Operating Costs; Taxes. (1) Tenant shall pay all Operating Costs (defined below) respecting the Premises ("ADDITIONAL RENT") and its Proportionate Share of Operating Costs relating to the Building attributable to any period included in the Term according to the terms of this Section 4.(b). Landlord may make a good faith estimate of the Additional Rent to be due by Tenant for any calendar year or part thereof during the Term, and Tenant shall pay to Landlord, on the Commencement Date and on the first day of each calendar month thereafter, an amount equal to the estimated Additional Rent for such calendar year or part thereof divided by the number of months in such year or partial years. From time to time, Landlord may reasonably estimate and re-estimate the Additional Rent to be due by Tenant and deliver a copy of the estimate or re-estimate to Tenant. Thereafter, the monthly installments of Additional Rent payable by Tenant shall be appropriately adjusted in accordance with the estimations so that, by the end of the calendar year in question, Tenant shall have paid all of the Additional Rent as reasonably estimated by Landlord for such calendar year. Any amounts paid based on such an estimate shall be subject to adjustment as herein provided when actual Operating Costs are available for each calendar year. (2) The term "OPERATING COSTS" shall mean all expenses and disbursements (subject to the limitations set forth below) that Landlord incurs in connection with the ownership, operation, and maintenance of the Building, consistently applied, including, but not limited to, the following costs: (A) wages and salaries (including management fees, which management fees shall not exceed fair market management fees in comparable buildings in the Greater Boston area) of all employees at or below the level of building manager engaged in the operation, maintenance, and security of the Building, including taxes, insurance and benefits relating thereto; (B) all supplies and materials used in the operation, maintenance, and security of the Building; (C) costs for improvements made to the Building which, although capital in nature, are expected to reduce the normal operating costs (including all utility costs) of the Building, as well as capital improvements made in order to comply with any law hereafter promulgated by any governmental authority, as amortized over the useful economic life of such improvements as determined by Landlord in its reasonable discretion (with only the annual amortized portion of such costs being included in Operating Costs in any calendar year); (D) cost of all utilities, except the cost of utilities reimbursable to Landlord by the Building's tenants other than pursuant to a provision similar to this Section 4. (b); (E) insurance expenses; (F) repairs, replacements, and general maintenance of the Building; and (G) service or maintenance contracts with independent contractors for the operation, maintenance, repair, replacement, or security of the Building (including, without limitation, alarm service, window cleaning, and elevator maintenance). Notwithstanding any other provision of this Lease, Operating Costs shall not include costs for (i) capital improvements made to the Building, other than capital improvements described in Section 4.(b)(2)(C) and except for items which are generally considered maintenance and repair items, such as painting of common areas, replacement of carpet in elevator lobbies, and the like; (ii) repair, replacements and general maintenance and other expenses paid by proceeds of insurance or by Tenant or other third parties; (iii) interest, amortization of principal or other payments on loans to Landlord and rent and other sums due under a ground lease or master lease relating to the Premises; (iv) depreciation; (v) leasing commissions; (vi) legal expenses for services, other than those that benefit the Building tenants generally (e.g., tax disputes); (vii) renovating or otherwise improving space for occupants of the Building or vacant space in the Building; (viii) Taxes (defined below); (ix) income taxes imposed on or measured by the income of Landlord from the operation of the Building; (x) the cost of repairs necessary to cure any latent defect in the initial construction of the Building; (xi) Landlord's general overhead except as it relates specifically to the management or operations of the Building; (xii) any cost necessary to cure any violation of any law, ordinance or regulation applicable to the Building existing as of the date of this Lease or to investigate, test, contain and/or remediate the presence of Hazardous Materials or other environmental conditions existing as of the date of this Lease (in each case, to the extent not caused or exacerbated by any Tenant Party); (xiii) costs of repairs and replacements arising out of a fire or other casualty or an exercise of eminent domain affecting the Building or the Land, except for the deductibles under policies of insurance carried by Landlord; (xiv) compensation for executives or officers or other employees of Landlord above the level of the building manager; (xv) expenses arising from the gross negligence or willful misconduct of Landlord or its agents, employees or contractors; (xvi) all expenses and disbursements relating solely to the ownership, operation and maintenance of the second building (other than the Premises and the Building common areas) in the two-building complex comprising the Building; and (xvii) rent loss insurance.
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Samples: Lease Agreement (Evergreen Solar Inc), Lease Agreement (Evergreen Solar Inc)
Operating Costs; Taxes. (1) Tenant shall pay all to Landlord the amount (per each rentable square foot in the Premises) (“Additional Rent”) by which the annual Operating Costs (defined below) respecting per rentable square foot in the Premises Building exceed the Expense Stop ("ADDITIONAL RENT") and its Proportionate Share of per rentable square foot in the Building); provided, however, Landlord agrees that increases in the Controllable Operating Costs relating will not exceed five percent (5%) per year, on a cumulative and compounding basis. As used in this Lease, “Controllable Operating Costs” means all Operating Costs other than taxes, insurance, utilities, snow removal and other weather-related costs, and costs incurred to the Building attributable to any period included in the Term according to the terms of this Section 4.(b)comply with governmental requirements. Landlord may make a good faith estimate of the Additional Rent to be due by Tenant for any calendar year or part thereof during the Term. During each calendar year or partial calendar year of the Term (after the base year, and if the Expense Stop is calculated on a base year basis), Tenant shall pay to Landlord, on the Commencement Date and on the first day in advance concurrently with each monthly installment of each calendar month thereafterBasic Rent, an amount equal to the estimated Additional Rent for such calendar year or part thereof divided by the number of months in such year or partial yearstherein. From time to time, but not more than two (2) occasions per calendar year, Landlord may reasonably estimate and re-estimate the Additional Rent to be due by Tenant Xxxxxx and deliver a copy of the estimate or re-estimate to Tenant. Thereafter, the monthly installments of Additional Rent payable by Tenant shall be appropriately adjusted in accordance with the estimations so that, by the end of the calendar year in question, Tenant shall have paid all of the Additional Rent as reasonably estimated by Landlord for such calendar yearLandlord. Any amounts paid based on such an estimate shall be subject to adjustment as herein provided when actual Operating Costs are available for each calendar year.
(2) The term "OPERATING COSTS" shall mean all expenses and disbursements (subject to the limitations set forth below) that Landlord incurs in connection with the ownership, operation, and maintenance of the Building, consistently applied, including, but not limited to, the following costs: (A) wages and salaries (including management fees, which management fees shall not exceed fair market management fees in comparable buildings in the Greater Boston area) of all employees at or below the level of building manager engaged in the operation, maintenance, and security of the Building, including taxes, insurance and benefits relating thereto; (B) all supplies and materials used in the operation, maintenance, and security of the Building; (C) costs for improvements made to the Building which, although capital in nature, are expected to reduce the normal operating costs (including all utility costs) of the Building, as well as capital improvements made in order to comply with any law hereafter promulgated by any governmental authority, as amortized over the useful economic life of such improvements as determined by Landlord in its reasonable discretion (with only the annual amortized portion of such costs being included in Operating Costs in any calendar year); (D) cost of all utilities, except the cost of utilities reimbursable to Landlord by the Building's tenants other than pursuant to a provision similar to this Section 4. (b); (E) insurance expenses; (F) repairs, replacements, and general maintenance of the Building; and (G) service or maintenance contracts with independent contractors for the operation, maintenance, repair, replacement, or security of the Building (including, without limitation, alarm service, window cleaning, and elevator maintenance). Notwithstanding any other provision of this Lease, Operating Costs shall not include costs for (i) capital improvements made to the Building, other than capital improvements described in Section 4.(b)(2)(C) and except for items which are generally considered maintenance and repair items, such as painting of common areas, replacement of carpet in elevator lobbies, and the like; (ii) repair, replacements and general maintenance and other expenses paid by proceeds of insurance or by Tenant or other third parties; (iii) interest, amortization of principal or other payments on loans to Landlord and rent and other sums due under a ground lease or master lease relating to the Premises; (iv) depreciation; (v) leasing commissions; (vi) legal expenses for services, other than those that benefit the Building tenants generally (e.g., tax disputes); (vii) renovating or otherwise improving space for occupants of the Building or vacant space in the Building; (viii) Taxes (defined below); (ix) income taxes imposed on or measured by the income of Landlord from the operation of the Building; (x) the cost of repairs necessary to cure any latent defect in the initial construction of the Building; (xi) Landlord's general overhead except as it relates specifically to the management or operations of the Building; (xii) any cost necessary to cure any violation of any law, ordinance or regulation applicable to the Building existing as of the date of this Lease or to investigate, test, contain and/or remediate the presence of Hazardous Materials or other environmental conditions existing as of the date of this Lease (in each case, to the extent not caused or exacerbated by any Tenant Party); (xiii) costs of repairs and replacements arising out of a fire or other casualty or an exercise of eminent domain affecting the Building or the Land, except for the deductibles under policies of insurance carried by Landlord; (xiv) compensation for executives or officers or other employees of Landlord above the level of the building manager; (xv) expenses arising from the gross negligence or willful misconduct of Landlord or its agents, employees or contractors; (xvi) all expenses and disbursements relating solely to the ownership, operation and maintenance of the second building (other than the Premises and the Building common areas) in the two-building complex comprising the Building; and (xvii) rent loss insurance.
