Operating Expense Escalation. Tenant shall be responsible to pay its Proportionate Share, as hereinafter defined, of the increase in Operating Expenses attributable to the Building that are in excess of Calendar Year 2023 Operating Expenses (the “Operating Expense Base Year”), any such excess, which amount shall be known as the “Operating Expenses Excess”. The projected Operating Expenses for the Operating Expense Base Year are depicted on Exhibit C, which is attached hereto and made a part hereof. Tenant’s Proportionate Share is computed as follows: the numerator is Tenant’s rentable square feet (10,356) and the denominator is the Building’s total rentable square feet (30,456). Initially, Tenant’s Proportionate Share is 34.00%. With respect to any Base Year or any subsequent year in which the Building is not occupied to the extent of 95% of the rentable area thereof, the Operating Expenses for such period which vary with the occupancy of the Building, for the purposes hereof, be increased to the amount which would have been incurred had the Building been occupied to the extent of 95% of the rentable area thereof, as reasonably determined by Landlord, provided, however, that in no event shall Tenant be responsible for any amount which is grossed up in excess of those amounts actually paid by Landlord. Landlord shall provide its calculations to Tenant upon Txxxxx’s request. Within ninety (90) days following the end of each calendar year during the term of this Lease, Landlord shall furnish to Tenant a statement of Landlord’s actual Operating Expenses for the previous calendar year and a determination of the amount of Operating Expenses Excess which is due for such calendar year. Tenant shall pay such amount to Landlord within thirty (30) days of its receipt of such statement. If Landlord fails to furnish Tenant with such statement within twelve (12) months of the end of the applicable calendar year, Landlord shall be deemed to have waived all rights to any reconciliation for Operating Expenses. Operating Expenses shall be defined as all actual costs and expenses incurred by Landlord, its agents, and/or designees in connect ion with operating, lighting, cleaning, maintaining, equipping, repairing, insuring, managing and/or replacing all or any part of the Building’s common areas (and any installations therein, thereon, thereunder or thereover), and all electrical, plumbing, and other systems of the Building not exclusively serving and paid for by particular tenants, which costs and expenses shall include, but shall not be limited to, the following: all of the costs and expenses incurred in cleaning, heating, ventilating, air conditioning, maintaining, painting, repainting, repairing and replacing common toilets, lobbies, corridors, elevators, and stairways; cleaning, planting, replanting and maintaining the landscaped areas and other areas of the property not containing buildings, paving or similar improvements; the cost of all Landlord’s insurance for the Building including, but not limited to, fire and other casualty, rental income, bodily injury, public liability, property damage liability, automobile parking lot liability insurance, sign insurance, workmen’s compensation insurance, and any other insurance carried by Landlord for the Building in limits selected by Landlord, and the cost of any deductible carried by Landlord in the event of a casualty; assessments; repairs; repaving; line repainting; exterior repainting; rental and maintenance of signs and equipment; lighting; sanitary control; removal (including temporary storage) of snow and ice, trash, rubbish, garbage and other refuse; depreciation of machinery and equipment used in such maintenance and of all building systems; repair, maintenance and replacement of roofs; depreciation of roof and paved area; maintenance, repair and/or replacement of on-site utility systems (including, without limitation, water lines and electrical, gas, sanitary sewer, drainage and storm water systems), heating, ventilating and air conditioning systems, and alarm systems; all fuel for the Building’s central heating system; all electrical, water, sewer and other utility charges not separately metered and paid for by tenants; personal property taxes; sales and use taxes on material, equipment, supplies and services for the Building; fees for required licenses and permits; fire, security and police protection (if and to the extent provided by Landlord, without implying any obligation to do so unless otherwise specified in this Lease); operation and maintenance of public address system(s) and public toilets; reasonable straight line depreciation of, and all rental charges for, movable equipment; supplies, materials and labor for the Building; and the cost of any capital improvements (other than tenant improvements for specific tenants) made by or on behalf of Landlord to the Building or common area in order to (A) comply with any amendment or other change to the enactment or interpretation of any applicable laws from its enactment or interpretation after the Commencement Date (including, without limitation, under Section 11.02), or (B) intended to reduce Operating Expenses or improve life/safety conditions, but only to the extent of the amortized amount thereof over the useful life of such capital improvements as determined in accordance with generally accepted accounting principles consistently applied. Specifically excluded from Operating Expenses, notwithstanding the foregoing, are (i) the cost of capital improvements except as expressly provided above; (ii) all costs relating to the leasing and build-out of space for other tenants of the Building