Common use of LANDLORD'S OPERATING EXPENSES Clause in Contracts

LANDLORD'S OPERATING EXPENSES. DEFINITION. "Landlord's -------------------------------------------- Operating Expenses" means all costs of Landlord in owning, servicing, operating, managing, maintaining, and repairing the Building, Land and all improvements thereon and providing services to tenants including, without limitation, the costs of the following: (i) supplies, materials and equipment purchased or rented, total wage and salary costs paid to, and all contract payments made on account of, all persons engaged in the operation, maintenance, security, cleaning and repair of the Building and Land, including Social Security, old age and unemployment taxes and so-called "fringe benefits"; (ii) building services furnished to tenants of the Building at Landlord's expense (including the types of services provided to Tenant pursuant to Section 4.1 hereof) and maintenance and repair of and services provided to or on behalf of the Building performed by Landlord's employees or by other persons under contract with Landlord; (iii) utilities consumed and expenses incurred in the operation, maintenance and repair of the Building including, without limitation, oil, gas, electricity (other than electricity to tenants in their Premises if Tenant is directly responsible for payment under this Lease on account of electricity consumed by Tenant), water, sewer and snow removal; (iv) casualty, liability and other insurance, and unreimbursed costs incurred by Landlord which are subject to an insurance deductible; (v) costs of operating any cafeteria, other food service facility, day care facility, or physical fitness facility for use of tenants generally; and (vi) management fees (not to exceed the management fees for the first Lease Year of the Term). Any Landlord Operating Expenses which partly benefit the Land or Building and partly benefit other land or buildings in the Xxxxx Xxxxx Office Park shall be allocated in accordance with current practices, consistently applied. If Landlord, in its sole discretion, installs a new or replacement capital item for the purpose of reducing or conserving the use of energy in the Building, complying with any building code or other law, regulation, or legal requirement, complying with requirements of any insurer, or otherwise relating to the operation of the Building, the cost of such item amortized over its useful life determined in accordance with generally accepted accounting principles with interest at the rate of two percent (2%) per annum above the so-called prime rate of interest reported from time to time by the Wall Street Journal (or ------------------- another comparable publication reasonably selected by Landlord) shall be included in Landlord's Operating Expenses. Landlord agrees that since one of the purposes of Operating Expenses is to allow Landlord to require Tenant to pay for the costs attributable to its Premises, Landlord agrees that Landlord does not expect to calculate Landlord's Operating Expenses in order (i) to collect Operating Expenses from all of its tenants in an amount that is in excess of one hundred percent (100%) of the Operating Expenses actually incurred by Landlord in connection with the operation of the Building, or (ii) to profit (other than a de minimis manner) from Landlord's collections of Operating Expenses.

Appears in 2 contracts

Samples: Office Lease (Storagenetworks Inc), Office Lease (Storagenetworks Inc)

