Operating Expenses. Tenant shall pay to Landlord on the first day of each month during the Term, in addition to the Base Rent, Xxxxxx's Share of all Operating Expenses in accordance with the following provisions: (a) Operating Expenses" are all costs incurred by Landlord relating to the operation of the Property, including, but not limited to, the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems. (b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services. (c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year. (d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant. (e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Building.
Appears in 2 contracts
Samples: Warehouse Lease, Warehouse Lease
Operating Expenses. Tenant All Taxes, costs, expenses and disbursements of every kind and nature which Landlord shall pay or become obligated to pay in connection with the ownership, management, operation, maintenance, replacement and repair of the Property (including the amortized portion of any capital expenditure or improvement, amortized over the average useful life of the repaired or replaced item as reasonably determined by Landlord, together with interest thereon at the Reference Rate, expenses of changing utility service providers, and any dues, assessments and other expenses pursuant to any covenants, conditions and restrictions, or any reciprocal easements, or any owner’s association now or hereafter affecting the Project). Operating Expenses shall be allocated among the categories of Project Operating Expenses, Building Operating Expenses or Phase Operating Expenses as provided in Article Four. If any Operating Expense, though paid in one year, relates to more than one calendar year, at the option of Landlord on such expense may be proportionately allocated among such related calendar years. Operating Expenses shall include the first day following, by way of each month during the Termillustration only and not limitation: (1) all Taxes; (2) all insurance premiums and other costs (including deductibles, provided, that any deductible for earthquake insurance shall only be included in addition Operating Expenses if there is damage to the Base RentBuilding resulting from an earthquake, Xxxxxx's Share and such deductible shall be amortized over the average useful life of all Operating Expenses the improvements repaired or reconstructed, as reasonably determined by Landlord, together with interest thereon at the Reference Rate, and only the amortized portion thereof applicable to the Term of the Lease shall be included in accordance with the following provisions:
(a) Operating Expenses" are ), including the cost of rental insurance; (3) all license, permit and inspection fees; (4) all costs incurred by Landlord relating of utilities, fuels and related services, including water, sewer, light, telephone, power and steam connection, service and related charges; (5) all costs to the operation of the Property, including, but not limited to, the following: (i) the operation, repair, maintenance maintain and replacement in neatoperate heating, clean, good order ventilating and condition of the Common Areasair conditioning systems, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directoriespreventive maintenance; (ii6) waterall janitorial, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, landscaping and security services; (iv7) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas all wages, salaries, payroll taxes, fringe benefits and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing other labor costs, including the cost of workers’ compensation and disability insurance; (8) all costs of operation, maintenance and repair of all parking facilities and other common areas; (9) all supplies, materials, equipment and tools; (10) dues, assessments and other expenses pursuant to any covenants, conditions and restrictions, or any reciprocal easements, or any owner’s association now or hereafter affecting the capital improvement Project; (11) modifications to the Building or the Project occasioned by Landlord's estimate Laws now or hereafter in effect; (12) the total charges of any independent contractors employed in the care, operation, maintenance, repair, leasing and cleaning of the number Project, including landscaping, roof maintenance, and repair, maintenance and monitoring of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); life-safety systems, plumbing systems, electrical wiring and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent lossesProject signage; (ii13) the cost of any electricity or other utilities consumed for Common Areas accounting services necessary to compute the rents and any taxes levied thereoncharges payable by tenants at the Project; (iii14) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in questionexterior window and exterior wall cleaning and painting; (iv15) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property managerial and any costs incurred as a result thereofadministrative expenses; (v16) expenses incurred all costs in connection with the construction, refurbishing or expansion of exercise facility at the BuildingProject; (vi17) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) all costs and expenses incurred related to Landlord’s retention of consultants in connection with the creationroutine review, maintenanceinspection, modification or negotiation testing, monitoring, analysis and control of a mortgage or superior lease Hazardous Material, and retention of consultants in connection with the clean-up of Hazardous Material (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart not recoverable from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the BuildingProject and except to the extent any spill or release of Hazardous Material is determined to be caused by Landlord or its employees, contractors, agents or representatives), and all costs and expenses related to the implementation of recommendations made by such consultants concerning the use, generation, storage, manufacture, production, storage, release, discharge, disposal or clean-up of Hazardous Material on, under or about the Premises or the Project (to the extent not recoverable from a particular tenant of the Project and except to the extent any spill or release of Hazardous Material is determined to be caused by Landlord or its employees, contractors, agents or representatives); (18) all capital improvements made for the purpose of reducing or controlling other Operating Expenses, and all other capital expenditures, but only as amortized over the average useful life of the improvements, as reasonably determined by Landlord, together with interest thereon at the Reference Rate; (19) all property management costs and fees, including all costs in connection with the Project property management office, provided that the management fees shall not exceed three percent (3%) of gross rents for the Project; and (20) all fees or other charges incurred in conjunction with voluntary or involuntary membership in any energy conservation, air quality, environmental, traffic management or similar organizations. Operating Expenses shall not include: (a) costs of alterations of space to all be occupied by new or existing tenants of the BuildingProject; (b) depreciation charges; (c) interest and principal payments on loans (except for loans for capital expenditures or improvements which Landlord is allowed to include in Operating Expenses as provided above); (d) ground rental payments; (e) real estate brokerage and leasing commissions; (f) advertising and marketing expenses; (g) costs of Landlord reimbursed by insurance proceeds; (h) expenses incurred in negotiating leases of other tenants in the Project or enforcing lease obligations of other tenants in the Project; (i) Landlord’s or Landlord’s property manager’s corporate general overhead or corporate general administrative expenses; (j) capital improvements except as expressly provided above; (k) any capital expenditure for improvements or modifications to the Building or Project to the extent that Landlord was in violation of Law then in effect and applied to the Building and Project prior to execution of the Lease for failure to make such improvements or modifications prior to execution of the Lease; and (l) costs of removal, abatement or remediation of Hazardous Material to the extent that Landlord was in violation of Law then in effect and applied to the Project prior to execution of the Lease for failure to remove, xxxxx or otherwise remediate Hazardous Material prior to execution of the Lease.
Appears in 2 contracts
Samples: Lease Agreement (Guardant Health, Inc.), Lease Agreement (Guardant Health, Inc.)
Operating Expenses. (a) Tenant shall pay to Landlord on the first day of each month during the Termterm of this Lease, as set forth above in addition to Section 5, Tenant’s Share, as set forth in the Base RentSummary, Xxxxxx's Share of all Project Operating Expenses (as defined below), incurred in accordance connection with the following provisions:
(a) Operating Expenses" are all costs incurred by Landlord relating to the operation of the PropertyProject.
(b) As used in this Lease, including, but not limited to, the following: Operating Expenses means:
(i) all costs and expenses incurred by Landlord for the operation, repair, maintenance and replacement in neat, clean, good order and condition following:
(A) the provision of utilities to the Common Areas, including but not limited (o gas, electricity, and water for irrigation, including the maintenance and repair of same;
(B) the maintenance of all landscaping in the Common Areas, including the installation and maintenance of irrigation systems, the planting and maintenance of shrubs, trees, flowering plants and ground cover;
(C) the compliance with all Laws;
(D) the operation, maintenance, repair, cleaning, painting, and resurfacing of the parking areaslots included in the Common Areas;
(E) the installation, loading repair, and unloading areas, trash maintenance of all light fixtures and signs located in the Common Areas and on or in the Project;
(F) the provision of security to the Project and the Common Areas;
(G) the maintenance of all parking areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation fences and gates contained in the Common Areas;
(H) the establishment and maintenance of directories of tenants in the Project;
(I) the maintenance and repair of all fire prevention and detection systems, drainage including smoke detectors and sprinkler systems; and
(J) charges and/or fees levied by the City of Berkeley, lighting facilitiesincluding but not limited to those for street lighting, fences street landscaping, library service, school tax, clean storm water, street improvements and gates, exterior signs and tenant directories; traffic mitigation.
(ii) watermanagement fees, gaswhether for services rendered by Landlord, electricityan affiliate of Landlord, telephone and other utilities servicing the Common Areas; Landlord’s employees, or a third-party property manager hired by Landlord.
(iii) trash disposalthe amount of any deductible paid by Landlord in connection with an insured loss resulting from damage to the Project, janitorial services, snow removal, and security services; but in no event more than $1,000 per occurrence;
(iv) Real Property Taxesthe amount of any uninsured loss resulting from damage to the Project; and
(v) premiums for the insurance policies maintained all additional costs and expenses incurred by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to in connection with the Common Areas operation, maintenance, repair, replacement, and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost protection of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal Project that would be considered a current expense according to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those servicesgenerally accepted accounting principles.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses shall not include
(i) depreciation;
(ii) any capital expenditures, except as permitted in the amount subsection (b)(v), set forth in Paragraph 1.6 above;
(iii) payments on any loans or ground leases affecting the Project;
(iv) leasing commissions; and
(v) the cost of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses tenant improvements installed exclusively for the yearuse of other tenants.
(d) In As used in this Lease, the event that Tenant term “Property Taxes” shall dispute the amounts set forth in mean any of Landlord's statements regarding actual Operating Expensesand all taxes, Tenant shall have the rightassessments, not later than 180 days following the receipt levies, and other charges of any such statementkind, general and special, foreseen and unforeseen (including all installments of principal interest required to review Xxxxxxxx's books pay any existing or future general or special assessments (the “Assessments”), and records any increases resulting from reassessments made in connection with a change in ownership, new construction, or any other cause), now or later imposed by any governmental or quasi-governmental authority or special district having the power to tax or levy assessments, which are levied or assessed against or with respect to the period value, occupancy, or use of all or any portion of the Project (as now constructed or as may at any later time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at be constructed, altered, or otherwise changed) or Landlord’s interest in the place Project, the fixtures, equipment, and other property of Landlord, real or personal, that are an integral part of and located on the Project, the gross receipts, income, or rentals from the Project, or the use of parking areas, public utilities, or energy within the Project, or Landlord’s business of Landlord's leasing the Project. Property Taxes include but are not limited to any ad valorem real property manager or tax imposed on the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything Leased Premises up to the contrary set forth in this leaselimits imposed by the California Constitution, Operating Expenses shall exclude: (i) bad debt lossesArticle 13A, Section l(a). “Assessments” include any other form of assessment, license fee, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity tax, levy, or other utilities consumed for Common Areas and any taxes levied thereon; tax (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, giftthan estate, inheritance, estate and net income taxes or franchise taxes), imposed upon Landlordby any authority having the direct or indirect power to tax including without limitation, the EPA, any superior lessor county, state, or federal government or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), improvement or other financing district or refinancing division thereof, and all fees payable pursuant to such mortgages, leases, financings or refinancings specifically including, without limitation, pointsall additional taxes and assessments hereafter levied by the County of Alameda. Neither the term “Property Taxes” nor “Assessments” shall include charges levied by the City of Berkeley, late charges including but not limited to those for street lighting, street landscaping, library service, school tax, clean storm water, street improvements and traffic mitigation. If at any time during the term of this Lease, the method of taxation or assessment of the Project prevailing as of the Commencement Date is altered so that in lieu of or in addition to any Property Tax described above there shall be levied, assessed, or imposed (whether because of a change in the method of taxation or assessment, creation of a new tax or charge, or any other expenses whether similar cause) an alternate or dissimilar additional tax or charge (i) on the value, use, or occupancy of the Project or Landlord’s interest in the Project, or (ii) on or measured by the gross receipts, income or rentals from the Project, on Landlord’s business of leasing the Project, or computed in any manner with respect to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose operation of the Building and/or Project, then any tax or charge, however designated, shall be included within the land thereunder meaning of the term Property Taxes for purposes of this Lease. However, the term Property Taxes shall not include estate, inheritance, transfer, gift, or franchise taxes of Landlord or the federal or state net income tax imposed on Landlord’s income from all sources. Tenant shall not be responsible for paying Tenant’s Share of any portion Property Taxes resulting from additional improvements by other tenants, provided, however, that any Property Taxes resulting from Alterations made for or on behalf of Tenant under this Lease shall be paid entirely by Tenant. If the Leased Premises is not separately assessed, Tenant’s Share of any Property Taxes shall be an equitable proportion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or Taxes for all of the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating improvements included within the business of the legal entity which constitutes Landlord to the extent tax parcel that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Buildingassessed.
Appears in 2 contracts
Operating Expenses. Tenant shall agrees to pay to Landlord on the first day of each month during the Term, in addition to the Base Rent, Xxxxxx's Tenant’s Proportionate Share of all services and other operating expenses of the Project (collectively “Operating Expenses”) that are provided by Landlord with respect to the Project in each calendar year. Operating Expenses shall include all reasonable and necessary expenses incurred by Landlord in accordance with the following provisionsownership, operation, maintenance, repair and management of the Project in which the Premises are located, including, but not limited to the following:
(ai) Operating Expenses" are all Repair, maintenance, utility costs incurred by Landlord relating to the operation and landscaping of the PropertyCommon Area, including, but not limited to, the following: (i) the operationany and all costs of maintenance, repair, maintenance repair and replacement in neatof all parking areas (including bumpers, cleansweeping, good order and condition of the Common Areas, including parking areasstriping), loading and unloading areas, trash areas, roadwayscommon driveways, sidewalks, outdoor lighting, signs, directories, walkways, parkways, driveways, landscaped areas, striping, bumperslandscaping, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs gates and tenant directories; other costs which are allocable to the real property of which the Premises are a part;
(ii) waterNon-structural repairs to and maintenance of the roof (and roof membrane), gas, electricity, telephone skylights and other utilities servicing exterior walls of the Common Areas; Building (including painting);
(iii) trash disposalThe costs relating to the insurance maintained by Landlord with respect to the Project;
(iv) Maintenance contracts for heating, janitorial servicesventilation and air-conditioning (HVAC) systems and elevators, snow removalif any;
(v) Maintenance, monitoring and operation of the fire/life safety and sprinkler system;
(vi) Trash collection, security services; water and sewage service; electricity;
(ivvii) Capital improvements made to or capital assets acquired for the Project after the Commencement Date that are intended to reduce Project Operating Expenses or are reasonably necessary for the health and safety of the occupants of the Building or are required under any governmental law or regulation, which capital costs, or an allocable portion thereof, shall be amortized over its useful life as commercially reasonable determined by Landlord, together with interest on the unamortized balance at the rate of ten percent (10%) per annum; Landlord’s Initials CZ Tenant’s Initials HZ
(viii) Real Property Taxes; ;
(vix) premiums for the insurance policies maintained All costs and fees incurred by Landlord under Paragraph 8 in connection with the management of this lease; (vi) monthly amortization of capital improvements to the Common Areas Lease and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing Premises, including the cost of those services which are customarily performed by a property management services company, together with a management fee to Landlord for accounting and project management services relating to the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) Project in an amount equal to the cost four percent (4%) of the capital improvement times 1//12 sum of the lesser of 12% or the maximum annual interest rate permitted gross rents received by law); and (vii) maintenance Landlord from all of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses tenants in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.Project; and
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) Any other commercially reasonable maintenance costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar by Landlord related to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid Project as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord whole and not related solely to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the BuildingTenant.
Appears in 2 contracts
Samples: Multi Purpose Commercial Building Lease (Sientra, Inc.), Multi Purpose Commercial Building Lease (Sientra, Inc.)
Operating Expenses. Tenant shall pay to Landlord on in the first day of each month during the Term, manner set forth in addition to the Base RentParagraph 15.3 below, Xxxxxx's Share ’s pro rata share of all the expenses (hereafter “Operating Expenses Expenses”) in accordance connection with the following provisions:
(a) Operating Expenses" are all costs incurred by Landlord relating to the maintenance, repair, replacement, and operation of the Real Property. It is understood and agreed that the term “Operating Expenses” shall include , but shall not be limited to, all sums expended in connection with the Real Property for (1) salaries, wages, benefits and other payroll expenses of employees engaged in the operation, maintenance or repair of the Building; (2) property management fees and expenses; (3) rent (or rental value) and expenses for Landlord’s and any property manager’s offices in the Building; (4) janitorial, maintenance, security, life safety and other services, such as alarm service, window cleaning and elevator maintenance (if applicable) and uniforms for personnel providing services; (5) general maintenance, repairs, painting and pest control within the Building; (6) maintenance, repair and replacement, resurfacing or repaving, painting, and re-striping of paved areas, sidewalks, curbs and gutters; (7) cleaning, sweeping and trash removal; (8) maintenance, replacement and repair of sprinkler systems, irrigation systems, landscaping and ground keeping; (9) management, operation, maintenance and repair of all public, private and park areas within and adjacent to the Building; (10) lighting, electricity, natural gas, water, waste disposal, sewage, music and other utilities and services; (11) maintenance, repair and replacement of signs on the Real Property which tenants and/or occupants of the Real Property are not obligated to repair, including any pylon, monument, or directional signs and other markers and bumpers; (12) maintenance, repair or replacement of any fire protection systems, automatic sprinkler systems, lighting systems, heating, ventilation and air conditioning systems, storm drainage systems, and any other utility systems, and costs associated with the submetering of utilities; (13) compliance with all federal, state, local codes laws including, but not limited to, the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition requirements of the Common AreasAmericans with Disabilities Act (the “ADA”), including parking areas, loading costs incurred in connection with the defense and/or settlement of any claims alleging any violation of the ADA or similar laws and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directoriesthe remediation or correction of any such violations; (ii14) waterlegal, gas, electricity, telephone accounting and other utilities servicing professional services for the Common AreasReal Property, including costs, fees and expenses of contesting the validity or applicability of any law, ordinance, rule, regulation or order relating to the Real Property; (iii15) trash disposalpersonnel to implement such services and to police the Real Property, janitorial police and fire protection services, snow removalincluding security guards, and security servicesall at the sole discretion of Landlord; (iv16) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to depreciation and maintenance on personal property, including window and floor coverings in the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost other public portions of the capital improvement by Landlord's estimate of Real Property, and operating machinery and equipment (if owned) and rental paid for furniture, fixtures, materials, supplies, tools ,machinery and equipment (if rented) used for the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); management, operation and (vii) maintenance of the Building includingReal Property; (17) license, but not limited topermit and inspection fees and costs; (18) costs associated with obtaining and maintaining the insurance described in Section 12.1, paintingabove, caulking including any deductibles and repair attorneys’ fees paid in connection with an insured loss and replacement of Building componentscosts incurred in obtaining insurance proceeds, includingand including an imputed insurance premium if Landlord self-insures, but not limited toor a proportionate share if Landlord insures under a “blanket” policy; (19) any parking charges, roofsurcharges or any other costs levied or assessed by local, elevators and fire detection and sprinkler systems.
(b) To state or federal government agencies in connection with the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent lossesparking facilities; (ii20) the cost of any electricity or other utilities consumed for Common Areas and capital improvements made at any taxes levied thereontime to the Building in accordance with Section 15.2 (11); (iii21) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in questionsales, use and excise taxes; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Building.[and]
Appears in 2 contracts
Samples: Lease Agreement, Retail Lease
Operating Expenses. Tenant shall pay to Landlord Throughout the Term of this Lease, commencing on the first day of each month during the TermCommencement Date, in addition Tenant agrees to the Base Rent, Xxxxxx's Share of all Operating Expenses pay Landlord as additional rent in accordance with the following provisions:
(a) Operating Expenses" are all costs incurred by Landlord relating to the operation of the Property, including, but not limited to, the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 terms of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building includingParagraph 6, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In taxes and insurance for the event that Tenant shall dispute Project and all costs and expenses of the amounts set forth in any operation, maintenance, repair, and replacement of Landlord's statements regarding actual Operating Expensesthe Project including, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall excludewithout limitation: (i) bad debt lossesany form of real property tax assessment, rent losses license fee, license tax, business license fee, commercial rental tax, levy, charge, improvement bond or reserves for bad debt similar imposition of any kind or rent lossesnature imposed by any authority having the direct power to tax, including any city, county, state or federal government, or any school, agricultural lighting, drainage or other improvement or special assessment district thereof; (ii) any and all assessments under any covenants, conditions and restrictions affecting the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereonProject; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in questionwater, sewer and other utility charges; (iv) costs of insurance obtained by Landlord pursuant to Paragraph 19 of the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereofLease; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Buildingwaste disposal and janitorial services; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgageesecurity; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursementlabor; (viii) ground rentmanagement costs including, if anywithout limitation: (A) wages and salaries (and payroll taxes and similar charges) of property management employees, or any other payments under any superior leaseand (B) management office rental, supplies, equipment and related operating expenses and management fees; (ix) depreciationsupplies, amortization materials, equipment and other, similar noncash itemstools including rental of personal property; (x) costs repair and expenses incurred in connection maintenance of the structural portions of the buildings with the creationProject, maintenanceincluding the plumbing, modification heating, ventilating, air-conditioning and electrical systems installed or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoingfurnished by Landlord; (xi) expenses incurred to leasemaintenance, license, sell, syndicate, hypothecate, transfer or otherwise dispose costs and upkeep of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees all parking and disbursements, transfer and gains taxes and recording chargesother Common Areas; (xii) damages, attorneys' fees depreciation on a straight line basis and disbursements paid as a result rental of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Building.personal property used in maintenance;
Appears in 2 contracts
Samples: Early Possession Agreement (Litronic Inc), Lease Agreement (Litronic Inc)
Operating Expenses. Tenant shall pay to Landlord Throughout the Term of this Lease, commencing on the first day of each month during the TermCommencement Date, in addition Tenant agrees to the Base Rent, Xxxxxx's Share of all Operating Expenses pay Landlord as additional rent in accordance with the following provisions:
(a) Operating Expenses" are all costs incurred by Landlord relating to the operation of the Property, including, but not limited to, the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 terms of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building includingSection 4, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such for the taxes and insurance for the Project and for all costs and expenses for the year.
operation, maintenance, repair, and replacement of the Project including, without limitation: (di) In any form of real property tax, assessment, license fee, license tax, business license fee, commercial rental tax, levy, charge, improvement bond or similar imposition of any kind or nature imposed by any authority having the event direct power to tax, including any city, county, state or federal government, or any school, agricultural, lighting, drainage or other improvement or special assessment district thereof; (ii) any and all assessments under any covenants, conditions and restrictions affecting the Project; (iii) water, sewer and other utility charges; (iv) costs of insurance obtained by Landlord pursuant to Section 21 of this Lease; (v) waste disposal and janitorial services; (vi) security; (vii) labor; (viii) management costs including, without limitation: (A) wages and salaries (and payroll taxes and similar charges ) of property management employees, and (B) management office rental, supplies, equipment and related operating expenses and commercially reasonable management/administrative fees; (ix) supplies, materials, equipment and tools including rental of personal property; (x) repair and maintenance of the structural portions of the buildings within the Project, including the plumbing, heating, ventilating, air-conditioning and electrical systems installed or furnished by Landlord; (xi) maintenance, sweeping, repairs, resurfacing, and upkeep of all parking and other Common Areas; (xii) amortization on a straight line basis over the useful life [together with interest at the Interest Rate on the unamortized balance] of all capitalized expenditures which are: (A) reasonably intended to produce a reduction in operating charges or energy consumption; or (B) required under any governmental law or regulation that Tenant shall dispute was not applicable to the amounts set forth Project as of the Commencement Date (however, if such expenditure by Landlord is required solely due to Tenant's particular use, occupancy or alteration of the Premises, then regardless of when such law or regulation became in any of Landlord's statements regarding actual Operating Expenseseffect, Tenant shall have the right, not later than 180 days following the receipt be responsible for all of such expenditure); or (C) for replacement or restoration of any such statement, Project equipment and/or improvements needed to review Xxxxxxxx's books and records with respect operate and/or maintain the Project at the same quality levels as prior to the period replacement or restoration; (xiii) gardening and landscaping; (xiv) maintenance of time covered by such statement. Any such review by Tenant shall occur upon not less signs (other than 10 days' prior notice signs of tenants of the Project); (xv) personal property taxes levied on or attributable to Landlord at the place of business of Landlord's personal property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement used in accordance connection with the preceding provisions Common Areas; (xvi) reasonable accounting, audit, verification, legal and other consulting fees; and (xvii) any other costs and expenses of this paragraph within 180 days following the receipt of Landlord's statementrepairs, such statement shall be deemed to be conclusively binding upon Tenant.
(e) maintenance, painting, lighting, cleaning, and similar items, including appropriate reserves. Notwithstanding anything to the contrary in the definition of Operating Expenses set forth in this leaseLease, Operating Expenses shall exclude: not include the following:
(ia) bad debt lossesdepreciation on the Building and Project;
(b) interest, rent losses or reserves for bad principal, points and fees on debt or rent lossesamortization on any mortgages and deeds of trust or other debt instruments secured by the Building or the Project or any underlying ground lease;
(c) costs of repairs and general maintenance paid from insurance proceeds but excluding the amount of any deductibles paid by Landlord;
(d) repairs and replacements covered by warranties or guaranties (to the extent actually collected by Landlord); (ii) and the cost of any electricity repairs, alterations and additions made to rectify or other utilities consumed for Common Areas and correct any taxes levied thereon; (iii) amounts paid major defects or significant design errors relating to affiliates of Landlord in excess the initial design or construction of the competitive Building and Project;
(e) costs of items considered capital repairs, replacements, improvements and equipment under generally accepted accounting principles consistently applied except for those items expressly permitted in clause (xii) above;
(f) costs of special services rendered to individual tenants (including Tenant) for which a special charge is made to the tenant(s) receiving such special services;
(g) costs of improvements for other tenants in the Building or Project;
(h) costs of the item in question; Landlord for which a tenant is obligated to separately reimburse Landlord (ivas opposed to reimbursement of a pro rata share thereof as an Operating Expense), including, for example, taxes and property insurance premiums on improvements for tenants of the Building and Project that are above the building standard;
(i) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred by Landlord in connection with the construction, refurbishing or expansion enforcement of the Building; terms and conditions of any lease in the Building or Project;
(vij) transferall costs, gainsexpenses, franchisepenalties, giftdamages, inheritancefines and judgments from any investigation, estate and income taxes imposed upon Landlordsite monitoring, containment, cleanup, removal, restoration or other remedial work of any kind or nature required under any local, state or federal law or regulation, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if anyjudicial order, or by any governmental or nongovernmental entity or person as a result of or in connection with any Hazardous Material or Hazardous Materials contamination;
(k) Landlord's general corporate overhead and general and administrative expenses;
(l) Marketing costs, including, without limitation, leasing commissions, attorneys' fees, space planning costs and other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose leasing of the Building or Project; and
(m) Overhead and profit increment paid to Landlord and Landlord's subsidiaries for goods and/or the land thereunder services in or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord Project to the extent that the same is separate and apart from exceeds the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any such goods and/or services or work provided to rendered by unaffiliated third parties on a particular tenant of the Building, but not to all tenants of the Buildingcompetitive basis.
Appears in 2 contracts
Samples: Multi Tenant Industrial Lease (Aurora Biosciences Corp), Multi Tenant Industrial Lease (Triple Net) (Aurora Biosciences Corp)
Operating Expenses. During each month of the Lease Term, on the same date that Base Rent is due, Tenant shall pay Landlord an amount equal to 1/12 of the annual cost, as estimated by Landlord on the first day from time to time, of each month during the Term, in addition to the Base Rent, Xxxxxx's Tenant’s Proportionate Share (hereinafter defined) of all Operating Expenses in accordance with for the following provisions:
(a) Project or Building. Payments for any fractional calendar month shall be prorated. The term “Operating Expenses" are ” means all costs and expenses incurred by Landlord relating with respect to the ownership, maintenance, and operation of the Property, Project including, but not limited toto costs of: Taxes (hereinafter defined) and fees payable to tax consultants and attorneys for consultation and contesting taxes; insurance; utilities; maintenance, the following: (i) the operation, repair, maintenance repair and replacement in neat, clean, good order and condition of all portions of the Common AreasBuilding, Premises, and Project, including without limitation, paving and parking areas, loading roads, non-structural components of exterior walls, non-structural components of the roofs (including the roof membrane), alleys, and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areasmowing, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial serviceslandscaping, snow removal, exterior painting, utility lines, fire sprinklers and fire protection systems, the current amortized portion of any capital repairs and replacements of all portions of the Building, Premises, and Project, heating, ventilation and air conditioning systems (as defined below), lighting, electrical systems and other mechanical and building systems; amounts paid to contractors and subcontractors for work or services performed in connection with any of the foregoing; charges or assessments of any association to which the Project is subject; a property management or administration fee payable to a property manager, including Landlord, or any affiliate of Landlord, equal to three (3%) percent of gross receipts due and payable by Tenant to Landlord under this Lease; a deductible for all-risk property insurance not to exceed USD$25,000; security services, if any; trash collection, sweeping and debris removal; and additions or alterations made by Landlord to the Project or the Building in order to comply with Legal Requirements (other than those expressly required herein to be made by Tenant) or that are appropriate to the continued operation of the Project or the Building as an industrial/warehouse facility in the market area, provided that the cost of additions or alterations that are required to be capitalized for federal income tax purposes shall be amortized on a straight line basis over a period equal to the useful life thereof as determined by Generally Accepted Accounting Principles. Operating Expenses do not include (a) debt service under mortgages or ground rent under ground leases; (ivb) Real Property Taxesleasing commissions, or the costs of renovating space for tenants; (vc) premiums for repairs, alterations, additions, improvements or replacements made to rectify or correct any defect in the design, materials or workmanship of the Premises, the Building or the Project; (d) costs of repairs, restoration, replacements or other work occasioned by (i) fire, windstorm or other casualty (including the costs of any deductibles paid by Landlord) and either (aa) payable (whether paid or not) by insurance policies maintained required to be carried by Landlord under Paragraph 8 this Lease, or (bb) otherwise paid by insurance then in effect obtained by Landlord (ii) the adjudicated negligence or adjudicated intentional tort of this Landlord, or any representative, employee or agent of Landlord, (iii) the act of any other tenant in the Premises, the Building or the Project, or any other tenant’s agents, employees, licensees or invitees to the extent the applicable cost is, in the Landlord’s reasonable judgment, practically recoverable from such person; (e) costs incurred (less costs of recovery) for any items to the extent such amounts are, in Landlord’s reasonable judgment, recoverable by Landlord under a manufacturer’s, materialman’s, vendor’s or contractor’s warranty; (f) non-cash items, such as deductions for depreciation and amortization of the Premises, the Building or the Project and the Premises, the Building or the Project equipment, or interest on capital invested; (g) legal fees, accountants’ fees and other expenses incurred in connection with disputes with other tenants or occupants of the Premises, the Building or the Project or associated with the enforcement of any lease or defense of Landlord’s title to or interest in the Premises, the Building or the Project or any part thereof; (h) costs incurred due to violation by Landlord or any other tenant in the Premises, the Building or the Project of the terms and conditions of any lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity service provided to Tenant or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess occupants of the competitive costs of Premises, the item in question; (iv) Building or the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs Project for which Landlord is reimbursed through a condemnation awardentitled to be reimbursed; (j) charitable or political contributions; (k) interest, penalties or other costs arising out of Landlord’s failure to make timely payments of its obligations; or (l) costs, expenses, depreciation or amortization for repairs and replacements required to be made by Landlord under Paragraph 11 of this Lease. If Tenant’s total payments of Operating Expenses for any year are less than Tenant’s Proportionate Share of actual Operating Expenses for such year, then Tenant shall pay the proceeds difference to Landlord within 30 days after demand, and if more, then Landlord shall either, at Landlord’s option, retain such excess and credit it against Tenant’s next payments of insurance Operating Expenses or otherwisepay such refund to Tenant, but only except that during the last calendar year of the Lease Term or any extension terms thereof, Landlord shall refund any such excess within 60 days following the termination of the Lease Term or any extension terms thereof, provided that Tenant is not in default of its obligations under this Lease. Any payment required to be paid by Landlord after the expiration or earlier termination of the Lease shall be delivered to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant most recent address Tenant has provided to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar Landlord. With respect to Operating Expenses which Landlord allocates to the foregoing; (xi) expenses incurred to leaseentire Project or just the Building, license, sell, syndicate, hypothecate, transfer Tenant’s “Proportionate Share” shall be the percentage set forth in Paragraph 1 of this Lease as Tenant’s Proportionate Share of the Project or otherwise dispose Tenant’s Proportionate Share of the Building and/or (as applicable) as reasonably adjusted by Landlord in the land thereunder future for changes in the physical size of the Premises, Building, or the Project. Landlord may equitably increase Tenant’s Proportionate Share for any item of expense or cost reimbursable by Tenant that relates to a repair, replacement, or service that benefits only the Premises or only a portion of the Property (including any interest Project or Building that includes the Premises or that varies with Xxxxxx’s use. The estimated Operating Expenses for the Premises set forth in Landlord) Paragraph 1 of this Lease are only estimates, and Landlord makes no guaranty or any "air" or "development" rights (whether warranty that such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Buildingestimates will be accurate.
