Operating Cost Escalation. With respect to the First Fiscal Year for Tenant's Paying Operating Cost Escalation, or fraction thereof, and any Fiscal Year or fraction thereafter, Tenant shall pay to Landlord, as additional rent, Operating Cost Escalation (as defined below), if any, on or before the thirtieth day following receipt by Tenant of Landlord's Statement (as defined below). As soon as practicable after the end of each Fiscal Year ending during the Term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("Landlord's Statement") in reasonable detail and according to usual accounting practices certified by Landlord and showing for the preceding Fiscal Year or fraction thereof, as the case may be, Landlord's Operating Costs. Upon request, Landlord will provide access to Tenant, at reasonable times, to Landlord's books and records relating to the preparation of Landlord's statement, and Tenant may inspect and copy such records as are necessary to verify the accuracy of the Landlord's annual statement. In the event of a dispute, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For the purpose of this Paragraph 4.2, Landlord's Operating Costs shall exclude the interest and amortization on mortgages for the Building and Lot or leasehold For this purpose of this Paragraph 4.2, Landlord's Operating Costs shall include, without limitation: real estate taxes on the Building and Lot; installments and interest on assessments for public betterments or public improvements (other than those if any, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent to the Lot); expenses of any proceedings for abatement of taxes and If the management fee is reduced by reason of a tenant's default in the payment of fixed or additional rent, Landlord shall reduce the Annual Estimated Operating Costs by the amount of such reduction in the management fee. In case of services which are not rendered to all areas on a comparable basis, the proportion allocable to the Premises shall be the same proportion which the Rentable Floor Area of Tenant's Space bears to the total rentable floor area to which such service is so rendered (such latter area to be determined in the same manner as the Total Rentable Floor Area of the Building).
Appears in 2 contracts
Samples: Attornment Agreement (Aspect Medical Systems Inc), Attornment Agreement (Aspect Medical Systems Inc)
Operating Cost Escalation. With respect If during the Lease Term the Operating Costs incurred for the Building in which the Demised Premises are located, Complex and Parcel, for any Lease Year or proportionate part thereof if the Lease Term expires prior to the First Fiscal expiration of a Lease Year for Tenant's Paying (herein the “Comparison Period”) shall be greater than the Base Operating Cost EscalationCosts (adjusted proportionately if the Comparison Period is less than a Lease Year), or fraction thereof, and any Fiscal Year or fraction thereafter, Tenant then Lessee shall pay to LandlordLessor, as additional rentAdditional Rent, Operating Cost Escalation (as defined below), if any, on or before the thirtieth day following receipt by Tenant Lessee’s Percentage of Landlord's Statement (as defined below). As soon as practicable after the end of each Fiscal Year ending during the Term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("Landlord's Statement") in reasonable detail and according to usual accounting practices certified by Landlord and showing for the preceding Fiscal Year or fraction thereof, as the case may be, Landlord's all such excess Operating Costs. Upon request, Landlord will provide access to Tenant, at reasonable times, to Landlord's books and records relating to the preparation of Landlord's statement, and Tenant may inspect and copy such records as are necessary to verify the accuracy of the Landlord's annual statement. In the event of a dispute, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For the purpose of this Paragraph 4.2, Landlord's Operating Costs shall exclude the interest and amortization on mortgages for the Building and Lot or leasehold For this purpose of this Paragraph 4.2, Landlord's Operating Costs shall include, without by way of illustration and not of limitation: real estate personal property taxes; management fees; labor, including all wages and salaries; social security taxes, and other taxes on which may be levied against Lessor upon such wages and salaries; employee benefits and payroll taxes; accounting and legal fees; any sales, use or service taxes incurred in connection with the Building operation of the Complex or Parcel; supplies; repairs and Lotmaintenance; installments maintenance and interest on assessments for public betterments or public improvements service contracts; the cost of security and alarm services; license permits and inspection fees; painting; wall and window washing; laundry and towel service; tools and equipment (other than those if any, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent to the Lot); expenses of any proceedings for abatement of taxes and If the management fee is reduced by reason of a tenant's default in the payment of fixed or additional rent, Landlord shall reduce the Annual Estimated Operating Costs by the amount of such reduction in the management fee. In case of services which are not rendered required to be capitalized for Federal income tax purposes); fire and other insurance; the cost of any loss which is the responsibility of Lessor because of the existence of commercially reasonable deductibles; trash removal; lawn care; snow removal and all areas other items properly constituting direct operating costs according to standard accounting practices (hereinafter collectively referred to as the “Operating Costs”). Lessor shall be entitled to amortize and include in Operating Costs an allocable portion of the cost of capital improvement items limited to those items, including life safety systems, which are reasonably calculated to reduce operating expenses or which are required under any governmental laws, regulations or ordinances which were not applicable to the Building or Complex or Parcel at the time it was constructed. All such costs shall be amortized over the reasonable life of such improvements with interest at two (2%) percent over the prime lending rate announced as such by Chase Manhattan Bank to its most creditworthy borrowers on a comparable basisthe unamortized amount in accordance with such reasonable life and amortization schedules as shall be determined by Lessor in accordance with generally accepted accounting principles. As used in this Subsection 25(A), the proportion allocable to the Premises Base Period Costs for Operating Costs shall be as defined on the same proportion which the Rentable Floor Area of Tenant's Space bears to the total rentable floor area to which such service is so rendered (such latter area to be determined in the same manner as the Total Rentable Floor Area of the Building)Reference Page.
Appears in 2 contracts
Samples: Lease Agreement (Wave2Wave Communications, Inc.), Lease Agreement (Wave2Wave Communications, Inc.)
Operating Cost Escalation. With respect to the First Fiscal Year for Tenant's Paying Operating Cost Escalation, or fraction thereof, and any Fiscal Year or fraction thereafterthereafter during the Term, Tenant shall pay to Landlord, as additional rent, Operating Cost Escalation (as defined below), if any, on or before the thirtieth day following receipt by Tenant of Landlord's Statement (as defined below). As soon as practicable after the end of each Fiscal Year ending during the Term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("Landlord's Statement") in reasonable detail and according to usual generally accepted accounting practices principles, consistently applied, certified by Landlord Landlord, and showing for the preceding Fiscal Year or fraction thereof, as the case may be, "Landlord's Operating Costs. Upon request, Landlord will provide access to Tenant, at reasonable times, to Landlord's books and records relating to the preparation of Landlord's statement, and Tenant may inspect and copy such records as are necessary to verify the accuracy of the Landlord's annual statement. In the event of a dispute, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For the purpose of this Paragraph 4.2, Landlord's Operating Costs shall exclude ," EXCLUDING the interest and amortization on mortgages for the Building and Lot or leasehold For this purpose interests therein and the cost of this Paragraph 4.2special services rendered to tenants (including Tenant) for which a special charge is made, Landlord's Operating Costs shall includeBUT INCLUDING, without limitation: real estate taxes on the Building Building, the Lot and Lotthe Common Areas of the Park (including without limitation the sewer treatment plant servicing the Park); installments and interest on assessments for public betterments or public improvements (other than those if any, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent to the Lot)improvements; expenses of any proceedings for abatement of taxes and If the management fee is reduced by reason assessments with respect to any Fiscal Year or fraction of a tenantFiscal Year; premiums for insurance required to be maintained by Landlord pursuant to this Lease; compensation and all fringe benefits, workmen's default compensation, insurance premiums and payroll taxes paid by Landlord to, for or with respect to all persons engaged in the payment operating, maintaining, or cleaning of fixed the Building and Lot; steam, water, sewer, electric, gas, telephone, and other utility charges not billed directly to tenants by Landlord or additional rentthe utility, but not including the cost to Landlord shall reduce the Annual Estimated Operating Costs of electricity furnished for lighting, electrical facilities, equipment, machinery, fixtures and appliances used by the amount of such reduction Tenant in the management fee. In case of services which are not rendered to all areas on a comparable basis, the proportion allocable to the Premises shall be the same proportion which the Rentable Floor Area of Tenant's Space bears (other than Building heating, ventilating and air conditioning equipment) as set forth in Paragraph VII of Exhibit D; costs of building and cleaning supplies and equipment (including rental); cost of maintenance, cleaning and repairs; cost of snow plowing or removal, or both, and care of landscaping; payments to independent contractors under service contracts for cleaning, operating, managing, maintaining and repairing the total rentable floor area Building and Lot (which payments may be to which such service is so rendered affiliates of Landlord provided the same are at reasonable rates consistent with similar contracts with unaffiliated third parties); the Building's pro rata share (as hereinafter defined) of the cost of operating, maintaining and repairing the Common Areas of the Park (such latter as, but not limited to, snow plowing, sanding, landscaping, common area to be determined and street lighting, security, management and sewer treatment plant maintenance); and all other reasonable and necessary expenses paid in connection with the same manner as the Total Rentable Floor Area operation, cleaning, maintenance, and repair of the BuildingBuilding and Lot, or either, and properly chargeable against income, it being agreed that if Landlord installs a new or replacement capital item for the purpose of reducing Landlord's Operating Costs, the costs thereof as reasonably amortized by Landlord over the useful life in years of the capital item so installed in accordance with generally accepted accounting principles ("GAAP")., consistently
Appears in 2 contracts
Samples: Attornment Agreement (Unisphere Solutions Inc), Attornment Agreement (Unisphere Networks Inc)
Operating Cost Escalation. With respect to the First Fiscal Year for Tenant's Paying Operating Cost Escalation, or fraction thereof, and any Fiscal Year (as such term shall refer to the successive twelve (12) month periods commencing on January 1st and ending on December 31st included within the Term) or fraction thereafter, Tenant shall pay to Landlord, as additional rent, Operating Cost Escalation (as defined below), if any, on or before the thirtieth (30th) day following receipt by Tenant of Landlord's Statement (as defined below). ) As soon as practicable after the end of each Fiscal Year ending during the Term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("Landlord's Statement") in reasonable detail and according to usual accounting accounting. practices certified by Landlord and showing for the preceding Fiscal Year or fraction thereof, as the case may be, "Landlord's Operating Costs. Upon request", Landlord will provide access to and specifying Tenant, at reasonable times, to Landlord's books and records relating "Pro Rata Share" (which such term shall refer to the preparation fraction, the numerator of Landlordwhich is the Rentable Floor Area of Tenant's statementSpace, and Tenant may inspect and copy such records as are necessary to verify the accuracy denominator of which is the Total Rentable Floor Area of the Landlord's annual statement. In the event of a disputeBuilding) for such Fiscal Year, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For the purpose of this Paragraph 4.2, Landlord's Operating Costs shall exclude EXCLUDING the interest and amortization on mortgages for the Building and Lot or leasehold For this purpose interests therein and the cost of this Paragraph 4.2special services rendered to tenants (including Tenant) for which a special charge is made, depreciation of buildings and other improvements, improvements, repairs or alterations to spaces leased to other tenants, costs of any items to the extent Landlord receives reimbursement from insurance proceeds or from a third party, and expenses for capital items other than those permitted for purposes of reducing Landlord's Operating Costs shall includepursuant to the following paragraph, BUT INCLUDING, without limitation: limitation real estate taxes on the Building and Lot; , installments and interest on assessments for public betterments or public improvements (other than those if anyimprovements, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent to the Lot); expenses of any proceedings for abatement of taxes and If the management fee is reduced by reason assessments with respect to any Fiscal Year or fraction of a tenantFiscal Year, provided, however, that any tax refunds shall be applied to reduce Landlord's default Operating Costs, premiums for insurance, compensation and all fringe benefits, workmen's compensation, insurance premiums and payroll taxes paid by Landlord to, for or with respect to all persons engaged in the payment operating, maintaining, or cleaning of fixed the Building and Lot, steam, water, sewer, electric, gas, telephone, and other utility charges not billed directly to tenants by Landlord or additional rentthe utility, but not including the cost to Landlord of electricity furnished for lighting, electrical facilities, equipment, machinery, fixtures and appliances used by Tenant in Tenant's Space (other than Building heating, ventilating and air conditioning equipment) as set forth in Paragraph VII of Exhibit "D", costs of building and cleaning supplies and equipment (including rental), cost of maintenance, cleaning and repairs, cost of snow plowing or removal, or both, and care of landscaping, payments to independent contractors under service contracts for cleaning, operating, managing (not to exceed five percent (5%) of collected gross rents of the Building), maintaining and repairing the Building and Lot (which payments may be to affiliates of Landlord provided the same are at reasonable rates consistent with the type of occupancy and the services rendered), the cost of providing amenities to the Building, and all other reasonable and necessary expenses paid in connection with the operation, cleaning, maintenance, and repair of the Building and Lot, or either, and properly chargeable against income, it being agreed that if Landlord installs a new or replacement capital item for the purpose of reducing Landlord's Operating Costs, the annual costs thereof as reasonably amortized by Landlord over the useful life of the item so installed in accordance with generally accepted accounting principles, with legal interests on the unamortized amount, shall reduce the Annual Estimated be included in Landlord's Operating Costs by the amount of such reduction in the management feeCosts. In case of services which are not rendered to all areas on a comparable basisbasis or in case service consumption vanes among tenants in the Building, the proportion allocable to the Premises shall be the same proportion which the Rentable Floor Area of Tenant's Space bears to the total rentable floor area to which such service is so rendered, or to which such disproportionate service or use is rendered (such latter area to be determined in the same manner as the Total Rentable Floor Area of the Building). Notwithstanding anything contained herein to the contrary, Tenant is not obligated to pay its Pro Rata Share of Landlord's Operating Costs which is included in Fixed Rent at such amount equal to the actual Landlord's Operating Costs for CY 2003 (approximately $7.25 per RSF, but shall only be obligated to pay the increase above such amount (i.e Operating Cost Escalation) as herein provided.