Appears in 1 contract
Operating Costs; Taxes. (1) Tenant shall pay all to Landlord the amount (per each rentable square foot in the Premises) ("Additional Rent") by which the annual Operating Costs (defined below) respecting the Premises ("ADDITIONAL RENT") and its Proportionate Share of Operating Costs relating to per rentable square foot in the Building attributable to any period included exceed the Expense Stop (per rentable square foot in the Term according to the terms of this Section 4.(bBuilding). Landlord may make a good faith estimate of the Additional Rent to be due by Tenant for any calendar year or part thereof during the Term. During each calendar year or partial calendar year of the Term (after the base year, and if the Expense Stop is calculated on a base year basis), Tenant shall pay to Landlord, on the Commencement Date and on the first day in advance concurrently with each monthly installment of each calendar month thereafterBasic Rent, an amount equal to the estimated Additional Rent for such calendar year or part thereof divided by the number of months in such year or partial yearstherein. From time to time, Landlord may reasonably estimate and re-estimate the Additional Rent to be due by Tenant and deliver a copy of the estimate or re-estimate to Tenant. Thereafter, the monthly installments of Additional Rent payable by Tenant shall be appropriately adjusted in accordance with the estimations so that, by the end of the calendar year in question, Tenant shall have paid all of the Additional Rent as reasonably estimated by Landlord for such calendar yearLandlord. Any amounts paid based on such an estimate shall be subject to adjustment as herein provided when actual Operating Costs are available for each calendar year.
(2) The term "OPERATING COSTSOperating Costs" shall mean means all expenses and disbursements (subject to the limitations set forth below) that Landlord incurs in connection with the ownership, operation, and maintenance of the BuildingProject, determined in accordance with sound accounting principles consistently applied, including, but not limited to, including the following costs: (A) wages and salaries (including management fees, which management fees shall not exceed fair market management fees in comparable buildings in the Greater Boston area) of all on-site employees at or below the level grade of senior building manager engaged in the operation, maintenance, and maintenance or security of the BuildingProject (together with Landlord's reasonable allocation of expenses of off-site employees at or below the grade of senior building manager who perform a portion of their services in connection with the operation, maintenance or security of the Project), including taxes, insurance and benefits relating thereto; (B) all supplies and materials used in the operation, maintenance, repair, replacement, and security of the BuildingProject; (C) costs for improvements made to the Building Project which, although capital in nature, are expected to reduce the normal operating costs (including all utility costs) of the BuildingProject, as amortized using a commercially reasonable interest rate over the useful life of the item in question (as reasonably determined by Landlord in accordance with standard real estate accounting practices, consistently applied), as well as capital improvements made in order to comply with any law Law hereafter promulgated by any governmental authorityauthority or any interpretation hereafter rendered with respect to any existing Law, as amortized using a commercially reasonable interest rate over the useful economic life of such improvements (as reasonably determined by Landlord in its reasonable discretion (accordance with only the annual amortized portion of such costs being included in Operating Costs in any calendar yearstandard real estate accounting practices, consistently applied); (D) cost of all utilities, except the cost of utilities reimbursable to Landlord by the BuildingProject's tenants other than pursuant to a provision similar to this Section 4. (b4(b); (E) insurance expensesexpenses (not including any portion of deductibles in excess of $50,000.00); (F) repairs, replacements, and general maintenance of the Project; (G) fair market rental and other costs with respect to the management office for the Building; and (GH) service or service, maintenance and management contracts with independent contractors for the operation, maintenance, management, repair, replacement, or security of the Building Project (including, without limitation, including alarm service, window cleaning, and elevator maintenance). Notwithstanding any other provision of this Lease, Operating Costs shall not include costs for (i) capital improvements made to the Building, other than capital improvements described in Section 4.(b)(2)(C4(b)(2)(C) and except for items which are generally considered maintenance and repair items, such as painting of common areas, replacement of carpet in elevator lobbies, and the like; (ii) repair, replacements and general maintenance and other expenses paid by proceeds of insurance or by Tenant or other third parties; (iii) interest, amortization of principal or other payments on loans to Landlord and rent and other sums due under a ground lease or master lease relating to the PremisesLandlord; (iv) depreciation; (v) leasing commissions; (vi) legal expenses for services, other than those that benefit the Building Project tenants generally (e.g., tax disputes); (vii) renovating or otherwise improving space for occupants of the Building Project or vacant space in the BuildingProject; (viii) Taxes (defined below)Taxes; (ix) federal income taxes imposed on or measured by the income of Landlord from the operation of the BuildingProject; and (x) the cost of repairs necessary to cure any latent defect in the initial construction of the Building; (xi) Landlord's general overhead items or services which could properly be capitalized under standard real estate accounting practices, consistently applied, except as it relates specifically to the management or operations of the Building; (xii) any cost necessary to cure any violation of any law, ordinance or regulation applicable to the Building existing as of the date of this Lease or to investigate, test, contain and/or remediate the presence of Hazardous Materials or other environmental conditions existing as of the date of this Lease (in each case, to the extent amortized over the useful life of the capital item in question. If the Expense Stop is calculated on a base year basis, Operating Costs for the base year only shall not caused or exacerbated by any Tenant Party)include market-wide labor-rate increases due to extraordinary circumstances, including boycotts and strikes; (xiii) costs of repairs and replacements arising out of a fire utility rate increases due to extraordinary circumstances, including conservation surcharges, boycotts, embargos or other casualty shortages; or an exercise of eminent domain affecting the Building or the Land, amortized costs relating to capital improvements (except for the deductibles under policies of insurance carried by Landlord; (xiv) compensation for executives or officers or other employees of Landlord above the level of the building manager; (xv) expenses arising from the gross negligence or willful misconduct of Landlord or its agents, employees or contractors; (xvi) all expenses and disbursements relating solely to the ownership, operation extent such capital costs were incurred prior to or during the Base Year and maintenance of are included in Operating Costs for any calendar years after the second building (other than the Premises and the Building common areas) in the two-building complex comprising the Building; and (xvii) rent loss insuranceBase Year).
