Operating Cost. That portion of the Building that is designated as office space for purposes of this Lease is located on the second, third, fourth and fifth floors of the Building and includes approximately 98,216 square feet of Rentable Area (“Office Area”). Areas of the 1st floor shall not be deemed Office Area regardless of their use. In addition to the Basic Rent on the 5th Floor Space, Tenant shall pay each calendar year as part of the Rental Tenant’s Proportionate Share of the amount by which the Office Area Operating Cost, grossed up as if the Office Area of the Building were 100% occupied, for the Building in any calendar year exceeds the “Basic Operating Cost” of Five Hundred Eighty-Seven Thousand Three Hundred Thirty-One and 68/100 Dollars ($587,331.68); any such excess may be referred to herein as “Excess Operating Cost.” Landlord represents and warrants to Tenant that the Basic Operating Cost was grossed up as if the Office Area of the Building was 100% occupied. Except to the extent herein otherwise provided, the term “Operating Cost” as used herein shall mean all expenses and costs (but not Excluded Operating Expenses or specific costs which are separately billed to and paid or reimbursed by specific tenants) of every kind and nature which Landlord shall actually pay or incur because of or in connection with the ownership and operation of the Office Area of the Building during a calendar year, as determined by Landlord in accordance with generally accepted accounting principles, consistently applied, and with sound management practices generally accepted with respect to the operation and maintenance of first class office buildings in Xxxxxx County, Indiana (“Comparable Office Buildings”), including, but not limited to, the following: (a) Wages, salaries, fringe benefit costs, payroll taxes, unemployment compensation payments, workmen’s compensation insurance premiums and other related expenses of all employees directly engaged in the operation, cleaning, maintenance and security of the Building; costs of Building employee uniforms and cleaning thereof; the cost of fair rental value of a Building management office; and the management fees payable by Landlord (excluding brokerage commissions for leasing) if management of the Building is contracted to a third party; (b) All supplies and materials used in the operation, cleaning, maintenance and security of the Office Area of the Building and all of its machinery and equipment; (c) Cost of utilities, including water and power for heating, lighting, air conditioning and ventilating the entire Office Area of the Building (including all common and service areas), fuel adjustment charges, sewer use charges and any utility taxes; (d) Cost of all management, maintenance, security and service agreements for the Office Area of the Building and the equipment therein, including, without limitation, alarm service, trash removal, window cleaning and elevator maintenance; (e) Accounting costs, including the costs of audits by certified public accountants, pertaining solely to the management and operation of the Office Area of the Building; (f) Cost of all insurance, including, without limitation, fire, casualty, liability and rental value insurance applicable to the Office Area of the Building and Landlord’s personal property used in connection with the operation and maintenance of the Office Area of the Building; (g) Cost of repairs, replacements and general maintenance of the Office Area of the Building and each part thereof (excluding repairs, replacements and general maintenance paid by proceeds of insurance or by Tenant or other third parties, and alterations attributable solely to other tenants of the Office Area of the Building); (h) Snow removal, landscaping and any and all other common area maintenance costs related to the Common Areas in the Office Area of the Building, including sidewalks and landscaping on the Building Site ; and (i) Amortization over the anticipated useful life pursuant to generally accepted accounting principles of capital improvements made to the Office Area of the Building subsequent to the commencement date of this Lease which may be required by governmental authorities or which will improve the operating efficiency of the Office Area of the Building resulting in a reduction of Operating Cost. (j) Cost of all insurance required to be maintained by Landlord herein including but not limited to terrorism coverage, to the extent not covered by (f) above.
Appears in 1 contract
Samples: Office Lease (ExactTarget, Inc.)
Operating Cost. That portion Landlord shall, promptly after Tenant’s request after September 1 of any year in the Term, provide Tenant with Landlord’s then preliminary estimates of the Building that is designated as office space Operating Cost and Impositions for purposes the next calendar year. If requested by Tenant, Landlord shall also meet with Tenant to discuss the likely ranges of this Lease is located such estimates based on the secondprincipal variables then expected by Landlord in its preliminary budget for the coming year. Tenant acknowledges that Landlord may later revise such preliminary estimates after the completion (typically by December 1) of Landlord’s budget preparation process for the upcoming year and upon receipt of final real estate tax bills for the fiscal tax year (typically during the month of December). Promptly after such budget process is completed, third, fourth and fifth floors Landlord shall notify Tenant of the Building Estimated Operating Cost and includes approximately 98,216 square feet Estimated Impositions for the year in question (typically on or about December 15, subject to Landlord’s right to revise the same after receipt of Rentable Area (“Office Area”final real estate tax bills). Areas Prior to such notification, Landlord shall, from time to time upon Tenant’s request, provide Landlord’s then current estimates for such next calendar year. Landlord shall use reasonable efforts during each calendar year, consistent with the management of a first-class office building, to monitor actual and projected Operating Cost and Impositions against the budgeted amounts on which Estimated Operating Cost and Estimated Impositions were based and, if Landlord determines there will be a substantial difference between the actual and then projected remaining expenses and the total estimated charges for such calendar year, to make a mid-year estimated adjustment to address such differential. All such estimated payments and charges shall be subject to a final year-end reconciliation pursuant to Section 2.07. The parties acknowledge that such year-end reconciliations for calendar year 2004 and all prior years have been made and any adjustments thereto have been satisfactorily resolved, and the parties intend that the calculation of Operating Cost and Impositions in future years in a manner consistent with such prior operating history at the Building will be deemed to comply with the terms of the 1st floor shall not be deemed Office Area regardless of their use. In addition to the Basic Rent on the 5th Floor Space, Tenant shall pay each calendar year Lease (as part of the Rental Tenant’s Proportionate Share of the amount by which the Office Area Operating Cost, grossed up as if the Office Area of the Building were 100% occupied, for the Building in any calendar year exceeds the “Basic Operating Cost” of Five Hundred Eighty-Seven Thousand Three Hundred Thirty-One and 68/100 Dollars amended hereby).
