Items Included in Operating Expenses. (1) salaries, wages, including Landlord's employment taxes (such as FICA and unemployment) and benefits paid to employees (such as medical insurance) and all other expenses incurred for the employment of the Buildings operating personnel, excluding Landlord's officers and partners and headquarters and administrative and accounting staff; (2) the cost of materials and supplies; (3) the cost of replacements for tools and maintenance equipment (such equipment shall not include air conditioning equipment, boilers, elevators or any items of a capital nature; all tools and maintenance equipment purchased during the first year of full occupancy of the Buildings shall be considered capital items.); (4) amounts paid by Landlord to independent contractors for services (including full or part-time labor) and materials; (5) water charges and sewer rents; (6) the cost of repainting or otherwise redecorating any part of Common Buildings Facilities; (7) the cost of telephone service, postage, office supplies, maintenance and repair of office equipment and similar charges related to operation of the Buildings; (8) premiums for insurance purchased by Landlord pursuant to Subsection 10.02(a), subject to Paragraph B, subparagraph (11) below; (9) management fee for administration, such fee being two percent (2%) of the Annual Rent and Operating Expenses allocated to the Tenant; (10) all costs and expenses (other than those of a capital nature) of maintaining, repairing and replacing paving, curbs, walkways and landscaping, including snow removal; (11) the cost of electricity, steam and fuel used to ventilate, heat, light and air condition tenant space and for the Common Buildings Facilities, including fuel for emergency generators (excluding utilities separately metered to tenants); cost of installing and replacing light bulbs, tubes and ballasts in the Common Buildings Facilities and Buildings Parking Area; (12) the cost of normal maintenance and preventive maintenance of mechanical and electrical equipment, including plumbing, sprinklers, heating, ventilating and air conditioning and elevator equipment, but excluding capital expenditures (If because of guarantees, warranties or any other reasons, all of such costs are not incurred within the Operating Expense Year, the Operating Expense Year will only include those costs actually incurred. The remaining costs shall be charged in the following operating expense year (s) when actually incurred; (13) the cost of providing services by Landlord in Article Six; (14) the cost of general security for the site and grounds (apart from security into and within each of the Buildings which shall be provided by Tenant); (15) the cost of janitorial supplies and services, window cleaning; (16) the cost of trash removal, including confidential waste and recycling; (17) the cost of emergency generators, excluding those for computer rooms; (18) the cost of an on site office and segregated storage area ("Landlord's Space") for Landlord's parts, tools, supplies (the Landlord's Space shall be designated at the inception of the Lease and, if located within the Leased Premises, may be relocated to any other available location other than the Leased Premises reasonably acceptable to Tenant and Landlord on three (3) months prior notice) (as long as Landlord's Space is located in the Leased Premises and Tenant in paying rent for such Landlord's Space, such rent shall be excluded from Operating Expense); (19) the cost of maintenance and repair designated in Section 9.01 (1), (2), (3), and (4) (excluding such items considered Capital Improvements); (20) cost of removal of asbestos containing material in connection with maintenance, repair or restoration of mechanical systems; (21) all other costs incurred by Landlord, not otherwise designated in this Lease but reasonably related to the operation, repair and maintenance of the Project. (22) the costs of improvements (if any) required within the Leased Premises to comply with the provisions of the federal American with Disabilities Act, as amended, and any similar New Jersey requirements (such costs and improvements shall not be considered Capital Improvements under this Lease) Operating Expenses shall be reduced by the amounts of any reimbursement, refund or credit received or receivable by Landlord with respect to any item of Operating Expenses. If any such reimbursement, refund or credit is received or receivable by Landlord in a later Operating Expense Year, it shall be applied against the Operating Expenses for such later Operating Expense Year; and, if the Term has expired, such item shall be promptly refunded by Landlord to Tenant.
