Common use of - SHARE OF DIRECT EXPENSES Clause in Contracts

- SHARE OF DIRECT EXPENSES. The Tenant agrees to pay to Landlord, as Additional Rent, each year, Tenant's proportionate share as defined in the next unnumbered paragraph of any Direct Expenses incurred by or accrued as an expense of Landlord or its agents on account of the operation or maintenance of the Building and all appurtenances thereto and including its proportionate share of any charges attributable to Common Areas, as hereinafter defined, and as such may be reallocated as provided hereunder, and an allocable portion of any and all other charges incurred by or accrued as an expense of Landlord in connection with the operation or maintenance of the Building. However in the cases of expenses which benefit portions of Southport Business Park other than the Building, the portion allocated to the Building shall be based upon sound accounting principles adopted by the Landlord for the purpose of making a reasonable allocation. In the event that Tenant's use of services exceed its proportionate share of said services, Landlord may reallocate the cost hereof on a reasonable basis. Tenant's proportionate share of the total of all Direct Expenses allocable to the Building shall be calculated by dividing the total square feet of the Demised Premises stated at Section 1.01 hereof by an amount which is equal to the total net rentable square feet of the Building. Landlord represents that the net rentable square feet of the Building is Twenty Five Thousand Six Hundred Fifty Seven (25,657) SQUARE FEET. Notwithstanding the foregoing, in the event the usage of any utility, equipment or other Direct Expense by Tenant shall be determined by Landlord to be disproportionate to the amount of space leased by Tenant, the Landlord reserves the right to make an allocation of such Direct Expense to Tenant based upon actual usage by Tenant, as determined by Landlord in its sole discretion. Tenant agrees to pay such specially allocated amount in the event Landlord determines such usage is disproportionate and so advises Tenant.

- SHARE OF DIRECT EXPENSES. The Tenant agrees to pay to Landlord, as Additional Rent, each year, Tenant's ’s proportionate share as defined in the next unnumbered paragraph of any Direct Expenses (as hereinafter defined) incurred by or accrued as an expense of Landlord or its agents on account of the operation or maintenance of the Building and Lot and all appurtenances thereto and including its proportionate share a portion of any charges attributable to Common Areas, as hereinafter defined, and as such may be reallocated as provided hereunder, and an allocable portion of any and all other charges incurred by or accrued as an expense of Landlord in connection with the operation or maintenance of the Building. However Building and Lot; provided, however in the cases of expenses which benefit portions of Southport Business Park other than the BuildingBuilding and Lot, the portion allocated to the Building and Lot shall be based upon sound accounting principles adopted by the Landlord for the purpose of making a reasonable allocation. In the event that Tenant's use of services exceed its proportionate share of said services, Landlord may reallocate the cost hereof on a reasonable basis. Tenant's ’s proportionate share of the total of all Direct Expenses allocable to the Building and Lot shall be calculated by dividing the total square feet Rentable Square Feet of the Demised Premises stated at Section 1.01 hereof by an amount which is equal to the total net rentable square feet of the Building. Landlord represents It is agreed that the net rentable square feet of the Building is Twenty Fifty Five Thousand Six Nine Hundred Fifty Forty Seven (25,65755,947) SQUARE FEET. Notwithstanding the foregoing, in the event the usage of any utility, equipment or other Direct Expense by Tenant shall be determined by Landlord to be disproportionate to the amount of space leased by Tenant, the Landlord reserves the right to make an allocation of such Direct Expense to Tenant based upon actual usage by Tenant, as determined by Landlord in its sole discretion. Tenant agrees to pay such specially allocated amount in the event Landlord determines such usage is disproportionate and so advises Tenant.

