Common use of Operating Expenses and Utilities Clause in Contracts

Operating Expenses and Utilities. a. Tenant shall pay for all water, gas, light, power, telephone, and other utilities and services specially or exclusively supplied to Tenant or metered exclusively to the Premises together with any taxes thereon. b. If the Building Operating Expenses (as hereinafter defined) paid or incurred by Landlord for any calendar year or portion thereof within the term of this Lease exceed the Building Operating Expenses Base, Tenant shall pay Landlord as additional rent, in addition to the other sums Tenant is required to pay Landlord under this Lease, Tenant's Building Percentage of such excess, pursuant to this subparagraph b. As soon as possible after the end of each calendar year during the term of this Lease, Landlord shall furnish Tenant a statement showing, in reasonable detail, the actual Building Operating Expenses incurred by Landlord for the previous year and an estimate of the amount, if any, by which Landlord expects actual Building Operating Expenses for the current year to exceed the Building Operating Expense Base ("Landlord's Estimate"). If Tenant's Building Percentage of the amount of actual Building Operating Expenses paid or incurred by Landlord for the prior year in excess of the Building Operating Expense Base exceeds the amount of payments (if any) made by Tenant during such prior year with respect to Landlord's Estimate for such prior year, Tenant shall pay Landlord the amount of such excess together with its next payment of rent. Tenant shall also pay Landlord, with Tenant's next payment of rent, an amount equal to one twelfth (1/12) of the amount (if any) by which Tenant's Building Percentage of Landlord's Estimate for the current year exceeds Tenant's Building Percentage of Landlord's Estimate for the prior year, multiplied by the number of months from and including January of the current year to and including the month of Tenant's next payment of rent. Thereafter, until a new statement of Building Operating Expenses and a new Landlord's Estimate is rendered to Tenant by Landlord, Tenant shall pay to Landlord, together with its payments of monthly rent, an amount equal to one twelfth (1/12) of Tenant's Building Percentage of Landlord's Estimate for the current year. If Tenant's Building Percentage of actual Building Operating Expenses for any year is less than the amount paid by Tenant therefor during such year, the amount of such overpayment shall be credited against monthly installments of rent next coming due. If any such overpayment remains unreimbursed at the termination of this Lease, Landlord shall apply such amount to any amounts which may be owing by Tenant to Landlord, and the remainder shall be promptly refunded to Tenant. Notwithstanding anything to the contrary contained in this subparagraph b, Tenant shall be entitled to no credit, refund or reduction in rent if actual Building Operating Expenses are less than the Building Operating Expenses Base. If this Lease commences or terminates on any day other than January 1st, any additional payment or credit for any initial or final partial year shall be determined by pro rating such amount according to a three hundred sixty (360) day year. c. As used herein, the term "Building Operating Expenses" includes all of the costs of maintaining and operating the Building, assuming ninety-five percent (95%) occupancy, incurred by Landlord including (without limiting the generality of the foregoing) the following: cost of property taxes and general or special assessments on the Building and the land on which it is located, any non-progressive tax on or measured by gross rent received from leasing space in the Building, cost of common area utilities, all heating, air conditioning, plumbing, electrical systems, life safety equipment, other equipment used in common by or for the benefit of tenants or occupants of the Building, the cost (amortized over such period as Landlord will reasonably determine) together with interest at the prime rate plus two percent of such capital improvements which Landlord installs for the purpose of reducing operating costs or complying with Custom Federal, Inc. Lease 9/23/04 4 laws or regulations promulgated after completion of the Building, a reasonable sinking fund for the periodic repair and replacement of Building components and equipment, cost of maintaining and operating elevators, tenant directories, supplies, insurance (including such endorsements as Landlord may elect to obtain), cost of services of independent contractors, managers and other services, a reasonable reserve for operating expenses, the fair rental value of the Building Office, cost of compensation (including employment taxes and fringe benefits) of all persons who perform regular and recurring duties connected with the management, operation, maintenance and repair of the Building (including parking facilities) its equipment and common areas, including, without limitation, engineers, janitors, foremen, floor waxers, window washers, washmen and gardeners, and any other costs, charges and expenses reasonably regarded as management, maintenance and operating expenses, but excluding persons performing services not uniformly available to or performed for substantially all Building tenants.

