Increase in Operating Costs. Tenant shall, for each calendar year after the year in which the Base Year Operating Charges (as hereinafter defined) are determined, pay to Landlord, as additional rent, two and 50/100 percent (2.50%) (being Tenant's agreed-upon proportionate share) of the increase during the term of this Lease in Annual Operating Charges (as hereinafter defined) over the Base Year Operating Charges. The Annual Operating Charges for any calendar year are hereby defined as the sum of the following costs and expenses: (i) gas, electricity, water, sewer and other utility charges (including surcharges) of whatever nature, (ii) insurance premiums, (iii) building personnel costs, including, but not limited to, salaries, wages, fringe benefits and other direct and indirect costs of engineers, superintendents, watchmen, porters and any other building personnel, (iv) costs of service and maintenance contracts, including, but not limited to, chillers, boilers, controls, elevators, mail chute, windows, janitorial and general cleaning, security services, and management fees, (v) all other maintenance and repair expenses and supplies which are deducted by Landlord for such calendar year in computing its Federal income tax liability, (vi) any other costs and expenses (i.e., items which are not capital improvements) incurred by Landlord in operating the Building, including ground rent, if any, and principal and interest payments, in excess of the amount paid during the Base Year on the permanent loan,* (vii) the cost of any additional services not provided to the Building at the Lease Commencement Date but thereafter provided by Landlord in the prudent management of the Building, and (viii) the cost of any capital improvements which are made by Landlord after completion of initial construction of the Building; provided, however, that the cost of each such capital improvement, together with any financing charges incurred in connection therewith, or imputed financing charge if the improvement is not financed by borrowing shall be amortized in constant annual payments over the useful life thereof and only that portion thereof attributable to such calendar year shall be included in the Annual Operating Charges for such calendar year.** Annual Operating Charges shall not include (i) principal payments or interest payments in an amount equal to the Base Year payments, on any permanent mortgages, (ii) leasing commissions payable by Landlord or (iii) deductions for depreciation of the Building. The Base Year Operating Charges are hereby defined as the Annual Operating Charges for the calendar year 1988. At any time or times after the year in which the Base Year Operating Charges are reasonably determined or estimated, Landlord may submit to Tenant a statement of Landlord's estimate of the increase of the Annual Operating Charges for the current calendar year over the Base Year Operating Charges, and within thirty (30) days after the delivery of such statement, Tenant shall begin paying to Landlord, as additional monthly rent due and payable on the first day of each month, an amount equal to one-twelfth (1/12th) of the amount determined to be Tenant's aforesaid percentage of the increase in the Annual Operating Charges. Within ninety (90) days after the expiration of each calendar year in which Tenaxx'x xonthly rent is increased pursuant to this paragraph 3(c), Landlord shall, upon the request of Tenant, submit a statement showing the determination of the total increase in Annual Operating Charges for such calendar year over the Base Year Operating charges, and Tenaxx'x xroportionate share of such increase. If such statement shows that Tenaxx'x xonthly payments pursuant to this paragraph 3(c) exceeded Tenant's share of the actual increase in Annual Operating Charges for the preceding calendar year, then Tenant may deduct such overpayment from its next payment or payments of monthly rent. If such statement shows that Tenaxx'x xhare of the actual increase in Annual Operating Charges exceeded Tenant's monthly payments for the preceding calendar year, then Tenant shall pay the total amount of such deficiency to Landlord with the next payment of rent due hereunder after receipt of this statement. In the event that the Lease Expiration Date is not December 31st, the increase in Annual Operating Charges to be paid by Tenant for the calendar year in which the Lease Expiration Date occurs shall be determined by multiplying the amount of Tenant's share thereof for the full calendar year by a fraction, the numerator of which shall be the number of days prior to the Lease Expiration Date during such calendar year and the denominator of which shall be 365. * provided that the annual increase attributable to ground rent, principal and interest shall not exceed one half (1/2) the escalation provided for under paragraph 3(e). ** Notwithstanding, Landlord shall limit capital improvements.