or reimbursable by such other tenants or for selective services provided to any specific tenant; (iii) principal, interest and other charges payable in connection with any financing or refinancing of the Building, and all other direct costs of refinancing, selling or exchanging the Building, including broker commissions, attorney’s fees and closing; (iv) real estate brokers’ leasing commissions or compensation and advertising and other marketing expenses and attorneys’ fees associated with the leasing of the Building; (v) legal, space planning, construction, and other expenses incurred in procuring tenants for the Building or renewing or amending leases with existing tenants or occupants of the Building or any increase in insurance premiums to the extent that such increase is caused by the use or occupancy of another tenant; (vi) any expense for which Landlord actually receives reimbursement from insurance, condemnation awards, or other tenants (other than through the payment of additional rent under such tenants’ leases); (vii) overhead and profit increment paid to Landlord or to subsidiaries or affiliates of Landlord for goods and services to the extent the same materially exceeds the costs of such good and/or services rendered by unaffiliated third parties on a competitive basis; (viii) Landlord’s charitable or political contributions; (ix) acquisition costs of sculpture, paintings or objects of art; (x) Landlord’s corporate overhead and compensation for Landlord’s employees and for accounting services, except to the extent relating to operation of the Building; (xi) reserves of any kind, including reserves for equipment or capital replacement and future improvements, repairs or additions; (xii) management fees in the aggregate in excess of five percent (5%) of the total rent (including Base Rent, Escalations and other additional rent hereunder) for the Building;. The operating expenses shall be accounted for using the accrual basis under generally accepted accounting principles.
Appears in 1 contract
Operating Expense Escalation. Tenant In addition to the Fixed Rent payable by Subtenant hereunder, commencing on January 1, 2007, Subtenant shall be responsible to pay its Proportionate ShareSublandlord, as hereinafter definedadditional rent, an amount (“Operating Expense Escalation”) equal to Subtenant’s Share (as defined below) of the increase amount by which (I) the Tenant’s Operating Payment and real estate taxes (as defined in Operating Expenses attributable the Xxxxxxxxx) payable by Sublandlord to Rewards Network pursuant to Article 4 of the Building that are Xxxxxxxxx (both estimates as well as actuals) in excess respect of Calendar Year 2023 Operating Expenses (as defined in the “Xxxxxxxxx) pertaining to the Premises exceeds (II) the Tenant’s Operating Expense Payment payable by Sublandlord to Rewards Network pursuant to Article 4 of the Xxxxxxxxx (both estimates as well as actuals) for Base Year”), any such excess, which amount shall be known as the “Year Operating Expenses Excess”. The projected (as defined in the Xxxxxxxxx) 2006 in respect of Operating Expenses for calendar year 2007. Each Operating Expense Escalation payment payable by Subtenant hereunder shall be due and payable at the same time and in the same manner as Operating Expense increases are paid by Sublandlord under the Xxxxxxxxx, based on the computations that are provided to Sublandlord by Rewards Network. Sublandlord shall xxxx Subtenant for Operating Expense Escalations payable by Subtenant hereunder, such xxxx to set forth in reasonable detail the computation of the Operating Expense Base Year are depicted on Exhibit C, which is attached hereto and made a part hereof. Tenant’s Proportionate Share is computed as follows: the numerator is Tenant’s rentable square feet (10,356) and the denominator is the Building’s total rentable square feet (30,456). Initially, Tenant’s Proportionate Share is 34.00%. With respect to any Base Year or any subsequent year in which the Building is not occupied to the extent of 95% of the rentable area thereof, the Operating Expenses for such period which vary with the occupancy of the Building, for the purposes hereof, be increased to the amount which would have been incurred had the Building been occupied to the extent of 95% of the rentable area thereof, as reasonably determined by Landlord, provided, however, that in no event shall Tenant be responsible for any amount which is grossed up in excess of those amounts actually paid by Landlord. Landlord shall provide its calculations to Tenant upon Txxxxx’s request. Within ninety (90) days following the end of each calendar year during the term of this Lease, Landlord shall furnish to Tenant a statement of Landlord’s actual Operating Expenses for the previous calendar year and a determination of the amount of Operating Expenses Excess which is due for such calendar year. Tenant shall pay such amount to Landlord within thirty (30) days of its receipt of such statement. If Landlord fails to furnish Tenant with such statement within twelve (12) months of the end of the applicable calendar year, Landlord shall be deemed to have waived all rights to any reconciliation for Operating Expenses. Operating Expenses shall be defined as all actual costs and expenses incurred by Landlord, its agents, and/or designees in connect ion with operating, lighting, cleaning, maintaining, equipping, repairing, insuring, managing and/or replacing all or any part of the Building’s common areas (and any installations therein, thereon, thereunder or thereover), and all electrical, plumbing, and other systems of the Building not exclusively serving and paid