Appears in 2 contracts
Samples: Lease Agreement (RayzeBio, Inc.), Net Lease Agreement (RayzeBio, Inc.)
Operating Expenses. Tenant (as such term is hereby defined) shall pay to Landlord on the first day of each month during the Terminclude all costs and expenses and reasonable reserves, in addition to the Base Rent, Xxxxxx's Share of all Operating Expenses determined in accordance with the following provisions:
(a) Operating Expenses" are all costs generally accepted accounting principles, consistently applied, and incurred by Landlord relating in connection with the ownership, operation and maintenance of the Property including without limitation: all materials, equipment and supplies, together with all service, maintenance, and labor agreements, relative to the maintenance, repair and replacement, as necessary, of the Premises and the common areas of the Property and all electrical, plumbing and mechanical systems therein; all utilities and related expenses and deposits, including costs incurred in connection with any energy management program for the Property; all landscaping stock, equipment and maintenance agreements; all janitorial services, equipment and supplies; snow removal; fire protection and security (if provided); any private trustee or indenture charges; maintenance, repair and replacement, as necessary, of the sprinkler systems, downspouts, gutters and nonstructural portions of the roof; the paving, resealing and/or re-striping of all parking facilities, access roads, driveways, sidewalks and passageways; heating, ventilation and air conditioning (“HVAC”) of the Property, as well as all maintenance, repairs and any replacements to the HVAC units servicing the Property; all Property signage; all wages/salaries, fees and commissions and related benefits of all employees and independent contractors engaged in the operation and management of the Property, together with any applicable social security taxes, employment taxes or other taxes levied against such wages/salaries; premiums and deductibles for liability, property damage, fire, workers compensation, rent and mortgage insurance, and any other insurance which Landlord deems necessary to carry on, for or in connection with the operation of the Property, includingor for the protection of the Property, and the interests of Landlord and Landlord’s agents and mortgagees; management fees; cleaning and vermin extermination; capital improvements which are required by any governmental authority to keep the Property in compliance with all applicable statutes, codes and regulations; capital improvements which reduce other Operating Expenses, but in an amount not limited to, to exceed the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition reduction of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums Operating Expenses for the insurance policies maintained by Landlord under Paragraph 8 of this leaserelevant year; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization rental and/or amortized costs of any given capital improvement shall be machinery or equipment used in connection with the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% operation or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building includingProperty; and all other expenses incurred by Landlord for or on behalf of the Property. For purposes of establishing the amount of Operating Expenses for the Base Year, but Operating Expense shall not limited toinclude any unique or extraordinary expenses as reasonably determined by Landlord, paintingsuch as those caused by any strikes, caulking shortage of materials, utility blackouts, terrorism, or one-time assessments. Operating Expenses shall not include: any expense chargeable to a capital account or capital improvement (other than aforesaid); ground leases; principal or interest payments on any mortgage or deed of trust on the Property; any amount for which Landlord is reimbursed through insurance, by third persons, or directly by other tenants of the Property; brokers commissions and repair other expenses incurred in the leasing of space to tenants in the Property. In the event the Property is not fully occupied in the initial calendar year or during any subsequent calendar year during the Term, then those Operating Expenses of the Property which are variable for that year (that is, those Operating Expenses which change depending upon the occupancy level of the Property (such as janitorial costs and replacement usage of Building componentselectricity), includingas distinguished from those Operating Expenses which do not change depending upon the occupancy level of the Property (such as landscaping costs and casualty insurance)), but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To shall be deemed to be increased by an amount reasonably determined by Landlord to reflect the extent Landlord shall determineOperating Expenses which would have been expended had the Property been fully occupied. Similarly, in its reasonable discretionthe event Landlord is not furnishing any particular work or service to a tenant who has undertaken to perform such work or service in lieu of Landlord, that any of the Operating Expenses shall be deemed to be increased by an amount reasonably determined by Landlord to reflect the Operating Expenses which would have been incurred solely for expended had Landlord performed such work or service. Nothing contained in this Section 4(b) shall be construed as requiring Landlord to perform any services or make any expenditure with respect to the benefit of Tenant Premises or otherwise solely or substantially as a result of Tenant's use of the demised premises, Property unless such obligation is expressly set forth in this Lease. Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion invoice Tenant monthly, quarterly, or otherwise from time to time, for Tenant’s Proportionate Share of the improvementsTaxes and Operating Expenses, facilities as reasonably estimated by Landlord; and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly to Landlord, as Additional Rent, those amounts for which Tenant is invoiced within thirty (30) days after receipt of said invoice. Any monies paid in advance on to Landlord by Tenant shall not accrue interest thereon. After each calendar year, Landlord shall deliver a statement to Tenant setting forth Tenant’s actual obligation for Taxes and Operating Expenses, and the same day as total amount of payments paid by Tenant to Landlord for such purposes. In the Base Rent is due event Tenant's Share ’s actual obligation for Taxes and/or Operating Expenses exceeds Tenant’s payments for such respective purposes, Tenant shall pay the applicable difference to Landlord within thirty (30) days after receipt of estimated Landlord’s statement. Conversely, in the event Tenant’s respective payments toward Taxes and/or Operating Expenses exceed Tenant’s actual obligation for each of the same, Landlord shall either refund the applicable overpayment to Tenant or credit said overpayment against Tenant’s obligation for such specific expense in the forthcoming year. In the event Taxes or Operating Expenses in any calendar year are less than the amount set forth respective Taxes and Operating Expenses for the Base Year, Tenant shall not receive a refund or credit against any Tax or Operating Expense obligation in Paragraph 1.6 that same or any subsequent calendar year. If upon the expiration or earlier termination of this lease. Lease there is accrued but unbilled Additional Rent, Tenant’s obligation with respect to any amounts owed to Landlord shall deliver to survive; and, at Landlord’s option, Tenant within 90 days shall either (i) pay such amounts after the expiration of each calendar year a the Term when such Additional Rent has been accurately determined within fifteen (15) days after receipt of Landlord’s statement, or (ii) pay an amount reasonably detailed statement showing Xxxxxx's Share estimated by Landlord prior to the expiration of the actual Operating Expenses incurred during the preceding yearTerm. If Tenant's estimated payments under Paragraph 4.2(cWithin thirty (30) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date receipt of such each year-end statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statementat Tenant’s sole cost and expense, to review Xxxxxxxx's books inspect and audit Landlord’s records with respect to Tenant’s Proportionate Share of Additional Rent, which audit shall be at the period accounting office of time covered by such statement. Any such review by Tenant shall occur Landlord, upon not less than 10 days' ten (10) days prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property managerwritten notice, during the Landlord’s normal business hours hours, subject to execution of a confidentiality agreement acceptable to Landlord, and provided that if Tenant utilizes an independent accountant to perform such review it shall be one of national standing which is reasonably acceptable to Landlord, is not compensated on a contingency basis and is also subject to such confidentiality agreement. Except as aforesaid, Landlord or such property manager. If Tenant shall not request a review be obligated to provide Tenant with detailed summaries or receipts for any expenses incurred by or on behalf of any the Property, but Landlord shall provide Tenant with one or more statements setting forth such statement in accordance with the preceding provisions of this paragraph expenses, categorized by class and amount. Unless Tenant timely elects to audit such records and asserts specific errors within 180 ninety (90) days following the after receipt of Landlord's such year-end statement, such said statement shall be deemed to be conclusively binding upon Tenantcorrect.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Building.
Appears in 2 contracts
Samples: Standard Office Building Lease (Eargo, Inc.), Standard Office Building Lease (Eargo, Inc.)
Operating Expenses. Throughout the Lease Term, Tenant shall agrees to pay to Landlord on the first day Landlord, as Additional Rent, Tenant's Proportionate Share, as set forth in Section l(a)(6), (and as may be adjusted as contemplated by Section 2(a)), of any increase in operating expenses during each month during the Term, in addition to calendar year over the Base Rent, Xxxxxx's Share of Operating Expense Amount specified in Section l(a)(17). The term "operating expenses" shall mean any and all Operating Expenses in accordance with the following provisions:
(a) Operating Expenses" are all costs expenses reasonably incurred by Landlord relating to in connection with owning, managing, operating, maintaining, servicing, insuring and repairing the operation of Building, and the Propertyattached land and parking lot, includingand its related exterior appurtenances, including but not limited to, the following: (i1) wages and salaries of all employees engaged in the operationmanagement, repairoperation or maintenance of the Building, including taxes, insurance and benefits relating hereto; (2) all supplies, materials, equipment and tools used in the operation or maintenance of the Building; (3) cost of all maintenance and replacement service agreements for the Building and the equipment therein, including but not limited to controlled access and energy management services, window cleaning and elevator maintenance; (4) cost of all insurance relating to the Building, including the cost of casualty, liability and rent loss insurance applicable to the Building and Landlord's personal property used in neatconnection therewith; (5) general and special repairs and maintenance; (6) management fees; (7) legal, cleanaccounting, good order auditing and condition other professional fees; (8) the cost of any additional services not provided to the Building at the Commencement Date of the Common AreasLease Term, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directoriesbut thereafter provided by Landlord in the prudent management of the Building; (ii9) waterreasonable reserves for replacements, repairs and contingencies; (10) costs for char service and cleaning supplies; (11) costs for utility services such as electricity, gas, electricity, telephone water and other utilities servicing sewage (including any costs incurred in changing the Common Areasprovider providing electricity services); (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity capital improvements or alterations made to the Building after the Commencement Date of the Lease Term, that reduce other utilities consumed operating expenses, or which are required under any governmental law or regulation that was not applicable to the Building at the time it was constructed, such cost to be amortized over such reasonable period as Landlord shall reasonably determine, together with interest on the unamortized balance at the rate paid by Landlord on funds borrowed for Common Areas and any taxes levied thereonthe purposes of constructing said capital improvements; (iii13) amounts transportation district fees, parking district fees, and the cost of other amenities required by law; and (14) "real estate taxes" (as hereinafter defined). "Operating Expenses" shall not include any of the following, except to the extent that such costs and expenses are included in operating expenses as described in the previous sentence: capital expenditures; depreciation of the Building or equipment therein; costs of painting or decorating tenant space; leasing brokerage commissions; interest and amortization of mortgages; ground rent; the costs of special services or utilities separately charged to individual tenants of the Building; or that portion of any Operating Expenses that is paid to affiliates of any entity affiliated with Landlord that is in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or amount that would otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements have been paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Buildingnon-affiliated entity.
Appears in 1 contract
Samples: Office Building Lease (Pc Tel Inc)
Operating Expenses. Tenant shall also pay to Landlord on the first day of each month monthly in advance, without demand, offset, abatement or deduction, as Additional Rent during the Lease Term, in addition to the Base Rent, Xxxxxx's Tenant’s Proportionate Share of all Operating Expenses costs which Landlord may incur in accordance with owning, maintaining, operating, and repairing (including replacements when repairs are not economically prudent in Landlord’s reasonable discretion) the following provisions:
(a) Building, Common Areas and all other improvements within the Project. All such costs are referred to herein as “Operating Expenses" ” and are all costs incurred by Landlord relating hereby defined to the operation of the Propertyinclude, including, but not limited towithout limitation, the following: (ia) costs (including without limitation, sales and service taxes) incurred by Landlord in the operation, repair, maintenance and replacement in neat, clean, good order and condition management of the Common Areas, including parking areas, loading Project and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directoriesfulfillment of its obligations under Section 12.B of this Lease; (iib) utility charges for Common Areas of the Project and water, gas, electricity, telephone sewer and any other utilities servicing utility charges not separately metered to a particular tenant in the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph Building as provided in Section 8 of this leaseLease; (vic) monthly amortization of capital improvements to the Common Areas and the Building exterior window washing services (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by lawif provided); (d) debris, snow and ice removal; (viie) maintenance of the Building includingparking lot sweeping, but not limited topatching and sealcoating; (f) maintenance, painting, caulking and repair and replacement of Building componentslandscaping, includingirrigation systems and retaining walls; (g) management fees; (h) wages and benefits payable to employees of Landlord below the level of corporate property manager employed to perform maintenance, but not limited tooperation, roofrepair or replacement work for the Project; (i) all services, elevators tools, equipment, and supplies used for maintaining, operating, repairing or replacing the Project; (j) all real property taxes, installments of special assessments and governmental impositions of any kind whatsoever imposed upon Landlord by reason of its ownership, operation or management of the Premises, including without limitation any administrative fees incurred in connection with property tax appeals equal to no greater than thirty percent (30%) of any property tax savings plus any filing fees, service fees, appraisal fees and expert witness fees; (k) dues and assessments by means of covenants, conditions, easements or restrictions of record and/or owners’ associations if any, which accrue against the Project during the term of this Lease; (l) all premiums, deductibles, retentions, commissions, service fees and administrative fees for insurance coverages Landlord is required to carry pursuant to Section 12.C of this Lease or by its lender, or that Landlord otherwise deems reasonably necessary to carry, including without limitation, property insurance, commercial general liability insurance, and rent loss insurance; (m) maintenance, repair, monitoring and testing of fire detection and sprinkler systems.
, storm sewer ponds, wetlands and ground water; (bn) To the extent yearly amortization of major non-recurring capital expenditures, costs, repairs, and replacements (including without limitation, improvements Landlord is required to make to the Project pursuant to this Lease, if any, to comply with applicable laws, and installation of any device or equipment which improves the operating efficiency of any system within the Premises or the Project) which shall determine, in its reasonable discretion, that any be amortized over the useful life of the Operating Expenses shall have been incurred solely improvement and at an interest rate as reasonably determined by Landlord; and (o) all other expenses which would generally be regarded as operating, repair, replacement and maintenance expenses or Common Area expenses for which Landlord is responsible pursuant to the benefit terms of Tenant or otherwise solely or substantially as a result of Tenant's use of leases at the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by XxxxxxProject. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this leaseforegoing notwithstanding, Operating Expenses shall excludenot include: (i1) costs for any employees above the rank of building manager; (2) leasing commissions and marketing costs related to leasing or releasing of the Project; (3) payments of principal, interest, financing or refinancing costs on debt or amortization payments on any mortgage or underlying ground lease encumbering the Project; (4) Landlord’s franchise or income taxes; (5) depreciation; (6) bad debt lossesdebts, rent losses loss or reserves for bad debt debts or rent lossesloss; (ii7) repairing or replacing any damage caused by condemnation; (8) costs reimbursed to Landlord from insurance proceeds or third parties; (9) costs to correct violation of law applicable to the cost Premises, the Building or the Project on the Commencement Date; (10) insurance costs for coverage not customarily paid by Tenants of similar projects in the vicinity of the Premises, earthquake insurance premiums, increases in insurance costs caused by the activities of another occupant of the Project; (11) costs incurred in connection with the presence of any electricity Hazardous Material, except to the extent caused by the release or other utilities consumed for Common Areas and any taxes levied thereonemission of the Hazardous Material in question by Tenant; (iii12) amounts paid expense reserves; (13) capital improvement and replacement costs, except to affiliates of Landlord in excess the extent amortized over the useful life of the competitive costs of the capital item in question; (14) costs for services not provided to Tenant under this Lease; (15) profit or compensation paid or retained by Landlord or its affiliates for management and administration of the Project in excess of 4% of gross Rent; and (16) any portion of any tax or assessment expense or any increase (i) levied on Landlord’s rental income, unless such tax or assessment is imposed in lieu of real property taxes, (ii) in excess of the amount which would be payable if such tax or assessment expense were paid in installments over the longest permitted term, (iii) imposed on land and improvements other than the Project, (iv) the cost of removing and/or abating any asbestos attributable to Landlord’s net income, inheritance, gift, transfer, estate or other Hazardous Substances in state taxes, or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion resulting from a transfer of improvements of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs Project for which Landlord is reimbursed through a condemnation award, the proceeds sole use of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Buildingoccupants.
Appears in 1 contract
Operating Expenses. Tenant shall pay to Landlord on All costs incurred by Landlord, if any, for any of the first day of each month during the Term, in addition to the Base Rent, Xxxxxx's Share of all Operating Expenses in accordance with the following provisionsfollowing:
(a) Operating Expenses" are all costs incurred by Landlord relating to the operation of the Property, including, but not limited to, the following: (i) the The operation, repairrepair and maintenance, maintenance and replacement in neat, clean, clean and good order and condition of (i) the Common AreasPremises, including without limitation all parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, and irrigation systems, drainage systems, common area lighting facilities, and fences and gates, exterior signs and tenant directories; (ii) waterfire detection in the Premises, gas, electricity, telephone including sprinkler system maintenance and other utilities servicing the Common Areasrepair; and (iii) trash disposalunless allocated directly to Tenant pursuant to Section 8.1(b), janitorial servicesthe heating, snow removal, ventilation and security services; air conditioning (iv"HVAC") Real Property Taxes; (v) premiums for systems serving the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systemsPremises.
(b) To the extent any such services are provided, trash disposal, security services, gardening, painting, plumbing, electrical, carpentry, window washing, signage and equipment rental expenses, and any other service to be provided by Landlord shall determine, that is elsewhere in its reasonable discretion, that the Lease stated to be an item of Operating Expenses.
(c) Any deductible portion of an insured loss concerning any of the Operating Expenses shall have been incurred solely items or matters described in this Section.
(d) Premiums for the benefit any insurance policies maintained by Landlord pursuant to Section 11 below.
(e) Real Property Taxes to be paid by Landlord.
(f) Independent contractors for services (excluding capital improvements),and compensation (including employment taxes and fringe benefits) of Tenant or otherwise solely or substantially as a result of Tenant's use all persons who perform regular and recurring duties connected with day-to-day operation, maintenance and repair of the demised premisesPremises, Landlord shall have the right to require that provided such Operating Expenses be borne solely by Xxxxxxcompensation is commercially reasonable.
(g) Maintenance and repair of roofs, building walls, foundations, and all sewer and water facilities. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease the foregoing definition shall not be deemed to Landlord's representation that such improvements or facilities exist, nor shall it impose on Landlord any obligation upon Landlord either to either have said those improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on , unless the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses improvements or facilities already exist in the amount set forth in Paragraph 1.6 of this lease. Premises or Landlord shall deliver to Tenant within 90 days after already provides the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share services as of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if anyCommencement Date, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred unless Landlord has agreed to do so elsewhere in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the BuildingLease.
Appears in 1 contract
Samples: Standard Industrial Lease (Redline Performance Products Inc)
Operating Expenses. During the term of this Lease, and any extensions and renewals thereof, Landlord shall operate, manage, repair and maintain, in a first class manner consistent with other similar buildings in the Gaithersburg and Germantown, Maryland areas, the Building, the Land and the Common Areas. Tenant shall shall, during the entire term of this Lease, pay to Landlord on the first day of each month during the Term, in addition to the Base as Additional Rent, Xxxxxxthe Tenant's Pro Rata Share of all Operating Expenses in accordance with the following provisions:
(a) Operating Expenses" are all costs and expenses incurred by Landlord relating in operating, managing, repairing and maintaining the Building, the Land and the Common Areas, collectively referred to as "Operating Expenses". Said Operating Expenses shall include, but not be limited to, costs and expenses for: (i) removal of snow, ice, trash, rubbish and debris from the Common Areas; (ii) furnishing and maintaining electric service (and elevator service, if any) to the operation Building and the lighting of the PropertyCommon Areas; (iii) charges for furnishing and maintaining water and sewer service or other utility services to the Building, the Land and the Common Areas; (iv) trimming and grass cutting and all other maintenance and upkeep of the grounds, green areas and landscaping in the Common Areas; (v) maintaining, monitoring and testing the sprinkler system and sprinkler alarm system in the Building; (vi) maintaining, striping, cleaning and repairing the parking areas, driveways and sidewalks; (vii) trash pick-up and removal by a licensed contractor from containers located in a common enclosure(s) for the mutual use of all tenants in the Building, as well as the cost of maintaining and repairing said trash container enclosure(s); (viii) reasonable property management fees (not to exceed three percent (3%) of grossed-up rentals in the Building, where "grossed-up rentals" refers to the average basic annual rental in the Building plus Operating Expenses calculated without including the management fee); (ix) maintenance and repairs to the exterior of Building, including, but without limitation, exterior windows, doors, hardware, locks, lighting and lighting fixtures; (x) premiums incurred by Landlord, if any, for hazard, liability, workmen's compensation or similar insurance on contractors providing services to the Building, Land or Common Areas; (xi) Impositions (as defined in Section 8); (xii) Insurance Premiums (as defined in Section (8); and (xiii) any other costs and maintenance expenses for the Building, Land, Common Areas and all appurtenances thereto as may be deemed reasonably necessary by Landlord which under generally accepted accounting principles ("GAAP") properly constitute operating or maintenance costs and expenses attributable thereto. Operating Expenses shall not limited to, include any of the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition cost of the original construction of the Building or any additions or expansions to the Building, Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directoriesAreas or other items which under GAAP are properly classified as capital expenditures; (ii) water, gas, electricity, telephone any repairs or work performed to any portion of the Building intended to be occupied by individual tenants; (iii) the cost of correcting any defects in the original construction of the Building and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxesany reserves for future expenditures not yet incurred; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this leaseground lease rental; (vi) monthly amortization of capital improvements costs incurred by Landlord for repair or restoration to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained extent that Landlord is reimbursed by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% insurance or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, condemnation proceeds or that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgageewarranty; (vii) costs for which Landlord is reimbursed through a condemnation awardreasonable attorneys' fees, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any leasing commissions and other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with negotiations or disputes with present or prospective tenants or other occupants of, or persons, firms or entities with respect to, the creationBuilding; (viii) costs incurred by Landlord due to the negligence or misconduct of Landlord or its agents, maintenancecontractors, modification licensees and employees, or negotiation the violation by Landlord of a the terms and conditions of this Lease; (ix) interest, principal points and fees on debts or amortization on any mortgage or superior lease (mortgages or in litigation with a mortgagee or ground lessor), or any other financing or refinancing and debt instrument encumbering all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) Building or any "air" or "development" rights (whether such rights are transferred to or from the Land on which the Building is located; (x) advertising and promotional expenditures in connection with leasing the Building, and costs of the installation of signs identifying the owner and/or manager of the land thereunder)Building; (xi) any costs relating to hazardous materials, including (without limitation) brokerage commissions, attorney's fees asbestos and disbursements, transfer and gains taxes and recording chargesthe like not resulting from actions of Tenant; (xii) damagesany charges for depreciation of the Building, attorneys' fees or equipment (except costs of and disbursements depreciation of equipment installed or improvements made to reduce Operating Expenses); (xiii) any charge for Landlord's income taxes, excess profit taxes, or franchise taxes; (xiv) increased Insurance Premiums or Impositions assessed specifically to any tenant; (xv) any cost representing an amount paid to a person, firm, corporation or other entity related to Landlord which is in excess of the amount which would have been paid in the absence of such relationship; (xvi) Landlord's general overhead attributable to the activities of Landlord's officers and executives; (xvii) costs of repairs, alterations and/or replacements caused by the exercise of the rights of eminent domain; (xviii) expenses incurred by Landlord solely in its capacity as a result corporation, partnership or other business entity; (xix) costs, fines or penalties incurred due to violation by Landlord of a judgmentany laws or governmental rules or regulations, settlement except as incurred by Landlord in challenging any such law, rule or arbitration award resulting from any liability regulation; (xx) wages, salaries or other compensation to employees of Landlord or Landlord's agents, servants or contractorsagent with a professional status higher than the level of the Building Manager; and (xiiixxi) costs associated and expenses (other than management fees) paid to entities under common control with operating Landlord for services on or to the business of the legal entity which constitutes Landlord Building, but only to the extent that the same is separate and apart from the cost of operating such services exceeds normal rates being paid for such services to unaffiliated providers of such services by owners of other similar buildings in the Building (including, without limitation, forming and continuing such legal entity and tending area. There shall not be duplication in charges to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant Tenant by reason of the Building, but not provision setting forth Tenant's obligation to all tenants of the Buildingreimburse Landlord for Operating Expenses and any other provision in this Lease.
Appears in 1 contract
Operating Expenses. Tenant Lessee shall pay as Additional Rent Lessee's share as reasonably determined by the Lessor of all expenses, costs, and disbursements of every kind and nature (collectively, "Operating Expenses") which Lessor shall pay or become obligated to Landlord pay in connection with the ownership, operation and maintenance of the Building or the Land, including all facilities in operation on the first day of each month during the Term, Commencement Date and such additional facilities in addition subsequent years as may be determined by Lessor to the Base Rent, Xxxxxx's Share of all Operating Expenses in accordance with the following provisions:
(a) Operating Expenses" are all costs incurred by Landlord relating to be necessary or beneficial for the operation of the PropertyBuilding or the Land or the provision of services to lessees, including, but not limited to:
(a) all salaries, wages, fringe benefits, payroll taxes and workmen's compensation insurance premiums related thereto of and for employees engaged in the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance operation of the Building includingand the Land (with respect to employees who are engaged in the operation of other properties as well as the Building and the Land, but not limited to, painting, caulking and repair and replacement these amounts shall be pro-rated on the basis of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.the relative amount of time spent by such employees on the various properties);
(b) To the extent Landlord shall determinepainting, in its reasonable discretionrepairs, that any maintenance and cleaning of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.all Common Areas;
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming electricity, steam, water, sewer and continuing gas) for all interior Common Areas and lighting of exterior areas and the "Parking Area" (as defined in Section 9.0 below);
(d) maintenance and repair of the Building heating and cooling systems, the plumbing systems, the fire detection and suppression systems, the electrical system and the elevators;
(e) all maintenance, janitorial, and service agreements;
(f) all insurance, including the cost of casualty and liability insurance applicable to the Parking Area, the Land, the Building and Lessor's personal property used in connection therewith, including the amount of any reasonable deductible payable by Lessor in making repairs and restoration after a casualty;
(g) maintenance of landscaped areas and paved areas, and snow removal;
(h) maintenance of the Building security system;
(i) management fees, PROVIDED THAT such fees are paid at rates which are competitive with those commonly charged for the management of comparable properties in Cambridge, Massachusetts;
(j) capital items which are for the purpose of reducing Operating Expenses or upgrading services or which are at any time required by a governmental authority or the provisions of any insurance policy which is first adopted or first becomes applicable to the Premises, the Building or the Land after the date of this Lease, amortized over the reasonable life of the capital items on a straight line basis with the reasonable life being determined by Lessor in accordance with generally accepted accounting principles;
(k) reasonable expenses incurred in pursuing an application for an abatement of Taxes pursuant to Section 5.4 below to the extent not deducted from the abatement, if any, received; and
(l) legal entity (excluding legal fees with respect to lease negotiations and tending to its internal enforcement of lease terms against other lessees), accounting and legal affairsother professional fees and disbursements (excluding leasing commissions); or (xiv) costs of any services or work provided to a particular tenant . For so long as Lessee is the sole occupant of the Building, but not to all tenants Lessee shall be responsible for one hundred percent (100%) of the BuildingOperating Expenses.
Appears in 1 contract
Samples: Lease (Analog Devices Inc)
Operating Expenses. Tenant As used in this Section 4.4, the term "BUILDING'S SHARE" shall pay to Landlord mean a fraction, the numerator of which is the rentable square footage of the Building, and the denominator of which is the rentable square footage of the Project. Throughout the Term of this Lease, commencing on the first day of each month during the TermCommencement Date, and in addition to the Base RentTenant's obligations set forth in Section 3.4 hereof, Xxxxxx's Share of all Operating Expenses Tenant agrees to pay Landlord, as additional rent in accordance with the following provisions:
(a) Operating Expenses" are all costs incurred by Landlord relating to the operation terms of the Property, including, but not limited tothis Section 4, the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against XxxxxxBuilding's Share of Operating Expenses next becoming due hereunder orfor the operation, if such statement shall relate to the last calendar year falling whole or partially within the Termmaintenance, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statementrepair, Tenant shall pay to Landlord the amount and replacement of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust Project and the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating ExpensesCommon Area including, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall excludewithout limitation: (i) bad debt lossesany form of real property tax, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building assessment (including, without limitation, forming change in ownership taxes and continuing such legal entity assessments), license fee, license tax, business license fee, commercial rental tax, levy, charge, improvement bond or similar imposition of any kind or nature imposed by any authority having the direct power to tax, including any city, county, state or federal government, or any school, agricultural, lighting, drainage or other improvement or special assessment district thereof; (ii) any and tending to its internal accounting all assessments under any covenants, conditions and legal affairsrestrictions affecting the Project; (iii) water, sewer and other utility charges for the Common Area; (iv) costs of commercially reasonable insurance obtained by Landlord; (v) waste disposal and janitorial services; (vi) security (if any); (vii) labor; (viii) commercially reasonable management costs including, without limitation: (A) wages and salaries (and payroll taxes and similar charges ) of property management employees for the Common Area, (B) management office rental, supplies, equipment and related operating expenses for the Common Area; (C) commercially reasonable management/administrative fees; and (D) association fees and assessments; (ix) supplies, materials, equipment and tools including rental of personal property; (x) repair and maintenance of the structural portions of the buildings within the Project, including the plumbing, heating, ventilating, air-conditioning and electrical systems installed or furnished by Landlord; (xi) maintenance, sweeping, repairs, resurfacing, and upkeep of all parking and other Common Areas; (xii) amortization on a straight line basis over the useful life together with interest at the Interest Rate on the unamortized balance of all capitalized expenditures to the Project; (xiii) gardening and landscaping; (xiv) costs maintenance of any services or work provided to a particular tenant signs (other than signs of the Building, but not to all tenants of the BuildingProject); (xv) personal property taxes levied on or attributable to personal property used in connection with the Common Areas; (xvi) reasonable accounting, audit, verification, legal and other consulting fees; and (xvii) any other costs and expenses of repairs, maintenance, painting, lighting, cleaning, and similar items, including commercially reasonable reserves. Notwithstanding anything above to the contrary, the term "Operating Expenses" shall not include costs to correct latent defects in the base, shell and core of the Premises to the extent not caused by Tenant or Tenant's improvements to the Premises.
Appears in 1 contract
Samples: Single Tenant Industrial Lease (Alliance Pharmaceutical Corp)
Operating Expenses. Tenant shall pay to Landlord Throughout the Term of this Lease, commencing on the first day of each month during the TermCommencement Date, in addition Tenant agrees to the Base Rent, Xxxxxx's Share of all Operating Expenses pay Landlord as additional rent in accordance with the following provisions:
(a) terms of this Section 4, Tenant's Share of Operating Expenses. As used in this Lease, the term "Operating Expenses" are shall consist of all costs incurred and expenses for the ownership, operation, maintenance, repair and replacement of the Project as determined by Landlord relating to utilizing standard accounting practices and calculated assuming the operation Project is one hundred percent (100%) occupied. Operating Expenses shall include the following costs by way of the Property, including, illustration but not limited to, the followinglimitation: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (ii) any and all assessments under any covenants, conditions and restrictions affecting the Project; (iii) water, sewer and other utility charges; (iv) costs of insurance obtained by Landlord pursuant to Section 21 of this Lease; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this leasewaste disposal and janitorial services; (vi) monthly amortization of capital improvements to the Common Areas and the Building security; (the monthly amortization of any given capital improvement shall be the sum ofvii) labor; (viii) management costs including, without limitation: (A) the quotient obtained by dividing the cost wages, salaries, pension payments, fringe benefits, uniforms and dry-cleaning thereof (and payroll taxes, insurance and similar charges ) of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus property management employees, and (B) an amount equal management office rental, supplies, equipment and related operating expenses and commercially reasonable management/administrative fees; (ix) supplies, materials, equipment and tools including rental of personal property; (x) repair and maintenance of all portions of the buildings within the Project, including the plumbing, heating, ventilating, air-conditioning and electrical systems installed or furnished by Landlord; (xi) maintenance, sweeping, repairs, resurfacing, and upkeep of all parking and other Common Areas; (xii) amortization on a straight line basis over the useful life (together with interest at the Interest Rate on the unamortized balance) of all capitalized expenditures which are: (A) reasonably intended to produce a reduction in operating charges or energy consumption; or (B) required under any governmental law or regulation that was not applicable to the cost Project at the time it was originally constructed; or (C) for replacement or restoration of any Project equipment and/or improvements needed to operate and/or maintain the capital improvement times 1//12 of Project at the lesser of 12% same quality levels as prior to the replacement or the maximum annual interest rate permitted by law)restoration; (xiii) gardening and landscaping; (viixiv) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement signs (other than signs of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any tenants of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent lossesProject); (iixv) the cost of any electricity or other utilities consumed for Common Areas and any personal property taxes levied thereon; (iii) amounts paid on or attributable to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred personal property used in connection with the construction, refurbishing or expansion of the BuildingCommon Areas; (vixvi) transferreasonable accounting, gainsaudit, franchiseverification, gift, inheritance, estate legal and income taxes imposed upon Landlord, any superior lessor or any mortgageeother consulting fees; and (viixvii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creationof repairs, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor)painting, or other financing or refinancing lighting, cleaning, and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder)items, including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Buildingappropriate reserves.
