Definition of Operating Expenses. The term "operating expenses" includes all expenses incurred by Landlord with respect to the maintenance and operation of the Building, including, but not limited to, the following: maintenance, repair and replacement costs; electricity, fuel, water, sewer, gas and other common Building utility charges; equipment used for maintenance and operation of the Building; operational expenses; exterior window washing and janitorial services; trash and snow removal; landscaping and pest control; management fees, wages and benefits payable to employees of Landlord whose duties are directly connected with the operation and maintenance of the Building; all services, supplies, repairs, replacements or other expenses for maintaining and operating the Building or project including parking and common areas; improvements made to the Building which are required under any governmental law or regulation that was not applicable to the Building at the time it was constructed; installation of any device or other equipment which improves the operating efficiency of any system within the Premises and thereby reduces operating expenses; all other expenses which would generally be regarded as operating, repair, replacement and maintenance expenses; all real property taxes and installments of special assessments, including dues and assessments by means of deed restrictions and/or owners' associations which accrue against the Building during the term of this Lease and legal fees incurred in connection with actions to reduce the same; and all insurance premiums Landlord is required to pay or deems necessary to pay, including fire and extended coverage, and rent loss and public liability insurance, with respect to the Building. Notwithstanding the foregoing, operating expenses shall not include any expenditure which must be capitalized for federal income tax purposes, except that operating expenses shall include the amortization of any such capital expenditures (except capital expenditures for improvements made to the Building without the consent of Tenant, or for restoration or repair of damage to the Building caused by casualty) on a straight-line basis over the reasonably estimated useful life, at an amortization rate equal to the rate of Treasury Securities of comparable term, plus two percent (2%). Further, operating expenses shall not include: A. Taxes payable by reason of any "minimum assessment": or similar agreement to the extent exceeding the taxes which otherwise would be payable with respect to the property of which the Premises are a part; or B. Special assessments levied or pending on the date of this Lease or levied for public improvements constructed in connection with the initial construction of the Building or any additional building; or C. Expenses of contesting taxes or the assessed value of the property of which the Premises are a part in excess of the savings achieved in such contest; or D. Management fees exceeding fifteen percent (15%) of other operating expenses except taxes and special assessments; or E. Expenses incurred by Landlord in satisfying its obligations under Section 14.13 hereof.
Appears in 1 contract
Sources: Lease (Fair Isaac & Company Inc)
Definition of Operating Expenses. The term "operating expenses" includes all expenses incurred by Landlord with respect to the maintenance and operation of the BuildingBuilding of which the Premises are a part, including, but not limited to, the following: maintenance, repair and replacement costs; electricity, fuel, water, sewer, gas and other common Building utility charges; signage; equipment used for maintenance and operation of the Building; operational expensessecurity charges; exterior security, window washing and janitorial services; trash and snow removal; landscaping and pest control; management fees, wages and benefits payable to employees of Landlord whose duties are directly connected with the operation and maintenance of the Building; all services, supplies, repairs, replacements or other expenses for maintaining and operating the Building or project including parking and common areas; improvements made to the Building which are required under any governmental law or regulation that was not applicable to the Building at the time it was constructed; installation of any device or other equipment which improves the operating efficiency of any system within the Premises and thereby reduces operating expenses; all other expenses which would generally be regarded as operating, repair, replacement and maintenance expenses; all real property taxes and installments of special assessments, including dues and assessments by means of deed restrictions and/or owners' associations which accrue against the Building during the term of this Lease and legal fees incurred in connection with actions to reduce the same; except that Tenant shall have the right to approve legal fees associated with reducing taxes; and all insurance premiums Landlord is required to pay or deems necessary to pay, including fire and extended coverage, and rent loss and public liability insurance, with respect to the Building. Notwithstanding the foregoing, operating expenses shall not include any expenditure which must the following:
a) The cost of decorating, redecorating, special cleaning, or other services not provided on a regular basis to all tenants of the Building.
b) Any costs associated with the initial interior or exterior landscaping and the purchase, rental or maintenance of sculpture, paintings, or other objects purporting to be capitalized art for federal income tax purposes, except that operating expenses shall include the amortization of any such capital expenditures (except capital expenditures for improvements made to the Building without the consent of Tenant, or for restoration or repair of damage to the Building caused by casualtyand Common Areas.
c) on a straight-line basis over the reasonably estimated useful life, at an amortization rate equal to the rate of Treasury Securities of comparable term, plus two percent (2%). Further, operating expenses shall not include:
A. Taxes payable by reason of any "minimum assessment": or similar agreement Landlord's general overhead except to the extent exceeding the taxes which otherwise would be payable with respect to the property of which the Premises are a part; or
B. Special assessments levied or pending on the date of this Lease or levied for public improvements constructed it is expended in direct connection with the initial management and operation of the Building.
