Costs of Operation and Maintenance. The Landlord shall determine the amount by which its budgeted cost of operation and maintenance of the Building for the current year are estimated to increase or decrease relative to the maximum amount of costs of operation and maintenance of the Building to be borne by Landlord for the base year as set forth in paragraph 1.07. The term “costs of operation and maintenance” shall be deemed to mean those expenses actually incurred by Landlord with respect to the operation and maintenance of the Building which, in accordance with accepted principles of sound accounting practice as consistently applied to the operation and maintenance of a generally first-class building, are properly chargeable to the operation and maintenance of the Building including, without limitation, utilities, heating, air conditioning, repair and maintenance, (which under generally accepted accounting principles would not be capitalized), cost of janitorial and other services and maintenance contracts therefore, supplies, wages and salaries of employees used in the management (but not any salaries or wages for employees or agents above the grade of on-site building operation or management) of the Building, and payroll taxes with respect thereto, or alternatively the cost of contracting for the management services with a third party, a Landlord administration fee of fifteen (15%) percent of operating expenses (excluding property taxes), depreciation (on personal property owned by Landlord) or rental of personal property used in the maintenance of the Building, insurance, including fire and extended coverage, public liability and property damage and workmen’s compensation insurance and war risk and earthquake insurance and such other insurance to the extent customarily carried by the owners of first-class office buildings within the limits of Salt Lake County, property taxes as hereinafter defined, and other charges directly and properly related to the operation and maintenance of the Building. Landlord shall exclude from the cost of operation and maintenance any and all expenses relating to any operation, maintenance or supplies provided and furnished by any Tenant at Tenant’s own expense, and any expense, otherwise chargeable as part of the cost of operation and maintenance, that solely benefits a specific tenant in the Building. Notwithstanding anything contained in the Lease, no expenses incurred for the following shall be included in costs of operation and maintenance herein: (i) Repairs or other work occasioned by fire, windstorm or other casualty (except for the cost of such repairs or other work that relates to a reasonable deductible portion of the insurance policy covering such casualty) or by the exercise of the right of eminent domain: (ii) Leasing commissions, accountants’ or attorneys’ fees, costs and disbursements and other expenses incurred in connection with proposals, negotiations, or disputes with tenants or other occupancies or prospective tenants, or associated with the enforcement of any leases, or the defense of Landlord’s title or interest in the Office Building and Real Estate or any part thereof, or accountants’ or attorneys’ fees incurred in connection with any proceedings in respect of taxes; (iii) Costs (including permit, license and inspection fees) incurred in renovating or otherwise improving or decorating, painting or redecorating space for tenants or other occupants or vacant space; (iv) Costs incurred by Landlord for any alteration, addition or equipment that is considered a capital improvement or replacement under generally accepted accounting principles; (v) Depreciation and amortization; (vi) Costs of a capital nature, including, but not limited to, capital improvements, capital repairs, capital equipment, and capital tools, all as determined in accordance with generally accepted accounting principles; (vii) Costs of correcting defects (latent or otherwise) which arise within one (1) year after initial construction of the Building except that conditions (not occasioned by construction defects) resulting from ordinary wear and tear shall not be deemed defects. (viii) Expenses in connection with services or other benefits of a type that is not provided Tenant in reasonable proportion to the space lease by Tenant but that is provided to another tenant or occupant; (ix) Costs incurred due to violation by Landlord or any tenant of the terms and conditions of any lease or any laws, statutes, orders, ordinance, or regulation related to any lease; (x) Costs of financing, refinancing or interest on debt or amortization payments on any mortgages or deeds of trust or any other borrowings; (xi) Any other expense that under generally accepted accounting principles and practices consistently applied would not be considered a maintenance or operating expense.
