. Annual Operating Charges shall not include (i) principal encumbrances, (ii) leasing commissions payable by Landlord, (iii) deductions for depreciation of the Building or (iv) capital improvements which are not deducted by Landlord in computing its Federal Income tax liability. The Base Operating Charges are hereby defined as the Annual Operating Charges for the later to occur of (i) the calendar year in which the Lease Commencement Date occurs or (ii) or calendar year 1997. At any time or times after the year in which the Base Operating Charges are determined, Landlord may submit to Tenant an estimate of the increase of the Annual Operating Charges over the Base Operating Charges and within thirty (30) days after the delivery of such statement, and each month thereafter, Tenant will pay to Landlord, as additional monthly rent, an amount equal to one-twelfth (1/12th) of the amount determined to be Tenant's aforesaid percentage of the increases in Annual Operating Charges. Within ninety (90) days after the expiration of each calendar year in which Tenant's monthly rent is increased pursuant to this paragraph, Landlord may submit, or upon the request of Tenant, Landlord shall submit, a statement showing the determination of the total increase and Tenant's proportionate share of such

Increase in Operating Costs. Tenant shall shall, for each calendar year after the year in which the Base Year Operating Charges (as hereinafter defined) are determined, pay to Landlord fifty-three one hundredths of a Landlord, as additional rent, two and 50/100 percent (.532.50%) (being the approximate and agreed Tenant's agreed-upon proportion which the floor area of the premises bears to the total rentable office floor area above grade of the Buildingproportionate share) of the increase during the term of this Lease in Annual Operating Charges (as hereinafter defined) over the Base Year Operating Charges (as hereinafter defined)Charges. The Annual Operating Charges for any calendar year are hereby defined as the sum of the following costs and expenses: (i) gas, electricity, water, sewer and other utility charges (including surcharges) of whatever nature, (ii) insuranceinsurance premiums, (iii) building personnel costs, including, but not limited to, salaries, wages, fringe benefits and other direct and indirect costs of engineers, superintendents, watchmen, porters and any other building personnel, (iv) costs of service and maintenance contracts, including, but not limited to, chillers, boilers, controls, elevators, mail chute, windowwindows, janitorial and general cleaning, security services, and management feefees, (v) all other maintenance and repair expenses and supplies which are deducted by Landlord for such calendar year in computing it its Federal Income income tax liability, (vi) any other costs and expenses (i.e. i.e., items which are not capital improvements) incurred by Landlord in operating the Building, including ground rent, if any, and principal and interest payments, in excess of the amount paid during the Base Year on the permanent loan,* (vii) the cost of any additional services not provided to the Building at the Lease Commencement Date but thereafter provided by Landlord in the prudent management of the Building. If, and (viii) the cost of any capital improvements which are made by Landlord after determination completion of initial construction of the Base Operating ChargesBuilding; provided, Landlord installs energy saving devises designed to reduce however, that the level cost of consumption of one or more utility services provided in the Building, then for purposes of subsection (i) of this Paragraph 3(c), the charges for each such affected utility service capital improvement, together with any financing charges incurred in connection therewith, or imputed financing charge if the improvement is not financed by borrowing shall be amortized in constant annual payments over the lesser of either the actual cost of useful life thereof and only that portion thereof attributable to such utility service plus the amortized cost of purchasing and installing the energy saving device (as used by Landlord for federal income tax purposes), or the present cost of providing the same level of such utility service as was consumed in the twelve (12) month period immediately preceding the installation of the energy saving device(s) (level of service multiplied by present rate charges for such service). In the event that any business, rent or other taxes which are now or hereafter levied upon Tenant's use or occupancy of the premises or Tenant's business at the premises or on Landlord by virtue of Tenant's occupancy of the premises, are enacted, changed or altered so that any of such taxes are levied against Landlord or the mode of collection of such taxes is changed so that Landlord is responsible for collection or payment of such taxes, any and all such taxes calendar year shall be deemed to be a part of included in the Annual Operating Charges and Tenant shall pay the taxes that would otherwise be imposed on it to Landlord. for such calendar year.