Appears in 1 contract
Operating Expenses. Throughout the Term of this Lease, commencing on the Commencement Date, Tenant shall pay to Landlord on the first day of each month during the Term, in addition to the Base Rent, Xxxxxx's Share of all Operating Expenses as additional rent in accordance with the following provisions:
(a) Operating Expenses" are all costs incurred by Landlord relating to the operation of the Property, including, but not limited to, the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 terms of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building includingSection 5, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such for the taxes and insurance for the Building and the Project and for all costs and expenses for the year.
(d) In operation; maintenance, repair and replacement of the event that Tenant shall dispute Building and the amounts set forth in any of Landlord's statements regarding actual Operating ExpensesProject including, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall excludewithout limitation: (i) bad debt lossesany form of real property tax, rent losses assessment, license fee, license tax, business license fee, permit fee, inspection fee, commercial rental tax, levy, charge, improvement bond or reserves for bad debt similar imposition of any kind or rent lossesnature imposed by any authority having the direct power to tax, including any city, county, state or federal government, or any school, agricultural, lighting, drainage or other improvement or special assessment district thereof; (ii) any and all assessments under any covenants, conditions and restrictions affecting the cost of any electricity or other utilities consumed for Common Areas Project, including without limitation assessments levied by the Community Association as provided in the Community Declaration, by the Pacific Park Association as provided in the Pacific Park Declaration, and any taxes levied thereonby the Town Center Corporate Park Owners Association as provided in the Town Center Declaration; (iii) amounts paid water, sewer and other utility charges, to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and extent not separately metered, including without limitation any costs incurred as a result thereof; (v) or expenses incurred in connection with a change in the construction, refurbishing Electric Service Provider or expansion Alternate Service Provider pursuant to Section 7 of this Lease; (iv) costs of insurance obtained by Landlord pursuant to Section 13 of this Lease; (v) waste disposal; (vi) janitorial services for the common area within the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursementsecurity; (viii) ground rent, if any, or any other payments under any superior leaselabor; (ix) depreciationmanagement costs including, amortization without limitation: (A) wages, salaries, fringe benefits (and otherpayroll taxes and similar charges) of property management employees, similar noncash itemsand (B) management office rental, supplies, equipment and related operating expenses and commercially reasonable management and administrative fees; (x) costs supplies, materials, equipment and expenses incurred tools including rental of personal property; (xi) repair and maintenance of the structural portions of the buildings within the Project, including the plumbing, heating, ventilating, air-conditioning and electrical systems installed or furnished by Landlord (if such repair and maintenance are Landlord's responsibility under Section 9.2 below); (xii) maintenance, sweeping, lighting, repairs, resurfacing, and upkeep of all parking and other common areas; (xii) amortization on a straight line basis over the useful life (together with interest at the Interest Rate on the unamortized balance) of all capitalized expenditures which are: (A) reasonably intended to produce a reduction in operating charges or energy consumption; or (B) required under any governmental law or regulation that was not applicable to the Project at the time it was originally constructed; or (C) for replacement or restoration of any Project equipment and improvements needed to operate or maintain the Project at the same quality levels as prior to the replacement or restoration; (xiv) gardening and landscaping; (xv) maintenance of signs (other than signs of tenants of the Project); (xvi) personal property taxes levied on or attributable to personal property used in connection with the creationcommon areas; (xvii) reasonable accounting, audit, verification, environmental, insurance, tax, legal and other consulting fees; (xviii) any other costs and expenses of repairs, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor)painting, or other financing or refinancing lighting, cleaning, and all fees payable pursuant to such mortgagessimilar items, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoingincluding appropriate reserves; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiiixix) costs associated with operating the business procurement and maintenance of air conditioning, heating and ventilation service agreements; (xx) procurement and maintenance of an intrabuilding cable network tenant information system for common use of all tenants within the Project, and any other installation, maintenance, repair and replacement costs associated with such lines; and (xxi) any expense incurred pursuant to Sections 5.2, 7, 8.2, 9.2 and 13 (collectively, the "OPERATING EXPENSES"). The foregoing list constitutes a nonexclusive list of costs and expenses Landlord may incur for the operation, maintenance, repair and replacement of the legal entity which constitutes Building and the Project. The fact that an item is included in this list does not imply that any particular item or service will be provided by Landlord or that Landlord is obligated to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); incur any particular expense or (xiv) costs of provide any services or work provided to a particular tenant of the Building, but not to all tenants of the Buildingservice.
Appears in 1 contract
Samples: Lease Agreement (Eyeonics Inc)
Operating Expenses. Landlord's Operating Expenses" means the cost ofoperation of the Building and the Site which shall exclude costs of special services rendered to tenants (including Tenant) for which a separate charge is made, but shall include, without limitation, the following: premiums for insurance carried with respect to the Building and the Site (including, without limitation, liability insurance, insurance against loss in case of fire or casualty and insurance of monthly installments of fixed rent and any Additional Rent which may be due under this Lease and other leases of space in the Building for not more than twelve (12) months in the case of both fixed rent and Additional Rent and if there be any S:\Lcgal\Wa\tham\77 Fourth Avcnuc\Lcascs\Phasc Forward (H).doc first mortgage of the Property, including such insurance as may be required by the holder of such first mortgage, provided, however, with respect to insurance coverages required to be carried by a holder of a mortgage, such coverages are of the type and amounts customarily required to be carried by lenders of comparable class A, multi-tenant office buildings in the Market Area); compensation and all fringe benefits, worker's compensation insurance premiums and payroll taxes paid to, for or with respect to all persons engaged exclusively in the operating, maintaining or cleaning of the Building or Site (and in the event such persons are also employed on other properties of Landlord or its affiliates, such compensation shall be equitably prorated among the Building and such other properties), water, sewer, electric, gas, oil and telephone charges (excluding utility charges separately chargeable to tenants for additional or special services and excluding costs to supply electricity to leaseable areas of the Building, with the exception of any building management offices); cost of buildi ng and cleaning supplies and equipment; cost of maintenance, cleaning and repairs (other than repairs not properly chargeable against income or reimbursable from contractors under guarantees); cost of snow removal and care of landscaping; cost of operating, maintaining, cleaning and providing utilities to any conference center, cafeteria, fitness center or other amenity serving the Building (and excluding any costs to construct and initially furnish such amenities or any subsidy for cafeteria operations unless specifically agreed to by Tenant in writing); payments under service contracts with independent contractors; management fees at reasonable rates for self managed buildings consistent with the type of occupancy and the service rendered, which management fees shall pay to not exceed three percent (3%) of the total Gross Rents for the Building ("Gross Rents for the Building" for the purposes hereof being defined as annual fixed rent, Landlord's Operating Expenses, with the exception of the aforesaid management fee, and Landlord's Tax Expenses for the Building for the relevant calendar year); costs of maintaining a regional property management office (allocated pro rata among all properties owned by Landlord on or its affiliates served by such regional property management office) in connection with the first day operation, management and maintenance of each month the Building; and all other reasonable and necessary expenses paid in connection with the operation, cleaning and maintenance of the Building and the Site and properly chargeable against income, provided, however, there shall be included (a) depreciation for capital expenditures made by Landlord during the TermLease Term (i) to reduce Landlord's Operating Expenses if Landlord shall have reasonably determined that the annual reduction in Landlord's Operating Expenses shall exceed the annual depreciation therefor or (ii) to comply with applicable laws, in addition rules, regulations, requirements, statutes, ordinances, by-laws and court decisions of all public authoritieswhich first become applicable to the Property after the Base RentBuilding Completion Date (the capital expenditures described in subsections (i) and (ii) being hereinafter referred to as "Permitted Capital Expenditures"); plus (b) in the case of both (i) and (ii) an interest factor, Xxxxxx's Share reasonably determined by Landlord, as being the interest rate then charged for long-term mortgages by institutional lenders on like properties within the locality in which the Building is located; depreciation in the case of all Operating Expenses both (i) and (ii) shall be determined by dividing the original cost of such capital expenditure by the number of years of useful life of the capital item acquired and the useful life shall be reasonably determined by Landlord in accordance with generally accepted accounting principles and practices in effect at the time of acquisition of the capital item. S:\Lcgal\Wallham\77 Fourth Avcnuc\Lcascs\Phasc Forward (H).doc Notwithstanding the generality of the preceding text, the following provisionsitems shall be excluded or deducted, as the case may be, from the calculation of Tenant's share of Landlord's Operating Expenses:
(ai) All capital expenditures and depreciation, including all costs that under generally accepted accounting principles are properly classified as capital expenses, capital improvements or capital repairs, except as otherwise explicitly provided in this Section 2.6;
(ii) Interest on indebtedness, debt amortization, ground rent, financing and refinancing costs for any mortgage or ground lease or xxxxxxxxx of the Building or the Site and transfer taxes, recording costs and taxes, title insurance premiums, title closer's fees and gratuities and other similar costs incurred in connection with the sale or transfer of an interest in Landlord or the Building;
(iii) Legal, auditing, consulting and professional fees and other costs (other than those legal, auditing, consulting and professional fees and other costs incurred in connection with the normal and routine maintenance and operation of the Building and/or the Site), including, without limitation, those: (i) paid or incurred in connection with financings, refinancings or sales of any Landlord's interest in the Building and/or the Site; (ii) relating to any special reporting required by securities laws; (iii) relating to negotiations or disputes with, or leasing to, tenants or prospective tenants; (iv) relating to litigation (including costs of settlement judgments and payments in lieu thereof); (v) the interpretation of leases or other occupancy agreements; (vi) the enforcement of the provisions of any lease or other occupancy agreement affecting the Building including without limitation this Lease; (vii) the initial construction of the improvements on the Site; (viii) the review, approval or other actions in connection with the sublease or assignment of tenant leases (provided, however, that Tenant shall nonetheless be responsible under Section 5.6.5(b) for any such costs relative to its own requests for consent to a sublease or assignment); (ix) any action against a present or former tenant or occupant under a lease or other occupancy agreement, including, without limitation, eviction, distraint, levy and collection actions; and (x) costs incurred as a result of the violation by Landlord or any tenant of the terms and conditions of any lease;
(iv) The cost of any item or service to the extent reimbursed or reimbursable to Landlord by insurance required to be maintained under the Lease or by any third party;
(v) The cost of repairs or replacements incurred by reason of fire or other casualty or condemnation other than costs not in excess of a commercially reasonable deductible (currently $25,000.00) on any insurance maintained by Landlord which provides a recovery for such repair or replacement; S:\Lcgal\Waltham\77 fourth Avcnuc\Lcascs\Phasc Forward (H).doc
(vi) Any advertising, promotional or marketing expenses for the Buildings;
(vii) The cost of any service or materials provided by any party related to Landlord (other than the management fee), to the extent such costs exceed the reasonable cost for such service or materials absent such relationship in buildings similar to the Building in the vicinity of the Building;
(viii) Payments for rented equipment, the cost of which equipment would constitute a capital expenditure if the equipment were purchased to the extent that such payments exceed the amount which could have been included in Landlord's Operating ExpensesExpenses had Landlord purchased such equipment rather than leasing such equipment;
(ix) Penalties, damages, and interest for late payment or violations of any obligations of Landlord, including, without limitation, taxes, Legal Requirements, insurance, equipment leases and other past due amounts;
(x) Contributions to charitable or political organizations or trade associations such as BOMA or NAIOP, and any entertainment, dining or travel expenses of Landlord's employees for any purpose;
(xi) The costs incurred to monitor, test, survey, clean-up, contain, encapsulate, xxxxx, remove or remediate any "Hazardous Materials" are (as defined in Section 5.3), including asbestos and mold, in the Buildings or on the Site required by "Hazardous Materials Laws" (as defined in Section 5.3) and including costs to defend against claims in regard to the existence or release of Hazardous Materials at the Xxx lding or the Site;
(xii) Any and all costs incurred to install, repair, operate, maintain and replace the subslab venting system installed in the Building as part of the Base Building Work under Section 3.1 below (or any costs associated with modifying the original subslab venting system or installing supplemental systems should it be determined that the original system installed as part of the Base Building Work was insufficient to mitigate air quality issues associated with conditions existing at the Property as of the date of this Lease);
(xiii) Wages, salaries, or other compensation (including benefits and benefit plans) paid to any executive employees above the grade of Regional Property Manager;
(xiv) Amounts payable by Landlord relating for withdrawal liability to a multi-employer pension plan (under Title IV of the Employment Retirement Income Security Act of 1974, as amended) due to complete or partial withdrawal that occurs during the term of this Lease due to events within the control of Landlord (e.g., the sale of Landlord's interest in the Building); S:\Legal\Waltham\77 Fourth Avcnuc\Lcascs\Phasc Forward (H).da<:
(xv) Costs in connection with leasing space in the Building or to retain existing tenants, including brokerage commissions, lease concessions, lease assumptions, rental abatements, construction allowances granted to specific tenants and alteration work performed by Landlord to prepare space for tenants, includi ng any utilities or services incurred in connection with performing such work;
(xvi) The cost of any work or service performed or rendered exclusively for any tenant of the Building, including Tenant, and costs incurred in connection with the making of repairs which are the obligations of another tenant of the Building;
(xvii) The cost of acquisition of any sculpture, paintings or other objects of art;
(xviii) Any amounts billed or billable to Tenant or any other tenant for any services furnished to Tenant or any other tenant by Landlord or Landlord's agents or contractors for which a separate charge is made, including, without limitation, the supply of overtime air-conditioning, ventilation and heating, and above-standard cleaning services, or for services or work furnished to any tenant to the operation extent such services or work are furnished in a more favorable manner to such tenant than furnished generally to tenants of the PropertyBuilding as part of Landlord's Operating Expenses;
(xix) Any costs of maintenance, repairs or replacements required because of the negligent or willful act or omission of Landlord, its officers, directors, servants, agents, employees or contractors;
(xx) Any expenses to design and construct (including permitting fees, costs of insurance and bonds, and costs of equipment and materials) the Base Building Work and the Base Building Enhancements and any costs to correct any defects, latent or patent, in any of the equipment or improvements which are a part of the Base Building Work and/or the Base Building Enhancements (except to the extent caused by Tenant's use of the Premises for other than general office use);
(xxi) Reserves for bad debts or for future improvements, repairs or additions;
(xxii) Any above-standard cleaning (which shall include trash collectioo and removal), including, but not limited toto construction cleanup or special cleanings associated with parties/events and specific tenant requirements in excess of service provided to Tenant, and including the costs of initial cleaning and rubbish removal performed for final completion of the Building, the following: Site or any tenant space;
(ixxiii) The costs of new services or substantial increases in existing services (such as a substantial increase in security services) to the operation, repair, maintenance and replacement in neat, clean, good order and condition extent such new or increased level of services are required solely as the result of the Common Areaspresence of a particular occupant of the Building, including parking areassuch as for example, loading the costs of providing additional security services due to threats against a particular occupant of the Building;
(xxiv) Costs in connection with acquiring additional land or development rights or of constructing any additional buildings within the Site (provided, however, that the foregoing shall not be construed so as to limit or modify Tenant's obligation to pay the costs associated with the Off-Site Parking under Section 2.2.1 above);
(xxv) Without limitation of any other exclusions from Landlord's Operating Expenses, costs and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained expenses incurred by Landlord under Paragraph 8 in curing, repairing or replacing any structural portion of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (including the monthly amortization of any given capital improvement shall be the sum of: roof) within five (A5) the quotient obtained by dividing the cost years of the capital improvement by Landlord's estimate of Actual Base Building Completion Date (as the number of months of useful life of such improvement; plus term is defined in Section 3. l (B) an amount equal below) to the cost extent such cure, repair or replacement was made necessary as a result of defects in the design, workmanship or materials of the capital improvement times 1//12 Base Building Work);
(xxvi) Costs of initial landscapi ng of the lesser of 12% Building or the maximum annual interest rate permitted by law); Site;
(xxvii) Costs of the initial stock of tools and (vii) equipment for operation, repair and maintenance of the Building includingand Site and all furniture, but not limited to, painting, caulking equipment and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.fixtures for the Amenities;
(bxxviii) To the extent Landlord shall determine, in its reasonable discretion, that any Costs of the Operating Expenses shall have been incurred solely for the benefit of Tenant mitigation or otherwise solely impact fees or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements subsidies imposed or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion initial construction of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes or imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through incurred solely as a condemnation award, the proceeds of insurance or otherwise, but only to the extent result of any such reimbursement; tenant's use ofor occupancy of the Building or the Site;
(viiixxix) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses Costs incurred in connection with the creationoperation of any retail or restaurant operations for the Building, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, including without limitation, pointsany operating subsidy for the cafeteria (provided that the costs of operating, late charges maintaining, cleaning and other expenses whether similar or dissimilar providing utilities to the foregoingcafeteria may be included in Landlord's Operating Expenses);
(xxx) Costs incurred in connection with upgrading the Property to comply with laws, rules, regulations or codes first applicable to the Property prior to the Commencement Date; and
(xixxxi) expenses incurred Except as expressly provided in this Lease with respect to lease, license, sell, syndicate, hypothecate, transfer the Managed Parking Program and the Off-Site Parking and for so long as Tenant directly leases and occupies seventy percent (70%) or otherwise dispose more of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant Total Rentable Ffoor Area of the Building, but costs of adding any new services or new building amenities not to all tenants in place as of the Building.Commencement Date which are not either (1) consented to by Tenant in writing or (2) actually utilized by Tenant's employees irrespective of whether Tenant has not consented to the same (e.g., if Landlord initiates a shuttle bus service to public transportation and Tenant does not consent to the same but Tenant's employees use the shuttle bus on a regular basis) or (3) required by applicable laws, rules, regulations or codes first applicable to the Property after the Commencement Date, and further subject to the gross up of Base Operating Expenses as hereinafter set forth. Services or building amenities will not be deemed to be "utilized by Tenant's employees" unless either (i) Tenant notifies S:\Lcgal\Waltham\77 Founh Avenuc\Leases\Phasc Forward (H).doc Landlord in writing that Tenant's employees will utilize the service or amenity, or
Appears in 1 contract
Samples: Sublease Agreement (Care.com Inc)
Operating Expenses. Tenant shall pay unless otherwise expressly set forth herein as being for the account of the Landlord, including any such item set forth in Section 15 of Schedule "F" attached hereto, all costs, charges and expenses incurred by the Landlord in connection with the operation, maintenance, repair of and improvement to Landlord the Premises including without limitation: heating, ventilating and air-conditioning costs, maintenance, repairs and replacements; administration fees equal to two and nine tenths percent (2.9%) of all amounts payable by tenants of the Building; salaries, wages and benefits of employees directly engaged in the operation, administration, maintenance and repair of the Premises, but only to the extent of their involvement with the Premises; electricity, fuel, water and other utilities, taxes, licenses and fees; insurance costs, premiums and deductible payments in respect of fire, casualty, liability, property damage, boiler, loss of rental and such other form or forms of insurance relating to the Premises from time to time in effect; cleaning, supervision, maintenance, operation and repair costs, expenses and charges relating to the Premises (including, without limitation, the elevators, the garage (if any) and parking facilities and other common areas and facilities) and the equipment, systems and fixtures therein and the making of all necessary repairs, modifications, renovations or replacements therein and thereto (with capital expenditures to be dealt with as hereinafter provided); building and cleaning supplies; equipment rental; cleaning; capital expenses (including expenditures relating to energy conservation measures or programs) amortized over the useful life of the item, together with interest on the unamortized portion of such expenses, calculated each month at a rate equal to one twelfth (1/12) of the aggregate of one and one-half percent (1.5%) plus the "Prime Rate" (as hereinafter defined) on the first day of each month during the Termfor loans in Canadian dollars; snow removal, in addition gardening and landscaping; garbage and waste collection and disposal; amounts payable pursuant to the Base Rentservice contracts with independent contractors for maintenance, Xxxxxx's Share of all Operating Expenses in accordance with the following provisions:
(a) Operating Expenses" are all costs elevators, cleaning, refuse removal, security operations and repairs; legal and accounting fees and expenses; any expenses incurred by Landlord relating in obtaining or attempting to the operation of the Property, including, but not limited to, the following: (i) the operation, repair, maintenance and replacement obtain a reduction in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Estate Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Building.
Appears in 1 contract
Operating Expenses. Tenant shall pay (a) Initially, the estimated “Operating Expense Factor” equals to Landlord on $1.41 per square foot of the first day Premises, for the calendar year in which the Commencement Date occurs, to cover Tenant’s Share (see Section 1) of each month during the Termprojected Operating Expenses. With respect to Operating Expenses, in addition the parties agree to the Base Rent, Xxxxxx's Share of all Operating Expenses in accordance with the following provisionsfollowing:
(ai) The term “Operating Expenses" ” used in this Lease Agreement represents the total annualized cost of operating the Building/Center including, but is not limited to, Common Maintenance and Service Costs, Real Estate Taxes and Assessments, Insurance Premiums, accounting, property management fees and other reasonable costs associated with the management and operation of the Building/Center. Said term shall not include depreciation on any improvement, any capital expenses or improvements except all net expenses properly allocable for any capital improvement incurred which actually reduce or limit increases in Operating Expenses, which expenses shall be repaid in equal monthly installments together with interest at applicable rates over the useful capital life of the capital improvement not to exceed ten (10) years. Notwithstanding anything to the contrary contained herein, the Operating Expenses exclude (1) leasing costs, consulting fees, brokerage commissions, legal fees, vacancy costs, rent or other concessions, and/or refurbishment or improvement expenses which are incurred in connection with other tenants’ spaces or the enforcement and negotiation of leases; (2) to the extent not caused by the unique type and nature of Tenant’s operations and use of the Premises, the cost of compliance with laws, rules and regulations or orders of any governmental or quasi-governmental authority having jurisdiction over the Premises; (3) financing costs, debt service or ground lease payments for the Center; (4) acquisition costs or any depreciation of land and buildings of the Center or the common areas; (5) costs of repairing any portion of the Center due to defective construction; (6) costs, fees and compensation paid by or to Landlord for services in or to the Center, exceeding those charged by unaffiliated third parties on a competitive basis: (7) costs incurred because the Center or common areas violate any valid, applicable building code, regulation or law in effect and as interpreted by governmental authorities, including, without limitation, laws requiring sprinkler installation and requirements under the Americans With Disabilities Act of 1990, as may be amended, and regulations promulgated thereunder; (8) reserves maintained in connection with the Center; (9) any and all collection costs, including legal fees and/or bad debt losses or reserves therefor; (10) any otherwise permissible fees or costs to the extent in excess of prevailing and competitive rates; (11) costs incurred by Landlord relating to the extent that Landlord is reimbursed by insurance proceeds, governmental agencies or entities, or any tenant or other person (other than reimbursement as part of Operating Expenses); (12) costs, including compensation paid to clerks, attendants or other persons, in connection with any commercial concession operated by Landlord, provided that if such costs relate to the operation of the Propertyparking areas, includingLandlord may include Landlord’s reasonable out-of-pocket costs thereof in Operating Expenses to the extent in excess of parking gross revenues; (13) advertising and promotional expenditures, but not limited toand any acquisition or construction costs of signs in or on the Center identifying the owner of the Center; (14) costs arising from the negligence of Landlord or its contractors, agents or employees, including the following: payment of any claims or damages; (i15) Landlord’s general corporate or partnership overhead and general administrative expenses; (16) costs arising from the operationpresence of any hazardous materials in or about the Center, including the Premises; and (17) any costs or expenses resulting from Landlord’s violation of any agreement to which it is a party or any applicable law.
(ii) The term “Common Maintenance and Service Costs” shall include without limitation routine cleaning and maintenance of the exterior of the Premises to include periodic window cleaning; the cleaning, maintenance and sweeping of the parking lot and sidewalks; the care and maintenance of the landscaping and landscaped areas to include the retention pond areas, conduits, pumps and irrigation systems; common area lighting and other utility charges for utilities used in the common areas, if any; domestic and irrigation water, and sanitary sewer charges and assessments; rubbish collection, if any; painting; and any other costs customarily considered as common repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systemsservice costs.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Building.
Appears in 1 contract
Operating Expenses. Tenant shall pay to Landlord Throughout the Term of this Lease, commencing on the first day of each month during the TermCommencement Date, in addition Tenant agrees to the Base Rent, Xxxxxx's Share of all Operating Expenses pay Landlord as additional rent in accordance with the following provisions:
(a) terms of this Pxxxxxxxx 0, Xxxxxx’s Share of Operating Expenses" are Expenses for the taxes and insurance for the Project and all costs incurred by Landlord relating to and expenses for the operation operation, maintenance, repair, and replacement of the Property, Project including, but not limited to, the followingwithout limitation: (i) any form of real property tax assessment, license fee, license tax, business license fee, commercial rental tax, levy, charge, improvement bond or similar imposition of any kind or nature imposed by any authority having the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areasdirect power to tax, including parking areasany city, loading and unloading areascounty, trash areasstate or federal government, roadwaysor any school, sidewalksagricultural, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systemslighting, drainage systemsor other improvement or special assessment district thereof, lighting facilitiesincluding, fences and gateswithout limitation, exterior signs and tenant directoriesany new taxes which are in substitution for or in addition to any current taxes payable hereunder; (ii) any and all assessments under any covenants, conditions and restrictions affecting the Project; (iii) water, gas, electricity, telephone sewer and other utilities servicing utility charges; (iv) costs of insurance obtained by Landlord pursuant to Paragraph 19 of the Lease; (v) waste disposal and janitorial services; (vi) security; (vii) labor; (viii) management costs including, without limitation: (A) wages and salaries (and payroll taxes and similar charges ) of property management employees, and (B) management office rental, supplies, equipment and related operating expenses and management fees; (ix) supplies, materials, equipment and tools including rental of personal property; (x) repair and maintenance of the structural portions of the buildings with the Project, including the plumbing, heating, ventilating, air-conditioning and electrical systems installed or furnished by Landlord; (xi) maintenance, costs and upkeep of all parking and other Common Areas; (xii) depreciation on a straight line basis and rental of personal property used in maintenance; (xiii) amortization on a straight line basis over the useful life [together with interest at the Interest Rate on the unamortized balance] of all capitalized expenditures which are: (A) reasonably intended to produce a reduction in operating charges or energy consumption; or (B) required under any governmental law or regulation that was not applicable to the Project at the time it was originally constructed; or (C) for replacement of any Project equipment needed to operate the Project at the same quality levels as prior to the replacement; (xiv) gardening and landscaping; (xv) maintenance of signs (other than signs of tenants of the Project); (xvi) personal property taxes levied on or attributable to personal property used in connection with the Common Areas; (iiixvii) trash disposalreasonable accounting, janitorial servicesaudit, snow removalverification, legal and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law)other consulting fees; and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (xxviii) costs and expenses incurred in connection with the creationof repairs, resurfacing, repairing, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor)painting, or other financing or refinancing lighting, cleaning, refuse removal, security and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder)items, including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Buildingappropriate reserves.
Appears in 1 contract
Samples: Industrial Lease (Mfic Corp)
Operating Expenses. Tenant shall pay to Landlord on the first day of each month during the Term, in addition to the Base Rent, Xxxxxx's Share of all Operating Expenses in accordance with the following provisions:
(a) The term “Operating Expenses" are ” refers to and shall be all costs and expenses of every kind and nature, whether or not the item may be specifically mentioned or not herein, paid or incurred by Landlord relating in operating, advertising, equipping, policing and protecting, cleaning, lighting, insuring, repairing, replacing and maintaining the Center, including without limitation, the Common Areas and all other areas, facilities and buildings in the Center or adjacent to the operation Center, including the cost of insuring all property provided by Landlord which may at any time comprise the Center and all taxes thereupon. Landlord may, in Landlord’s sole and absolute discretion from time to time, include equitable allocations of any of the Property, including, Operating Expenses hereinafter set forth to all buildings in the Center or any one specific building or to any other building in or adjacent to the Center. Operating Expenses may include but not be limited to, the followingall such costs and expenses of: (ia) illumination and maintenance and installation of signs and/or tenant directories; b) the operationcost of water, sewer, gas, propane, electricity, and other publicly mandated services not separately metered; c) repair, maintenance and/or replacement of all on or off-site water lines, electrical lines, gas lines, sanitary sewer lines, telephone lines, cable or data lines, storm water lines, or other utilities serving the Center; d) maintenance, repair and replacement of light fixtures and lighting standards (including replacement of tubes, ballasts and lamps); e) Common Area snow and ice removal, sweeping, blowing, power or pressure washing, window washing, awning cleaning (and replacement thereof); f) repair, maintenance, and replacement of public toilets, public seating, bicycle racks, trash and cigarette receptacles, pedestrian control devices, or any item generally located in neata public plaza, cleanwalkway, good order courtyard, or building; g) repair, maintenance, replacement and condition depreciation of the Common Areasparking areas and/or parking lots, including repaving and restriping of the paved areas and any parking areasequipment, loading the maintenance and unloading areasoperations of the Center parking, Common Area parking lots, and/or any adjacent parking lots used by the Center including the cost of personnel to implement such services, including the directing of parking and all parking lot supplies; h) trash areasdisposal services or the removal of trash and debris; I) janitorial services, roadwayspest control services, sidewalksand the cost of any environmental inspections; j) planting, walkwaysreplacing and maintaining landscaping, parkwayssprinkler systems and xxxxx; k) licenses, drivewayspermits and/or any City, landscaped areasCounty, stripingState or Federal fee or assessment attributable to Center, bumpersand the costs incurred in complying with governmental regulations (exclusively of any tenant’s premises), irrigation systemswhether done voluntarily or by mandate of governmental authorities, drainage systemsincluding any costs incurred in complying with the Americans With Disabilities Act of 1990, lighting facilitiesas amended from time-to-time, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing with respect to the Common Areas; (iiil) trash disposalpolicing, janitorial services, snow removal, patrolling and security services; (ivm) Real Property Taxesall heating, air conditioning, plumbing, electrical systems, communication and data systems, and other equipment used in common by, or for the benefit of, Tenants or occupants of the Center and the repair, maintenance and/or replacement of same including cleaning supply and return air ducts; (vn) elevators, escalators, or other lift or transport devices; o) maintenance, repair and testing of file/life safety equipment, fire detection systems, fire sprinkler systems, pre-action devices, and alarm systems; p) improvements, capital improvements, roof repairs and replacement, building repairs and replacement, painting, patching, and stucco; q) premiums for liability and property insurance, earthquake insurance, premiums for insurance against fire, theft and other casualties covered by extended coverage insurance, including Rent insurance, liability for defamation and false arrest, plat glass in common areas and fidelity bonds for employees of Landlord, the cost of the premiums for the insurance policies maintained and payable by Landlord pursuant to Landlord’s Initials Article 6, any deductible portion of an insured loss concerning the buildings or the Common Areas, and the costs (including consulting fees) incurred in connection with the procurement of insurance and reasonable reserves for deductibles and any self-insured retention; r) Real Estate Taxes payable by Landlord pursuant to Article 5, and personal property taxes, sales and use taxes on material, equipment, supplies and services; s) supplies, holiday decorations, grand opening costs, promotional costs, advertising costs; t) the cost of maintenance and replacement of any camera equipment, music equipment, snow removal equipment, maintenance equipment, supplying services to both the Common Areas and buildings; u) replacement of equipment or improvements that have a useful life for accounting purposes of 5 years or less; v) the cost of any Capital Expenditure to the building or the Center not covered under Paragraph the provisions of Article 8 provided however, that Landlord shall allocate the cost of this leaseany such Capital Expenditure over a ten (10) year period and Tenant shall not be required to pay more than Tenant’s Share of 1/120th of the cost of such Capital Expenditure in any given months; (viw) monthly amortization the reasonable depreciation of capital improvements to maintenance equipment used in the operation and maintenance of the Common Areas and the Building (Center; x) total compensation and benefits, including premiums for workers’ compensation and other insurance, paid to or on behalf of Landlord’s employees involved in the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost performance of the capital improvement by Landlord's estimate work specified hereunder in this Section 9.1; y) labor, salaries, and applicable fringe benefits and costs, materials, supplies and tools, used in maintaining, servicing, cleaning, repairing, enhancing, improving, and/or upgrading the Center; z) operating costs and maintenance costs for the property management and/or maintenance offices in the Center, including all costs and expenses (including wages, salaries, employee benefits, unemployment insurance and social security payments) relating to the employment of all on-site personnel, including Center manager, promotional and Center personnel and other on-site personnel utilized in connection with the operation, maintenance and repairs of the number Center, and the accounting and management fees attributable to the operation of months of useful life of such improvementthe Center; plus (Baa) parcel pickup, delivery services, copying or fax charges, postage, telephone or any other service to be provided by Landlord that is elsewhere in this Lease stated to be an “Operating Expense; and bb) an amount equal to the cost fifteen percent (15%) of the capital improvement times 1//12 total of all of the lesser of 12% or the maximum annual interest rate permitted by law); foregoing costs and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right expenses to require that such Operating Expenses be borne solely by Xxxxxxcover Landlord’s administrative cost. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) the language of this lease Section shall not be deemed to impose any an obligation upon Landlord to either have said improvements or facilities or to provide those services unless the Center already has the same, Landlord already provides the services.
