Example ContractsClausesPayment of Operating Costs
Payment of Operating Costs
Payment of Operating Costs contract clause examples

In addition to the Rent and other charges prescribed in this Lease, Tenant shall pay to Landlord, as Additional Rent required pursuant to this Lease, Tenant's Proportionate Share of the actual cost of Landlord's management, operation and maintenance of the Common Area, as well as other shared costs of any kind which may be incurred by Landlord in its discretion in connection with the operation, cleaning, security, maintenance, ownership, management, and repair of the Building and the Project (collectively, the "Operating Costs"), all calculations, determinations, allocations, and decisions shall be made in accordance with GAAP, consistently applied, including, without limitation, all costs of the following: lighting, painting, cleaning, policing, inspecting, and repairing Common Area elements; trash removal (except as paid directly by Tenant or otherwise administered pursuant to [Section 10.4] of this Lease); insect and pest treatments and eradication (whether in the Common Area or for the Building or the Project); security (if and to the extent Landlord elects to provide security); roof repairs and maintenance; environmental protection improvements or devices and health and safety improvements and devices which may be required by applicable laws enacted or first enforced after the Commencement Date (including the maintenance, and repair of same); environmental monitoring programs and devices; wages and salaries of all employees, agents, consultants and others engaged in operation, cleaning maintenance, repair, replacement and security of the Project but not above the title of Project manager; charges and assessments paid by Landlord pursuant to any owner's association, reciprocal easement, covenants or comparable document affecting the Building or the Project; any fees which Landlord pays for the management or asset management of the Project (not to exceed three percent (3%) of the Base Rent); utilities; snow and ice removal; the foregoing notwithstanding, monthly amortization of only those capital expenses or capital improvements made # to effect a net reduction or prevent a net increase in Operating Costs after considering the cost of any such amortization or # to comply with laws promulgated or made applicable to the Project following the date of this Lease (such amortization to be calculated over the useful life of such improvement (as determined by Landlord in accordance with generally accepted accounting principles, consistently applied (“GAAP”)) at a rate of interest actual or imputed, at Landlord’s option, that Landlord would reasonably be required to pay to finance the cost of the item, applied on the unamortized balance (the “Permitted Capital Costs”); the cost of resurfacing and restriping parking areas and roadways; any other item stated in this Lease to be an Operating Cost, and the cost of any insurance for which Landlord is not reimbursed pursuant to [Section 6.2]. In addition, although the roof(s), canopies, sewer and water lines servicing the Project, fire-protection systems and devices, if any (such as sprinkler systems, if any), foundations and exterior surfaces of the building(s) in the Project are not literally part of the Common Area, Landlord and Tenant agree that all non-capital costs (other than Permitted Capital Costs) incurred by Landlord with respect to all Building sewer (including septic systems, if applicable) and water lines and other equipment (including maintenance, and repair of same), fire-protection equipment and devices (including maintenance, and repair of same), exterior painting and for roof and canopy maintenance, repair and replacement shall be included as Operating Costs pursuant to this [Section 7.4], to the extent not specifically allocated to Tenant under this Lease nor to another tenant pursuant to its lease. The charges contemplated in this [Section 7.4], however, shall not include any expenses paid or reimbursed by Tenant pursuant to Article VI of this Lease. Operating Costs shall expressly exclude: # costs of alterations of tenant spaces (including all tenant improvements to such spaces); # costs of capital improvements, capital repairs or capital replacements except for Permitted Capital Costs; # depreciation, interest and principal payments on mortgages, and other debt costs, if any; # real estate brokers' leasing commissions or compensation and advertising and other broker marketing expenses; # costs of other services or work performed for the singular benefit of another tenant or occupant (other than for Common Area); # 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 (other than Tenant); # costs of advertising and public relations and promotional costs and attorneys' fees associated with the leasing of the Building; # any expense for which Landlord actually receives reimbursement from insurance, condemnation awards, other tenants, (other than through the payment of additional rent under such tenants' leases) or any other source; # costs incurred in connection with the sale, financing, refinancing, mortgaging, or other change of ownership of the Building; # Real Estate Charges or Insurance Expenses, which are passed through to Tenant separately; # costs, fines, interest, penalties, legal fees or costs of litigation incurred due to the late payments of utility bills and other costs incurred by Landlord's failure to make such payments when due unless caused by Tenant's failure to pay on time; # any attorneys' fees incurred by Landlord in connection with any lease or proposed lease at the Project; # reserves of any kind; # costs arising from Landlord's charitable or political contributions; # wages, salaries, benefits, or other costs of employees above the grade of building manager; and # any costs necessitated by or resulting from the gross negligence or willful misconduct of Landlord, or its agents, contractors, or employees.