($587,331.68); any such excess may be referred to herein as “Excess Operating Cost.” Landlord represents and warrants to Tenant that the Basic a) Operating Cost was grossed up as if the Office Area of the Building was 100% occupied. Except to the extent herein otherwise provided, the term “Operating Cost” as used herein shall mean all expenses and costs (but not Excluded Operating Expenses or specific costs which are separately billed to and paid or reimbursed by specific tenants) of every kind and nature incurred by Landlord in its reasonable business judgment which Landlord shall actually pay or incur become obligated to pay because of or in connection with the ownership and management, maintenance, preservation or operation of the Office Area of the Building during a calendar year, as (determined by Landlord in accordance with generally accepted accounting principles, consistently applied, and with sound management practices generally accepted with respect to the operation and maintenance of first class office buildings in Xxxxxx County, Indiana (“Comparable Office Buildings”), ) including, but not limited to, to the following:
(a1) Wages, salaries, fringe benefit costs, payroll taxes, unemployment compensation payments, workmen’s compensation insurance premiums and other related expenses Expenses of all employees directly engaged in the operation, cleaning, maintenance and security of the Building; costs , including compensation in the form of Building employee uniforms wages, salaries, and cleaning thereof; other compensation and benefits (including payroll taxes, federal, state and local unemployment taxes and social security taxes), insurance, welfare and retirement benefits, and related expenses and benefits of all on-site and off-site employees (not exceeding the cost level of fair rental value of a Building management office; property manager) and off-site employees (but only to the management fees payable by Landlord (excluding brokerage commissions for leasing) if management of the Building is contracted to a third party;
(b) All supplies and materials used extent such employees are involved directly in the operation, cleaningmaintenance, maintenance management and security preservation of the Office Area Building, and with respect to off-site employees above the level of the property manager directly responsible for the Building, only to the extent such costs are allocated by Landlord between the Building and all other buildings for which such off-site employee has direct responsibility in accordance with a reasonable allocation methodology consistent with owners of its machinery and equipmentcomparable portfolios of first-class office buildings;
(c2) Cost of utilitiesfor Landlord’s office and management office operation for the Building, including water the actual or imputed cost of any space occupied by entities providing management or building services for the Building;
(3) All tools, supplies, materials and power equipment used in the operation and maintenance of the Building, including rental fees for the same, if such items are not purchased and amortized pursuant to (10) below;
(4) Utilities, including electricity, water, sewer, gas, communication, heating, lighting, air conditioning and ventilating ventilating, for the entire Office Area of the Building (including all common and service areas), fuel adjustment charges, sewer use charges and any utility taxesBuilding;
(d5) Cost of all management, All maintenance, security janitorial and service agreements and costs for the Office Area of the Building and the equipment thereinBuilding, including, without limitation, alarm service, trash removallandscaping, window cleaning cleaning, escalator and elevator maintenance, rubbish and snow removal, pest control, equipment maintenance or servicing or maintenance or cleaning for sidewalks, Building exterior, roof and service areas;
(e6) Accounting costsA management fee in connection with the operation of the Building; Tenant’s share to be three percent (3%) of all Rent, excluding such fee;
(7) Legal and accounting services for the Building, including the costs of audits by certified public accountants, pertaining solely to but excluding legal costs incurred in proceedings against any specific tenant or in connection with the management and operation of the Office Area development, financing, sale and/or leasing of the Building;
(f) Cost of all insurance, including, without limitation, fire, casualty, liability 8) All insurance premiums and rental value insurance costs applicable to the Office Area of the Building and Landlord’s personal property used in connection with therewith, including but not limited to, the operation premiums and maintenance cost of the Office Area of the Buildingfire, casualty and liability coverage and rental abatement and business interruption insurance and unreimbursed costs incurred by Landlord that are subject to an insurance deductible;
(g9) Cost of repairsRepairs, replacements and general maintenance of the Office Area of the Building and each part thereof (excluding repairs, replacements and general maintenance except for repairs paid by proceeds of insurance or by Tenant or other third parties, and alterations attributable solely to other tenants of the Office Area of the BuildingBuilding other than Tenant);
(h) Snow removal, landscaping and any and all other common area maintenance costs related to the Common Areas in the Office Area of the Building, including sidewalks and landscaping on the Building Site ; and
(i10) Amortization over the anticipated useful life pursuant to generally accepted accounting principles (together with reasonable actual or imputed financing charges) of capital improvements made to the Office Area Building that (i) are reasonably designed to improve the quality or operating efficiency of the Building subsequent to the commencement date of this Lease which Building, (ii) may be required by governmental authorities or which will improve the operating efficiency any insurer of the Office Area Building, or (iii) constitute equipment of a capital nature contemplated in (3) above (such as, for example, snow blowers, vacuums and sweepers), which in Landlord’s reasonable judgment, is ultimately less costly to purchase then to rent (other than those which are required for the exclusive benefit of an individual tenant or tenants and not relating to the general use or operation of the Building); provided, however, that the amount of amortization and financing charges for cost-savings items under (i) above shall be reasonably determined by Landlord to effect savings over the amortization period compared with the expenditures (either through direct reduction or minimization of increases) that would have otherwise occurred, and with respect to (ii) above, Landlord shall take reasonable steps to comply with such governmental requirements in an economical manner as determined by Landlord in its reasonable business judgment.
(b) Notwithstanding any other provision herein to the contrary in the event that the Building is not fully occupied during any year of the Term, an adjustment shall be made in computing those items constituting components of Operating Cost which vary depending on the level of occupancy of the Building for such year so that Operating Cost shall be extrapolated and computed as though the Building had been fully occupied during such year; provided, however, that in no event shall Landlord collect in total, from Tenant and all other tenants of the Building, an amount greater than one hundred percent (100%) of the actual Operating Cost during any year of the Term.
(c) Operating Cost shall not include (i) costs associated with the operation of the parking garage forming part of the Building (including the elevators serving the garage), or with the development, financing, sale or leasing of the Building, or (ii) specific costs for tenant electricity (of the type specified in Section 3.01(b)) or for extra services (of the type specified in Section 3.02) that are separately billed to and paid by specific tenants leasing space in the Office Section of the Building, or those costs and expenses which are specifically attributable to and separately paid by the tenants in the Commercial Section of the Building, (iii) that portion of the costs and expenses relating to the loading dock facilities and the General Common Areas which is paid by the tenants in the Commercial Section of the Building; (iv) any special needs or uses of tenants with respect to storage areas resulting in extraordinary costs or expenses in connection with maintaining, repairing and operating such storage areas; (v) leasing commissions or tenants inducements associated with leasing activities; (vi) costs or improvements to any tenant’s leased premises or otherwise exclusively for the benefit of an individual tenant; (vii) principal, interest, late charges or other payments on loans (except as expressly provided in (a) above), ground rent, rent paid for the right to locate Project Common Areas or Loading Docks outside of the Building, or payments on equity obligations; (viii) leasing commissions, attorneys’ fees, costs and disbursements and other expenses, any of which are incurred in connection with negotiations or disputes with tenants or prospective tenants, except with respect to disputes with other tenants the resolution of which is reasonably likely to result in a reduction material benefit to the tenants of the Project (other than costs incurred in connection with the lease termination and eviction of any tenant); (ix) depreciation and amortization of the Project or equipment, except as expressly provided in (a) above; (x) expenses in connection with services of a type which Tenant does not receive under this Lease but which are provided to another tenant; (xi) fines, penalties or indemnification obligations incurred due to violations by Landlord or Landlord Responsible Parties of any governmental rule or authority, or any agreement made in connection therewith with a governmental entity, and any costs of remedying such violations or defending the prosecution thereof (except for the costs of remedying such violations to the extent such costs are permitted Operating Costs pursuant to Section 2.04(a)(10)); (xii) except as expressly provided in (a) above, any amounts paid to principals, subsidiaries, affiliates or other parties related to Landlord for services for the Project in excess of the amount payable for comparable services provided by a party who is not a principal, subsidiary, affiliate or otherwise related party; (xiii) costs and expenses to the extent related to the ownership (as distinguished from operation and maintenance, including the charges contemplated by (a)(2) above) of the Project; (xiv) any particular items and services for which Tenant otherwise reimburses Landlord by direct payment over and above Net Rent and Tenant’s Proportionate Share of Operating Cost.