Appears in 2 contracts
Samples: Lease (Irobot Corp), Lease (Irobot Corp)
Operating Cost Escalation. With respect If the Operating Costs incurred for the Real Property for any Lease Year or Partial Lease Year during the Term will be greater than the Base Operating Costs (reduced proportionately to correspond to the First Fiscal Year for Tenant's Paying Operating Cost Escalationduration of periods less than a Lease Year), or fraction thereof, and any Fiscal Year or fraction thereafter, then Tenant shall will pay to Landlord, as additional rentAdditional Rent, Operating Cost Escalation (as defined below), if any, on or before the thirtieth day following receipt by Tenant Tenant’s Percentage of Landlord's Statement (as defined below). As soon as practicable after the end of each Fiscal Year ending during the Term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("Landlord's Statement") in reasonable detail and according to usual accounting practices certified by Landlord and showing for the preceding Fiscal Year or fraction thereof, as the case may be, Landlord's all such excess Operating Costs. Upon requestOperating Costs will include, Landlord will provide access to Tenantby way of illustration and not of limitation: personal property taxes; management fees for the Building only; labor, including all wages and salaries for those employees working at reasonable times, to Landlord's books and records relating the Building (to the preparation extent that employees work at the Building and other building(s) owned or managed by Landlord or an affiliate of Landlord's statement, such wages and Tenant salaries shall be reasonably allocated by Landlord among such buildings); social security and other taxes which may inspect be levied against Landlord upon such wages and copy such records salaries; supplies; repairs and maintenance; maintenance and service contracts; painting; wall and window washing; tools and equipment (which are not required to be capitalized for federal income tax purposes); trash removal; lawn care; snow removal and all other items properly constituting direct operating costs according to standard accounting practices (collectively referred to as are necessary to verify the accuracy “Operating Costs” in this Lease); but not including depreciation of Building or equipment; interest; income or excess profits taxes; costs of maintaining the Landlord's annual statement’s corporate existence; franchise taxes; any expenditures required to be capitalized for federal income tax purposes, unless said expenditures are for the purpose of reducing Operating Costs at the Real Property, or those which under generally applied real estate practice are expensed or regarded as deferred expenses or are required under any Legal Requirement, in which event the costs thereof shall be included. Notwithstanding anything contained herein to the contrary, any additional costs incurred by Landlord during the Calendar Year by reason of Landlord or any of its vendors entering into new labor contracts or renewals or modifications of existing labor contracts will not be included in Base Operating Costs. In the event of a disputeaddition, Tenant shall have will pay Landlord Tenant’s Percentage of all costs and expenses incurred by Landlord in connection with complying with any “homeland security” requirements and such costs and expenses will not be included in Operating Costs. If any repair, replacement or improvement within the right to conduct or have conducted an audit according to definition of Operating Costs is capitalized under generally accepted accounting principles consistently appliedprinciples, then (A) the cost of any such repair, replacement or improvement shall only be included in Operating Costs if such repair, replacement or improvement (i) is necessary to comply with any governmental or quasi-governmental law, statute, ordinance, rule, order, requirements or regulation, which Landlord is enacted or promulgated after the date hereof, (ii) is reasonably intended to reduce Operating Costs or (iii) constitutes a replacement which in Lessor’s reasonable judgment is economically prudent to make in lieu of repairs, (B) the cost thereof shall cooperate in good faith. In be amortized on a straight line basis over the event lesser of an error of five percent ten (10) years or more, Landlord shall bear all costs the useful life of such inspection and auditrepair, (C) the amount so amortized attributable to such repair, replacement or improvement shall be included in Operating Costs in each Lease Year for such portion of the amortization period which occurs during the Term, provided, however, that all amounts thereof included in Operating Costs in any Lease Year subsequent to the year paid shall have added thereto interest from the date Lessor incurred such cost. For the purpose of this Paragraph 4.2amortization purposes, Landlord's Operating Costs shall exclude the applicable interest and amortization on mortgages for the Building and Lot or leasehold For this purpose of this Paragraph 4.2, Landlord's Operating Costs shall include, without limitation: real estate taxes on the Building and Lot; installments and interest on assessments for public betterments or public improvements (other than those if any, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent to the Lot); expenses of any proceedings for abatement of taxes and If the management fee is reduced by reason of a tenant's default in the payment of fixed or additional rent, Landlord shall reduce the Annual Estimated Operating Costs by the amount of such reduction in the management fee. In case of services which are not rendered to all areas on a comparable basis, the proportion allocable to the Premises shall be the same proportion which the Rentable Floor Area of Tenant's Space bears to the total rentable floor area to which such service is so rendered two (such latter area to be determined 2) percentage points in the same manner as the Total Rentable Floor Area excess of the Building)prime rate charged by XX Xxxxxx Xxxxx Bank, or its successor, at the time of expenditure.
Appears in 1 contract
Samples: Lease (Inovio Biomedical Corp)
Operating Cost Escalation. With respect If the Operating Costs incurred for the Real Property for any Lease Year or Partial Lease Year during the Term will be greater than the Base Operating Costs (reduced proportionately to correspond to the First Fiscal Year for Tenant's Paying Operating Cost Escalationduration of periods less than a Lease Year), or fraction thereof, and any Fiscal Year or fraction thereafter, then Tenant shall will pay to Landlord, as additional rentAdditional Rent, Operating Cost Escalation (as defined below), if any, on or before the thirtieth day following receipt by Tenant Tenant’s Percentage of Landlord's Statement (as defined below). As soon as practicable after the end of each Fiscal Year ending during the Term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("Landlord's Statement") in reasonable detail and according to usual accounting practices certified by Landlord and showing for the preceding Fiscal Year or fraction thereof, as the case may be, Landlord's all such excess Operating Costs. Upon requestOperating Costs will include, by way of illustration and not of limitation: personal property taxes; management fees comparable to that of similar first class office buildings in the area; labor, including all wages and salaries; social security and other taxes which may be levied against Landlord will provide access upon such wages and salaries; supplies; repairs and maintenance; maintenance and service contracts; painting; wall and window washing; tools and equipment (which are not required to Tenant, at reasonable times, be capitalized for federal income tax purposes); trash removal; lawn care; snow removal and all other items properly constituting direct operating costs according to Landlord's books and records relating standard accounting practices (collectively referred to as the “Operating Costs” in this Lease); but not including broker fees or commissions; legal fees incurred in the preparation or enforcement of Landlord's statementleases; costs for leasehold improvements; legal fees for the negotiation and preparation of mortgages or other financings; costs to correct, and Tenant may inspect fines and copy such records as are necessary to verify the accuracy penalties in connection with, violations of Legal Requirements; any amounts reimbursed by tenants or insurance; depreciation of Building or equipment; interest; income or excess profits taxes; costs of maintaining the Landlord's annual statement. In the event of a dispute’s corporate existence; franchise taxes; any expenditures required to be capitalized for federal income tax purposes, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For unless said expenditures are for the purpose of this Paragraph 4.2, Landlord's reducing Operating Costs shall exclude at the interest Real Property (and amortization on mortgages for then only the Building and Lot amount of any such reduction may be included in any given year), or leasehold For this purpose of this Paragraph 4.2, Landlord's Operating Costs shall include, without limitation: those which under generally applied real estate taxes on practice are expensed or regarded as deferred expenses or are required under any Legal Requirement enacted after the Building and Lot; installments and date hereof, in which event the costs thereof shall be included such costs (together with an interest on assessments for public betterments or public improvements (other than those if any, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent factor equal to the Lot); expenses greater of 13% or 3 percentage points in excess of the prime rate established by JPMorgan Chase Bank, at the time of expenditure) shall be amortized over the useful life oft he item, not to exceed five (5) years. Notwithstanding anything contained herein to the contrary, any proceedings for abatement of taxes and If additional costs incurred by Landlord during the management fee is reduced Calendar Year by reason of a tenant's default Landlord or any of its vendors entering into new labor contracts or renewals or modifications of existing labor contracts will not be included in the payment of fixed or additional rent, Landlord shall reduce the Annual Estimated Base Operating Costs by the amount of such reduction in the management feeCosts. In case addition, Tenant will pay Landlord Tenant’s Percentage of services which are all costs and expenses incurred by Landlord in connection with complying with any “homeland security” requirements and such costs and expenses will not rendered to all areas on a comparable basis, the proportion allocable to the Premises shall be the same proportion which the Rentable Floor Area of Tenant's Space bears to the total rentable floor area to which such service is so rendered (such latter area to be determined included in the same manner as the Total Rentable Floor Area of the Building)Operating Costs.
Appears in 1 contract
Operating Cost Escalation. With respect to If, in any calendar year during the First Fiscal Year Term commencing with the calendar year 2020, the Operating Costs (as defined below) are in excess of the amount of the Operating Costs for Tenant's Paying the calendar year 2019 (which calendar year 2019 shall be the “Operating Cost EscalationBase Year”), or fraction thereof, and any Fiscal Year or fraction thereaftergrossed up to reflect ninety-five percent (95%) occupancy, Tenant shall will pay to Landlord, as additional rentAdditional Rent hereunder, within thirty (30) days of Tenant’s receipt of the Operating Cost Escalation Statement (as defined below), if anythe monthly, on or before the thirtieth day following receipt by Tenant estimated 1/12 of Landlord's Statement (as defined below). As soon as practicable after the end Tenant’s Share of each Fiscal Year ending during the Term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("Landlord's Statement") in reasonable detail and according to usual accounting practices certified by Landlord and showing for the preceding Fiscal Year or fraction thereof, as the case may be, Landlord's Operating Costs. Upon request, Landlord will provide access to Tenant, at reasonable times, to Landlord's books and records relating to the preparation of Landlord's statement, and Tenant may inspect and copy such records as are necessary to verify the accuracy of the Landlord's annual statement. In the event of a dispute, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For the purpose of this Paragraph 4.2, Landlord's Operating Costs shall exclude the interest and amortization on mortgages for the Building and Lot or leasehold For this purpose of this Paragraph 4.2, Landlord's Operating Costs shall include, without limitation: real estate taxes on the Building and Lot; installments and interest on assessments for public betterments or public improvements (other than those if any, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent to the Lot); expenses of any proceedings for abatement of taxes and If the management fee is reduced by reason of a tenant's default in the payment of fixed or additional rent, Landlord shall reduce the Annual Estimated Operating Costs by the amount of such reduction excess (such percentage of such excess amount being, hereinafter, “Operating Cost Rent”), which Operating Cost Statement shall include, with specificity, Landlord’s calculations of Tenant’s Share and Tenant’s Operating Cost Rent, as well as a reasonable breakdown of the Operating Costs applicable thereto. Operating Costs shall include all reasonable costs and expenses of every kind and nature paid or incurred by the Landlord (including reasonable and appropriate reserves) in operating, managing, equipping, policing, lighting, repairing and maintaining the Building and the Lot, the parking areas, common areas, utilities and facilities serving the Building; air conditioning servicing the Building, landscaping, and snow removal; costs of all roof and other maintenance, repairs and replacements performed by the Landlord; costs of the installation, operating, maintenance, repair and replacement of any energy management system designed to reduce the energy consumption in the building; costs of the operation, maintenance, repair and replacement of any escalators or elevators; premiums for liability, property damage, fire, workers’ compensation, and other insurance carried by Landlord on any structures on the Lot; wages, unemployment taxes, social security taxes, and personal property taxes and assessments; fees for required licenses and permits; supplies and other equipment for the common areas; and reasonable administrative and management fee. In case costs associated with the Building and the Lot; provided that (a) as to any improvement, repair or replacement included in operating costs having a useful life of services which are not rendered to all areas on a comparable basisgreater than one year, the proportion allocable charge added to the Premises Operating Costs in any given year shall be the same proportion which amortized cost thereof calculated on a straight-line basis over the Rentable Floor Area useful life of Tenant's Space bears to such improvement, repair or replacement in accordance with generally accepted accounting principles), and (b) there shall be excluded from Operating Costs, all depreciation associated with the total rentable floor area to which such service is so rendered (such latter area to be determined in the same manner as the Total Rentable Floor Area costs of the Building).build-out of tenants, and the leasing commissions, attorneys’ fees and other inducements associated with the leasing of space to any and all tenants, and those items specifically excluded from Operating Costs as stated below:
Appears in 1 contract
Samples: Pine Technology Acquisition Corp.