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LANDLORD'S OPERATING EXPENSES. DEFINITION. "Landlord's -------------------------------------------- Operating Expenses" means all reasonable costs of Landlord in owning, servicing, operating, managing, maintaining, and repairing the Building, Land, Additional Land and all improvements thereon Exclusive Parking Spaces and (subject to the terms of the following paragraph) making replacements thereon, and providing services to tenants tenants, including, without limitation, the costs of the following: (i) supplies, materials and equipment customarily purchased or rented, rented and total wage and salary costs paid to, to and all contract payments made on account of, of all persons engaged in the operationoperating, maintenance, security, cleaning and repair of the Building and Land, including Social Security, old age and unemployment taxes taxes, hospitalization, disability insurance or benefits and other customary so-called "fringe benefits"; (ii) building services furnished to tenants of the Building Tenant at Landlord's expense cost (including the types of services provided to Tenant pursuant to Section 4.1 hereof) and maintenance and repair of and services provided to or on behalf of the Building performed by Landlord's employees or by other persons under contract with Landlord or Landlord's Managing Agent or building service agent ("Building Service Agents"); (iii) utilities consumed and expenses incurred in the operation, operation and maintenance and repair of the Building (both common areas and tenant areas) and Land including, without limitation, oil, gas, electricity (the foregoing shall not include electricity provided for other than electricity to tenants in their Premises if Tenant is directly responsible for payment under this Lease on account of electricity consumed premises) water and sewer (but excluding water and sewer charges reimbursed to Landlord by other tenants or Tenant), water, sewer ) and snow removal; (iv) casualty, liability and other insurance, and unreimbursed costs incurred by Landlord which are subject to an insurance deductible; (v) costs in the nature of operating any cafeteriacommon area and facilities costs of the development owned by Landlord and which includes the land and the Buildings (to the extent such development includes land other than the Land) reasonably allocated to the Land and Building including without limitation, road and grounds maintenance, snow plowing and removal and other food service facilitycosts of operating, day care facilitymaintaining, or physical fitness facility for use of tenants generallyrepairing and servicing common areas and facilities; and (vi) an allowance for building service fees and management fees (not fees, in an aggregate amount equal to exceed $0.30 per square foot of Rentable Floor Area of the management fees Building for the first Lease Year of the Initial Term (it being understood that such allowance may increase during any Extension Term). Any ; (vii) "Landlord's Taxes" as defined below and (viii) costs incurred by Landlord Operating Expenses which partly benefit in connection with the Land or Building and partly benefit other land or buildings requirements set forth in that certain letter dated October 10, 1996 from Xxxxxx X. Xxxxxxx, P.E. to Xxxxx Associates, Inc. (the "DEP Letter"), it being understood that any costs in the Xxxxx Xxxxx Office Park nature of capital expenses shall be allocated amortized in accordance with current practicesthe terms of the following paragraph. If Landlord is not obligated to furnish cleaning and janitorial services, consistently appliedor any other item, the costs of which are included in Landlord's Operating Expenses, to all rentable areas of the Building (any such item not furnished to all such rentable areas is referred to as a "restricted item"), Additional Rent due hereunder with respect to any restricted item furnished to or benefiting the Premises for any period shall be (i) the cost of such item for the period multiplied by (ii) the percentage calculated by dividing the Rentable Floor Area of the Premises (as the Premises may be expanded from time to time) by the total rentable floor area of all premises so benefited. No amount shall be included in Xxxxxxxx's Operating Expenses with respect to any restricted item not furnished to or benefiting the Premises. If Landlord, in its sole reasonable discretion, installs a new or replacement capital item for the purpose of reducing or conserving the use of energy in the Building, complying with any building code Building (provided that such reduction or other conservation of energy is required by applicable law, regulation, or legal requirement, complying with requirements of any insurer, ) or otherwise relating to the operation of the Building (including but not limited to the replacement of the roof, foundation, exterior walls, and other structural components of the Building, the heating, ventilating, air conditioning, electrical, plumbing, emergency