Common use of Allocation of Operating Expenses Clause in Contracts

Allocation of Operating Expenses. Tax Expenses and Utilities Costs to Building. The parties acknowledge that the Building is a part of a multi-building project, and that the costs and expenses incurred in connection with the Real Property i.e. the Operating Expenses, Tax Expenses and Utilities Costs) should be shared between the tenants of the Building and the tenants of the Adjacent Building. Accordingly, as set forth in Sections 4.1 and 4.2 above, Operating Expenses, Tax Expenses and Utilities Costs are determined annually for the Real Property as a whole. and a portion of the Operating Expenses, Tax Expenses and Utilities Costs, which portion shall be determined by Landlord on an equitable basis, shall be allocated to the Building (as opposed to the Adjacent Building), and such portion so allocated shall be the amount of Operating Expenses, Tax Expenses and Utilities Costs payable with respect to the Building upon which Tenant's Share shall be calculated. Such portion of the Operating Expenses, Tax Expenses and Utilities Costs allocated to the Building shall include all Operating Expenses, Tax Expenses and Utilities Costs which are attributable solely to the Building, and an equitable portion of the Operating Expenses, Tax Expenses and Utilities Costs attributable to the Real Property as a whole. As an example of such allocation with respect to Tax Expenses and Utilities Costs, it is anticipated that Landlord may receive separate tax bills which separately assess the improvements component of Tax Expenses for each building in the Project and/or Landlord may receive separate utilities bills from the utilities companies identifying the Utilities Costs for certain of the utilities costs directly incurred by each such building (as measured by separate meters installed for each such building), and such separately assessed Tax Expenses and separately metered Utilities Costs shall be calculated for and allocated separately to each such applicable building. In addition, in the event Landlord elects, at its sole option, to subdivide certain common area portions of the Real Property such as landscaping, public and private streets, driveways, walkways, courtyards, plazas, transportation facilitation areas, accessways and/or parking areas into a separate parcel or parcels of land (and/or separately convey all or any of such parcels to a common area association to own, operate and/or maintain same), the Operating Expenses, Tax Expenses and Utilities Costs for such common area parcels of land may be aggregated and then reasonably allocated by Landlord to the Building, the Adjacent Building and/or any other buildings (if any) in the Real Property on an equitable basis as Landlord (and/or any applicable covenants, conditions and restrictions for any such common area association) shall provide from time to time.

Allocation of Operating Expenses. Tax Some Operating Expenses and Utilities Costs shall relate only to Building. The parties acknowledge that the Building is a part of a multi-building projectOffice Component, and that will be allocated based on the costs and expenses incurred in connection with the Real Property i.e. the Operating Expenses, Tax Expenses and Utilities Costs) should be shared between the tenants square footage of the Building Office Component, and some Operating Expenses will relate to the tenants Land and all of the Adjacent Buildingbuildings on the Land, and will be allocated accordingly. AccordinglyNotwithstanding any other provision of this Lease, as set forth in Sections 4.1 and 4.2 above, Operating Expenses, Tax Expenses and Utilities Costs are determined annually for the Real Property as a whole. and a portion of the expenses, costs and disbursements relating to Common Areas that do not exclusively serve the Office Component that shall be included in calculating Operating Expenses, Tax Expenses and Utilities Costsshall be a prorated amount thereof, which portion shall be determined by multiplying the amount of such expenses, costs and disbursements by a fraction, the numerator of which shall be the square feet of the Office Component and the denominator of which shall be the square feet of the structure which includes the Office Component. Landlord shall have the right to change the manner in which such expenses, costs and disbursements relating to such Common Areas are allocated. If Landlord changes the manner that expenses, costs and disbursements relating to Common Areas are allocated, Landlord and Tenant shall enter into an amendment to this Lease giving effect to such change. No change in the manner in which the expenses, costs and disbursements relating to such Common Areas are allocated shall result in a material increase in Tenant’s Proportionate Share of Operating Expenses. The development on an equitable basisthe Land includes, in addition to the Office Component, the Retail Component and certain residential spaces (collectively, the “Non-Office Components”). Operating Expenses allocable to the Non-Office Components shall be segregated on a commercially reasonable basis and excluded from the Operating Expenses calculated under this Section to the extent that Operating Expenses are incurred for the sole benefit of, or directly for, the Non-Office Component. For example, and by way of illustration but not limitation, the costs of janitorial services for the Non-Office Component and dumpsters for the Non- Office Component, may be allocated solely to the Non-Office Component, and not to the Office Component, and the costs of janitorial services for the Office Component shall be allocated to the Building (as opposed Office Component, and not the Non-Office Component, but the cost of care and maintenance of Land roads and landscaping shall be allocated between the Office Component and the Non-Office Component, based on the square footage of each. Landlord shall also make comparable adjustment to Operating Expenses for services provided to the Adjacent Building)retail components of and within the first floor lobby, to the extent services provided to office tenants and such portion so allocated shall be the amount of Operating Expenses, Tax Expenses and Utilities Costs payable with respect to the Building upon which Tenant's Share shall be calculated. Such portion of the Operating Expenses, Tax Expenses and Utilities Costs allocated to the Building shall include all Operating Expenses, Tax Expenses and Utilities Costs which retail tenants are attributable solely to the Building, and an equitable portion of the Operating Expenses, Tax Expenses and Utilities Costs attributable to the Real Property as a whole. As an example of such allocation with respect to Tax Expenses and Utilities Costs, it is anticipated that Landlord may receive separate tax bills which separately assess the improvements component of Tax Expenses for each building in the Project and/or Landlord may receive separate utilities bills from the utilities companies identifying the Utilities Costs for certain of the utilities costs directly incurred by each such building (as measured by separate meters installed for each such building), and such separately assessed Tax Expenses and separately metered Utilities Costs shall be calculated for and allocated separately to each such applicable building. In addition, in the event Landlord elects, at its sole option, to subdivide certain common area portions of the Real Property such as landscaping, public and private streets, driveways, walkways, courtyards, plazas, transportation facilitation areas, accessways and/or parking areas into a separate parcel or parcels of land (and/or separately convey all or any of such parcels to a common area association to own, operate and/or maintain same), the Operating Expenses, Tax Expenses and Utilities Costs for such common area parcels of land may be aggregated and then reasonably allocated by Landlord to the Building, the Adjacent Building and/or any other buildings (if any) in the Real Property on an equitable basis as Landlord (and/or any applicable covenants, conditions and restrictions for any such common area association) shall provide from time to timedifferent.