; (jxv) Cost advertising, marketing, promotional and like expenditures; (xvi) costs of all refinancing the Project; (xvii) interest or penalties resulting from delinquent payments by Landlord, provided such delinquent payments are not caused by Tenant; (xviii) repairs or other work occasioned by fire, windstorm or other casualty to the extent covered by insurance required to be maintained carried by Landlord herein including but not limited to terrorism coveragehereunder, or by the exercise of the right of eminent domain, or voluntary conveyance in lieu thereof, to the extent not covered reimbursed by condemnation proceeds; (fxix) Landlord’s costs of electricity and other services to the extent they are separately chargeable to tenants as an additional charge or rental over and above the regular installments of rent payable under the lease with such tenant; (xx) costs incurred by Landlord which are considered capital improvements and replacements under generally accepted accounting principles (“GAAP”) including contributions to replacement or contingency reserves created by Landlord, except as expressly provided in (a) above; (xxi) any compensation paid to clerks, attendants, or other persons in commercial concessions operated by Landlord; (xxii) costs for the purchase of sculpture, paintings, or other objects of art, and any royalties payable in connection therewith; and (xxiii) the cost of any curative action required, or any repair, replacement or alteration made, by Landlord (or by a third party, the cost of which is imposed upon Landlord) to remedy a condition or damage caused by or resulting from the negligence or willful misconduct of Landlord or Landlord Responsible Parties, and, except to the extent such costs are permitted Operating Costs pursuant to Section 2.04(a)(10), the costs of complying with governmental or insurance requirements.
Appears in 1 contract
Samples: Lease (Houghton Mifflin Co)
Operating Cost. That portion of For the Building that is designated as office space for purposes purpose of this Lease is located on the second, third, fourth and fifth floors of the Building and includes approximately 98,216 square feet of Rentable Area (“Office Area”). Areas of the 1st floor shall not be deemed Office Area regardless of their use. In addition to the Basic Rent on the 5th Floor Space, Tenant shall pay each calendar year as part of the Rental Tenant’s Proportionate Share of the amount by which the Office Area Operating Cost, grossed up as if the Office Area of the Building were 100% occupied, for the Building in any calendar year exceeds the “Basic Operating Cost” of Five Hundred Eighty-Seven Thousand Three Hundred Thirty-One and 68/100 Dollars ($587,331.68); any such excess may be referred to herein as “Excess Operating Cost.” Landlord represents and warrants to Tenant that the Basic Operating Cost was grossed up as if the Office Area of the Building was 100% occupied. Except to the extent herein otherwise providedSection 4.5, the term “Operating Cost” as used herein shall mean all expenses means the total cost and costs (but not Excluded Operating Expenses or specific costs which are separately billed to and paid or reimbursed by specific tenants) of every kind and nature which Landlord shall actually pay or incur because of or expense incurred in connection with the ownership operation, repair, management, maintenance and replacement of all Common Areas and all improvements within the Shopping Center (including the common areas and improvements contained in and about Pad H and Pad J shown on the Site Plan attached hereto that are not owned by Landlord but are maintained by Landlord pursuant to that certain Declaration of Covenants, Conditions and Establishment of Restrictions and Grant of Easements for McQueen Crossings Shopping Center, as amended from time to time) including, without limitation, general maintenance and repair of all improvements; expenses incurred by Landlord under Section 12.3 and Section 12.4 hereof; gardening and landscaping; snow, water and ice removal and control; security services; liability, property damage and all other insurance carried by Landlord under Section 4.6 with types of coverage and in amounts determined by Landlord; repairs; asphalt repairs, resurfacing and striping; painting of improvements; servicing of common grease interceptors; holiday decorations; snow and ice removal; utilities serving the improvements and Common Areas; sanitary control; pest control; signage operation, repair arid replacement costs; removal of mash, rubbish, garbage and other refuse; reasonable reserves for replacements and repairs; a property management fee consistent with prevailing rates charged in the industry (not to exceed five percent (5%) of gross Shopping Center rents); bookkeeping; advertising and promotional fees; Real Property Taxes; all personal property taxes assessed for any reason on the personal property used in connection with the Shopping Center; costs of equipment and machinery used to maintain or operate the Common Areas and any depreciation of the cost thereof (including financing); and the cost of personnel to implement such services, to direct parking, and to police the Common Areas. In addition, Operating Cost shall include an administrative charge equal to ten percent (10%) of the actual Operating Cost, and this charge shall be included in anti billed as a part of the Operating Cost. Notwithstanding the foregoing, in no event shall the following items be included as an Operating Cost: items for which the responsibility of repairing or maintaining or replacement is the direct responsibility of a particular tenant under their respective lease with Landlord, amounts reimbursed by insurance proceeds, or warranties; utilities or other expenses paid directly by tenants to suppliers; ground rents; payments on any mortgage, or deed-of-trust; leasing commissions; the cost of negotiating or enforcing leases of other tenants; fines, penalties, and late fees or similar costs incurred by Landlord; depreciation; costs of or arising from Landlord’s charitable or political contributions; costs, including but not limited to attorneys’ fees associated with the operation of the Office Area business of the Building during a calendar yearpartnership or entity that constitutes Landlord as the same are distinguished from the costs of operation of the Shopping Center, as determined by including partnership accounting and legal matters, costs of defending any lawsuits with any mortgage, costs of selling, syndicating, financing, mortgaging or hypothecating any of Landlord’s interest in the Shopping Center or any part thereof, costs of any disputes between Landlord and its employees, disputes of Landlord with Shopping Center management or personnel, or outside fees paid in accordance connection with generally accepted accounting principles, consistently applied, disputes with other tenants; costs incurred in removing and with sound management practices generally accepted with respect to storing the operation and maintenance property of first class office buildings in Xxxxxx County, Indiana (former tenants or occupants of the Shopping Center; lease “Comparable Office Buildings”)takeover” expenses, including, but not limited to, the following:
(a) Wages, salaries, fringe benefit costs, payroll taxes, unemployment compensation payments, workmen’s compensation insurance premiums and other related expenses of all employees directly engaged incurred by Landlord with respect to space located in the operation, cleaning, maintenance and security another building of the Building; costs Shopping Center of Building employee uniforms and cleaning thereof; the cost of fair rental value of a Building management office; and the management fees payable by Landlord (excluding brokerage commissions for leasing) if management of the Building is contracted to a third party;
(b) All supplies and materials used in the operation, cleaning, maintenance and security of the Office Area of the Building and all of its machinery and equipment;
(c) Cost of utilities, including water and power for heating, lighting, air conditioning and ventilating the entire Office Area of the Building (including all common and service areas), fuel adjustment charges, sewer use charges and any utility taxes;
(d) Cost of all management, maintenance, security and service agreements for the Office Area of the Building and the equipment therein, including, without limitation, alarm service, trash removal, window cleaning and elevator maintenance;
(e) Accounting costs, including the costs of audits by certified public accountants, pertaining solely to the management and operation of the Office Area of the Building;
(f) Cost of all insurance, including, without limitation, fire, casualty, liability and rental value insurance applicable to the Office Area of the Building and Landlord’s personal property used kind or nature in connection with the operation and maintenance leasing of space in the Shopping Center; costs incurred in connection with the original construction of the Office Area of the Building;
(g) Cost of repairsShopping Center, replacements and general maintenance of the Office Area of the Building and each part thereof (excluding repairsor; any costs, replacements and general maintenance paid by proceeds of insurance fees, dues, contributions or by Tenant similar expenses for industry associations or other third parties, and alterations attributable solely to other tenants of the Office Area of the Building);
(h) Snow removal, landscaping and any and all other common area maintenance costs related to the Common Areas in the Office Area of the Building, including sidewalks and landscaping on the Building Site ; and
(i) Amortization over the anticipated useful life pursuant to generally accepted accounting principles of capital improvements made to the Office Area of the Building subsequent to the commencement date of this Lease which may be required by governmental authorities or which will improve the operating efficiency of the Office Area of the Building resulting in a reduction of Operating Costsimilar organizations.
