Common use of Operating Cost Clause in Contracts

Operating Cost. Escalation – Commencing on January 1, 2014, 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 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 Xxxxxx County area; labor for Building personnel up to the level of Senior Property Manager, 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 management 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 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 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 Landlord’s negligence or willful acts; Real Estate Taxes; brokerage expenses, 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 but not otherwise available to all tenants of the Building; costs of complying 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 investigating, monitoring or remedying any environmental condition or hazardous substances (excluding routine monitoring); any expenses which are included within any other charge payable under this Lease; expenses related to the operation, repair and maintenance of any cafeteria or other, similar type of Building amenity (excluding the fitness center); costs incurred in connection with lawsuits or other legal actions (including, without limitation, arbitrations and mediations) instituted or defended by Landlord; and costs and expenses payable to Landlord or any affiliate of Landlord, to the extent 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: (A) the 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.

Appears in 1 contract

Samples: Short Form Lease (Cover All Technologies Inc)

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Operating Cost. Escalation – Commencing That portion of the Building that is designated as office space for purposes of this Lease is located on January 1the second, 2014third, if fourth and fifth floors of the Operating Costs incurred for Building and includes approximately 98,216 square feet of Rentable Area ("Office Area"). Areas of the Real Property for any Lease Year or Partial Lease Year during the Term will 1st floor shall not be greater than the Base Operating Costs (reduced proportionately to correspond deemed Office Area regardless of their use. In addition to the duration of periods less than a Lease Year)Basic Rent on the 5th Floor Space, then Tenant will shall 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 Xxxxxx County area; labor for Building personnel up to the level of Senior Property Manager, 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 each calendar year as part of the management fee billed hereunderRental 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); depreciation 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 or equipment; interest, ground rent, financing costs or debt service costs; income or excess profits taxes; costs of maintaining the Landlord’s corporate existence; franchise taxes; costs and expenses which are attributable to repairs or replacements was 100% occupied. Except to the extent covered 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 insurance specific tenants) of every kind and nature which Landlord shall actually pay or warranties, incur because of 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 in connection with the purpose ownership and operation of reducing Operating Costs at the 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 Landlord’s negligence or willful acts; Real Estate Taxes; brokerage expenses, marketing expenses, work done to prepare space for tenant occupancy, rent concessions, construction allowances; services provided for a particular tenant or occupant 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 otherwise available to 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 tenants employees directly engaged in the operation, cleaning, maintenance and security of the Building; costs of complying 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 mannerBuilding employee uniforms and cleaning thereof; the cost of investigating, monitoring or remedying any environmental condition or hazardous substances fair rental value of a Building management office; and the management fees payable by Landlord (excluding routine monitoring); any expenses which are included within any other charge payable under this Lease; expenses related brokerage commissions for leasing) if management of the Building is contracted to a third party; (b) All supplies and materials used in the operation, repair cleaning, maintenance and maintenance 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 cafeteria or otherutility taxes; (d) Cost of all management, similar type maintenance, security and service agreements for the Office Area of the Building amenity (excluding and the fitness center); costs incurred in connection with lawsuits or other legal actions (equipment therein, including, without limitation, arbitrations alarm service, trash removal, window cleaning and mediationselevator maintenance; (e) instituted 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 defended by LandlordTenant 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 costs and expenses payable 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 or any affiliate of Landlordherein including but not limited to terrorism coverage, to the extent that such costs and expenses exceed competitive costs and expenses for materials and services not covered 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: (Af) the 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 costabove.

Appears in 1 contract

Samples: Office Lease (ExactTarget, Inc.)

