Operating Expenses and Additional Rent. (a) Tenant agrees to pay as Additional Rent (as defined in Section 6(b) below) its proportionate share of Operating Expenses (as hereinafter defined). “Operating Expenses” shall be defined as all reasonable expenses for operation, repair, replacement (not in nature of a capital improvement as set forth below) and maintenance as necessary to keep the Building and the common areas, driveways, and parking areas associated therewith (collectively, the “Building Common Area”), in good order, condition and repair, including but not limited to, (i) utilities for the Building Common Area, (ii) expenses associated with the driveways and parking areas (including washing, sealing, restriping, patching, repairing; and snow, trash and ice removal), (iii) common security systems, if provided (iv) lighting and electrical systems, (v) landscaped area, (vi) water and sewer systems; (vii) walkways, (viii) directional signage, (ix) all charges assessed against or attributed to the Building pursuant to any applicable easements, covenants, restrictions, agreements, declaration of protective covenants or development standards (provided the same are amortized, if applicable, over the useful life of such improvement, only that portion of such amortized amount as is attributable to the remainder of the Term shall be assessed, and no charges in connection with the original construction of the Project shall be assessed), (x) property management fees, based upon Base Rental plus Additional Rent, but only to the extent the same do not exceed competitive costs for such comparable services in a generally comparable lease space and building in a generally comparable business park in the Dallas marketplace, as part of a comparably sized real estate portfolio. (Landlord shall charge a property management fee equal to 3 1/2 % of Base Rental plus Additional Rent for calendar years 2005 and 2006; and, to confirm the cost effectiveness of its property management fee, Landlord shall, on a bi-annual basis, obtain competitive proposals for the management of the Building together with all the rest of Landlord’s real estate portfolio, from third party management services companies), (xi) all real property taxes and special assessments imposed upon the Building, the Building Common Area and the land on which the Building and the Building Common Area are constructed, including the cost of any tax consultant to assist Landlord in determining the fair tax valuation; (xii) costs of insurance paid by Landlord with respect to the Building and the Building Common Area; and, (xiii) costs of improvements to the Building and the Building Common Area required by any law, ordinance or regulation applicable to the Building and the Building Common Area generally (and no because of the particular use of the Building or the Building Common Area by a particular tenant), which cost shall be amortized on a straight line basis over the useful life of such improvement, as reasonably determined by Landlord. Operating Expenses shall also include the reasonable operating expenses of the common areas of the Project, if any, which expenses shall be proportionately allocated among the completed buildings of the Project, based on the square footage of each building. Further, Operating Expenses shall not include the costs for capital improvements unless such costs are incurred for the purpose of causing a material decrease in the Operating Expenses of the Building (during the Term) or are made with respect to improvements made to comply with laws, ordinances or regulations as described above.
Appears in 1 contract
Operating Expenses and Additional Rent. (a) Tenant agrees to pay as Additional Rent (as defined in Section 6(b) below) its proportionate share of Operating Expenses (as hereinafter defined). “Operating Expenses” shall be defined as all reasonable expenses for operation, repair, replacement (not in the nature of a capital improvement as set forth below) and maintenance as necessary to keep the Building and the common areas, driveways, and parking areas associated therewith (collectively, the “Building Common Area”), in good order, condition and repair, including but not limited to, (i) utilities for the Building Common Area, (ii) expenses associated with the driveways and parking areas (including washing, sealing, restriping, patching, repairing; and snow, trash and ice removal), (iii) common security systems, if provided (iv) lighting and electrical systems, (v) landscaped area, (vi) water and sewer systems; (vii) walkways, (viii) directional signage, (ix) all charges assessed against or attributed to the Building pursuant to any applicable easements, covenants, restrictions, agreements, declaration of protective covenants or development standards (provided the same are amortized, if applicable, over the useful life of such improvement, only that portion of such amortized amount as is attributable to the remainder of the Term shall be assessed, and no charges in connection with the original construction of the Project shall be assessed), (x) property management fees, based upon Base Rental plus Additional Rent, but only to the extent the same do not exceed competitive costs for such comparable services in a generally comparable lease space and building in a generally comparable business park in the Dallas marketplace, as part of a comparably sized real estate portfolio. (Landlord shall charge a property management fee equal to 3 1/2 1/2% of Base Rental plus Additional Rent for calendar years 2005 and 2006; and, to confirm the cost effectiveness of its property management fee, Landlord shall, on a bi-annual basis, obtain competitive proposals for the management of the Building together with all the rest of Landlord’s real estate portfolio, from third party management services companies), (xi) all real property taxes and special assessments imposed upon the Building, the Building Common Area and the land on which the Building and the Building Common Area are constructed, including the cost of any tax consultant to assist Landlord in determining the fair tax valuation; (xii) costs of insurance paid by Landlord with respect to the Building and the Building Common Area; and, (xiii) costs of improvements to the Building and the Building Common Area required by any law, ordinance or regulation applicable to the Building and the Building Common Area generally (and no not because of the particular use of the Building or the Building Common Area by a particular tenant), which cost shall be amortized on a straight line basis over the useful life of such improvement, as reasonably determined by Landlord. Operating Expenses shall also include the reasonable operating expenses of the common areas of the Project, if any, which expenses shall be proportionately allocated among the completed buildings of the Project, based on the square footage of each building. Further, Operating Expenses shall not include the costs for capital improvements unless such costs are incurred for the purpose of causing a material decrease in the Operating Expenses of the Building (during the Term) or are made with respect to improvements made to comply with laws, ordinances or regulations as described above.