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Sources: Lease Agreement, Lease Agreement (Extend Health Inc)
Costs of Operation and Maintenance. The Landlord shall determine the amount by which its budgeted cost of operation and maintenance of the Building for the current year are estimated to increase or decrease relative to the maximum amount of costs of operation and maintenance of the Building to be borne by Landlord for the base year as set forth in paragraph 1.07. The term “costs "Costs of operation Operation and maintenance” ----------------------------------- Maintenance" shall be deemed to mean defined as those expenses actually incurred by Landlord with respect to the repair, alteration, improvement, replacement, operation and maintenance of the Building whichPremises, Property and Parking Facilities, in accordance with accepted principles of sound accounting practice and industry standards as consistently applied to the operation operation, maintenance and maintenance security of a generally first-class office building, are properly chargeable which costs shall include but not limited to the following:
1) All utility costs;
2) All wages and benefits and costs of employees or independent contractors or employees of independent contractors engaged in the operation, maintenance, janitorial and security of the Property;
3) All expenses of the maintenance of security and safety systems for the Property;
4) All repairs to, replacement of, and physical maintenance of the Property, including the cost of all supplies, uniforms, equipment, tools, and materials;
5) Any license, permit or inspection fees required in connection with the operation of the Property;
6) Any auditor's fees for accounting provided for the operation and maintenance of the Building Property;
7) Any legal fees, costs and disbursements as would normally be incurred in connection with the operation, maintenance and repair of the Property;
8) All reasonable fees for management services provided by a management company or by Landlord or an agent of the Landlord;
9) The annual amortization of costs, including financing costs (actual or reasonably imputed), if any, incurred by Landlord after completion of the Property for any capital improvements installed or paid for by Landlord and required by any laws, rules or regulations of any governmental or quasi-governmental authority (collectively "Laws") enacted or modified after the Property was constructed;
10) The annual amortization of costs, including financing costs (actual or reasonably imputed), if any, of any equipment, device or capital improvements incurred after completion of the Property and reasonably intended as a labor-saving measure or to affect other economies in the operation or maintenance of the Property;
11) The annual amortization of costs incurred after completion of the Property, if any, for the replacement of (a) exterior perimeter window draperies or blinds provided by Landlord and (b) carpeting in the public areas of the Property;
12) All insurance expenses which shall mean all premiums and other charges incurred by Landlord with respect to the insurance of the Property including, without limitation, utilities, heating, air conditioning, repair and maintenance, the following to the extent carried by the Landlord: (which under generally accepted accounting principles would not be capitalized), cost of janitorial and other services and maintenance contracts therefore, supplies, wages and salaries of employees used in the management (but not any salaries or wages for employees or agents above the grade of on-site building operation or managementa) of the Building, and payroll taxes with respect thereto, or alternatively the cost of contracting for the management services with a third party, a Landlord administration fee of fifteen (15%) percent of operating expenses (excluding property taxes), depreciation (on personal property owned by Landlord) or rental of personal property used in the maintenance of the Building, insurance, including fire and extended coveragecoverage insurance, public liability windstorm, hail and property damage explosion; (b) riot attending a strike, civil commotion, aircraft, vehicle and workmen’s compensation insurance and war risk and earthquake insurance and such other insurance to the extent customarily carried by the owners of first-class office buildings within the limits of Salt Lake County, property taxes as hereinafter defined, and other charges directly and properly related to the operation and maintenance of the Building. Landlord shall exclude from the cost of operation and maintenance any and all expenses relating to any operation, maintenance or supplies provided and furnished by any Tenant at Tenant’s own expense, and any expense, otherwise chargeable as part of the cost of operation and maintenance, that solely benefits a specific tenant in the Building. Notwithstanding anything contained in the Lease, no expenses incurred for the following shall be included in costs of operation and maintenance herein:
(i) Repairs or other work occasioned by fire, windstorm or other casualty (except for the cost of such repairs or other work that relates to a reasonable deductible portion of the insurance policy covering such casualty) or by the exercise of the right of eminent domain:
(ii) Leasing commissions, accountants’ or attorneys’ fees, costs and disbursements and other expenses incurred in connection with proposals, negotiations, or disputes with tenants or other occupancies or prospective tenants, or associated with the enforcement of any leases, or the defense of Landlord’s title or interest in the Office Building and Real Estate or any part thereof, or accountants’ or attorneys’ fees incurred in connection with any proceedings in respect of taxessmoke insurance;
(iii) Costs (including permit, license and inspection fees) incurred in renovating or otherwise improving or decorating, painting or redecorating space for tenants or other occupants or vacant space;
(iv) Costs incurred by Landlord for any alteration, addition or equipment that is considered a capital improvement or replacement under generally accepted accounting principles;
(v) Depreciation and amortization;
(vi) Costs of a capital nature, including, but not limited to, capital improvements, capital repairs, capital equipment, and capital tools, all as determined in accordance with generally accepted accounting principles;
(vii) Costs of correcting defects (latent or otherwise) which arise within one (1) year after initial construction of the Building except that conditions (not occasioned by construction defects) resulting from ordinary wear and tear shall not be deemed defects.
(viii) Expenses in connection with services or other benefits of a type that is not provided Tenant in reasonable proportion to the space lease by Tenant but that is provided to another tenant or occupant;
(ix) Costs incurred due to violation by Landlord or any tenant of the terms and conditions of any lease or any laws, statutes, orders, ordinance, or regulation related to any lease;
(x) Costs of financing, refinancing or interest on debt or amortization payments on any mortgages or deeds of trust or any other borrowings;
(xi) Any other expense that under generally accepted accounting principles and practices consistently applied would not be considered a maintenance or operating expense.