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Increase in Operating Costs. Tenant shall, for each calendar year after the year in which the Base Year Operating Charges (as hereinafter defined) are determined, shall pay to Landlord, as additional rent, two and 50/100 Landlord fifty-three one hundredths of a percent (2.50.53%) (being Tenant's agreed-the approximate and agreed upon proportionate shareproportion which the floor area of the premises bears to the total rentable office floor area above grade of the Building) of the increase during the term of this Lease in Annual Operating Charges (as hereinafter defined) over the Base Year Operating ChargesCharges (as hereinafter defined). The Annual Operating Charges for any calendar year are hereby defined as the sum of the following costs and expenses: (i) gas, electricity, water, sewer and other utility charges (including surcharges) of whatever nature, (ii) insurance premiumsinsurance, (iii) building personnel costs, including, but not limited to, salaries, wages, fringe benefits and other direct and indirect costs of engineers, superintendents, watchmen, porters and any other building personnel, (iv) costs of service and maintenance contracts, including, but not limited to, chillers, boilers, controls, elevators, mail chute, windowswindow, janitorial and general cleaning, security services, and management feesfee, (v) all other maintenance and repair expenses and supplies which are deducted by Landlord for such calendar year in computing its it Federal income Income tax liability, (vi) any other costs and expenses (i.e., i.e. items which are not capital improvements) incurred by Landlord in operating the Building, including ground rent, if any, and principal and interest payments, in excess of the amount paid during the Base Year on the permanent loan,* (vii) the cost of any additional services not provided to the Building at the Lease Commencement Date but thereafter provided by Landlord in the prudent management of the Building. If, and after determination of the Base Operating Charges, Landlord installs energy saving devises designed to reduce the level of consumption of one or more utility services provided in the Building, then for purposes of subsection (viiii) of this Paragraph 3(c), the charges for each such affected utility service shall be the lesser of either the actual cost of such utility service plus the amortized cost of purchasing and installing the energy saving device (as used by Landlord for federal income tax purposes), or the present cost of providing the same level of such utility service as was consumed in the twelve (12) month period immediately preceding the installation of the energy saving device(s) (level of service multiplied by present rate charges for such service). In the event that any capital improvements business, rent or other taxes which are made by Landlord after completion of initial construction now or hereafter levied upon Tenant's use or occupancy of the Building; providedpremises or Tenant's business at the premises or on Landlord by virtue of Tenant's occupancy of the premises, howeverare enacted, changed or altered so that any of such taxes are levied against Landlord or the cost mode of each collection of such capital improvementtaxes is changed so that Landlord is responsible for collection or payment of such taxes, together with any financing charges incurred in connection therewith, or imputed financing charge if the improvement is not financed by borrowing and all such taxes shall be amortized in constant annual payments over the useful life thereof and only that portion thereof attributable deemed to such calendar year shall be included in a part of the Annual Operating Charges for such calendar year.** and Tenant shall pay the taxes that would otherwise be imposed on it to Landlord. Annual Operating Charges shall not include (i) principal payments or interest payments in an amount equal to the Base Year payments, on any permanent mortgagesencumbrances, (ii) leasing commissions payable by Landlord or Landlord, (iii) deductions for depreciation of the BuildingBuilding or (iv) capital improvements which are not deducted by Landlord in computing its Federal Income tax liability. The Base Year Operating Charges are hereby defined as the Annual Operating Charges for the later to occur of (i) the calendar year 1988in which the Lease Commencement Date occurs or (ii) or calendar year 1997. At any time or times after the year in which the Base Year Operating Charges are reasonably determined or estimateddetermined, Landlord may submit to Tenant a statement of Landlord's an estimate of the increase of the Annual Operating Charges for the current calendar year over the Base