** Annual Operating Charges shall not include (i) principal encumbrancespayments or interest payments in an amount equal to the Base Year payments, on any permanent mortgages, (ii) leasing commissions payable by Landlord, Landlord or (iii) deductions for depreciation of the Building or (iv) capital improvements which are not deducted by Landlord in computing its Federal Income tax liabilityBuilding. The Base Year Operating Charges are hereby defined as the Annual Operating Charges for the later to occur of (i) the calendar year in which the Lease Commencement Date occurs or (ii) or calendar year 19971988. At any time or times after the year in which the Base Year Operating Charges are determinedreasonably determined or estimated, Landlord may submit to Tenant an a statement of Landlord's estimate of the increase of the Annual Operating Charges for the current calendar year over the Base Year Operating Charges Charges, and within thirty (30) days after the delivery of such statement, and each month thereafter, Tenant will pay shall begin paying to Landlord, as additional monthly rentrent due and payable on the first day of each month, an amount equal to one-twelfth (1/12th) of the amount determined to be Tenant's aforesaid percentage of the increases increase in the Annual Operating Charges. Within ninety (90) days after the expiration of each calendar year in which Tenant's monthly Tenaxx'x xonthly rent is increased pursuant to this paragraphparagraph 3(c), Landlord may submitshall, or upon the request of Tenant, Landlord shall submit, submit a statement showing the determination of the total increase in Annual Operating Charges for such calendar year over the Base Year Operating charges, and Tenaxx'x xroportionate share of such increase. If such statement shows that Tenaxx'x xonthly payments pursuant to this paragraph 3(c) exceeded Tenant's proportionate share of suchthe actual increase in Annual Operating Charges for the preceding calendar year, then Tenant may deduct such overpayment from its next payment or payments of monthly rent. If such statement shows that Tenaxx'x xhare of the actual increase in Annual Operating Charges exceeded Tenant's monthly payments for the preceding calendar year, then Tenant shall pay the total amount of such deficiency to Landlord with the next payment of rent due hereunder after receipt of this statement. In the event that the Lease Expiration Date is not December 31st, the increase in Annual Operating Charges to be paid by Tenant for the calendar year in which the Lease Expiration Date occurs shall be determined by multiplying the amount of Tenant's share thereof for the full calendar year by a fraction, the numerator of which shall be the number of days prior to the Lease Expiration Date during such calendar year and the denominator of which shall be 365. * provided that the annual increase attributable to ground rent, principal and interest shall not exceed one half (1/2) the escalation provided for under paragraph 3(e). ** Notwithstanding, Landlord shall limit capital improvements.

Increase in Operating Costs. Tenant shall pay to Landlord fifty-three one hundredths of a SEVEN AND ONE HALF percent (.537.5%) (being the approximate and agreed upon proportion which the floor area of the premises bears to the total rentable office floor area above grade of the Building) of the increase during the term of this Lease in Annual Operating Charges (as hereinafter defined) over the Base Operating Charges (as hereinafter defined). The Annual Operating Charges are hereby defined as the sum of the following costs and expenses: (i) gas, electricity, water, sewer and other utility charges (including surcharges) of whatever nature, (ii) insurance, (iii) building personnel costs, including, but not limited to, salaries, wages, fringe benefits and other direct and indirect costs of engineers, superintendents, watchmen, porters and any other building personnel, (iv) costs of service and maintenance contracts, including, but not limited to, chillers, boilers, controls, elevators, mail chute, window, janitorial and general cleaning, security services, and management fee, (v) all other maintenance and repair expenses and supplies which are deducted by Landlord in computing it its Federal Income income tax liability, (vi) any other costs and expenses (i.e. items which are not capital improvements) incurred by Landlord in operating the Building, including ground rent, if any, and (vii) the cost of any additional services not provided to the Building at the Lease Commencement Date but thereafter provided by Landlord in the prudent management of the Building. If, after determination of the Base Operating Charges, Landlord installs energy saving devises devices designed to reduce the level of consumption of one or more utility services provided in the Building, then for purposes of subsection (i) of this Paragraph 3(c¶3(c), the charges for each such affected utility service shall be the lesser of either the actual cost of such utility service plus the amortized cost of purchasing and installing the energy saving device (as used by Landlord for federal income tax purposes), or the present cost of providing the same level of such utility service as was consumed in the twelve (12) month period immediately preceding the installation of