(j) Cost of all insurance required to be maintained by Landlord herein including but not limited to terrorism coverage, to the extent not covered by (f) above.
Appears in 1 contract
Samples: Lease Agreement (Bank Holdings)
Operating Cost. That portion of the Building that is designated as office space for purposes of this Lease is located on the second, third, fourth and fifth floors of the Building and includes approximately 98,216 square feet of Rentable Area (“Office Area”). Areas of the 1st floor shall not be deemed Office Area regardless of their use. In addition to the Basic Rent on the 5th Floor Space, Tenant shall pay each calendar year as part of the Rental Tenant’s Proportionate Share of the amount by which the Office Area Operating Cost, grossed up as if the Office Area of the Building were 100% occupied, for the Building in any calendar year exceeds the “Basic Operating Cost” of Five Hundred Eighty-Seven Thousand Three Hundred Thirty-One and 68/100 Dollars ($587,331.68); any such excess may be referred to herein as “Excess Operating Cost.” Landlord represents and warrants to Tenant that the Basic a) Operating Cost was grossed up as if the Office Area of the Building was 100% occupied. Except to the extent herein otherwise provided, the term “Operating Cost” as used herein shall mean all expenses and costs (but not Excluded Operating Expenses or specific costs which are separately billed to and paid or reimbursed by specific tenants) of every kind and nature incurred by Landlord in its reasonable business judgment which Landlord shall actually pay or incur become obligated to pay because of or in connection with the ownership and management, maintenance, preservation or operation of the Office Area of the Building during a calendar year, as (determined by Landlord in accordance with generally accepted accounting principles, consistently applied, and with sound management practices generally accepted with respect to the operation and maintenance of first class office buildings in Xxxxxx County, Indiana (“Comparable Office Buildings”), ) including, but not limited to, to the following:
(a1) Wages, salaries, fringe benefit costs, payroll taxes, unemployment compensation payments, workmen’s compensation insurance premiums and other related expenses Expenses of all employees directly engaged in the operation, cleaning, maintenance and security of the Building; costs , including compensation in the form of Building employee uniforms wages, salaries, and cleaning thereof; other compensation and benefits (including payroll taxes, federal, state and local unemployment taxes and social security taxes), insurance, welfare and retirement benefits, and related expenses and benefits of all on-site employees (not exceeding the cost level of fair rental value of a Building management office; property manager) and off-site employees (but only to the management fees payable by Landlord (excluding brokerage commissions for leasing) if management of the Building is contracted to a third party;
(b) All supplies and materials used extent such employees are involved directly in the operation, cleaningmaintenance, maintenance management and security preservation of the Office Area Building, and with respect to off-site employees above the level of the property manager directly responsible for the Building, only so long as Xxxxx Interests Limited Partnership or an affiliate thereof is managing the Building; it being agreed that the manner in which Landlord allocates the expenses for such off-site employees and categories to which such expenses are allocated will not change from the manner utilized by Landlord as of the date of this Lease and Landlord agrees to certify that such manner and categories have not changed (the "Allocable Share Certification") in connection with the delivery by Landlord to Tenant of the statement of the Operating Cost and Impositions pursuant to Section 2.06) but excluding employees and other personnel to the extent they are engaged in the initial development and construction of the Building;
(2) The Building's allocable share of the cost incurred by Landlord in Greater Boston for Landlord's office and management office operation for the Building (provided, however, that if such office is located outside the Project, such allocable share shall not exceed the allocable share of the cost which would have been incurred had the office been located within the Project);
(3) All tools, supplies materials and equipment used in the operation and maintenance of the Building (the "Building Equipment"), including rental fees for the same, if such items are not purchased and all amortized, or, if Landlord in its reasonable business judgement determines that it is ultimately less costly to purchase than to rent, then the cost of its machinery and equipmentsuch Building Equipment, as amortized by Landlord in accordance with requirements governing the amortization of such Building Equipment under the Internal Revenue Code, together with reasonable financing charges (the reasonableness of such financing charges to be determined with reference to the rates then being offered by institutional lenders for such financing);
(c4) Cost of utilitiesUtilities, including water and power for power, sewer, gas, heating, lighting, air conditioning and ventilating the entire Office Area of the Building (provided, however, that should any tenant in the Building, including all common Tenant, have special needs or uses requiring the use of any such utility beyond the ordinary for a typical tenant in a first-class office building like the Building, as determined by Landlord in its reasonable judgment (which, in the case of electrical usage, is established pursuant to Section 3.01(a)(v) and service areas(vi)), fuel adjustment chargesLandlord shall monitor such additional usage by the installation of meters or by other reasonable means, sewer use charges exclude the cost of such additional usage from the Operating Cost and any utility taxesxxxx the tenant directly therefor);
(d5) Cost of all management, All maintenance, security janitorial and service agreements or costs for the Office Area of the Building and the equipment thereinBuilding, including, without limitation, alarm service, trash removallandscaping, window cleaning cleaning, escalator and elevator maintenance, rubbish and snow removal, pest control, equipment maintenance or servicing or maintenance or cleaning for sidewalks, Building exterior, roof and service areas (provided, however, that the additional cost for any such services beyond the ordinary for providing such services to typical tenants in a first-class office building like the Building or which are made necessary by the special needs or uses of any party, including Tenant, as determined by Landlord in its reasonable judgment, shall not be included in the Operating Cost but shall be billed directly to such party);
(e6) Accounting costsA management cost recovery in connection with the operation of the Building; Tenant's share to be three percent (3%) of all Gross Rent, excluding such cost recovery;
(7) Legal and accounting services for the Building, including the costs of audits by certified public accountants; excluding, pertaining solely to however, the management and operation cost of dispute resolution auditing of the Office Area Operating Cost or Impositions pursuant to leases with tenants in the Building, costs incurred as a result of the negligence or willful misconduct of Landlord or Landlord Responsible Parties, costs incurred in proceedings against any specific tenant, and costs incurred in connection with the financing, refinancing, leasing, development and/or construction of, the Building;
(f) Cost of all insurance, including, without limitation, fire, casualty, liability 8) All insurance premiums and rental value insurance costs applicable to the Office Area of the Building and Landlord’s 's personal property used in connection with therewith, including but not limited to, the operation premiums and maintenance cost of the Office Area of the Buildingfire, casualty and liability coverage and rental abatement or business interruption insurance;