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Costs of Operation and Maintenance. The Landlord shall determine the amount by which its budgeted cost of operation and maintenance of the Building for the current year are estimated to increase or decrease relative to the maximum amount of costs of operation and maintenance of the Building to be borne by Landlord for the base year as set forth in paragraph 1.07. The term “costs "Costs of operation Operation and maintenance” ----------------------------------- Maintenance" shall be deemed to mean defined as those expenses actually incurred by Landlord with respect to the repair, alteration, improvement, replacement, operation and maintenance of the Building whichPremises, Property and Parking Facilities, in accordance with accepted principles of sound accounting practice and industry standards as consistently applied to the operation operation, maintenance and maintenance security of a generally first-class office building, are properly chargeable which costs shall include but not limited to the following:
1) All utility costs;
2) All wages and benefits and costs of employees or independent contractors or employees of independent contractors engaged in the operation, maintenance, janitorial and security of the Property;
3) All expenses of the maintenance of security and safety systems for the Property;
4) All repairs to, replacement of, and physical maintenance of the Property, including the cost of all supplies, uniforms, equipment, tools, and materials;
5) Any license, permit or inspection fees required in connection with the operation of the Property;
6) Any auditor's fees for accounting provided for the operation and maintenance of the Building Property;
7) Any legal fees, costs and disbursements as would normally be incurred in connection with the operation, maintenance and repair of the Property;
8) All reasonable fees for management services provided by a management company or by Landlord or an agent of the Landlord;
9) The annual amortization of costs, including financing costs (actual or reasonably imputed), if any, incurred by Landlord after completion of the Property for any capital improvements installed or paid for by Landlord and required by any laws, rules or regulations of any governmental or quasi- governmental authority (collectively "Laws") enacted or modified after the Property was constructed;
10) The annual amortization of costs, including financing costs (actual or reasonably imputed), if any, of any equipment, device or capital improvement incurred after completion of the Property and reasonably intended as a labor- saving measure or to affect other economies in the operation or maintenance of the Property;
11) The annual amortization of costs incurred after completion of the Property, if any, for the replacement of (a) exterior perimeter window draperies or blinds provided by Landlord and (b) carpeting in the public areas of the Property;
12) All insurance expenses which shall mean all premiums and other charges incurred by Landlord with respect to the insurance of the Property including, without limitation, utilities, heating, air conditioning, repair and maintenance, the following to the extent carried by the Landlord: (which under generally accepted accounting principles would not be capitalized), cost of janitorial and other services and maintenance contracts therefore, supplies, wages and salaries of employees used in the management (but not any salaries or wages for employees or agents above the grade of on-site building operation or managementa) of the Building, and payroll taxes with respect thereto, or alternatively the cost of contracting for the management services with a third party, a Landlord administration fee of fifteen (15%) percent of operating expenses (excluding property taxes), depreciation (on personal property owned by Landlord) or rental of personal property used in the maintenance of the Building, insurance, including fire and extended coveragecoverage insurance, public liability windstorm, hail and property damage explosion; (b) riot attending a strike, civil commotion, aircraft, vehicle and workmen’s compensation insurance and war risk and earthquake insurance and such other insurance to the extent customarily carried by the owners of first-class office buildings within the limits of Salt Lake County, property taxes as hereinafter defined, and other charges directly and properly related to the operation and maintenance of the Building. Landlord shall exclude from the cost of operation and maintenance any and all expenses relating to any operation, maintenance or supplies provided and furnished by any Tenant at Tenant’s own expense, and any expense, otherwise chargeable as part of the cost of operation and maintenance, that solely benefits a specific tenant in the Building. Notwithstanding anything contained in the Lease, no expenses incurred for the following shall be included in costs of operation and maintenance herein:
(i) Repairs or other work occasioned by fire, windstorm or other casualty (except for the cost of such repairs or other work that relates to a reasonable deductible portion of the insurance policy covering such casualty) or by the exercise of the right of eminent domain:
(ii) Leasing commissions, accountants’ or attorneys’ fees, costs and disbursements and other expenses incurred in connection with proposals, negotiations, or disputes with tenants or other occupancies or prospective tenants, or associated with the enforcement of any leases, or the defense of Landlord’s title or interest in the Office Building and Real Estate or any part thereof, or accountants’ or attorneys’ fees incurred in connection with any proceedings in respect of taxessmoke insurance;
(iii) Costs (including permit, license and inspection fees) incurred in renovating or otherwise improving or decorating, painting or redecorating space for tenants or other occupants or vacant space;
(iv) Costs incurred by Landlord for any alteration, addition or equipment that is considered a capital improvement or replacement under generally accepted accounting principles;
(v) Depreciation and amortization;
(vi) Costs of a capital nature, including, but not limited to, capital improvements, capital repairs, capital equipment, and capital tools, all as determined in accordance with generally accepted accounting principles;
(vii) Costs of correcting defects (latent or otherwise) which arise within one (1) year after initial construction of the Building except that conditions (not occasioned by construction defects) resulting from ordinary wear and tear shall not be deemed defects.