(c) Tenant shall pay monthly , or Landlord has agreed elsewhere in advance on this Lease to provide the same day as the Base Rent is due Tenant's Share or some of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the yearthem.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Building.
Appears in 1 contract
Operating Expenses. During the term of this Lease, and any extensions and renewals thereof, Landlord shall operate, manage, repair and maintain, in a first class manner consistent with other similar buildings in the Gaithersburg and Germantown, Maryland areas, the Building, the Land and the Common Areas. Tenant shall shall, during the entire term of this Lease, pay to Landlord on the first day of each month during the Term, in addition to the Base as Additional Rent, Xxxxxxthe Tenant's Pro Rata Share of all Operating Expenses in accordance with the following provisions:
(a) Operating Expenses" are all costs and expenses incurred by Landlord relating in operating, managing, repairing and maintaining the Building, the Land and the Common Areas, collectively referred to as "Operating Expenses". Said Operating Expenses shall include, but not be limited to, costs and expenses for: (i) removal of snow, ice, trash, rubbish and debris from the Common Areas; (ii) furnishing and maintaining electric service (and elevator service, if any) to the operation Building and the lighting of the PropertyCommon Areas; (iii) charges for furnishing and maintaining water and sewer service or other utility services to the Building and the Land; (iv) trimming and grass cutting and all other maintenance and upkeep of the grounds, green areas and landscaping in the Common Areas; (v) maintaining, monitoring and testing the sprinkler system and sprinkler alarm system in the Building; (vi) maintaining, striping, cleaning and repairing the parking areas, driveways and sidewalks; (vii) trash pick-up and removal by a licensed contractor from containers located in a common enclosure(s) for the mutual use of all tenants in the Building, as well as the cost of maintaining and repairing said trash container enclosure(s); (viii) reasonable property management fees ofthree percent (3%) of gross rentals in the Building; (ix) maintenance and repairs to the exterior of Building, including, but without limitation, exterior windows, doors, hardware, locks, lighting and lighting fixtures; (x) premiums incurred by Landlord, if any, for hazard, liability, workmen's compensation or similar insurance on contractors providing services to the Building, Land or Common Areas; and (xi) any other costs and maintenance expenses for the Building, Land, Common Areas and all appurtenances thereto as may be deemed reasonably necessary by Landlord which under generally accepted accounting principles properly constitute operating or maintenance costs and expenses attributable thereto. Operating Expenses shall not limited to, include any of the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition cost of the original construction of the Building or any additions or expansions to the Building, Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directoriesAreas or other items which under generally accepted accounting principles are properly classified as capital expenditures; (ii) water, gas, electricity, telephone any repairs or work performed to any portion of the Building intended to be occupied by individual tenants; (iii) the cost of correcting any defects in the original construction of the Building and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxesany reserves for future expenditures not yet incurred; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this leaseground lease rental; (vi) monthly amortization of capital improvements costs incurred by Landlord for repair or restoration to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained extent that Landlord is reimbursed by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% insurance or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, condemnation proceeds or that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgageewarranty; (vii) costs for which Landlord is reimbursed through a condemnation awardattorneys' fees, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any leasing commissions and other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with negotiations or disputes with present or prospective tenants or other occupants of, or persons, firms or entities with respect to, the creationBuilding; (viii) costs incurred by Landlord due to the negligence or misconduct of Landlord or its agents, maintenancecontractors, modification licensees and employees, or negotiation the violation by Landlord of a the terms and conditions of this Lease; (ix) interest, principal points and fees on debts or amortization on any mortgage or superior lease (mortgages or in litigation with a mortgagee or ground lessor), or any other financing or refinancing and debt instrument encumbering all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Building.the
Appears in 1 contract
Operating Expenses. Tenant shall pay to Landlord on the first day of each month during the Term, in In addition to the Monthly Base Rent, Xxxxxx's Share of all Operating Expenses in accordance with the following provisions:
(a) Operating Expenses" are all costs incurred by Landlord relating to the operation of the Property, including, but not limited to, the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share ’s Percentage of Operating Expenses to reflect Xxxxxxxx's estimate (which includes the Building Percentage of such all costs and expenses for of operation and maintenance of the year.
(d) In Property Common Areas and the event that Tenant shall dispute Site), in the amounts manner and at the times set forth in any the following provisions of Landlord's statements regarding actual this Section 1.18. “Operating Expenses” shall consist of all costs and expenses of operation, Tenant shall have maintenance and repair of the rightBuilding and Building Common Areas as determined by standard accounting practices, together with the Building Percentage of all costs and expenses of operation and maintenance of the Property Common Areas and the Site as determined by standard accounting practices and after the Relocation Date, calculated assuming the Property is at least ninety-five percent (95%) occupied. Operating Expenses include the following costs by way of illustration but not later than 180 days following the receipt of limitation: (i) any such statement, to review Xxxxxxxx's books and records all assessments imposed with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice Building, Common Areas, and/or Site pursuant to Landlord at any covenants, conditions and restrictions affecting the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent lossesProperty; (ii) costs, levies or assessments resulting from statutes or regulations promulgated by any government authority in connection with the cost use or occupancy of any electricity the Site, Building or other the Premises; (iii) all costs of utilities consumed for serving the Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of utilities for the item Premises which are not separately metered and all costs of any HVAC contracts and/or any repairs, maintenance or replacements required thereunder as provided in question; Section 1.19.b below, (iv) all Taxes and Insurance Costs as defined in the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; Standard Lease Provisions, (v) expenses incurred in connection with the construction, refurbishing or expansion of the Buildingwaste disposal; (vi) transfersecurity, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgageeif any; (vii) costs for which Landlord is reimbursed through a condemnation awardincurred in the management of the Site, Building and Common Areas, including, without limitation: (1) supplies, materials, equipment and tools, (2) wages, salaries, benefits, pension payments, fringe benefits, (and payroll taxes, insurance and similar governmental charges related thereto) of employees used in the proceeds operation and maintenance of insurance or otherwisethe Site, but only Building and Common Areas, (3) the rental of personal property used by Landlord’s personnel in the maintenance, repair and operation of the Property, (4) accounting fees, legal fees and real estate consultant’s fees, and (5) management/administrative fee in an amount not to exceed ten percent (10%) of the extent of any such reimbursementOperating Expenses, excluding all Taxes and Insurance Costs; (viii) ground rentrepair and maintenance of other portions of the Building other than such portions as are maintained by Tenant, including the elevators (if any), restrooms (if any), structural and non-structural portions of the Building, and the plumbing, heating, ventilating, air-conditioning and electrical systems installed or any other payments under any superior leasefurnished by Landlord and not maintained by Tenant pursuant to Section 8.2 of the Standard Provisions; (ix) depreciationmaintenance, amortization costs and other, similar noncash itemsupkeep of all parking and Common Areas; (x) amortization on a straight-line basis over the useful life together with interest at the Interest Rate (as defined in Section 1.13 of the Lease Summary) on the unamortized balance of all costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building capital nature (including, without limitation, forming capital improvements, capital replacements, capital repairs, capital equipment and continuing such legal entity capital tools): (1) reasonably intended to produce a reduction in operating charges or energy consumption; or (2) required after the date of this Lease under any Law that was not applicable to the Building at the time it was originally constructed; or (3) for repair or replacement of any equipment or improvements needed to operate and/or maintain the Building, the Common Areas and/or the Site at the same quality levels as prior to the repair or replacement; (xi) costs and tending to its internal accounting expenses of gardening and legal affairslandscaping; (xii) maintenance of signs (other than signs of tenants of the Site); (xiii) personal property taxes levied on or attributable to personal property used in connection with the Building, the Common Areas and/or the Site; and (xiv) costs and expenses of repairs, resurfacing, repairing, maintenance, painting, lighting and similar items, including appropriate reserves. Landlord shall have the right, from time to time, to equitably allocate some or all of the Operating Expenses among different tenants and/or different buildings and/or difference premises of the Property based upon differing levels of use, demand, risk, or other distinctions among such parties, premises or Buildings (the “Cost Pools”). Such Cost Pools may include, for example, all office space tenants or industrial/R&D space tenants in the Property, Taxes and Insurance Costs based upon the applicable tenant improvements constructed within all or a portion of the Project, and may be modified to take into account the addition of any services additional buildings within the Property. Accordingly, in the event of such allocations into Cost Pools, Tenant’s Percentage shall be appropriately adjusted to reflect such allocation. In addition, if Landlord does not furnish a particular service or work provided (the cost of which, if furnished by Landlord would be included in Operating Expenses) to a particular tenant (other than Tenant) that has undertaken to perform such service or work in lieu of receiving it from Landlord, then Operating Expenses, Insurance Costs, costs of utilities and/or Taxes, as applicable, shall be considered to be increased by an amount equal to the Buildingadditional Operating Expenses, but not Insurance Costs, costs of utilities and/or Taxes that Landlord would reasonably have incurred had Landlord furnished such service or work to all tenants of the Buildingthat tenant.
Appears in 1 contract
Samples: Commercial Lease Agreement (Zhone Technologies Inc)
Operating Expenses. (a) Tenant shall pay to Landlord as Additional Rent its share of Operating Expenses for the Shopping Center, as stipulated in Section 1.6(c). “Operating Expenses” shall mean all costs and expenses incurred by Landlord, or others on the first day of each month during the TermLandlord’s behalf, in addition connection with the servicing, insuring, operation, protection, management, equipping, replacing, repair, and maintenance of the Common Areas and common facilities and elements appurtenant thereto serving the Shopping Center, and the retail stores therein. Tenant acknowledges that the building of which the Leased Premises are a part and the Shopping Center are part of a complex among which certain operating expenses are apportioned. Tenant further acknowledges that the annual Operating Expenses of the Shopping Center reflect such apportionment. Without limiting the generality of the forgoing, Operating Expenses shall include the appropriately-apportioned cost of the removal of snow, ice and debris; resurfacing and striping of surface or garage parking areas; garbage and trash removal from central depositories and recycling costs; fire protection systems, sprinkler systems, security alarm systems; storm and sanitary drainage systems and other utility systems; expenses incurred for health, welfare and safety; Shopping Center signs on and off the site; directional signs and markers, on and off-site traffic regulations and control signs and devices; interior and exterior planting, landscaping, and all water used to irrigate the same; music program services and loudspeaker systems (whether rented or purchased) including the electricity therefore, and seasonal holiday decorations; premiums for all insurance maintained by Landlord; cost of personnel, with the exception of salaries, commissions, fringe benefits and other compensation paid to persons who devote only a portion of their time to the Base Rent, Xxxxxx's Share of all Operating Expenses in accordance with the following provisions:
(a) Operating Expenses" are all costs incurred by Landlord relating to the maintenance or operation of the PropertyBuilding to the extent that such compensation is not properly allocated to work spent on matters unrelated to the Building; reasonable property management fees; the cost of heating, includingventilation, but not limited to, the following: (i) the operation, repair, maintenance and replacement air-conditioning used in neat, clean, good order and condition retail stores; cleaning of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity services to achieve a reduction of, or to minimize the increase in, Operating Expenses or Real Estate Taxes, but such cost may be included in Operating Expenses in any year only to the extent the reduction obtained; vault rentals; personal property tax on equipment used in the maintenance of the Common Area; capital expenditures and other utilities consumed costs of Landlord for equipment or systems installed to reduce or minimize increases in Operating Expenses or to comply with any governmental or quasi-governmental ordinance or requirement imposed after the Rent Start Date; and maintenance, repair, replacement, inspection and, if not otherwise included above, depreciation of all machinery and equipment used in the operation and maintenance of the systems serving Common Areas or retail stores, and any all personal property taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or and other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses charges incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Buildingequipment.
Appears in 1 contract
Samples: Lease
Operating Expenses. Tenant shall pay to Landlord on the first day of each month during the Term, in addition to the Base Rent, Xxxxxx's Share of all Operating Expenses in accordance with the following provisions:
(a) “Operating Expenses" are ” shall include all costs and expenses incurred by Landlord relating to in owning, operating, managing, repairing and replacing the operation Building and Common Area, including, but not limited to, all costs and expenses of: (i) Landlord’s Insurance, whether or not required by any Landlord’s Lender; (ii) pest control, cleaning of exterior windows, cleaning, sweeping, striping, painting, resurfacing, repaving, seal coating, disposing of refuse, inspecting, planting and landscaping (including, but not limited to, tree trimming and plants located within the Building) for the Building (exclusive of the PropertyPremises and any other premises used exclusively by another tenant) and Common Area; (iii) providing janitorial services for the Building’s Common Area and the Building’s individual suites (including the Premises), including, but not limited to, the following: (i) the operationcost of uniforms, repair, maintenance equipment and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security servicesemployment taxes; (iv) Real Property Taxes; (v) premiums for providing, at the insurance policies maintained by Landlord under Paragraph 8 sole discretion of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building componentssecurity, including, but not limited to, roof, elevators electronic intrusion and fire detection control devices, card key access systems, parking lot attendants, guards and sprinkler any attendant costs of such guards and telephonic alert system devices; (v) complying with all Regulations, as defined in Section 11.2 hereof, and any requirements of Landlord’s Lender, including, but not limited to, improvements or changes required by any current or future Regulations or Landlord’s Lender; (vi) fees for permits and licenses; (vii) attorneys’ and accountants’ fees and disbursements; (viii) court costs (except if involving disputes with other tenants); (ix) replacing and maintaining floors, carpeting, artwork, non-structural walls, hallways, roofs, stairways, elevators, signage for the Building, including, but not limited to, any monument signs (exclusive of the Premises and any other premises used exclusively by another tenant), gutters, pay telephones, downspouts, building service, elevator and escalator service (if any), electrical, lighting, mechanical, plumbing, heating, air conditioning and ventilating equipment and systems.
, sidewalks, landscaping, drainage, equipment, fixtures, hot water heater, including all labor and materials costs and equipment rental fees, and any other replacement of capital improvements and a reasonable amortization of capital expenditures together with interest on the unamortized balance at the rate of ten percent (b10%) To per annum; (x) replacement reserves for non-structural elements; (xi) any other expenses of any kind whatsoever which would reasonably or customarily be included in managing, operating, maintaining, repairing and replacing non-structural items in office buildings in the extent location in which the Building is situated; (xii) Cost Savings Capital Improvement Amortization (defined below); (xiii) a property management fee as described herein; (xiv) Real Estate Taxes and Utility Expenses, as defined below; (xv) Landlord’s Insurance, as defined below, and (xvi) parking cost for 47 parking spaces leased from Santa Xxxxx Water District (“SCWD”) pursuant to Section 8.4 below. Landlord may establish reasonable reserves for maintaining the Building and Common Area, and for the repair and replacement of improvements in the Building and Common Area, and may include the reserves as Operating Expenses, provided that when the reserves are actually used, the expenditure of the reserves shall not be considered Operating Expenses. Landlord shall determine, in its reasonable discretion, that any be paid a management fee as part of the Operating Expenses equal to three percent (3%) of the gross rentals from the Building for administration of the Building. In lieu of this management fee, Landlord may employ a management organization, including an affiliate of Landlord, in which event Operating Expenses shall have been incurred solely include its fee, which may exceed such limitation. Operating Expenses shall be adjusted to reflect ninety percent (90%) occupancy of the Building during any period in which the Building is not one hundred percent (100%) occupied. Notwithstanding the foregoing, Operating Expenses shall not include the following: (i) any ground lease rental for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth Land (SCWD lease rentals described in Paragraph 4.2(a(xvi) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant above shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder orincluded); (ii) costs, if such statement shall relate to the last calendar year falling whole or partially within the Termincluding permit, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statementlicense and inspection costs, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records incurred with respect to the period installation of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity tenant or other utilities consumed occupants’ improvements in the Building or incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos tenants or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion occupants of the Building; (viiii) transfermarketing costs, gainsincluding without limitation, franchiseleasing commissions, giftattorneys’ fees in connection with the negotiation and preparation of letters, inheritancedeal memos, estate letters of intent, leases, subleases and/or assignments, space planning costs, and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with lease, sublease and/or assignment negotiations and transactions with present or prospective tenants or other occupants of the creationBuilding; (iv) expenses in connection with services or other benefits which are not offered to Tenant or for which Tenant is charged for directly but which are provided to another tenant or occupant of the Building; (v) costs incurred by Landlord due to the violation by Landlord of the terms and conditions of any lease of space in the Building; (vi) overhead and profit increment paid to Landlord or to subsidiaries or affiliates of Landlord for goods and/or services in or to the Building to the extent the same exceeds the costs of such goods and/or services rendered by unaffiliated third parties on a competitive basis; (vii) Landlord’s general corporate overhead and general and administrative expenses; (viii) any compensation paid to clerks, maintenanceattendants or other persons in commercial concessions operated by Landlord; (ix) advertising and promotional expenditures, modification and costs of signs in or negotiation on the Building identifying the owner of the Building or other tenants’ signs; (x) tax penalties incurred as a mortgage result of Landlord’s negligence, inability or superior lease unwillingness to make payments and/or to file any tax or informational returns when due; (xi) costs for which Landlord has been compensated by a management fee, and any management fees in excess of those management fees which are normally and customarily charged by landlords of comparable buildings; (xii) costs arising from the negligence or in litigation with a mortgagee fault of Landlord or ground lessor)its agents, or other financing any vendors, contractors, or refinancing and all fees payable pursuant to such mortgagesproviders of materials or services selected, leases, financings hired or refinancings engaged by Landlord or its agents including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose selection of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractorsbuilding materials; (xiii) costs arising from Landlord’s charitable or political contributions; (xiv) costs arising from defects in the base, shell or core of the Building, improvements installed by Landlord or repair thereof; (xv) costs (including in connection therewith all attorneys’ fees and costs of settlement, judgments and payments in lieu thereof) arising from claims, disputes or potential disputes in connection with potential or actual claims, litigation or arbitration pertaining to Landlord, other tenants and/or the Building; (xvi) costs associated with operating the operation of the business of the legal entity corporation which constitutes Landlord to the extent that as the same is separate and apart are distinguished from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant operation of the Building, including accounting and legal matters, costs of defending any lawsuits with any mortgagee (except as the actions of Tenant may be in issue), costs of selling, syndicating, financing, mortgaging or hypothecating any of Landlord’s interest in the Building, costs of any disputes between Landlord and its employees (if any) not engaged in Building operation, disputes of Landlord with Building management, or outside fees paid in connection with disputes with other tenants; (xvii) any entertainment, dining or travel expenses for any purpose; (xviii) any flowers, gifts, balloons, etc., provided to any entity whatsoever, including, but not limited to, Tenant, other tenants, employees, vendors, contractors, prospective tenants and agents; (xix) the cost of any “tenant relations” parties, events or promotion not consented to all tenants by Tenant in writing; (xx) “in-house” legal and/or accounting fees; or (xxi) the costs of addressing any environmental condition (not caused by Tenant, its employees, agents, contractors, vendors, guests, or invitees) on or in the Land, Building, or Premises.
Appears in 1 contract
Operating Expenses. Tenant shall pay to Landlord on For the first day purposes of each month during this Lease, the Term, in addition to the Base Rent, Xxxxxx's Share of all Operating Expenses in accordance with the following provisions:
(a) term ------------------ "Operating Expenses" are shall mean all costs expenses paid or incurred by Landlord relating (or on Landlord's behalf) as reasonably determined by Landlord to be necessary or appropriate for the operation efficient operation, maintenance and repair of the PropertyLand and/or Building including the common areas of the Building, including, but not limited to, the followingincluding without limitation: (i) salaries, wages, medical, surgical, union and general welfare benefits (including, without limitation, group life insurance) and pension payments of employees of Landlord engaged in the operation, repair, operation and maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directoriesLand and/or Building; (ii) waterpayroll taxes, gasworkers' compensation insurance, electricity, telephone uniforms and other utilities servicing the Common Areasrelated expenses for employees; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal all charges for gas, steam, electricity, heat, ventilation, air- conditioning, water and other utilities furnished to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building includingBuilding, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records together with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in questionon such utilities; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereofpainting of public areas; (v) expenses incurred in connection the cost of all charges of insurance, including but not limited to all risk property insurance with rent loss coverage, liability and fidelity insurance, with regard to the construction, refurbishing or expansion of Land and/or Building and the Buildingmaintenance and/or operation thereof; (vi) transferthe cost or rental of all supplies, gainsincluding without limitation, franchisecleaning supplies, giftlight bulbs, inheritancetubes and ballasts, estate materials and income equipment, and sales and other taxes imposed upon Landlord, any superior lessor or any mortgageethereon; (vii) costs for which Landlord is reimbursed through a condemnation awardthe cost of hand tools and other movable equipment used in the repair, maintenance or operation of the proceeds Building amortized over the useful life of insurance or otherwise, but only to the extent of any such reimbursementhand tools and movable equipment (as reasonably estimated by Landlord); (viii) ground rent, if any, or any the cost of all charges for window and other payments under any superior leasecleaning and janitorial and security services; (ix) depreciation, amortization and other, similar noncash itemscharges of independent contractors performing repairs or services to the Land and/or Building; (x) costs non- capital repairs; (xi) remodeling of the public and expenses incurred in connection with common areas of the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings Building including, without limitation, pointsrepainting, late charges replacement and repair of furnishings, fixtures, accessories, carpeting or other expenses whether similar or dissimilar to floor covering, wall and window coverings in the foregoing; (xi) expenses incurred to leasepublic and common areas, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating which shall be amortized (with interest at the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xivrate of nine percent [9%] on the unamortized balance) costs of any services or work provided to a particular tenant over the useful life of the Building, but not to all tenants of the Building.improvements as reasonably estimated by Landlord;
Appears in 1 contract
Operating Expenses. Tenant shall pay to Landlord on All costs incurred by Landlord, if any, for any of the first day of each month during the Term, in addition to the Base Rent, Xxxxxx's Share of all Operating Expenses in accordance with the following provisionsfollowing:
(a) Operating Expenses" are all costs incurred by Landlord relating to the operation of the Property, including, but not limited to, the following: (i) the The operation, repairrepair and maintenance, maintenance and replacement in neat, clean, clean and good order and condition of (i) the Common AreasAreas of the Project, including without limitation all parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, and irrigation systems, drainage systems, common area lighting facilities, and fences and gates, exterior signs and tenant directories; (ii) waterfire detection in the Project, gas, electricity, telephone including sprinkler system maintenance and other utilities servicing the Common Areasrepair; and (iii) trash disposalunless allocated directly to Tenant pursuant to Section 8.1(b), janitorial servicesthe Building’s heating, snow removal, ventilation and security services; air conditioning (iv“HVAC”) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely following services are provided for the benefit of Project, such as trash disposal (provided, however that Tenant or otherwise solely or substantially as a result of Tenant's pay for trash disposal specific to its use of the demised premisesPremises if such use results in a disproportionately heavy use of the trash facilities for the Project), janitorial service, security services, gardening, painting, plumbing, electrical, carpentry, window washing, signage and equipment rental expenses, and any other service to be provided by Landlord shall have that is elsewhere in the right Lease stated to require that be an item of Operating Expenses.
(c) Any deductible portion of an insured loss concerning any of the items or matters described in this Section.
(d) Premiums for any insurance policies maintained by Landlord pursuant to Section 11 below.
(e) Real Property Taxes to be paid by Landlord.
(f) Utilities not separately metered to Tenant or other tenants of the Project.
(g) Independent contractors for services (excluding capital improvements), and compensation (including employment taxes and fringe benefits) of all persons who perform regular and recurring duties connected with day-to-day operation, maintenance and repair of the Project, provided such compensation is commercially reasonable.
(h) Maintenance and repair of roofs, building walls, foundations, and all sewer and water facilities.
(i) A property management fee in the amount of fifteen percent (15%) of the preceding items of Operating Expenses be borne solely by XxxxxxExpenses.
(j) Dues and assessments payable to the Project’s property owners association (if any).
(k) Upon completion of the future common areas of the Business Park, the costs and expenses of operation and maintenance thereof. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease the foregoing definition shall not be deemed to Landlord’s representation that such improvements or facilities exist, nor shall it impose on Landlord any obligation upon Landlord either to either have said those improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on , unless the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses improvements or facilities already exist in the amount set forth in Paragraph 1.6 of this lease. Project or Landlord shall deliver to Tenant within 90 days after already provides the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share services as of the actual Operating Expenses incurred during Commencement Date, or unless Landlord has agreed to do so elsewhere in the preceding yearLease. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share Capital improvements, as indicated on said statementdefined by Generally Accepted Accounting Practice (GAAP), Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth are not included in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: except (i) bad debt lossesas otherwise provided in this Lease, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or for those that directly reduce other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord Operating Expenses as defined in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Buildingthis Section 2.16.
Appears in 1 contract
Operating Expenses. Tenant shall pay to Landlord Throughout the Term of this Lease, commencing on the first day of each month during the TermCommencement Date, in addition Tenant agrees to the Base Rent, Xxxxxx's Share of all Operating Expenses pay Landlord as additional rent in accordance with the following provisions:
(a) Operating Expenses" are all costs incurred by Landlord relating to the operation of the Property, including, but not limited to, the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 terms of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building includingParagraph 6, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses /or the taxes and insurance for the year.
(d) In Project and all costs and expenses of the event that Tenant shall dispute operation, maintenance, repair, and replacement o/ the amounts set forth in any of Landlord's statements regarding actual Operating ExpensesProject including, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall excludewithout limitation: (i) bad debt lossesany form of real property tax assessment, rent losses license tee, license tax, business license fee, commercial rental tax, levy, charge, improvement bond or reserves for bad debt similar imposition of any kind or rent lossesnature imposed by any authority having the direct power to tax, including any city, county, state or federal government, or any school, agricultural lighting, drainage or other improvement or special assessment district thereof; (ii) any and all assessments under any covenants, conditions and restrictions affecting the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereonProject; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in questionwater, sewer and other utility charges; (iv) costs of insurance obtained by Landlord pursuant to Paragraph 19 of the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereofLease; (v) waste disposal and janitorial services; (vi) security; (vii) labor; (viii) management costs including, without limitation: (A) wages and salaries (and payroll taxes and similar charges) of property management employees, and (B) management office rental, supplies, equipment and related operating expenses incurred and management tees; (ix) supplies, materials, equipment and tools including rental o/ personal property; (x) repair and maintenance o/ the structural portions o/ the buildings with the Project, including the plumbing, heating, ventilating, air-conditioning and electrical systems installed or furnished by Landlord; (xi) maintenance, costs and upkeep of ail parking and other Common Areas; (xii) depreciation on a straight line basis and rental of personal property used in maintenance; (xiii) amortization on a straight line basis over the useful life [together with interest at the Interest Rate on the unamortized balance] of all capitalized expenditures which are: (A) reasonably intended to produce a reduction in operating charges or energy consumption; or (B) required under any governmental law or regulation that was not applicable to the Project at the time it was originally constructed; or (C) for replacement of any Project equipment needed to operate the Project at the same quality levels as prior to the replacement; (xiv) gardening and landscaping; (xv) maintenance of signs (other than signs of tenant's of the Project); (xvi) personal property taxes levied on or attributable lo personal property used in connection with the construction, refurbishing or expansion of the BuildingCommon Areas; (vixvii) transferreasonable accounting, gainsaudit, franchiseverification, gift, inheritance, estate legal and income taxes imposed upon Landlord, any superior lessor or any mortgageeother consulting fees; and (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (xxviii) costs and expenses incurred in connection with the creationof repairs, resurfacing, repairing, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor)painting, or other financing or refinancing lighting, cleaning, refuse removal, security and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder)items, including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Building.appropriate reserves
Appears in 1 contract
Samples: Lease Agreement (Litronic Inc)
Operating Expenses. Tenant For the purposes of this Lease, the term ------------------ "Operating expenses" shall pay to Landlord on the first day of each month during the Term, in addition to the Base Rent, Xxxxxx's Share of mean all Operating Expenses in accordance with the following provisions:
(a) Operating Expenses" are all costs expenses paid or incurred by Landlord relating (or on Landlord's behalf) as reasonably determined by Landlord to be necessary or appropriate for the operation efficient operation, maintenance and repair of the PropertyLand and/or Building, includingincluding the common areas of the Building, but not limited to, the followingincluding without limitation: (i) salaries, wages, medical, surgical, union and general welfare benefits (including, without limitation, group life insurance) and pension payments of employees of Landlord engaged in the operation, repair, operation and maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directoriesLand and/or Building; (ii) waterpayroll taxes, gasworkers' compensation insurance, electricity, telephone uniforms and other utilities servicing the Common Areasrelated expenses for employees; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal all charges for gas, steam, electricity, heat, ventilation, air- conditioning, water and other utilities furnished to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building includingBuilding, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records together with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in questionon such utilities; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereofpainting of public areas; (v) expenses incurred in connection the cost of all charges of insurance, including rent loss insurance, casualty, liability, fire with extended coverage endorsement and fidelity insurance, with regard to the construction, refurbishing or expansion of Land and/or Building and the Buildingmaintenance and/or operation thereof; (vi) transferthe cost or rental of all supplies including without limitation, gainscleaning supplies, franchiselight bulbs, gifttubes and ballasts, inheritance, estate materials and income equipment and sales and other taxes imposed upon Landlord, any superior lessor or any mortgageethereon; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds cost of insurance hand tools and other movable equipment used in the repair maintenance or otherwise, but only to operation of the extent Building amortized over the useful life of any such reimbursementhand tools and movable equipment (as reasonably estimated by Landlord); (viii) ground rent, if any, or any the cost of all charges for window and other payments under any superior leasecleaning and janitorial and security services; (ix) depreciation, amortization and other, similar noncash itemscharges of independent contractors performing repairs or services to the Land and/or Building; (x) costs non-capital repairs; (xi) remodeling of the public and expenses incurred in connection with common areas of the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings Building including, without limitation, pointsrepainting, late charges replacement and repair of furnishings, fixtures, accessories, carpeting or other expenses whether similar or dissimilar to floor covering, wall and window coverings in the foregoing; public and common areas, the cost of which shall be amortized (xiwith interest at the rate of nine percent [9%] on the unamortized balance) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose over the useful life of the Building and/or the land thereunder or any portion of the Property (including any interest in improvements as reasonably estimated by Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees alterations and disbursements paid as a result improvements to the Building made by reason of a judgment, settlement the laws and requirements of any public authorities or arbitration award resulting from any liability the requirements of Landlord or Landlord's agents, servants or contractorsinsurance bodies; (xiii) costs associated with operating management fees paid to a third party, or, if no managing agent is employed by Landlord, Landlord shall be entitled to charge a management fee which is not in excess of four percent (4%) of gross revenue, and such fee shall be included in the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from Operating Expenses; (xiv) the cost of operating any capital improvements or repairs to the Building and/or of any machinery or equipment installed in the Building amortized (includingwith interest at the rate of nine percent [9%] on the unamortized balance) over the useful life of the improvement, without limitationmachinery and/or equipment as reasonably estimated by Landlord, forming which is made or becomes operational, as the case may be, after the completion of the construction of the Building and continuing such legal entity and tending to its internal which have a reasonable probability of reducing the expenses which otherwise would be included in Operating Expenses; (xv) reasonable legal, accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant other professional fees incurred in connection with operation, maintenance and management of the Land and/or Building; (xvi) the cost of providing elevator service; (xvii) the cost of landscape and parking area maintenance and repair; (xviii) the common area charges to which the Building is subject; (xix) Taxes as defined in Section 4.3; and (xx) all other charges properly allocable to the operation, but not to all tenants repair and maintenance of the BuildingBuilding in accordance with generally accepted accounting principles.