(g9) Cost of repairsRepairs (including, where necessary, replacements which do not constitute capital improvements) together with reasonable financing charges until the full cost of such repairs is repaid to Landlord by tenants in the Building (the reasonableness of such financing charges to be determined with reference to the rates then being offered by institutional lenders for such financing) and general maintenance (except for repairs the cost of which is paid for by, or would have been paid for by, the Office Area of the Building and each part thereof (excluding repairs, replacements and general maintenance paid by proceeds of insurance which Landlord is required to carry pursuant to Section 5.01 of this Lease or which are paid for directly by Tenant or other third parties, and except for alterations to the extent attributable solely to other tenants of the Office Area of the Building);
(h10) Snow removal, landscaping and any and all other common area maintenance costs related Capital improvements made to the Common Areas in the Office Area of the Building, including sidewalks and landscaping on replacements as amortized by Landlord in accordance with requirements governing the Building Site ; and
amortization of such capital improvements under the Internal Revenue Code, together with reasonable financing charges (the reasonableness of such financing charges to be determined with reference to the rates then being offered by institutional lenders for such financing) subsequent to the Completion Date which (i) Amortization over the anticipated useful life pursuant are designed to generally accepted accounting principles of capital improvements made to the Office Area of the Building subsequent to the commencement date of this Lease which may be required by governmental authorities or which and will improve the operating efficiency of the Office Area Building, or (ii) may be required by governmental authorities pursuant to applicable laws, ordinances or regulations subsequent to the approval of the Initial Tenant Improvement Plans (other than those which are required for the exclusive benefit of an individual tenant or tenants and not relating to the general use or operation of the Building); provided, however, that the amount of such amortization and financing charges for items in (i) above shall not exceed in any year the amount of costs reasonably determined by Landlord to have been saved in such year by the expenditure either through direct reduction or minimization of increases which would have otherwise occurred, and provided further that with respect to (ii) above, Landlord shall take reasonable steps to comply with such governmental requirements in the most economical manner.
(b) Notwithstanding any other provision herein to the contrary, in the event that the Building is not fully occupied during any year of the Term, an adjustment shall be made in computing those items constituting components of Operating Cost which vary depending on the level of occupancy of the Building for such year so that Operating Cost shall be extrapolated and computed as though the Building had been fully occupied during such year; provided, however, that in no event shall Landlord collect in total, from Tenant and all other tenants of the Building, an amount greater than one hundred percent (100%) of the actual Operating Cost during any year of the Term.
(c) Notwithstanding the foregoing, Operating Cost shall not include any costs and expenses excluded expressly by the provisions of subsection (a) above or any costs and expenses relating to:
(1) the management, maintenance, preservation or operation of (i) the Parking Section, (ii) the Commercial Section, to the extent constituting leasable space for tenants of the Commercial Section, and (iii) the Common Areas to the extent reasonably allocable to the Parking Section or the Commercial Section;
(2) any special needs or uses of tenants with respect to storage areas resulting in extraordinary costs or expenses in connection with maintaining, repairing and operating such storage areas;
(3) leasing commissions or tenants inducements associated with leasing activities;
(4) costs or improvements to any tenant's leased premises or otherwise exclusively for the benefit of an individual tenant;
(5) principal, interest, late charges or other payments on loans (except as provided in (a)(3), (a)(9) or (a)(10) above), ground rent, rent paid for the right to locate Project Common Areas or Loading Docks outside of the Building, or payments on equity obligations;
(6) costs of repairing, replacing or otherwise correcting defects in the design or construction of the Project, or design or construction defects in any leasehold improvements in rentable areas of the Building;
(7) leasing commissions, attorneys' fees, costs and disbursements and other expenses, any of which are incurred in connection with negotiations or disputes with tenants or prospective tenants, except with respect to disputes with other tenants the resolution of which is reasonably likely to result in a reduction material benefit to the tenants of the Project (other than costs incurred in connection with the lease termination and eviction of any tenant);
(8) depreciation and amortization of the Project or equipment, except as provided in (a)(3) and (a)(10) above;
(9) expenses in connection with services of a type which Tenant does not receive under this Lease but which are provided to another tenant;
(10) fines, penalties or indemnification obligations incurred due to violations by Landlord or Landlord Responsible Parties of any governmental rule or authority, or any agreement made in connection therewith with a governmental entity, and any costs of remedying such violations or defending the prosecution thereof (except for the costs of remedying such violations to the extent such costs are permitted Operating Costs pursuant to Section 2.04(a)(10));
(11) all amounts paid to principals, subsidiaries, affiliates or other parties related to Landlord for services for the Project in excess of the amount payable for comparable services provided by a party who is not a principal, subsidiary, affiliate or otherwise related party;
(12) costs and expenses to the extent related to the ownership (as distinguished from operation and maintenance, including the charges contemplated by (a)(2) above) of the Project;
(13) any particular items and services for which Tenant otherwise reimburses Landlord by direct payment over and above Base Rent and Tenant's Proportionate Share of Operating Cost.;
(j14) Cost advertising, marketing, promotional and like expenditures;
(15) costs of all refinancing the Project;
(16) interest or penalties resulting from delinquent payments by Landlord, provided such delinquent payments are not caused by Tenant;
(17) repairs or other work occasioned by fire, windstorm or other casualty to the extent covered by insurance required to be maintained carried by Landlord herein including but not limited to terrorism coveragehereunder, or by the exercise of the right of eminent domain, or voluntary conveyance in lieu thereof, to the extent not covered reimbursed by condemnation proceeds;
(f18) Landlord's costs of electricity and other services to the extent they are separately chargeable to tenants as an additional charge or rental over and above the regular installments of rent payable under the lease with such tenant;
(19) costs incurred by Landlord which are considered capital improvements and replacements under generally accepted accounting principles ("GAAP") including contributions to replacement or contingency reserves created by Landlord, except as provided in (a)(3) or (a)(10) above;
(20) any compensation paid to clerks, attendants, or other persons in commercial concessions operated by Landlord; and
(21) costs for the purchase of sculpture, paintings, or other objects of art, and any royalties payable in connection therewith; and
(22) the cost of any curative action required, or any repair, replacement or alteration made, by Landlord (or by a third party, the cost of which is imposed upon Landlord) to remedy a condition or damage caused by or resulting from the negligence or willful misconduct of Landlord or Landlord Responsible Parties, and, except to the extent such costs are permitted Operating Costs pursuant to Section 2.04(a)(10), the costs of complying with governmental or insurance requirements to the extent caused by a condition existing as of the date the Initial Tenant Improvement Plans are approved unless and to the extent caused by Tenant.
