Operating Expenses Defined. The term “Operating Expenses” shall be determined as if the Project were at least ninety five percent (95%) occupied, with the Operating Expenses based on actual Operating Expenses if ninety five percent (95%) or greater occupancy, and shall mean the following: A. All costs and expenses paid or incurred by Landlord in doing the following (including payments to independent contractors providing services related to the performance of the following): (i) maintaining, cleaning, repairing and resurfacing the roof (including repair of leaks) and the exterior surfaces (including painting) of all buildings located on the Project and maintaining and repairing the structural components of the Building; (ii) maintenance of the liability, fire, property damage and any other insurance covering the Project carried by Landlord pursuant to Section 9.2 or otherwise (including the prepayment of premiums for coverage of up to one year); (iii) maintaining, repairing, operating and replacing when necessary HVAC equipment, utility facilities and other building service equipment; (iv) providing utilities to the Project (including lighting, trash removal and water for landscaping irrigation); (v) complying with all applicable Laws and Private Restrictions; (vi) operating, maintaining, repairing, cleaning, painting, restriping and resurfacing the Common Area; (vii) replacement or installation of lighting fixtures, directional or other signs and signals, irrigation systems, trees, shrubs, ground cover and other plant materials, and all landscaping in the Common Area; (viii) providing the utilities and services described in this Lease other than those which are described as being separately chargeable to Tenant; (ix) providing security, if any; and (x) to the extent Landlord elects to include such in Operating Expenses, costs incurred pursuant to Section 5.4; B. The following costs: (i) Real Property Taxes as defined in Section 8.3; (ii) the amount of any deductible paid by Landlord under any insurance maintained by Landlord; (iii) the cost to repair damage caused by an Uninsured Peril up to a maximum amount in any twelve (12) month period equal to four percent (4%) of the replacement cost of the Project; and (iv) that portion of all compensation (including benefits and premiums for workers* compensation and other insurance) paid to or on behalf of employees (at or below the level of property manager) of Landlord but only to the extent they are involved in the performance of the work described by Sections 8.2A or 8.2D that is fairly allocable to the Project; C. Fees for management services rendered by either Landlord or a third party manager engaged by Landlord (which may be a party affiliated with Landlord), including the fair market rental value of any management office associated with the Project. Notwithstanding the foregoing, the property management fee charged by Landlord shall not exceed that charged by similarly situated landlords as determined by competitive bids sought by Landlord not less frequently than every twenty four (24) months; and D. All additional costs and expenses incurred by Landlord with respect to the operation, protection, maintenance, repair and replacement of the Project which would be considered a current expense (and not a capital expenditure but subject to Tenant’s obligations under Section 5.4) pursuant to generally accepted accounting principles; provided, however, that Operating Expenses shall not include any of the following: (i) debt payments on any loans affecting the Project; (ii) depreciation of any buildings or any major systems of building service equipment within the Project; (iii) leasing commissions; and (iv) the cost of tenant improvements installed for the exclusive use of other tenants of the Project.
Appears in 2 contracts
Samples: Office Lease (Arteris, Inc.), Office Lease (Arteris, Inc.)
Operating Expenses Defined. The As used herein, the term “"Operating -------------------------- Expenses” " shall be determined as if the Project were at least ninety five percent (95%) occupied, mean all expenses and costs which Landlord incurs because of or in connection with the ownership, maintenance, management and operation of the Building. Operating Expenses based on shall include, without limitation, all reasonable actual Operating Expenses if ninety five percent (95%) costs, expenses and disbursements incurred or greater occupancy, and shall mean made in connection with the following:
A. All costs and expenses paid or incurred by Landlord in doing the following (including payments to independent contractors providing services related to the performance of the following): (i) maintaining, cleaning, repairing Wages and resurfacing the roof (including repair of leaks) and the exterior surfaces (including painting) salaries of all buildings located on the Project and maintaining and repairing the structural components of the Building; (ii) maintenance of the liabilityon-site management agent, firestaff, property damage and any other insurance covering the Project carried by Landlord pursuant to Section 9.2 or otherwise (including the prepayment of premiums for coverage of up to one year); (iii) maintaining, repairing, operating and replacing when necessary HVAC equipment, utility facilities and other building service equipment; (iv) providing utilities to the Project (including lighting, trash removal and water for landscaping irrigation); (v) complying with all applicable Laws and Private Restrictions; (vi) operating, maintaining, repairing, cleaning, painting, restriping and resurfacing the Common Area; (vii) replacement or installation of lighting fixtures, directional or other signs and signals, irrigation systems, trees, shrubs, ground cover and other plant materials, and all landscaping in the Common Area; (viii) providing the utilities and services described in this Lease other than those which are described as being separately chargeable to Tenant; (ix) providing security, if any; and (x) to the extent Landlord elects to include such in Operating Expenses, costs incurred pursuant to Section 5.4;
B. The following costs: (i) Real Property Taxes as defined in Section 8.3; (ii) the amount of any deductible paid by Landlord under any insurance maintained by Landlord; (iii) the cost to repair damage caused by an Uninsured Peril up to a maximum amount in any twelve (12) month period equal to four percent (4%) of the replacement cost of the Project; and (iv) that portion of all compensation (including benefits and premiums for workers* compensation and other insurance) paid to or on behalf of employees (at or below the level of property managermanager whether employed by Landlord or the Building's management company, engaged in the operation and maintenance or security of the Building and all costs related to or associated with such employees or the carrying out of their duties, including uniforms and their cleaning, taxes, auto allowances and insurance and benefits (including without limitation, contributions to pension and/or profit sharing plans and vacation or other paid absences);
(ii) All supplies and materials, including janitorial and lighting supplies, used directly in the operation and maintenance of the Building, Common Area and Parking Facilities allocable to the Building.
