Cap on Controllable Operating Expenses. For purposes of calculating Tenant's Additional Rental pursuant to Article 8 of the Lease, Landlord and Tenant hereby agree that, commencing with the first full calendar year of the Lease Term, Operating Expenses (except for Uncontrollable Costs, as hereinafter defined) shall be deemed not to increase by more than four percent (4%) from one calendar year to the next calendar year, regardless of any actual increases in Operating Expenses; provided, however, in the event that in any calendar year any such increase in Operating Expenses is in fact greater than the Operating Expense Cap (any such increase in excess of the Operating Expense Cap being hereinafter collectively referred to as the "Carryover Percentage"), Landlord shall have the right to add all of the Carryover Percentage (or such portion thereof as will not produce a total increase in Operating Expenses in excess of the Operating Expense Cap) to the increases in Operating Expenses occurring over any of the following years of the Lease Term in which such increases in Operating Expenses are less than the Operating Expense Cap, on a cumulative basis until all such Carryover Percentages have been used to increase Operating Expenses for purposes of calculating Tenant's Additional Rental payable pursuant to Article 8 of the Lease. For example, if the actual increase in Operating Expenses during the second calendar year of the Lease Term is ten percent (10%) and if, for purposes of this example, the Operating Expense Cap is eight percent (8%) (thus creating a Carryover Percentage of two percent (2%), which may be carried forward to future years by Landlord), and if in the third calendar year of the Lease Term the actual increase in the Operating Expenses is six percent (6%), then during the third calendar year of the Lease Term Operating Expenses shall be deemed to increase by eight percent (8%), such eight percent (8%) increase arising from adding the six percent (6%) increase in Operating Expenses which occurred in the third calendar year to the two percent (2%) Carryover Percentage from the second calendar year. The foregoing provisions of this Section notwithstanding, Taxes, all utility costs and expenses, including, without limitation, those for electricity and other fuels and forms of power or energy, water charges, sewer and waste disposal, and the cost of all casualty, liability and other insurance applicable to the Project and Landlord's personal property used in connection with the Project (al...
Cap on Controllable Operating Expenses. Notwithstanding anything to the contrary contained in this Article 4, the aggregate Controllable Expenses (as hereinafter defined) included in Operating Expenses in any Expense Year after the 2018 Base Year shall not increase by more than five percent (5%) on an annual and compounded basis, over the actual aggregate Controllable Expenses included in Operating Expenses for any preceding Expense Year, but with no such limit on the amount of Controllable Expenses which may be included in the Operating Expenses incurred during the 2018 Base Year. For purposes of this Section 4.3.4, “Controllable Expenses” shall mean all Operating Expenses except: (i) costs of utilities; (ii) any and all assessments, including assessment districts and government-mandated charges with respect to the Building or Real Property, or any part thereof; (iii) insurance carried by Landlord with respect to the Real Property and/or the operation thereof; and (iv)costs of capital expenditures, including, without limitation, costs of capital improvements, capital alterations, and capital repairs. The provisions of this Section 4.3.4 do not apply to the Tax Expenses.
Cap on Controllable Operating Expenses. Notwithstanding anything to the contrary set forth in this Lease, Landlord agrees that Tenant’s obligation to pay increases in controllable Operating Expenses in any Operating Period shall not exceed five percent (5%) over the controllable Operating Expenses payable in the preceding Operating Period, determined on a cumulative basis throughout the Term. For the purposes of this Lease, “controllable” Operating Expenses include all Operating Expenses other than the cost of all utility services provided to the Project, insurance premiums and any taxes included in Operating Expenses. For purposes of clarity, there is no cap on the amount of Taxes payable by Tenant.
Cap on Controllable Operating Expenses. Effective as of January 1, 2015, Controllable Operating Expenses (hereinafter defined) that may be included in Operating Expenses in any year of the Term shall not exceed one hundred six percent (106%) (the “Controllable Expense Cap”) of Controllable Operating Expenses for the calendar year 2014, calculated on a compounded and on-going basis. To illustrate the compounding component of the Controllable Expense Cap, Controllable Operating Expenses that may be included in the calculation of Operating Expenses for any calendar year after 2014 (each a "Comparison Year") shall not exceed the product of the total Controllable Operating Expenses for the calendar year 2014 and the following percentages for each Comparison Year: 106% for 2015; 112.36% for 2016; 119.10% for 2017; 126.25% for 2018; and so on (without regard to what was actually incurred and subject to the remaining terms of this Section 5). As used herein, (i) the term “Controllable Operating Expenses” means all Operating Expenses (after any gross up permitted under the Lease) excluding (1) Taxes, (2) the cost of utilities, (3) insurance costs, (4) employment costs based upon the minimum wage (including benefits), (5) any costs Landlord is required to incur to comply with any rule, code, law, regulation, or ordinance adopted or promulgated after the Effective Date (or new or different interpretations of any of the foregoing adopted or promulgated after the Effective Date) of any governmental authority or agency, (6) management fees (as limited in Section 2(c) of the Lease), and (7) any expense increase arising from the unionization of any service rendered to the Project, and (ii) “on-going basis” means that, if Controllable Operating Expenses for any given Comparison Year exceeds the Controllable Expense Cap for that Comparison Year, Landlord may carry over to future Comparison Years amounts by which Controllable Operating Expenses exceeded the Controllable Expense Cap in any previous Comparison Year until fully recouped by Landlord, so long as the amount of Controllable Operating Expenses billed to Tenant in each Comparison Year never actually exceeds the Controllable Expense Cap for that Comparison Year.