- SHARE OF DIRECT EXPENSES. The Tenant agrees to pay to Landlord, as Additional Rent, each year, Tenant's proportionate share as defined in the next unnumbered paragraph of any Direct Expenses incurred by or accrued as an expense of Landlord or its agents on account of the operation or maintenance of the Building and all appurtenances thereto and including its proportionate share a portion of any charges attributable to Common Areas, as hereinafter defined, and as such may be reallocated as provided hereunder, and an allocable portion of any and all other charges incurred by or accrued as an expense of Landlord in connection with the operation or maintenance of the Building. However ; provided, however in the cases of expenses which benefit portions of Southport Business Park other than the Building, the portion allocated to the Building shall be based upon sound accounting principles adopted by the Landlord for the purpose of making a reasonable allocation. In the event that Tenant's use of services exceed its proportionate share of said services, Landlord may reallocate the cost hereof on a reasonable basis. Tenant's proportionate share of the total of all Direct Expenses allocable to the Building shall be calculated by dividing the total square feet of the Demised Premises stated at Section 1.01 hereof by an amount which is equal to the total net rentable square feet of the Building. Landlord represents It is agreed that the net rentable square feet of the Building is Twenty Five Sixty Three Thousand Six Seven Hundred Fifty Seven and Forty Four (25,65763,744) SQUARE FEET. Notwithstanding the foregoing, in the event the usage of any utility, equipment or other Direct Expense by Tenant shall be determined by Landlord to be disproportionate to the amount of space leased by Tenant, the Landlord reserves the right to make an allocation of such Direct Expense to Tenant based upon actual usage by Tenant, as determined by Landlord in its sole discretion. Tenant agrees to pay such specially allocated amount in the event Landlord determines such usage is disproportionate and so advises Tenant.

- SHARE OF DIRECT EXPENSES. The Tenant agrees to pay to Landlord, as Additional Rent, each year, Tenant's proportionate share as defined in the next unnumbered paragraph of any Direct Expenses incurred by or accrued as an expense of Landlord or its agents on account of the operation or maintenance of the Building and all appurtenances thereto and including its proportionate share a portion of any charges attributable to Common Areas, as hereinafter defined, and as such may be reallocated as provided hereunder, and an allocable portion of any and all other charges incurred by or accrued as an expense of Landlord in connection with the operation or maintenance of the Building. However ; provided, however in the cases of expenses which benefit portions of Southport Business Park other than the Building, the portion allocated to the Building shall be based upon sound accounting principles adopted by the Landlord for the purpose of making a reasonable allocation. In Attached hereto as EXHIBIT F is the event that Tenant's use of services exceed its proportionate share of said services, Landlord may reallocate estimated 1999 Direct Expenses for the cost hereof on a reasonable basisBuilding. Tenant's proportionate share of the total of all Direct Expenses allocable to the Building shall be calculated by dividing the total square feet of the Demised Premises stated at Section 1.01 hereof by an amount which is equal to the total net rentable square feet of the Building. Landlord represents It is agreed that the net rentable square feet of the Building is Twenty Five Thousand Six Hundred Fifty Seven FORTY FIVE THOUSAND EIGHT HUNDRED (25,65745,880) SQUARE FEET. Notwithstanding the foregoing, in the event the usage of any utility, equipment or other Direct Expense by Tenant shall be determined by Landlord to be disproportionate to the amount of space leased by Tenant, the Landlord reserves the right to make an allocation of such Direct Expense to Tenant based upon actual usage by Tenant, as reasonably determined by Landlord in its sole discretionthe Landlord. Tenant agrees to pay such specially allocated amount in the event Landlord determines such usage is disproportionate and so advises Tenant.

