Common use of Definition of Operating Costs Clause in Contracts

Definition of Operating Costs. “Operating Costs” means, for each calendar year (or portion thereof) during the Use Period, the aggregate of all costs, expenses, and liabilities of every kind or nature paid or incurred by Tenant in connection with the use/ownership, operation and maintenance of the “Project” (being the Property, all underlying land, together with driveways, parking facilities, warehouse and loading dock areas, roadways and any other similar improvements and easements associated with the foregoing or operation thereof as well as all Shared Assets and the warehouse management system (“WMS”) components used in the overall operation of the warehouse, but excluding those components of the WMS system used exclusively for Tenant’s operations). Operating Costs include, but are not limited to, the following costs determined in accordance with generally accepted accounting principles consistently applied: (A) all rent due under the Lease (including all amounts of base rent and additional pass through charges from Landlord regardless of whether such amounts are designated as rental payments, operating costs or financial liabilities of Tenant under the Lease) plus property management and/or administrative fees and expenses that are related to management of the Project; (B) all supplies and materials used in the operation, maintenance, repair, replacement, and security of the Project; (C) cost of all association fees, landscaping, janitorial services, waste disposal, and utilities (including fuel, gas, electricity, water, sewer, and other services) for the Property, unless the same are separately metered and billed by such service provider directly to User or 3PL as reasonably determined by Tenant or charged by Landlord; (D) repairs, replacements, and general maintenance of the Project including but not limited to paving and parking areas, roads, roof repairs, alleys and driveways, trash collection, sweeping and removal of trash for the common areas, mowing and snow removal, landscaping and exterior painting, the cost of maintaining utility lines, fire sprinklers and fire protection systems, exterior lighting, Shared Assets and mechanical and plumbing systems serving the Project; (E) service, maintenance and management contracts for the operation, maintenance, management, repair, replacement, and security of the Project (including but not limited to alarm service, window cleaning, and service of the Shared Assets); (F) costs of professional services rendered for the general benefit of the Project; (G) environmental insurance or environmental management fees to the extent required by the Lease or otherwise prudent; (H) the cost of any insurance deductibles for insurance required to be maintained by Tenant; (I) all insurance expenses provided the same are related to insuring the Property and/or Shared Assets; (J) depreciation of any component of the Project and (K) costs for improvements made to the Project which, although capital in nature, are expected to reduce the normal operating costs (including but not limited to all utility costs) of the Project, as amortized using a commercially reasonable interest rate over the time period reasonably estimated by Tenant or as required by the Lease to recover the costs thereof taking into consideration the anticipated cost savings, as determined by Tenant, using its good faith, commercially reasonable judgment or as required by the Lease, as well as capital improvements made in order to comply with any Law hereafter promulgated by any governmental authority or any new interpretations of any Law hereafter rendered with respect to any existing Law, as amortized using a commercially reasonable interest rate over the useful economic life of such improvements as determined by Landlord or Tenant, in its reasonable discretion. As used in this Lease, the term “Law” refers to any federal, state, and local laws, ordinances, rules and regulations, court orders, governmental directives, governmental orders and all interpretations of the foregoing, and all restrictive covenants affecting this Agreement or the Project. Notwithstanding the foregoing, User and Tenant agree that the following costs are specifically excluded from Operating Costs: (i) any costs relating to the Tenant’s Assets, and (ii) insurance costs that are not related to insuring the Property or Shared Assets.

Definition of Operating Costs. “Operating Costs” means, for each calendar year (or portion thereof) during the Use Period, the aggregate of all costs, expenses, and liabilities of every kind or nature paid or incurred by Tenant in connection with the use/ownership, operation and maintenance of the “Project” (being the Property, all underlying land, together with driveways, parking facilities, warehouse and loading dock areas, roadways and any other similar improvements and easements associated with the foregoing or operation thereof as well as all Shared Assets and the warehouse management system (“WMS”) components used in the overall operation of the warehouse, but excluding those components of the WMS system used exclusively for Tenant’s operations). Operating Costs include, but are not limited to, the following costs determined in accordance with generally accepted accounting principles consistently applied: (A) all rent due under the Lease (including all amounts of base rent and additional pass through charges from Landlord regardless of whether such amounts are designated as rental payments, operating costs or financial liabilities of Tenant under the Lease) plus property management and/or administrative fees and expenses that are related to management of the Project; (B) all supplies and materials used in the operation, maintenance, repair, replacement, and security of the Project; (C) cost of all association fees, landscaping, janitorial services, waste disposal, and utilities (including fuel, gas, electricity, water, sewer, and other services) for the Property, unless the same are separately metered and billed by such service provider directly to User or 3PL as reasonably determined by Tenant or charged by Landlord; (D) repairs, replacements, and general maintenance of the Project including but not limited to paving and parking areas, roads, roof repairs, alleys and driveways, trash collection, sweeping and removal of trash for the common areas, mowing and snow removal, landscaping and exterior painting, the cost of maintaining utility lines, fire sprinklers and fire protection systems, exterior lighting, Shared Assets and mechanical and plumbing systems serving the Project; (E) service, maintenance and management contracts for the operation, maintenance, management, repair, replacement, and security of the Project (including but not limited to alarm service, window cleaning, and service of the Shared Assets); (F) costs of professional services rendered for the general benefit of the Project; (G) environmental insurance or environmental management fees to the extent required by the Lease or otherwise prudent; (H) the cost of any insurance deductibles for insurance required to be maintained by Tenant; (I) all insurance expenses provided the same are related to insuring the Property and/or Shared Assets; (J) depreciation of any component of the Project and (K) costs for improvements made to the Project which, although capital in nature, are expected to reduce the normal operating costs (including but not limited to all utility costs) of the Project, as amortized using a commercially reasonable interest rate over the time period reasonably estimated by Tenant or as required by the Lease to recover the costs thereof taking into consideration the anticipated cost savings, as determined by Tenant, using its good faith, commercially reasonable judgment or as required by the Lease, as well as capital improvements made in order to comply with any Law hereafter promulgated by any governmental authority or any new interpretations of any Law hereafter rendered with respect to any existing Law, as amortized using a commercially reasonable interest rate over the useful economic life of such improvements as determined by Landlord or Tenant, in its reasonable discretion. As used in this Lease, the term “Law” refers to any federal, state, provincial and local laws, ordinances, rules and regulations, court orders, governmental directives, governmental orders and all interpretations of the foregoing, and all restrictive covenants affecting this Agreement or the Project. Notwithstanding the foregoing, User and Tenant agree that the following costs are specifically excluded from Operating Costs: (i) any costs relating to the Tenant’s Assets, and (ii) insurance costs that are not related to insuring the Property or Shared Assets.