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Operating Cost. That portion of the Building that is designated as office space for purposes of this Lease is located on the second, third, fourth and fifth floors of the Building and includes approximately 98,216 square feet of Rentable Area (“"Office Area”"). Areas of the 1st floor shall not be deemed Office Area regardless of their use. In addition to the Basic Rent on the 5th Floor Space, Tenant shall pay each calendar year as part of the Rental Tenant’s 's Proportionate Share of the amount by which the Office Area Operating Cost, grossed up as if the Office Area of the Building were 100% occupied, for the Building in any calendar year exceeds the “"Basic Operating Cost” " of Five Hundred Eighty-Seven Thousand Three Hundred Thirty-One and 68/100 Dollars ($587,331.68); any such excess may be referred to herein as “"Excess Operating Cost.” " Landlord represents and warrants to Tenant that the Basic Operating Cost was grossed up as if the Office Area of the Building was 100% occupied. Except to the extent herein otherwise provided, the term “"Operating Cost” " as used herein shall mean all expenses and costs (but not Excluded Operating Expenses or specific costs which are separately billed to and paid or reimbursed by specific tenants) of every kind and nature which Landlord shall actually pay or incur because of or in connection with the ownership and operation of the Office Area of the Building during a calendar year, as determined by Landlord in accordance with generally accepted accounting principles, consistently applied, and with sound management practices generally accepted with respect to the operation and maintenance of first class office buildings in Xxxxxx County, Indiana (“"Comparable Office Buildings”"), including, but not limited to, the following:
(a) Wages, salaries, fringe benefit costs, payroll taxes, unemployment compensation payments, workmen’s 's compensation insurance premiums and other related expenses of all employees directly engaged in the operation, cleaning, maintenance and security of the Building; costs of Building employee uniforms and cleaning thereof; the cost of fair rental value of a Building management office; and the management fees payable by Landlord (excluding brokerage commissions for leasing) if management of the Building is contracted to a third party;
(b) All supplies and materials used in the operation, cleaning, maintenance and security of the Office Area of the Building and all of its machinery and equipment;
(c) Cost of utilities, including water and power for heating, lighting, air conditioning and ventilating the entire Office Area of the Building (including all common and service areas), fuel adjustment charges, sewer use charges and any utility taxes;
(d) Cost of all management, maintenance, security and service agreements for the Office Area of the Building and the equipment therein, including, without limitation, alarm service, trash removal, window cleaning and elevator maintenance;
(e) Accounting costs, including the costs of audits by certified public accountants, pertaining solely to the management and operation of the Office Area of the Building;
(f) Cost of all insurance, including, without limitation, fire, casualty, liability and rental value insurance applicable to the Office Area of the Building and Landlord’s 's personal property used in connection with the operation and maintenance of the Office Area of the Building;
(g) Cost of repairs, replacements and general maintenance of the Office Area of the Building and each part thereof (excluding repairs, replacements and general maintenance paid by proceeds of insurance or by Tenant or other third parties, and alterations attributable solely to other tenants of the Office Area of the Building);
(h) Snow removal, landscaping and any and all other common area maintenance costs related to the Common Areas in the Office Area of the Building, including sidewalks and landscaping on the Building Site ; and
(i) Amortization over the anticipated useful life pursuant to generally accepted accounting principles of capital improvements made to the Office Area of the Building subsequent to the commencement date of this Lease which may be required by governmental authorities or which will improve the operating efficiency of the Office Area of the Building resulting in a reduction of Operating Cost.
(j) Cost of all insurance required to be maintained by Landlord herein including but not limited to terrorism coverage, to the extent not covered by (f) above.
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Samples: Office Lease (ExactTarget, Inc.)
Operating Cost. That portion Escalation -- If the Operating Costs incurred for the Real Property for any Lease Year or Partial Lease Year during the Term will be greater than the Base Operating Costs (reduced proportionately to correspond to the duration of the Building that is designated periods less than a Lease Year), then Tenant will pay to Landlord, as office space for purposes Additional Rent, Tenant’s Percentage of this Lease is located on the secondall such excess Operating Costs. Operating Costs will include Landlord’s costs of maintaining, third, fourth repairing and fifth floors of operating the Building and includes approximately 98,216 square feet of Rentable Area (“Office Area”). Areas of the 1st floor shall not be deemed Office Area regardless of their use. In addition to the Basic Rent on the 5th Floor Space, Tenant shall pay each calendar year as part of the Rental Tenant’s Proportionate Share of the amount by which the Office Area Operating Cost, grossed up as if the Office Area of the Building were 100% occupied, for the Building in any calendar year exceeds the “Basic Operating Cost” of Five Hundred Eighty-Seven Thousand Three Hundred Thirty-One and 68/100 Dollars ($587,331.68); any such excess may be referred to herein as “Excess Operating Cost.” Landlord represents and warrants to Tenant that the Basic Operating Cost was grossed up as if the Office Area of the Building was 100% occupied. Except to the extent herein otherwise provided, the term “Operating Cost” as used herein shall mean all expenses and costs (but not Excluded Operating Expenses or specific costs which are separately billed to and paid or reimbursed by specific tenants) of every kind and nature which Landlord shall actually pay or incur because of or in connection with the ownership and operation of the Office Area of the Building during a calendar year, as determined by Landlord in accordance with generally accepted accounting principles, consistently applied, and with sound management practices generally accepted with respect to the operation and maintenance of first class office buildings in Xxxxxx County, Indiana (“Comparable Office Buildings”), Real Property including, but not limited to: personal property taxes; management fees (but not in excess of management fees charged by comparable owners of comparable buildings in Xxxxxx County, the following:
(a) WagesNew Jersey); labor, including all wages and salaries, fringe benefit costs, payroll taxes, unemployment compensation payments, workmen’s compensation insurance premiums ; social security and other related expenses of all employees directly engaged in the operation, cleaning, taxes which may be levied against Landlord upon such wages and salaries; supplies; repairs and maintenance; maintenance and security service contracts; painting; wall and window washing; tools and equipment (which are not required to be capitalized for federal income tax purposes); trash removal; lawn care; snow removal and all other items properly constituting direct operating costs according to standard accounting practices (collectively referred to as the “Operating Costs” in this Lease); but not including depreciation of the BuildingBuilding or equipment; interest; income or excess profits taxes; costs of Building employee uniforms and cleaning thereofmaintaining the Landlord’s corporate existence; franchise taxes; any expenditures required to be capitalized for federal income tax purposes, unless said expenditures are for the cost purpose of fair rental value of a Building management office; and reducing Operating Costs at the management fees payable Real Property, or those which under generally applied real estate practice are expensed or regarded as deferred expenses or are required under any Legal Requirement, in which event the costs thereof shall be included. Notwithstanding anything contained herein to the contrary, any additional costs incurred by Landlord (excluding brokerage commissions for leasing) if management during the Calendar Year by reason of the Building is contracted to a third party;
(b) All supplies and materials used in the operation, cleaning, maintenance and security of the Office Area of the Building and all Landlord or any of its machinery and equipment;
(c) Cost vendors entering into new labor contracts or renewals or modifications of utilitiesexisting labor contracts will not be included in Base Operating Costs. In addition, including water and power for heating, lighting, air conditioning and ventilating the entire Office Area of the Building (including all common and service areas), fuel adjustment charges, sewer use charges and any utility taxes;
(d) Cost Tenant will pay Landlord Tenant’s Percentage of all management, maintenance, security costs and service agreements for the Office Area of the Building and the equipment therein, including, without limitation, alarm service, trash removal, window cleaning and elevator maintenance;
(e) Accounting costs, including the costs of audits expenses incurred by certified public accountants, pertaining solely to the management and operation of the Office Area of the Building;
(f) Cost of all insurance, including, without limitation, fire, casualty, liability and rental value insurance applicable to the Office Area of the Building and Landlord’s personal property used Landlord in connection with the operation complying with any “homeland security” requirements and maintenance of the Office Area of the Building;
(g) Cost of repairs, replacements such costs and general maintenance of the Office Area of the Building and each part thereof (excluding repairs, replacements and general maintenance paid by proceeds of insurance or by Tenant or other third parties, and alterations attributable solely to other tenants of the Office Area of the Building);
(h) Snow removal, landscaping and any and all other common area maintenance costs related to the Common Areas expenses will not be included in the Office Area of the Building, including sidewalks and landscaping on the Building Site ; and
(i) Amortization over the anticipated useful life pursuant to generally accepted accounting principles of capital improvements made to the Office Area of the Building subsequent to the commencement date of this Lease which may be required by governmental authorities or which will improve the operating efficiency of the Office Area of the Building resulting in a reduction of Operating CostCosts.