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Items Included in Operating Expenses. (1) salaries, wages, including Landlord's employment taxes (such The term "Operating Expenses" as FICA and unemployment) and benefits paid used in the Lease to employees (such as medical insurance) and all other expenses incurred for the employment of the Buildings operating personnel, excluding Landlord's officers and partners and headquarters and administrative and accounting staff;
(2) the cost of materials and supplies;
(3) the cost of replacements for tools and maintenance equipment (such equipment shall not include air conditioning equipment, boilers, elevators or any items of a capital nature; all tools and maintenance equipment purchased during the first year of full occupancy of the Buildings shall be considered capital items.);
(4) amounts paid by Landlord to independent contractors for services (including full or part-time labor) and materials;
(5) water charges and sewer rents;
(6) the cost of repainting or otherwise redecorating any part of Common Buildings Facilities;
(7) the cost of telephone service, postage, office supplies, maintenance and repair of office equipment and similar charges related to operation of the Buildings;
(8) premiums for insurance purchased by Landlord pursuant to Subsection 10.02(a), subject to Paragraph B, subparagraph (11) below;
(9) management fee for administration, such fee being two percent (2%) of the Annual Rent and Operating Expenses allocated to the Tenant;
(10) which this Exhibit "E" is attached means: all costs and expenses of operation and maintenance of the Building and the Common Areas (other than those of a capital natureas such terms are defined in the Lease), as determined by standard accounting practices, calculated assuming the Building is ninety-five percent (95%) of maintaining, repairing and replacing paving, curbs, walkways and landscapingoccupied, including snow removal;
the following costs by way of illustration but not limitation, but excluding those items specifically set forth in Paragraph 3 below: (11a) Real Property Taxes and Assessments (as defined in PARAGRAPH 2 below) and any taxes or assessments imposed in lieu thereof; (b) any and all assessments imposed with respect to the cost Building pursuant to any covenants, conditions and restrictions affecting the Development, the Common Areas or the Building; (c) water and sewer charges and the costs of electricity, steam and fuel used to ventilate, heat, light and air condition tenant space and for the Common Buildings Facilities, including fuel for emergency generators (excluding utilities separately metered to tenants); cost of installing and replacing light bulbs, tubes and ballasts in the Common Buildings Facilities and Buildings Parking Area;
(12) the cost of normal maintenance and preventive maintenance of mechanical and electrical equipment, including plumbing, sprinklers, heating, ventilating and ventilating, air conditioning and elevator equipment, but excluding capital expenditures other utilities; (If because of guarantees, warranties or d) utilities surcharges and any other reasonscosts, all levies or assessments resulting from statutes or regulations promulgated by any government or quasi-government authority in connection with the use, occupancy or alteration of such the Building or the premises or the parking facilities serving the Building or the Premises; (e) costs are not of insurance obtained by Lessor pursuant to PARAGRAPH 19 of the Lease; (f) waste disposal and janitorial services; (g) security; (h) labor; (i) costs incurred within the Operating Expense Year, the Operating Expense Year will only include those costs actually incurred. The remaining costs shall be charged in the following operating expense year (s) when actually incurred;
(13) the cost of providing services by Landlord in Article Six;
(14) the cost of general security for the site and grounds (apart from security into and within each management of the Buildings which shall be provided by Tenant);
Building, including, without limitation; (15i) supplies, (ii) wages and salaries (and payroll taxes and similar governmental charges related thereto) of employees used in the cost of janitorial supplies management, operation and services, window cleaning;
(16) the cost of trash removal, including confidential waste and recycling;
(17) the cost of emergency generators, excluding those for computer rooms;
(18) the cost of an on site office and segregated storage area ("Landlord's Space") for Landlord's parts, tools, supplies (the Landlord's Space shall be designated at the inception maintenance of the Lease and, if located within the Leased Premises, may be relocated to any other available location other than the Leased Premises reasonably acceptable to Tenant and Landlord on three (3) months prior notice) (as long as Landlord's Space is located in the Leased Premises and Tenant in paying rent for such Landlord's Space, such rent shall be excluded from Operating Expense);
(19) the cost of maintenance and repair designated in Section 9.01 (1)Building, (2)iii) Building management office rental, (3)supplies, equipment and related operating expenses, and (4iv) a management/administrative fee determined as a percentage of the annual gross revenues of the Building exclusive of the proceeds of financing or a sale of the Building and an administrative fee for the management of the Development Common Area determined as a percentage of Development Common Area Operating Expenses; (excluding such items considered Capital Improvements);
j) supplies, materials, equipment and tools including rental of personal property used for maintenance; (20k) cost of removal of asbestos containing material in connection with maintenance, repair or restoration of mechanical systems;
(21) all other costs incurred by Landlord, not otherwise designated in this Lease but reasonably related to the operation, repair and maintenance of the Project.