Operating Expenses and Utilities. a. Tenant shall pay for all water, gas, light, power, telephone, and other utilities and services specially or exclusively supplied to Tenant or metered exclusively to the Premises together with any taxes thereon. b. If the Building Operating Expenses (as hereinafter defined) paid or incurred by Landlord for any calendar year or portion thereof within the term of this Lease exceed the Building Operating Expenses Base, Tenant shall pay Landlord as additional rent, in addition to the other sums Tenant is required to pay Landlord under this Lease, Tenant's Building Percentage of such excess, pursuant to this subparagraph b. As soon as possible after the end of each calendar year during the term of this Lease, Landlord shall furnish Tenant a statement showing, in reasonable detail, the actual Building Operating Expenses incurred by Landlord for the previous year and an estimate of the amount, if any, by which Landlord expects actual Building Operating Expenses for the current year to exceed the Building Operating Expense Base ("Landlord's Estimate"). If Tenant's Building Percentage of the amount of actual Building Operating Expenses paid or incurred by Landlord for the prior year in excess of the Building Operating Expense Base exceeds the amount of payments (if any) made by Tenant during such prior year with respect to Landlord's Estimate for such prior year, Tenant shall pay Landlord the amount of such excess together with its next payment of rent. Tenant shall also pay Landlord, with Tenant's next payment of rent, an amount equal to one twelfth (1/12) of the amount (if any) by which Tenant's Building Percentage of Landlord's Estimate for the current year exceeds Tenant's Building Percentage of Landlord's Estimate for the prior year, multiplied by the number of months from and including January of the current year to and including the month of Tenant's next payment of rent. Thereafter, until a new statement of Building Operating Expenses and a new Landlord's Estimate is rendered to Tenant by Landlord, Tenant shall pay to Landlord, together with its payments of monthly rent, an amount equal to one twelfth (1/12) of Tenant's Building Percentage of Landlord's Estimate for the current year. If Tenant's Building Percentage of actual Building Operating Expenses for any year is less than the amount paid by Tenant therefor during such year, the amount of such overpayment shall be credited against monthly installments of rent next coming due. If any such overpayment remains unreimbursed at the termination of this Lease, Landlord shall apply such amount to any amounts which may be owing by Tenant to Landlord, and the remainder shall be promptly refunded to Tenant. Notwithstanding anything to the contrary contained in this subparagraph b, Tenant shall be entitled to no credit, refund or reduction in rent if actual Building Operating Expenses are less than the Building Operating Expenses Base. If this Lease commences or terminates on any day other than January 1st, any additional payment or credit for any initial or final partial year shall be determined by pro rating such amount according to a three hundred sixty (360) day year. c. As used herein, the term "Building Operating Expenses" includes all of the costs of maintaining and operating the Building, assuming ninety-five percent (95%) occupancy, incurred by Landlord including (without limiting the generality of the foregoing) the following: cost of property taxes and general or special assessments on the Building and the land on which it is located, any non-progressive tax on or measured by gross rent received from leasing space in the Building, cost of common area utilities, all heating, air conditioning, plumbing, electrical systems, life safety equipment, other equipment used in common by or for the benefit of tenants or occupants of the Building, the cost (amortized over such period as Landlord will reasonably determine) together with interest at the prime rate plus two percent of such capital improvements which Landlord installs for the purpose of reducing operating costs or complying with Custom Federal, Inc. Lease 9/23/04 4 laws or regulations promulgated after completion of the Building, a reasonable sinking fund for the periodic repair and replacement of Building components and equipment, cost of maintaining and operating elevators, tenant directories, supplies, insurance (including such endorsements as Landlord may elect to obtain), cost of services of independent contractors, managers and other services, a reasonable reserve for operating expenses, the fair rental value of the Building Office, cost of compensation (including employment taxes and fringe benefits) of all persons who perform regular and recurring duties connected with the management, operation, maintenance and repair of the Building (including parking facilities) its equipment and common areas, including, without limitation, engineers, janitors, foremen, floor waxers, window washers, washmen and gardeners, and any other costs, charges and expenses reasonably regarded as management, maintenance and operating expenses, but excluding persons performing services not uniformly available to or performed for substantially all Building tenants.