Common use of Expense Escalation Clause in Contracts

Expense Escalation. (a) Tenant shall pay to Landlord as additional rent under this Lease at the times hereinafter set forth Tenant's Share as specified in Paragraph 2 of any increase in the operating Expenses incurred by Landlord in each calendar year subsequent to the Base Year specified in Paragraph 2 over the Operating Expenses incurred by Landlord during such Base Year. The term "Operating Expenses" shall mean the total costs and expenses incurred by Landlord in connection with the management, operation, maintenance, repair and ownership of the Real Property, as determined in accordance with generally accepted accounting principles, consistently applied excluding "Tax Expenses" as defined below, and including, without limitation, the following costs (i) the reasonable allocation of salaries, wages, bonuses and other compensation relating to employees of Landlord or its agents engaged in the operation, repair, or maintenance of the Real Property; (ii) premiums and other charges incurred by Landlord with respect to fire and other casualty, rent and liability insurance, any other insurance as is deemed necessary or advisable in the reasonable judgment of Landlord, or any insurance required by the holder of any Superior Interest, and, after the Base Year, costs of repairing an insured casualty the extent of the deductible amount under the applicable insurance policy, but excluding financing charges (other than charges paid to the insurer) with respect to amounts borrowed by Landlord to pay such premiums or other charges; (iii) license, permit and inspection fees; (iv) sales, use and excise taxes on goods and services purchased by Landlord in connection with the operation, maintenance or repair of the Real Property; (v) supplies, tools, materials and equipment used in connection with the operation, maintenance and repair of the Real Property; (vi) the reasonable allocation of accounting, legal, and other professional fees and expenses; (vii) The cost of maintaining the sidewalks (amortized over a three (3) year period, at ten percent (10%) interest) and landscaping; (viii) the cost of any capital improvement made by Landlord to the Real Property or capital assets acquired by Landlord after the Base Year required under any governmental law, regulation or insurance requirement with which the Real Property was not required to comply during the Base Year, such cost or allocable portion to be amortized over the useful life thereof, together with interest on the unamortized balance at a rate per annum equal to the Prime Rate charged at the time such capital improvements or capital assets are constructed or acquired or such higher rate as may have been paid by Landlord on funds borrowed for the purpose of constructing or acquiring such capital improvements or capital assets, but in either case not more than the maximum rate permitted by law at the time such capital improvements of capital assets are constructed or acquired; (ix) the cost of any capital improvements approved by Tenant (which approval shall not be unreasonably withheld) that are made by Landlord to the Building or capital assets acquired by Landlord after the Base Year for the protection of the health and safety of the occupants of the Real Property or that are designed to reduce other Operating Expenses, such cost or allocable portion thereof to be amortized over the useful life thereof, together with interest on the unamortized balance at a rate per annum equal to the Prime Rate charged at the time such capital improvements or capital assets are constructed or acquired or such higher rate as may have been paid by Landlord on funds borrowed for the purpose of constructing or acquiring such capital improvements or capital assets, but in either case not more than the maximum rate permitted by law at the time such capital improvements or capital assets are constructed or acquired.