Appears in 1 contract
Operating Expenses. Tenant shall pay to Landlord on For the first day purposes of each month during this Lease, the Term, in addition to the Base Rent, Xxxxxx's Share of all Operating Expenses in accordance with the following provisions:
(a) term ------------------ "Operating Expenses" are shall mean all costs expenses paid or incurred by Landlord relating (or on Landlord's behalf) as reasonably determined by Landlord to be necessary or appropriate for the operation efficient operation, maintenance and repair of the PropertyLand and/or Building, includingincluding the common areas of the Building, but not limited to, the followingincluding without limitation: (i) salaries, wages, medical, surgical, union and general welfare benefits (including, without limitation, group life insurance) and pension payments of employees of Landlord engaged in the operation, repair, operation and maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directoriesLand and/or Building; (ii) waterpayroll taxes, gasworkers compensation insurance, electricity, telephone uniforms and other utilities servicing the Common Areasrelated expenses for employees; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal all charges for gas, steam, electricity, heat, ventilation, air- conditioning, water and other utilities furnished to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building includingBuilding, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records together with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in questionon such utilities; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereofpainting of public areas; (v) expenses incurred in connection the cost of all charges of insurance, including but not limited to all risk property insurance with rent loss coverage, liability and fidelity insurance, with regard to the construction, refurbishing or expansion of Land and/or Building and the Buildingmaintenance and/or operation thereof; (vi) transferthe cost or rental of all supplies, gainsincluding without limitation, franchisecleaning supplies, giftlight bulbs, inheritancetubes and ballasts, estate materials and income equipment, and sales and other taxes imposed upon Landlord, any superior lessor or any mortgageethereon; (vii) costs for which Landlord is reimbursed through a condemnation awardthe cost of hand tools and other movable equipment used in the repair, maintenance or operation of the proceeds Building amortized over the useful life of insurance or otherwise, but only to the extent of any such reimbursementhand tools and movable equipment (as reasonably estimated by Landlord); (viii) ground rent, if any, or any the cost of all charges for window and other payments under any superior leasecleaning and janitorial and security services; (ix) depreciation, amortization and other, similar noncash itemscharges of independent contractors performing repairs or services to the Land and/or Building; (x) costs non- capital repairs; (xi) remodeling of the public and expenses incurred in connection with common areas of the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings Building including, without limitation, pointsrepainting, late charges replacement and repair of furnishings, fixtures, accessories, carpeting or other expenses whether similar or dissimilar to floor covering, wall and window coverings in the foregoing; public and common areas, the cost of which shall be amortized (xiwith interest at the rate of nine percent (9%) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose on the unamortized balance) over the useful life of the Building and/or the land thereunder or any portion of the Property (including any interest in improvements as reasonably estimated by Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees alterations and disbursements paid as a result improvements to the Building made by reason of a judgment, settlement Legal Requirements or arbitration award resulting from any liability the requirements of Landlord or Landlord's agents, servants or contractorsinsurance bodies; (xiii) costs associated with operating management fees paid to a third party, or, if no managing agent is employed by Landlord, Landlord shall be entitled to charge a management fee which is not in excess of four percent (4%) of gross revenue, and such fee shall be included in the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from Operating Expenses; (xiv) the cost of operating any capital improvements or repairs to the Building and/or of any machinery or equipment installed in the Building amortized (includingwith interest at the rate of nine percent (9%) on the unamortized balance) over the useful life of the improvement, without limitationmachinery and or equipment as reasonably estimated by Landlord, forming which is made or becomes operational, as the case may be, after the completion of the construction of the Building and continuing such legal entity and tending to its internal which have a reasonable probability of reducing the expenses which otherwise would be included in Operating Expenses; (xv) reasonable legal, accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant other professional fees incurred in connection with operation, maintenance and management of the Land and/or Building; (xvi) the cost of providing elevator service; (xvii) the cost of landscape and parking area maintenance and repair; (xviii) the common area charges to which the Building is subject, but not if any; (xix) Taxes as defined in Section 4.3; and (xx) all other charges properly allocable to all tenants the operation, repair and maintenance of the BuildingBuilding in accordance with generally accepted accounting principles. Accounting for Operating Expenses, including the matters set forth in Sections 4 and 5 of this Lease, shall be in accordance with generally accepted accounting principles consistently applied.
Appears in 1 contract
Samples: Lease Agreement (Inflow Inc)
Operating Expenses. Tenant shall pay to Landlord Throughout the Term of this Lease, commencing on the first day of each month during the TermCommencement Date, in addition Tenant agrees to the Base Rent, Xxxxxx's Share of all Operating Expenses pay Landlord as additional rent in accordance with the following provisions:
(a) terms of this Pxxxxxxxx 0, Xxxxxx’s Share of Operating Expenses" are Expenses for the taxes and insurance for the Project and all costs incurred by Landlord relating to and expenses for the operation operation, maintenance, repair, and replacement of the Property, Project including, but not limited to, the followingwithout limitation: (i) any form of real property tax assessment, license fee, license tax, business license fee, commercial rental tax, levy, charge, improvement bond or similar imposition of any kind or nature imposed by any authority having the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areasdirect power to tax, including parking areasany city, loading and unloading areascounty, trash areasstate or federal government, roadwaysor any school, sidewalksagricultural, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systemslighting, drainage systemsor other improvement or special assessment district thereof, lighting facilitiesincluding, fences and gateswithout limitation, exterior signs and tenant directoriesany new taxes which are in substitution for or in addition to any current taxes payable hereunder; (ii) any and all assessments under any covenants, conditions and restrictions affecting the Project; (iii) water, gas, electricity, telephone sewer and other utilities servicing utility charges; (iv) costs of insurance obtained by Landlord pursuant to Paragraph 19 of the Lease; (v) waste disposal and janitorial services; (vi) security; (vii) labor; (viii) management costs including, without limitation: (A) wages and salaries (and payroll taxes and similar charges ) of property management employees, and (B) management office rental, supplies, equipment and related operating expenses and management fees; (ix) supplies, materials, equipment and tools including rental of personal property; (x) repair and maintenance of the structural portions of the buildings with the Project, including the plumbing, heating, ventilating, air-conditioning and electrical systems installed or furnished by Landlord; (xi) maintenance, costs and upkeep of all parking and other Common Areas; (xii) depreciation on a straight line basis and rental of personal property used in maintenance; (xiii) amortization on a straight line basis over the useful life [together with interest at the Interest Rate on the unamortized balance] of all capitalized expenditures which are: (A) reasonably intended to produce a reduction in operating charges or energy consumption; or (B) required under any governmental law or regulation that was not applicable to the Project at the time it was originally constructed; or (C) for replacement of any Project equipment needed to operate the Project at the same quality levels as prior to the replacement; (xiv) gardening and landscaping; (xv) maintenance of signs (other than signs of tenants of the Project); (xvi) personal property taxes levied on or attributable to personal property used in connection with the Common Areas; (iiixvii) trash disposalreasonable accounting, janitorial servicesaudit, snow removalverification, legal and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred consulting fees in connection with the constructionoperation, refurbishing maintenance, or expansion repair of the BuildingProject; and (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (xxviii) costs and expenses incurred in connection with the creationof repairs, resurfacing, repairing, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor)painting, or other financing or refinancing lighting, cleaning, refuse removal, security and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder)items, including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Buildingappropriate reserves.
Appears in 1 contract
Operating Expenses. Throughout the Term of this Lease, commencing at the Commencement Date, Tenant shall agrees to pay to Landlord on the first day of each month during the Term, in addition to the Base Rent, Xxxxxx's Share of all Operating Expenses as Additional Rent in accordance with the following provisions:
(a) terms of this Xxxxxxxxx 0, Xxxxxx’s Share of Operating Expenses" are Expenses for the taxes and insurance for the Project and all costs incurred by Landlord relating to and expenses for the operation operation, maintenance, repair, and replacement of the Property, including, but not limited to, the followingProject as follows: (i) any form of real property tax assessment, levy, charge, improvement bond or similar imposition of any kind or nature real estate taxes and assessments levied upon the operation, repair, maintenance Building and replacement in neat, clean, good order and condition of Premises imposed by any authority having the Common Areasdirect power to tax, including parking areasapplicable State, loading and unloading areasCounty, trash areasCity governments or any school, roadwaysagricultural, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systemslighting, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directoriesor other improvement or special assessment district thereof; (ii) any and all assessments under any covenants, conditions and restrictions affecting the Project; (iii) water, gas, electricity, telephone sewer and other utilities servicing utility charges (iv) management costs (“Management Costs”), including, without limitation, (A) wages and salaries (including payroll taxes and similar charges) of property management employees and (B) management office rental, supplies, materials, equipment and tools including rental of personal property directly attributable to the management of the Project, which Management Costs will in no event increase more than five percent (5%) from the immediately prior calendar year; (v) repair and maintenance of the structural portions of the buildings with the Project, including the plumbing, heating, ventilating, air-conditioning and electrical systems installed or furnished by Landlord; (vi) maintenance, costs and upkeep of all parking and other Common Areas; (vii) depreciation on a straight line basis and rental of personal property used in maintenance; (viii) gardening and landscaping; (xv) maintenance of signs (other than signs of tenants of the Project); (xvi) personal property taxes levied on or attributable to personal property used in connection with the Common Areas; (iiiix) trash disposalreasonable accounting, janitorial servicesaudit, snow verification, legal and other consulting fees; and (x) costs and expenses of repairs, resurfacing, repairing, maintenance, painting, lighting, cleaning, refuse removal, security and similar items, including appropriate reserves. Notwithstanding the foregoing paragraph, the following shall not be included as Operating Expenses: (a) interest, points and fees on debt or amortization on or for any mortgage or similar security servicesinstrument (a “Security Instrument”) encumbering the Project or any portion thereof, and all principal, escrow deposits and other sums paid on or in respect to any indebtedness (whether or not secured by a Security Instrument), and all costs incurred in connection with any financing, refinancing or syndication of the Project; (ivb) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization costs of capital improvements to the Common Areas and the Building any other expenditures that, under generally accepted accounting principles (the monthly amortization of any given capital improvement shall “GAAP”), should be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building includingcapitalized, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, except that any of the Operating Expenses shall have been incurred solely for include the benefit cost during the Term, as reasonably amortized by Landlord in accordance with GAAP, of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
capital improvement; (c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share costs of estimated Operating Expenses in the amount set forth in Paragraph 1.6 improvements to, or alterations of, space leased to or available for lease to any tenant; (d) costs of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share repairing or restoring any portion of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statementProject damaged by a fire or other casualty, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate except to the last calendar year falling whole or partially within the Term, any extent that such overage shall be refunded costs constitute expenses (as opposed to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments capital expenditures) under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord GAAP and do not exceed the amount of the deficiency within 30 days after delivery by Landlord to Tenant deductible under the policy of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
casualty insurance maintained (d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed required to be conclusively binding upon Tenant.
maintained) by Landlord, or are not covered or paid for by insurance proceeds; (e) Notwithstanding anything to costs of repairs, alterations or replacements required as the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) result of the cost exercise of any electricity right of eminent domain or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord conveyance in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result lieu thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only except to the extent that such costs constitute expenses (as opposed to capital expenditures) under GAAP and are not part of any such reimbursementthe condemnation award payable to Landlord with respect thereto; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (xf) costs and expenses incurred in connection with leasing space in or procuring tenants for the creationProject, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, pointsleasing commissions and advertising expenses, late charges and legal and other expenses whether similar or dissimilar to the foregoingprofessional fees; (xig) expenses court costs and legal fees incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose enforce the obligations of tenants under leases of portions of the Building and/or Project, or resulting from the land thereunder or any portion violation by Landlord of the Property (including terms and conditions of any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording chargeslease; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiiih) costs associated with operating of correcting defects in the business initial construction of the legal entity which constitutes Landlord to the extent Project, provided that the same is separate and apart from this shall not exclude the cost of operating normal repair and maintenance expected with respect to the Building construction materials and equipment installed in the Project; (i) wages, salaries, compensation and benefits of any employees above the level of property manager; and (j) fines, interest, charges, penalties, damages and other costs incurred by Landlord by reason of any default (or claim of default) or late payment by it under any lease or other contract or instrument (regardless of whether or not the payment itself is allowed to be included in Operating Expenses), including, without limitation, forming any legal and continuing such legal entity and tending to its internal accounting and legal affairs); other professional fees paid or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Buildingincurred in connection therewith.
Appears in 1 contract
Samples: Multi Tenant Net Commercial Lease (Encore Capital Group Inc)
Operating Expenses. Tenant shall pay to Landlord on the first day of each month during the Term, in addition to the Base Rent, Xxxxxx's Share of all Operating Expenses in accordance with the following provisions:
(a) “Operating Expenses" are ” shall include all costs and expenses incurred by Landlord relating to in owning, operating, managing, repairing and replacing the operation of the PropertyBuilding and Common Area, including, but not limited to, the followingall costs and expenses of: (i) the operationLandlord’s Insurance, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directorieswhether or not required by any Landlord’s Lender; (ii) waterpest control, gascleaning of exterior windows, electricitycleaning, telephone sweeping, striping, painting, resurfacing, repaving, seal coating, disposing of refuse, inspecting, planting and other utilities servicing the Common Areas; landscaping (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, paintingtree trimming and plants located within the Building) for the Building (exclusive of the Premises and any other premises used exclusively by another tenant) and Common Area; (iii) providing, caulking and repair and replacement at the sole discretion of Building componentsLandlord, security, including, but not limited to, roof, elevators electronic intrusion and fire detection control devices, card key access systems, parking lot attendants, guards and sprinkler any attendant costs of such guards and telephonic alert system devices; (iv) complying with all Regulations, as defined in Section 11.2 hereof, and any requirements of Landlord’s Lender, including, but not limited to, improvements or changes required by any current or future Regulations or Landlord’s Lender; (v) fees for permits and licenses; (vi) attorneys’ and accountants’ fees and disbursements; (vii) court costs awarded related to enforcing this Lease Agreement (except if involving disputes with other tenants); (viii) replacing and maintaining floors, carpeting, artwork, non-structural walls, hallways, roofs, stairways, elevators, signage for the Building, including, but not limited to, any monument signs (exclusive of the Premises and any other premises used exclusively by another tenant), gutters, downspouts, building service, elevator service (if any), electrical, lighting, mechanical, plumbing, heating, air conditioning and ventilating equipment and systems.
, sidewalks, landscaping, drainage, equipment, fixtures, hot water heater, including all labor and materials costs and equipment rental fees, and any other replacement of capital improvements and a reasonable amortization of capital expenditures, together with interest on the unamortized balance at the rate of seven percent (b7%) To per annum; (ix) replacement reserves for non•structural elements; (x) any other expenses of any kind whatsoever which would reasonably or customarily be included in managing, operating, maintaining, repairing and replacing non•structural items in office buildings in the extent location in which the Building is situated; (xi) Cost Savings Capital Improvement Amortization (defined below); (xii) a property management fee as described herein; (xiii) Real Estate Taxes, as defined below; and (xiv) Landlord’s Insurance, as defined below. Landlord may establish reasonable reserves for maintaining the Building and Common Area, and for the repair and replacement of improvements in the Building and Common Area, and may include the reserves as Operating Expenses, provided that when the reserves are actually used, the expenditure of the reserves shall not be considered Operating Expenses, and provided that any unused reserves during the year are paid back to Tenant with the delivery of Landlord’s Operating Statement. Landlord shall determine, in its reasonable discretion, that any be paid a management fee as part of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use equal to three and one-half percent (3.5%) of the demised premisesgross rentals from the Building for administration of the Building. In lieu of this management fee, Landlord shall have the right to require that such may employ a management organization, including an affiliate of Landlord, in which event Operating Expenses be borne solely by Xxxxxxshall include its fee, which may exceed such limitation. The inclusion of Notwithstanding the improvementsforegoing, facilities and services set forth in Paragraph 4.2(a) of this lease Operating Expenses shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
include the following: (ci) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses costs, including permit, license and inspection costs, incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period installation of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity tenant or other utilities consumed occupants’ improvements in the Building or incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos tenants or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion occupants of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Building.;
Appears in 1 contract
Operating Expenses. Tenant shall pay to Landlord on the first day of each month during the Term, in addition to the Base Rent, Xxxxxx's Share of all Operating Expenses in accordance with the following provisions:
(a) Operating Expenses" are all costs incurred by Landlord relating to the operation of the Property, including, but not limited to, the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth contained in this leaseParagraph 4.2 of the Lease Agreement, the term "Operating Expenses Expenses" shall excludenot include: (a) the cost of labor and employees with respect to any employee above the level of building manager; (b) the cost of labor and employees with respect to any supervisory or other personnel not located at the Industrial Center on a full-time basis unless such costs are appropriately allocated between the Industrial Center and the other responsibilities of such personnel; (c) the cost of fixturing, furnishing, painting or decorating any leasable space in the Industrial Center; (d) the cost of any "tenant allowances", "tenant concessions", and any alterations, improvements, or replacements made to leasable space in the Industrial Center; (e) cost of leasehold improvements and other preparations for occupancy made for specific lessees; (f) amounts paid for legal, brokerage or other professional services in connection with the leasing of space or in connection with relationships or disputes with lessees, former lessees, prospective lessees or other occupants; (g) depreciation and other non-cash charges (except as hereinafter provided); (h) interest on or amortization of debts; (i) bad debt losses, rent losses financing or reserves for bad debt or rent lossesrefinancing costs; (iij) brokerage commissions; (k) cost of any work or services performed or furnished to any tenant to the extent that same is, can be or would customarily be reimbursed to Lessor or a third party; (l) the cost of completion of the Building and any other improvements to the Industrial Center; (m) the cost of correcting any defects in construction; (n) expenses for which Lessor is or will be reimbursed by insurance proceeds or condemnation awards; (o) advertising and promotional expenses; (p) income, transfer, inheritance and franchise taxes; (q) expenses in the nature of interest, fines and penalties; (r) expenses which are properly allocable to property other than the Industrial Center are located; (s) rent, additional rent and other charges payable under any ground lease or any lease superior to this Lease; (t) the cost of installing, operating and maintaining any specialty service such as an observatory, parking facility (unless parking is without charge for all lessees and their employees and guests), a restaurant or luncheon, athletic or recreational club; (u) any insurance premium to the extent that the cost thereof is reimbursed by any tenant or other party; (v) any management or similar fee in excess of the customary fee for a similar property located in the vicinity of the Industrial Center; (w) any costs or other sums paid to any person or entity related to or affiliated with Lessor to the extent that same exceeds the reasonable and customary cost thereof; (x) any repairs, replacements or other expenses resulting from the negligence or misconduct of Lessor or its employees or agents; (y) the cost of any electricity or other utilities consumed for Common Areas and furnished to any taxes levied thereonleasable space; (iiiz) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses accounting fees incurred in connection with the constructionpreparation of financial statements, refurbishing tax returns and other documents and information for Lessor or expansion its mortgagees; (aa) costs of repairs or replacements incurred due to casualty or condemnation; (bb) costs in connection with services (including electricity), items, or other benefits of a type which are not standard for the Industrial Center and which are not available to Lessee without specific charge therefor, but which are provided to another tenant or occupant of the BuildingIndustrial Center, whether or not such other tenant or occupant is specifically charged therefor by Lessor; (vicc) transfercompensation paid to clerks, gainsattendants or other persons in commercial concessions (such as snack bars, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor restaurant or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rentnewsstand), if any, operated by Lessor or any other payments under any superior leasesubsidiary, affiliate or agent of Lessor; (ixdd) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges rentals and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Building.related
Appears in 1 contract
Operating Expenses. Landlord shall promptly perform all maintenance and repairs upon the common areas, including, without limitation, all landscaped areas, parking areas and structures, paved areas, sidewalks and drives at or serving the Building or the Property, except to the extent expressly made the responsibility of Tenant under this Lease Agreement. During the Term of this Lease Agreement and any renewals or extensions thereof, Tenant shall pay to Landlord on its pro rata share of the first day of each month during the Term, in addition to the Base Rent, Xxxxxx's Share of all Operating Expenses incurred by Landlord in accordance with owning, operating, managing, maintaining, repairing, replacing and insuring the following provisions:
Building, the Parking Areas and other common areas of the Building, and the parcel(s) of land on which they are located, including for Retail Lots 6 and 7. The term "Operating Expenses" herein shall include, but not be limited to: (a) all payments by Landlord for maintenance, operation, repair, replacement and care of: (i) all heating, lighting, fire protection and plumbing fixtures in or serving the Parking Areas and other common areas and (ii) all equipment, systems, roofs, exterior glass, landscaped areas, signs, the Building’s exteriors and parking lots (including seal coating); (b) all payments by Landlord for electricity, water, sewer and other utilities not separately metered or sub-metered, costs allocated to the Building or the parcels on which the Building is located pursuant to a reciprocal easement agreement or declaration (or similar document), snow removal for the Parking Areas, refuse removal, painting, insurance premiums and deductibles, management fees up to 3% of gross annual revenues for the Premises, wages and fringe benefits of personnel employed for the aforesaid work and proportionate costs of equipment purchased and used for such purposes; and (c) the amortization of capital expenditures or investments (but not improvements or expansions), all as determined on a commercially reasonable basis by Landlord using an interest rate of no greater than 8% and amortized over the useful life of the capital improvement, replacement or investment as reasonably determined by Landlord. The term “Operating Expenses" are all costs incurred by Landlord relating ” shall not be deemed to the operation include any of the Property, including, but not limited to, the following: (i) the operationleasing costs and commissions, repaircosts of tenant disputes, maintenance leasehold improvements and replacement other costs of preparing space for tenants, other tenant incentives, and expenses incurred in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directoriesnegotiating or enforcing leases; (ii) waterinterest, gas, electricity, telephone and principal or any other utilities servicing payments made to the Common Areasmortgagee under any mortgage or rental or any other payments made to the ground lessor under any ground lease; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation awardreimbursed, the including costs covered by proceeds of insurance insurance, condemnation awards or otherwisecourt judgments, but only amounts specially billed to the extent and payable by an individual tenant and costs covered by any manufacturer’s, contractor’s or other warranty; (iv) fees and other costs for professional services provided by attorneys, space planners and architects; (v) marketing and advertising expenses; (vi) any costs of any such reimbursementcapital improvements or expansions (as opposed to capital repairs or replacements, or maintenance of items of a capital nature); (vii) political or charitable contributions; (viii) ground rentcosts incurred in connection with the mortgaging, if any, selling or changing of ownership of a building or any other payments under any superior leasepart of the associated real property, including, without limitation, brokerage commissions, consultants’, attorneys’ and accountants’ fees, closing costs, title insurance premiums, transfer taxes and interest charges; (ix) depreciation, amortization and other, similar noncash itemsReal Estate Taxes (which are covered in Article 6(a)(i)) or any costs expressly excluded from the definition of Real Estate Taxes; (x) costs and expenses incurred in connection with the creationoriginal construction of the Building or any other part of the Property and costs of repairing, maintenancereplacing or otherwise correcting defects or deficiencies in the design, modification construction or negotiation components of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoingimprovements comprising the Property; (xi) expenses costs incurred to leasein connection with the investigation, licenseremoval, sell, syndicate, hypothecate, transfer remediation or otherwise dispose clean-up of the Building and/or the land thereunder or any portion of Hazardous Materials from the Property or Building (including the fees of any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunderenvironmental consultants), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damagesLandlord’s general corporate overhead and general and administrative expenses or wages, attorneys' fees salaries, fees, and disbursements fringe benefits paid as a result of a judgment, settlement to administrative or arbitration award resulting from any liability executive personnel or officers or partners of Landlord not having direct day to day responsibility for operating or Landlord's agents, servants or contractorsproviding services to the Building; (xiii) costs associated any "tap fees" or one-time lump sum sewer or water connection fees for the Property payable in connection with operating the business original construction of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs)Property; or (xiv) costs incurred for any item to the extent covered by a manufacturer’s, materialman’s, vendor’s or contractor’s warranty and paid by such manufacturer, materialman, vendor or contractor (Landlord shall pursue a breach of warranty claim for items of Landlord’s Work covered by a warranty); (xv) development fees, impact fees and similar charges; and (xvi) deductibles and retentions on any services or work provided to a particular tenant insurance maintained by Landlord that are in excess of the Buildingcommercially reasonable deductibles (i.e., but self-insurance shall not to all tenants of the Buildingbe an Operating Expense).
Appears in 1 contract
Samples: Lease Agreement (SomaLogic, Inc.)
Operating Expenses. (a) Tenant shall pay to Landlord on the first day of each month during the Term, in addition to the Base Rent, Xxxxxx's Share term of this Lease as additional rent [tenant’s percentage share of common operating expenses] (“Tenant’s Share”) of all Operating Expenses Expenses, as defined in accordance this Lease, incurred in connection with the following provisions:
(a) Operating Expenses" are all costs incurred by Landlord relating to the operation of the PropertyBuilding or incurred in connection with the operation of the Project and fairly allocable to the Building.
(b) As used in this Lease, including, but not limited to, the following: “Operating Expenses” means
(i) all costs and expenses incurred by Landlord for the operationfollowing:
(A) the maintenance, repair, maintenance operation, and replacement in neatof the Building’s heating, cleanventilation or air conditioning systems;
(B) the maintenance, good order repair, cleaning, resurfacing, or painting, as appropriate, of the Building’s roof and condition walls;
(C) the premiums paid to maintain the casualty and liability insurance carried by Landlord covering the Project pursuant to this Lease;
(D) the provision of utilities to the Common Areas, including but not limited to gas, electricity, garbage and trash removal, and water for irrigation;
(E) the maintenance of all landscaping in the Common Areas, including the installation and maintenance of irrigation system the planting and maintenance of shrubs, trees, flowering plants, and ground cover;
(F) the compliance with all Laws;
(G) the operation, maintenance, repair, cleaning, painting, and resurfacing of the parking areaslots included in the Common Areas;
(H) the installation, loading repair, and unloading areas, trash maintenance of all light fixtures and signs located in the Common Areas and on or in the Building;
(I) the provision of security to the Building and the Common Areas;
(J) the maintenance of all parking areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpersfences, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing gates contained in the Common Areas; ;
(iiiK) trash disposal, janitorial services, snow removal, the establishment and security services; (iv) Real Property Taxes; (v) premiums for maintenance of directories of tenants in the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas Building and the Building Project; and
(the monthly amortization of any given capital improvement shall be the sum of: (AL) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair of all fire prevention and replacement of Building componentsdetection systems, including, but not limited to, roof, elevators and fire detection including smoke detectors and sprinkler systems.
(bii) To management fees, whether for services rendered by Landlord, an affiliate of Landlord, Landlord’s employees, or a third- party property manager hired by Xxxxxxxx, provided that the extent Landlord shall determine, total amount of management fees includable in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) purposes of this lease Lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.exceed [describe limit on pass-through of management fees];
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts Property Taxes paid to affiliates of by Landlord in excess of the competitive costs of the item in question; under this Lease;
(iv) the cost amount of removing and/or abating any asbestos or other Hazardous Substances deductible paid by Landlord in or about connection with an insured loss resulting from damage to the Property and any costs incurred as a result thereof; Project;
(v) the amount of any uninsured loss resulting from damage to the Project; and
(vi) all additional costs and expenses incurred by Landlord in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creationoperation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor)repair, or other financing or refinancing replacement, and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose protection of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred Project that would be considered a current expense according to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal generally accepted accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Buildingprinciples.
Appears in 1 contract
Samples: Industrial Lease
Operating Expenses. Tenant For the purposes of this Lease, the term "OPERATING EXPENSES" shall pay to Landlord on the first day of each month during the Term, in addition to the Base Rent, Xxxxxx's Share of mean all Operating Expenses in accordance with the following provisions:
(a) Operating Expenses" are all costs reasonable expenses paid or incurred by Landlord relating (or on Landlord's behalf) as reasonably determined by Landlord to be necessary or appropriate for the operation efficient operation, maintenance and repair of the PropertyLand and/or Building, includingincluding the common areas of the Building, but not limited to, the followingincluding without limitation: (i) salaries, wages, employer's social security taxes, unemployment taxes or insurance and other taxes which are levied on wages and salaries, medical, surgical, union and general welfare benefits (including, without limitation, disability and group life insurance) and pension payments of employees of Landlord to the operation, extent such employees are engaged in the repair, operation and maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directoriesLand and/or Building (but specifically excluding any administrative position above the property manager for the Building and/or Land); (ii) waterpayroll taxes, gasworkers' compensation insurance, electricity, telephone uniforms and other utilities servicing the Common Areasrelated expenses for such employees; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal all charges for gas, steam, electricity, heat, ventilation, air-conditioning, water and other utilities furnished to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building includingBuilding, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records together with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in questionon such utilities; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereofpainting of public areas; (v) expenses incurred the cost of all charges of insurance, including rent loss insurance not to exceed twelve (12) months, casualty, liability, fire with extended coverage endorsement and fidelity insurance, with regard to the Land and/or Building and the maintenance and/or operation thereof; (vi) the cost or rental of all supplies for the Land or the Building, including without limitation, cleaning supplies, light bulbs, tubes and ballasts, materials and equipment, and sales and other taxes thereon; (vii) the cost of hand tools and other movable equipment used in connection with the constructionrepair, refurbishing maintenance or expansion operation of the Building amortized over the useful life of such hand tools and movable equipment (as reasonably estimated by Landlord under generally accepted accounting principles consistently applied ("GAAP"); (viii) the cost of all charges for window and other cleaning and janitorial and security services; (ix) charges of independent contractors performing repairs or services to the Land and/or Building including water treatment, vermin extermination, facade maintenance, roof maintenance, life safety and fire alarm equipment and other costs for necessary services; (x) non-capital repairs, replacements and general maintenance to the Building; (vixi) transfer, gains, franchise, gift, inheritance, estate remodeling of the public and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, common areas of the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings Building including, without limitation, pointsrepainting, late charges replacement and repair of furnishings, fixtures, accessories, carpeting or other expenses whether similar or dissimilar to floor covering, wall and window coverings in the foregoing; public and common areas, the cost of which shall be amortized (xiwith interest at the rate of nine percent (9%) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose per annum on the unamortized balance) over the useful life of the Building and/or the land thereunder or improvements as reasonably estimated by Landlord under GAAP; provided, however Operating Expenses shall not include costs for remodeling any portion of the Property Building during the first five (including any interest in Landlord5) or any "air" or "development" rights (whether such rights are transferred to or from years of the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording chargesLease term; (xii) damages, attorneys' fees alterations and disbursements paid as a result improvements to the Building made by reason of a judgment, settlement the laws and requirements of any public authorities or arbitration award resulting from any liability the requirements of Landlord or Landlord's agents, servants or contractorsinsurance bodies; (xiii) costs associated with operating management fees paid to a third party, or, if no managing agent is employed by Landlord, Landlord shall be entitled to charge a management fee which is not in excess of three percent (3%) of base rent and such fee shall be included in the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from Operating Expenses; (xiv) the cost of any capital improvements or repairs to the Building and/or of any machinery or equipment installed in the Building amortized (with interest at the rate of nine percent (9%) per annum on the unamortized balance) over the useful life of the improvement, machinery and/or equipment as reasonably estimated by Landlord under GAAP, which is made or becomes operational, as the case may be, after the completion of the construction of the Building and which have a reasonable probability of reducing the expenses which otherwise would be included in Operating Expenses; (xv) legal, accounting and other professional fees incurred in connection with operation, maintenance and management of the Land and/or Building; (xvi) the cost of providing elevator service; (xvii) the cost of landscape and parking area maintenance and repair; (xviii) Taxes as defined in Section 4.3; and (xix) all other charges properly allocable to the operation, repair and maintenance of the Building in accordance with generally accepted accounting principles. Landlord shall use reasonable efforts to keep the Operating Expenses to a minimum while operating the Building (includingin a first class manner consistent with other comparable Class A high-rise office buildings in the Portland, without limitationOregon, forming and continuing such legal entity and tending central business district. Landlord shall use reasonable efforts to its internal accounting and legal affairs); or (xiv) costs of recover any services or work provided to a particular tenant portion of the Building, but not to all tenants of Operating Expenses from any third party who is liable for the Buildingsame other than under a lease for space in the Building and credit any such recovery against Operating Expenses.