Payment of Operating Costs. Commencing as of the Term Commencement Date and continuing thereafter throughout the remainder of the Term of the Lease, Tenant shall pay to Landlord, as Additional Rent, Tenant’s Share of Operating Costs. Landlord may make a good faith estimate of Tenant’s Share of Operating Costs for any fiscal year or part thereof during the Term, and Tenant shall pay to Landlord, on the Term Commencement Date and on the first (1st) day of each calendar month thereafter, an amount equal to Tenant’s Share of Operating Costs for such fiscal year and/or part thereof divided by the number of months therein. Landlord may estimate and re-estimate Tenant’s Share of Operating Costs and deliver a copy of the estimate or re-estimate to Tenant. Thereafter, the monthly installments of Tenant’s Share of Operating Costs shall be appropriately adjusted in accordance with the estimations so that, by the end of the fiscal year in question, Tenant shall have paid all of Tenant’s Share of Operating Costs as estimated by Landlord. Any amounts paid based on such an estimate shall be subject to adjustment as herein provided when actual Operating Costs are available for each fiscal year. As of the Execution Date, the Property’s fiscal year is January 1 – December 31.

Operating Costs. “Operating Costs” will mean all costs, charges, and expenses incurred by Landlord in connection with owning, operating, maintaining, repairing, insuring and managing the Project, computed on an accrual basis and including, without limitation, costs, charges and expenses incurred with respect to the items enumerated as “Operating Cost Examples” in Paragraph 2 of Exhibit C to this Lease. Operating Costs will not include those items enumerated as “Operating Cost Exclusions” in Paragraph 1 of Exhibit C to this Lease.

In the event the total Operating Costs incurred by Landlord for the Building in any calendar year of Landlord during the term of this Lease increase for any reason above those incurred in the Operating Cost Base Year as set forth in the Reference Data (“Base Operating Costs”), Tenant shall pay to Landlord as Additional Rent hereunder Tenant’s Proportionate Share of such increase.

Operating Costs. Tenant shall reimburse Landlord for Tenant’s Percentage of Operating Costs.

Payment of Operating Costs. Tenant shall pay to Landlord, as additional rent, Tenant’s Share of Operating Costs (as defined in Exhibit 6 attached hereto). Landlord may make a good faith estimate of the Operating Costs for any fiscal year (wholly or partially) occurring during the Term, and Tenant shall pay to Landlord, on the first (1st) day of each calendar month, an amount equal to Tenant’s Share of the Operating Costs for such fiscal year and/or part thereof divided by the number of months therein. Landlord may estimate and re-estimate Tenant’s Share of the Operating Costs and deliver a copy of the estimate or re-estimate to Tenant. Thereafter, the monthly installments of Tenant’s Share of the Operating Costs shall be appropriately adjusted in accordance with the estimations so that, by the end of the fiscal year in question, Tenant shall have paid all of Tenant’s Share of the Operating Costs as estimated by Landlord. Any amounts paid based on such an estimate shall be subject to adjustment as herein provided when the actual Operating Costs are available for each fiscal year.