Appears in 1 contract
Samples: Lease Agreement (Biomira CORP)
Operating Costs; Taxes. (Commencing January 1) , 2007, Tenant shall pay all to Landlord the amount (per each rentable square foot in the Premises) (“Additional Rent”) by which the annual Operating Costs (defined below) respecting the Premises ("ADDITIONAL RENT") and its Proportionate Share of Operating Costs relating to per rentable square foot in the Building attributable to any period included exceed the Expense Stop (per rentable square foot in the Term according to the terms of this Section 4.(bBuilding). Landlord may make a good faith estimate of the Additional Rent to be due by Tenant for any calendar year or part thereof during the Term. During each calendar year or partial calendar year of the Term (after the base year, and if the Expense Stop is calculated on a base year basis), Tenant shall pay to Landlord, on the Commencement Date and on the first day in advance concurrently with each monthly installment of each calendar month thereafterBasic Rent, an amount equal to the estimated Additional Rent for such calendar year or part thereof divided by the number of months in such year or partial yearstherein. From time to time, Landlord may reasonably estimate and re-estimate the Additional Rent to be due by Tenant and deliver a copy of the estimate or re-estimate to Tenant, but Landlord may re-estimate Additional Rent no more than once in any calendar year. Thereafter, the monthly installments of Additional Rent payable by Tenant shall be appropriately adjusted in accordance with the estimations so that, by the end of the calendar year in question, Tenant shall have paid all of the Additional Rent as reasonably estimated by Landlord for such calendar yearLandlord. Any amounts paid based on such an estimate shall be subject to adjustment as herein provided when actual Operating Costs are available for each calendar year.
(21) The term "OPERATING COSTS" shall mean “Operating Costs” means all expenses and disbursements (subject to the limitations set forth below) that Landlord incurs in connection with the ownership, operation, and maintenance of the BuildingProject, determined in accordance with customary real estate industry accounting practices consistently applied, including, but not limited to, including the following costs: (A) wages and salaries (including management fees, which management fees shall not exceed fair market management fees in comparable buildings in the Greater Boston area) of all on-site employees at or below the level grade of building manager or its equivalent engaged in the operation, maintenance, and security operation or maintenance of the BuildingProject (together with Landlord’s reasonable allocation of expenses of off-site employees at or below the grade of building manager or its equivalent to the extent such off-site employees perform services in connection with the operation or maintenance of the Project), including taxes, insurance and benefits relating thereto; (B) all supplies and materials used in the operation, maintenance, repair, and security replacement of the BuildingProject; (C) costs for improvements made to the Building Project which, although capital in nature, are expected to reduce the normal operating costs (including all utility costs) of the BuildingProject, as amortized using the interest rate then announced by Bank of America or, if Bank of America ceases to exist or ceases to publish such rate, the rate then announced by the largest (as measured by deposits) chartered bank operating in California, as its “prime rate” or “reference rate” over the time period reasonably estimated by Landlord to recover the costs thereof and limited to the estimated savings in Operating Costs, as well as capital improvements made in order to comply with any law Law hereafter promulgated by any governmental authorityauthority or any interpretation hereafter rendered with respect to any existing Law, as amortized using the interest rate then announced by Bank of America or, if Bank of America ceases to exist or ceases to publish such rate, the rate then announced by the largest (as measured by deposits) chartered bank operating in California, as its “prime rate” or “reference rate” over the useful economic life of such improvements as determined by Landlord in its reasonable discretion (accordance with only the annual amortized portion of such costs being included in Operating Costs in any calendar year)customary real estate industry accounting practices consistently applied; (D) cost of all utilities, except the cost of utilities reimbursable to Landlord by the Building's tenants other than pursuant to a provision similar to this Section 4. (b); (E) insurance expenses; (FE) repairs, replacements, and general maintenance of the BuildingProject; and (GF) service or service, maintenance and management contracts with independent contractors for the operation, maintenance, repairmanagement, replacement, repair or security replacement of the Project. If the Building is part of a multi-building office complex (including, without limitation, alarm service, window cleaning, and elevator maintenancethe “Complex”). Notwithstanding any Operating Costs and Taxes for the Complex may be equitably prorated among the Project and the other provision buildings of the Complex, as reasonably determined by Landlord. For purposes of this Lease, Operating Costs shall not include costs for (i) capital improvements made to the Building, other than capital improvements described in Section 4.(b)(2)(C) and except for items which are generally considered maintenance and repair items, such as painting of common areas, replacement of carpet in elevator lobbies, and the like; (ii) repair, replacements and general maintenance and other expenses paid by proceeds of insurance or by Tenant or other third parties; (iii) interest, amortization of principal or other payments on loans to Landlord and rent and other sums due under a ground lease or master lease relating to the Premises; (iv) depreciation; (v) leasing commissions; (vi) legal expenses for services, other than those that benefit the Building tenants generally (e.g., tax disputes); (vii) renovating or otherwise improving space for occupants of the Building or vacant space in the Building; (viii) Taxes (defined below); (ix) income taxes imposed on or measured by the income of Landlord from the operation of the Building; (x) the cost of repairs necessary to cure any latent defect in the initial construction of the Building; (xi) Landlord's general overhead except as it relates specifically to the management or operations of the Building; (xii) any cost necessary to cure any violation of any law, ordinance or regulation applicable to the Building existing as of the date of this Lease or to investigate, test, contain and/or remediate the presence of Hazardous Materials or other environmental conditions existing as of the date of this Lease (in each case, to the extent not caused or exacerbated by any Tenant Party); (xiii) costs of repairs and replacements arising out of a fire or other casualty or an exercise of eminent domain affecting the Building or the Land, except for the deductibles under policies of insurance carried by Landlord; (xiv) compensation for executives or officers or other employees of Landlord above the level of the building manager; (xv) expenses arising from the gross negligence or willful misconduct of Landlord or its agents, employees or contractors; (xvi) all expenses and disbursements relating solely to the ownership, operation and maintenance of the second building (other than the Premises and the Building common areas) in the two-building complex comprising the Building; and (xvii) rent loss insurance.following:
Appears in 1 contract
Samples: Lease Agreement (Earthlink Inc)
Operating Costs; Taxes. (1) Tenant shall pay all pay, as additional rent (“Additional Rent”), an amount equal to Tenant’s Proportionate Share of Operating Costs (defined below) respecting for each calendar year or partial calendar year falling within the Premises ("ADDITIONAL RENT") and its Proportionate Share of Operating Costs relating to the Building attributable to any period included in the Term according to the terms of this Section 4.(b)term. Landlord may make a good faith estimate of the Additional Rent to be due paid by Tenant for any calendar year or part thereof during the Term, and Tenant shall pay to Landlord, on the Commencement Date and on the first day of each calendar month thereafter, an amount equal to the estimated Additional Rent for such calendar year or part thereof divided by the number of months in such year or partial yearstherein. From time to time, Landlord may reasonably estimate and re-estimate the Additional Rent to be due by Tenant and deliver a copy of the estimate or re-estimate to Tenant. Thereafter, the monthly installments of Additional Rent payable by Tenant shall be appropriately adjusted in accordance with the estimations so that, by the end of the calendar year in question, Tenant shall have paid all of the Additional Rent as reasonably estimated by Landlord for such calendar yearLandlord. Any amounts paid based on such an estimate shall be subject to adjustment as herein provided when actual Operating Costs are available for each calendar year. The Landlord agrees to cap the Operating Costs at $1.45 per square foot for the base year of 2002, with a 5% per annum increase to the cap limit.