and other mechanical equipment and systems, and the on-site subsurface sewage disposal system and the Exclusive Parking Spaces (as defined in Article XII hereof)), the cost of such item shall be amortized over its useful life determined in accordance with generally accepted accounting principles with interest at the rate of two percent (2%) per annum above the so-called prime rate of interest reported from time to time published by the Wall Street Journal THE WALL STREET JOURNAL (or ------------------- another comparable substitute publication reasonably selected by LandlordLandlord if THE WALL STREET JOURNAL shall cease publication of such information and only the annual amortized portion (together with interest) shall be included in Landlord's Operating ExpensesExpenses for any year. Landlord agrees that since one of Notwithstanding anything to the purposes of Operating Expenses is to allow Landlord to require Tenant to pay for the costs attributable to its Premisescontrary herein, Landlord agrees that Landlord does not expect to calculate LandlordXxxxxxxx's Operating Expenses in order shall not include any of the following costs or expenses incurred by Landlord: (i) salaries, wages, benefits and other expenses of executives, principals, and off-site or central office, accounting, and administrative staff of Landlord or Landlord's Management Agent (except as the same may be reflected in the management fee for the Building or attributable to collect Operating Expenses from all actual Building operations); (ii) payments of its tenants in an amount that is in excess of one hundred percent (100%) principal, interest or other charges on indebtedness secured by a mortgage or other security interest covering any portion of the Operating Expenses actually incurred by Building or the Land; (iii) rent, additional rent, or other charges payable under any ground lease or superior lease affecting the Land, the Building, or the parking areas described in Article XII hereof (it being understood that the foregoing shall not be construed to include any costs of Landlord in operating, managing, maintaining, and repairing such parking areas or making replacements thereon); (iv) costs of leasehold improvements made in connection with the operation preparation of any portion of the Building for occupancy by a new or existing tenant which is not beneficial to all tenants of the Building; (v) costs of any expansion of the rentable area of the Building or the parking areas serving the Building; (vi) costs, expenses or charges (including utilities) properly chargeable or attributable to a particular tenant or tenants other than Tenant; (vii) efforts to lease portions of the building or to procure new tenants for the Building, including advertising expenses, leasing commissions and attorney's fees; (viii) negotiations or disputes with any tenant of the Building other than Tenant; (ix) Landlord's general overhead (except as the same may be reflected in the management fee for the Building or attributable to actual Building operations); (x) depreciation of the Building; (xi) repairs and replacements arising out of a casualty or condemnation (in excess of a reasonable deductible under insurance carried by Landlord); (xii) Landlord's or Landlord's Managing Agent's breach or violation of a law, lease, or other obligation, including fines, penalties and attorneys' fees; (xiii) compensation paid to employees or other persons in connection with commercial concessions operated by Landlord or Landlord's Managing Agent; (xv) fees for licenses, permits or inspections resulting from the negligence or willful misconduct of Landlord, Landlord's Managing Agent or any tenant of the Building other than Tenant; (xvi) compliance by Landlord with laws in effect and applicable as of the date hereof, including without limitation the Americans with Disabilities Act and the regulations and standards thereunder, provided that costs of such compliance with laws becoming effective and applicable after the date hereof may be included in Landlord's Operating Expenses; (xvii) construction and development of the Building, other improvements on the Land or the parking areas described in Article XII hereof and the cost of repair of defects in the original construction of the Building or such improvements or parking areas; (iixix) any items to profit the extent to which Landlord receives reimbursement from insurance proceeds or from a third party; (xx) any utility or other than service to the extent used or consumed in rentable areas leased to other tenants or occupants of the Building and provided that Tenant's use or consumption of such utility or service is separately metered at the Premises; and (xxi) environmental testing, remediation and compliance (it being understood that any such costs arising out of Tenant's use or occupancy of the Premises shall be paid by Xxxxxx to Landlord as additional rent and as a de minimis manner) from Landlord's collections of Operating Expensesdirect reimbursement hereunder).