the energy saving device(s) (level of service multiplied by present rate charges for such service). In the event that any business, rent or other taxes which are now or hereafter levied upon Tenant's ’s use or occupancy of the premises or Tenant's ’s business at the premises or on Landlord by virtue of Tenant's ’s occupancy of the premises, are enacted, changed or altered so that any of such taxes are levied against Landlord or the mode of collection of such taxes is changed so that Landlord is responsible for collection or payment of such taxes, any and all such taxes shall be deemed to be a part of the Annual Operating Charges and Tenant shall pay the taxes that would otherwise be imposed on it to Landlord. Annual Operating Charges shall not include (i) principal or interest payments on any mortgages, deeds of trust or other financing encumbrances, (ii) leasing commissions payable by Landlord, (iii) deductions for depreciation of the Building or (iv) capital improvements which are not deducted by Landlord in computing its Federal Income income tax liability. The Base Operating Charges are hereby defined as the Annual Operating Charges for the later to occur of (i) the calendar year in which the Lease Commencement Date occurs or (ii) or calendar year 19971984. At any time or times after the year in which the Base Operating Charges are determined, Landlord may submit to Tenant an estimate of the increase of the Annual Operating Charges over the Base Operating Charges and within thirty (30) days after the delivery of such statement, and each month thereafter, Tenant will pay to Landlord, as additional monthly rent, an amount equal to one-twelfth (1/12th) of the amount determined to be Tenant's ’s aforesaid percentage of the increases in Annual Operating Charges. Within ninety (90) days after the expiration of each calendar year in which the Tenant's ’s monthly rent is increased pursuant to this paragraph, Landlord may submit, or upon the request of Tenant, Landlord shall submit, a statement showing the determination of the total increase and Tenant's ’s proportionate share of suchsuch increase. If such statement shows that Tenant’s monthly payments pursuant to this paragraph exceeded Tenant’s share of the actual increase incurred for the preceding calendar year, then Tenant may deduct such overpayment from its next payment or payments of monthly rent. If such statement shows that Tenant’s share of Landlord’s actual increase exceeded Tenant’s monthly payments for the preceding calendar year, then Tenant shall pay the total amount of such deficiency to Landlord. Such deficiency shall constitute additional rent hereunder due and payable with the first monthly installment of rent due after rendition of said statement, or if payments have been accelerated pursuant to ¶17(b) (iv) below, within ten (10) days after rendition of such statement. In the event that the Lease Expiration Date is not December 31st, the increase to be paid by Tenant for the calendar year in which the Lease Expiration Date occurs shall be determined by multiplying the amount of Tenant’s share thereof for the full calendar year by a fraction with the number of days during such calendar year prior to the Lease Expiration Date as the numerator, and with 365 as the denominator.

Increase in Operating Costs. Notwithstanding anything contained herein, the annual operating charges shall be limited to costs which are applicable to the First Floor and First Basement only. Landxxxx xxxees Tenant shall have right to inspect Landlord's books to verify increase in operating charges at reasonable times and reasonable intervals. See Addendum Paragraph 33. Tenant shall, for each calendar year after the year in which the Base Year Operating Charges (as hereunder defined) are determined, pay to Landlord fiftyLandlord, as additional rent, Forty-three one eight and twenty-two hundredths of a percent (.5348.22%) (being the approximate and agreed Tenaxx'x xgreed upon proportion which the floor area of the premises bears to the total rentable office floor area above grade of the Buildingproportionate share) of the increase during the term of this Lease in Annual Operating Charges (as hereinafter defined) over the Base Year Operating Charges (as hereinafter defined)Charges. The Annual Operating Charges for any calendar year are hereby defined as the sum of the following costs and expenses: (i) gas, electricity, water, sewer and other utility charges (including surcharges) of whatever nature, (ii) insuranceinsurance premiums, (iii) building personnel costs, including, but not limited to, salaries, wages, fringe benefits and other direct and indirect costs of engineers, superintendents, watchmen, porters and any other building personnel, (iv) costs of service and maintenance contracts, including, but not limited to, chillers, boilers, controls, elevators, mail chute, windowwindows, janitorial and general cleaning, security services, and management feefees, (v) all other maintenance and repair expenses and supplies which are deducted by Landlord for such calendar year in computing it its Federal Income income tax liability, (vi) any other costs and expenses (i.e. items which are not capital