Appears in 1 contract
Samples: Lease Agreement (Webtrends Corp)
Operating Expenses. Tenant shall pay to Landlord on the first day of each month during the Termall costs, in addition to the Base Rent, Xxxxxx's Share of all Operating Expenses in accordance with the following provisions:
(a) Operating Expenses" are all costs charges and expenses incurred by Landlord relating to the operation of the PropertyLandlord, includingwithout duplication, but not limited to, the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the constructionoperation, refurbishing or expansion maintenance and repair of the Building; (vi) transferLand and Building and by way of example only but without limiting the generality of the foregoing, gainsshall include the following: heating, franchise, gift, inheritance, estate ventilating and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creationair-conditioning costs, maintenance, modification repairs and replacements; management or negotiation administration fees and expenses (which fees shall be equal to five percent (5%) of a mortgage or superior lease the gross revenue derived by Landlord from the Land and Building); salaries, wages, medical, surgical, general welfare benefits (or in litigation with a mortgagee or ground lessorincluding group life insurance and pension payments), or other financing or refinancing payroll taxes, workmen's compensation insurance contributions and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to unemployment insurance contributions for the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose employees of the Landlord (including the Building and/or the land thereunder or any portion manager but excluding all executive personnel of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that not specifically responsible for the same is separate administration of the Land and apart Building) engaged in the operation, administration, maintenance and repair of the Land and Building; security personnel and systems; electricity (except as charged separately to tenants), fuel, water (including sewer rental) and other utilities, taxes (excluding, to avoid duplication, Real Estate Taxes and Tax on Capital), licenses and fees; insurance costs, premiums and deductible payments in respect of fire, casualty, liability, property damage, boiler, loss of rental and such other form or forms of insurance relating to the Land and Building from time to time in effect; cleaning, supervision, maintenance, operation and repair costs, expenses and charges relating to the cost of operating the Land and Building (including, without limitation, forming the elevators, the garage and continuing such legal entity parking facilities, and tending other common areas and facilities) and the equipment, systems and fixtures therein and the making of all necessary repairs, modifications, renovations or replacements therein and thereto; building and cleaning supplies; equipment rental; depreciation of machinery, equipment, facilities and systems which by their nature require periodic replacement (to its internal accounting and legal affairsbe amortised as required in the immediately following sentence of this paragraph 1.01(l)); cleaning of windows and exterior curtain walls; cleaning and maintenance of grounds (including snow removal), gardening and landscaping; garbage and waste collection and disposal; amounts payable pursuant to service contracts with independent contractors for maintenance, elevators, cleaning, refuse removal, security operations and repairs; expenditures relating to energy conservation measures or (xivprograms; legal and accounting fees and expenses incurred with respect to the operation of the Land and Building. Without limiting the generality of the foregoing, Operating Expenses includes all capital expenditures relating to the foregoing which in accordance with generally accepted accounting principles, shall be amortised on a straight-line basis over the useful life of the expenditure in question, it being understood that only the amortised portion plus interest on the unamortised portion of the capital expenditure, at the lending rate actually charged or chargeable to Landlord from time to time by its lenders, will be included in Operating Expenses for each year. Operating Expenses shall not include:
i) costs or expenses attributable to defects in the original design or construction of the Building or of remedying construction inadequacies;
ii) emphyteutic or other rent payable by Landlord under any emphyteutic lease or other lease of the Building and the Land;
iii) costs of any services or work provided to a particular tenant advertising in respect of the Building, but not ;
iv) charges for special services rendered or special materials furnished to all other tenants of the Building in excess of those generally rendered or furnished to such tenants in general;
v) costs and expenses incurred to alter the Building for the special benefit of particular tenants as opposed to the benefit of the tenants of the Building in general and costs and expenses of installing partitions or other improvements for the premises of particular tenants;
vi) any amount paid by Landlord as a fine or penalty as a result of a breach of law by Landlord with respect to the Building or the Land (provided such breach was not caused by or contributed to by Tenant) or in satisfaction of any judgment or pursuant to any out of court settlement;
vii) the cost of any renovations, improvements or betterments to the original structure of the Building which are optional to Landlord;
viii) any depreciation of the Building or on any original equipment or fixtures thereof;
ix) costs incurred to enforce the leases of tenants including Tenant;
x) costs of obtaining any particular products or services in excess of what they would have been had the supplier thereof dealt with Landlord at arm's length;
xi) the amount of any sales tax, goods and services tax, value added tax or other similar tax paid or payable by Landlord for the purchase of goods and services included in Operating Expenses which may be available to and claimed by Landlord as a credit in determining Landlord's net tax liability;
xii) amounts payable by Landlord on account of financing or refinancing of the Building and Land, including payments of principal and interest in respect of such financing;
xiii) any cost or expense incurred in connection with the leasing of space in the Building to any particular tenant, including brokers fees, commissions, legal fees and expenses, marketing costs, costs of remodelling space, any tenant inducements, rent-free periods and other leasing incentives, the cost of lease take-overs, the cost of market studies and any other fees and expenses of a similar nature;
xiv) any reserve for bad debt or other loss of rentals;
xv) the cost of acquisition of sculptures, paintings or other works of art; and
xvi) under reserve of Tenant's obligation to pay its contributions to Tax on Capital as defined in paragraph 1.01(t), Landlord's capital gains taxes, corporate income taxes, and profits or excess profits taxes. There shall be deducted from Operating Expenses the following items which would be included therein were it not for the inclusion of this sentence in this paragraph 1.01(I):
xvii) amounts recovered from tenants of the Building for which they are responsible as a result of any act, omission, default or negligence on their part;
xviii) amounts recovered as insurance proceeds or which would have been recovered as such by Landlord had it not failed to comply with its insurance obligations;
xix) recoveries by Landlord under warranties or guarantees relating to the construction of the Building; and
xx) revenues paid to Landlord in consideration of the use of the common areas and facilities contemplated in Clause 24.03, to the extent that such revenues do not exceed the aggregate of the costs, charges and expenses incurred by Landlord in connection with such common areas and facilities.
Appears in 1 contract
Operating Expenses. During the term of this Lease, and any extensions and renewals thereof, Landlord shall operate, manage, repair and maintain, in a first class manner consistent with other similar buildings in the Gaithersburg and Germantown, Maryland areas, the Building, the Land and the Common Areas. Tenant shall shall, during the entire term of this Lease, pay to Landlord on the first day of each month during the Term, in addition to the Base as Additional Rent, Xxxxxx's the Tenant’s Pro Rata Share of all Operating Expenses in accordance with the following provisions:
(a) Operating Expenses" are all costs and expenses incurred by Landlord relating in operating, managing, repairing and maintaining the Building, the Land and the Common Areas, collectively referred to as “Operating Expenses”. Said Operating Expenses shall include, but not be limited to, costs and expenses for: (i) removal of snow, ice, trash, rubbish and debris from the Common Areas; (ii) furnishing and maintaining electric service (and elevator service, if any) to the operation Building and the lighting of the PropertyCommon Areas; (iii) charges for furnishing and maintaining water and sewer service or other utility services to the Building, the Land and the Common Areas; (iv) trimming and grass cutting and all other maintenance and upkeep of the grounds, green areas and landscaping in the Common Areas; (v) maintaining, monitoring and testing the sprinkler system and sprinkler alarm system in the Building; (vi) maintaining, striping, cleaning and repairing the parking areas, driveways and sidewalks; (vii) trash pick-up and removal by a licensed contractor from containers located in a common enclosure(s) for the mutual use of all tenants in the Building, as well as the cost of maintaining and repairing said trash container enclosure(s); (viii) reasonable property management fees (not to exceed three percent (3%) of grossed-up rentals in the Building, where “grossed up rentals” refers to the average basic annual rental in the Building plus Operating Expenses calculated without including the management fee); (ix) maintenance and repairs to the exterior of Building, including, but without limitation, exterior windows, doors, hardware, locks, lighting and lighting fixtures; (x) premiums incurred by Landlord, if any, for hazard, liability, workmen’s compensation or similar insurance on contractors providing services to the Building, Land or Common Areas; (xi) Impositions (as defined in Section 8); (xii) Insurance Premiums (as defined in Section (8); and (xiii) any other costs and maintenance expenses for the Building, Land, Common Areas and all appurtenances thereto as may be deemed reasonably necessary by Landlord which under generally accepted accounting principles (“GAAP”) properly constitute operating or maintenance costs and expenses attributable thereto. Operating Expenses shall not limited to, include any of the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition cost of the original construction of the Building or any additions or expansions to the Building, Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directoriesAreas or other items which under GAAP are properly classified as capital expenditures; (ii) water, gas, electricity, telephone and other utilities servicing any repairs or work performed to any portion of the Common AreasBuilding intended to be occupied by individual tenants including tenant allowances and/or concessions; (iii) trash disposalthe cost of correcting any defects in the original construction of the Building, janitorial services, snow removal, and security servicesCommon Areas and/or Demised Premises (as tendered to Tenant); (iv) Real Property Taxesany reserves for future expenditures not yet incurred; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this leaseground lease rental; (vi) monthly amortization of capital improvements costs incurred by Landlord for repair or restoration to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained extent that Landlord is reimbursed by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% insurance or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, condemnation proceeds or that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgageewarranty; (vii) costs for which Landlord is reimbursed through a condemnation awardattorneys’ fees, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any leasing commissions and other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with negotiations or disputes with present or prospective tenants or other occupants of, or persons, firms or entities with respect to, the creationBuilding; (viii) costs incurred by Landlord due to the negligence or misconduct of Landlord or its agents, maintenancecontractors, modification licensees and employees, or negotiation the violation by Landlord of a the terms and conditions of this Lease; (ix) interest, principal points and fees on debts or amortization on any mortgage or superior lease (mortgages or in litigation with a mortgagee or ground lessor), or any other financing or refinancing and debt instrument encumbering all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) Building or any "air" or "development" rights (whether such rights are transferred to or from the Land on which the Building is located; (x) advertising and promotional expenditures in connection with leasing the Building, and costs of the installation of signs identifying the owner and/or manager of the land thereunder)Building; (xi) any costs relating to hazardous materials, including (without limitation) brokerage commissions, attorney's fees asbestos and disbursements, transfer and gains taxes and recording chargesthe like not resulting from actions of Tenant; (xii) damagesany charges for depreciation of the Building, attorneys' fees or equipment (except costs of and disbursements paid as a result depreciation of a judgment, settlement equipment installed or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractorsimprovements made to reduce Operating Expenses); (xiii) any charge for Landlord’s income taxes, excess profit taxes, or franchise taxes; (xiv) any costs associated in connection with operating the business change of ownership; (xv) any costs, fines etc. incurred due to late payment of Operating Expenses; (xvi) Landlord’s general overhead and administrative expenses; (xvii) increased Insurance Premiums caused by Landlord’s or any other tenant’s acts; (xviii) costs, fines and penalties incurred to correct violations by Landlord of any law, rule, order or regulation which was in effect as of the legal Commencement Date; (xix) wages, bonuses and other compensation of executive employees; (xx) increased Insurance Premiums or Impositions assessed specifically to any tenant in the Building; (xxi) cost of any work or services performed for any facility other than the Building; (xxii) any cost paid to a person, firm, corporation or other entity related to Landlord, which constitutes is in excess of the amount which would have been paid in the absence of such relationship; (xxiii) any cost of painting or decorating of any interior parts of the Building other than Common Areas; (xxiv) cost of acquiring sculptures, paintings and other objects of art; (xxv) expenses incurred by Landlord solely in its capacity as a partnership or other business entity; (xxvi) costs and expenses (other than management fees) paid to entities under common control with Landlord for services on or to the Building, but only to the extent that the same is separate and apart from the cost of operating such services exceeds normal rates being paid for such services to unaffiliated providers of such services by owners of other similar buildings in the Building area; and (includingxxvii) cost of repairs, without limitation, forming alterations and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant replacements caused by the exercise of the Building, but rights of eminent domain. There shall not be duplication in charges to all tenants Tenant by reason of the Buildingprovision setting forth Tenant’s obligation to reimburse Landlord for Operating Expenses and any other provision in this Lease.
Appears in 1 contract
Operating Expenses. Tenant shall pay to Landlord on the first day of each month during the Term, in addition to the Base Rent, Xxxxxx's Share of all Operating Expenses in accordance with the following provisions:
(a) Operating Expenses" are all costs incurred by Landlord relating to the operation of the Property, including, but not limited to, the following: (i) the [Illegible] operation, repair, maintenance and replacement in neat, clean, good order and condition repair of the Common AreasBuilding and Property and of the heating, including parking areasventilation and air conditioning (“HVAC”), loading plumbing, electrical, utility and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums safety systems for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and Building, including without limitation: compliance with Landlord’s obligations under Section 10.03(c) of this Lease; gardening and landscaping; snow removal; utility, water and sewage services; maintenance of signs (other than tenants’ signs); supplies, materials and equipment purchased or rented, total wage and salary costs paid to, and all contract payments made on account of, all persons at or below the level of site or building manager to the extent engaged in the operation, maintenance, security, cleaning and repair of the Premises, including Social Security, old age and unemployment taxes and so-called “fringe benefits”; services furnished to tenants of the Building (the monthly amortization at Landlord’s expense and maintenance and repair of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost and services provided to or on behalf of the capital improvement Building performed by Landlord's estimate of ’s employees or by other persons undo contract with Landlord; utilities consumed and expenses incurred in the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); operation, maintenance and (vii) maintenance repair of the Building including, but not limited towithout limitation, oil, gas, electricity (other than electricity to tenants in their demised promises if Tenant is directly responsible for payment under this Lease on account of electricity consumed by Tenant), water, sewer and snow removal; costs incurred by Landlord to comply with the terms and conditions of the PTDM Agreement excqit to the extent excluded pursuant to Section 8.03; workers’ compensation insurance and property and liability insurance; personal property taxes; rental or lease payments paid by Landlord for rented or leased personal property used in the operation or maintenance of the Common Areas or Building; fees for required licenses and permits; routine maintenance and repair of roof membrane, flashings, gutters, downspouts, roof drains, skylights and waterproofing; maintenance and repair of loading docks, parking areas and paving (including sweeping, striping, repairing, resurfacing, and repaving); general maintenance and repair, painting; lighting; cleaning; refuse removal; security and similar items; reserves for roof replacement, caulking exterior painting and repair other appropriate reserves; and replacement property management fees. Landlord may use third parties or affiliates to perform any of Building componentsthese services, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the cost thereof to the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as does not exceed the Base Rent is due Tenant's Share market costs of estimated such services rendered by unaffiliated third parties shall be included in Operating Expenses in the amount set forth in Paragraph 1.6 of this leaseExpenses. Landlord shall deliver to Tenant within 90 days after the expiration make a reasonable allocation of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed Operating Expenses incurred jointly for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any other property. In addition, if Landlord from time to time repairs or replaces any existing improvements or equipment to the Building (including without limitation energy conservation improvements or other improvements), then the cost of such items that are treated as capital expenses pursuant to generally accepted accounting principles shall be amortized over their reasonable life, together with an actual or imputed interest rate (at the level then being charged by institutional first mortgagees for new permanent first mortgage loans on buildings in the area which are similar to the Building) and included in Operating Expenses. [Illegible] the cost of repairs or other work incurred by reason of fire, windstorm or other casualty to the extent Landlord is reimbursed for such costs by insurance or would have been reimbursed if Landlord maintained insurance in the manner required by this Lease, except for reasonable deductibles paid under insurance policies maintained by Landlord; costs associated with the operation of the business of Landlord and/or the sale and/or financing of the Building, as distinguished from the cost of Building operations, maintenance and repair; costs of disputes between Landlord and its employees, tenants or contractors; any ground or underlying lease rental; bad debt expenses and interest, principal, points and fees on debts or amortization on any mortgage or other debt instrument encumbering the Building or the Property; costs of any new improvements or equipment added to the Building (including without limitation energy conservation improvements or other improvements) that under generally accepted accounting principles are properly classified as capital expenditures except to the extent such items (a) will, in Landlord’s reasonable estimate, result in a reduction in Operating Expenses (in which case Landlord shall only include each year in Operating Expenses the amount of Landlord’s reasonable estimate of such annual reduction in Operating Expenses, but may recover the aggregate of such anticipated annual savings over the course of 12 months in equal installments, rather than over the useful life of such capital item) or (b) are required by changes in law occurring after the Delivery Date; provided, however, if Landlord leases any items of new capital equipment, then the rentals and other costs paid pursuant to such leasing shall be included in Operating Expenses for the expense year in which they were incurred; costs incurred by Landlord to the extent that Landlord is reimbursed by insurance proceeds or is otherwise reimbursed by third parties; depreciation, interest payments, and amortization, except on equipment, materials, tools, supplies and vendor-type equipment purchased by Landlord to enable Landlord to supply services Landlord might otherwise contract for with a third party where such depreciation, amortization and interest payment would otherwise have been included in the charge for such third party’s services, all as a result thereofdetermined in accordance with generally accepted accounting principles, consistently applied, and when depreciation or amortization is permitted or required, the item shall be amortized over its reasonably anticipated useful life; advertising and promotional expenditures, and costs of acquisition and maintenance of signs in or on the Building identifying the owner of the Building or tenants; marketing costs, including leasing commissions, attorneys’ fees (v) expenses incurred in connection with the constructionnegotiation and preparation of letters of intent, refurbishing or expansion of the Building; (vi) transferleases, gainssubleases and/or assignments), franchisespace planning costs, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creationlease, maintenance, modification sublease and/or assignment negotiations and transactions with present or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), prospective tenants or other financing or refinancing occupants of the Building; costs, including permit, license and all fees payable pursuant to such mortgagesinspection costs, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar incurred with respect to the foregoing; (xi) expenses installation of tenants’ or other occupants’ improvements or incurred to lease, license, sell, syndicate, hypothecate, transfer in renovating or otherwise dispose improving, decorating, painting or redecorating vacant space for tenants or other occupants of the Building; expenses in connection with services or other benefits that are not offered to Tenant or for which Tenant is charged for directly; costs incurred by Landlord due to the violation by Landlord or any tenant of terms and conditions of any lease of space in the Building; management fees paid or charged by Landlord in connection with the management of the Building and/or to the land thereunder or any portion extent such management fee is in excess of the Property (including management fee customarily paid or charged by landlords of comparable buildings in the vicinity of the Building; salaries and other benefits paid to the employees of Landlord to the extent customarily included in or covered by a management fee, provided that in no event shall Operating Expenses include salaries and/or benefits attributable to personnel above the level of site or building manager, rent for any interest office space occupied by Building management personnel to the extent the size of such space exceeds 750 rentable square feet or the rental rate for such office space exceeds the fair market rental value of office space occupied by management personnel of comparable buildings in Landlord) the vicinity of the Building; amounts paid to Landlord or any "air" to subsidiaries or "development" rights (whether such rights are transferred to or from affiliates of Landlord for goods and/or services in the Building to the extent the same exceeds the costs of such goods and/or services rendered by unaffiliated third parties on a competitive basis; Landlord’s general corporate overhead and general and administrative expenses; services provided, taxes attributable to, and costs incurred in connection with the land thereunder)operation of any retail, including (without limitation) brokerage commissionsrestaurant and garage operations for the Building, attorney's fees and disbursementsany replacement garages or parking facilities; costs incurred in connection with upgrading the Building to comply with laws, transfer rules, regulations and gains taxes codes in effect prior to the Delivery Date; all assessments and recording chargespremiums that are not specifically charged to Tenant because of what Tenant has done, which can be paid by Landlord in installments, shall be paid by Landlord and not included as Operating Expenses except in the year in which the assessment or premium installment is actually paid; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement costs arising from latent defects in the Base Building Work or arbitration award resulting from any liability of Landlord Finish Work or Landlord's agents, servants or contractorsrepair thereof; (xiii) costs associated with operating the operation of the business of the legal entity which constitutes Landlord to the extent that as the same is separate and apart are distinguished from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant operation of the Building, but not to all including accounting and legal matters, costs of defending any lawsuits with any mortgage (except as the actions of Tenant may be in issue); costs of selling, syndicating, financing, mortgaging or hypothecating any of Landlord’s interest in the Building; costs incurred in connection with any disputes between Landlord and its employees, between Landlord and Building management, or between Landlord and other tenants or occupants; costs arising from the gross negligence or willful misconduct of Landlord or other tenants or occupants of the Building or their respective agents, employees, licensees, vendors, contracted or providers of materials or services; and costs for sculpture, paintings, or other objects of art exceeding those costs which are reasonably and customarily incurred by landlords of similar buildings in the same geographic area of the Building. Tenant shall pay Tenant’s Pro Rata Share of Operating Expenses in accordance with Section 4.02.
Appears in 1 contract
Operating Expenses. Tenant shall pay to Landlord Beginning on the first day of each month during Commencement Date and continuing throughout the Term, Xxxxxx agrees to pay as “Additional Rent” its Proportionate Share of Operating Expenses (as defined below in addition this Section 2.2.1) for the building of which the Premises are a part (the “Building”) and any common areas associated therewith including, without limitation, paving and parking areas, roads, roofs, alleys, and driveways, landscaping, utility lines, and exterior lighting, electrical systems and other mechanical and Building systems (“Common Areas”) to the Base Rent, Xxxxxx's Share of all Operating Expenses in accordance with the following provisions:
(a) extent that such maintenance and costs are chargeable to Tenant under this Lease. The term “Operating Expenses" are ” means, except as otherwise expressly set forth in this Lease, all costs and expenses incurred by Landlord relating with respect to the operation of the Property, including, but not limited to, the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance operation of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall excludewithout limitation: (i) bad debt losses, rent losses or reserves for bad debt or rent lossesintentionally omitted; (ii) insurance maintained by Landlord pursuant to Section 12; (iii) utilities (except as separately metered and paid directly to the utility by Tenant); (iv) maintenance; (v) maintenance of Common Areas; of the Building and all associated systems serving the Building; (v) intentionally omitted; (vi) repair of any portion of the Building or Common Areas; (vii) deductibles on insurance loss; (viii) security services, if any; (ix) trash collection and sweeping; (x) snow removal; and (xi) the cost of any electricity capital improvements that are made to the Building or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing Parties’ express prior written agreement or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only approval as to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming with respect to the nature and continuing scope of the capital improvements, any and all plans related thereto, the cost thereof and any and all contractors to be used in connection with the performance thereof and any modification or change to any of the foregoing prior to completion of the applicable improvements). For clarity, Tenant has no obligation whatsoever for any capital improvements that are made to the Building, Common Areas, Land and/or the Project by Landlord other than as described in the immediately preceding clause (xi) or otherwise made in accordance with this Section 2.2.1. Without limiting the foregoing, if the Parties are unable to agree on capital improvements, as, when and to what extent they are required, then the Parties shall engage a licensed third-party professional (in the area of expertise required for the subject capital improvement(s)) to determine commercially reasonable maintenance, repair or replacement steps under the circumstances. For the purposes of this Lease, the term “Proportionate Share” means the percentage determined by dividing the rentable square footage of the Premises by the total rentable square footage of the Building. Landlord and Tenant agree that as of the Commencement Date, Xxxxxx’s Proportionate Share shall be one hundred percent (100%). Landlord shall equitably adjust Tenant’s Proportionate Share in the event the Premises or Building are expanded or reduced. Operating Expenses shall be calculated in conformity with generally accepted accounting principles, applied on a consistent basis throughout the Term, and in accordance with industry standards such legal entity as those published by the Building Owners and tending to its internal accounting and legal affairs); or (xiv) Managers Association. The costs of any services or work provided allowable expenditure which under generally accepted accounting principles is properly classified as a capital expenditure shall be amortized on a straight-line basis over a period equal to a particular tenant the lesser of the Buildinguseful life thereof for federal income tax purposes or fifteen (15) years and, but if paid by Landlord and not Tenant, shall be passed-through to all tenants Tenant on that basis (provided that, if Tenant agrees to pay for such capital expenditure up front or on an alternative payment schedule, then any payment made by Tenant attributable to any period of time after the BuildingTerm expires shall be paid or reimbursed by Landlord to Tenant), except to the extent otherwise expressly agreed by Landlord and Tenant prior to incurring any such capital expenditure.
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Operating Expenses. Tenant shall pay to Landlord Throughout the Term of this Lease, commencing on the first day of each month during the TermCommencement Date, in addition Tenant agrees to the Base Rent, Xxxxxx's Share of all Operating Expenses pay Landlord as additional rent in accordance with the following provisions:
(a) Operating Expenses" are all costs incurred by Landlord relating to the operation of the Property, including, but not limited to, the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 terms of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building includingSection 4, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate Expenses. As used in this Lease, the term "Operating Expenses" shall consist of such all costs and expenses reasonably incurred by Landlord for the year.
(d) In ownership, operation, maintenance, repair and replacement of the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statementProject. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: include the following costs by way of illustration but not limitation:
(i) bad debt losses, rent losses or reserves Real Property Taxes (but excluding any increases to Real Property Taxes resulting from any improvements to the Project constructed for bad debt or rent lossesthe sole benefit of another tenant); (ii) any and all assessments under any covenants, conditions and restrictions affecting the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereonProject; (iii) amounts paid to affiliates of Landlord in excess water, sewer and other utility charges on account of the competitive costs of the item in questionCommon Area; (iv) costs of insurance obtained by Landlord pursuant to Section 21 of this Lease (excluding any earthquake, flood, terrorism, rental loss in excess of six (6) months, business interruption, or any other extraordinary insurance coverage, except to the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereofextent that such insurance is reasonably required by Landlord's lender); (v) expenses incurred in connection with waste disposal and janitorial services for the construction, refurbishing or expansion of the BuildingCommon Area; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgageesecurity; (vii) labor; (viii) management fees and costs, including, without limitation: (A) wages, salaries, pension payments, fringe benefits, uniforms and dry-cleaning thereof (and payroll taxes, insurance and similar charges) of property management employees, (B) management office rental, supplies, equipment and related operating expenses and (C) management/administrative fees, provided that the sum of all such management fees and costs for under this item (viii) may not exceed 3% of Basic Rent from the Project; (ix) supplies, materials, equipment and tools including rental of personal property; (x) repair and maintenance of all common portions of the buildings within the Project, including the plumbing, heating, ventilating, air-conditioning and electrical systems installed or furnished by Landlord as well as the HVAC equipment installed as part of the Tenant Improvements; (xi) maintenance, sweeping, repairs, resurfacing, and upkeep of all parking and other Common Areas; (xii) amortization on a straight line basis over the useful life (together with interest at the annual rate of six percent on the unamortized balance) of all capitalized expenditures which Landlord is reimbursed through are: (A) reasonably intended to produce a condemnation award, the proceeds of insurance reduction in operating charges or otherwise, energy consumption (but only to the extent of any such reimbursementreduction); (viiiB) ground rentrequired under any governmental law or regulation that was not applicable to the Project as of the date of this Lease; or (C) for replacement or restoration of any Project equipment and/or improvements needed to operate and/or maintain the Project at the same quality levels as prior to the replacement or restoration; (xiii) gardening and landscaping; (xiv) maintenance of signs (other than signs of tenants of the Project); and (xv) personal property taxes levied on or attributable to Landlord’s personal property used exclusively in connection with the Common Areas (or, if anynot used exclusively, then a prorata share of such taxes based upon the ratio that at the time such personal property is devoted to the Common Area bears to the total amount of time such personal property is used). Notwithstanding the forgoing, the amount of any charges for any services provided by affiliates, related or designated parties of Landlord that are included in Operating Expenses, must be reasonable, customary and competitive with charges for similar services of independent contractors in the area where the Project is located. Notwithstanding any implication to the contrary, Operating Expenses will not include any of the following: (a) legal fees, brokerage commissions, advertising costs or related expenses in connection with the sale, financing or development of any portion of the Project or the leasing of other payments under any superior leasepremises within the Project; (ix) depreciation, amortization and other, similar noncash items; (xb) costs and expenses incurred in connection with damage or repairs that are covered under any insurance policy carried or required to be carried by Landlord in connection with the creation, maintenance, modification Project; (c) expenses for repair or negotiation of a mortgage replacement paid by condemnation awards; (d) costs associated with damage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar repairs to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer Project necessitated by the negligence or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability misconduct of Landlord or Landlord's ’s employees, agents, servants invitees, or contractors; (xiiie) reserves or any kind; (f) salaries or overhead expenses of Landlord or any of its affiliates (other than the management fees and costs permitted in clause (viii) above); (g) any principal, interest, loan fees, or other carrying costs related to any mortgage or deed of trust encumbering the Project or Premises and all rental and other payment due under any ground or underlying lease; (h) legal fees, accountant fees and other expenses incurred in disputes regarding or associated with the Project, including enforcement or defense of Landlord’s title to or interest in the Project or any part thereof or with respect to disputes with other tenants of the Project; (i) any fines, late charges, penalties or other similar costs incurred due to violations by Landlord of any governmental rule or authority, this Lease or any other lease, or due to Landlord’s negligence or misconduct; (j) costs associated incurred to comply with operating the business of the legal entity which constitutes Landlord laws relating to Hazardous Materials or to remove, remedy, contain, or treat such Hazardous Materials, to the extent that such Hazardous Materials are (i) in existence as of the same is separate and apart from the cost Commencement Date in violation of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); then existing Environmental Law or (xivii) costs introduced after the Commencement Date by Landlord or Landlord's employees, agents, contractors, invitees or other tenants in violation of any services or work provided to a particular tenant Environmental Law in effect as of the Building, but not to all tenants date of introduction and (k) the BuildingLandlord’s Work.
Appears in 1 contract
Operating Expenses. Landlord shall promptly perform all maintenance and repairs upon the common areas, including, without limitation, all landscaped areas, parking areas and structures, paved areas, sidewalks and drives at or serving the Building or the Property, except to the extent expressly made the responsibility of Tenant under this Lease Agreement. During the Term of this Lease Agreement and any renewals or extensions thereof, Tenant shall pay to Landlord on its pro rata share of the first day of each month during the Term, in addition to the Base Rent, Xxxxxx's Share of all Operating Expenses incurred by Landlord in accordance with owning, operating, managing, maintaining, repairing, replacing and insuring the following provisions:
Building, the Parking Areas and other common areas of the Building, and the parcel(s) of land on which they are located. The term “Operating Expenses” herein shall include, but not be limited to: (a) all payments by Landlord for maintenance, operation, repair, replacement and care of: (i) all heating, lighting, fire protection and plumbing fixtures in or serving the Parking Areas and other common areas and (ii) all equipment, systems, roofs, exterior glass, landscaped areas, signs, the Building’s exteriors and parking lots (including seal coating); (b) all payments by Landlord for electricity, water, sewer and other utilities not separately metered or sub-metered, costs allocated to the Building or the parcels on which the Building is located pursuant to a reciprocal easement agreement or declaration (or similar document), snow removal for the Parking Areas, refuse removal, painting, insurance premiums and deductibles, management fees up to 3% of gross annual revenues for the Premises, wages and fringe benefits of personnel employed for the aforesaid work and proportionate costs of equipment purchased and used for such purposes; and (c) the amortization of capital expenditures or investments (but not improvements or expansions), all as determined on a commercially reasonable basis by Landlord using an interest rate of no greater than 8% and amortized over the useful life of the capital improvement, replacement or investment as reasonably determined by Landlord. The term “Operating Expenses" are all costs incurred by Landlord relating ” shall not be deemed to the operation include any of the Property, including, but not limited to, the following: (i) the operationleasing costs and commissions, repaircosts of tenant disputes, maintenance leasehold improvements and replacement other costs of preparing space for tenants, other tenant incentives, and expenses incurred in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directoriesnegotiating or enforcing leases; (ii) waterinterest, gas, electricity, telephone and principal or any other utilities servicing payments made to the Common Areasmortgagee under any mortgage or rental or any other payments made to the ground lessor under any ground lease; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation awardreimbursed, the including costs covered by proceeds of insurance insurance, condemnation awards or otherwisecourt judgments, but only amounts specially billed to the extent and payable by an individual tenant and costs covered by any manufacturer’s, contractor’s or other warranty; (iv) fees and other costs for professional services provided by attorneys, space planners and architects; (v) marketing and advertising expenses; (vi) any costs of any such reimbursementcapital improvements or expansions (as opposed to capital repairs or replacements, or maintenance of items of a capital nature); (vii) political or charitable contributions; (viii) ground rentcosts incurred in connection with the mortgaging, if any, selling or changing of ownership of a building or any other payments under any superior leasepart of the associated real property, including, without limitation, brokerage commissions, consultants’, attorneys’ and accountants’ fees, closing costs, title insurance premiums, transfer taxes and interest charges; (ix) depreciation, amortization and other, similar noncash itemsReal Estate Taxes (which are covered in Article 6(a)(i)) or any costs expressly excluded from the definition of Real Estate Taxes; (x) costs and expenses incurred in connection with the creationoriginal construction of the Building or any other part of the Property and costs of repairing, maintenancereplacing or otherwise correcting defects or deficiencies in the design, modification construction or negotiation components of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoingimprovements comprising the Property; (xi) expenses costs incurred to leasein connection with the investigation, licenseremoval, sell, syndicate, hypothecate, transfer remediation or otherwise dispose clean-up of the Building and/or the land thereunder or any portion of Hazardous Materials from the Property or Building (including the fees of any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunderenvironmental consultants), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damagesLandlord’s general corporate overhead and general and administrative expenses or wages, attorneys' fees salaries, fees, and disbursements fringe benefits paid as a result of a judgment, settlement to administrative or arbitration award resulting from any liability executive personnel or officers or partners of Landlord not having direct day to day responsibility for operating or Landlord's agents, servants or contractorsproviding services to the Building; (xiii) costs associated any “tap fees” or one-time lump sum sewer or water connection fees for the Property payable in connection with operating the business original construction of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs)Property; or (xiv) costs incurred for any item to the extent covered by a manufacturer’s, materialman’s, vendor’s or contractor’s warranty and paid by such manufacturer, materialman, vendor or contractor (Landlord shall pursue a breach of warranty claim for items of Landlord’s Work covered by a warranty); (xv) development fees, impact fees and similar charges; and (xvi) deductibles and retentions on any services or work provided to a particular tenant insurance maintained by Landlord that are in excess of the Buildingcommercially reasonable deductibles (i.e., but self-insurance shall not to all tenants of the Buildingbe an Operating Expense).