for by particular tenants, which costs and expenses shall include, but shall not be limited to, the following: all of the costs and expenses incurred in cleaning, heating, ventilating, air conditioning, maintaining, painting, repainting, repairing and replacing common toilets, lobbies, corridors, elevators, and stairways; cleaning, planting, replanting and maintaining the landscaped areas and other areas of the property not containing buildings, paving or similar improvements; the cost of all Landlord’s insurance for the Building including, but not limited to, fire and other casualty, rental income, bodily injury, public liability, property damage liability, automobile parking lot liability insurance, sign insurance, workmen’s compensation insurance, and any other insurance carried by Landlord for the Building in limits selected by Landlord, and the cost of any deductible carried by Landlord in the event of a casualty; assessments; repairs; repaving; line repainting; exterior repainting; rental and maintenance of signs and equipment; lighting; sanitary control; removal (including temporary storage) of snow and ice, trash, rubbish, garbage and other refuse; depreciation of machinery and equipment used in such maintenance and of all building systems; repair, maintenance and replacement of roofs; depreciation of roof and paved area; maintenance, repair and/or replacement of on-site utility systems (including, without limitation, water lines and electrical, gas, sanitary sewer, drainage and storm water systems), heating, ventilating and air conditioning systems, and alarm systems; all fuel for the Building’s central heating system; all electrical, water, sewer and other utility charges not separately metered and paid for by tenants; personal property taxes; sales and use taxes on material, equipment, supplies and services for the Building; fees for required licenses and permits; fire, security and police protection (if and Escalation to the extent provided by Landlord, without implying any obligation to do so unless otherwise specified in this Lease); operation and maintenance of public address system(s) and public toilets; reasonable straight line depreciation of, and all rental charges for, movable equipment; supplies, materials and labor for the Building; and the cost of any capital improvements (other than tenant improvements for specific tenants) made by or on behalf of Landlord to the Building or common area in order to (A) comply with any amendment or other change to the enactment or interpretation of any applicable laws from its enactment or interpretation after the Commencement Date (including, without limitation, under Section 11.02), or (B) intended to reduce Operating Expenses or improve life/safety conditions, but only to the extent of the amortized amount thereof over the useful life of such capital improvements as determined in accordance with generally accepted accounting principles consistently appliedRewards Network. Specifically excluded from Operating Expenses, notwithstanding the foregoing, are (i) the cost of capital improvements except as expressly provided above; (ii) all costs relating to the leasing and build-out of space for other tenants of the Building or reimbursable by such other tenants or for selective services provided to any specific tenant; (iii) principal, interest and other charges payable in connection with any financing or refinancing of the Building, and all other direct costs of refinancing, selling or exchanging the Building, including broker commissions, attorney’s fees and closing; (iv) real estate brokers’ leasing commissions or compensation and advertising and other marketing expenses and attorneys’ fees associated with the leasing of the Building; (v) legal, space planning, construction, and other expenses incurred in procuring tenants for the Building or renewing or amending leases with existing tenants or occupants of the Building or If there shall be any increase in insurance premiums to the extent that such increase is caused by the use or occupancy of another tenant; (vi) any expense for which Landlord actually receives reimbursement from insurance, condemnation awards, or other tenants (other than through the payment of additional rent under such tenants’ leases); (vii) overhead and profit increment paid to Landlord or to subsidiaries or affiliates of Landlord for goods and services to the extent the same materially exceeds the costs of such good and/or services rendered by unaffiliated third parties on a competitive basis; (viii) Landlord’s charitable or political contributions; (ix) acquisition costs of sculpture, paintings or objects of art; (x) Landlord’s corporate overhead and compensation for Landlord’s employees and for accounting services, except to the extent relating to operation of the Building; (xi) reserves of any kind, including reserves for equipment or capital replacement and future improvements, repairs or additions; (xii) management fees decrease in the aggregate in excess of five percent (5%) of Tenant’s Operating Payment payable by Sublandlord to Rewards Network under the total rent (including Base RentXxxxxxxxx for any period occurring during the Term, Escalations and other additional rent hereunder) whether during or after such period, the Operating Expense Escalation payment payable by Subtenant hereunder for the Building;. The operating expenses such period shall be accounted for using appropriately adjusted. “Subtenant’s Share”, since Subtenant is subleasing Sublandlord’s entire leased premises, shall mean Tenant’s Share (as defined in the accrual basis under generally accepted accounting principlesXxxxxxxxx).