(j) Cost of all insurance required to be maintained by Landlord herein including but not limited to terrorism coverage, to the extent not covered by (f) above.
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Operating Cost. That portion of Escalation – Commencing on January 1, 2014, if the Building that is designated as office space Operating Costs incurred for purposes of this the Real Property for any Lease is located on Year or Partial Lease Year during the second, third, fourth and fifth floors of Term will be greater than the Building and includes approximately 98,216 square feet of Rentable Area Base Operating Costs (“Office Area”). Areas of the 1st floor shall not be deemed Office Area regardless of their use. In addition reduced proportionately to correspond to the Basic Rent on duration of periods less than a Lease Year), then Tenant will pay to Landlord, as Additional Rent, Tenant's Percentage of all such excess Operating Costs. Operating Costs will include, by way of illustration and not of limitation: personal property taxes; management fees as are reasonable and customary in the 5th Floor SpaceXxxxxx County area; labor for Building personnel up to the level of Senior Property Manager, Tenant shall pay each calendar year including all wages and salaries; social security and other taxes which may be levied against Landlord upon such wages and salaries; supplies; repairs and maintenance; maintenance and service contracts; painting; wall and window washing; tools and equipment (which are not required to be capitalized for federal income tax purposes); trash removal; lawn care; snow removal and all other items properly constituting direct operating costs according to standard accounting practices (collectively referred to as the “Operating Costs” in this Lease); but not including any expense that would otherwise be included as part of the Rental Tenantmanagement fee billed hereunder; depreciation of Building or equipment; interest, ground rent, financing costs or debt service costs; income or excess profits taxes; costs of maintaining the Landlord’s Proportionate Share corporate existence; franchise taxes; costs and expenses which are attributable to repairs or replacements to the extent covered by insurance or warranties, or are otherwise paid for by a third party; any expenditures required to be capitalized for federal income tax purposes, unless said expenditures are for the purpose of reducing Operating Costs at the amount Real Property, or those which under generally applied real estate practice are expensed or regarded as deferred expenses or are required under any Legal Requirement, and in either event the costs thereof shall be included to the extent set forth herein below; operating reserves; any repairs or replacements necessitated by which the Office Area Operating CostLandlord’s negligence or willful acts; Real Estate Taxes; brokerage expenses, grossed up as if the Office Area marketing expenses, work done to prepare space for tenant occupancy, rent concessions, construction allowances; services provided for a particular tenant or occupant of the Building were 100% occupied, for the Building in any calendar year exceeds the “Basic Operating Cost” of Five Hundred Eighty-Seven Thousand Three Hundred Thirty-One and 68/100 Dollars ($587,331.68); any such excess may be referred to herein as “Excess Operating Cost.” Landlord represents and warrants to Tenant that the Basic Operating Cost was grossed up as if the Office Area of the Building was 100% occupied. Except to the extent herein otherwise provided, the term “Operating Cost” as used herein shall mean all expenses and costs (but not Excluded Operating Expenses or specific costs which are separately billed otherwise available to and paid or reimbursed by specific tenants) of every kind and nature which Landlord shall actually pay or incur because of or in connection with the ownership and operation of the Office Area of the Building during a calendar year, as determined by Landlord in accordance with generally accepted accounting principles, consistently applied, and with sound management practices generally accepted with respect to the operation and maintenance of first class office buildings in Xxxxxx County, Indiana (“Comparable Office Buildings”), including, but not limited to, the following:
(a) Wages, salaries, fringe benefit costs, payroll taxes, unemployment compensation payments, workmen’s compensation insurance premiums and other related expenses of all employees directly engaged in the operation, cleaning, maintenance and security tenants of the Building; costs of Building employee uniforms and cleaning thereofcomplying with Legal Requirements, except as expressly permitted herein; interest, late charges or penalties incurred as a result of Landlord’s failure to pay bills in a timely manner; the cost of fair rental value of a Building management office; and the management fees payable by Landlord investigating, monitoring or remedying any environmental condition or hazardous substances (excluding brokerage commissions for leasing) if management of the Building is contracted routine monitoring); any expenses which are included within any other charge payable under this Lease; expenses related to a third party;
(b) All supplies and materials used in the operation, cleaningrepair and maintenance of any cafeteria or other, maintenance and security similar type of Building amenity (excluding the Office Area of the Building and all of its machinery and equipment;
fitness center); costs incurred in connection with lawsuits or other legal actions (c) Cost of utilities, including water and power for heating, lighting, air conditioning and ventilating the entire Office Area of the Building (including all common and service areas), fuel adjustment charges, sewer use charges and any utility taxes;
(d) Cost of all management, maintenance, security and service agreements for the Office Area of the Building and the equipment therein, including, without limitation, alarm service, trash removal, window cleaning arbitrations and elevator maintenance;
(emediations) Accounting costs, including the instituted or defended by Landlord; and costs and expenses payable to Landlord or any affiliate of audits by certified public accountants, pertaining solely to the management and operation of the Office Area of the Building;
(f) Cost of all insurance, including, without limitation, fire, casualty, liability and rental value insurance applicable to the Office Area of the Building and Landlord’s personal property used in connection with the operation and maintenance of the Office Area of the Building;
(g) Cost of repairs, replacements and general maintenance of the Office Area of the Building and each part thereof (excluding repairs, replacements and general maintenance paid by proceeds of insurance or by Tenant or other third parties, and alterations attributable solely to other tenants of the Office Area of the Building);
(h) Snow removal, landscaping and any and all other common area maintenance costs related to the Common Areas in the Office Area of the Building, including sidewalks and landscaping on the Building Site ; and
(i) Amortization over the anticipated useful life pursuant to generally accepted accounting principles of capital improvements made to the Office Area of the Building subsequent to the commencement date of this Lease which may be required by governmental authorities or which will improve the operating efficiency of the Office Area of the Building resulting in a reduction of Operating Cost.