Operating Cost Escalation. With respect to the First Fiscal Year for Tenant's ’s Paying Operating Cost Escalation, or fraction thereof, and any Fiscal Year or fraction thereafter, Tenant shall pay to Landlord, as additional rent, Tenant’s share of the Operating Cost Escalation (as defined below), if any, on or before the thirtieth (30th) day following receipt by Tenant of Landlord's ’s Statement (as defined below). As soon as practicable Within ninety (90) days after the end of each Fiscal Year ending during the Term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("“Landlord's ’s Statement"”) in reasonable detail and according to usual accounting practices certified by Landlord and showing for the preceding Fiscal Year or fraction thereof, as the case may be, Landlord's ’s Operating CostsCosts (as defined herein). Upon request, Landlord will provide access to Tenant, at reasonable times, to Landlord's books and records relating to the preparation of Landlord's statement, and Tenant may inspect and copy such records as are necessary to verify the accuracy of the Landlord's annual statement. In the event of a dispute, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For the purpose of this Paragraph 4.2, Landlord's Operating Costs shall exclude mean the commercially reasonable costs incurred by Landlord in operating, cleaning, maintaining, managing, and repairing the Building and the Lot, EXCLUDING the principal, interest and amortization on mortgages for the Building Building, and Lot or leasehold For this purpose interests therein, depreciation; improvements made to the Building, the Lot or the Park that do not lower operating costs; and the cost of this Paragraph 4.2, Landlord's Operating Costs shall includespecial services rendered to tenants (including Tenant) for which a special charge is made; BUT INCLUDING, without limitation: real estate taxes on the Building and Lot; installments and interest on assessments for public betterments or public improvements (other than those if any, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent but only to the Lot); extent of the installment required to be paid in such Fiscal Year, Landlord hereby agreeing to pay such amounts over the longest period available under applicable law, reasonable expenses of any proceedings for abatement of taxes and If the management fee is reduced by reason assessments with respect to any Fiscal Year or fraction of a tenant's default Fiscal Year; reasonable premiums for insurance; reasonable compensation and all reasonable fringe benefits for full- time employees at the Building, workmen’s compensation, insurance premiums and payroll taxes paid by Landlord to/for or with respect to all persons engaged in the operating, maintaining, managing or cleaning of the Building and Lot, water, sewer, gas, telephone and the electricity to operate the base building heating, ventilating, air conditioning systems, elevators and parking lot lighting, and other utility charges not billed directly to tenants by Landlord or the utility companies (the cost for the electricity consumed by the tenant for interior lighting, plugs, equipment, supplemental air conditioning and fixtures in shall be billed monthly to Tenant by Landlord as set forth in Paragraph IX of Exhibit “D”); measurable and market costs of building and cleaning supplies and equipment (including rental); reasonable cost of maintenance, cleaning and repairs, including without limitation the services provided in Exhibit “D” hereof; cost of snow plowing or removal, or both, and care of landscaping; payments to independent contractors under service contracts for cleaning, operating, managing, maintaining and repairing the Building and Lot (which payments may be to affiliates of Landlord provided the same are at reasonable rates consistent with the type of occupancy and the services rendered); the Building’s pro rata share (i.e. approximately 39.45% as hereinafter provided) of the Park-related costs (as defined below, including, but not limited to, snow plowing, sanding, sand removal, lot sweeping, landscaping, and common area and street lighting); and all other reasonable and necessary expenses paid in connection with the operation, cleaning, maintenance, management, and repair of the Building (including the cafeteria and fitness center located therein) and Lot, or either, and properly chargeable against income. If Landlord (i) installs a new or replacement capital item for the purposes of (i) reducing Landlord’s Operating Costs, or (ii) is required to perform capital repairs or replacements or to install capital items in order to comply with changes in applicable law from and after the Commencement Date, the costs thereof as reasonably amortized by Landlord over their useful life in accordance with generally accepted accounting principles, with legal interest (not to exceed the then “Prime Rate” published in the Wall Street Journal plus two percent (2%) per annum) on the unamortized amount, shall be included in “Landlord’s Operating Costs”, but with respect to subsection (i) in no event may the amount included herein with respect to a Fiscal Year exceed the reasonably projected annual reduction in Operating Costs. In such event, Tenant shall pay Tenant’s share of such amortization payment for each month after such improvement is completed until the first to occur of fixed the expiration of the Term or additional rent, the end of the term over which such costs are required to be amortized. Landlord shall reduce the Annual Estimated agrees that all of such services to be included in Landlord’s Operating Costs shall be obtained by Landlord at commercially reasonable, competitive market rates consistent with the amount operation and management of such reduction comparable Class A office buildings in the management feesuburban Boston area. In case of services which are not rendered to all areas Notwithstanding the foregoing, in no event shall “controllable operating expenses” included within Landlord’s Operating Costs increase by more than five percent (5%) per Lease Year, on a comparable cumulative basis. For purposes hereof, the proportion allocable term “controllable operating expenses” shall mean those Operating Costs within Landlord’s control, exercising prudent business practices, but shall exclude the following: (i) insurance premiums; (ii) costs incurred because of changes in applicable laws, rules, regulations, ordinances, requirements, and codes (“Applicable Laws”) after the Commencement Date; (iii) wages and benefits mandated by Applicable Laws or by union contracts; (iv) snow-plowing and expenses incurred as a result of acts of God; (v) the cost of utilities and real estate taxes; and (vi) pest control. Notwithstanding anything to the Premises contrary contained herein, in no event shall be Landlord’s Operating Costs include (nor shall Tenant have any obligation to pay any Operating Cost Escalation on account of) the same proportion which the Rentable Floor Area of Tenant's Space bears to the total rentable floor area to which such service is so rendered (such latter area to be determined in the same manner as the Total Rentable Floor Area of the Building).following:
Appears in 1 contract
Samples: Sublease Agreement (Demandware Inc)
Operating Cost Escalation. With respect to the First Fiscal Year for Tenant's Paying Operating Cost Escalation, or fraction thereof, and any Fiscal Year or fraction thereafter, Tenant shall pay to Landlord, as additional rentAdditional Rent, Operating Cost Escalation (as defined below), if any, ) on or before the thirtieth 20th day following receipt by Tenant of Landlord's Statement (as defined below). As soon as practicable after After the end of each Fiscal Year ending calendar year during the Term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("Landlord's Statement") in reasonable detail and according to usual generally accepted accounting practices practices, certified by Landlord Landlord, and showing for the preceding Fiscal Year calendar year or fraction thereof, as the case may be, all of Landlord's operating costs for the Building and Lot ("Landlord's Operating Costs"), including, without limitation, premiums for insurance; compensation and all fringe benefits, worker's compensation, insurance premiums and payroll taxes paid by Landlord to, for or with respect to all persons engaged in the operating, maintaining or cleaning of the Building (including the Premises) and Lot; costs of electricity in ex cess of Tenant's Estimated Electrical Charge and other Estimated Electrical Charges paid by other tenants of the Building including, without limitation, costs of electricity furnished to the Premises and other tenants' premises but excluding electricity separately metered to Tenant or tenants; all other utility charges not billed directly to tenants by Landlord or the utility company; all payments to contractors under service contracts for operating, managing, cleaning, maintaining and repairing the Building (including the Premises) and Lot (which payments may be to affiliates of Landlord, provided the same are at comparable market rates); costs of Building and cleaning supplies and equipment; if the Building shares common areas or facilities with another building or buildings, the Building's allocable share (as reasonably determined by Landlord in accordance with generally accepted accounting principles) of the cost of cleaning, operating, managing (including the cost of the management office for such buildings and facilities), maintaining and repairing such common areas and facilities; and all other reasonable and necessary expenses paid in connection with the cleaning, operating, managing, maintaining, and repairing of the Building and Lot, or either, and properly chargeable against income; it being agreed that if Landlord shall install a new or replacement capital item for the purpose of complying with applicable laws or regulations or intending to reduce Landlord's Operating Costs, the annual amortization (determined by Landlord in accordance with generally accepted accounting principles) of the cost thereof, with interest thereon at the prime rate published in The Wall Street Journal from time to time, shall be included in Landlord's Operating Costs. Upon request, Landlord will provide access to Tenant, at reasonable times, to Landlord's books and records relating Notwithstanding anything to the preparation of Landlord's statement, and Tenant may inspect and copy such records as are necessary to verify the accuracy of the Landlord's annual statement. In the event of a dispute, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For the purpose of this Paragraph 4.2contrary contained above, Landlord's Operating Costs shall exclude the interest not include costs and amortization on mortgages for the Building and Lot or leasehold For this purpose of this Paragraph 4.2, Landlord's Operating Costs shall include, without limitation: real estate taxes on the Building and Lot; installments and interest on assessments for public betterments or public improvements (other than those if any, relating to a traffic signal and expenses related accessory improvements and turnaround on Route 9 adjacent to the Lot); expenses of any proceedings for abatement of taxes and If the management fee is reduced by reason of a tenant's default in the payment of fixed or additional rent, Landlord shall reduce the Annual Estimated Operating Costs by the amount of such reduction in the management fee. In case of services which are not rendered to all areas on a comparable basis, the proportion allocable to the Premises shall be the same proportion which the Rentable Floor Area of Tenant's Space bears to the total rentable floor area to which such service is so rendered (such latter area to be determined in the same manner as the Total Rentable Floor Area of the Building).following:
Appears in 1 contract
Samples: Broadvision Inc
Operating Cost Escalation. With respect to the First Fiscal Year for Tenant's Paying Operating Cost Escalation, or fraction thereof, and any Fiscal Year or fraction thereafter, Tenant The TENANT shall pay to Landlordthe LANDLORD as additional rent hereunder in accordance with subparagraph B of this Article, 25 .16 percent of any increase in operating expenses over those incurred during the calendar year 2013. Operating expenses are defined for the purposes of this agreement as operating expenses per annum of the building and its appurtenances and all exterior areas, yards, plazas, sidewalks, landscaping and the like then (i.e. as of said last day of the calendar year concerned) located outside of the building but related thereto and the parcels of land on which they are located (said building, appurtenances, exterior areas, and land hereinafter referred to in total as the "building"). Operating expenses include, but are not limited to: (i) all costs of furnishing electricity, heat, air-conditioning, and other utility services and facilities to the building, (ii) all costs of any insurance carried by LANDLORD related to the building, (iii) all costs of common area cleaning and janitorial services, (iv) all costs of maintaining the building including the operation and repair of heating and air-conditioning equipment and any other common building equipment, noncapital roof repairs and all other repairs, improvements and replacements required by law or necessary to keep the building in a well maintained condition, (v) all costs of snow and ice removal, landscaping and grounds care, (vi) all other costs of the management of the building, including, without limitation, property management fees, and (vii) all other reasonable costs relating directly to the ownership, operation, maintenance and management of the building by LANDLORD. This increase shall be prorated should this lease be in effect with respect to only a portion of any calendar year. During each year of the term of this lease TENANT shall make monthly estimated payments to LANDLORD, as additional rent, Operating Cost Escalation for TENANT's share of such increases in real estate taxes and operating expenses for the then current year. Said estimated monthly payments shall be made along with base rent payments and shall be equal to one twelfth (as defined below), if any, on or before 1/12) of TENANT's annualized share of LANDLORD's projected increases for the thirtieth day following receipt by Tenant of Landlord's Statement (as defined below)current year. As soon as practicable after After the end of each Fiscal Year ending during the Term and after Lease terminationcalendar year, and in either case, no later than 180 days thereafter, Landlord LANDLORD shall render deliver to TENANT a statement ("Landlord's Statement") in reasonable detail and according to usual accounting practices certified by Landlord and showing for the preceding Fiscal Year or fraction thereof, as the case may be, Landlord's Operating Costs. Upon request, Landlord will provide access to Tenant, at reasonable times, to Landlord's books and records relating to the preparation of Landlord's statement, and Tenant may inspect and copy such records as are necessary to verify the accuracy of the Landlord's annual statement. In the event of a dispute, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For the purpose of this Paragraph 4.2, Landlord's Operating Costs shall exclude the interest and amortization on mortgages for the Building and Lot or leasehold For this purpose of this Paragraph 4.2, Landlord's Operating Costs shall include, without limitation: real estate taxes on the Building and Lot; installments and interest on assessments for public betterments or public improvements (other than those if any, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent to the Lot); expenses of any proceedings for abatement of taxes and If the management fee is reduced by reason of a tenant's default in the payment of fixed or additional rent, Landlord shall reduce the Annual Estimated Operating Costs by the amount of such reduction in increases and also showing the management feeTENANT's share of the same. In case of services which are not rendered to all areas on a comparable basisThe TENANT shall, within thirty (30) days after such delivery, pay the proportion allocable TENANT's share to the Premises LANDLORD, as additional rent, less any estimated payments. If the estimated payments exceed TENANT's share, then the excess shall be the same proportion which the Rentable Floor Area of Tenant's Space bears applied to the total rentable floor area to which such service is so rendered (such latter area to be determined in the same manner as the Total Rentable Floor Area of the Building)next year's monthly payments for estimated increases.
Appears in 1 contract
Samples: Growlife, Inc.