Appears in 1 contract
Samples: Aob Biotech Inc
Operating Expense Escalation. (a) If the Expenses for any Comparative Year shall be greater than the Expenses for the Base Expense Year, then Tenant shall be responsible pay to pay its Proportionate ShareLandlord, as additional rent for such Comparative Year, in the manner hereinafter provided, an amount equal to the Percentage of the excess of the Expenses for such Comparative Year over the Expenses for the Base Expense Year (such amount being hereinafter called the “Expense Payment”). Following the expiration of each Comparative Year and reasonably promptly but in no event later than one (1) year after the end of such Comparative Year, Landlord shall submit to Tenant a statement, as hereinafter defineddescribed, of setting forth the increase in Operating Expenses attributable to the Building that are in excess of Calendar Year 2023 Operating Expenses (the “Operating Expense Base Year”), any such excess, which amount shall be known as the “Operating Expenses Excess”. The projected Operating Expenses for the Operating Expense Base Year are depicted on Exhibit C, which is attached hereto and made a part hereof. Tenant’s Proportionate Share is computed as follows: the numerator is Tenant’s rentable square feet (10,356) and the denominator is the Building’s total rentable square feet (30,456). Initially, Tenant’s Proportionate Share is 34.00%. With respect to any Base Year or any subsequent year in which the Building is not occupied to the extent of 95% of the rentable area thereofpreceding Comparative Year, the Operating Expenses for such period which vary with the occupancy of the Building, for the purposes hereof, be increased to the amount which would have been incurred had the Building been occupied to the extent of 95% of the rentable area thereof, as reasonably determined by Landlord, provided, however, that in no event shall Tenant be responsible for any amount which is grossed up in excess of those amounts actually paid by Landlord. Landlord shall provide its calculations to Tenant upon Txxxxx’s request. Within ninety (90) days following the end of each calendar year during the term of this Lease, Landlord shall furnish to Tenant a statement of Landlord’s actual Operating Expenses for the previous calendar year Base Expense Year, and a determination the Expense Payment, if any, due to Landlord from Tenant for such Comparative Year. The rendition of such statement to Tenant shall constitute prima facie proof of the amount of Operating Expenses Excess which is accuracy thereof and, if such statement shows an Expense Payment due for such calendar year. from Tenant to Landlord with respect to the preceding Comparative Year then (i) Tenant shall pay such amount to Landlord make payment of any unpaid portion thereof within thirty twenty (3020) days of its after receipt of such statement. If Landlord fails ; and (ii) Tenant shall also pay to furnish Tenant with Landlord, as additional rent, within twenty (20) days after receipt of such statement within twelve (12) statement, an amount equal to the product obtained by multiplying the total Expense Payment for the preceding Comparative Year by a fraction, the denominator of which shall be 12 and the numerator of which shall be the number of months of the end current Comparative Year which shall have elapsed prior to the first day of the applicable calendar yearmonth immediately following the rendition of such statement; and (iii) Tenant shall also pay to Landlord, Landlord as additional rent, commencing as of the first day of the month immediately following the rendition of such statement and on the first day of each month thereafter until a new statement is rendered, 1/12th of the total Expense Payment for the preceding Comparative Year. The aforesaid monthly payments based on the total Expense Payment for the preceding Comparative Year shall be deemed adjusted to have waived all rights to any reconciliation for Operating Expenses. Operating Expenses shall be defined as all actual costs and expenses incurred by Landlordreflect, its agentsif Landlord can reasonably estimate, and/or designees known increases in connect ion with operatingrates or costs, lighting, cleaning, maintaining, equipping, repairing, insuring, managing and/or replacing all or any part of the Building’s common areas (and any installations therein, thereon, thereunder or thereover), and all electrical, plumbing, and other systems of the Building not exclusively serving and paid for by particular tenants, which costs and expenses shall include, but shall not be limited to, the following: all of the costs and expenses incurred in cleaning, heating, ventilating, air conditioning, maintaining, painting, repainting, repairing and replacing common toilets, lobbies, corridors, elevators, and stairways; cleaning, planting, replanting and maintaining the landscaped areas and other areas of the property not containing buildings, paving or similar improvements; the cost of all Landlord’s insurance for the