(2) The term "OPERATING COSTS" “Operating Costs” shall mean all expenses and disbursements (subject to the limitations set forth below) that Landlord incurs in connection with the ownership, operation, repair, replacement and maintenance of the Building, determined in accordance with sound accounting principles consistently applied, including, but not limited to, the following costs: (A) wages and salaries (including management fees, which management fees shall not exceed fair market management fees in comparable buildings in the Greater Boston area) of all employees at or below the level of building manager engaged in the operation, maintenance, and security of the Building, including taxes, insurance and benefits relating thereto; (B) all supplies and materials used in the operation, maintenance, repair, replacement, and security of the Building; (C) costs for improvements made to the Building which, although capital in nature, are expected to reduce the normal operating costs (including all utility costs) of the Building, as well as capital improvements made in order to comply with any law hereafter promulgated by any governmental authority, as amortized over the useful economic life of such improvements as determined by Landlord in its reasonable discretion (with only the annual amortized portion of such costs being included in Operating Costs in any calendar year)intentionally deleted; (D) cost of all utilities, except the cost of utilities reimbursable to Landlord by the Building's ’s tenants other than pursuant to a provision similar to this Section 4. (b4.(b); (E) insurance expenses; (F) repairs, replacements, and general maintenance of the Building; and (G) service or maintenance contracts with independent contractors for the operation, maintenance, repair, replacement, or security of the Building (including, without limitation, alarm service, window cleaning, and elevator maintenance); Operating Costs shall also include the Building’s pro rata share of the costs of operating, managing, maintaining and cleaning (including, without limitation, snow and ice removal) the common areas and facilities of the Park shared by the Building and other buildings in the Park, including, without limitation, the costs of landscaping, insurance, security, snow plowing/sanding; the cost of maintaining and repairing the entrance and side roads and sidewalks within the Park, the drainage system, the Park directory and signage, the irrigation system and the street lights; and the cost of providing electricity to the street lights. Notwithstanding any other provision The Building’s pro rata share (as referred to in the preceding sentence) shall be equal to a fraction, the numerator of this Leasewhich is the total number of rentable square feet of floor area in the Building and the denominator of which is the total number of rentable square feet of floor area in all the buildings in the Park, from time to time. Operating Costs shall not include costs for (i) capital improvements made to the Building, other than capital improvements described any increase in Section 4.(b)(2)(C) and except for items Landlord’s insurance rates which are generally considered maintenance and repair items, such as painting of common areas, replacement of carpet in elevator lobbies, and the like; (ii) repair, replacements and general maintenance and other expenses paid by proceeds of insurance or by Tenant or other third parties; (iii) interest, amortization of principal or other payments on loans to Landlord and rent and other sums due under a ground lease or master lease relating to the Premises; (iv) depreciation; (v) leasing commissions; (vi) legal expenses for services, other than those that benefit the Building tenants generally (e.g., tax disputes); (vii) renovating or otherwise improving space for occupants of the Building or vacant space in the Building; (viii) Taxes (defined below); (ix) income taxes imposed on or measured by the income of Landlord may result from the operation of the Building; (x) the cost of repairs necessary to cure any latent defect in the initial construction of the Building; (xi) Landlord's general overhead except as it relates specifically to the management or operations of the Building; (xii) any cost necessary to cure any violation of any law, ordinance or regulation applicable to the Building existing as of the date of this Lease or to investigate, test, contain and/or remediate the presence of Hazardous Materials or other environmental conditions existing as of the date of this Lease (in each case, to the extent not caused or exacerbated by any Tenant Party); (xiii) costs of repairs and replacements arising out of a fire or other casualty or an exercise of eminent domain affecting the Building or the Land, except for the deductibles under policies of insurance carried by Landlord; (xiv) compensation for executives or officers or other employees of Landlord above the level of the building manager; (xv) expenses arising from the gross negligence or willful misconduct negligent failure of Landlord or its agents, employees or contractorscontractors to comply with the provisions of this Lease; (xviii) all expenses depreciation; (iii) interest and disbursements relating solely to amortization of debt; (iv) the ownershipcost of leasehold improvements, operation and maintenance including redecorating work, for other tenants of the second building Building; (v) fees and expenses (including legal and brokerage fees) for procuring new tenants for the Building or settling disputes with tenants of the Building; (vi) costs incurred in financing or refinancing of the Building; (vii) the cost of any work or service performed for any tenant in the Building (other than the Premises and the Building common areasTenant) to a materially greater extent or in a materially more favorable manner than that furnished generally to tenants (including Tenant) in the two-building complex comprising the Building; and (xviiviii) rent loss insurance.the cost of any repair or replacement which would be required to be capitalized under generally accepted accounting principles other than as described in Section 4(b)(2)(C), including without limitation the cost of renting any equipment or materials, which cost would be so capitalized if the equipment or materials were purchased, not rented; (ix) the cost of any item included in Operating Costs to the extent that Landlord is actually reimbursed for such cost by an insurance company, a condemning authority, another tenant or any other party; (x) ground rent;
Appears in 1 contract
Operating Costs; Taxes. (1) Tenant shall pay all Operating Costs (defined below) respecting the Premises ("ADDITIONAL RENT") and its Proportionate Share of Operating Costs relating to the Building attributable to any period included in the Term according to the terms of this Section 4.(b). Landlord may make a good faith estimate of the Additional Rent to be due by Tenant for any calendar year or part thereof during the Term, and Tenant shall pay to Landlord, on the Commencement Date and on the first day of each calendar month thereafter, an amount equal to the estimated Additional Rent for such calendar year or part thereof divided by the number of months in such year or partial years. From time to time, Landlord may reasonably estimate and re-estimate the Additional Rent to be due by Tenant and deliver a copy of the estimate or re-estimate to Tenant. Thereafter, the monthly installments of Additional Rent payable by Tenant shall be appropriately adjusted in accordance with the estimations so that, by the end of the calendar year in question, Tenant shall have paid all of the Additional Rent as reasonably estimated by Landlord for such calendar year. Any amounts paid based on such an estimate shall be subject to adjustment as herein provided when actual Operating Costs are available for each calendar year.
(2i) The term "OPERATING COSTS" tern “Operating Costs” shall mean refer to all expenses expenses, costs and disbursements (subject to the limitations set forth below) that which Landlord pays or incurs in connection with the ownership, operation, management, repair and maintenance of the BuildingProject, unless expressly excluded pursuant to this Section 9.02. All Operating Costs shall be determined according to generally accepted accounting principles which shall be consistently applied, including. Operating Costs shall include, but not be limited to, the following costsfollowing: (Aa) wages Wages, salaries, benefits and salaries (including management fees, which management fees shall not exceed fair market management fees in comparable buildings in the Greater Boston area) of all employees at personnel or below the level of building manager entities engaged in the operation, maintenance, and security of the Building, including taxes, insurance and benefits relating thereto; (B) all supplies and materials used in the operation, maintenance, and security of the Building; (C) costs for improvements made to the Building which, although capital in nature, are expected to reduce the normal operating costs (including all utility costs) of the Building, as well as capital improvements made in order to comply with any law hereafter promulgated by any governmental authority, as amortized over the useful economic life of such improvements as determined by Landlord in its reasonable discretion (with only the annual amortized portion of such costs being included in Operating Costs in any calendar year); (D) cost of all utilities, except the cost of utilities reimbursable to Landlord by the Building's tenants other than pursuant to a provision similar to this Section 4. (b); (E) insurance expenses; (F) repairs, replacements, and general maintenance of the Building; and (G) service or maintenance contracts with independent contractors for the operation, maintenance, repair, replacement, maintenance or security of the Building Project; (includingb) Cost of all service agreements for maintenance, without limitationjanitorial services, access control, alarm service, window cleaning, elevator maintenance and elevator maintenancelandscaping for the Project; (c) All utilities for the Project other than electricity; (d) Cost of all insurance for the Project which Landlord may carry from time to time, together with all appraisal and consultants’ fees in connection with such insurance; (e) All Taxes (as hereinafter defined). Notwithstanding any ; (f) Legal and accounting costs incurred by Landlord or paid by Landlord to third parties (other provision than legal fees with respect to disputes with individual tenants, negotiations of tenant leases, or operating the entity which constitutes the Landlord); (g) Cost of non-capitalized repairs and general maintenance of the Project; (h) Project management office rent or rental value; (i) A management fee (not to exceed five percent (5%) of Rent and all other receivables due to Landlord pursuant to the terms of this Lease, Operating Costs shall not include costs for (i) capital improvements made and all items reimbursable to the BuildingProject manager, other than capital improvements described in Section 4.(b)(2)(C) and except for items which are generally considered maintenance and repair itemsif any, such as painting of common areas, replacement of carpet in elevator lobbies, and the like; (ii) repair, replacements and general maintenance and other expenses paid by proceeds of insurance or by Tenant or other third parties; (iii) interest, amortization of principal or other payments on loans pursuant to Landlord and rent and other sums due under a ground lease or master lease relating to the Premises; (iv) depreciation; (v) leasing commissions; (vi) legal expenses for services, other than those that benefit the Building tenants generally (e.g., tax disputes); (vii) renovating or otherwise improving space for occupants of the Building or vacant space in the Building; (viii) Taxes (defined below); (ix) income taxes imposed on or measured by the income of Landlord from the operation of the Building; (x) the cost of repairs necessary to cure any latent defect in the initial construction of the Building; (xi) Landlord's general overhead except as it relates specifically to the management or operations of the Building; (xii) any cost necessary to cure any violation of any law, ordinance or regulation applicable to the Building existing as of the date of this Lease or to investigate, test, contain and/or remediate the presence of Hazardous Materials or other environmental conditions existing as of the date of this Lease (in each case, to the extent not caused or exacerbated by any Tenant Party); (xiii) costs of repairs and replacements arising out of a fire or other casualty or an exercise of eminent domain affecting the Building or the Land, except contract for the deductibles under policies of insurance carried by Landlord; (xiv) compensation for executives or officers or other employees of Landlord above the level of the building manager; (xv) expenses arising from the gross negligence or willful misconduct of Landlord or its agents, employees or contractors; (xvi) all expenses and disbursements relating solely to the ownership, operation and maintenance of the second building (other than the Premises and the Building common areas) in the two-building complex comprising the BuildingProject; and (xviij) rent loss insuranceCost of capital improvements (amortized on a straight-line basis over the useful life of the capital improvement) which are (1) for the purpose of reducing Operating Costs, (2) required by any governmental authority, or (3) considered to be operating costs (notwithstanding their capital nature) under generally accepted accounting principles. If any amounts comprising Operating Costs are incurred not just with respect to the Project, but also with respect to one or more other buildings outside the Project, then Landlord shall reasonably allocate such amounts between the Project and such other buildings or areas. There shall be no duplication of costs or reimbursement.
