Method for Developing the Annual CS Charge Clause Samples

Method for Developing the Annual CS Charge. (a) For the purpose hereof, the “base unit rate” shall be the “Operating Costs”, as hereinafter defined, divided by the gross leasable area of the Shopping Center serviced by the central air conditioning system. (b) As used herein, the term “Operating Costs” shall mean all costs and expenses of every kind and nature paid or incurred by Landlord in operating, repairing, replacing and maintaining the central air conditioning system, including, without limitation, repairing, replacing and maintaining the same, water, sewage, gas and electricity (at secondary rates), and other utilities, including any and all usage, service, hookup, connection, availability and/or standby fees or charges pertaining to the same, compliance with rules, regulations and orders of governmental authorities pertaining to air pollution control, including the cost of monitoring air quality, premiums for liability, casualty and property insurance, personal property taxes, audit fees and expenses, supplies, depreciation (or reserves therefor) of equipment, total compensation and benefits (including premiums for worker’s compensation or other insurance or other retirement or employee benefits, and including all costs incurred in providing such benefits) paid to or on behalf of employees involved in the operation, maintenance and repair of the central air conditioning system and an amount equal to fifteen percent (15%) of the total of all of the foregoing costs and expenses to compensate Landlord for administrative services. Notwithstanding anything herein contained to the contrary, any charges included pursuant to the provisions of Section 6.05 of the Lease shall be excluded from Operating Costs and to the extent tenants of the Shopping Center pay an adjusted unit rate, the amount paid by such tenants in excess of the base unit rate shall be credited in the computation of the Operating Costs.