Building includingcurrent Comparative Year, but not limited to, fire and other casualty, rental income, bodily injury, public liability, property damage liability, automobile parking lot liability insurance, sign insurance, workmen’s compensation insurance, and any other insurance carried by Landlord for the Building in limits selected by Landlord, and the cost of any deductible carried by Landlord in the event of a casualty; assessments; repairs; repaving; line repainting; exterior repainting; rental and maintenance of signs and equipment; lighting; sanitary control; removal (including temporary storage) of snow and ice, trash, rubbish, garbage and other refuse; depreciation of machinery and equipment used in such maintenance and of all building systems; repair, maintenance and replacement of roofs; depreciation of roof and paved area; maintenance, repair and/or replacement of on-site utility systems (including, without limitation, water lines and electrical, gas, sanitary sewer, drainage and storm water systems), heating, ventilating and air conditioning systems, and alarm systems; all fuel for the Building’s central heating system; all electrical, water, sewer and other utility charges not separately metered and paid for by tenants; personal property taxes; sales and use taxes on material, equipment, supplies and services for the Building; fees for required licenses and permits; fire, security and police protection (if and applicable to the extent provided by Landlord, without implying any obligation to do so unless otherwise specified categories involved in this Lease); operation and maintenance of public address system(s) and public toilets; reasonable straight line depreciation of, and all rental charges for, movable equipment; supplies, materials and labor for the Building; and the cost of any capital improvements (other than tenant improvements for specific tenants) made by or on behalf of Landlord to the Building or common area in order to (A) comply with any amendment or other change to the enactment or interpretation of any applicable laws from its enactment or interpretation after the Commencement Date (including, without limitation, under Section 11.02), or (B) intended to reduce Operating Expenses or improve life/safety conditions, but only to the extent of the amortized amount thereof over the useful life of such capital improvements as determined in accordance with generally accepted accounting principles consistently applied. Specifically excluded from Operating computing Expenses, notwithstanding the foregoing, are (i) the cost of capital improvements except as expressly provided above; whenever such increases become known prior to or during such current Comparative Year. The payments required to be made under (ii) all costs relating to the leasing and build-out of space for other tenants of the Building or reimbursable by such other tenants or for selective services provided to any specific tenant; (iii) principal, interest and other charges payable in connection with any financing or refinancing of above shall be credited toward the Building, and all other direct costs of refinancing, selling or exchanging the Building, including broker commissions, attorney’s fees and closing; (iv) real estate brokers’ leasing commissions or compensation and advertising and other marketing expenses and attorneys’ fees associated with the leasing of the Building; (v) legal, space planning, construction, and other expenses incurred in procuring tenants Expense Payment due from Tenant for the Building or renewing or amending leases with existing tenants or occupants of then current Comparative Year, subject to adjustment as and when the Building or any increase in insurance premiums to the extent that statement for such increase current Comparative Year is caused by the use or occupancy of another tenant; (vi) any expense for which Landlord actually receives reimbursement from insurance, condemnation awards, or other tenants (other than through the payment of additional rent under such tenants’ leases); (vii) overhead and profit increment paid to Landlord or to subsidiaries or affiliates of Landlord for goods and services to the extent the same materially exceeds the costs of such good and/or services rendered by unaffiliated third parties on a competitive basis; (viii) Landlord’s charitable or political contributions; (ix) acquisition costs of sculpture, paintings or objects of art; (x) Landlord’s corporate overhead and compensation for Landlord’s employees and for accounting services, except to the extent relating to operation of the Building; (xi) reserves of any kind, including reserves for equipment or capital replacement and future improvements, repairs or additions; (xii) management fees in the aggregate in excess of five percent (5%) of the total rent (including Base Rent, Escalations and other additional rent hereunder) for the Building;. The operating expenses shall be accounted for using the accrual basis under generally accepted accounting principles.
