Common use of Operating Cost Escalation Clause in Contracts

Operating Cost Escalation. 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 expiration of a Lease Year (herein the "Comparison Period") shall be greater than the Base Operating Costs (adjusted proportionately if the Comparison Period is less than a Lease Year), then Lessee shall pay to Lessor, as Additional Rent, its Proportionate Share, as hereinafter defined, of all such excess Operating Costs. Operating Costs shall include, by way of illustration and not of limitation: personal property taxes; management fees not in excess of 5% of the gross rental income; labor including all wages and salaries, social security taxes, and other taxes which may be levied against Lessor upon such wages and salaries; supplies; repairs and maintenance; maintenance and service contracts; painting; wall and window washing; laundry and towel service; tools and equipment; fire and other insurance; trash removal; lawn care; snow removal and all other items properly constituting direct operating costs according to standard accounting practices whether or not the same shall be enumerated as part of the services or obligations of Lessor hereunder (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 the Lessor's corporate existence; franchise taxes and not including the items set forth in Exhibit C-1 attached hereto and made a part hereof. As used in this Subsection 23, the Base Period Costs for Operating Costs, herein the Base Operating Costs, shall be those costs incurred during the Lease Year commencing September 1, 1997.

Operating Cost Escalation. If during the Lease term Term the Operating Costs incurred for the Building in which the Demised Premises are located located, Complex and Office Building Area Parcel, for any Lease Year or proportionate part thereof if the Lease term Term expires prior to the expiration of a Lease Year (herein the "Comparison PeriodCOMPARISON PERIOD") shall be greater than the Base Operating Costs (adjusted proportionately if the Comparison Period is less than a Lease Year), then Lessee shall pay to Lessor, as Additional Rent, its Proportionate Share, as hereinafter defined, Lessee's Percentage of all such excess Operating Costs. Operating Costs shall include, by way of illustration and not of limitation: personal property taxes; management fees not in excess of 5% of the gross rental incomefees; labor labor, including all wages and salaries, ; social security taxes, and other taxes 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 operation of the Complex or Parcel; supplies; repairs and maintenance; maintenance and 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 equipmentequipment (which are not 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 other items properly constituting direct operating costs according to standard accounting practices whether or not the same shall be enumerated as part of the services or obligations of Lessor hereunder (hereinafter collectively referred to as the "OPERATING COSTS"). Lessor shall be entitled to amortize and include in Operating Costs"Costs an allocable portion of the cost of capital improvement items, but 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 including: depreciation of applicable to the Building or equipment; interest; income Complex or excess profits taxes; Parcel at the time it was constructed. All such costs shall be amortized over the reasonable life of maintaining such improvements with interest at two (2%) percent over the Lessor's corporate existence; franchise taxes prime lending rate announced as such by Chase Manhattan Bank to its most creditworthy borrowers on the unamortized amount in accordance with such reasonable life and not including the items set forth amortization schedules as shall be determined by Lessor in Exhibit C-1 attached hereto and made a part hereofaccordance with generally accepted accounting principles. As used in this Subsection 2325(A), the Base Period Costs for Operating Costs, herein the Base Operating Costs, Costs shall be those costs incurred during as defined on the Lease Year commencing September 1, 1997Reference Page. Any Operating Costs which under generally accepted accounting principles are to be capitalized shall be capitalized by Lessor hereunder and amortized over their useful lives.