Year Operating Charges, Charges and within thirty (30) days after the delivery of such statement, and each month thereafter, Tenant shall begin paying will pay to Landlord, as additional monthly rent due and payable on the first day of each monthrent, an amount equal to one-twelfth (1/12th) of the amount determined to be Tenant's aforesaid percentage of the increase increases in the Annual Operating Charges. Within ninety (90) days after the expiration of each calendar year in which Tenaxx'x xonthly Tenant's monthly rent is increased pursuant to this paragraph 3(c)paragraph, Landlord shallmay submit, or upon the request of Tenant, submit Landlord shall submit, a statement showing the determination of the total increase in Annual Operating Charges for such calendar year over the Base Year Operating charges, and Tenaxx'x xroportionate Tenant's proportionate share of such increase. If such statement shows that Tenaxx'x xonthly payments pursuant to this paragraph 3(c) exceeded Tenant's share of the actual increase in Annual Operating Charges for the preceding calendar year, then Tenant may deduct such overpayment from its next payment or payments of monthly rent. If such statement shows that Tenaxx'x xhare of the actual increase in Annual Operating Charges exceeded Tenant's monthly payments for the preceding calendar year, then Tenant shall pay the total amount of such deficiency to Landlord with the next payment of rent due hereunder after receipt of this statement. In the event that the Lease Expiration Date is not December 31st, the increase in Annual Operating Charges to be paid by Tenant for the calendar year in which the Lease Expiration Date occurs shall be determined by multiplying the amount of Tenant's share thereof for the full calendar year by a fraction, the numerator of which shall be the number of days prior to the Lease Expiration Date during such calendar year and the denominator of which shall be 365. * provided that the annual increase attributable to ground rent, principal and interest shall not exceed one half (1/2) the escalation provided for under paragraph 3(e). ** Notwithstanding, Landlord shall limit capital improvements.such
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Increase in Operating Costs. Tenant shall, for each calendar year after the year in which the Base Year Operating Charges (as hereinafter defined) are determined, shall pay to Landlord, as additional rent, two and 50/100 Landlord SEVEN AND ONE HALF percent (2.507.5%) (being Tenant's agreed-the approximate and agreed upon proportionate shareproportion the floor area of the premises bears to the total rentable office floor area above grade of the Building) of the increase during the term of this Lease in Annual Operating Charges (as hereinafter defined) over the Base Year Operating ChargesCharges (as hereinafter defined). The Annual Operating Charges for any calendar year are hereby defined as the sum of the following costs and expenses: (i) gas, electricity, water, sewer and other utility charges (including surcharges) of whatever nature, (ii) insurance premiumsinsurance, (iii) building personnel costs, including, but not limited to, salaries, wages, fringe benefits and other direct and indirect costs of engineers, superintendents, watchmen, porters and any other building personnel, (iv) costs of service and maintenance contracts, including, but not limited to, chillers, boilers, controls, elevators, mail chute, windowswindow, janitorial and general cleaning, security services, and management feesfee, (v) all other maintenance and repair expenses and supplies which are deducted by Landlord for such calendar year in computing its Federal income tax liability, (vi) any other costs and expenses (i.e., i.e. items which are not capital improvements) incurred by Landlord in operating the Building, including ground rent, if any, and principal and interest payments, in excess of the amount paid during the Base Year on the permanent loan,* (vii) the cost of any additional services not provided to the Building at the Lease Commencement Date but thereafter provided by Landlord in the prudent management of the Building. If, and after determination of the Base Operating Charges, Landlord installs energy saving devices designed to reduce the level of consumption of one or more utility services provided in the Building, then for purposes of subsection (viiii) of this ¶3(c), the charges for each such affected utility service shall be the lesser of either the actual cost of such utility service plus the amortized cost of purchasing and installing the energy saving device (as used by Landlord for federal income tax purposes), or the present cost of providing the same level of such utility service