Operating Cost. Escalation – Commencing For the purpose of this Section 4.5, the term “Operating Cost” means the total cost and expense incurred in connection with the 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 January 1the Site Plan attached hereto that are not owned by Landlord but are maintained by Landlord pursuant to that certain Declaration of Covenants, 2014, if the Operating Costs incurred Conditions and Establishment of Restrictions and Grant of Easements 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 periods less than a Lease Year), then Tenant will pay to LandlordMcQueen Crossings Shopping Center, as Additional Rentamended from time to time) including, Tenant's Percentage without limitation, general maintenance and repair of all such excess Operating Costs. Operating Costs will includeimprovements; expenses incurred by Landlord under Section 12.3 and Section 12.4 hereof; gardening and landscaping; snow, by way of illustration water and not of limitation: personal ice removal and control; security services; liability, property taxes; management fees as are reasonable and customary in the Xxxxxx County area; labor for Building personnel up to the level of Senior Property Manager, 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 damage and all other items properly constituting direct operating costs according 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 standard accounting practices exceed five percent (collectively referred to as the “Operating Costs” in this Lease5%) of gross Shopping Center rents); but not 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 any expense that would otherwise 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 part an Operating Cost: items for which the responsibility of repairing or maintaining or replacement is the management fee billed hereunder; depreciation direct responsibility of Building or equipment; interest, ground rent, financing costs or debt service costs; income or excess profits taxes; costs of maintaining the Landlord’s 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 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 Landlord’s negligence or willful acts; Real Estate Taxes; brokerage expenses, marketing expenses, work done to prepare space for tenant occupancy, rent concessions, construction allowances; services provided for a particular tenant under their respective lease with Landlord, amounts reimbursed by insurance proceeds, or occupant of the Building but not otherwise available warranties; utilities or other expenses paid directly by tenants to all tenants of the Buildingsuppliers; costs of complying with Legal Requirementsground rents; payments on any mortgage, except as expressly permitted hereinor deed-of-trust; interest, late charges or penalties incurred as a result of Landlord’s failure to pay bills in a timely mannerleasing commissions; the cost of investigatingnegotiating or enforcing leases of other tenants; fines, monitoring penalties, and late fees or remedying 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 business of the partnership or entity that constitutes Landlord as the same are distinguished from the costs of operation of the Shopping Center, including partnership accounting and legal matters, costs of defending any environmental condition lawsuits with any mortgage, costs of selling, syndicating, financing, mortgaging or hazardous substances (excluding routine monitoring); hypothecating any expenses which are included within of Landlord’s interest in the Shopping Center or any other charge payable under this Lease; expenses related to the operationpart thereof, repair and maintenance costs of any cafeteria disputes between Landlord and its employees, disputes of Landlord with Shopping Center management or otherpersonnel, similar type or outside fees paid in connection with disputes with other tenants; costs incurred in removing and storing the property of Building amenity (excluding former tenants or occupants of the fitness center)Shopping Center; lease “takeover” expenses, including, but not limited to, the expenses incurred by Landlord with respect to space located in another building of the Shopping Center of any kind or nature in connection with the leasing of space in the Shopping Center; costs incurred in connection with lawsuits the original construction of the Shopping Center, or; any costs, fees, dues, contributions or other legal actions (including, without limitation, arbitrations and mediations) instituted or defended by Landlord; and costs and expenses payable to Landlord or any affiliate of Landlord, to the extent that such costs and expenses exceed competitive costs and similar expenses for materials and services by unrelated persons industry associations 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: (A) the 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 costorganizations.

Appears in 1 contract

Samples: Lease Agreement (Bank Holdings)