Appears in 1 contract
Operating Costs; Taxes. (1) Tenant shall pay all pay, as additional rent (“Additional Rent”), an amount equal to Tenant’s Proportionate Share of Operating Costs (defined below) respecting for each calendar year or partial calendar year falling within the Premises ("ADDITIONAL RENT") and its Proportionate Share of Operating Costs relating to the Building attributable to any period included in the Term according to the terms of this Section 4.(b)term. Landlord may make a good faith estimate of the Additional Rent to be due paid by Tenant for any calendar year or part thereof during the Term, and Tenant shall pay to Landlord, on the Commencement Date and on the first day of each calendar month thereafter, an amount equal to the estimated Additional Rent for such calendar year or part thereof divided by the number of months in such year or partial yearstherein. From time to timeOnce a year, Landlord may reasonably estimate and re-estimate the Additional Rent to be due by Tenant and deliver a copy of the estimate or re-estimate to Tenant. Thereafter, the monthly installments of Additional Rent payable by Tenant shall be appropriately adjusted in accordance with the estimations so that, by the end of the calendar year in question, Tenant shall have paid all of the Additional Rent as reasonably estimated by Landlord for such calendar yearLandlord. Any amounts paid based on such an estimate shall be subject to adjustment as herein provided when actual Operating Costs are available for each calendar year.
(2) The term "OPERATING COSTS" “Operating Costs” shall mean all expenses and disbursements (subject to the limitations set forth below) that Landlord incurs in connection with the ownership, operation, repair, replacement and maintenance of the Building, determined in accordance with sound accounting principles consistently applied, including, but not limited to, the following costs: (A) wages and salaries (including management fees, which management fees shall not exceed fair market management fees in comparable buildings in the Greater Boston area) of all employees at or below the level of building manager engaged in the operation, maintenance, and security of the Building, including taxes, insurance and benefits relating thereto; (B) all supplies and materials used in the operation, maintenance, repair, replacement, and security of the Building; (C) costs for improvements made to the Building which, although capital in nature, are expected to reduce the normal operating costs (including all utility costs) of the Building, as well as capital improvements made in order to comply with any law hereafter promulgated by any governmental authority, as amortized over the useful economic life of such improvements as determined by Landlord in its reasonable discretion (with only the annual amortized portion of such costs being included in Operating Costs in any calendar year)discretion; (D) cost of all utilities, except the cost of utilities reimbursable to Landlord by the Building's ’s tenants other than pursuant to a provision similar to this Section 4. (b4.(b); (E) insurance expenses; (F) repairs, replacements, and general maintenance of the Building; and (G) service or maintenance contracts with independent contractors for the operation, maintenance, repair, replacement, or security of the Building (including, without limitation, alarm service, window cleaning, elevator maintenance and elevator maintenanceHVAC service to the extent such HVAC services Common Areas), (see 9b Tenant’s maintenance regarding units exclusively servicing Tenant’s Premises); (H) water, sewer and septic expenses; (I) the review of independent auditors; Operating Costs shall also include the Building’s pro rata share of the costs of operating, managing, maintaining and cleaning (including, without limitation, snow and ice removal) the common areas and facilities of the Park shared by the Building and other buildings in the Park, including, without limitation, the costs of landscaping, insurance, security, snow plowing/sanding; the cost of maintaining and repairing the entrance and side roads and sidewalks within the Park, the drainage system, the Park directory and signage, the irrigation system and the street lights; and the cost of providing electricity to the street lights. Notwithstanding any other provision The Building’s pro rata share (as referred to in the preceding sentence) shall be equal to a fraction, the numerator of this Leasewhich is the total number of rentable square feet of floor area in the Building and the denominator of which is the total number of rentable square feet of floor area in all the buildings in the Park, from time to time. Operating Costs shall not include costs for (i) capital improvements made any increase in Landlord’s insurance rates which may result from the negligent failure of Landlord or its agents, employees or contractors to comply with the Building, other than capital improvements described in Section 4.(b)(2)(C) and except for items which are generally considered maintenance and repair items, such as painting provisions of common areas, replacement of carpet in elevator lobbies, and the likethis Lease; (ii) repair, replacements and general maintenance and other expenses paid by proceeds of insurance or by Tenant or other third partiesdepreciation; (iii) interest, interest and amortization of principal or other payments on loans to Landlord and rent and other sums due under a ground lease or master lease relating to the Premisesdebt; (iv) depreciationthe cost of leasehold improvements, including redecorating work, for other tenants of the Building; (v) leasing commissionsfees and expenses (including legal and brokerage fees) for procuring new tenants for the Building or settling disputes with tenants of the Building; (vi) legal expenses for services, other than those that benefit costs incurred in financing or refinancing of the Building tenants generally (e.g., tax disputes)Building; (vii) renovating the cost of any work or otherwise improving space service performed for occupants of any tenant in the Building (other than Tenant) to a materially greater extent or vacant space in a materially more favorable manner than that furnished generally to tenants (including Tenant) in the Building; (viii) the cost of any repair or replacement which would be required to be capitalized under generally accepted accounting principles other than as described in Section 4(b)(2)(C), including without limitation the cost of renting any equipment or materials, which cost would be so capitalized if the equipment or materials were purchased, not rented; (ix) the cost of any item included in Operating Costs to the extent that Landlord is actually reimbursed for such cost by an insurance company, a condemning authority, another tenant or any other party; (x) ground rent; (xi) if the Premises are located on the ground floor of the Building, any costs related to elevators in the Building, including without limitation costs of operating, repairing, maintaining and insuring the same. (xii) Taxes (defined below); and (ixxiii) federal income taxes imposed on or measured by the income of Landlord from the operation of the Building; (x) the cost of repairs necessary to cure any latent defect in the initial construction of the Building; (xi) Landlord's general overhead except as it relates specifically to the management or operations of the Building; (xii) any cost necessary to cure any violation of any law, ordinance or regulation applicable to the Building existing as of the date of this Lease or to investigate, test, contain and/or remediate the presence of Hazardous Materials or other environmental conditions existing as of the date of this Lease (in each case, to the extent not caused or exacerbated by any Tenant Party); (xiii) costs of repairs and replacements arising out of a fire or other casualty or an exercise of eminent domain affecting the Building or the Land, except for the deductibles under policies of insurance carried by Landlord; (xiv) compensation for executives or officers or other employees of Landlord above the level of the building manager; (xv) expenses arising from the gross negligence or willful misconduct of Landlord or its agents, employees or contractors; (xvi) all expenses and disbursements relating solely to the ownership, operation and maintenance of the second building (other than the Premises and the Building common areas) in the two-building complex comprising the Building; and (xvii) rent loss insurance.