as was consumed in the twelve (12) month period immediately preceding the installation of the energy saving device(s) (level of service multiplied by present rate charges for such service). In the event that any capital improvements business, rent or other taxes which are made by Landlord after completion of initial construction now or hereafter levied upon Tenant’s use or occupancy of the Building; providedpremises or Tenant’s business at the premises or on Landlord by virtue of Tenant’s occupancy of the premises, howeverare enacted, changed or altered so that any of such taxes are levied against Landlord or the cost mode of each collection of such capital improvementtaxes is changed so that Landlord is responsible for collection or payment of such taxes, together with any financing charges incurred in connection therewith, or imputed financing charge if the improvement is not financed by borrowing and all such taxes shall be amortized in constant annual payments over the useful life thereof and only that portion thereof attributable deemed to such calendar year shall be included in a part of the Annual Operating Charges for such calendar year.** and Tenant shall pay the taxes that would otherwise be imposed on it to Landlord. Annual Operating Charges shall not include (i) principal payments or interest payments in an amount equal to the Base Year payments, on any permanent mortgages, deeds of trust or other financing encumbrances, (ii) leasing commissions payable by Landlord or Landlord, (iii) deductions for depreciation of the BuildingBuilding or (iv) capital improvements which are not deducted by Landlord in computing its Federal income tax liability. The Base Year Operating Charges are hereby defined as the Annual Operating Charges for the later to occur of (i) the calendar year 1988in which the Lease Commencement Date occurs or (ii) calendar year 1984. At any time or times after the year in which the Base Year Operating Charges are reasonably determined or estimateddetermined, Landlord may submit to Tenant a statement of Landlord's an estimate of the increase of the Annual Operating Charges for the current calendar year over the Base Year Operating Charges, Charges and within thirty (30) days after the delivery of such statement, and each month thereafter, Tenant shall begin paying will pay to Landlord, as additional monthly rent due and payable on the first day of each monthrent, an amount equal to one-twelfth (1/12th) of the amount determined to be Tenant's ’s aforesaid percentage of the increase increases in the Annual Operating Charges. Within ninety (90) days after the expiration of each calendar year in which Tenaxx'x xonthly the Tenant’s monthly rent is increased pursuant to this paragraph 3(c)paragraph, Landlord shallmay submit, or upon the request of Tenant, submit Landlord shall submit, a statement showing the determination of the total increase in Annual Operating Charges for such calendar year over the Base Year Operating charges, and Tenaxx'x xroportionate Tenant’s proportionate share of such increase. If such statement shows that Tenaxx'x xonthly Tenant’s monthly payments pursuant to this paragraph 3(c) exceeded Tenant's ’s share of the actual increase in Annual Operating Charges incurred for the preceding calendar year, then Tenant may deduct such overpayment from its next payment or payments of monthly rent. If such statement shows that Tenaxx'x xhare Tenant’s share of the Landlord’s actual increase in Annual Operating Charges exceeded Tenant's ’s monthly payments for the preceding calendar year, then Tenant shall pay the total amount of such deficiency to Landlord Landlord. Such deficiency shall constitute additional rent hereunder due and payable with the next payment first monthly installment of rent due hereunder after receipt rendition of this said statement, or if payments have been accelerated pursuant to ¶17(b) (iv) below, within ten (10) days after rendition of such statement. In the event that the Lease Expiration Date is not December 31st, the increase in Annual Operating Charges to be paid by Tenant for the calendar year in which the Lease Expiration Date occurs shall be determined by multiplying the amount of Tenant's ’s share thereof for the full calendar year by a fraction, the numerator of which shall be fraction with the number of days during such calendar year prior to the Lease Expiration Date during such calendar year as the numerator, and with 365 as the denominator of which shall be 365. * provided that the annual increase attributable to ground rent, principal and interest shall not exceed one half (1/2) the escalation provided for under paragraph 3(e). ** Notwithstanding, Landlord shall limit capital improvementsdenominator.