improvements) incurred by Landlord in operating the Building, including ground rent, if any, and interest payments, in excess of the amount paid during the Base Year, (vii) the cost of any additional services not provided to the Building at the Lease Commencement Date but thereafter provided by Landlord in the prudent management of the Building. If, and (viii) the cost of any capital improvements which are made by Landlord after determination completion of initial construction of the Base Operating ChargesBuilding; provided, Landlord installs energy saving devises designed to reduce however, that the level cost of consumption of one or more utility services provided in the Building, then for purposes of subsection (i) of this Paragraph 3(c), the charges for each such affected utility service capital improvement, together with any financing charges incurred in connection therewith, shall be amortized over the lesser of either the actual cost of useful life thereof and only that portion thereof attributable to such utility service plus the amortized cost of purchasing and installing the energy saving device (as used by Landlord for federal income tax purposes), or the present cost of providing the same level of such utility service as was consumed in the twelve (12) month period immediately preceding the installation of the energy saving device(s) (level of service multiplied by present rate charges for such service). In the event that any business, rent or other taxes which are now or hereafter levied upon Tenant's use or occupancy of the premises or Tenant's business at the premises or on Landlord by virtue of Tenant's occupancy of the premises, are enacted, changed or altered so that any of such taxes are levied against Landlord or the mode of collection of such taxes is changed so that Landlord is responsible for collection or payment of such taxes, any and all such taxes calendar year shall be deemed to be a part of included in the Annual Operating Charges and Tenant shall pay the taxes that would otherwise be imposed on it to Landlordfor such calendar year. Annual Operating Charges shall not include (i) principal payments or interest payments in an amount equal to the Base Year interest payments, on any mortgages, deeds of trust or other financing encumbrances, (ii) leasing commissions payable by Landlord, Landlord or (iii) deductions for depreciation of the Building or (iv) capital improvements which are not deducted by Landlord in computing its Federal Income tax liabilityBuilding. The Base Year Operating Charges are hereby defined as the Annual Operating Charges for the later to occur of (i) calendar year 1983 or (ii) the calendar year in which the Lease Commencement Date occurs or (ii) or occurs; provided, however, that in either case the Base Year Operating Charges shall be adjusted, if necessary, to reflect the Annual Operating Charges for such calendar year 1997as if the Building were at least ninety percent (90%) occupied for the entire calendar year. At any time or times after the year in which the Base Year Operating Charges are determineddetermined or reasonably estimated, Landlord may submit to Tenant an a statement of Landlord's estimate of the increase of the Annual Operating Charges for the current calendar year over the Base Year Operating Charges Charges, and within thirty (30) days after the delivery of such statement, and each month thereafter, Tenant will pay shall begin paying to Landlord, as additional monthly rentrent due and payable on the first day of each month, an amount equal to one-twelfth (1/12th) of the amount determined to be Tenant's aforesaid percentage of the increases increase in the Annual Operating Charges. Within ninety (90) days after the expiration of each calendar year in which Tenant's monthly Tenaxx'x xonthly rent is increased pursuant to this paragraphParagraph 3(c), Landlord may submitshall, or upon the request of Tenant, Landlord shall submit, submit a statement showing the determination of the total increase in Annual Operating Charges for such calendar year over the Base Year Operating Charges, and Tenaxx'x xroportionate share of such increase. If such statement shows that Tenaxx'x xonthly payments pursuant to this Paragraph 3(c) exceeded Tenant's proportionate share of suchthe actual increase in Annual Operating Charges for the preceding calendar year, then Tenant may deduct such overpayment from its next payment or payments of monthly rent. If such statement shows that Tenaxx'x xhare of the actual increase in Annual Operating Charges exceeded Tenant's monthly payments for the preceding calendar year, then Tenant shall pay the total amount of such deficiency to Landlord with the next payment of rent due hereunder after receipt of the statement. In the event that the Lease Expiration Date is not December 31st, the increase in Annual Operating Charges to be paid by Tenant for the calendar year in which the Lease Expiration Date occurs shall be determined by multiplying the amount of Tenant's share thereof for the full calendar year by a fraction, the numerator of which shall be the number of days during such calendar year prior to the Lease Expiration Date, and the denominator of which shall be 365.