elevators and the structural portions of the Building, including the plumbing, heating, ventilating, air-conditioning and electrical systems installed or furnished by Lessor; (22l) maintenance, costs and upkeep of all parking and Development Common areas; (m) depreciation on a straight line basis and rental of personal property used in maintenance; (n) amortization on a straight line basis over the costs useful life [together with interest at the Interest Rate on the unamortized balance] of improvements all capitalized expenditures which are: (if anyi) reasonably intended to produce a reduction in operating charges or energy consumption; or (ii) required within under any governmental law or regulation that was not applicable to the Leased Premises Building at the time it was originally constructed; or (iii) for replacement of any Building equipment needed to comply operate the Building at the same quality levels as prior to the replacement; (o) costs and expenses of gardening and landscaping; (p) maintenance of signs (other than signs of Lessees of the Building); (q) personal property taxes levied on or attributable to personal property used in connection with the provisions of Building or the federal American with Disabilities ActCommon Areas; (r) reasonable accounting, as amendedaudit, verification, legal and other consulting fees, and any similar New Jersey requirements (such s) costs and improvements shall not be considered Capital Improvements under this Lease) expenses of repairs, resurfacing, repairing, maintenance, painting, lighting, cleaning, refuse removal, security and similar items, including appropriate reserves. When calculating Operating Expenses for purposes of establishing Lessee's Base Operating Expense, Operating Expenses shall be reduced by not include Real Property Taxes and Assessments attributable to special assessments, charges, costs, or fees or due to modifications or changes in governmental laws or regulations including, but not limited to, the amounts institution of any reimbursementa split tax roll, refund and shall exclude market-wide labor-rate increases due to extraordinary circumstances including, but not limited to, boycotts and strikes and utility increases due to extraordinary circumstances including, but not limited to, conservation surcharges, boycotts, embargos or credit received or receivable by Landlord with respect to any item of Operating Expenses. If any such reimbursement, refund or credit is received or receivable by Landlord in a later Operating Expense Year, it shall be applied against the Operating Expenses for such later Operating Expense Year; and, if the Term has expired, such item shall be promptly refunded by Landlord to Tenantother shortages.
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Sources: Lease Addendum (Xcarenet Inc)
Items Included in Operating Expenses. (1) salaries, wages, including Landlord's employment taxes (such as FICA and unemployment) and benefits paid to employees (such as medical insurance) and all other expenses expenses, including fringe benefits, incurred for the employment of personnel who work full or part-time at the Buildings operating personnelBuilding or Land and a portion of such off-premises personnel as shall devote time to the Building and Land, excluding Landlord's officers accounting and partners key-punch operators and headquarters and administrative and accounting staffexcluding such personnel above the grade of office park manager (which office park manager may also carry a title of vice president and/or general manager);
(2) the cost of materials and supplies;
(3) the cost of replacements for tools and maintenance equipment (such equipment shall not include air conditioning equipment, boilers, elevators or any excluding items of a capital nature, except as herein provided); all tools and maintenance equipment purchased during the first year of full occupancy of the Buildings Building shall be considered capital items.);
(4) amounts paid by the Landlord to independent contractors for services (including full or part-time labor) and materials;
(5) water charges and sewer rents;
(6) the cost of repainting or otherwise redecorating any part of Common Buildings Building Facilities;
(7) the cost of telephone service, postage, office supplies, maintenance and repair of office equipment and similar charges related to operation operating of the Buildingsoffice park manager's office;
(8) premiums for insurance purchased obtained by Landlord pursuant applicable to Subsection 10.02(a)the Building and Land, subject to Paragraph Bincluding but not limited to, subparagraph (11) belowfire, liability insurance and insurance covering loss of rents;
(9) management fee for administrationall costs, such fee being two percent (2%) of the Annual Rent and Operating Expenses allocated to the Tenant;
(10) all costs and expenses (other than those of a capital nature, except as herein provided) of maintaining, repairing and replacing paving, curbs, walkways bridges, walkways, landscaping (including replanting and landscapingreplacing flowers and other plantings);
(10) the cost of electricity, including snow fuel, trash and garbage removal, vermin extermination, and snow, ice and debris removal;
(11) the cost of electricity, steam and fuel used to ventilate, heat, light and air condition tenant space and for the Common Buildings Facilities, including fuel for emergency generators (excluding utilities separately metered to tenants); cost of installing and replacing light bulbs, tubes and ballasts in the Common Buildings Facilities and Buildings Parking Area;
(12) the cost of normal maintenance and preventive maintenance of mechanical and electrical equipment, including plumbing, sprinklers, heating, ventilating and air conditioning and elevator equipment, equipment but excluding capital expenditures expenditures, except as herein provided;
(If because 12) maintenance of guaranteeselevators, warranties or any restrooms, lobbies, hallways (including replacement of carpeting and wall finishes) and other reasons, all of such costs are not incurred within the Operating Expense Year, the Operating Expense Year will only include those costs actually incurred. The remaining costs shall be charged common and public areas located in the following operating expense year (s) when actually incurredBuilding;