Appears in 1 contract

Samples: Lease (Cascade Communications Corp)

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LANDLORD'S OPERATING EXPENSES. DEFINITION7.3.1 Commencing on the first anniversary of the Commencement Date, for each year or part of a year occurring within the Term, Tenant shall pay to Landlord in the manner described in paragraph 7.4, as Additional Rent, Tenant's Proportionate Share of the amount by which Landlord's Operating Expenses attributable to such period exceed Landlord's Operating Expenses attributable to the Base Operating Year (or corresponding portion thereof). For the purposes hereof "Base Operating Year" shall mean the calendar year 2007. 7.3.2 As used herein, the term "Landlord's -------------------------------------------- Operating Expenses" means all shall mean those costs of or expenses paid or incurred by Landlord in owning, servicing, for operating, managing, maintaining, and repairing (inclusive of Structural Repairs) the Building, Land any of its systems, or the Real Property, including the cost of electricity, gas, water, fuel, window cleaning, janitorial service, insurance of all kinds carried in good faith by Landlord and all improvements thereon applicable to the Building or the Real Property, snow removal, maintenance and providing services to tenants including, without limitation, the costs cleaning of the following: parking lot, landscape maintenance (i) including replanting and replacing flowers and other plantings), painting or repainting or redecorating of the public areas, maintenance of equipment and replacement of worn out mechanical or damaged equipment, uniforms, management fees, typical and customary office expenses, building supplies, materials sundries, sales or use tax on supplies or services, wages, salaries and equipment purchased or rentedother compensation, total wage including applicable payroll taxes and salary costs paid tobenefits, and all contract payments made on account of, of all persons engaged in the operation, maintenance, security, cleaning and repair of the Building and Land, including Social Security, old age and unemployment taxes and so-called "fringe benefits"; (ii) building services furnished to tenants of the Building at Landlord's expense (including the types of services provided to Tenant pursuant to Section 4.1 hereof) and maintenance and repair of and services provided to or on behalf of the Building performed by Landlord's employees or by other persons under contract with Landlord; (iii) utilities consumed and expenses incurred in Landlord for the operation, maintenance and repair of the Building includingand the Real Property including independent contractors' fees, without limitationreplacement cost of tools and equipment, oil, gas, electricity (other than electricity to tenants in their Premises if Tenant is directly responsible for payment under this Lease on account of electricity consumed by Tenant), water, sewer legal and snow removal; (iv) casualty, liability and other insuranceaccounting expenses, and unreimbursed costs incurred by Landlord any other expenses or costs, which are subject to an insurance deductible; (v) costs of operating any cafeteria, other food service facility, day care facility, or physical fitness facility for use of tenants generally; and (vi) management fees (not to exceed the management fees for the first Lease Year of the Term). Any Landlord Operating Expenses which partly benefit the Land or Building and partly benefit other land or buildings in the Xxxxx Xxxxx Office Park shall be allocated in accordance with current practices, consistently applied. If Landlord, in its sole discretion, installs a new or replacement capital item for the purpose of reducing or conserving the use of energy in the Building, complying with any building code or other law, regulation, or legal requirement, complying with requirements of any insurer, or otherwise relating to the operation of the Building, the cost of such item amortized over its useful life determined in accordance with generally accepted accounting principles with interest at and the rate standard management practices for office buildings comparable to the Building would be considered as an expense of two percent (2%) per annum above operating, maintaining, or repairing the so-called prime rate of interest reported Building and the Real Property. Excluded from time to time by the Wall Street Journal (or ------------------- another comparable publication reasonably selected by Landlord) shall be included in Landlord's Operating Expenses. Landlord agrees that since one of the purposes of Operating Expenses is to allow Landlord to require Tenant to pay for the costs attributable to its Premises, Landlord agrees that Landlord does not expect to calculate Landlord's Operating Expenses in order are: (ia) Repairs or other work occasioned by fire, windstorm or other casualty for which there is insurance coverage (to collect Operating Expenses the extent of such coverage) or by the exercise of eminent domain or any expenditures for which Landlord is reimbursed from all of its any source. (b) With respect to present or prospective tenants in an amount that is in excess of one hundred percent (100%) or other occupants of the Operating Expenses actually Building, all costs, including leasing commissions and attorneys’ fees incurred by Landlord in connection with the operation negotiations and transactions with such persons. (c) With respect to present or prospective tenants or other occupants of the Building, renovating or otherwise improving or decorating, painting or redecorating space for such persons. (iid) Landlord’s cost of electricity and other services that are sold to tenants and for which Landlord is entitled to be reimbursed by tenants as an additional charge or rental over and above the basic rent payable under the lease with such tenant. (e) Costs incurred by Landlord for alterations or improvements which are considered capital improvements or replacements under the Internal Revenue Code and generally accepted accounting principles, except where such capital improvement or replacement is made as a cost savings measure in which case such capital expenditure, together with interest thereon at 8% per annum, shall be amortized and charged to Tenant over the useful life of such improvement or replacement. (f) Depreciation and amortization except as provided above. (g) The costs of all services furnished to any other tenant of the Building on a “rent inclusion” basis which are not provided to Tenant on such basis. (h) Legal fees and related legal costs, together with any damages awarded Tenant or any other tenants, incurred by Landlord due to the violation by Landlord or any other tenant of the terms and conditions of any lease of space in the Building. (i) Overhead and profit increment paid to subsidiaries or affiliates of Landlord for services on or to the Real Property, to the extent only that the costs of such services exceed reasonable costs of such services were they not rendered by a subsidiary or affiliate. (j) Interest on debt or amortization payments on any mortgage or mortgages, and rental under any ground or underlying lease or leases. (k) Any compensation paid to clerks, attendants or other than a de minimis mannerpersons in commercial concessions operated by Landlord. (l) All items and services for which any tenant reimburses Landlord or pays third persons. (m) Advertising and promotional expenditures. (n) Any costs, fines or penalties incurred due to violations by Landlord of any governmental rule or authority. (o) Management fees to the extent they exceed similar costs incurred in comparable office buildings in the area. (p) Costs for sculpture, paintings or other objects of art. (q) Wages, salaries, or other compensation paid to any executive employees above the grade of building superintendent or building manager. (r) Financing costs, including but not limited to points, commitment fees and legal fees incurred in connection therewith. (s) Costs incurred to test, survey, clean up, contain, axxxx, remove or otherwise remedy hazardous or toxic materials or asbestos-containing materials or the cost of any environmental site assessment. (t) Costs arising from Landlord's collections of Operating Expenses’s charitable or political contribution. (u) Insurance premiums to the extent any tenant causes Landlord’s existing insurance premiums to increase or requires Landlord to purchase additional insurance.

Appears in 1 contract

Samples: Lease Agreement (Columbia Laboratories Inc)

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