Operating Cost Escalation. With respect If the Operating Costs incurred for the Real Property for any Lease Year or Partial Lease Year during the Term will be greater than the Base Operating Costs (reduced proportionately to correspond to the First Fiscal Year for Tenant's Paying Operating Cost Escalationduration of periods less than a Lease Year), or fraction thereof, and any Fiscal Year or fraction thereafter, then Tenant shall will pay to Landlord, as additional rentAdditional Rent, Operating Cost Escalation (as defined below), if any, on or before the thirtieth day following receipt by Tenant Tenant’s Percentage of Landlord's Statement (as defined below). As soon as practicable after the end of each Fiscal Year ending during the Term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("Landlord's Statement") in reasonable detail and according to usual accounting practices certified by Landlord and showing for the preceding Fiscal Year or fraction thereof, as the case may be, Landlord's all such excess Operating Costs. Upon requestOperating Costs will include, by way of illustration and not of limitation: personal property taxes; management fees; labor, including all wages and salaries; social security and other taxes which may be levied against Landlord will provide access upon such wages and salaries; supplies; repairs and maintenance; maintenance and service contracts; painting; wall and window washing; tools and equipment (which are not required to Tenantbe capitalized for federal income tax purposes); trash removal; lawn care; snow removal; fire casualty, at reasonable timesproperty damage, to Landlord's books liability and records relating to the preparation of Landlord's statementother insurance costs, and Tenant may inspect and copy such records as are necessary to verify the accuracy together with any deductibles, incurred by Landlord in connection with its operation of the Landlord's annual statement. In Building and the event of a dispute, Tenant shall have the right to conduct or have conducted an audit Real Property and all other items properly constituting direct operating costs according to generally accepted standard accounting principles consistently applied, with which Landlord shall cooperate practices (collectively referred to as the “Operating Costs” in good faith. In the event this Lease); but not including depreciation of an error of five percent Building or more, Landlord shall bear all equipment; interest; income or excess profits taxes; costs of such inspection and audit. For maintaining the Landlord’s corporate existence; franchise taxes; any expenditures required to be capitalized for federal income tax purposes, unless said expenditures are for the purpose of this Paragraph 4.2, Landlord's reducing Operating Costs shall exclude at the interest and amortization on mortgages for the Building and Lot Real Property, or leasehold For this purpose of this Paragraph 4.2, Landlord's Operating Costs shall include, without limitation: those which under generally applied real estate taxes on practice are expensed or regarded as deferred expenses or are required under any Legal Requirement, in which event the Building and Lot; installments and interest on assessments for public betterments or public improvements (other than those if any, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent costs thereof shall be included. Notwithstanding anything contained herein to the Lot); expenses of contrary, any proceedings for abatement of taxes and If additional costs incurred by Landlord during the management fee is reduced Calendar Year by reason of a tenant's default Landlord or any of its vendors entering into new labor contracts or renewals or modifications of existing labor contracts will not be included in the payment of fixed or additional rent, Landlord shall reduce the Annual Estimated Base Operating Costs by the amount of such reduction in the management feeCosts. In case addition, Tenant will pay Landlord Tenant’s Percentage of services which are all costs and expenses incurred by Landlord in connection with complying with any “homeland security” requirements and such costs and expenses will not rendered to all areas on a comparable basis, the proportion allocable to the Premises shall be the same proportion which the Rentable Floor Area of Tenant's Space bears to the total rentable floor area to which such service is so rendered (such latter area to be determined included in the same manner as the Total Rentable Floor Area of the Building)Operating Costs.
Appears in 1 contract
Operating Cost Escalation. With respect to the First Fiscal Year for Tenant's Paying Operating Cost Escalation, or fraction thereof, and any Fiscal Year or fraction thereafter, Tenant shall pay to Landlord, as additional rent, Operating Cost Escalation (as defined below), if any, on or before the thirtieth day following receipt by Tenant 4.2.1 Definition of Landlord's Statement (as defined below). As soon as practicable after the end of each Fiscal Year ending during the Term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("Landlord's Statement") in reasonable detail and according to usual accounting practices certified by Landlord and showing for the preceding Fiscal Year or fraction thereof, as the case may be, Landlord's Operating Costs. Upon request, Landlord will provide access to Tenant, at reasonable times, to Landlord's books and records relating to the preparation of Landlord's statement, and Tenant may inspect and copy such records as are necessary to verify the accuracy of the Landlord's annual statement. In the event of a dispute, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For the purpose of this Paragraph 4.2, Landlord's Operating Costs - "Landlord's ---------------------------------------- Operating Costs" shall exclude costs incurred in connection with the original construction of the Building, interest and amortization on mortgages for the Building and Lot or leasehold For this purpose Lot, the cost of this Paragraph 4.2special services rendered to tenants (including Tenant) for which a special charge is made, any items for which Landlord is reimbursed by insurance, reserves for anticipated future expenses, leasing commissions, any rent loss, the cost of providing improvements solely to another tenant, and all interest and penalties incurred as a result of Landlord's Operating Costs failure to pay any xxxx or charge as it shall become due (unless the xxxx or charge was contested by Landlord), but shall include, without limitation: real ----------------- estate taxes on the Building and Lot; installments and interest on assessments for public betterments or public improvements (other than those if any, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent to the Lot)improvements; reasonable expenses of any proceedings for abatement of taxes and If the management fee is reduced by reason assessments with respect to any fiscal year or fraction of a tenantfiscal year; premiums for insurance; compensation and all fringe benefits, worker's default compensation insurance premiums and payroll taxes paid by Landlord to, for or with respect to all persons engaged in the payment operating, maintaining, or cleaning of fixed the Building and Lot; steam, water, sewer, electric, gas, telephone, and other utility charges for the Building and Lot not billed directly to tenants by Landlord or additional rentthe utility; reasonable costs of building and cleaning supplies and equipment (including rental); reasonable cost of maintenance, cleaning and repairs; cost of snow plowing or removal, or both, and care of landscaping; reasonable payments to independent contractors under service contracts for cleaning, operating, managing, maintaining and repairing the Building and Lot (which payments may be to affiliates of Landlord or to Landlord's representatives provided the same are at reasonable rates consistent with the type of occupancy and the services rendered); reasonable rental costs associated with providing the managing agent space for an office in the Building or in another building owned by Landlord or managed by Landlord's representative, which costs shall reduce be prorated accordingly if such office services building(s) in addition to the Annual Estimated Building; the reasonable cost of operating, maintaining and repairing the common areas and facilities of the Building (such as, but not limited to, snow plowing, landscaping, common area and street lighting, repaving parking areas, security and management); the Building's proportionate share, as reasonably determined by Landlord, of Landlord's costs and expenses (as determined consistent with the provisions of this Section 4.2.1) related to the operation, maintenance, repair ------------- and replacement of any entrance drives, access drives, landscaping improvements and other common area improvements on the Project Tract which do not exclusively serve a particular Building; and all other reasonable and necessary expenses paid in connection with the operation, cleaning, maintenance and repair of the Building and Lot, or either, which are customarily passed through to tenants in the Raleigh, NC market for Class A office space and properly chargeable against income rather than capitalized under generally accepted accounting principles, it being agreed that if Landlord installs a new or replacement capital item for the purpose of reducing Landlord's Operating Costs, the cost thereof as reasonably amortized by Landlord with reasonable interest on the unamortized amount shall be included in Landlord's Operating Costs. In the event the average occupancy level of the Building for the applicable calendar year was not ninety-five (95%) or more of full occupancy, then the Landlord's Operating Costs for such year shall be adjusted and apportioned among the tenants by the amount of Landlord to reflect those costs which would have occurred had the Building been ninety-five percent (95%) occupied during such reduction in the management fee. In case of services which are not rendered to all areas on a comparable basis, the proportion allocable to the Premises shall be the same proportion which the Rentable Floor Area of Tenant's Space bears to the total rentable floor area to which such service is so rendered (such latter area to be determined in the same manner as the Total Rentable Floor Area of the Building)year.
Appears in 1 contract
Operating Cost Escalation. With respect to the First Fiscal Year for Tenant's ’s Paying Operating Cost Escalation or Real Estate Tax Escalation, or fraction thereof, and any Fiscal Year or fraction thereafterthereafter during the Term, Tenant shall pay to Landlord, as additional rent, Operating Cost Escalation (as defined below), if any, on or before the thirtieth (30th) day following receipt by Tenant of Landlord's ’s Statement (as defined below). As soon as practicable after the end of each Fiscal Year ending during the Term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("“Landlord's ’s Statement"”) in reasonable detail and according to usual accounting practices Generally Accepted Accounting Principles (“GAAP”), consistently applied, certified by Landlord Landlord, and showing for the preceding Fiscal Year or fraction thereof, as the case may be, “Landlord's ’s Operating Costs. Upon request, Landlord will provide access to Tenant, at reasonable times, to Landlord's books and records relating to the preparation of Landlord's statement, and Tenant may inspect and copy such records as are necessary to verify the accuracy of the Landlord's annual statement. In the event of a dispute, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For the purpose of this Paragraph 4.2, Landlord's Operating Costs shall exclude ,” EXCLUDING the interest and amortization on mortgages for the Building and Lot or leasehold For this purpose interests therein and the cost of this Paragraph 4.2special services rendered to tenants (including Tenant) versus tenants in general, Landlord's Operating Costs shall includeBUT INCLUDING, without limitation: real estate taxes on the Building Building, the Lot and Lot; the Common Areas of the Park, installments and interest on assessments for public betterments or public improvements improvements, with respect to any Fiscal Year or fraction of a Fiscal Year; premiums for insurance required to be maintained by Landlord pursuant to this Lease; compensation and all fringe benefits, workmen’s compensation, insurance premiums and payroll taxes paid by Landlord to, for or with respect to all persons engaged in the operating, maintaining, or cleaning of the Building and Lot; water, sewer, gas, telephone and the electricity to operate the base building heating, ventilating, air conditioning systems, elevators and parking lot lighting, and other utility charges not billed directly to tenants by Landlord or the utility companies (the cost for the electricity consumed by the tenant for interior lighting, plugs, equipment, supplemental air conditioning and fixtures shall be billed monthly to Tenant by Landlord as set forth in Paragraph IX of Exhibit D); costs of building and cleaning supplies and equipment (including rental); cost of maintenance, cleaning and repairs; cost of snow plowing or removal, or both, and care of landscaping; payments to independent contractors under service contracts for cleaning, operating, managing, maintaining and repairing the Building and Lot (which payments may be to affiliates of Landlord provided the same are at reasonable rates consistent with similar contracts with unaffiliated third parties); the Building’s pro rata share of the cost of operating, managing, maintaining and repairing the Common Areas of the Park (such as, but not limited to, snow plowing, sanding, sand removal, lot sweeping, landscaping, common area and street lighting, and management); and all other than those reasonable and necessary expenses paid in connection with the operation, cleaning, maintenance, management and repair of the Building and Lot, or either, and properly chargeable against income, it being agreed that if anyLandlord installs a new or replacement capital item for the purpose of reducing Landlord’s Operating Costs (including without limitation the replacement of an unrepairable items) or as required by governmental regulation or laws, relating the costs thereof as reasonably amortized over the useful life in years of the capital item so installed in accordance with GAAP, consistently applied, with legal interest (not to a traffic signal exceed the Prime Rate published in the Wall Street Journal plus two percent (2%) on the unamortized amounts, shall be included in Landlord’s Operating Costs. Landlord agrees that all of such services to be included in Landlord’s Operating Costs shall be obtained by Landlord at commercially reasonable, competitive market rates consistent with the operation and related accessory improvements and turnaround on Route 9 adjacent management of comparable “Class A” office buildings in the suburban Boston area. Notwithstanding anything to the Lot); expenses of any proceedings for abatement of taxes and If the management fee is reduced by reason of a tenant's default contrary contained herein, in the payment of fixed or additional rent, Landlord no event shall reduce the Annual Estimated Landlord’s Operating Costs by include (nor shall Tenant have any obligation to pay any Operating Cost Escalation on account of) the amount of such reduction in the management fee. In case of services which are not rendered to all areas on a comparable basis, the proportion allocable to the Premises shall be the same proportion which the Rentable Floor Area of Tenant's Space bears to the total rentable floor area to which such service is so rendered (such latter area to be determined in the same manner as the Total Rentable Floor Area of the Building).following:
Appears in 1 contract
Samples: Non Disturbance and Attornment Agreement (Aspen Technology Inc /De/)
Operating Cost Escalation. With respect to the First Fiscal Year for Tenant's Paying Operating Cost Escalation, or fraction thereof, and any Fiscal Year or fraction thereafter, Tenant shall pay to Landlord, as additional rent, Operating Cost Escalation (as defined below), if any, on or before the thirtieth (30th) day following receipt by Tenant of Landlord's Statement (as defined below). As soon as practicable after the end of each Fiscal Year ending during the Term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render xxxxx a statement ("Landlord's Statement") in reasonable detail and according to usual accounting practices certified by Landlord and showing for the preceding Fiscal Year or fraction thereof, as the case may be, Landlord's Operating Costs. Upon request, Landlord will provide access to Tenant, at reasonable times, to Landlord's books and records relating to the preparation of Landlord's statement, and Tenant may inspect and copy such records as are necessary to verify the accuracy of the Landlord's annual statement. In the event of a dispute, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For the purpose of this Paragraph 4.2, Landlord's Operating Costs shall exclude EXCLUDING the interest and amortization on mortgages for the Building and Lot or leasehold For this purpose interests therein and the cost of this Paragraph 4.2special services rendered to tenants (including Tenant) for which a special charge is made, Landlord's Operating Costs shall includeBUT INCLUDING, without limitation: real estate taxes on the Building and Lot; installments and interest on assessments for public betterments or public improvements (other than those if any, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent to the Lot)improvements; expenses of any proceedings for abatement of taxes and assessments with respect to any Fiscal Year or fraction of a Fiscal Year; premiums for insurance; compensation and all fringe benefits, workmen's compensation, insurance premiums and payroll taxes paid by Landlord to, for or with respect to all persons engaged in the operating, maintaining, or cleaning of the Building and Lot; steam, water, sewer, electric, gas, telephone, and other utility charges not billed directly to tenants by Landlord or the utility, but not including the cost to Landlord of electricity furnished for lighting, electrical facilities, equipment, machinery, fixtures and appliances used by Tenant in Tenant's Space (other than Building heating, ventilating and air conditioning equipment) as set forth in Paragraph VII of Exhibit D; costs of building and cleaning supplies and equipment (including rental); cost of maintenance, cleaning and repairs; cost of snow plowing or removal, or both, and care of landscaping; payments to independent contractors under service contracts for cleaning, operating, managing, maintaining and repairing the Building and Lot (which payments may be to affiliates of Landlord provided the same are at reasonable rates consistent with the type of occupancy and the services rendered); imputed cost equal to the loss of rent by Landlord for making available to the managing agent space for a Building office on the ground floor or above (limited to 200 square feet); if the building is located in an office park, the Building's pro rata share (as reasonably determined by landlord) of the cost of operating, maintaining and repairing the common areas and facilities within such park (such as, but not limited to, snow plowing, landscaping, common area and street lighting, security and management); and all other reasonable and necessary expenses paid in connection with the operation, cleaning, maintenance, and repair of the Building and Lot, or either, and properly chargeable against income, it being agreed that if Landlord installs a new or replacement capital item for the purpose of reducing Landlord's Operating Costs, the costs thereof as reasonably amortized by Landlord, with legal interests on the unamortized amount, shall be included in Landlord's Operating Costs. If the Building is not fully occupied, Landlord's Statement shall also show the average number of square feet of the Building which were occupied for the preceding Fiscal Year or fraction thereof. If the management fee is reduced by reason of a tenant's default in the payment of fixed or additional rent, Landlord shall reduce the Annual Estimated Operating Costs by the amount of such reduction in the management fee. In case of services which are not rendered to all areas on a comparable basis, the proportion allocable to the Premises shall be the same proportion which the Rentable Floor Area of Tenant's Space bears to the total rentable floor area to which such service is so rendered (such latter area to be determined in the same manner as the Total Rentable Floor Area of the Building).