Appears in 1 contract
Operating Costs; Taxes. (1) Tenant shall pay all to Landlord as additional rent (“Additional Rent”) Tenant’s Proportionate Share of the annual Operating Costs (defined below) respecting the Premises ("ADDITIONAL RENT") and its Proportionate Share of Operating Costs relating to the Building attributable to any period included in the Term according to the terms of this Section 4.(b). Landlord may make a good faith estimate of the Additional Rent to be due by Tenant for any calendar year or part thereof during the Term. During each calendar year or partial calendar year of the Term, and Tenant shall pay to Landlord, on the Commencement Date and on the first day in advance concurrently with each monthly installment of each calendar month thereafterBasic Rent, an amount equal to the estimated Additional Rent for such calendar year or part thereof divided by the number of months in such year or partial yearstherein. From time to time, Landlord may reasonably estimate and re-estimate the Additional Rent to be due by Tenant and deliver a copy of the estimate or re-estimate to Tenant. Thereafter, the monthly installments of Additional Rent payable by Tenant shall be appropriately adjusted in accordance with the estimations so that, by the end of the calendar year in question, Tenant shall have paid all of the Additional Rent as reasonably estimated by Landlord for such calendar yearLandlord. Any amounts paid based on such an estimate shall be subject to adjustment as herein provided when actual Operating Costs are available for each calendar year.
(2) The term "OPERATING COSTS" “Operating Costs” shall mean all expenses and disbursements (subject to the limitations set forth below) that Landlord incurs in connection with the ownership, operation, and maintenance of the BuildingProject, determined in accordance with sound accounting principles consistently applied, including, but not limited to, including the following costs: (A) wages and salaries (including management fees, which management fees shall not exceed fair market management fees in comparable buildings in the Greater Boston area) of all on-site employees at or below the level grade of senior building manager engaged in the operation, maintenance, and maintenance or security of the BuildingProject (together with Landlord’s reasonable allocation of expenses of off-site employees at or below the grade of senior building manager who perform a portion of their services in connection with the operation, maintenance or security of the Project), including taxes, insurance and benefits relating thereto; (B) all supplies and materials used in the operation, maintenance, repair, replacement, and security of the BuildingProject; (C) costs for improvements made to the Building Project which, although capital in nature, are expected to reduce the normal operating costs (including all utility costs) of the BuildingProject, as amortized using a commercially reasonable interest rate over the time period reasonably estimated by Landlord to recover the costs thereof taking into consideration the anticipated cost savings, as determined by Landlord using its good faith, commercially reasonable judgment, as well as capital improvements made in order to comply with any law Law hereafter promulgated by any governmental authorityauthority or any interpretation hereafter rendered with respect to any existing Law, as amortized using a commercially reasonable interest rate over the useful economic life of such improvements as determined by Landlord in its reasonable discretion (with only the annual amortized portion of such costs being included in Operating Costs in any calendar year)discretion; (D) cost of all utilities, except the cost of utilities reimbursable to Landlord by the Building's Project’s tenants other than pursuant to a provision similar to this Section 4. (b4(b); (E) insurance expenses; (F) repairs, replacements, and general maintenance of the BuildingProject; (G) fair market rental and other costs with respect to the management office for the Project; and (GH) service or service, maintenance and management contracts with independent contractors for the operation, maintenance, management, repair, replacement, or security of the Building Project (including, without limitation, including alarm service, window cleaning, and elevator maintenance). Notwithstanding any other provision of this Lease, Operating Costs shall not include costs for (i) capital improvements made to the BuildingProject, other than capital improvements described in Section 4.(b)(2)(C4(b)(2)(C) and except for items which are generally considered maintenance and repair items, such as painting of common areas, replacement of carpet in elevator lobbies, and the like; (ii) repair, replacements and general maintenance and other expenses paid by proceeds of insurance or by Tenant or other third parties; (iii) interest, amortization of principal or other payments on loans to Landlord and rent and other sums due under a ground lease or master lease relating to the PremisesLandlord; (iv) depreciation; (v) leasing commissions; (vi) legal expenses for services, other than those that benefit the Building Project tenants generally (e.g., tax disputes); (vii) renovating or otherwise improving space for occupants of the Building Project or vacant space in the BuildingProject; (viii) Taxes (defined below)Taxes; (ix) federal income taxes imposed on or measured by the income of Landlord from the operation of the BuildingProject; (x) management fees (whether or not paid to subsidiaries or affiliates of Landlord) to the cost extent in excess of repairs necessary to cure any latent defect in the initial construction of the Buildingcompetitive rates; (xi) Landlord's general overhead except as it relates specifically costs attributable to the management obtaining or operations of the Buildingretaining tenants, including, advertising expenses, improvement costs, brokerage commissions, engineering fees, architectural fees and attorneys’ fees; (xii) any reserves for anticipated future expenses; (xiii) the cost necessary to cure any violation of any lawwork or service performed for any tenant (including Tenant) at such tenant’s cost; (xiv) any expenses for repairs or maintenance which are covered by warranties and service contracts, ordinance or regulation applicable to the extent such maintenance and repairs are made at no cost to Landlord; (xv) advertising, marketing or promotional expenditures; (xvi) costs or expenses which Tenant proves are the result of the gross negligence or willful misconduct of Landlord, its agents or employees; (xvii) costs, fines and penalties incurred to the extent due to violations by Landlord or other tenants of the Building existing of applicable governmental laws, rules or regulations in force and effect as of the date of this Lease or to investigate, test, contain and/or remediate the presence of Hazardous Materials or other environmental conditions existing as of the date of this Lease (in each case, to the extent not caused or exacerbated by any Tenant Party)Lease; (xiiixviii) costs of repairs title insurance, automobile insurance, or key man insurance; and replacements arising out (xix) wages, salaries and fringe benefits of a fire or other casualty or an exercise of eminent domain affecting the Building or the Landexecutive personnel, except for the deductibles under policies of insurance carried by Landlord; (xiv) compensation for officers, executives or officers or other and employees of Landlord above the level of the building manager; Building manager (xv) expenses arising from the gross negligence or willful misconduct of Landlord or its agents, employees or contractors; (xvi) all expenses and disbursements relating solely to the ownership, operation and maintenance regardless of the second building title of such individual). Increases in controllable Operating Expenses charged to Tenant hereunder shall be capped at five percent (other than the Premises and the Building common areas5%) in the two-building complex comprising the Building; and (xvii) rent loss insuranceannually.
Appears in 1 contract
Samples: Lease Agreement (Omtool LTD)
Operating Costs; Taxes. (1) Tenant shall pay all Operating Costs (defined below) respecting the Premises ("ADDITIONAL RENT") and its Proportionate Share of Operating Costs relating to the Building attributable to any period included in the Term according to the terms of this Section 4.(b). Landlord may make a good faith estimate of the Additional Rent to be due by Tenant for any calendar year or part thereof during the Term, and Tenant shall pay to Landlord, on the Commencement Date and on the first day of each calendar month thereafter, an amount equal to the estimated Additional Rent for such calendar year or part thereof divided by the number of months in such year or partial years. From time to time, Landlord may reasonably estimate and re-estimate the Additional Rent to be due by Tenant and deliver a copy of the estimate or re-estimate to Tenant. Thereafter, the monthly installments of Additional Rent payable by Tenant shall be appropriately adjusted in accordance with the estimations so that, by the end of the calendar year in question, Tenant shall have paid all of the Additional Rent as reasonably estimated by Landlord for such calendar year. Any amounts paid based on such an estimate shall be subject to adjustment as herein provided when actual Operating Costs are available for each calendar year.