Payment of Operating Costs. From and after the Rent Commencement Date, Tenant shall pay to Landlord, as additional rent, one hundred percent (100%) of all Operating Costs (as defined in [Exhibit 7] attached hereto). Landlord may make a good faith estimate of the Operating Costs for any fiscal year (wholly or partially) occurring during the Term, and Tenant shall pay to Landlord, on the first (1st) day of each calendar month, an amount equal to the estimated Operating Costs for such fiscal year and/or part thereof divided by the number of months therein. Landlord may estimate and re-estimate the Operating Costs and deliver a copy of the estimate or re-estimate to Tenant. Thereafter, the monthly installments of Operating Costs shall be appropriately adjusted in accordance with the estimations so that, by the end of the fiscal year in question, Tenant shall have paid all of the Operating Costs as estimated by Landlord. Any amounts paid based on such an estimate shall be subject to adjustment as herein provided when the actual Operating Costs are available for each fiscal year. Notwithstanding anything in this Article 5 to the contrary, Tenant shall pay to Landlord, or directly to the utility provider, all utility costs for the Premises from and after the Commencement Date.

Operating Costs. Notwithstanding anything to the contrary contained in the Lease, effective as of the Third Amendment Commencement Date, # the Base Year shall be amended to be calendar year 2023, # Tenant shall not be responsible for Operating Costs Allocable to the Premises from the Third Amendment Commencement Date until January 31, 2024, and # for the period commencing on the Third Amendment Commencement Date and continuing until January 31, 2024 only, any increase of Property Taxes pursuant to Proposition 13 shall not be Tenant's responsibility. The provisions relating to Proposition 8 set forth in the Original Lease are hereby ratified and shall remain in full force and effect.

Payment of Operating Costs. Commencing as of the Rent Commencement Date and continuing thereafter throughout the remainder of the Term of the Lease, Tenant shall pay to Landlord, as Additional Rent, Tenant’s Share of Operating Costs. Landlord may make a good faith estimate of Tenant’s Share of Operating Costs for any fiscal year or part thereof during the Term, and Tenant shall pay to Landlord, on the Rent Commencement Date and on the first (1st) day of each calendar month thereafter, an amount equal to Tenant’s Share of Operating Costs for such fiscal year and/or part thereof divided by the number of months therein. Landlord may estimate and re-estimate Tenant’s Share of Operating Costs and deliver a copy of the estimate or re-estimate to Tenant. Thereafter, the monthly installments of Tenant’s Share of Operating Costs shall be appropriately adjusted in accordance with the estimations so that, by the end of the fiscal year in question, Tenant shall have paid all of Tenant’s Share of Operating Costs as estimated by Landlord. Any amounts paid based on such an estimate shall be subject to adjustment as herein provided when actual Operating Costs are available for each fiscal year. As of the Execution Date, the Property’s fiscal year is January 1 – December 31.

Payment of Operating Costs. Commencing as of the Term Commencement Date and continuing thereafter throughout the remainder of the Term of the Lease, Tenant shall pay to Landlord, as Additional Rent, Tenant’s Share of Operating Costs. Landlord may make a good faith estimate of Tenant’s Share of Operating Costs for any fiscal year or part thereof during the Term, and Tenant shall pay to Landlord, on the Rent Commencement Date and on the first (1st) day of each calendar month thereafter, an amount equal to Tenant’s Share of Operating Costs for such fiscal year and/or part thereof divided by the number of months therein. Landlord may estimate and re-estimate Tenant’s Share of Operating Costs and deliver a copy of the estimate or re-estimate to Tenant. Thereafter, the monthly installments of Tenant’s Share of Operating Costs shall be appropriately adjusted in accordance with the estimations so that, by the end of the fiscal year in question, Tenant shall have paid all of Tenant’s Share of Operating Costs as estimated by Landlord. Any amounts paid based on such an estimate shall be subject to adjustment as herein provided when actual Operating Costs are available for each fiscal year. As of the Execution Date, the Property’s fiscal year is January 1 – December 31.

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