Appears in 1 contract
Samples: Apertus Technologies Inc
Operating Cost Escalation. With respect to If the First Fiscal Year Operating Costs incurred for Tenant's Paying Operating Cost Escalation, or fraction thereof, the Building in which the Premises are located and Office Building Area for any Fiscal Lease Year or fraction thereafterPartial Lease Year during the Lease Term shall be greater than the Base Operating Costs (adjusted proportionately for periods less than a Lease Year), Tenant then Lessee shall pay to LandlordLessor, as additional rentAdditional Rent, Lessee’s Percentage of all such excess Operating Cost Escalation Costs. “Operating Costs” shall include costs incurred for the Building in which the Premises are located, the Office Building Area and the Complex for, by way of illustration and not of limitation: personal property taxes; management fees; labor, including all wages and salaries; social security taxes, and other taxes which may be levied against Lessor upon such wages and salaries; Building’s Percentage of Complex Expenses (as defined below), if any, on or before the thirtieth day following receipt by Tenant of Landlord's Statement ; supplies; repairs and maintenance; maintenance and service contracts; painting; wall and window washing; laundry and towel service; tools and equipment (as defined below). As soon as practicable after the end of each Fiscal Year ending during the Term and after Lease termination, and which are not required to be capitalized in either case, no later than 180 days thereafter, Landlord shall render a statement ("Landlord's Statement") in reasonable detail and according to usual accounting practices certified by Landlord and showing for the preceding Fiscal Year or fraction thereof, as the case may be, Landlord's Operating Costs. Upon request, Landlord will provide access to Tenant, at reasonable times, to Landlord's books and records relating to the preparation of Landlord's statement, and Tenant may inspect and copy such records as are necessary to verify the accuracy of the Landlord's annual statement. In the event of a dispute, Tenant shall have the right to conduct or have conducted an audit according to accordance with generally accepted accounting principles consistently applied(“GAAP”)); trash removal; lawn care; snow removal and all other items properly constituting direct operating costs according to GAAP (hereinafter collectively referred to as the “Operating Costs”), with which Landlord shall cooperate in good faith. In the event but not including depreciation of an error of five percent Building or more, Landlord shall bear all equipment; interest; income or excess profits taxes; costs of such inspection and audit. For maintaining the Lessor’s corporate existence; franchise taxes; any expenditures required to be capitalized pursuant to GAAP, unless said expenditures are for the purpose of this Paragraph 4.2reducing Operating Costs within the Building and Office Building Area (but only to the extent such costs are amortized in accordance with GAAP over the useful life of such item), Landlord's or are required under any governmental or quasi-governmental law, statute, ordinance, rule, order, requirements or regulation, in which event the costs thereof shall be included. Notwithstanding anything contained herein to the contrary, any additional costs incurred by Lessor during the 2007 Calendar Year by reason of Lessor or any of its vendors entering into new labor contracts or renewals or modifications of existing labor contracts shall not be included in Base Operating Costs. In addition, Lessee shall pay Lessor Lessee’s Percentage of all costs and expenses incurred by Lessor in connection with complying with any “homeland security” requirements under applicable law, and such costs and expenses shall not be included in Operating Costs. The Base Operating Costs shall exclude the interest and amortization on mortgages for the Building and Lot or leasehold For this purpose of this Paragraph 4.2, Landlord's Operating Costs shall include, without limitation: real estate taxes on the Building and Lot; installments and interest on assessments for public betterments or public improvements (other than those if any, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent to the Lot); expenses of any proceedings for abatement of taxes and If the management fee is reduced by reason of a tenant's default as be as defined in the payment of fixed or additional rent, Landlord shall reduce the Annual Estimated Operating Costs by the amount of such reduction in the management fee. In case of services which are not rendered to all areas on a comparable basis, the proportion allocable to the Premises shall be the same proportion which the Rentable Floor Area of Tenant's Space bears to the total rentable floor area to which such service is so rendered (such latter area to be determined in the same manner as the Total Rentable Floor Area of the Building)Preamble.
Appears in 1 contract
Operating Cost Escalation. With respect to the First Fiscal Year for Tenant's ’s Paying Operating Cost Escalation, or fraction thereof, and any Fiscal Year or fraction thereafter, Tenant shall pay to Landlord, as additional rent, Tenant’s share of the Operating Cost Escalation (as defined below), if any, on or before the thirtieth (30th) day following receipt by Tenant of Landlord's ’s Statement (as defined below). As soon as practicable Within ninety (90) days after the end of each Fiscal Year ending during the Term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("“Landlord's ’s Statement"”) in reasonable detail and according to usual accounting practices certified by Landlord and showing for the preceding Fiscal Year or fraction thereof, as the case may be, Landlord's ’s Operating CostsCosts (as defined herein). Upon request, Landlord will provide access to Tenant, at reasonable times, to Landlord's books and records relating to the preparation of Landlord's statement, and Tenant may inspect and copy such records as are necessary to verify the accuracy of the Landlord's annual statement. In the event of a dispute, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For the purpose of this Paragraph 4.2, Landlord's Operating Costs shall exclude mean the commercially reasonable costs incurred by Landlord in operating, cleaning, maintaining, managing, and repairing the Building and the Lot, EXCLUDING the principal, interest and amortization on mortgages for the Building Building, and Lot or leasehold For this purpose interests therein, depreciation; improvements made to the Building, the Lot or the Park that do not lower operating costs; and the cost of this Paragraph 4.2, Landlord's Operating Costs shall includespecial services rendered to tenants (including Tenant) for which a special charge is made; BUT INCLUDING, without limitation: real estate taxes on the Building and Lot; installments and interest on assessments for public betterments or public improvements (other than those if any, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent but only to the Lot)extent required to be paid in such Fiscal Year; reasonable expenses of any proceedings for abatement of taxes and If the management fee is reduced by reason assessments with respect to any Fiscal Year or fraction of a tenant's default Fiscal Year; reasonable premiums for insurance; reasonable compensation and all reasonable fringe benefits for full-time employees at the Building, workmen’s compensation, insurance premiums and payroll taxes paid by Landlord to, for or with respect to all persons engaged in the operating, maintaining, or cleaning of the Building and Lot; water, sewer, gas, telephone and the electricity to operate the base building heating, ventilating, air conditioning systems, elevators and parking lot lighting, and other utility charges not billed directly to tenants by Landlord or the utility companies (the cost for the electricity consumed by the tenant for interior lighting, plugs, equipment, supplemental air conditioning and fixtures in shall be billed monthly to Tenant by Landlord as set forth in Paragraph IX of Exhibit “D”); measurable and market costs of building and cleaning supplies and equipment (including rental); reasonable cost of maintenance, cleaning and repairs, including without limitation the services provided in Exhibit “D” hereof; cost of snow plowing or removal, or both, and care of landscaping; payments to independent contractors under service contracts for cleaning, operating, managing, maintaining and repairing the Building and Lot (which payments may be to affiliates of Landlord provided the same are at reasonable rates consistent with the type of occupancy and the services rendered); the Building’s pro rata share (i.e. approximately 39.45% as hereinafter provided) of the cost of operating, maintaining, managing, and repairing the common areas and facilities of the Park (such as, but not limited to, snow plowing, sanding, sand removal, lot sweeping, landscaping, common area and street lighting, and management): and all other reasonable and necessary expenses paid in connection with the operation, cleaning, maintenance, management, and repair of the Building (including the cafeterial [subject to the limitations hereinafter provided] and fitness center located therein) and Lot, or either, and properly chargeable against income. If Landlord (i) installs a new or replacement capital item for the purposes of (i) reducing Landlord’s Operating Costs, or (ii) is required to perform capital repairs or replacements or to install capital items in order to comply with changes in applicable law from and after the Commencement Date, or (iii) or is required pursuant to Section 5.1.3 to perform capital repairs or replacements which are chargeable to Tenant to the extent provided by the provisions of this Section, the costs thereof as reasonably amortized by Landlord over their useful life in accordance with generally accepted accounting principles, with legal interest (not to exceed the then “Prime Rate” published in the Wall Street Journal plus two percent (2%) per annum) (“Agreed Interest Rate”) on the unamortized amount, shall be included in “Landlord’s Operating Costs”, but with respect to subsection (i) in no event may the amount included herein with respect to a Fiscal Year exceed the reasonably projected annual reduction in Operating Costs. In such event, Tenant shall pay Tenant’s share of such amortization payment for each month after such improvement is completed until the first to occur of fixed the expiration of the Term or additional rent, the end of the term over which such costs are required to be amortized. Landlord shall reduce the Annual Estimated agrees that all of such services to be included in Landlord’s Operating Costs shall be obtained by Landlord at commercially reasonable, competitive market rates consistent with the amount operation and management of such reduction comparable Class A office buildings in the management feesuburban Boston area. In case of services which are not rendered to all areas on a comparable basis, the proportion allocable Notwithstanding anything to the Premises contrary contained herein, in no event shall be Landlord’s Operating Costs include (nor shall Tenant have any obligation to pay any Operating Cost Escalation on account of) the same proportion which the Rentable Floor Area of Tenant's Space bears to the total rentable floor area to which such service is so rendered (such latter area to be determined in the same manner as the Total Rentable Floor Area of the Building).following:
Appears in 1 contract
Samples: Lease (Demandware Inc)
Operating Cost Escalation. With respect to the First Fiscal Year for Tenant's Paying Operating Cost Escalation, or fraction thereof, and any Fiscal Year or fraction thereafter, Tenant shall pay to Landlord, as additional rentAdditional Rent, Operating Cost Escalation (as defined below), if any, ) on or before the thirtieth 30th day following receipt by Tenant of Landlord's ’s Operating Cost Statement (as defined below). As soon as practicable after After the end of each Fiscal Year ending calendar year during the Term term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("“Landlord's ’s Operating Cost Statement"”) in reasonable detail and according to usual accounting practices practices, certified by Landlord Landlord, and showing for the preceding Fiscal Year calendar year or fraction thereof, as the case may be, Landlord's ’s Operating Costs. Upon request, Landlord will provide access to Tenant, at reasonable times, to Landlord's books and records relating to the preparation of Landlord's statement, and Tenant may inspect and copy such records Costs (as are necessary to verify the accuracy of the Landlord's annual statement. In the event of a dispute, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For the purpose of this Paragraph 4.2defined below), Landlord's Operating Costs shall exclude the interest and amortization on mortgages for the Building and Lot or leasehold For this purpose of this Paragraph 4.2, Landlord's ’s Operating Costs shall include, without limitation: real estate , premiums for insurance covered by Landlord with respect to the Property; compensation and all fringe benefits, worker’s compensation, insurance premiums and payroll taxes on paid by Landlord to, for or with respect to all persons engaged in the managing, operating, maintaining or cleaning of the Property (if such persons are engaged with respect to more than one property, such costs shall be appropriately allocated among the Property and such other properties); water and sewer use charges for the Property; all utility charges not billed directly to tenants by Landlord or the utility; payments to contractors and management companies under service or management contracts (or other costs incurred directly by Landlord or its agents) for operating, managing, cleaning, maintaining and repairing the Property, including, without limitation, management fees, Building cleaning, window cleaning, pest extermination, trash removal, landscaping, snow removal and repair and maintenance to elevators, the HVAC, electric and plumbing systems and parking areas (which payments may be to affiliates of Landlord, provided the same are at reasonable rates), and all other reasonable and necessary expenses paid in connection with the cleaning, operating, managing, maintaining, replacing or repairing of the Building or any portion or component thereof and/or any portion of the Property including, without limitation, the operation or maintenance of a cafeteria/food service operation in the Building; it being agreed that if Landlord shall install a new or replacement capital item, the annual amortization (determined by Landlord) of the cost thereof, with interest thereon at an annual rate equal to two (2%) percent above the base rate (prime rate) of Bank of America, N.A. (or any other Bank having offices in Boston, Massachusetts chosen by Landlord) from time to time, shall be included in Landlord’s Operating Costs. Without limiting the generality of the foregoing, it is expressly understood and Lot; installments agreed that all costs and expenses allocated to the Property under the Park Covenants, as the same may be amended, restated, modified, changed, supplemented or substituted from time to time shall not be included in Operating Costs but shall be payable as provided in Section 5.3 hereof. If, during the Term of this Lease, Landlord shall incur capital expenses in connection with repairs or replacement of the roof, foundation or structure of the Building, there shall be included in Landlord’s Operating Costs for that and in each succeeding calendar year, the amount of the annual amortization (determined by Landlord) of the cost thereof, with interest on assessments for public betterments thereon, at an annual rate equal to two (2%) percent above the base rate (prime rate) of the Bank of America, N.A. (or public improvements any other bank having offices in Boston, Massachusetts chosen by Landlord) from time to time in effect at the time of making such capital repairs or replacements (less insurance proceeds or other than those proceeds, if any, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent to the Lot); expenses of any proceedings for abatement of taxes and If the management fee is reduced collected by Landlord by reason of damage to, or destruction of, any capital items so repaired). In replacing a tenant's default in the payment of fixed or additional rentcapital item, Landlord shall reduce the Annual Estimated replace such capital item with a capital item of substantially similar quality and utility to that being replaced so long as such a replacement is deemed appropriate and prudent in light of ownership and management practices then being employed in other first class office buildings. Landlord’s Operating Costs shall not include any cost or expense covered by a warranty to the amount extent of such reduction in the management feecoverage afforded by said warranty and Landlord shall use good faith efforts to realize coverage under applicable warranties. In case determining Landlord’s Operating Costs, if less than 95% of services which are not rendered the Building shall have been occupied by tenants and fully used by them, at any time during the year, Landlord’s Operating Costs shall be extrapolated to all areas on a comparable basis, the proportion allocable an amount equal to the Premises like operating expenses that would normally be expected to be incurred had such occupancy been 95% and had such full utilization been made during the entire period. “Operating Cost Escalation” shall be the same proportion which the Rentable Floor Area of equal to Tenant's Space bears to the total rentable floor area to which such service is so rendered (such latter area to be determined in the same manner as the Total Rentable Floor Area ’s Proportionate Share of the Building).excess, if any, of:
Appears in 1 contract
Samples: Lease (GTC Biotherapeutics Inc)
Operating Cost Escalation. With respect If the Operating Costs incurred for the Real Property for any Lease Year or Partial Lease Year during the Term will be greater than the Base Operating Costs (reduced proportionately to correspond to the First Fiscal Year for Tenant's Paying Operating Cost Escalationduration of periods less than a Lease Year), or fraction thereof, and any Fiscal Year or fraction thereafter, then Tenant shall will pay to Landlord, as additional rentAdditional Rent, Operating Cost Escalation (as defined below), if any, on or before the thirtieth day following receipt by Tenant Tenant's Percentage of Landlord's Statement (as defined below). As soon as practicable after the end of each Fiscal Year ending during the Term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("Landlord's Statement") in reasonable detail and according to usual accounting practices certified by Landlord and showing for the preceding Fiscal Year or fraction thereof, as the case may be, Landlord's all such excess Operating Costs. Upon requestOperating Costs will include, by way of illustration and not of limitation: personal property taxes; management fees; labor, including all wages and salaries; social security and other taxes which may be levied against Landlord will provide access upon such wages and salaries; supplies; repairs and maintenance; maintenance and service contracts; painting; wall and window washing; tools and equipment (which are not required to Tenant, at reasonable times, be capitalized for federal income tax purposes); trash removal; lawn care; snow removal and all other items properly constituting direct operating costs according to Landlord's books and records relating standard accounting practices (collectively referred to as the preparation “Operating Costs” in this Lease); but not including depreciation of Landlord's statement, and Tenant may inspect and copy such records as are necessary to verify the accuracy Building or equipment; interest; income or excess profits taxes; costs of maintaining the Landlord's annual statement. In the event of a dispute’s corporate existence; franchise taxes; any expenditures required to be capitalized for federal income tax purposes, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For unless said expenditures are for the purpose of this Paragraph 4.2, Landlord's reducing Operating Costs shall exclude at the interest and amortization on mortgages for the Building and Lot Real Property, or leasehold For this purpose of this Paragraph 4.2, Landlord's Operating Costs shall include, without limitation: those which under generally applied real estate taxes on practice are expensed or regarded as deferred expenses or are required under any Legal Requirement, in which event the Building and Lot; installments and interest on assessments for public betterments or public improvements (other than those if any, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent costs thereof shall be included. Notwithstanding anything contained herein to the Lot); expenses of contrary, any proceedings for abatement of taxes and If additional costs incurred by Landlord during the management fee is reduced Calendar Year by reason of a tenant's default Landlord or any of its vendors entering into new labor contracts or renewals or modifications of existing labor contracts will not be included in the payment of fixed or additional rent, Landlord shall reduce the Annual Estimated Base Operating Costs by the amount of such reduction in the management feeCosts. In case addition, Tenant will pay Landlord Tenant’s Percentage of services which are all costs and expenses incurred by Landlord in connection with complying with any “homeland security” requirements and such costs and expenses will not rendered to all areas on a comparable basis, the proportion allocable to the Premises shall be the same proportion which the Rentable Floor Area of Tenant's Space bears to the total rentable floor area to which such service is so rendered (such latter area to be determined included in the same manner as the Total Rentable Floor Area of the Building)Operating Costs.
Appears in 1 contract
Samples: Lease (Rosetta Genomics Ltd.)
Operating Cost Escalation. With respect If during the Lease Term the Operating Costs incurred for the Building in which the Demised Premises are located and Office Building Area for any Lease Year or proportionate part thereof if the Lease Term expires prior to the First Fiscal expiration of a Lease Year for Tenant's Paying (herein the "Comparison Period") shall be greater than the Base Operating Cost EscalationCosts (adjusted proportionately if the Comparison Period is less than a Lease Year), or fraction thereof, and any Fiscal Year or fraction thereafter, then Tenant shall pay to LandlordLandlord as Additional Rent Tenant's Percentage, as additional renthereinafter defined, Operating Cost Escalation (as defined below), if any, on or before the thirtieth day following receipt by Tenant of Landlord's Statement (as defined below). As soon as practicable after the end of each Fiscal Year ending during the Term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("Landlord's Statement") in reasonable detail and according to usual accounting practices certified by Landlord and showing for the preceding Fiscal Year or fraction thereof, as the case may be, Landlord's all such excess Operating Costs. Upon request, Landlord will provide access to Tenant, at reasonable times, to Landlord's books and records relating to the preparation of Landlord's statement, and Tenant may inspect and copy such records as are necessary to verify the accuracy of the Landlord's annual statement. In the event of a dispute, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For the purpose of this Paragraph 4.2, Landlord's Operating Costs shall exclude the interest and amortization on mortgages for the Building and Lot or leasehold For this purpose of this Paragraph 4.2, Landlord's Operating Costs shall include, without by way of illustration and not of limitation: real estate taxes on electric, gas, including fuel surcharges or adjustments with respect thereto, water sewer, and other utilities and heating, ventilating and air conditioning costs for the Building to include all leased and leasable areas (not separately billed or separately metered within the Building) and Common Facilities electricity, lighting, water, sewer and other utilities for the Building and Lot; installments Office Building Area (herein "Utility and interest on assessments for public betterments or public improvements (other than those if any, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent to the LotEnergy Costs"); expenses of any proceedings for abatement of personal property taxes; management fees; labor, including all wages and salaries; social security taxes, and other taxes which may be levied against Landlord upon such wages and If the management fee is reduced by reason of a tenant's default in the payment of fixed or additional rent, Landlord shall reduce the Annual Estimated Operating Costs by the amount of such reduction in the management fee. In case of services salaries; supplies; repairs and maintenance; maintenance and service contracts; painting; wall and window washing; laundry and towel service; tools and equipment (which are not rendered required to be capitalized for federal income tax purposes); fire, rent liability and other insurance; trash removal; lawn care; snow removal; sums levied, assessed, imposed or required to be paid to any governmental authority on account of the parking of motor vehicles, including all areas on a comparable basissums required to be paid pursuant to transportation controls imposed by the Environmental Protection Agency under the Clean Air Act of 1970, or otherwise required to be paid by any governmental authority with respect to the parking, use, or transportation of motor vehicles, or reduction or control of motor vehicle traffic, or motor vehicle pollution; and all other items properly constituting direct operating costs according to standard accounting practices (hereinafter collectively referred to as the "Operating Costs"), but not including depreciation of Building or equipment; interest; income or excess profits taxes; costs of maintaining Landlord's corporate existence; franchise taxes; and expenditures required to be capitalized for federal income tax purposes, unless aid expenditures are for the purpose of reducing Operating Costs within the Building and Office Building Area or are required under any governmental law, ordinance or regulation, in which event the costs thereof shall be included. As used in this Subsection 22(A), the proportion allocable to the Premises Base Period Costs for Operating Costs shall be the same proportion which the Rentable Floor Area of Tenant's Space bears to the total rentable floor area to which such service is so rendered (such latter area to be determined as defined in the same manner as the Total Rentable Floor Area of the Building)Preamble.
Appears in 1 contract
Operating Cost Escalation. With respect If the Operating Costs incurred for the Real Property for any Lease Year or Partial Lease Year during the Term will be greater than the Base Operating Costs (reduced proportionately to correspond to the First Fiscal Year for Tenant's Paying Operating Cost Escalationduration of periods less than a Lease Year), or fraction thereof, and any Fiscal Year or fraction thereafter, then Tenant shall will pay to Landlord, as additional rentAdditional Rent, Operating Cost Escalation (as defined below), if any, on or before the thirtieth day following receipt by Tenant Tenant’s Percentage of Landlord's Statement (as defined below). As soon as practicable after the end of each Fiscal Year ending during the Term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("Landlord's Statement") in reasonable detail and according to usual accounting practices certified by Landlord and showing for the preceding Fiscal Year or fraction thereof, as the case may be, Landlord's all such excess Operating Costs. Upon requestOperating Costs will include, by way of illustration and not of limitation: personal property taxes; management fees; labor, including all wages and salaries; social security and other taxes which may be levied against Landlord will provide access upon such wages and salaries; supplies; repairs and maintenance; maintenance and service contracts; painting; wall and window washing; tools and equipment (which are not required to Tenant, at reasonable times, be capitalized for federal income tax purposes); trash removal; lawn care; snow removal and all other items properly constituting direct operating costs according to Landlord's books and records relating standard accounting practices (collectively referred to as the preparation “Operating Costs” in this Lease); but not including depreciation of Landlord's statement, and Tenant may inspect and copy such records as are necessary to verify the accuracy Building or equipment; interest; income or excess profits taxes; costs of maintaining the Landlord's annual statement. In the event of a dispute’s corporate existence; franchise taxes; any expenditures required to be capitalized for federal income tax purposes, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For unless said expenditures are for the purpose of this Paragraph 4.2, Landlord's reducing Operating Costs shall exclude at the interest and amortization on mortgages for the Building and Lot Real Property, or leasehold For this purpose of this Paragraph 4.2, Landlord's Operating Costs shall include, without limitation: those which under generally applied real estate taxes on practice are expensed or regarded as deferred expenses or are required under any Legal Requirement, in which event the Building and Lot; installments and interest on assessments for public betterments or public improvements (other than those if any, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent costs thereof shall be included. Notwithstanding anything contained herein to the Lot); expenses of contrary, any proceedings for abatement of taxes and If additional costs incurred by Landlord during the management fee is reduced Calendar Year by reason of a tenant's default Landlord or any of its vendors entering into new labor contracts or renewals or modifications of existing labor contracts will not be included in the payment of fixed or additional rent, Landlord shall reduce the Annual Estimated Base Operating Costs by the amount of such reduction in the management feeCosts. In case addition, Tenant will pay Landlord Tenant’s Percentage of services which are all costs and expenses incurred by Landlord in connection with complying with any “homeland security” requirements and such costs and expenses will not rendered to all areas on a comparable basis, the proportion allocable to the Premises shall be the same proportion which the Rentable Floor Area of Tenant's Space bears to the total rentable floor area to which such service is so rendered (such latter area to be determined included in the same manner as the Total Rentable Floor Area of the Building)Operating Costs.
Appears in 1 contract
Samples: Agreement (Ophthotech Corp.)