(13) all costs and expenses, other than those of a capital nature (except as herein provided), of maintaining, repairing or replacing the cost of providing services by Landlord in Article Sixroof, common and public lighting facilities and lamps;
(14) the cost of general security janitorial services, both exterior and interior, including janitor equipment and supplies for the site common and grounds (apart from security into and within each of the Buildings which shall be provided by Tenant)public areas;
(15) all Real Estate Taxes (as defined in Section 3.05 below) and all personal property taxes and any other types of special assessments in lieu thereof assessed against Landlord with regard to items of personal property used in connection with the cost operation, maintenance and repair of janitorial supplies the Building and services, window cleaningLand;
(16) depreciation of capital expenditures for capital items and improvements to the Common Building Facilities (together with interest on the undepreciated cost thereof at not more than the "prime rate" that may be from time to time announced or published by The First National Bank of trash removal, including confidential waste and recyclingAtlanta) made by Landlord after completion of the Building;
(17) rental payments for equipment and other items used in the operation or maintenance of the Building and Common Building Facilities, whether or not the cost of emergency generatorssuch items, if purchased, would be capital expenditures, but excluding those rental payments for computer roomsany base building items such as HVAC equipment and elevators;
(18) costs of repairs, alterations, additional changes, replacements and other items required by law or governmental regulation imposed after the cost date of an on site office and segregated storage area ("Landlord's Space") this Lease, including amortization for Landlord's parts, tools, supplies (the Landlord's Space shall be designated at the inception capital expenditures for same if they relate to items or components of the Lease andBuilding which are not structural, if located within the Leased Premises, may be relocated to any other available location other than the Leased Premises reasonably acceptable to Tenant and Landlord on three (3) months prior notice) (as long as Landlord's Space is located mechanical or electrical in the Leased Premises and Tenant in paying rent for such Landlord's Space, such rent shall be excluded from Operating Expense)nature;
(19) fees of an independent certified public accounting firm which relate directly to the cost preparation and audit of maintenance the detailed statement of Operation Expenses for the Building and Land as hereinafter provided and legal expenses incurred by Landlord in connection with the maintenance, repair designated in Section 9.01 (1), (2), (3), and (4) (excluding such items considered Capital Improvements)operation of the Building and Land;
(20) cost the pro rata share applicable to the Building of removal of asbestos containing material the expenses (including rental payments, if any, with regard to maintenance equipment) in connection with maintenancethe landscaping and irrigation along Windy Ridge Parkway, ▇▇▇▇▇ ▇▇▇▇ Road Extension and any other roads now or hereafter constructed within Wildwood Office Park, the landscaping and irrigation of the right of way areas of Powers Ferry Road adjoining Wildwood Office Park, the maintenance and repair of the gutters and curbways of Windy Ridge Parkway, ▇▇▇▇▇ ▇▇▇▇ Road Extension and such other roads now or restoration hereafter constructed within Wildwood Office Park, and the maintenance and repair of mechanical systemsall non-impervious surfaces and storm drainage systems within the rights-of-way of said Windy Ridge Parkway, ▇▇▇▇▇ ▇▇▇▇ Road Extension and such other roads. The pro rata share of such expenses shall be equal to the product obtained by multiplying (i) the total amount of such expenses (net of reimbursements from any commercial tenants) by (ii) a fraction, the numerator of which shall be the number of rentable square feet contained in the Building, and the denominator of which shall be the aggregate number of rentable square feet contained in all the office buildings located along Windy Ridge Parkway, ▇▇▇▇▇ ▇▇▇▇ Road Extension and any other roads now or hereafter constructed within Wildwood Office Park, all exclusive of basement areas. In no event, however, shall. more than forty-five percent (45%) of the total of such expenses be allocated to the Building;
(21) all other costs incurred by Landlord, not otherwise designated in this Lease but reasonably related to the operation, repair cost of security services for the common and maintenance public areas of the Project.Building and Land; and
(22) all other costs and expenses directly related to the costs of improvements (if any) required within the Leased Premises Building and Land, including any reimbursements by Landlord to comply with the provisions of the federal American with Disabilities Act, as amendedTenant for work performed by Tenant unless specifically excluded hereinafter. Operating Expenses shall be "net" only, and any similar New Jersey requirements (such costs and improvements shall not be considered Capital Improvements under this Lease) Operating Expenses for that purpose shall be reduced by the amounts of any reimbursement, refund or credit received or receivable by Landlord with respect to any item of cost that is included in Operating ExpensesExpenses including but not limited to heating, ventilating, air conditioning and electricity. If In the event any such reimbursement, refund or credit is received or receivable by Landlord in a later Operating Expense Yearyear, it shall be applied against the Operating Expenses for such later Operating Expense Yearyear; andprovided, however, that, if the Term term of this Lease has expired, Tenant's Share of such item shall promptly be promptly refunded by Landlord to Tenant.
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