- SHARE OF DIRECT EXPENSES. The Tenant agrees to pay to Landlord, as Additional Rent, each calendar year, Tenant's proportionate share as defined in of the next unnumbered paragraph of any amount by which Direct Expenses (as hereinafter defined) incurred by or accrued as an expense of Landlord or its agents on account of the operation or maintenance of the Building and Lot and all appurtenances thereto during each calendar year falling entirely or partially in the Term exceed Direct Expenses so incurred during the 2014 calendar year (the “Base Year”). Direct Expenses attributable to the Building and including its proportionate share of any Lot shall include charges attributable to Common Areas, as hereinafter defined, serving the Building and as such may be reallocated as provided hereunderLot, and an allocable portion of any and all other charges incurred by or accrued as an expense of Landlord in connection with the operation or maintenance of the Building. However Building and Lot; provided, however in the cases of expenses which benefit portions of Southport Business Park other than the BuildingBuilding and Lot, the portion allocated to the Building and Lot shall be based upon sound accounting principles adopted by the Landlord for the purpose of making a reasonable allocation. In For purposes of determining the event that Tenant's use of services exceed its proportionate share of said servicesamount to be paid pursuant to this Section 2.01, Landlord may reallocate the cost hereof on a reasonable basis. Tenant's proportionate share of the total of all Direct Expenses allocable to the Building shall be mean a fraction calculated by dividing the total square feet Rentable Square Feet of the Demised Premises stated at Section 1.01 hereof by an amount which is equal to the total net rentable square feet of the Building. Landlord represents It is agreed that the net rentable square feet of the Building is Twenty Five Thirty Four Thousand Six Three Hundred Fifty Seven Forty-four (25,65736,344) SQUARE FEET. Direct Expenses that vary with occupancy and that are attributable to any part of the term in which less than 100% of the rentable area of the Building is occupied by tenants may be adjusted by Landlord to the amount Landlord reasonably believes such Direct Expenses would have been if 100% of the rentable area of the Building had been so occupied. For the purpose of determining the Base Year expenses for the Base Year of 2014, the Direct Expense for the same periods of 2013 shall be used as a starting point to reasonably account for the portions of 2014 prior to the Commencement Date. Notwithstanding the foregoing, in the event the usage of any utility, equipment or other Direct Expense by Tenant shall be reasonably determined by Landlord to be disproportionate to the amount of space leased by TenantTenant (standard office usage), the Landlord reserves the right to make an allocation of such Direct Expense to Tenant based upon actual usage by Tenant, as reasonably determined by Landlord in its sole discretionLandlord. Tenant agrees to pay such specially allocated amount in the event Landlord determines such usage is disproportionate and so advises Tenant. Landlord agrees to notify Tenant promptly in writing upon Landlord’s discovery of any such disproportionate use. Landlord agrees that Tenant shall not be liable for any disproportionate use that occurs more than one (1) year prior to Landlord’s delivery of notice of such disproportionate use to Tenant.

- SHARE OF DIRECT EXPENSES. The Tenant agrees to pay to Landlord, as Additional Rent, each calendar year, Tenant's proportionate share as defined in the next unnumbered paragraph of any Direct Expenses (as hereinafter defined) incurred by or accrued as an expense of Landlord or its agents on account of the operation or maintenance of the Building and/or Lot and all appurtenances thereto and including its proportionate share a portion of any charges attributable to Common Areas, as hereinafter defined, and as such may be reallocated as provided hereunder, Areas (defined below) and an allocable portion of any and all other charges incurred by or accrued as an expense of Landlord in connection with the operation or maintenance of the Building. However in the cases of expenses which benefit portions of Southport Business Park other than the Building, Lot and Common Areas; provided, however, that the portion so allocated to the Building shall be based upon sound accounting principles adopted by the Landlord for the purpose of making a reasonable allocation. In the event that Tenant's use of services exceed its proportionate share of said services, Landlord may reallocate the cost hereof on a reasonable basis. Tenant's proportionate share of the total of all Direct Expenses allocable to the Building and Lot shall be calculated by dividing the total square feet Rentable Square Feet of the Demised Premises stated at Section 1.01 hereof by an amount which is equal to the total net rentable square feet of the Building. Landlord represents that the net rentable square feet of the Building and multiplying such quotient by the total Direct Expenses. It is Twenty Five Thousand Six Hundred Fifty Seven (25,657) SQUARE FEETagreed that the Rentable Square feet of the Building is 59,940 rsf and the Rentable Square feet of the Demised Premises is 11,566 rsf. Notwithstanding the foregoing, in the event the usage of any utility, equipment or other Direct Expense by Tenant shall be determined by Landlord to be disproportionate to the amount Rentable Square Feet of space leased by Tenantthe Demised Premises, the Landlord reserves the right to make an allocation of such Direct Expense to Tenant based upon actual usage by Tenant, as determined by Landlord in its sole discretion. Tenant agrees to pay such specially allocated amount in the event Landlord so determines such usage is disproportionate and so advises Tenant.