Appears in 1 contract
Operating Expenses and Additional Rent. (a) Tenant agrees to pay as Additional Rent (as defined in Section 6(b) below) its proportionate share of Operating Expenses (as hereinafter defined). “"Operating Expenses” " shall be defined as all reasonable expenses for operation, repair, replacement (not in nature of a capital improvement as set forth below) and maintenance as necessary to keep the Building and the common areas, driveways, and parking areas associated therewith (collectively, the “"Building Common Area”), ") in good order, condition and repair, including but not limited to, (i) utilities for the Building Common Area, (ii) expenses associated with the driveways and parking areas (including washing, sealing, sealing and restriping, patching, repairing; and snow, trash and ice removal), (iii) common security systems, if provided (iv) lighting fire detection and electrical prevention systems, (v) lighting facilities, landscaped areaareas, (vi) water and sewer systems; (vii) walkways, (viii) painting and caulking, directional signage, curbs, drainage strips, sewer and other utility lines located in the Building Common Area (ix) except to the extent such utility lines were installed by a tenant of the Building and exclusively serve such tenant's space), common utility lines located within the Building and not required to be maintained by a tenant of the Building pursuant to its lease, all charges assessed against or attributed to the Building pursuant to any applicable easements, covenants, restrictions, agreements, declaration of protective covenants or development standards (provided the same are amortizedcovenants, if applicable, over the useful life of such improvement, only that portion of such amortized amount as is attributable to the remainder of the Term shall be assessed, and no charges in connection with the original construction of the Project shall be assessed), (x) property management fees, based upon Base Rental plus Additional Rent, but only to the extent the same do not exceed competitive costs for such comparable services in a generally comparable lease space and building in a generally comparable business park in the Dallas marketplace, as part of a comparably sized real estate portfolio. (Landlord shall charge a property management fee equal to 3 1/2 % of Base Rental plus Additional Rent for calendar years 2005 and 2006; and, to confirm the cost effectiveness of its property management fee, Landlord shall, on a bi-annual basis, obtain competitive proposals for the management of the Building together with all the rest of Landlord’s real estate portfolio, from third party management services companies), (xi) all real property taxes, franchise taxes and special assessments attributable to or imposed upon the Building, the Building Common Area and the land on which the Building and the Building Common Area are constructed, including the cost of any tax consultant to assist Landlord in determining the fair tax valuation; (xii) all costs of insurance paid by Landlord with respect to the Building and the Building Common Area; and, (xiii) and costs of improvements to the Building and the Building Common Area required by any law, ordinance or regulation applicable to the Building and the Building Common Area generally (and no not because of the particular use of the Building or the Building Common Area by a particular tenant), which cost shall be amortized on a straight line basis over the useful life of such improvement, as reasonably determined by Landlordin accordance with generally accepted accounting principles ("GAAP") (provided that in no event shall the useful life be greater than fifteen (15) years). Operating Expenses shall also not include expenses for the reasonable operating expenses costs of the common areas of the Project, if any, which expenses shall any maintenance and repair required to be proportionately allocated among the completed buildings of the Project, based on the square footage of each buildingperformed by Landlord at its own expense under Section (10)(b). Further, Operating Expenses shall not include the costs for capital improvements unless such costs are incurred for the purpose of causing a material decrease in the Operating Expenses of the Building (during or the Term) Building Common Area or are made incurred with respect to improvements made to comply with laws, ordinances or regulations as described above. The proportionate share of Operating Expenses to be paid by Tenant shall be a percentage of the Operating Expenses based upon the proportion that the square footage of the Demised Premises bears to the total square footage of the Building (such figure referred to as "Tenant's Operating Expense Percentage" and set forth in Section 1(j). Prior to or promptly after the beginning of each calendar year during the Term, Landlord shall estimate the total amount of Operating Expenses to be paid by Tenant during each such calendar year and Tenant shall pay to Landlord one- twelfth (1/12) of such sum on the first day of each calendar month during each such calendar year, or part thereof, during the Term. Within one hundred twenty (120) days after the end of each calendar year, Landlord shall submit to Tenant a statement of the actual amount of Operating Expenses for such calendar year, and the actual amount owed by Tenant, and within thirty (30) days after receipt of such statement, Tenant shall pay any deficiency between the actual amount owed and the estimates paid during such calendar year, or in the event of overpayment, Landlord shall credit the amount of such overpayment toward the next installment of Operating Expenses owed by Tenant or remit such overpayment to Tenant if the Term has expired or has been terminated and no Event of Default exists hereunder. The obligations in the immediately preceding sentence shall survive the expiration or any earlier termination of this Lease for a period of time sufficient to allow the time periods set forth therein to run in full. If the Lease Commencement Date shall fall on other than the first day of the calendar year, and/or if the Expiration Date shall fall on other than the last day of the calendar year, Tenant's proportionate share of the Operating Expenses for such calendar year shall be apportioned prorata.
Appears in 1 contract