Operating Cost Escalation. If during the Lease term 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 Term expires prior to the expiration of a Lease Year (herein the "Comparison Period") shall be greater than the Base Operating Costs (adjusted proportionately if the Comparison Period is less than a Lease Year), then Lessee shall pay to Lessor, as Additional Rent, its Proportionate Share, as hereinafter defined, of all such excess Operating Costs. Operating Costs shall include, by way of illustration and not of limitation: personal property taxes; management fees not in excess of 5% of the gross rental incomefees; labor labor, including all wages and salaries, social security taxes, and other taxes which may be levied against Lessor upon such wages and salaries; supplies; repairs and maintenance; maintenance and service contracts; painting; wall and window washing; laundry and towel service; tools and equipment; fire and other insurance; trash removal; lawn care; snow removal and all other items properly constituting direct operating costs according to standard accounting practices whether or not the same shall be enumerated as part of the services or obligations of Lessor hereunder (hereinafter collectively referred to as the "Operating Costs"), but not including: depreciation of Building or equipment; interest; income or income, excess profits or similar taxes; costs of maintaining the Lessor's corporate existence; and franchise taxes and not including the items set forth in Exhibit C-1 attached hereto and made a part hereoftaxes. As used in this Subsection 2323(A), the Base Period Costs for Operating Costs, herein the Base Operating Costs, shall be those costs incurred during the Lease Year commencing September 1, 1997first twelve (12) months of the Term (exclusive of any extraordinary or one-time costs).

Operating Cost Escalation. (i) If during the Lease term Term the Operating Costs incurred for the Building in which the Demised Premises are located and Office Building Area Xxxxxx Xxxxxxxx Xxxx for any Lease Year calendar year or proportionate part thereof if the Lease term Term expires prior to the expiration of a Lease Year calendar year (herein the "Comparison Period") shall be greater than the Base Operating Costs (adjusted proportionately if the Comparison Period is less than a Lease Yearcalendar year), then Lessee shall pay to Lessor, as Additional Rent, its Proportionate Share, as hereinafter defined, Lessee's Percentage of all such excess Operating Costs. Operating Costs shall includeinclude all reasonable costs and expenses of owning, operating, managing, maintaining, repairing, replacing and securing the Building and the Office Building Area including, by way of illustration and not by way of limitation: personal property taxes; asset and/or property management fees not in excess of 5% of the gross rental incomefees; labor labor, including all wages and salariessalaries and benefits for those individuals rendering services to the Building and/or the Office Building Area, which are generally comparable to the wages, salaries and benefits paid to those providing services to other buildings of comparable quality in the general area of the Building but not including any employees above the rank of building or property manager; social security taxes, and other taxes (excluding late payment charges) which may be levied against Lessor upon such wages and salaries; supplies; repairs repairs, maintenance and maintenancereplacements; maintenance and service contracts; painting; wall and window washing; laundry and towel service; tools and equipmentequipment (which are not required to be capitalized under generally accepted accounting principles); fire fire, rent, liability and other insurance; trash removal; lawn care; snow removal removal; sums levied, assessed, imposed or required to be paid to any governmental authority on account of the parking of motor vehicles, including all sums 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 whether or not the same shall be enumerated as part of the services or obligations of Lessor hereunder (hereinafter collectively referred to as the "Operating Costs", ) but not including: including Real Estate Taxes (as hereinafter defined), Utility and Energy Costs, depreciation of Building or equipment; principal or interest; income or excess profits taxes; costs of maintaining the Lessor's corporate existence; franchise taxes taxes; any expenditures required to be capitalized (an "Included Capital Improvement") under generally accepted accounting principles, unless said expenditures are for the purpose of reducing Operating Costs within the Building and not including Office Building Area (and in such instance only to the items set forth extent of savings generated in Exhibit C-1 attached hereto connection therewith or the amortized amount as provided herein, if less) or are required under any mandatory governmental law, ordinance or regulation, in which event the costs thereof shall be included, but only to the extent of the amortization of such Included Capital Improvement over the useful life thereof; leasing commissions; tenant work allowances (or work done for tenants); brokerage commissions,; origination fees, points, mortgage recording taxes, title charges and made other costs or fees incurred in connection with financing or refinancing or sale or transfer of the Building or any portion thereof or any interest therein; attorneys fees in connection with leasing of space (or surrender, modification, termination, extension or enforcement of any lease); any expense paid to any related entity to the extent such payment exceeds competitive charges in a part hereofbona fide arms-length transaction; marketing, promotion and advertising expenses; ground rent. As used in this Subsection 2322(A), the Base Period Costs for Operating Costs, herein the Base Operating Costs, Costs shall be those costs incurred during as defined in the Lease Year commencing September 1, 1997Preamble.