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Increase in Operating Costs. Notwithstanding anything contained herein, the annual operating charges shall be limited to costs which are applicable to the First Floor and First Basement only. Landxxxx xxxees Tenant shall have right to inspect Landlord's books to verify increase in operating charges at reasonable times and reasonable intervals. See Addendum Paragraph 33. Tenant shall, for each calendar year after the year in which the Base Year Operating Charges (as hereinafter hereunder defined) are determined, pay to Landlord, as additional rent, Forty-eight and twenty-two and 50/100 hundredths percent (2.5048.22%) (being Tenant's agreed-Tenaxx'x xgreed upon proportionate share) of the increase during the term of this Lease in Annual Operating Charges (as hereinafter defined) over the Base Year Operating Charges. The Annual Operating Charges for any calendar year are hereby defined as the sum of the following costs and expenses: (i) gas, electricity, water, sewer and other utility charges (including surcharges) of whatever nature, (ii) insurance premiums, (iii) building personnel costs, including, but not limited to, salaries, wages, fringe benefits and other direct and indirect costs of engineers, superintendents, watchmen, porters and any other building personnel, (iv) costs of service and maintenance contracts, including, but not limited to, chillers, boilers, controls, elevators, mail chute, windows, janitorial and general cleaning, security services, and management fees, (v) all other maintenance and repair expenses and supplies which are deducted by Landlord for such calendar year in computing its Federal income tax liability, (vi) any other costs and expenses (i.e., i.e. items which are not capital improvements) incurred by Landlord in operating the Building, including ground rent, if any, and principal and interest payments, in excess of the amount paid during the Base Year on the permanent loan,* Year, (vii) the cost of any additional services not provided to the Building at the Lease Commencement Date but thereafter provided by Landlord in the prudent management of the Building, and (viii) the cost of any capital improvements which are made by Landlord after completion of initial construction of the Building; provided, however, that the cost of each such capital improvement, together with any financing charges incurred in connection therewith, or imputed financing charge if the improvement is not financed by borrowing shall be amortized in constant annual payments over the useful life thereof and only that portion thereof attributable to such calendar year shall be included in the Annual Operating Charges for such calendar year.** . Annual Operating Charges shall not include (i) principal payments or interest payments in an amount equal to the Base Year interest payments, on any permanent mortgages, deeds of trust or other financing encumbrances, (ii) leasing commissions payable by Landlord or (iii) deductions for depreciation of the Building. The Base Year Operating Charges are hereby defined as the Annual Operating Charges for the later to occur of (i) calendar year 19881983 or (ii) the calendar year in which the Lease Commencement Date occurs; provided, however, that in either case the Base Year Operating Charges shall be adjusted, if necessary, to reflect the Annual Operating Charges for such calendar year as if the Building were at least ninety percent (90%) occupied for the entire calendar year. At any time or times after the year in which the Base Year Operating Charges are reasonably determined or reasonably estimated, Landlord may submit to Tenant a statement of Landlord's estimate of the increase of the Annual Operating Charges for the current calendar year over the Base Year Operating Charges, and within thirty (30) days after the delivery of such statement, Tenant shall begin paying to Landlord, as additional monthly rent due and payable on the first day of each month, an amount equal to one-twelfth (1/12th) of the amount determined to be Tenant's aforesaid percentage of the increase in the Annual Operating Charges. Within ninety (90) days after the expiration of each calendar year in which Tenaxx'x xonthly rent is increased pursuant to this paragraph Paragraph 3(c), Landlord shall, upon the request of Tenant, submit a statement showing the determination of the total increase in Annual Operating Charges for such calendar year over the Base Year Operating chargesCharges, and Tenaxx'x xroportionate share of such increase. If such statement shows that Tenaxx'x xonthly payments pursuant to this paragraph Paragraph 3(c) exceeded Tenant's share of the actual increase in Annual Operating Charges for the preceding calendar year, then Tenant may deduct such overpayment from its next payment or payments of monthly rent. If such statement shows that Tenaxx'x xhare of the actual increase in Annual Operating Charges exceeded Tenant's monthly payments for the preceding calendar year, then Tenant shall pay the total amount of such deficiency to Landlord with the next payment of rent due hereunder after receipt of this the statement. In the event that the Lease Expiration Date is not December 31st, the increase in Annual Operating Charges to be paid by Tenant for the calendar year in which the Lease Expiration Date occurs shall be determined by multiplying the amount of Tenant's share thereof for the full calendar year by a fraction, the numerator of which shall be the number of days during such calendar year prior to the Lease Expiration Date during such calendar year Date, and the denominator of which shall be 365. * provided that the annual increase attributable to ground rent, principal and interest shall not exceed one half (1/2) the escalation provided for under paragraph 3(e). ** Notwithstanding, Landlord shall limit capital improvements.
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