(iii) All utilities, including, without limitation, electricity, telephone (including, without limitation, all costs and expenses of telephone service for the sprinkler alarm systems, if any), water, sewer, power, gas heating, lighting and air conditioning for the Building, except to the extent such utilities are chargeable or separately metered to a tenant of the Building;
(iv) All insurance purchased by Landlord or the Building's management company relating to the Building and its improvements specifically allocated to the Building and any equipment or other property contained therein or located thereon including, without limitation, casualty, liability, rental loss, sprinkler and water damage insurance but not including any deductible for such insurance;
(v) All non-structural repairs to the Building (excluding repairs, the cost of which are recoverable by the proceeds of insurance or by Tenant or other third parties other than as part of the Operating Expenses);
(vi) All maintenance of the Building, including, without limitation, painting, ice and snow removal, landscaping, groundskeeping and the patching of driveways and parking lots allocable to the Building;
(vii) Intentionally Deleted;
(viii) All commercially reasonable maintenance, operation and service agreements for the Building, and any equipment related thereto, including, without limitation, service and/or maintenance agreements for the sprinkler system in the Building, if any (excluding those chargeable to Tenant or any third parties other than as a part of Operating Expenses);
(ix) Accounting and legal fees incurred in connection with the operation and maintenance of the Building or related thereto, to the extent the same actually results in a reduction in Operating Expenses;
(x) Intentionally Deleted;
(xi) All computer rentals for energy management or security monitoring system used to reduce Operating Expenses, if any;
(xii) Any capital improvements made to the Building after the Commencement Date (other than those made for the addition of rentable square footage to the Building or for the sole benefit of a Building tenant pursuant to its Lease), (but only to the extent they are involved that such capital improvement actually results in the performance reduction of the work described by Sections 8.2A or 8.2D that is fairly allocable to the Project;
C. Fees for management services rendered by either Landlord or a third party manager engaged by Landlord (which may be a party affiliated with Landlord), including the fair market rental value of any management office associated with the Project. Notwithstanding the foregoing, the property management fee charged by Landlord shall not exceed that charged by similarly situated landlords as determined by competitive bids sought by Landlord not less frequently than every twenty four (24) months; and
D. All additional costs and expenses incurred by Landlord with respect to the operation, protection, maintenance, repair and replacement of the Project which would be considered a current expense (and not a capital expenditure but subject to Tenant’s obligations under Section 5.4) pursuant to generally accepted accounting principles; provided, however, that Operating Expenses shall not include any of the following: (i) debt payments on any loans affecting the Project; (ii) depreciation of any buildings or any major systems of building service equipment within the Project; (iii) leasing commissions; and (ivExpenses) the cost of tenant improvements installed for which shall be amortized over the exclusive use useful life of other tenants of the Projectsuch improvement; and
(xiii) Intentionally Deleted.