(2i) The term "OPERATING COSTS" “Operating Costs” shall mean refer to all expenses expenses, costs and disbursements (subject to the limitations set forth below) that which Landlord pays or incurs in connection with the ownership, operation, management, repair and maintenance of the Building, Project. All Operating Costs shall be determined according to generally accepted accounting principles which shall be consistently applied, including. Operating Costs shall include, but not be limited to, the following costs: (Ato the extent such costs are reasonable and actually and directly related to the Project): (a) wages Wages, salaries, benefits and salaries (including management fees, which management fees shall not exceed fair market management fees in comparable buildings in the Greater Boston area) of all employees at personnel or below the level of building manager entities engaged in the operation, maintenance, and security of the Building, including taxes, insurance and benefits relating thereto; (B) all supplies and materials used in the operation, maintenance, and security of the Building; (C) costs for improvements made to the Building which, although capital in nature, are expected to reduce the normal operating costs (including all utility costs) of the Building, as well as capital improvements made in order to comply with any law hereafter promulgated by any governmental authority, as amortized over the useful economic life of such improvements as determined by Landlord in its reasonable discretion (with only the annual amortized portion of such costs being included in Operating Costs in any calendar year); (D) cost of all utilities, except the cost of utilities reimbursable to Landlord by the Building's tenants other than pursuant to a provision similar to this Section 4. (b); (E) insurance expenses; (F) repairs, replacements, and general maintenance of the Building; and (G) service or maintenance contracts with independent contractors for the operation, maintenance, repair, replacement, maintenance or security of the Building Project; (includingb) Cost of all service agreements for maintenance, without limitationjanitorial services, access control, alarm service, window cleaning, elevator maintenance and elevator maintenancelandscaping for the Project; (c) All utilities for the Project, including water, sewer, electricity and gas; (d) Cost of snow and ice removal; (e) Cost of all insurance for the Project which Landlord may carry from time to time, together with all appraisal and consultants’ fees in connection with such insurance; (f) All Taxes (hereinafter defined). Notwithstanding ; (g) Legal and accounting costs incurred by Landlord or paid by Landlord to third parties (other than legal fees with respect to disputes with individual tenants, negotiations of tenant leases, or operating the entity which constitutes the Landlord); (h) Cost of non-capitalized repairs and general maintenance of the Project; (i) Project management office rent or rental value; (j) A management fee and all items reimbursable to the Project manager, if any, pursuant to any other provision management contract for the Project (which management fee is currently 3% and will not be increased unless the market rate for management fees for similar buildings in the Tyson’s Corner market increase); and (k) Cost of capital improvements (amortized on a straight-line basis over the useful life of the capital improvement) which are (1) for the good faith purpose of reducing Operating Costs (and then only up to the amount of the estimated reduction actually realized), or (2) required by any governmental authority pursuant to laws enacted or enforceable after the execution of this Lease. Notwithstanding anything in this Article IX to the contrary, Tenant’s share of Operating Costs for items (a), (b) and (j) through (k) above shall not include costs for increase by more than three percent (i3%) capital improvements made over the previous year’s Operating Costs on a cumulative basis. If any amounts comprising Operating Costs are incurred not just with respect to the BuildingProject, but also with respect to one or more other than capital improvements described in Section 4.(b)(2)(C) buildings outside the Project, then Landlord shall reasonably allocate such amounts between the Project and except for items which are generally considered maintenance and repair items, such as painting other buildings or areas. There shall be no duplication of common areas, replacement of carpet in elevator lobbies, and the like; (ii) repair, replacements and general maintenance and other expenses paid by proceeds of insurance costs or by Tenant or other third parties; (iii) interest, amortization of principal or other payments on loans to Landlord and rent and other sums due under a ground lease or master lease relating to the Premises; (iv) depreciation; (v) leasing commissions; (vi) legal expenses for services, other than those that benefit the Building tenants generally (e.g., tax disputes); (vii) renovating or otherwise improving space for occupants of the Building or vacant space in the Building; (viii) Taxes (defined below); (ix) income taxes imposed on or measured by the income of Landlord from the operation of the Building; (x) the cost of repairs necessary to cure any latent defect in the initial construction of the Building; (xi) Landlord's general overhead except as it relates specifically to the management or operations of the Building; (xii) any cost necessary to cure any violation of any law, ordinance or regulation applicable to the Building existing as of the date of this Lease or to investigate, test, contain and/or remediate the presence of Hazardous Materials or other environmental conditions existing as of the date of this Lease (in each case, to the extent not caused or exacerbated by any Tenant Party); (xiii) costs of repairs and replacements arising out of a fire or other casualty or an exercise of eminent domain affecting the Building or the Land, except for the deductibles under policies of insurance carried by Landlord; (xiv) compensation for executives or officers or other employees of Landlord above the level of the building manager; (xv) expenses arising from the gross negligence or willful misconduct of Landlord or its agents, employees or contractors; (xvi) all expenses and disbursements relating solely to the ownership, operation and maintenance of the second building (other than the Premises and the Building common areas) in the two-building complex comprising the Building; and (xvii) rent loss insurancereimbursement.
Appears in 1 contract
Samples: Deed of Lease (Ats Corp)
Operating Costs; Taxes. (1) Tenant shall pay all to Landlord Tenant’s Proportionate Share of any increase in Operating Costs (as defined below) respecting for each calendar year and partial calendar year falling within the Premises ("ADDITIONAL RENT") and its Proportionate Share of Term over the Operating Costs relating to for the Building attributable to any period included in Base Year (the Term according to the terms of this Section 4.(b“Operating Costs Excess”). Landlord may make a good faith estimate of Tenant’s Proportionate Share of the Additional Rent Operating Costs Excess to be due by Tenant for any calendar year or part thereof during the Term. During each calendar year or partial calendar year of the Term (after the Base Year), and Tenant shall pay to Landlord, on the Commencement Date and on the first day in advance concurrently with each monthly installment of each calendar month thereafterBasic Rent, an amount equal to the estimated Additional Rent Tenant’s Proportionate Share of the Operating Costs Excess for such calendar year or part thereof divided by the number of months in such year or partial yearstherein. From time to time, Landlord may reasonably estimate and re-estimate Tenant’s Proportionate Share of the Additional Rent Operating Costs Excess to be due by Tenant and deliver a copy of the estimate or re-estimate to Tenant. Thereafter, the monthly installments of Additional Rent Tenant’s Proportionate Share of the Operating Costs Excess payable by Tenant shall be appropriately adjusted in accordance with the estimations so that, by the end of the calendar year in question, Tenant shall have paid all of the Additional Rent as reasonably estimated by Landlord for such calendar yearLandlord. Any amounts paid based on such an estimate shall be subject to adjustment as herein provided when actual Operating Costs are available for each calendar year.