Appears in 1 contract
Samples: Lease Agreement (SomaLogic, Inc.)
Operating Expenses. Tenant As used in this Section 4 4, the term “Building’s Share” shall pay to Landlord mean a fraction, the numerator of which is the rentable square footage of the Building, and the denominator of which is the rentable square footage of the Project Throughout the Term of this Lease, commencing on the first day of each month during the TermCommencement Date, and in addition to the Base RentTenant’s obligations set forth in Section 3 4 hereof, Xxxxxx's Share of all Operating Expenses Tenant agrees to pay Landlord, as additional rent in accordance with the following provisions:
(a) terms of this Section 4, the Building’s Share of Operating Expenses" are all costs incurred by Landlord relating to Expenses for the operation operation, maintenance, repair, and replacement of the Property, Project and the Common Area including, but not limited to, the followingwithout limitation: (i) the operationany form of real property tax, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building assessment (including, without limitation, forming change in ownership taxes and continuing such legal entity assessments), license fee, license tax, business license fee, commercial rental tax, levy, charge, improvement bond or similar imposition of any kind or nature imposed by any authority having the direct power to tax, including any city, county, state or federal government, or any school, agricultural, lighting, drainage or other improvement or special assessment district thereof, (ii) any and tending all assessments under any covenants, conditions and restrictions affecting the Project, (iii) water, sewer and other utility charges for the Common Area, (iv) costs of commercially reasonable insurance obtained by landlord, (v) waste disposal and janitorial services, (vi) security (if any), (vii) labor, (viii) commercially reasonable management costs including, without limitation (A) wages and salaries (and payroll taxes and similar charges) of property management employees for the Common Area, (B) management office rental, supplies, equipment and related operating expenses for the Common Area, (C) commercially reasonable management/administrative fees, and (D) association fees and assessments, (ix) supplies, materials, equipment and tools including rental of personal property, (x) repair and maintenance of the structural portions of the buildings within the Project, including the plumbing, heating, ventilating, air-conditioning and electrical systems installed or furnished by Landlord; (xi) maintenance, sweeping, repairs, resurfacing, and upkeep of all parting and other Common Areas; (xii) amortization on a straight line basis over the useful life together with interest at the Interest Rate on the unamortized balance of all capitalized expenditures to its internal accounting the Project, (xiii) gardening and legal affairs); or landscaping, (xiv) costs maintenance of any services or work provided to a particular tenant signs (other than signs of the Building, but not to all tenants of the BuildingProject), (xv) personal property taxes levied on or attributable to personal property used in connection with the Common Areas; (xvi) reasonable accounting, audit, verification, legal and other consulting fees, and (xvii) any other costs and expenses of repairs, maintenance, painting, fighting, cleaning, and similar items, including commercially reasonable reserves. Notwithstanding anything above to the contrary, the term “Operating Expenses” shall not include costs to correct latent defects in the base, shell and core of the Premises to the extent not caused by Tenant or Tenant’s Improvements to the Premises.
Appears in 1 contract
Samples: Single Tenant Industrial Lease (Imcor Pharmaceutical Co)
Operating Expenses. Tenant shall pay to Landlord on in each year or part year of the first day of each month during the Term, in addition to the Base Rent, Xxxxxx's Term a Proportionate Share of all Operating Expenses in accordance with the following provisions:
(a) Operating Expenses" are all costs incurred amount by Landlord relating to the operation of the Property, including, but not limited to, the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of which the Operating Expenses shall have been incurred solely (defined below) for each such year exceed the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Base Operating Expenses be borne solely by Xxxxxx(defined below). The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual “Operating Expenses” shall mean all expenses, Tenant shall have the right, not later than 180 days following the receipt costs and disbursements of any such statement, to review Xxxxxxxx's books every kind and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses nature incurred in connection with the constructionownership, refurbishing or expansion management, maintenance, repair and operation of the Building and Property, including but not limited to the following: (1) cost of wages and salaries of all employees engaged in the operation and maintenance of the Building and surrounding grounds and common areas, including but not limited to payroll taxes, insurance and benefits (all adjusted and prorated equitably with respect to employees which also provide services to other buildings); (2) cost of all supplies and materials used in the operation, maintenance and repair of the Building and all other portions of the Property; (3) cost of all utilities (including surcharges but excluding late fees), including but not limited to water, sewer, electricity and gas for both the rentable space and the common areas of the Building, and including all costs of repairing, replacing, improving and altering utility systems, lines and equipment at the Premises, Building and Property; (4) costs incurred under all maintenance and service agreements for the Building, including but not limited to access control, energy management services, window cleaning, elevator maintenance, janitorial service and landscaping; (5) cost of insurance relating to all of such property, including but not limited to the cost of casualty and liability insurance; (6) cost of non-capital repairs and general maintenance to the Building; (vi7) transferall property management fees and expenses or, gainsin lieu thereof (at the discretion of Landlord), franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgageean administrative charge of 10% of all other Operating Expenses; (vii8) cost of audit and accounting services; (9) the costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance any improvements required or otherwise, but only made necessary by law or changes in law; (10) cost of any capital improvements made to the extent Building that, in Landlord’s reasonable judgment, will reduce other operating expenses or increase energy efficiency, provided such costs are amortized in accordance with generally accepted accounting principles (“GAAP”) at such rates as may have been paid by Landlord on funds borrowed for the purpose of constructing such capital improvements or, if no such funds were borrowed, at such reasonable rates as are not in conflict with GAAP; and (11) cost of any such reimbursement; licenses or permits required by any public authority. For purposes of this provision, Operating Expenses shall not include (viiia) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating capital improvements (except as expressly provided above), (b) the Building costs of tenant improvements within tenant spaces, (includingc) ground rent or debt service, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xivd) costs of depreciation. The “Base Operating Expenses” shall be the Operating Expenses allocable to the calendar year 2005. Tenant shall not be entitled to any services credit or work provided to a particular tenant of rebate in the Building, but not to all tenants of event Operating Expenses in any one year during the BuildingTerm are lower than the Base Operating Expenses.
Appears in 1 contract
Samples: Office Lease Agreement (Republic Airways Holdings Inc)
Operating Expenses. Tenant shall pay to Landlord Throughout the Term of this Lease, commencing on the first day of each month during the TermCommencement Date, in addition Tenant agrees to the Base Rent, Xxxxxx's Share of all Operating Expenses pay Landlord as additional rent in accordance with the following provisions:
(a) Operating Expenses" are all costs incurred by Landlord relating to the operation of the Property, including, but not limited to, the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 terms of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building includingParagraph 6, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such for the taxes and insurance for the Project and all costs and expenses for the year.
(d) In operation, maintenance, repair, and replacement of the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating ExpensesProject including, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall excludewithout limitation: (i) bad debt lossesany form of real property tax assessment, rent losses license fee, license tax, business license fee, commercial rental tax, levy, charge, improvement bond or reserves for bad debt similar imposition of any kind or rent lossesnature imposed by any authority having the direct power to tax, including any city, county, state or federal government, or any school, agricultural, lighting, drainage or other improvement or special assessment district thereof; (ii) any and all assessments under any covenants, conditions and restrictions affecting the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereonProject; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in questionwater, sewer and other utility charges; (iv) costs of insurance obtained by Landlord pursuant to Paragraph 19 of the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereofLease; (v) waste disposal and janitorial services; (vi) security; (vii) labor; (viii) management costs including, without limitation; (A) wages and salaries (and payroll taxes and similar charges) of property management employees, and (B) management office rental, supplies, equipment and related operating expenses incurred and management fees; (ix) supplies, materials, equipment and tools including rental of personal property; (x) repair and maintenance of the structural portions of the buildings with the Project, including the plumbing, heating, ventilating, air-conditioning and electrical systems installed or furnished by Landlord; (xi) maintenance, costs and upkeep of all parking and other Common Areas; (xii) depreciation on a straight line basis and rental of personal property used in maintenance; (xiii) amortization on a straight line basis over the useful life (together with interest at the Interest Rate on the unamortized balance) of all capitalized expenditures which are: (A) reasonably intended to produce a reduction in operating charges or energy consumption; or (B) required under any governmental law or regulation that was not applicable to the Project at the time it was originally constructed; or (C) for replacement of any Project equipment needed to operate the Project at the same quality levels as prior to the replacement; (xiv) gardening and landscaping; (xv) maintenance of signs (other than signs of tenants of the Project); (xvi) personal property taxes levies on or attributable to personal property used in connection with the construction, refurbishing or expansion of the BuildingCommon Areas; (vixvii) transferreasonable accounting, gainsaudit, franchiseverification, gift, inheritance, estate legal and income taxes imposed upon Landlord, any superior lessor or any mortgageeother consulting fees; and (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (xxviii) costs and expenses incurred in connection with the creationof repairs, resurfacing, repairing, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor)painting, or other financing or refinancing lighting, cleaning, refuse removal, security and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder)items, including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Buildingappropriate reserves.
Appears in 1 contract
Operating Expenses. Tenant shall pay to Landlord on the first day For purposes of each month during the Termthis Lease, in addition to the Base Rent, Xxxxxx's Share of all Operating Expenses in accordance with the following provisions:
(a) "Operating Expenses" are shall consist of the total (without duplication) of all actual expenses and costs of ownership, administration, operation, management, maintenance and repair of the Project (other than Real Property Taxes), including, without limitation: (1) premiums for insurance maintained by Landlord pursuant to this Lease or otherwise for the benefit of the Project; (2) wages, salaries and related expenses of all on-site and off-site employees-engaged in operation, management, maintenance and security, including without limitation, payroll taxes and similar government charges with respect thereto, insurance, retirement, fringe benefits and uniform allowances payable to employees; (3) all supplies, materials and equipment (including rentals) used in such operation, management, maintenance and repair (4) all maintenance, security and service costs; (5) all janitorial costs, including refuse removal and window cleaning; (6) costs incurred in the management of the Project (including supplies), together with a fee for the management of the Project and the rental cost of an on-site management office; (7) consultant, legal and accounting expenses, including the cost of audits by Landlord certified public accountants; (8) costs of operating and maintaining elevator(s) (if any); (9) all maintenance, repair and replacement costs relating to the operation of the Property, including, but not limited to, the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common AreasProject, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial serviceslandscaping, snow removal, signs (other than tenant signs), service areas, mechanical rooms, parking and security servicesplaza areas, Project exterior, driveways, including any assessments against the Project pursuant to any covenants, conditions or restrictions, reciprocal easement agreements, tenancy in common agreements or similar restrictions or agreements; (iv10) Real Property Taxespainting, decorating and furbishing of the Project and repairing, restriping and resurfacing the parking facilities and parking areas of the Project; (v11) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this leaseroof system maintenance and repairs; (vi12) monthly amortization of capital improvements to the Common Areas and extent such capital improvements are installed or used to reduce the Building costs of other items included in Operating Expenses (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost whether or not such costs in respect of the capital improvement same are in fact reduced) or to the extent such improvements are required by Landlord's estimate laws, rules, ordinances or regulations; (13) any personal property taxes levied on or attributable to personal property used in connection with the operation, management, maintenance and/or repair of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent lossesProject; (ii14) the cost of any electricity or other utilities consumed for Common Areas permits, certificates and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred licenses required in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor Project or any mortgagee; portion thereof or any areas used in connection therewith (vii) except building permits and other development permits), and any other costs for which Landlord is reimbursed through a condemnation awardlevied, assessed or imposed by or at the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if anydirection of, or resulting from statutes or regulations or interpretations thereof promulgated by any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred federal or governmental authority in connection with the creationuse or occupancy of the Project; and (15) water and sewer costs and charges, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late the charges and costs of electricity for the operation of the heating, ventilating, and air conditioning systems serving the Project, excluding the Premises, and including the Common Areas of the Project; and (16) any other expenses whether similar or dissimilar of any kind whatsoever reasonably incurred in managing, operating, maintaining and repairing the Project. Operating Expenses shall be reduced by the following: (a) to the foregoingextent actually received by Landlord, the net proceeds (after deduction of all costs of recovery thereof, including insurance deductible and reasonable legal fees) of insurance and damages paid by third parties and which are not applied to reconstruction or required to be paid to Landlord's mortgagee; (xib) expenses specific costs incurred to leasefor the account of, licenseseparately billed to, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording chargespaid by specific tenants; (xiic) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement repairs or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord replacements to the extent that the cost of the same is separate recovered by Landlord pursuant to original construction warranties; (d) interest on debt or capital retirement of debt; and apart from the (e) Landlord's cost of operating the Building (includingtenant leasehold improvements, without limitation, forming leasing commissions and continuing such reasonable legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Buildingfees arising from lease disputes.
Appears in 1 contract
Operating Expenses. Tenant shall pay to Landlord on the first day of each month during the Term, in In addition to the Monthly Base Rent, Xxxxxx's Share of all Operating Expenses in accordance with the following provisions:
(a) Operating Expenses" are all costs incurred by Landlord relating to the operation of the Property, including, but not limited to, the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share ’s Percentage of Operating Expenses to reflect Xxxxxxxx's estimate (which includes all costs and expenses of such expenses for operation and maintenance of the year.
(d) In Common Areas and the event that Tenant shall dispute Site), in the amounts manner and at the times set forth in any the following provisions of Landlord's statements regarding actual this Section 1.18. “Operating Expenses” shall consist of all costs and expenses of operation, Tenant shall have maintenance and repair of the rightBuilding and Common Areas as determined by standard accounting practices and calculated assuming the Building is at least ninety-five percent (95%) occupied, together with all costs and expenses of operation and maintenance of the Common Areas and the Site as determined by standard accounting practices and calculated assuming the Property is at least ninety-five percent (95%) occupied. Operating Expenses include the following costs by way of illustration but not later than 180 days following the receipt of limitation: (i) any such statement, to review Xxxxxxxx's books and records all assessments imposed with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice Building, Common Areas, and/or Site pursuant to Landlord at any covenants, conditions and restrictions affecting the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent lossesProperty; (ii) costs, levies or assessments resulting from statutes or regulations promulgated by any government authority in connection with the cost use or occupancy of any electricity the Site, Building or other the Premises; (iii) all costs of utilities consumed for serving the Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of utilities for the item in question; Premises which are not separately metered, (iv) all Taxes and Insurance Costs as defined in the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; Standard Lease Provisions, (v) expenses incurred in connection with the construction, refurbishing or expansion of the Buildingwaste disposal; (vi) transfersecurity, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgageeif any; (vii) costs for which Landlord is reimbursed through incurred in the management of the Site, Building and Common Areas, including, without limitation: (1) supplies, materials, equipment and tools, (2) wages, salaries, benefits, pension payments, fringe benefits, (and payroll taxes, insurance and similar governmental charges related thereto) of employees used in the operation and maintenance of the Site, Building and Common Areas, (3) the rental of personal property used by Landlord’s personnel in the maintenance, repair and operation of the Property, (4) accounting fees, legal fees and real estate consultant’s fees, and (5) a condemnation awardmanagement/administrative fee equal to 3% of Monthly Base Rent, provided, however, that during the Rent Abatement Period, the proceeds of insurance or otherwise, but only to management/administrative fee shall be calculated as if the extent of any such reimbursementMonthly Base Rent were $16,090.20 each month; (viii) ground rentrepair and maintenance of other portions of the Building other than such portions as are maintained by Tenant, including the elevators (if any), restrooms (if any), structural and non-structural portions of the Building, and the plumbing, heating, ventilating, air-conditioning and electrical systems installed or any other payments under any superior leasefurnished by Landlord and not maintained by Tenant pursuant to Section 8.2 of the Standard Provisions; (ix) depreciationmaintenance, amortization costs and other, similar noncash itemsupkeep of all parking and Common Areas; (x) amortization on a straight-line basis over the useful life of the capital improvement related work based on generally accepted accounting principles, together with interest at the Interest Rate (as defined in Section 1.12 of the Lease Summary) on the unamortized balance of all costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building capital nature (including, without limitation, forming capital improvements, capital replacements, capital repairs, capital equipment and continuing such legal entity capital tools): (1) reasonably intended to produce a reduction in operating charges or energy consumption; or (2) required after the date of this Lease under any Law that was not applicable to the Building at the time it was originally constructed; or (3) for repair or replacement of any equipment or improvements needed to operate and/or maintain the Building, the Common Areas and/or the Site at the same quality levels as prior to the repair or replacement; (xi) costs and tending to its internal accounting expenses of gardening and legal affairslandscaping; (xii) maintenance of signs (other than signs of tenants of the Site); (xiii) personal property taxes levied on or attributable to personal property used in connection with the Building, the Common Areas and/or the Site; and (xiv) costs and expenses of any services or work provided to a particular tenant repairs, resurfacing, repairing, maintenance, painting, lighting and similar items, including appropriate reserves for anticipated Operating Expenses for the next ensuring twelve month period. As of the Buildingdate of this Lease, but not Landlord represents that Operating Expenses for the calendar year 2010 the monthly Operating Expenses is estimated to all tenants of be $0.23 per rentable square foot per month in the Building.Premises,
Appears in 1 contract
Samples: Commercial Lease (Gigamon LLC)
Operating Expenses. Tenant For purposes of this Article, the term "OPERATING EXPENSES" shall pay to Landlord on mean the first day sum of each month during the Term, in addition to the Base Rent, Xxxxxx's Share of all Operating Expenses in accordance with the following provisions:
(a) Operating Expenses" are Impositions (as defined in Section 5.04 below) and (b) all costs expenses paid or incurred by Landlord relating to the operation or on Landlord's behalf in respect of the Property, including, but not limited to, the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition operation of the Common AreasBuilding, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas Land and the Building (curbs, sidewalks and atriums adjoining the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building componentssame, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: without limitation (i) bad debt lossessalaries, rent losses or reserves for bad debt or rent losses; wages, medical, surgical, union and general welfare benefits (iiincluding, without limitation, group life insurance) the cost and pension payments of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates employees of Landlord engaged in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property repair, operation and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion maintenance of the Building; (viii) transferpayroll taxes, gainsworkmen's compensation, franchise, gift, inheritance, estate uniforms and income taxes imposed upon Landlord, any superior lessor or any mortgageerelated expenses for employees; (viiiii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating all charges for gas, steam, electricity (determined as if Tenant's Proportionate Share of the Building's electrical service was separately metered to Tenant with respect to the Premises at the electrical utility's current rates for such service), any alternate source of energy, heat, ventilation, air-conditioning, water and other utilities furnished to the Building (including, without limitation, forming the Common Elements), together with any taxes on such utilities; (iv) the cost of painting; (v) the cost of all charges for rent, casualty, liability and continuing fidelity insurance with regard to the Building and the maintenance and/or operation thereof; (vi) the cost of the purchase or rental of all supplies (including, without limitation, cleaning supplies), tools, materials and equipment, and sales and other taxes thereon; (vii) depreciation of hand tools and other movable equipment used in the repair, maintenance or operation of the Building; (viii) the cost of all charges for window and other cleaning and janitorial and security services, plant and landscaping service, plantings and replantings, elevator maintenance and repair, ice and snow removal and trash removal; (ix) charges of independent contractors; (x) repairs and replacements made by Landlord at its expense; (xi) alterations and improvements to the Building made by reason of the laws and requirements of any public authorities or the requirements of insurance bodies; (xii) a management fee equal to the greater of five (5%) percent of the gross income derived from the Building or the amount which is not in excess of the then prevailing rates for management fees of other first class office buildings in the City of Hartford, Connecticut; (xiii) that portion of the cost of any capital expenditures for repair or replacement of any Building element (which expenses are not chargeable to Operating Expenses under any other clause of this Section and which would be capitalized under Landlord's method of accounting) allocated to that Operating Year by dividing the amount of the expenditure by the useful life (as reasonable estimated by Landlord) of such legal entity and tending to its internal accounting and legal affairs)capital expenditure; or (xiv) costs of any services or work provided to a particular tenant reasonable legal, accounting and other professional fees incurred in connection with the operation, maintenance and management of the Building, but not and (xv) all other charges properly allocable to all the repair, operation and maintenance of the Building in accordance with generally accepted accounting principles; EXCLUDING, HOWEVER, (1) an allowance for depreciation on the Building, (2) interest on and amortization of debts, (3) leasehold improvements, (4) brokerage commissions and advertising expenses for procuring new tenants of the Building, (5) refinancing costs, (6) the cost of any item included in Operating Expenses under clauses (i)-(xv) to the extent that such cost is reimbursed by an insurance company, a condemning authority, a tenant or any other party, but if at the time Operating Expenses are determined for an Operating Year such reimbursement has not been made, such cost may be included in Operating Expenses and an adjustment shall be made when and if such reimbursement is actually received by Landlord.
Appears in 1 contract
Samples: Lease Agreement (Tenera Inc)
Operating Expenses. Tenant shall pay to Landlord on the first day of each month during the Term, in addition to the Base Rent, Xxxxxx's Share of any and all Operating Expenses in accordance with related to the following provisions:
(a) Premises. "Operating Expenses" are shall include all costs and expenses incurred by Landlord relating to in owning, operating, managing and repairing the operation of Building and the PropertyLand, including, but not limited to, the followingall costs and expenses of: (i) the operationLandlord's Insurance, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directorieswhether or not required by any Landlord's Lender; (ii) waterpest control, gascleaning of exterior windows, electricitycleaning, telephone sweeping, striping, painting, resurfacing, repaving, disposing of refuse, inspecting, planting and other utilities servicing landscaping for the Common AreasPremises; (iii) trash disposal, providing janitorial services, snow removal, and security servicesservices for the Premises; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building includingproviding security, including but not limited to, paintingelectronic intrusion and fire control devices, caulking card key access systems, guards and repair any attendant costs of such guards and replacement telephonic alert system devices; (v) complying with all Rules and Regulations, as defined in Section 7.2 hereof, and ----------- any requirements of Building componentsLandlord's Lender, including, including but not limited to, roofimprovements or changes required by any current or future Regulations or Landlord's Lender; (vi) fees for permits and licenses; (vii) court costs; (viii) replacing, elevators repairing and fire detection maintaining foundations, floors, carpeting, walls, hallways, roofs, stairways, signage for the Building, gutters, downspouts, building service, electrical, mechanical, plumbing, heating, air conditioning and sprinkler ventilating equipment and systems.
, sidewalks, landscaping, drainage, equipment, fixtures, including all labor and materials costs and equipment rental fees, and any other capital improvements; (bix) To utilities furnished to the extent Premises, including air conditioning, electricity, lighting, steam, heating, mechanical, elevator service (if any), and ventilation; (x) capital improvement and operating and expense reserves if Tenant fails to maintain the Premises pursuant to the terms of this Lease; and (xi) any other expenses of any kind whatsoever which would reasonably or customarily be included in managing, operating, maintaining and repairing office buildings in the location in which the Building is situated. If Tenant fails to maintain the Premises pursuant to the terms of this Lease, Landlord shall determinemay establish reasonable reserves for maintaining the Building and on the Land, and for the repair and replacement of improvements in its reasonable discretionthe Building and the Land and may include the reserves as Operating Expenses, provided that any when the reserves are actually used, the expenditure of the reserves shall not be considered Operating Expenses. With respect to any Operating Expenses shall have been incurred solely for the benefit of paid directly by Landlord and reimbursable to Landlord by Tenant, Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that review such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(awithin twenty (20) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Building.
Appears in 1 contract
Operating Expenses. The term "operating expenses" as used herein shall include all of the costs and expenses of the operation, repair and maintenance of the Premises, the Land, the Building, and its interior and exterior common areas, and shall include by way of illustration, but is not limited to, all taxes, assessments and governmental charges of any kind or nature whatsoever levied or assessed against the Land and the Building by any municipality, county, or other governmental agency, all insurance premiums for commercial general liability, fire and extended coverage on the Building and the Land, utilities for the Premises and the common areas of the Building, including, electricity, gas, and water and sewer, all lawn, interior common area, and driveway and paved parking area maintenance related to the Land upon which the Premises are located, and for the streets and roadways providing access to the Building and the Land, management and supervisory fees, exterior lighting maintenance, snow removal, waste removal, repair and maintenance of paved areas, cleaning supplies, miscellaneous building supplies, sweeper brushes, supplies for materials used in common by all tenants of the complex in which the Premises are located, external paint for the Building, exterior and interior common area maintenance, elevator repair and maintenance, external plumbing for the Building, exterior lighting in common areas, insect and pest extermination, security guards for the complex in which the Premises are located, signs for the complex in which the Premises are located, fuel for vehicles and street sweepers used by Landlord in the complex in which the Premises are located and miscellaneous maintenance expenses, heat, air conditioning, labor, materials, supplies, equipment and tools, permits, licenses, inspection fees, window glass replacement and repair, compensation (including employment taxes and fringe benefits) of all persons who perform duties in connection with the operation and/or maintenance of the Building, and costs for janitorial expense and trash removal at the Premises. In the event the Building is one of several buildings located on the Land for tax assessment purposes, the amount of tax assessed against the Land and the buildings thereon shall be allocated amongst the buildings in proportion to the square footage of each building to the total amount of tax assessed, as reasonably determined by Landlord. For example, if the ad valorem taxes assessed for the Land and the buildings for a calendar year is $100,000.00, and two buildings occupy the Land with one building of 100,000 rentable square feet ("building A") and the other building of 70,000 rentable square feet ("building B"), the proportionate share for building A would be $58,823.53, and the proportionate share for building B would be $41,176.44. During the time that the Building is the only building located on the Land, the amount of ad valorem taxes assessed shall be allocated as follows: all taxes due for improvements to the Land shall be allocated to and paid by Tenant and all taxes due for the Land shall be shared by the Tenant and the Landlord based upon each party's proportionate share of the Land. Utilities for the Premises included as part of operating expenses shall not include utility charges and HVAC beyond the hours of 8:00 AM to 6:00 PM, Monday - Friday, and 8:00 AM to 1:00 PM, Saturday. Any usage by Tenant of HVAC and utilities at times other than the aforesaid hours shall be at the sole cost and expense of Tenant. Landlord shall bill Tenant directly for all such actual costs as a separate item of Addxxxxnal Rent, and Tenant shall pay such amounts within fifteen days of receipt of demand for payment from Landlord, and the failure by Tenant to Landlord on the first day of each month during the Term, in addition to the Base Rent, Xxxxxx's Share of all Operating Expenses pay such costs in accordance with the following provisions:
(a) Operating Expenses" are all costs incurred demand made by Landlord relating to the operation of the Property, including, but not limited to, the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be treated in the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially same manner under this Lease as a result non-payment of Tenant's use of the demised premises, base rent by Tenant with Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on being afforded the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of rights and remedies for such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the yearnon-payment.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Building.
Appears in 1 contract
Samples: Lease Agreement (Pharmaceutical Product Development Inc)
Operating Expenses. (a) Tenant shall pay to Landlord on shall, at its sole cost and expense, operate, manage and maintain the first day of each month during Building and the TermLand upon which the Building is located, in addition to including the Base Rent, Xxxxxx's Share of all Operating Expenses landscaped areas and the parking area in accordance with accepted principles of sound management and accounting practices as applied for first-class office buildings, including, without limitation:
(i) janitorial labor and supplies;
(ii) maintenance, snowplowing, ice removal, repair, replacement and engineering labor and supplies;
(iii) Intentionally Deleted;
(iv) window cleaning;
(v) painting;
(vi) security;
(vii) trash removal;
(viii) Intentionally Deleted;
(ix) gas and other fuels, water;
(x) landscaping and lawn care; and
(xi) parking lot resurfacing. It is understood that the Tenant is the sole occupant of the Building and responsible for all the Operating Expenses, Impositions (as defined in paragraph 6.01 above), and for all utility charges for the Building (as provided in paragraph 4.01, and the Land upon which the Building is located and the parking areas for the Building. Notwithstanding anything to the contrary, the following provisionsexpenses shall be excluded from Operating Expenses:
(a) expenses for any capital improvement made to the Building which do not reduce Operating Expenses" are all costs incurred by Landlord relating to the operation of the Property, including, but not limited to, the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.;
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely expenses for the benefit of Tenant repairs or otherwise solely other work occasioned by an insured fire or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.other insured casualty;
(c) Tenant shall pay monthly expenses incurred in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statementleasing or procuring new tenants, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses including commissions and fees for the year.legal services and advertising;
(d) In legal expenses incurred in enforcing the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt terms and conditions of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.lease;
(e) Notwithstanding anything to interest or amortization payments on any mortgage or obligation in the contrary set forth in this lease, Operating Expenses shall exclude: nature of a mortgage;
(i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (vf) expenses incurred in connection with the constructionmaintenance and operation of any pay parking area;
(g) land rent or ground lease payments, refurbishing or expansion of the Building; if any;
(vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (viih) costs for which Landlord is of refinancing;
(i) interest or penalties incurred by Landlord’s late payments;
(j) cost of art work;
(k) net income taxes;
(l) capital tax, succession tax, transfer tax, franchise tax, gift or estate tax;
(m) costs actually reimbursed through a condemnation award, the proceeds of insurance insurance;
(n) repairs incurred during the first Lease Year or otherwisefor items subject to a longer warranty, but only during the warranty coverage period exclusive of those items subject to normal wear and tear and damage caused by Tenant, its agents, contractors or employees;
(o) Roof and sidewalk repairs during the extent of any such reimbursementinitial term except those caused by Tenant, its agents, contractors or employees;
(p) Intentionally Deleted; and
(viiiq) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), Repairs or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or costs resulting from the Building and/or the land thereunder)negligence or willful misconduct of Landlord, including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's its agents, servants contractors or contractors; (xiii) costs associated with operating employees during the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Buildingwarranty coverage period.
Appears in 1 contract
Operating Expenses. Tenant The term "operating expenses" as used herein shall pay to Landlord on the first day of each month during the Term, in addition to the Base Rent, Xxxxxx's Share of include all Operating Expenses in accordance with the following provisions:
(a) Operating Expenses" are all costs incurred by Landlord relating to the operation of the Propertycosts and expenses of the operation, includingrepair and maintenance of the Premises, the Land, the Building, and its interior and exterior common areas, and shall include by way of illustration, but is not limited to, all taxes, assessments and governmental charges of any kind or nature whatsoever levied or assessed against the following: (i) Land and the operationBuilding by any municipality, repaircounty, maintenance or other governmental agency, all insurance premiums for commercial general liability, fire and replacement in neatextended coverage on the Building and the Land, clean, good order utilities for the Premises and condition the common areas of the Common AreasBuilding, including parking areasincluding, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) waterelectricity, gas, electricityand water and sewer, telephone all lawn, interior common area, and other utilities servicing driveway and paved parking area maintenance related to the Common Areas; (iii) trash disposalLand upon which the Premises are located, janitorial servicesand for the streets and roadways providing access to the Building and the Land, management and supervisory fees, exterior lighting maintenance, snow removal, waste removal, repair and security services; (iv) Real Property Taxes; (v) premiums maintenance of paved areas, cleaning supplies, miscellaneous building supplies, sweeper brushes, supplies for materials used in common by all tenants of the complex in which the Premises are located, external paint for the insurance policies maintained Building, exterior and interior common area maintenance, elevator repair and maintenance, external plumbing for the Building, exterior lighting in common areas, insect and pest extermination, security guards for the complex in which the Premises are located, signs for the complex in which the Premises are located, fuel for vehicles and street sweepers used by Landlord under Paragraph 8 of this lease; in the complex in which the Premises are located and miscellaneous maintenance expenses, heat, air conditioning, labor, materials, supplies, equipment and tools, permits, licenses, inspection fees, window glass replacement and repair, compensation (vi) monthly amortization of capital improvements to the Common Areas including employment taxes and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(afringe benefits) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred all persons who perform duties in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building operation and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant maintenance of the Building, but not and costs for janitorial expense and trash removal at the Premises. In the event the Building is one of several buildings located on the Land for tax assessment purposes, the amount of tax assessed against the Land and the buildings thereon shall be allocated amongst the buildings in proportion to the square footage of each building to the total amount of tax assessed, as reasonably determined by Landlord. For example, if the ad valorem taxes assessed for the Land and the buildings for a calendar year is $100,000.00, and two buildings occupy the Land with one building of 100,000 rentable square feet ("building A") and the other building of 70,000 rentable square feet ("building B"), the proportionate share for building A would be $58,823.53, and the proportionate share for building B would be $41,176.44. During the time that the Building is the only building located on the Land, the amount of ad valorem taxes assessed shall be allocated as follows: all tenants taxes due for improvements to the Land shall be allocated to and paid by Tenant and all taxes due for the Land shall be shared by the Tenant and the Landlord based upon each party's proportionate share of the BuildingLand.