Appears in 1 contract
Samples: Full Service Lease (Trex Co Inc)
Operating Expenses Defined. The term “Operating Expenses” shall be determined as if the Project were at least ninety five percent (95%) occupied, with the Operating Expenses based on actual Operating Expenses if ninety five percent (95%) or greater occupancy, and shall mean the following:
A. All costs and expenses paid or incurred by Landlord in doing the following (including payments to independent contractors providing services related to the performance of the following): (i) maintainingcompensation, cleaningwages and all fringe benefits, repairing worker’s compensation insurance premiums and resurfacing payroll taxes paid to, for or with respect to all persons for their services in the roof operating, maintaining or cleaning of the Building or the Lot (including repair provided that if such persons are not employed at the Building or the Lot on a full-time basis, such costs will be prorated to reflect the actual amount of leaks) and the exterior surfaces (including painting) of all buildings located time spent by such persons on the Project and maintaining and repairing the structural components operation, maintenance or cleaning of the Building; Building or the Lot);
(ii) maintenance payments under service contracts with independent contractors for operating, maintaining or cleaning of the liability, fire, property damage and any other insurance covering Building or the Project carried by Landlord pursuant to Section 9.2 or otherwise (including the prepayment of premiums for coverage of up to one year); Lot;
(iii) maintainingsteam, repairingwater, operating sewer, gas, oil, electricity and replacing when necessary HVAC equipment, telephone charges (excluding such utility facilities charges separately chargeable to tenants for additional or separate services and other building service equipment; electricity charges paid by Tenant in the manner set forth in Section 5.2);
(iv) providing utilities to the Project cost of maintenance, cleaning and repairs (including lightingexcluding repairs (i) not properly chargeable against income, trash removal and water for landscaping irrigation(ii) reimbursed from contractors under guarantees, (iii) reimbursed under Xxxxxxxx’s property insurance or (iv) reimbursed under manufacturers’ warranties); ;
(v) complying with all applicable Laws cost of snow removal and Private Restrictions; care of landscaping for the Property;
(vi) operating, maintaining, repairing, cleaning, painting, restriping cost of cleaning supplies and resurfacing equipment used at the Common Area; Building;
(vii) replacement premiums for insurance carried with respect to the Building or installation Property (including, without limitation, liability insurance, insurance against loss in case of lighting fixtures, directional or other signs Casualty and signals, irrigation systems, trees, shrubs, ground cover of monthly installments of Annual Fixed Rent and any Additional Rent which may be due under this Lease and other plant materials, and all landscaping leases of space in the Common Area; (viii) providing the utilities and services described in this Lease other Building for not more than those which are described as being separately chargeable to Tenant; (ix) providing security, if any; and (x) to the extent Landlord elects to include such in Operating Expenses, costs incurred pursuant to Section 5.4;
B. The following costs: (i) Real Property Taxes as defined in Section 8.3; (ii) the amount of any deductible paid by Landlord under any insurance maintained by Landlord; (iii) the cost to repair damage caused by an Uninsured Peril up to a maximum amount in any twelve (12) month period equal to four months in the case of both Annual Fixed Rent and Additional Rent and, if there be any first mortgage on the Building, including such insurance as may be required by the holder of such first mortgage);
(viii) management fees of three percent (43%) of the replacement cost gross receivable rents of the Project; and Building (iv) that portion of is, all compensation base rent (including benefits escalations thereto), percentage rent, occupancy charges and premiums additional rent, including payments on account of Operating Expenses for workers* compensation the Building (other than management fees) and real estate taxes received from tenants or other insurance) paid to or on behalf of employees (at or below the level of property manager) of Landlord but only to the extent they are involved in the performance occupants of the work described by Sections 8.2A or 8.2D that is fairly allocable to the Project;
C. Fees for management services rendered by either Landlord or a third party manager engaged by Landlord (which may be a party affiliated with LandlordBuilding, specifically excluding insurance, parking revenues, and casualty and condemnation proceeds), including the fair market rental value of any management office associated with the Project. Notwithstanding the foregoing, the property management fee charged by Landlord shall not exceed that charged by similarly situated landlords as determined by competitive bids sought by Landlord not less frequently than every twenty four (24) months; and
D. All additional costs and expenses incurred by Landlord with respect to the operation, protection, maintenance, repair and replacement of the Project which would be considered a current expense (and not a capital expenditure but subject to Tenant’s obligations under Section 5.4) pursuant to generally accepted accounting principles; provided, however, that if Tenant is providing services in accordance with the provisions of Section 7.8 below, then for purposes of calculating the management fees only, those costs shall be added back in to the Operating Expenses shall not include any for the Building that are included in calculating the management fees;
(ix) the Building’s Proportionate Share of the following: costs of maintaining and repairing the Common Areas of Parcel 3 of the Development Area, for which purposes the “Building’s Proportionate Share” shall be a fraction, the numerator of which shall be the Total Rentable Floor Area of the Building and the denominator of which shall be the sum of (ix) debt payments the Total Rentable Floor Area of the Building plus (y) the total rentable floor area of the other buildings from time to time located on any loans affecting Parcel 3 of the Project; Development Area;
(iix) depreciation for capital expenditures, subject to and in accordance with the provisions of any buildings or any major systems of building service equipment within the Project; Section 7.4(C) below;
(iii) leasing commissions; and (ivxi) the cost of tenant improvements installed furnishing material and supplies related directly to furnishing conditioned water for the exclusive use of other tenants heating and cooling of the ProjectBuilding; and
(xii) all other reasonable and necessary expenses paid in connection with the operating, cleaning and maintenance of the Building and the Lot and properly chargeable against income.
Appears in 1 contract