- SHARE OF DIRECT EXPENSES. The Tenant agrees to pay to Landlord, as Additional Rent, each calendar year, Tenant's proportionate share as defined in of the next unnumbered paragraph of any amount by which Direct Expenses (as hereinafter defined) incurred by or accrued as an expense of Landlord or its agents on account of the operation or maintenance of the Building and Lot and all appurtenances thereto during each calendar year falling entirely or partially in the Term exceed Direct Expenses so incurred during the 2014 calendar year (the “Base Year”). Direct Expenses attributable to the Building and including its proportionate share of any Lot shall include charges attributable to Common Areas, as hereinafter defined, serving the Building and as such may be reallocated as provided hereunderLot, and an allocable portion of any and all other charges incurred by or accrued as an expense of Landlord in connection with the operation or maintenance of the Building. However Building and Lot; provided, however in the cases of expenses which benefit portions of Southport Business Park other than the BuildingBuilding and Lot, the portion allocated to the Building and Lot shall be based upon sound accounting principles adopted by the Landlord for the purpose of making a reasonable allocation. In For purposes of determining the event that Tenant's use of services exceed its proportionate share of said servicesamount to be paid pursuant to this Section 2.01, Landlord may reallocate the cost hereof on a reasonable basis. Tenant's proportionate share of the total of all Direct Expenses allocable to the Building shall be mean a fraction calculated by dividing the total square feet Rentable Square Feet of the Demised Premises stated at Section 1.01 hereof by an amount which is equal to the total net rentable square feet of the Building. Landlord represents It is agreed that the net rentable square feet of the Building is Twenty Five Thirty Four Thousand Six Three Hundred Fifty Seven Forty-four (25,65736,344) SQUARE FEET. Direct Expenses that vary with occupancy and that are attributable to any part of the term in which less than 100% of the rentable area of the Building is occupied by tenants may be adjusted by Landlord to the amount Landlord reasonably believes such Direct Expenses would have been if 100% of the rentable area of the Building had been so occupied. For the purpose of determining the Base Year expenses for the Base Year of 2014, the Direct Expense for the same periods of 2013 shall be used as a starting point to reasonably account for the portions of 2014 prior to the Commencement Date. Notwithstanding the foregoing, in the event the usage of any utility, equipment or other Direct Expense by Tenant shall be reasonably determined by Landlord to be disproportionate to the amount of space leased by TenantTenant (standard office usage), the Landlord reserves the right to make an allocation of such Direct Expense to Tenant based upon actual usage by Tenant, as reasonably determined by Landlord in its sole discretionLandlord. Tenant agrees to pay such specially allocated amount in the event Landlord determines such usage is disproportionate and so advises Tenant. Landlord agrees to notify Tenant promptly in writing upon Landlord’s discovery of any such disproportionate use. Landlord agrees that Tenant shall not be liable for any disproportionate use that occurs more than one (1) year prior to Landlord’s delivery of notice of such disproportionate use to Tenant. The term “Direct Expense” as used herein, shall include all direct costs of operation and maintenance as determined by Generally Accepted Accounting Principles (“GAAP”) except where this Lease specifically provides that GAAP shall not apply. Direct Expenses shall include without limitation the following: building supplies; ad valorem real and personal property taxes and other governmental charges; utilities other than electric charges, including heat & air conditioning, janitorial except in the Manufacturing Area shown in Exhibit F and maintenance services, including any utility, maintenance, repair and other service charges attributable to Common Areas or paid by Landlord; property, liability and other insurance premiums; deductibles paid in connection with any insurance policies; repairs (other than capital expenses according to GAAP), reserves for major repairs (other than capital expenses according to GAAP), maintenance and service contracts for the Building, Lot, and Common Areas and all related mechanical equipment; property management charges (not to exceed 4% of rental); grounds maintenance; [****]; removal of snow and ice; parking maintenance and striping; landscaping; and all other similar costs and expenses. Tenant shall pay for the cost of electricity for the Lot and Building (one meter) and Tenant will also provide and pay for the janitorial services for the Manufacturing Area as shown on Exhibit F. Landlord will not provide janitorial service within the Manufacturing Area or other similar high security areas as may be designated from time to time by Tenant. If the State of North Carolina or any political subdivision thereof or any governmental or quasi-governmental authority having jurisdiction over the Building and Lot should specifically impose a tax, assessment, charge or fee or specifically increase a then existing tax, assessment, charge or fee, which Landlord shall be required to pay, either by way of substituting for said real estate taxes or assessed against the Building or Lot, or in addition thereto, or impose an income or franchise tax or tax on rents in substitution for a general tax levied against the Building or Lot, or an addition thereto, such taxes, assessments, charges or fees shall be deemed to constitute a real property tax hereunder to the extent said taxes are in substitution therefor or in addition thereto. A copy of tax bills or assessment bills submitted by Landlord to Tenant shall at all times be sufficient evidence of the amount of taxes and/or assessments levied or assessed against the property to which such xxxx relates. Landlord's reasonable expenditures for attorney's fees, appraiser's fees, consultant's fees and other costs incurred during the Term of this Lease without regard to the tax year involved, in any efforts by Landlord to minimize ad valorem personal and real property taxes, and other governmental charges, which rights are reserved to Landlord, shall be included in the definition of ad valorem real and personal property taxes and other governmental charges for the purposes of this Section. If Landlord should receive a refund of any such taxes or charges, the Tenant will share proportionately in same, after deduction for all of Landlord's expenses in obtaining any such refund. Landlord's and Tenant's obligations under this Section shall survive the expiration of the Term of this Lease. The term “Direct Expense” shall not include any income tax of Landlord, any depreciation on the Building or any depreciation on equipment therein, interest, any capital expense in accordance with GAAP (except for the amortized costs of such capital expenses included in the definition of Direct Expenses above notwithstanding their classification as capital expenses under GAAP for accounting purposes), any depreciation on the Building or any depreciation on equipment therein, costs of correcting building code violations which violations were in existence on the Commencement Date, legal fees associated with the preparation, interpretation and/or enforcement of any lease, repairs and replacements for which and to the extent that Landlord has been reimbursed by insurance and/or paid pursuant to warranties, advertising and promotional expenses, costs representing amounts paid to an affiliate of Landlord for services or materials which are in excess of the amounts which would have been paid in the absence of such relationship or real estate broker's commission for any sale or for securing the execution of any lease. Beginning with the 2015 calendar year and through the initial term of this Lease, Tenant’s share of the components of Direct Expenses that are controllable by the Landlord shall not increase by more than five percent (5%) on an aggregate basis over the previous highest calendar year’s Direct Expenses. Direct Expenses that are not controllable by Landlord shall include water charges, sewer charges, fire protection fees and expenses, snow removal fees and expenses, management fees not to exceed four percent (4%) of rents, insurance premiums and taxes. For determining the applicability of the five percent (5%) cap in 2015, the Direct Expense for 2014 will be grossed up using the procedures listed in the third paragraph of this Section 2.01.