Operating Cost. Escalation – Commencing That portion of the Building that is designated as office space for purposes of this Lease is located on January 1the second, 2014third, if fourth and fifth floors of the Operating Costs incurred for Building and includes approximately 98,216 square feet of Rentable Area (“Office Area”). Areas of the Real Property for any Lease Year or Partial Lease Year during the Term will 1st floor shall not be greater than the Base Operating Costs (reduced proportionately to correspond deemed Office Area regardless of their use. In addition to the duration of periods less than a Lease Year)Basic Rent on the 5th Floor Space, then Tenant will shall 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 Xxxxxx County area; labor for Building personnel up to the level of Senior Property Manager, 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 each calendar year as part of the management fee billed hereunderRental 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); depreciation 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 or equipment; interest, ground rent, financing costs or debt service costs; income or excess profits taxes; costs of maintaining the Landlord’s corporate existence; franchise taxes; costs and expenses which are attributable to repairs or replacements was 100% occupied. Except to the extent covered 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 insurance specific tenants) of every kind and nature which Landlord shall actually pay or warranties, incur because of 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 in connection with the purpose ownership and operation of reducing Operating Costs at the 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 Landlord’s negligence or willful acts; Real Estate Taxes; brokerage expenses, marketing expenses, work done to prepare space for tenant occupancy, rent concessions, construction allowances; services provided for a particular tenant or occupant 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 otherwise available to 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 tenants employees directly engaged in the operation, cleaning, maintenance and security of the Building; costs of complying 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 mannerBuilding employee uniforms and cleaning thereof; the cost of investigating, monitoring or remedying any environmental condition or hazardous substances fair rental value of a Building management office; and the management fees payable by Landlord (excluding routine monitoring); any expenses which are included within any other charge payable under this Lease; expenses related brokerage commissions for leasing) if management of the Building is contracted to a third party; (b) All supplies and materials used in the operation, repair cleaning, maintenance and maintenance 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 cafeteria or otherutility taxes; (d) Cost of all management, similar type maintenance, security and service agreements for the Office Area of the Building amenity (excluding and the fitness center); costs incurred in connection with lawsuits or other legal actions (equipment therein, including, without limitation, arbitrations alarm service, trash removal, window cleaning and mediationselevator maintenance; (e) instituted 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 defended by LandlordTenant 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 costs and expenses payable 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 or any affiliate of Landlordherein including but not limited to terrorism coverage, to the extent that such costs and expenses exceed competitive costs and expenses for materials and services not covered 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: (Af) the 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 costabove.

Appears in 1 contract

Samples: Office Lease (ExactTarget, Inc.)

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Operating Cost. Escalation – Commencing on January 1, 2014, if -- 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 periods less than a Lease Year), then Tenant will pay to Landlord, as Additional Rent, Tenant's ’s Percentage of all such excess Operating Costs. Operating Costs will includeinclude Landlord’s costs of maintaining, by way of illustration repairing and operating the Building and the Real Property including, but not of limitationlimited to: personal property taxes; management fees as are reasonable and customary (but not in the excess of management fees charged by comparable owners of comparable buildings in Xxxxxx County areaCounty, New Jersey); labor for Building personnel up to the level of Senior Property Managerlabor, 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 management 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 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 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 which event the costs thereof shall be included included. Notwithstanding anything contained herein to the extent set forth herein below; operating reserves; contrary, any repairs or replacements necessitated by Landlord’s negligence or willful acts; Real Estate Taxes; brokerage expenses, 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 but not otherwise available to all tenants of the Building; costs of complying 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 investigating, monitoring or remedying any environmental condition or hazardous substances (excluding routine monitoring); any expenses which are included within any other charge payable under this Lease; expenses related to the operation, repair and maintenance of any cafeteria or other, similar type of Building amenity (excluding the fitness center); additional costs incurred by Landlord during the Calendar Year by reason of Landlord or any of its vendors entering into new labor contracts or renewals or modifications of existing labor contracts will not be included in Base Operating Costs. In addition, Tenant will pay Landlord Tenant’s Percentage of all costs and expenses incurred by Landlord in connection with lawsuits or other legal actions (including, without limitation, arbitrations complying with any “homeland security” requirements and mediations) instituted or defended by Landlord; and costs and expenses payable to Landlord or any affiliate of Landlord, to the extent 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 will not be included in Operating Costs. If any item within the definition of Operating Costs is capitalized under generally accepted accounting principles, then: (A) the 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.

Appears in 1 contract

Samples: Short Form Lease (Arno Therapeutics, Inc)

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