Appears in 1 contract
Samples: Lease (Medallion Financial Corp)
Operating Expense Escalation. Tenant If Landlord's Operating Expense for any Operating Year shall be responsible to pay its Proportionate Share, as hereinafter defined, of the increase in Operating Expenses attributable to the Building that are in excess of Calendar Year 2023 Operating Expenses (the “Operating Expense Base Year”), any such excess, which amount shall be known as the “Operating Expenses Excess”. The projected Operating Expenses for greater than the Operating Expense Base Year are depicted on Exhibit CAllowance, which is attached hereto and made a part hereof. Tenant shall pay to Landlord as Additional Rent an amount equal to Tenant’s 's Proportionate Share (as defined below) of the difference (the amount of Tenant's Proportionate Share of such difference is computed hereinafter- referred to as follows: the numerator is Tenant’s rentable square feet (10,356) and the denominator is the Building’s total rentable square feet (30,456"Operating Expense Adjustment"). Initially, Tenant’s Proportionate Share is 34.00%. With respect to any Base Year If Tenant occupies the Leased Premises or any subsequent year in which the Building is not occupied to the extent of 95% of the rentable area thereofportion thereof for less than a full Operating Year, the Operating Expenses for such period which vary with the occupancy of the Building, for the purposes hereof, Expense Adjustment will be increased allocated proportionately to the amount which would have been incurred had of time in such Operating Year that Tenant so occupies such space. Such Additional Rent shall be paid in the Building been occupied to the extent of 95% of the rentable area thereof, as reasonably determined by Landlord, provided, however, that in no event shall Tenant be responsible for any amount which is grossed up in excess of those amounts actually paid by Landlord. Landlord shall provide its calculations to Tenant upon Txxxxx’s request. Within ninety following manner: within one hundred twenty (90120) days following the end of each calendar year during the term of this LeaseOperating Year, Landlord shall furnish to Tenant a statement of Landlord’s actual an Operating Expenses Expense Statement setting forth (i) the Operating Expense for the previous calendar year preceding Operating Year, (H) the Operating Expense Allowance and a determination of (iii) the amount of Tenant's Operating Expenses Excess which is due Expense Adjustment for such calendar yearOperating Year. Within fifteen (15) days following the receipt of such Operating Expense Statement (the "Expense Adjustment Date") Tenant shall pay such amount to Landlord within thirty (30) days of its receipt of as Additional Rent the Operating Expense Adjustment for such statementOperating Year. If Landlord fails to furnish Tenant Commencing with such statement within twelve (12) months the first month of the end lease term, tenant shall pay to landlord, on account of the applicable calendar yearoperating expense adjustment for such Operating Year, monthly installments in advance equal to one-twelfth (1/12TH) OF THE estimated Operating Expense Adjustment for such Operating Year. On the next succeeding Expense Adjustment Date, Tenant shall pay to Landlord (or Landlord shall be deemed credit to have waived all rights to Tenant) any reconciliation deficiency (or excess) between the installments paid on account of the preceding year's Operating Expense Adjustment and the actual Operating Expense Adjustment for such Operating ExpensesYear. Operating Expenses As used in this Section 6 and Section 1 where applicable, the following words and terms shall be defined as all actual costs and expenses incurred by Landlord, its agents, and/or designees in connect ion with operating, lighting, cleaning, maintaining, equipping, repairing, insuring, managing and/or replacing all or any part of the Building’s common areas (and any installations therein, thereon, thereunder or thereover), and all electrical, plumbing, and other systems of the Building not exclusively serving and paid for by particular tenants, which costs and expenses shall include, but shall not be limited to, the following: all of the costs and expenses incurred in cleaning, heating, ventilating, air conditioning, maintaining, painting, repainting, repairing and replacing common toilets, lobbies, corridors, elevators, and stairways; cleaning, planting, replanting and maintaining the landscaped areas and other areas of the property not containing buildings, paving or similar improvements; the cost of all Landlord’s insurance for the Building including, but not limited to, fire