Cap on Controllable Operating Expenses. Beginning with the calendar year commencing immediately after the Base Year, Controllable Operating Expenses included for purposes of determining Tenant’s Proportionate Share of Operating Expenses for any one calendar year shall not exceed 105% of Controllable Operating Expenses for the previous complete calendar year (computed on a non-cumulative and non-compounding basis), including the Base Year (and after giving effect to adjustments to reflect comparable occupancy of the Project and any new or discontinued activities included in Operating Expenses). “Controllable Operating Expenses” are all Operating Expenses excluding only (i) utilities, and (ii) capital expenditures that Landlord is permitted to include in Operating Expenses.
Cap on Controllable Operating Expenses. As of January 1 of the Base Year (the “Cap Start Date”; the period between the Cap Start Date and the expiration of the initial Term being referred to herein as the “Cap Term”), Operating Expenses shall be comprised of “Controllable Operating Expenses” and “Non-Controllable Operating Expenses.” Controllable Operating Expenses are those components of Operating Expenses that are within the exclusive discretion and control of Landlord and are not related to taxes, insurance, utilities, janitorial services, management fees, snow removal, compliance with laws, force majeure and/or collectively-bargained union wages. Non-Controllable Operating Expenses are those components of Operating Expenses that are not Controllable Operating Expenses. Notwithstanding the foregoing, for the purpose of calculating Tenant’s Share of Operating Expenses each year during the Cap Term, the items of Controllable Operating Expenses shall be deemed not to increase more than 5% (the “Cap Percentage”) per calendar year.
Cap on Controllable Operating Expenses. Until such time, if ever, as Tenant has replaced and placed into service the Air Terminal Units with air terminal units meeting the Base Building Specifications and otherwise in accordance with the terms of the Lease, as amended hereby, and placed into service, at Tenant’s sole cost and expense, Section 4.4.3 of the Original Lease is hereby amended such that “Controllable Operating Expenses” shall not include any Operating Expenses relating to the operation and maintenance of the BB HVAC System or arising from the installation of the Air Terminal Units,
Cap on Controllable Operating Expenses. Landlord agrees that, during the initial five- year Term of this Lease, in calculating Tenant's Share of Excess Expenses pursuant to Article 3, that portion of Operating Expenses which are controllable by Landlord (specifically excluding, without limitation, insurance premiums, taxes [including Property Taxes and costs of utilities) will not increase more than six percent (6%) per year, compounded annually, over the amount of such controllable Operating Expenses for the calendar year in which the Rent Commencement Date occurs.
Cap on Controllable Operating Expenses. Landlord agrees that Tenant’s share of the controllable Operating Expenses for the Building shall not escalate more than six percent (6%) per annum. For the purposes of this Lease, a controllable Operating Expense shall be defined as any expense within the reasonable control of Landlord (hereinafter known as “Controllables”), such as expenses for which the Landlord may obtain a competitive bid for materials or services, the salaries of employees, management fees, and service contracts, but specifically excluding, taxes, insurance, snow removal, utilities, or any other services for which Landlord does not control the rates or costs. EXHIBIT D
Cap on Controllable Operating Expenses. Landlord hereby agrees that "Controllable Operating Expenses" (all expenses other than ad valorem and non-ad valorem real estate taxes, Building insurance and utilities) shall not increase by more than six (6%) percent per year over the previous year's actual Controllable Operating Expenses, cumulative during the Term hereof, and any renewal terms. Landlord's actual costs for uncontrollable operating expenses (i.e. real estate taxes, Building insurance and utilities) shall be passed through to Tenant on a pro-rata basis. Additionally, any expenses deferred during the first year of operation of the Building because of construction warranties (i.e. HVAC service contracts, elevator service contracts, fire/security service contracts, etc.) will be added back to the operating expenses prior to determining whether or not the controllable operating expense cap has been exceeded.