Operating Cost Escalation. With respect to the First Fiscal Year for Tenant's Paying Operating Cost Escalation, or fraction thereof, and any Fiscal Year or fraction thereafter, Tenant shall pay to Landlord, as additional rentAdditional Rent, Operating Cost Escalation (as defined below), if any, ) on or before the thirtieth 10th day following receipt by Tenant of Landlord's Operating Cost Statement (as defined below). As soon as practicable after After the end of each Fiscal Year ending calendar year during the Term term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("Landlord's Operating Cost Statement") in reasonable detail and according to usual accounting practices practices, certified by Landlord Landlord, and showing for the preceding Fiscal Year calendar year or fraction thereof, as the case may be, Landlord's Operating CostsCosts (as defined below). Upon request, Landlord will provide access to Tenant, at reasonable times, to Landlord's books and records relating to the preparation of Landlord's statement, and Tenant may inspect and copy such records as are necessary to verify the accuracy of the Landlord's annual statement. In the event of a dispute, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For the purpose of this Paragraph 4.2, Landlord's Operating Costs shall exclude the interest and amortization on mortgages for the Building and Lot or leasehold For this purpose of this Paragraph 4.2, Landlord's Operating Costs shall include, without limitation: real estate , premiums for insurance covered by Landlord with respect to the Property; compensation and all fringe benefits, worker's compensation, insurance premiums and payroll taxes on paid by Landlord to, for or with respect to all persons engaged in the managing, operating, maintaining or cleaning of the Property below the grade of property manager; water and sewer use charges for the Property; all utility charges attributable to the interior and exterior common areas and facilities of the Property; payments to contractors and management companies under service or management contracts (or other costs incurred directly by Landlord or its agents) for operating, managing, cleaning, maintaining and repairing the Property, including, without limitation, management fees, Building cleaning, window cleaning, pest extermination, trash removal, landscaping, snow removal and repair and maintenance to elevators, the HVAC, electric and plumbing systems and parking areas (which payments may be to affiliates of Landlord, provided the same are at reasonable rates), and all other reasonable and necessary costs and expenses paid in connection with the cleaning, operating, managing, maintaining, replacing and repairing of the Building or any other portion of the Property (except for capital repairs to or capital replacements of the roof or the foundation or structure of the Building which shall be made by Landlord at its sole cost and Lot; installments expense and interest not passed through as Operating Costs). The following capital repairs and capital replacements are the only categories of capital expenditure that may be included in Operating Costs and the same may be included on assessments for public betterments an amortized basis only, as set forth below: (a) capital expenditures required to comply with laws enacted or public improvements requirements of laws applicable after the date of this Lease or (other than those if any, relating b) capital expenditures to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent repair or replace building systems or components thereof. Capital expenditures made pursuant to the Lot); preceding sentence shall be amortized over the useful life of the item in question with interest thereon at an annual rate equal to two (2%) percent above the base rate (prime rate) of Fleet Bank of Boston (or any other Bank having offices in Boston, Massachusetts chosen by Landlord) from time to time, shall be included in Landlord's Operating Costs. Without limiting the generality of the foregoing, it is also expressly understood and agreed that (a) all costs, expenses and charges (collectively, the "Park Common Expenses") of any proceedings for abatement kind or nature charged or assessed to the Property (or any part thereof) under the Park Covenants and/or Cross Easement, as either the same may be amended, restated, modified, changed, supplemented or substituted from time to time and (b) the cost of taxes all insurance required to be carried by Landlord under the Ground Lease or which Landlord carries under the Ground Lease shall be included in Operating Costs. Tenant also agrees that, at the option of Landlord, the entire cost of all replacements of component parts of machinery and If the management fee is reduced by reason equipment which require periodic replacement or regularly wear out may be treated as an expense and shall be fully included as part of a tenantLandlord's default in the payment of fixed or additional rent, Landlord shall reduce the Annual Estimated Operating Costs without the need to amortize or depreciate the same In determining Landlord's Operating Costs, if less than 95% of the Building shall have been occupied by tenants and fully used by them, at any time during the year, Landlord's Operating Costs which vary directly with the level of Building occupancy (such as cleaning and trash removal) shall be extrapolated to an amount of such reduction in the management fee. In case of services which are not rendered to all areas on a comparable basis, the proportion allocable equal to the Premises shall like operating expenses that would normally be expected to be incurred had such occupancy been 95% and had such full utilization been made during the same proportion entire period, but those Operating Costs which do not vary directly with the Rentable Floor Area level of Tenant's Space bears to the total rentable floor area to which such service is so rendered Building occupancy (such latter area as security costs, snow plowing, utilities to common areas and the like) shall not be determined in the same manner as the Total Rentable Floor Area of the Building)so extrapolated.
Appears in 1 contract
Samples: Lease (Netezza Corp)
Operating Cost Escalation. With respect to the First Fiscal Year for Tenant's ’s Paying Operating Cost Escalation, or fraction thereof, and any Fiscal Year or fraction thereafter, Tenant shall pay to Landlord, as additional rent, Tenant’s share of the Operating Cost Escalation (as defined below), if any, on or before before, the thirtieth (30th) day following receipt by Tenant of Landlord's ’s Statement (as defined below). As soon as practicable after the end of each Fiscal Year ending during the Term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("“Landlord's ’s Statement"”) in reasonable detail and according to usual accounting practices certified by Landlord and showing for the preceding Fiscal Year or fraction thereof, as the case may be, Landlord's ’s Operating Costs. Upon request, Landlord will provide access to TenantEXCLUDING the principal, at reasonable times, to Landlord's books and records relating to the preparation of Landlord's statement, and Tenant may inspect and copy such records as are necessary to verify the accuracy of the Landlord's annual statement. In the event of a dispute, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For the purpose of this Paragraph 4.2, Landlord's Operating Costs shall exclude the interest and amortization on mortgages for the Building Building, and Lot or leasehold For this purpose interests therein, depreciation, improvements made to the Building, the Lot or the Park that do not lower operating costs, and the cost of this Paragraph 4.2special services rendered to tenants (including Tenant) for which a special charge is made, Landlord's Operating Costs shall includeBUT INCLUDING, without limitation: real estate taxes on the Building and Lot; installments and reasonable interest on assessments for public betterments or public improvements (other than those if any, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent to the Lot)improvements; expenses of any proceedings for abatement of taxes and If the management fee is reduced by reason assessments with respect to any Fiscal Year or fraction of a tenant's default Fiscal Year; reasonable premiums for insurance; reasonable compensation and all fringe benefits for fully time employees at the Building, workmen’s compensation, insurance premiums and payroll taxes paid by Landlord to, for or with respect to all persons engaged in the operating, maintaining, or cleaning of the Building and Lot; water, sewer, gas, telephone and the electricity to operate the base building heating, ventilating, air conditioning systems, elevators and parking lot lighting, and other utility charges not billed directly to tenants by Landlord or the utility companies (the cost for the electricity consumed by the tenant for interior lighting, plugs, equipment, supplemental air conditioning and fixtures in shall be billed monthly to Tenant by Landlord as set forth in Paragraph IX of Exhibit “D”); measurable and market costs of building and cleaning supplies and equipment (including rental); reasonable cost of maintenance, cleaning and repairs, including without limitation the services provided in Exhibit “D” hereof; cost of snow plowing or removal, or both, and care of landscaping; payments to independent contractors under service contracts for cleaning, operating, managing, maintaining and repairing the Building and Lot (which payments may be to affiliates of Landlord provided the same are at reasonable rates consistent with the type of occupancy and the services rendered); the Building’s pro rata share (i.e. approximately 39.45% as hereinafter provided) of the cost of operating, maintaining and repairing the common areas and facilities within the Park (such as, but not limited to, snow plowing, sanding, sand removal, lot sweeping, landscaping, common area and street lighting, and management); and all other reasonable and necessary expenses paid in connection with the operation, cleaning, maintenance, and repair of the Building and Lot, or either, and properly chargeable against income. If Landlord (i) installs a new or replacement capital item for the purposes of (i) reducing Landlord’s Operating Costs, or (ii) is required to perform capital repairs or replacements or to install capital items in order to comply with changes in applicable law from and after the Commencement Date, or (iii) or is required pursuant to Section 5.1.3 to perform capital repairs or replacements which are chargeable to Tenant to the extent provided by the provisions of this Section, the costs thereof as reasonably amortized by Landlord over their useful life in accordance with generally accepted accounting principles, with legal interest (not to exceed the then “Prime Rate” published in the Wall Street Journal plus two percent (2%) per annum) (“Agreed Interest Rate”) on the unamortized amount, shall be included in “Landlord’s Operating Costs”. In such event, Tenant shall pay Tenant’s share of such amortization payment for each month after such improvement is completed until the first to occur of fixed the expiration of the Term or additional rent, the end of the term over which such costs are required to be amortized. Landlord shall reduce the Annual Estimated agrees that all of such services to be included in Landlord’s Operating Costs shall be obtained by Landlord at commercially reasonable, competitive market rates consistent with the amount operation and management of such reduction comparable Class A office buildings in the management feesuburban Boston area. In case of services which are not rendered to all areas on a comparable basis, the proportion allocable Notwithstanding anything to the Premises contrary contained herein, in no event shall be Landlord’s Operating Costs include (nor shall Tenant have any obligation to pay any Operating Cost Escalation on account of) the same proportion which the Rentable Floor Area of Tenant's Space bears to the total rentable floor area to which such service is so rendered (such latter area to be determined in the same manner as the Total Rentable Floor Area of the Building).following:
Appears in 1 contract
Samples: Sublease (Demandware Inc)
Operating Cost Escalation. With respect to the First Fiscal Year for Tenant's Paying Operating Cost Escalation, or fraction thereof, and any Fiscal Year or fraction thereafterthereafter during the Term, Tenant shall pay to Landlord, as additional rent, Operating Cost Escalation (as defined below), if any, on or before the thirtieth day following receipt by Tenant of Landlord's Statement (as defined below). As soon as practicable after the end of each Fiscal Year ending during the Term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("Landlord's Statement") in reasonable detail and according to usual generally accepted accounting practices principles consistently applied certified by Landlord and showing for the preceding Fiscal Year or fraction thereof, as the case may be, "Landlord's Operating Costs. Upon request, Landlord will provide access to Tenant, at reasonable times, to Landlord's books and records relating to the preparation of Landlord's statement, and Tenant may inspect and copy such records as are necessary to verify the accuracy of the Landlord's annual statement. In the event of a dispute, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For the purpose of this Paragraph 4.2, Landlord's Operating Costs shall exclude ," EXCLUDING the interest and amortization on mortgages for the Building and Lot or leasehold For this purpose interests therein and the cost of this Paragraph 4.2special services rendered to tenants (including Tenant) for which a special charge is made, Landlord's Operating Costs shall includeBUT INCLUDING, without limitation: real estate taxes on the Building Building, the Lot and Lotthe Common Areas of the Park; installments and interest on assessments for public betterments or public improvements (other than those if any, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent to the Lot)improvements; expenses of any proceedings for abatement of taxes and If the management fee is reduced by reason assessments with respect to any Fiscal Year or fraction of a tenantFiscal Year; premiums for insurance required to be maintained by Landlord pursuant to this Lease; compensation and all fringe benefits, workmen's default compensation, insurance premiums and payroll taxes paid by Landlord to, for or with respect to all persons engaged in the payment operating, maintaining, or cleaning of fixed the Building and Lot; steam, water, sewer, electric, gas, telephone, and other utility charges not billed directly to tenants by Landlord or additional rentthe utility, but not including the cost to Landlord shall reduce the Annual Estimated Operating Costs of electricity furnished for lighting, electrical facilities, equipment, machinery, fixtures and appliances used by the amount of such reduction Tenant in the management fee. In case of services which are not rendered to all areas on a comparable basis, the proportion allocable to the Premises shall be the same proportion which the Rentable Floor Area of Tenant's Space bears (other than Building heating, ventilating and air conditioning equipment) as set forth in Paragraph VII of Exhibit D; costs of building and cleaning supplies and equipment (including rental); cost of maintenance, cleaning and repairs; cost of snow plowing or removal, or both, and care of landscaping; payments to independent contractors under service contracts for cleaning, operating, managing, maintaining and repairing the Building and Lot (which payments may be to affiliates of Landlord provided the same are at reasonable rates consistent with similar contracts with unaffiliated third parties); the Building's pro rata share of the cost of operating, maintaining and repairing the Common Areas of the Park (such as, but not limited to, snow plowing, landscaping, common area and street lighting, security and management); and all other reasonable and necessary expenses paid in connection with the operation, cleaning, maintenance, and repair of the Building and Lot, or either, and properly chargeable against income. Landlord agrees that all of such services to be included in Landlord's Operating Costs shall be obtained by Landlord at commercially reasonable, competitive market rates consistent with the operation and management of comparable office buildings in the suburban Boston area. Notwithstanding anything to the total rentable floor area contrary contained herein, in no event shall Landlord's Operating Costs include (nor shall Tenant have any obligation to which such service is so rendered (such latter area to be determined in pay any Operating Costs Escalation on account of) the same manner as the Total Rentable Floor Area of the Building).following:
Appears in 1 contract
Samples: Open Market Inc
Operating Cost Escalation. With respect to the First Fiscal Year for Tenant's Paying Operating Cost Escalation, or fraction thereof, and any Fiscal Year or fraction thereafter, Tenant shall pay to Landlord, as additional rentAdditional Rent, Operating Cost Escalation (as defined below), if any, ) on or before the thirtieth 30th day following receipt by Tenant of Landlord's Operating Cost Statement (as defined below). As soon as practicable after After the end of each Fiscal Year ending calendar year during the Term term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("Landlord's Operating Cost Statement") in reasonable detail and according to usual accounting practices practices, certified by Landlord Landlord, and showing for the preceding Fiscal Year calendar year or fraction thereof, as the case may be, Landlord's Operating Costs. Upon request, Landlord will provide access to Tenant, at reasonable times, to Landlord's books and records relating to the preparation of Landlord's statement, and Tenant may inspect and copy such records Costs (as are necessary to verify the accuracy of the Landlord's annual statement. In the event of a dispute, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For the purpose of this Paragraph 4.2, Landlord's Operating Costs shall exclude the interest and amortization on mortgages for the Building and Lot or leasehold For this purpose of this Paragraph 4.2defined below), Landlord's Operating Costs shall include, without limitation: real estate , premiums for insurance covered by Landlord with respect to the Property; compensation and all fringe benefits, worker's compensation, insurance premiums and payroll taxes on paid by Landlord to, for or with respect to all persons engaged in the managing, operating, maintaining or cleaning of the Property (If such persons are engaged with respect to more than one property, such costs shall be appropriately allocated among the Property and such other properties); water and sewer use charges for the Property; all utility charges not billed directly to tenants by Landlord or the utility; payments to contractors and management companies under service or management contracts (or other costs incurred directly by Landlord or its agents) for operating, managing, cleaning, maintaining and repairing the Property, including, without limitation, management fees, Building cleaning, window cleaning, pest extermination, trash removal, landscaping, snow removal and repair and maintenance to elevators, the HVAC, electric and plumbing systems and parking areas (which payments may be to affiliates of Landlord, provided the same are at reasonable rates), and all other reasonable and necessary expenses paid in connection with the cleaning, operating, managing, maintaining, replacing or repairing of the Building or any portion or component thereof and/or any portion of the Property including, without limitation, the operation or maintenance of a cafeteria/food service operation in the Building; it being agreed that if Landlord shall install a new or replacement capital item, the annual amortization (determined by Landlord) of the cost thereof, with interest thereon at an annual rate equal to two (2%) percent above the base rate (prime rate) of BankBoston (or any other Bank having offices in Boston, Massachusetts chosen by Landlord) from time to time, shall be included in Landlord's Operating Costs. Without limiting the generality of the foregoing, it is expressly understood and Lot; installments agreed that all costs and expenses allocated to the Property under the Park Covenants, as the same may be amended, restated, modified, changed, supplemented or substituted from time to time shall not be included in Operating Costs but shall be payable as provided in Section 5.3 hereof. If, during the Term of this Lease, Landlord shall incur capital expenses in connection with repairs or replacement of the roof, foundation or structure of the Building, there shall be included in Landlord's Operating Costs for that and in each succeeding calendar year, the amount of the annual amortization (determined by Landlord) of the cost thereof, with interest on assessments for public betterments thereon, at an annual rate equal to two (2%) percent above the base rate (prime rate) of BankBoston (or public improvements any other bank having offices in Boston, Massachusetts chosen by Landlord) from time to time in effect at the time of making such capital repairs or replacements (less insurance proceeds or other than those proceeds, if any, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent to the Lot); expenses of any proceedings for abatement of taxes and If the management fee is reduced collected by Landlord by reason of damage to, or destruction of, any capital items so repaired). In replacing a tenant's default in the payment of fixed or additional rentcapital item, Landlord shall reduce the Annual Estimated replace such capital item with a capital item of substantially similar quality and utility to that being replaced so long as such a replacement is deemed appropriate and prudent in light of ownership and management practices then being employed in other first class office buildings. Landlord's Operating Costs shall not include any cost or expense covered by a warranty to the amount extent of such reduction in the management feecoverage afforded by said warranty and Landlord shall use good faith efforts to realize coverage under applicable warranties. In case determining Landlord's Operating Costs, if less than 95% of services which are not rendered the Building shall have been occupied by tenants and fully used by them, at any time during the year, Landlord's Operating Costs shall be extrapolated to all areas on a comparable basis, the proportion allocable an amount equal to the Premises shall like operating expenses that would normally be the same proportion which the Rentable Floor Area of Tenant's Space bears to the total rentable floor area to which such service is so rendered (such latter area expected to be determined in incurred had such occupancy been 95% and had such full utilization been made during the same manner as the Total Rentable Floor Area of the Building)entire period.