and other casualty, rental income, bodily injury, public liability, property damage liability, automobile parking lot liability insurance, sign insurance, workmen’s compensation insurance, and any other insurance carried by Landlord for the Building in limits selected by Landlord, and the cost of any deductible carried by Landlord in the event of a casualty; assessments; repairs; repaving; line repainting; exterior repainting; rental and maintenance of signs and equipment; lighting; sanitary control; removal (including temporary storage) of snow and ice, trash, rubbish, garbage and other refuse; depreciation of machinery and equipment used in such maintenance and of all building systems; repair, maintenance and replacement of roofs; depreciation of roof and paved area; maintenance, repair and/or replacement of on-site utility systems (including, without limitation, water lines and electrical, gas, sanitary sewer, drainage and storm water systems), heating, ventilating and air conditioning systems, and alarm systems; all fuel for the Building’s central heating system; all electrical, water, sewer and other utility charges not separately metered and paid for by tenants; personal property taxes; sales and use taxes on material, equipment, supplies and services for the Building; fees for required licenses and permits; fire, security and police protection (if and to the extent provided by Landlord, without implying any obligation to do so unless otherwise specified in this Lease); operation and maintenance of public address system(s) and public toilets; reasonable straight line depreciation of, and all rental charges for, movable equipment; supplies, materials and labor for the Building; and the cost of any capital improvements (other than tenant improvements for specific tenants) made by or on behalf of Landlord to the Building or common area in order to (A) comply with any amendment or other change to the enactment or interpretation of any applicable laws from its enactment or interpretation after the Commencement Date (including, without limitation, under Section 11.02), or (B) intended to reduce Operating Expenses or improve life/safety conditions, but only to the extent of the amortized amount thereof over the useful life of such capital improvements as determined in accordance with generally accepted accounting principles consistently applied. Specifically excluded from Operating Expenses, notwithstanding the foregoing, are (i) the cost of capital improvements except as expressly provided above; (ii) all costs relating to the leasing and build-out of space for other tenants of the Building or reimbursable by such other tenants or for selective services provided to any specific tenant; (iii) principal, interest and other charges payable in connection with any financing or refinancing of the Building, and all other direct costs of refinancing, selling or exchanging the Building, including broker commissions, attorney’s fees and closing; (iv) real estate brokers’ leasing commissions or compensation and advertising and other marketing expenses and attorneys’ fees associated with the leasing of the Building; (v) legal, space planning, construction, and other expenses incurred in procuring tenants for the Building or renewing or amending leases with existing tenants or occupants of the Building or any increase in insurance premiums to the extent that such increase is caused by the use or occupancy of another tenant; (vi) any expense for which Landlord actually receives reimbursement from insurance, condemnation awards, or other tenants (other than through the payment of additional rent under such tenants’ leases); (vii) overhead and profit increment paid to Landlord or to subsidiaries or affiliates of Landlord for goods and services to the extent the same materially exceeds the costs of such good and/or services rendered by unaffiliated third parties on a competitive basis; (viii) Landlord’s charitable or political contributions; (ix) acquisition costs of sculpture, paintings or objects of art; (x) Landlord’s corporate overhead and compensation for Landlord’s employees and for accounting services, except to the extent relating to operation of the Building; (xi) reserves of any kind, including reserves for equipment or capital replacement and future improvements, repairs or additions; (xii) management fees in the aggregate in excess of five percent (5%) of the total rent (including Base Rent, Escalations and other additional rent hereunder) for the Building;. The operating expenses shall be accounted for using the accrual basis under generally accepted accounting principles.hereinafter set forth:
Appears in 1 contract