(viii) Expenses in connection with services or other benefits of a type that is not provided Tenant in reasonable proportion to the space lease by Tenant but that is provided to another tenant or occupant;
(ix) Costs incurred due to violation by Landlord or any tenant of the terms and conditions of any lease or any laws, statutes, orders, ordinance, or regulation related to any lease;
(x) Costs of financing, refinancing or interest on debt or amortization payments on any mortgages or deeds of trust or any other borrowings;
(xi) Any other expense that under generally accepted accounting principles and practices consistently applied would not be considered a maintenance or operating expense.
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Costs of Operation and Maintenance. The Landlord shall determine the amount by which its budgeted cost of operation and maintenance of the Building for the current year are estimated to increase or decrease relative to the maximum amount of costs of operation and maintenance of the Building to be borne by Landlord for the base year as set forth in paragraph 1.07. The term “costs of operation and maintenance” shall be deemed to mean those expenses actually incurred by Landlord with respect to the operation and maintenance of the Building which, in accordance with accepted principles of sound accounting practice as consistently applied to the operation and maintenance of a generally first-class building, are properly chargeable to the operation and maintenance of the Building including, without limitation, utilities, heating, air conditioning, repair and maintenance, (which under generally accepted accounting principles would not be capitalized), cost of janitorial and other services and maintenance contracts therefore, supplies, wages and salaries of employees used in the management (but not any salaries or wages for employees or agents above the grade of on-site building operation or management) of the Building, and payroll taxes (and similar governmental charges) with respect thereto, or alternatively the cost of contracting for the management services with a third party, a Landlord administration fee of fifteen (15%) percent of operating expenses (excluding property taxes), depreciation (on personal property owned by Landlord) or rental of personal property used in the maintenance of the Building, insurance, including fire and extended coverage, public liability and property damage and workmen’s compensation insurance and war risk and earthquake insurance and such other insurance to the extent customarily carried by the owners of first-class office buildings within the limits of Salt Lake Countyinsurance, property taxes as hereinafter defined, and other charges directly and properly related to the operation and maintenance of the Building. Landlord shall exclude from the cost of operation and maintenance any and all expenses relating to any operation, maintenance any and all expenses relating to any operation, maintenance or supplies provided and furnished by any Tenant at Tenant’s own expense, and any expense, otherwise chargeable as part of the cost of operation and maintenance, that solely benefits a specific tenant in the Building. Landlord initial /CM/ Tenant initial /KM/ Notwithstanding anything contained in the Lease, no expenses incurred for the following shall be included in costs of operation and maintenance herein:
(i) Repairs or other work occasioned by fire, windstorm or other casualty (except for the cost of such repairs or other work that relates to a reasonable deductible portion of the insurance policy covering such casualty) or by the exercise of the right of eminent domain:;
(ii) Leasing commissions, accountants’ or attorneys’ fees, costs and disbursements and other expenses incurred in connection with proposals, negotiations, or disputes with tenants or other occupancies or prospective tenants, or associated with the enforcement of any leases, or the defense of Landlord’s title or interest in the Office Building and Real Estate or any part thereof, or accountants’ or attorneys’ fees incurred in connection with any proceedings in respect of taxes;
(iii) Costs (including permit, license and inspection fees) incurred in renovating or otherwise improving or decorating, painting or redecorating space for tenants or other occupants or vacant space;
(iv) Costs incurred by Landlord for any alteration, addition or equipment that is considered a capital improvement or replacement under generally accepted accounting principles;
(v) Depreciation and amortization;
(vi) Costs of a capital nature, including, but not limited to, capital improvements, capital repairs, capital equipment, and capital tools, all as determined in accordance with generally accepted accounting principles;
(vii) Costs of correcting defects (latent or otherwise) which arise within one (1) year after initial construction of the Building except that conditions (not occasioned by construction defects) resulting from ordinary wear and tear shall not be deemed defects.;
(viii) Expenses in connection with services or other benefits of a type that is not provided Tenant in reasonable proportion to the space lease by Tenant but that is provided to another tenant or occupant;
(ix) Costs incurred due to violation by Landlord or any tenant of the terms and conditions of any lease or any laws, statutes, orders, ordinance, or regulation related to any lease;
(x) Costs of financing, refinancing or interest on debt or amortization payments on any mortgages or deeds of trust or any other borrowings;
(xi) Costs incurred to test, survey, clean up, contain, a▇▇▇▇, remove or otherwise remedy Hazardous Substances (as hereinafter defined) or asbestos containing materials; or
(xii) Any other expense that under generally accepted accounting principles and practices consistently applied would not be considered a maintenance or operating expense.
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