Appears in 1 contract
Samples: Disturbance and Attornment Agreement (Genzyme Transgenics Corp)
Operating Cost Escalation. With respect to From and after the First Fiscal Base Year as same is stated on the Summary Pages, if the Operating Costs incurred for Tenant's Paying Operating Cost Escalation, or fraction thereofthe Building in which the Premises are located, and Office Building Area (including parking and landscaped and access areas), for any Fiscal Year calendar year or fraction thereafter, proportionate part thereof during the lease term or any renewal term shall be greater than the Base Operating Costs then Tenant shall pay to Landlord, the Landlord as additional rent, rent its proportionate share of all such Operating Cost Escalation (as defined below), if any, on or before the thirtieth day following receipt by Tenant Costs in excess of Landlord's Statement (as defined below). As soon as practicable after the end of each Fiscal Year ending during the Term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("Landlord's Statement") in reasonable detail and according to usual accounting practices certified by Landlord and showing for the preceding Fiscal Year or fraction thereof, as the case may be, Landlord's Base Operating Costs. Upon request, Landlord will provide access to Tenant, at reasonable times, to Landlord's books and records relating to the preparation of Landlord's statement, and Tenant may inspect and copy such records as are necessary to verify the accuracy of the Landlord's annual statement. In the event of a dispute, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For the purpose of this Paragraph 4.2, Landlord's Operating Costs shall exclude the interest and amortization on mortgages for the Building and Lot or leasehold For this purpose of this Paragraph 4.2, Landlord's Operating Costs shall include, without by way of illustration and not of limitation: real estate taxes , personal property taxes, reasonable management fees actually charged to the Owner, labor, charges for persons working at the Building for time spent working at or on the Building (for management services), including all wages and Lot; installments salaries, social security taxes, and interest other taxes which may be levied against Landlord upon such wages and salaries, supplies, repairs and maintenance, maintenance and service contracts, cost of painting, wall and window washing, laundry and towel service, tools and equipment, fire and other insurance, cost of electrical surveys, trash removal, lawn care, snow removal, capital expenditures on assessments for public betterments items that reduce operating expenses amortized over the useful life of the capital improvement or public improvements replacement, and other items properly constituting out of pocket operating costs according to standard accounting practices (other than those if anyherein collectively referred to as the "Operating Costs). Not included in Operating Costs, relating to a traffic signal are interest, mortgage debt service, income or excess profit taxes, costs of maintaining the Landlord's corporate existence, franchise taxes, or office expenses, or salaries of the Landlord's executive officers, or fuel, utility and related accessory improvements and turnaround on Route 9 adjacent to electric cost escalation which is covered in subsection B post. As used in this Section 35, the Lot); expenses of any proceedings for abatement of taxes and If the management fee is reduced by reason of a tenant's default in the payment of fixed or additional rent, Landlord shall reduce the Annual Estimated Base Operating Costs by the amount of such reduction in the management fee. In case of services which are not rendered to all areas on a comparable basis, the proportion allocable to the Premises shall be the same proportion which Operating Costs incurred during the Rentable Floor Area of Tenant's Space bears Base Year shown on the Summary Page (page 2) as reasonably and fairly adjusted, however, to the total rentable floor area reflect any projections that are needed to which such service is so rendered (such latter area to be determined compensate for vacancies in the same manner building during the Base Year or in any calendar year during the Term (or Extended Term) -- the projection to proceed on the premises as the Total Rentable Floor Area if at least 95% of the Building)rentable portion of the building were in fact occupied throughout the whole year.
Appears in 1 contract
Samples: Lease Agreement (Access Integrated Technologies Inc)
Operating Cost Escalation. With respect If during the Lease Term the Operating Costs incurred for the Building in which the Demised Premises are located, Complex and Parcel, for any Lease Year or proportionate part thereof if the Lease Term expires prior to the First Fiscal expiration of a Lease Year for Tenant's Paying (herein the "Comparison Period") shall be greater than the Base Operating Cost EscalationCosts (adjusted proportionately if the Comparison Period is less than a Lease Year), or fraction thereof, and any Fiscal Year or fraction thereafter, Tenant then Lessee shall pay to LandlordLessor, as additional rentAdditional Rent, Operating Cost Escalation (as defined below), if any, on or before the thirtieth day following receipt by Tenant Lessee's Percentage of Landlord's Statement (as defined below). As soon as practicable after the end of each Fiscal Year ending during the Term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("Landlord's Statement") in reasonable detail and according to usual accounting practices certified by Landlord and showing for the preceding Fiscal Year or fraction thereof, as the case may be, Landlord's all such excess Operating Costs. Upon request, Landlord will provide access to Tenant, at reasonable times, to Landlord's books and records relating to the preparation of Landlord's statement, and Tenant may inspect and copy such records as are necessary to verify the accuracy of the Landlord's annual statement. In the event of a dispute, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For the purpose of this Paragraph 4.2, Landlord's Operating Costs shall exclude the interest and amortization on mortgages for the Building and Lot or leasehold For this purpose of this Paragraph 4.2, Landlord's Operating Costs shall include, without by way of illustration and not of limitation: real estate personal property taxes; management fees; labor, including all wages and salaries; social security taxes, and other taxes on which may be levied against Lessor upon such wages and salaries; employee benefits and payroll taxes; accounting and legal fees; any sales, use or service taxes incurred in connection with the Building operation of the Complex or Parcel; supplies; repairs and Lotmaintenance; installments maintenance and interest on assessments for public betterments or public improvements service contracts; the cost of security and alarm services; license permits and inspection fees; painting; wall and window washing; laundry and towel service; tools and equipment (other than those if any, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent to the Lot); expenses of any proceedings for abatement of taxes and If the management fee is reduced by reason of a tenant's default in the payment of fixed or additional rent, Landlord shall reduce the Annual Estimated Operating Costs by the amount of such reduction in the management fee. In case of services which are not rendered required to be capitalized for Federal income tax purposes); fire and other insurance; trash removal; lawn care; snow removal and all areas other items properly constituting direct operating costs according to standard accounting practices (hereinafter collectively referred to as the "Operating Costs"). Lessor shall be entitled to amortize and include in Operating Costs an allocable portion of the cost of capital improvement items, including life safety systems, which are reasonably calculated to reduce operating expenses or which are required under any governmental laws, regulations or ordinances which were not applicable to the Building or Complex or Parcel at the time it was constructed. All such costs shall be amortized over the reasonable life of such improvements with interest at two (2%) percent over the prime lending rate announced as such by Chase Manhattan Bank to its most creditworthy borrowers on a comparable basisthe unamortized amount in accordance with such reasonable life and amortization schedules as shall be determined by Lessor in accordance with generally accepted accounting principles. As used in this Subsection 25(A), the proportion allocable to the Premises Base Period Costs for Operating Costs shall be as defined on the same proportion which the Rentable Floor Area of Tenant's Space bears to the total rentable floor area to which such service is so rendered (such latter area to be determined in the same manner as the Total Rentable Floor Area of the Building)Reference Page.
Appears in 1 contract
Samples: Lease Agreement (Goamerica Inc)
Operating Cost Escalation. With respect to If the First Fiscal Year Operating Costs incurred for Tenant's Paying Operating Cost Escalation, or fraction thereofthe Building in which the Demised Premises are located, and Office Building Area, for any Fiscal Year calendar year or fraction thereafterproportionate part thereof during the Lease term, Tenant shall be greater than the Base Operating costs (adjusted proportionately for periods less than a lease year), then Lessee shall pay to Landlord, Lessor as additional rent, Operating Cost Escalation (as defined below), if any, on or before the thirtieth day following receipt by Tenant rent its proportionate share of Landlord's Statement (as defined below). As soon as practicable after the end of each Fiscal Year ending during the Term and after Lease termination, and in either case, no later than 180 days thereafter, Landlord shall render a statement ("Landlord's Statement") in reasonable detail and according to usual accounting practices certified by Landlord and showing for the preceding Fiscal Year or fraction thereof, as the case may be, Landlord's all such excess Operating Costs. Upon request, Landlord will provide access to Tenant, at reasonable times, to Landlord's books and records relating to the preparation of Landlord's statement, and Tenant may inspect and copy such records as are necessary to verify the accuracy of the Landlord's annual statement. In the event of a dispute, Tenant shall have the right to conduct or have conducted an audit according to generally accepted accounting principles consistently applied, with which Landlord shall cooperate in good faith. In the event of an error of five percent or more, Landlord shall bear all costs of such inspection and audit. For the purpose of this Paragraph 4.2, Landlord's Operating Costs shall exclude the interest and amortization on mortgages for the Building and Lot or leasehold For this purpose of this Paragraph 4.2, Landlord's Operating Costs shall include, without by way of illustration and not of limitation: real estate , management fees, provided same do not exceed 4% of the gross rentals of the building, labor, including all wages and salaries, social security taxes, and other taxes on which may be levied against Lessor upon wages and salaries (except salaries for partners of the Building Landlord and/or management personnel of the Landlord), supplies, repairs and Lot; installments maintenance, maintenance and interest on assessments for public betterments or public improvements service contracts, painting, wall and window washing, laundry and towel service, tools and equipment (other than those if any, relating to a traffic signal and related accessory improvements and turnaround on Route 9 adjacent to the Lot); expenses of any proceedings for abatement of taxes and If the management fee is reduced by reason of a tenant's default in the payment of fixed or additional rent, Landlord shall reduce the Annual Estimated Operating Costs by the amount of such reduction in the management fee. In case of services which are not rendered required to be capitalized for federal income tax purposes), fire and other insurance (except for health, accident and group life insurance for partners of the Landlord and/or management personnel of the Landlord), trash removal, lawn care, snow removal, and all areas other items properly constituting direct operating costs according to standard accounting practices (hereinafter collectively referred to as the "Operating Costs"), but not including depreciation of Building or equipment, interest, and amortization on a any mortgage or other debt service not in the ordinary course of operating the facility, income or excess profit taxes, cost of maintaining the Lessor's corporate existence, franchise taxes, any expenditures required to be capitalized for federal income tax purposes or office expenses, manager fees or salaries of the Lessor's executive officers, providing that the good and services provided by the Landlord to the building are of comparable basiscosts to other suppliers, and that the repairs to and the physical maintenance of the premises shall not include any capital improvements or replacement of the plant, parking lot, utility and air conditioning systems. As used in this Paragraph 34 "A", the proportion allocable to the Premises Base Operating Costs shall be the Operating Costs incurred during the first (1st) twelve (12) months of Lessee's occupancy, projected as though said building was fully occupied, if same proportion which the Rentable Floor Area is not fully occupied during said first (1st) twelve (12) months of TenantLessee's Space bears to the total rentable floor area to which such service is so rendered (such latter area to be determined in the same manner as the Total Rentable Floor Area of the Building)occupancy. NOTWITHSTANDING THE FOREGOING, OPERATING COSTS SHALL EXCLUDE THE FOLLOWING: ALL CAPITAL EXPENDITURES OR IMPROVEMENTS, REAL ESTATE TAXES, WAGES AND BEFITS OF EMPLOYEES ABOVE THE LEVEL OF BUILDING MANAGER, ALL COSTS FOR WHICH LANDLORD IS REIMBURSED BY INSURANCE, OTHER TENANTS OR OTHERWISE, COSTS OF LEASING SPACE IN THE BUILDING AND COSTS TO CURE EXISTING VIOLATIONS OF LAW.
Appears in 1 contract
Samples: Lease (Global Sources LTD)