Appears in 1 contract
Samples: Lease Agreement (Pharmaceutical Product Development Inc)
Operating Expenses. Tenant shall pay to Landlord on the first day of each month during the Term, in addition The term "operating expenses" includes all expenses incurred by Lessor with respect to the Base Rent, Xxxxxx's Share of all Operating Expenses in accordance with the following provisions:
(a) Operating Expenses" are all costs incurred by Landlord relating to the maintenance and operation of the Propertybuilding and project of which the leased premises are a part, including, but not limited to, the following: (i1) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directoriesrepair costs; (ii2) electricity, fuel, water, gassewer, electricity, telephone gas and other utilities servicing the Common Areasutility charges; (iii3) trash disposalsecurity, window washing, janitorial services, trash and snow removal, and security services; (iv4) Real Property Taxeslandscaping and pest control; (v5) reasonable (consistent with like building in the market) management fees, wages and fringe benefits payable to on-site building manager; (6) all services, supplies, repairs, replacements or other expenses for maintaining and operating the building or project including parking or common areas; (7) the cost, including interest, amortized over its useful life, of installation of any device or other equipment which improves the operating efficiency of any system within the building of which the leased premises forms a part; (8) all real property taxes and installments of special assessments, including dues and assessments by means of deed restrictions and/or owners' associations which accrue against the building and project of which the leased premises are a part during the term of this Lease; (9) all insurance premiums Lessor is required to pay or deems necessary to pay, including public liability insurance, with respect to the building; (10) workmen's INITIALS STG LMA --- --- compensation insurance, employment taxes, uniforms and equipment for employees and agents referenced in item (5) above; (11) fire protection; and (12) maintenance, repair and replacement of water, electrical, sanitary sewer, storm sewer and other utility lines, pipes and conduits serving the building and project. The term "operating expenses" does not include the following; (1) repairs, restoration or other work occasioned by fire, wind, the elements or other casualty; (2) income and franchise taxes of Lessor; (3) expenses incurred in leasing to or procuring of tenants, leasing commissions, advertising expenses and expenses for the insurance policies maintained by Landlord under Paragraph 8 renovating of this leasespace for new tenants; (vi4) monthly amortization interest or principal payments on any mortgage or other indebtedness of Lessor; (5) any depreciation allowance or expense; (6) capital improvements to the Common Areas and the Building other than as described in (the monthly amortization of any given capital improvement shall be the sum of: (A7) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted above, including those required by law); and , (vii7) maintenance abatement of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systemsenvironmental hazards or materials.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Building.
Appears in 1 contract
Samples: Lease Agreement (SPR Inc)
Operating Expenses. Tenant shall pay to Landlord Throughout the Term of this Lease, commencing on the first day of each month during the TermCommencement Date, in addition Tenant agrees to the Base Rent, Xxxxxx's Share of all Operating Expenses pay Landlord as additional rent in accordance with the following provisions:
(a) Operating Expenses" are all costs incurred by Landlord relating to the operation of the Property, including, but not limited to, the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 terms of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building includingParagraph 6, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such for the taxes and insurance for the Project and all costs and expenses for the year.
(d) In operation, maintenance, repair, and replacement of the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating ExpensesProject including, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall excludewithout limitation: (i) bad debt lossesany form of real property tax assessment, rent losses license fee, license tax, business license fee, commercial rental tax, levy, charge, improvement bond or reserves for bad debt or rent losses; (ii) the cost similar imposition of any electricity kind or other utilities consumed for Common Areas and nature imposed by any taxes levied thereon; (iii) amounts paid authority having the direct power to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating tax, including any asbestos city, county, state or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if anyfederal government, or any other payments under any superior lease; (ix) depreciationschool, amortization and otheragricultural, similar noncash items; (x) costs and expenses incurred in connection with the creationlighting, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), drainage or other financing improvement or refinancing and all fees payable pursuant to such mortgagesspecial assessment district thereof, leases, financings or refinancings including, without limitation, pointsany new taxes which are in substitution for or in addition to any current taxes payable hereunder; (ii) any and all assessments under any covenants, late charges conditions and restrictions affecting the Project; (iii) water, sewer and other utility charges; (iv) costs of insurance obtained by Landlord pursuant to Paragraph 19 of the Lease; (v) waste disposal and janitorial services; (vi) security; (vii) labor; (viii) management costs including, without limitation: (A) wages and salaries (and payroll taxes and similar charges ) of property management employees, and (B) management office rental, supplies, equipment and related operating expenses whether similar and management fees; (ix) supplies, materials, equipment and tools including rental of personal property; (x) repair and maintenance of the structural portions of the buildings with the Project, including the plumbing, heating, ventilating, air-conditioning and electrical systems installed or dissimilar to the foregoingfurnished by Landlord; (xi) expenses incurred to leasemaintenance, license, sell, syndicate, hypothecate, transfer or otherwise dispose costs and upkeep of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees all parking and disbursements, transfer and gains taxes and recording chargesother Common Areas; (xii) damages, attorneys' fees depreciation on a straight line basis and disbursements paid as a result rental of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; personal property used in maintenance: (xiii) costs associated amortization on a straight line basis over the useful life [together with interest at the Interest Rate on the unamortized balance) of all capitalized expenditures which are: (A) reasonably intended to produce a reduction in operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs)charges or energy consumption; or (B) required under any governmental law or regulation that was not applicable to the Project at the time it was originally constructed; or (C) for replacement of any Project equipment needed to operate the Project at the same quality levels as prior to the replacement; (xiv) costs gardening and landscaping; (xv) maintenance of any services or work provided to a particular tenant signs (other than signs of the Building, but not to all tenants of the BuildingProject); (xvi) personal property taxes levied on or attributable to personal property used in connection with the Common Areas; (xvii) reasonable accounting, audit, verification, legal and other consulting fees; and (xviii) costs and expenses of repairs, resurfacing, repairing, maintenance, painting, lighting, cleaning, refuse removal, security and similar items, including appropriate reserves.
Appears in 1 contract
Samples: Industrial Lease (AcuNetx, Inc.)
Operating Expenses. Tenant shall pay to Landlord on the first day of each month during the Term, in In addition to the Monthly Base Rent, Xxxxxx's Share of all Operating Expenses in accordance with the following provisions:
(a) Operating Expenses" are all costs incurred by Landlord relating to the operation of the Property, including, but not limited to, the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share Percentage of Operating Expenses to reflect Xxxxxxxx's estimate (which includes the Building Percentage of such all costs and expenses for of operation and maintenance of the year.
(d) In Property Common Areas and the event that Tenant shall dispute Site), in the amounts manner and at the times set forth in any the following provisions of Landlord's statements regarding actual this Section 1.18. "Operating Expenses" shall consist of all costs and expenses of operation, Tenant shall have maintenance and repair of the rightBuilding and Building Common Areas as determined by standard accounting practices and calculated assuming the Building is at least ninety-five percent (95%) occupied, together with the Building Percentage of all costs and expenses of operation and maintenance of the Property Common Areas and the Site as determined by standard accounting practices and calculated assuming the Property is at least ninety-five percent (95%) occupied. Operating Expenses include the following costs by way of illustration but not later than 180 days following the receipt of limitation: (i) any such statement, to review Xxxxxxxx's books and records all assessments imposed with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice Building, Common Areas, and/or Site pursuant to Landlord at any covenants, conditions and restrictions affecting the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent lossesProperty; (ii) costs, levies or assessments resulting from statutes or regulations promulgated by any government authority in connection with the cost use or occupancy of the Site, Building or the Premises (unless triggered by the specific use or occupancy of another tenant or any electricity alterations or other utilities consumed for Common Areas and any taxes levied thereonimprovements made by another tenant); (iii) amounts paid to affiliates of Landlord in excess of the competitive all costs of utilities serving the item Common Areas and all Premises Utilities Costs and utilities costs for other premises in question; the Building which are not separately metered which shall be billed on a pro rata basis based upon the rentable square footage of all space leased which share in the such utilities) (iv) all Taxes and Insurance Costs as defined in the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; Standard Lease Provisions, (v) expenses incurred in connection with the construction, refurbishing or expansion of the Buildingwaste disposal; (vi) transfersecurity, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgageeif any; (vii) costs for which Landlord is reimbursed through incurred in the management of the Site, Building and Common Areas, including, without limitation: (1) supplies, materials, equipment and tools, (2) wages, salaries, benefits, pension payments, fringe benefits, (and payroll taxes, insurance and similar governmental charges related thereto) of employees used in the operation and maintenance of the Site, Building and Common Areas, (3) the rental of personal property used by Landlord's personnel in the maintenance, repair and operation of the Property, (4) accounting fees and (5) a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursementmanagement/administrative fee; (viii) ground rentrepair and maintenance of other portions of the Building other than such portions as are maintained by Tenant, including the elevators (if any), restrooms (if any), structural and non-structural portions of the Building, and the plumbing, heating, ventilating, air-conditioning and electrical systems installed or any other payments under any superior leasefurnished by Landlord and not maintained by Tenant pursuant to Section 8.2 of the Standard Provisions; (ix) depreciationmaintenance, amortization costs and other, similar noncash itemsupkeep of all parking and Common Areas; (x) amortization on a straight-line basis over the useful life together with interest at the Interest Rate (as defined in Section 1.13 of the Lease Summary) on the unamortized balance of all costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building capital nature (including, without limitation, forming capital improvements, capital replacements, capital repairs, capital equipment and continuing such legal entity capital tools) that are: (1) reasonably intended to produce a reduction in operating charges or energy consumption; or (2) required after the date of this Lease under any Law that was not applicable to the Building at the time it was originally constructed; or (3) for repair or replacement of any equipment or improvements needed to operate and/or maintain the Building, the Common Areas and/or the Site at the same quality levels as prior to the repair or replacement; (xi) costs and tending to its internal accounting expenses of gardening and legal affairslandscaping; (xii) maintenance of signs (other than signs of tenants of the Site); (xiii) personal property taxes levied on or attributable to personal property used in connection with the Building, the Common Areas and/or the Site; and (xiv) costs and expenses of repairs, resurfacing, repairing, maintenance, painting, lighting and similar items, including appropriate reserves. Landlord shall have the right, from time to time, to equitably allocate some or all of the Operating Expenses among different tenants and/or different buildings and/or difference premises of the Property based upon differing levels of use, demand, risk or other distinctions among such parties, premises or Buildings (the "Cost Pools"). Such Cost Pools may include, for example, all office space tenants or industrial/R&D space tenants in the Property and may be modified to take into account the addition of any services additional buildings within the Property. Accordingly, in the event of such allocations into Cost Pools, Tenant's Percentage shall be appropriately adjusted to reflect such allocation. In addition, if Landlord does not furnish a particular service or work provided (the cost of which, if furnished by Landlord would be included in Operating Expenses) to a particular tenant (other than Tenant) that has undertaken to perform such service or work in lieu of receiving it from Landlord, then such tenant's percentage share of the Building, but not costs of such service or work shall be excluded for purposes of calculating Tenant's Percentage (and the percentage share of all other tenants) as to all tenants the costs of the Buildingsuch service or work which is included Operating Expenses and performed by Landlord.
Appears in 1 contract
Samples: Multi Tenant Lease (Nnn) (WaferGen Bio-Systems, Inc.)
Operating Expenses. Tenant shall pay to Landlord on the first day of each month during the TermLandlord, in addition to the Base Rent, XxxxxxTenant's Operating Expense Proportionate Share of all Operating Expenses expenses incurred or paid by Landlord in accordance connection with the following provisions:
(a) Operating Expenses" are all costs incurred by Landlord relating to the operation of the Propertymaintenance, including, but not limited to, the following: (i) the operation, repair, maintenance and or replacement in neat, clean, good order and condition of (a) the Common Areas, and (b) all other portions of the Property (not including the buildings thereon, except as expressly set forth in this Section 10.1), even if such portions of the Property (not including the buildings thereon, except as expressly set forth in this Section 10.1) are reserved for the exclusive use of others (unless those having such exclusive right of use pay the entire expense of maintenance, operation, repair and replacement of such portion of the Property reserved for such exclusive use) (which portions of the Property shall, for purposes of this Section and Section 8 only, be deemed Common Areas). Such expenses shall include, without limitation, (a) the costs of (i) cleaning, maintenance, repair and replacement of the roads, sidewalks, parking areas, loading and unloading areasdriveways on or adjoining the Property, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences including the cost of snow and gates, exterior signs and tenant directoriesice removal; (ii) water, gas, electricity, telephone repaving and other utilities servicing restriping paved portions of the Common AreasProperty; (iii) trash disposalmaintenance, janitorial services, snow removal, repair and security servicesreplacement of all landscaped areas on the Property and exterior portions of the buildings on the Property; (iv) Real Property Taxesguards and security personnel, facilities and equipment for the Property; (v) premiums for maintenance, operation, repair and replacement of the insurance policies maintained by Landlord under Paragraph 8 lighting of this leasethe Property (not including the buildings thereon); (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvementinsurance; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building includingmaintenance, but not limited tooperation, painting, caulking and repair and replacement of Building componentswater, includingsewer and other utility equipment, but not limited to, roof, elevators lines and fire detection systems (interior and sprinkler systems.
(bexterior to buildings and improvements) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any the Systems, including the costs incurred as a result thereof; (v) expenses incurred in connection with the constructionof service contracts entered into by Landlord for such equipment, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate lines and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursementsystems; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation operation, repair and replacement of a mortgage or superior lease fire protection equipment, lines and systems (or in litigation with a mortgagee or ground lessor), or other financing or refinancing exterior and all fees payable pursuant interior to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the Building.buildings and
Appears in 1 contract
Operating Expenses. Tenant shall pay to Landlord Throughout the Term of this Lease, commencing on the first day of each month during the TermCommencement Date, in addition Tenant agrees to the Base Rent, Xxxxxx's Share of all Operating Expenses pay Landlord as additional rent in accordance with the following provisionsterms of this Section 4, Tenant’s Share of Operating Expenses for the taxes and insurance for the Project and for all costs and expenses for the operation, maintenance, repair, and replacement of the Project including, without limitation: (i) any form of real property tax, assessment, license fee, license tax, business license fee, commercial rental tax, levy, charge, improvement bond or similar imposition of any kind or nature imposed by any authority having the direct power to tax, including any city, county, state or federal government, or any school, agricultural, lighting, drainage or other improvement or special assessment district thereof; (ii) any and all assessments under any covenants, conditions and restrictions affecting the Project; (iii) water, sewer and other utility charges; (iv) costs of insurance obtained by Landlord pursuant to Section 21 of this Lease; (v) waste disposal and janitorial services; (vi) security; (vii) labor; (viii) management costs including, without limitation: (A) wages and salaries (and payroll taxes and similar charges) of property management employees, and (B) management office rental, supplies, equipment and related operating expenses and commercially reasonable management/administrative fees; (ix) supplies, materials, equipment and tools including rental of personal property; (x) repair and maintenance of the structural portions of the buildings within the Project, including the plumbing, heating, ventilating, air-conditioning and electrical systems installed or furnished by Landlord; (xi) maintenance, sweeping, repairs, resurfacing, and upkeep of all parking and other Common Areas; (xii) amortization on a straight line basis over the useful life [together with Interest at the Interest Rate on the unamortized balance] of all capitalized expenditures which are: (A) reasonably intended to produce a reduction in operating charges or energy consumption; or (B) required under any governmental law or regulation that was not applicable to the Project as of the Commencement Date (however, if such expenditure by Landlord is required solely due to Tenant’s particular use, occupancy or alteration of the Premises, then regardless of when such law or regulation became in effect, Tenant shall be responsible for all of such expenditure); or (C) for replacement or restoration of any Project equipment and/or Improvements needed to operate and/or maintain the Project at the same quality levels as prior to the replacement or restoration; (xiii) gardening and landscaping; (xiv) maintenance of signs (other than signs of tenants of the Project); (xv) personal property taxes levied on or attributable to personal property used in connection with the Common Areas; (xvi) reasonable accounting, audit, verification, legal and other consulting fees; and (xvii) any other costs and expenses of repairs, maintenance, painting, lighting, cleaning, and similar items, including appropriate reserves. Notwithstanding anything to the contrary in the definition of Operating Expenses set forth in this Lease, Operating Expenses shall not include the following:
(a) depreciation on the Building and Project;
(b) interest, principal, points and fees on debt or amortization on any mortgages and deeds of trust or other debt instruments secured by the Building or the Project or any underlying ground lease;
(c) costs of repairs and general maintenance paid from insurance proceeds but excluding the amount of any deductibles paid by Landlord;
(d) repairs and replacements covered by warranties or guaranties (to the extent actually collected by Landlord); and the cost of any repairs, alterations and additions made to rectify or correct any major defects or significant design errors relating to the initial design or construction of the Building and Project;
(e) costs of items considered capital repairs, replacements, improvements and equipment under generally accepted accounting principles consistently applied except for those items expressly permitted in clause (xii) above;
(f) costs of special services rendered to individual tenants (including Tenant) for which a special charge is made to the tenant(s) receiving such special services;
(g) costs of improvements for other tenants in the Building or Project;
(h) costs of the Landlord for which a tenant is obligated to separately reimburse Landlord (as opposed to reimbursement of a pro rata share thereof as an Operating Expenses" Expense), including, for example, taxes and property insurance premiums on improvements for tenants of the Building and Project that are all above the building standard;
(i) costs incurred by Landlord relating to in connection with the operation enforcement of the Propertyterms and conditions of any lease in the Building or Project;
(j) all costs, includingexpenses, but not limited topenalties, the following: (i) the operationdamages, repairfines and judgments from any investigation, maintenance and replacement in neatsite monitoring, cleancontainment, good order and condition of the Common Areascleanup, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization restoration or other remedial work of any given capital improvement shall be the sum of: (A) the quotient obtained kind or nature required under any local, state or federal law or regulation, any judicial order, or by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% any governmental or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant nongovernmental entity or otherwise solely or substantially person as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the constructionany Hazardous Material or Hazardous Materials contamination;
(k) Landlord’s general corporate overhead and general and administrative expenses;
(l) Marketing costs, refurbishing or expansion of the Building; (vi) transferincluding, gainswithout limitation, franchiseleasing commissions, giftattorneys’ fees, inheritance, estate space planning costs and income taxes imposed upon Landlord, any superior lessor or any mortgagee; (vii) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creation, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor), or other financing or refinancing and all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose leasing of the Building or Project; and
(m) Overhead and profit increment paid to Landlord and Landlord’s subsidiaries for goods and/or the land thereunder services in or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord Project to the extent that the same is separate and apart from exceeds the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any such goods and/or services or work provided to rendered by unaffiliated third parties on a particular tenant of the Building, but not to all tenants of the Buildingcompetitive basis.
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Samples: Multi Tenant Industrial Lease (BioMed Realty Trust Inc)
Operating Expenses. Tenant shall pay to Landlord Throughout the Term of this Lease, commencing on the first day of each month during the TermCommencement Date, in addition Tenant agrees to the Base Rent, Xxxxxx's Share of all Operating Expenses pay Landlord as additional rent in accordance with the following provisions:
(a) Operating Expenses" are all costs incurred by Landlord relating to the operation of the Property, including, but not limited to, the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition of the Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directories; (ii) water, gas, electricity, telephone and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxes; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 terms of this lease; (vi) monthly amortization of capital improvements to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building includingSection 4, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such for the taxes and insurance for the Common Area and for all costs and expenses for the year.
(d) In operation, maintenance, repair, and replacement of the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating ExpensesCommon Area including, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall excludewithout limitation: (i) bad debt lossesany form of real property tax, rent losses assessment, license fee, license tax, business license fee, commercial rental tax, levy, charge, improvement bond or reserves for bad debt similar imposition of any kind or rent lossesnature imposed by any authority having the direct power to tax, including any city, county, state or federal government, or any school, agricultural, lighting, drainage or other improvement or special assessment district thereof; (ii) any and all assessments under any covenants, conditions and restrictions affecting the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereonProject; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in questionwater, sewer and other utility charges; (iv) the cost costs of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereofinsurance obtained by Landlord pursuant to Section 21 of this Lease; (v) waste disposal and janitorial services; (vi) security; (vii) labor; (viii) management costs including, without limitation: (A) wages and salaries (and payroll taxes and similar charges) of property management employees, and (B) management office rental, supplies, equipment and related operating expenses incurred and a commercially reasonable management fee; (ix) supplies, materials, equipment and tools including rental of personal property; (x) maintenance, sweeping, repairs, resurfacing, re-striping and upkeep of any parking and any other paved surfaces included within the Common Area; (xi) amortization on a straight line basis over the useful life [together with interest at the Interest Rate on the unamortized balance] of all capitalized expenditures which are: (A) reasonably intended to produce a reduction in operating charges or energy consumption; or (B) required under any governmental law or regulation that was not applicable to the Project at the time it was originally constructed; or (C) for replacement of any Project equipment needed to operate the Xxxxxxx.xx the same quality levels as prior to the replacement; (xii) gardening and landscaping; (xiii) maintenance of signs (other than signs of tenants of the Project); (xiv) personal property taxes levied on or attributable to personal property used in connection with the construction, refurbishing or expansion of the BuildingCommon Areas; (vixv) transferreasonable accounting, gainsaudit, franchiseverification, gift, inheritance, estate legal and income taxes imposed upon Landlord, any superior lessor or any mortgageeother consulting fees; and (viixvi) costs for which Landlord is reimbursed through a condemnation award, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with the creationof repairs, maintenance, modification or negotiation of a mortgage or superior lease (or in litigation with a mortgagee or ground lessor)painting, or other financing or refinancing lighting, cleaning, and all fees payable pursuant to such mortgagessimilar items, leasesincluding appropriate reserves, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar applicable to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) or any "air" or "development" rights (whether such rights are transferred to or from the Building and/or the land thereunder), including (without limitation) brokerage commissions, attorney's fees and disbursements, transfer and gains taxes and recording charges; (xii) damages, attorneys' fees and disbursements paid as a result of a judgment, settlement or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractors; (xiii) costs associated with operating the business of the legal entity which constitutes Landlord to the extent that the same is separate and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant of the Building, but not to all tenants of the BuildingCommon Area.
Appears in 1 contract
Operating Expenses. During the term of this Lease, and any extensions and renewals thereof, Landlord shall operate, manage, repair and maintain, in a first class manner consistent with other similar buildings in the Gaithersburg and Germantown, Maryland areas, the Building, the Land and the Common Areas. Tenant shall shall, during the entire term of this Lease, pay to Landlord on the first day of each month during the Term, in addition to the Base as Additional Rent, Xxxxxx's the Tenant’s Pro Rata Share of all Operating Expenses in accordance with the following provisions:
(a) Operating Expenses" are all costs and expenses incurred by Landlord relating in operating, managing, repairing and maintaining the Building, the Land and the Common Areas, collectively referred to as “Operating Expenses”. Said Operating Expenses shall include, but not be limited to, costs and expenses for: (i) removal of snow, ice, trash, rubbish and debris from the Common Areas; (ii) furnishing and maintaining electric service (and elevator service, if any) to the operation Building and the lighting of the PropertyCommon Areas; (iii) charges for furnishing and maintaining water and sewer service or other utility services to the Building and the Land; (iv) trimming and grass cutting and all other maintenance and upkeep of the grounds, green areas and landscaping in the Common Areas; (v) maintaining, monitoring and testing the sprinkler system and sprinkler alarm system in the Building; (vi) maintaining, striping, cleaning and repairing the parking areas, driveways and sidewalks; (vii) trash pick-up and removal by a licensed contractor from containers located in a common enclosure(s) for the mutual use of all tenants in the Building, as well as the cost of maintaining and repairing said trash container enclosure(s); (viii) reasonable property management fees of three percent (3%) of gross rentals in the Building; (ix) maintenance and repairs to the exterior of Building, including, but without limitation, exterior windows, doors, hardware, locks, lighting and lighting fixtures; (x) premiums incurred by Landlord, if any, for hazard, liability, workmen’s compensation or similar insurance on contractors providing services to the Building, Land or Common Areas; and (xi) any other costs and maintenance expenses for the Building, Land, Common Areas and all appurtenances thereto as may be deemed reasonably necessary by Landlord which under generally accepted accounting principles properly constitute operating or maintenance costs and expenses attributable thereto. Operating Expenses shall not limited to, include any of the following: (i) the operation, repair, maintenance and replacement in neat, clean, good order and condition cost of the original construction of the Building or any additions or expansions to the Building, Common Areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs and tenant directoriesAreas or other items which under generally accepted accounting principles are properly classified as capital expenditures; (ii) water, gas, electricity, telephone any repairs or work performed to any portion of the Building intended to be occupied by individual tenants; (iii) the cost of correcting any defects in the original construction of the Building and other utilities servicing the Common Areas; (iii) trash disposal, janitorial services, snow removal, and security services; (iv) Real Property Taxesany reserves for future expenditures not yet incurred; (v) premiums for the insurance policies maintained by Landlord under Paragraph 8 of this leaseground lease rental; (vi) monthly amortization of capital improvements costs incurred by Landlord for repair or restoration to the Common Areas and the Building (the monthly amortization of any given capital improvement shall be the sum of: (A) the quotient obtained extent that Landlord is reimbursed by dividing the cost of the capital improvement by Landlord's estimate of the number of months of useful life of such improvement; plus (B) an amount equal to the cost of the capital improvement times 1//12 of the lesser of 12% insurance or the maximum annual interest rate permitted by law); and (vii) maintenance of the Building including, but not limited to, painting, caulking and repair and replacement of Building components, including, but not limited to, roof, elevators and fire detection and sprinkler systems.
(b) To the extent Landlord shall determine, in its reasonable discretion, condemnation proceeds or that any of the Operating Expenses shall have been incurred solely for the benefit of Tenant or otherwise solely or substantially as a result of Tenant's use of the demised premises, Landlord shall have the right to require that such Operating Expenses be borne solely by Xxxxxx. The inclusion of the improvements, facilities and services set forth in Paragraph 4.2(a) of this lease shall not be deemed to impose any obligation upon Landlord to either have said improvements or facilities or to provide those services.
(c) Tenant shall pay monthly in advance on the same day as the Base Rent is due Tenant's Share of estimated Operating Expenses in the amount set forth in Paragraph 1.6 of this lease. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expenses incurred during the preceding year. If Tenant's estimated payments under Paragraph 4.2(c) of this lease during the preceding year exceed Xxxxxx's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against Xxxxxx's Share of Operating Expenses next becoming due hereunder or, if such statement shall relate to the last calendar year falling whole or partially within the Term, any such overage shall be refunded to Tenant within 30 days after the date of such statement. If Xxxxxx's estimated payments under Paragraph 4.2(c) of this lease during said preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 30 days after delivery by Landlord to Tenant of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of Operating Expenses to reflect Xxxxxxxx's estimate of such expenses for the year.
(d) In the event that Tenant shall dispute the amounts set forth in any of Landlord's statements regarding actual Operating Expenses, Tenant shall have the right, not later than 180 days following the receipt of any such statement, to review Xxxxxxxx's books and records with respect to the period of time covered by such statement. Any such review by Tenant shall occur upon not less than 10 days' prior notice to Landlord at the place of business of Landlord's property manager or the actual location of Landlord's books and records, if different than the office of Landlord's property manager, during the normal business hours of Landlord or such property manager. If Tenant shall not request a review of any such statement in accordance with the preceding provisions of this paragraph within 180 days following the receipt of Landlord's statement, such statement shall be deemed to be conclusively binding upon Tenant.
(e) Notwithstanding anything to the contrary set forth in this lease, Operating Expenses shall exclude: (i) bad debt losses, rent losses or reserves for bad debt or rent losses; (ii) the cost of any electricity or other utilities consumed for Common Areas and any taxes levied thereon; (iii) amounts paid to affiliates of Landlord in excess of the competitive costs of the item in question; (iv) the cost of removing and/or abating any asbestos or other Hazardous Substances in or about the Property and any costs incurred as a result thereof; (v) expenses incurred in connection with the construction, refurbishing or expansion of the Building; (vi) transfer, gains, franchise, gift, inheritance, estate and income taxes imposed upon Landlord, any superior lessor or any mortgageewarranty; (vii) costs for which Landlord is reimbursed through a condemnation awardattorneys’ fees, the proceeds of insurance or otherwise, but only to the extent of any such reimbursement; (viii) ground rent, if any, or any leasing commissions and other payments under any superior lease; (ix) depreciation, amortization and other, similar noncash items; (x) costs and expenses incurred in connection with negotiations or disputes with present or prospective tenants or other occupants of, or persons, firms or entities with respect to, the creationBuilding; (viii) costs incurred by Landlord due to the negligence or misconduct of Landlord or its agents, maintenancecontractors, modification licensees and employees, or negotiation the violation by Landlord of a the terms and conditions of this Lease; (ix) interest, principal points and fees on debts or amortization on any mortgage or superior lease (mortgages or in litigation with a mortgagee or ground lessor), or any other financing or refinancing and debt instrument encumbering all fees payable pursuant to such mortgages, leases, financings or refinancings including, without limitation, points, late charges and other expenses whether similar or dissimilar to the foregoing; (xi) expenses incurred to lease, license, sell, syndicate, hypothecate, transfer or otherwise dispose of the Building and/or the land thereunder or any portion of the Property (including any interest in Landlord) Building or any "air" or "development" rights (whether such rights are transferred to or from the Land on which the Building is located; (x) advertising and promotional expenditures in connection with leasing the Building, and costs of the installation of signs identifying the owner and/or manager of the land thereunder)Building; (xi) any costs relating to hazardous materials, including (without limitation) brokerage commissions, attorney's fees asbestos and disbursements, transfer and gains taxes and recording chargesthe like not resulting from actions of Tenant; (xii) damagesany charges for depreciation of the Building, attorneys' fees or equipment (except costs of and disbursements paid as a result depreciation of a judgment, settlement equipment installed or arbitration award resulting from any liability of Landlord or Landlord's agents, servants or contractorsimprovements made to reduce Operating Expenses); (xiii) any charge for Landlord’s income taxes, excess profit taxes, or franchise taxes; (xiv) Landlord’s general overhead attributable to the activities of Landlord’s officers; (xv) expenses incurred by Landlord solely in its capacity as a partnership or other business entity; (xvi) costs, fines or penalties incurred due to violation by Landlord of any laws or governmental rules and regulations, except as incurred by Landlord in successfully challenging any such law, rule or regulation for the Building or the Land; and (xvii) any costs associated and expenses paid to subsidiaries of Landlord, entities under common control with operating Landlord, or persons related to Landlord for services on or to the business of the legal entity which constitutes Landlord Building, but only to the extent that such costs and expenses exceed normal costs and expenses for such services provided by unaffiliated parties to owners of similar buildings in the same is separate Gaithersburg and apart from the cost of operating the Building (including, without limitation, forming and continuing such legal entity and tending Germantown areas. There shall not be duplication in charges to its internal accounting and legal affairs); or (xiv) costs of any services or work provided to a particular tenant Tenant by reason of the Building, but not provision setting forth Tenant’s obligation to all tenants of the Buildingreimburse Landlord for Operating Expenses and any other provision in this Lease.
Appears in 1 contract