(j) Cost of all insurance required to be maintained by Landlord herein including but not limited to terrorism coverage, to the extent not covered that such costs and expenses exceed competitive costs and expenses for materials and services by unrelated persons or entities of similar skill and experience. If any of the goods or services to be provided by Landlord are provided to buildings and properties other than the Real Property, then Landlord shall make an equitable allocation of such goods and services among all of the buildings and properties benefiting from such goods and services, and only the portion allocable to the Real Property shall be included in Operating Costs. If any item within the definition of Operating Costs is capitalized under generally accepted accounting principles, then: (fA) abovethe cost of any such item shall only be included in Operating Costs if such repair, replacement or improvement (i) is necessary to comply with any governmental or quasi-governmental law, statute, ordinance, rule, order, requirements or regulation, which is enacted or promulgated after the date hereof, (ii) is reasonably intended to reduce Operating Costs, or (iii) constitutes a replacement which in Landlord's reasonable judgment is economically prudent to make in lieu of repairs; (B) the cost thereof shall be amortized on a straight-line basis over the lesser of ten (10) years, or the useful life of such item; and (C) there shall be included in Operating Costs in each Lease Year such portion of the amortization period which occurs during the Term; provided, however, that all amounts thereof included in Operating Costs in any Lease Year subsequent to the year paid shall have added thereto interest (at the rate equal to two (2) percentage points in excess of the prime rate as established by Chase Manhattan Bank, or its successor) from the date Landlord incurred such cost.
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Operating Cost. That Lessee shall pay no portion of the Building that Shopping Center Remainder’s operating or any other costs. Any amount owed by Lessee to Lessor which is designated not paid when due shall bear interest from the due date of such amount at the lower of (i) ten percent (10%) per annum, or (ii) the maximum legal interest rate permitted by law. However; interest shall not be payable on late charges to be paid by Lessee under this Lease. The payment of interest on such amounts shall not excuse or cure any default by Lessee under this Lease. Except as office space for purposes set forth in Section 00 of this Lease is Lease, Lessee, at its sole cost and expense, will obtain all applicable governmental approvals and will, at Lessee’s sole cost and expense, cause all existing improvements located on the secondProperty to be demolished and will cause to be constructed, thirdat Lessee’s sole cost and expense, fourth improvements, in a good and fifth floors workmanlike and lien-free manner, on and adjacent to the Property consisting of grading, paving, lighting and landscaping necessary or beneficial to convert the Building Property to its intended use as a parking lot and includes approximately 98,216 square feet of Rentable Area for ingress and egress to adjacent property owned or leased by Lessee and the Shopping Center Remainder, other parking areas, pedestrian walkways and landscaping, consistent with the Preliminary Plans and Specifications and Preliminary Cost Estimates (the “Office AreaPreliminary Plans and Specifications”),which are attached hereto as Exhibit C and by this reference made a part hereof (the “Improvements”). Areas Subject to Lessor’s consent set forth in Section 3.10 of this Lease, the 1st floor Improvements shall not be deemed Office Area regardless of their use. In addition conform to the Basic Rent on the 5th Floor Space, Tenant Preliminary Plans and Specifications unless modification is necessary to comply with local building codes or other requirements of local municipalities. Lessor shall cause to be remediated and shall pay each calendar year as part of the Rental Tenant’s Proportionate Share of the amount by which the Office Area Operating Costall costs and expenses associated with, grossed up as if the Office Area of the Building were 100% occupied, for the Building in arising from or related to any calendar year exceeds the “Basic Operating Cost” of Five Hundred Eighty-Seven Thousand Three Hundred Thirty-One and 68/100 Dollars ($587,331.68); any such excess may be referred to herein as “Excess Operating Cost.” Landlord represents and warrants to Tenant that the Basic Operating Cost was grossed up as if the Office Area of the Building was 100% occupied. Except to the extent herein otherwise provided, the term “Operating Cost” as used herein shall mean all expenses and costs (but not Excluded Operating Expenses required or specific costs which are separately billed to and paid or reimbursed by specific tenants) of every kind and nature which Landlord shall actually pay or incur because of or in connection with the ownership and operation of the Office Area of the Building during a calendar year, as determined by Landlord in accordance with generally accepted accounting principles, consistently applied, and with sound management practices generally accepted beneficial asbestos remediation with respect to the operation and maintenance of first class office buildings in Xxxxxx County, Indiana (“Comparable Office Buildings”), including, but not limited to, the following:
(a) Wages, salaries, fringe benefit costs, payroll taxes, unemployment compensation payments, workmen’s compensation insurance premiums and other related expenses of all employees directly engaged in the operation, cleaning, maintenance and security demolition of the Building; costs of Building employee uniforms and cleaning thereof; current improvements on the cost of fair rental value of a Building management office; Property. At Lessor’s cost, Lessor shall promptly cause the Property and the management fees payable by Landlord Fountain Property to be legally subdivided and separated from the Shopping Center (excluding brokerage commissions for leasing) if management of the Building is contracted to a third party;
(b) All supplies and materials used in the operation, cleaning, maintenance and security of the Office Area of the Building and all of its machinery and equipment;
(c) Cost of utilities, including water and power for heating, lighting, air conditioning and ventilating the entire Office Area of the Building (including all common and service areas), fuel adjustment charges, sewer use charges and any utility taxes;
(d) Cost of all management, maintenance, security and service agreements for the Office Area of the Building and the equipment therein, including, without limitation, alarm service, trash removal, window cleaning and elevator maintenance;
(e) Accounting costs, including the costs of audits by certified public accountants, pertaining solely to the management and operation of the Office Area of the Building;
(f) Cost of all insurance, including, without limitation, fire, casualty, liability and rental value insurance applicable to the Office Area of the Building and Landlord’s personal property used in connection with the operation and maintenance of the Office Area of the Building;
(g) Cost of repairs, replacements and general maintenance of the Office Area of the Building and each part thereof (excluding repairs, replacements and general maintenance paid by proceeds of insurance or by Tenant or other third parties, and alterations attributable solely to other tenants of the Office Area of the Building);
(h) Snow removal, landscaping and any and all other common area maintenance costs related to the Common Areas in the Office Area of the Building, including sidewalks and landscaping on the Building Site ; and
(i) Amortization over the anticipated useful life pursuant to generally accepted accounting principles of capital improvements made to the Office Area of the Building subsequent to the commencement date of this Lease which may be required by governmental authorities or which will improve the operating efficiency of the Office Area of the Building resulting in a reduction third parcel which will be the Shopping Center Remainder), and shall obtain a separate assessor’s parcel number and separate Real Property Tax billing for each of Operating Cost.
the three (j3) Cost of all insurance required to be maintained by Landlord herein including but not limited to terrorism coverage, subdivided parcels. Lessee and Lessor have approved and agreed upon the Preliminary Plans and Specifications for the Improvements to the extent not covered by (f) aboveProperty.
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