(2) The term "OPERATING COSTS" . “Additional Rent,” as used herein, shall mean all expenses and disbursements (subject to the limitations set forth below) that Landlord incurs in connection with the ownershipmean, operationcollectively, and maintenance Tenant’s Proportionate Share of the Building, consistently applied, including, but not limited to, the following costs: (A) wages and salaries (including management fees, which management fees shall not exceed fair market management fees in comparable buildings in the Greater Boston area) of all employees at or below the level of building manager engaged in the operation, maintenance, and security Operating Costs Excess plus Tenant’s Proportionate Share of the Building, including taxes, insurance and benefits relating thereto; Tax Excess (B) all supplies and materials used in the operation, maintenance, and security of the Building; (C) costs for improvements made to the Building which, although capital in nature, are expected to reduce the normal operating costs (including all utility costs) of the Building, as well as capital improvements made in order to comply with any law hereafter promulgated by any governmental authority, as amortized over the useful economic life of such improvements as determined by Landlord in its reasonable discretion (with only the annual amortized portion of such costs being included in Operating Costs in any calendar year); (D) cost of all utilities, except the cost of utilities reimbursable to Landlord by the Building's tenants other than pursuant to a provision similar to this Section 4. (b); (E) insurance expenses; (F) repairs, replacements, and general maintenance of the Building; and (G) service or maintenance contracts with independent contractors for the operation, maintenance, repair, replacement, or security of the Building (including, without limitation, alarm service, window cleaning, and elevator maintenance). Notwithstanding any other provision of this Lease, Operating Costs shall not include costs for (i) capital improvements made to the Building, other than capital improvements described in Section 4.(b)(2)(C) and except for items which are generally considered maintenance and repair items, such as painting of common areas, replacement of carpet in elevator lobbies, and the like; (ii) repair, replacements and general maintenance and other expenses paid by proceeds of insurance or by Tenant or other third parties; (iii) interest, amortization of principal or other payments on loans to Landlord and rent and other sums due under a ground lease or master lease relating to the Premises; (iv) depreciation; (v) leasing commissions; (vi) legal expenses for services, other than those that benefit the Building tenants generally (e.g., tax disputes); (vii) renovating or otherwise improving space for occupants of the Building or vacant space in the Building; (viii) Taxes (defined below); (ix) income taxes imposed on or measured by the income of Landlord from the operation of the Building; (x) the cost of repairs necessary to cure any latent defect in the initial construction of the Building; (xi) Landlord's general overhead except as it relates specifically to the management or operations of the Building; (xii) any cost necessary to cure any violation of any law, ordinance or regulation applicable to the Building existing as of the date of this Lease or to investigate, test, contain and/or remediate the presence of Hazardous Materials or other environmental conditions existing as of the date of this Lease (in each case, to the extent not caused or exacerbated by any Tenant Party); (xiii) costs of repairs and replacements arising out of a fire or other casualty or an exercise of eminent domain affecting the Building or the Land, except for the deductibles under policies of insurance carried by Landlord; (xiv) compensation for executives or officers or other employees of Landlord above the level of the building manager; (xv) expenses arising from the gross negligence or willful misconduct of Landlord or its agents, employees or contractors; (xvi) all expenses and disbursements relating solely to the ownership, operation and maintenance of the second building (other than the Premises and the Building common areas) in the two-building complex comprising the Building; and (xvii) rent loss insurance.
Appears in 1 contract
Samples: Lease Agreement (Hipcricket, Inc.)
Operating Costs; Taxes. (1) Tenant shall pay all to Landlord Tenant’s Proportionate Share of any increase in Operating Costs (as defined below) respecting for each calendar year and partial calendar year falling within the Premises ("ADDITIONAL RENT") and its Proportionate Share of Term over the Operating Costs relating to for the Building attributable to any period included in Base Year (the Term according to the terms of this Section 4.(b“Operating Costs Excess”). Landlord may make a good faith estimate of Tenant’s Proportionate Share of the Additional Rent Operating Costs Excess to be due by Tenant for any calendar year or part thereof during the Term. During each calendar year or partial calendar year of the Term (after the Base Year), and Tenant shall pay to Landlord, on the Commencement Date and on the first day in advance concurrently with each monthly installment of each calendar month thereafterBasic Rent, an amount equal to the estimated Additional Rent Tenant’s Proportionate Share of the Operating Costs Excess for such calendar year or part thereof divided by the number of months in such year or partial yearstherein. From time to timetime (but no more frequently than once during any period of twelve (12) consecutive months), Landlord may reasonably estimate and re-estimate Tenant’s Proportionate Share of the Additional Rent Operating Costs Excess to be due by Tenant and deliver a copy of the estimate or re-estimate to Tenant. Thereafter, the monthly installments of Additional Rent Tenant’s Proportionate Share of the Operating Costs Excess payable by Tenant shall be appropriately adjusted in accordance with the estimations so that, by the end of the calendar year in question, Tenant shall have paid all of the Additional Rent as reasonably estimated by Landlord for such calendar yearestimations. Any amounts paid based on such an estimate shall be subject to adjustment as herein provided when actual Operating Costs are available for each calendar year.
(2) The term "OPERATING COSTS" . “Additional Rent,” as used herein, shall mean all expenses and disbursements (subject to the limitations set forth below) that Landlord incurs in connection with the ownershipmean, operationcollectively, and maintenance Tenant’s Proportionate Share of the Building, consistently applied, including, but not limited to, the following costs: (A) wages and salaries (including management fees, which management fees shall not exceed fair market management fees in comparable buildings in the Greater Boston area) of all employees at or below the level of building manager engaged in the operation, maintenance, and security Operating Costs Excess plus Tenant’s Proportionate Share of the Building, including taxes, insurance and benefits relating thereto; Tax Excess (B) all supplies and materials used in the operation, maintenance, and security of the Building; (C) costs for improvements made to the Building which, although capital in nature, are expected to reduce the normal operating costs (including all utility costs) of the Building, as well as capital improvements made in order to comply with any law hereafter promulgated by any governmental authority, as amortized over the useful economic life of such improvements as determined by Landlord in its reasonable discretion (with only the annual amortized portion of such costs being included in Operating Costs in any calendar year); (D) cost of all utilities, except the cost of utilities reimbursable to Landlord by the Building's tenants other than pursuant to a provision similar to this Section 4. (b); (E) insurance expenses; (F) repairs, replacements, and general maintenance of the Building; and (G) service or maintenance contracts with independent contractors for the operation, maintenance, repair, replacement, or security of the Building (including, without limitation, alarm service, window cleaning, and elevator maintenance). Notwithstanding any other provision of this Lease, Operating Costs shall not include costs for (i) capital improvements made to the Building, other than capital improvements described in Section 4.(b)(2)(C) and except for items which are generally considered maintenance and repair items, such as painting of common areas, replacement of carpet in elevator lobbies, and the like; (ii) repair, replacements and general maintenance and other expenses paid by proceeds of insurance or by Tenant or other third parties; (iii) interest, amortization of principal or other payments on loans to Landlord and rent and other sums due under a ground lease or master lease relating to the Premises; (iv) depreciation; (v) leasing commissions; (vi) legal expenses for services, other than those that benefit the Building tenants generally (e.g., tax disputes); (vii) renovating or otherwise improving space for occupants of the Building or vacant space in the Building; (viii) Taxes (defined below); (ix) income taxes imposed on or measured by the income of Landlord from the operation of the Building; (x) the cost of repairs necessary to cure any latent defect in the initial construction of the Building; (xi) Landlord's general overhead except as it relates specifically to the management or operations of the Building; (xii) any cost necessary to cure any violation of any law, ordinance or regulation applicable to the Building existing as of the date of this Lease or to investigate, test, contain and/or remediate the presence of Hazardous Materials or other environmental conditions existing as of the date of this Lease (in each case, to the extent not caused or exacerbated by any Tenant Party); (xiii) costs of repairs and replacements arising out of a fire or other casualty or an exercise of eminent domain affecting the Building or the Land, except for the deductibles under policies of insurance carried by Landlord; (xiv) compensation for executives or officers or other employees of Landlord above the level of the building manager; (xv) expenses arising from the gross negligence or willful misconduct of Landlord or its agents, employees or contractors; (xvi) all expenses and disbursements relating solely to the ownership, operation and maintenance of the second building (other than the Premises and the Building common areas) in the two-building complex comprising the Building; and (xvii) rent loss insurance.
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Samples: Lease Agreement (Glu Mobile Inc)