d) Wages, salaries, fees, and fringe benefits paid to administrative or executive personnel or officers or partners of Landlord.
e) Any charge for depreciation or amortization (except as specifically noted herein) of the Building or equipment.
f) All costs relating to activities for the solicitation and execution of leases for space in the Building.
g) All costs for which Tenant or any other tenant in the Building is being charged other than pursuant to similar "operating costs" clauses.
h) Except as provided in section i., the costs of structural repairs and/or replacements including the cost of correcting defects in the construction of the Building or any additional building; or
C. Expenses of contesting taxes or the assessed value of the property of other structures which the Premises are a part of the project and the related equipment and any other costs that are considered to be of a capital nature under generally accepted accounting principles consistently applied, including, but not limited to, capital improvements, capital repairs, capital equipment, capital tools, and other capital items.
i) Any such capital improvements made to reduce operation expenses may be amortized over the longest useful life of improvement on a straight line basis. The amount amortized in any year shall be an amount not to exceed the amount of the net reduction or operating cost savings resulting in such year from the improvements.
j) Costs of initial cleaning of, and rubbish removal from, the building to be performed prior to final completion of construction of the Building or Common Areas.
k) The cost of any repair made by Landlord because of the total or partial destruction of the Building or the condemnation of a portion of the Building.
l) Repairs, alterations, additions, improvements or replacements made to rectify or correct any defect
m) Repairs or replacements covered by warranties or guaranties to the extent of service or payment thereunder.
n) Any insurance premium to the extent that Landlord is entitled to be reimbursed for it by Tenant pursuant to Tenant's Lease or by any tenant of the Building pursuant to a similar lease other than pursuant to causes comparable to this "operating costs" clause and any insurance premium increase caused by rerating of the Building caused by other tenants' uses.
o) The costs of any items for which Landlord is reimbursed by insurance or otherwise compensated by a tenant or another party other than by tenant of the Building pursuant to clauses similar to this "operating costs" clause.
p) Any operating cost representing an amount paid to Landlord or a related corporation, entity or person which is in excess of the savings achieved amount which would be paid in the absence of such contesta relationship.
q) The cost of any work or services performed for or facilities furnished to any tenant of the Building to a greater extent or in a manner more favorable to such tenant than performed or furnished to tenant.
r) Costs, including costs of plans, construction, permit, license and inspection costs, incurred with respect to the installation of tenant improvements made for tenants in the Building or incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space for tenant or other occupants of the Building.
s) The cost of regular and overtime wages and salaries or any other expenses to Landlord in curing its defaults or performing work expressly provided in this Lease to be borne at Landlord's expense.
t) Any costs, fines, or penalties incurred due to violation by the Landlord of any laws or other governmental rule or authority.
u) Damage and repairs necessitated by the negligence or willful misconduct of Landlord or Landlord's employees, contractors or agents.
v) Promotional and advertising expense.
w) Attorney's, accountants and other professionals fees and expenses incurred in connection with: negotiations or disputes with tenants, other occupants, or prospective tenants or other occupants; oraccounting, legal or other professional fees relating to the ownership, construction, sale or any litigation relating to the Building or the Project except as specifically provided in this Lease.
D. Management x) Finance charges, interest and other payments on any mortgages and/or other debt encumbering the Building or Common Areas, or obligation in the nature of a mortgage or other project financing and rental payments on any ground lease or other underlying lease.
y) Rental payments incurred in leasing air conditioning systems, elevators or other equipment ordinarily considered to be of a capital nature, except operating/maintenance equipment not affixed to the Building or Common Areas which is used in providing janitorial or similar services.
z) The costs resulting from Landlord's default or from the default of any other tenant.
aa) The costs for any activity (including but not limited to legal fees) associated. with the removal, correction or clean up of toxic or hazardous waste in the Building, Premises or future expansion areas or the project.
bb) Costs relating to compliance with laws regarding CCFC's and HCFC's.
cc) Any costs associated with modifications made to the Building in order to comply with the requirements of laws including without limitation the Americans with Disabilities Act.
dd) Any property management fee (or similar operating agreement fee) shall be as charged as an operating expense to all other Building tenants, but in no event shall be in excess of 5% of all Base Rent and Additional Rent payable by Tenant to Landlord hereunder and shall include all costs associated with the delivery of such service including, but not limited to, the property management office and all other building personnel except building engineer(s) and janitorial services.
ee) Any charge for Landlord's income tax. excess profit tax, franchise tax, gross receipts, or like tax on Landlord's business or resulting from Tenant's lease with Landlord.
ff) Except on a temporary basis (not to exceed one (1) month) in cases of emergency or except for items as to which Tenant shall specifically agree in advance in writing, the costs of renting or leasing capital items, the cost of which could not be amortized as an operating expense under (i) above but such costs may be included in amortization of capital improvements made to reduce operating expenses to the extent permitted in section i. gg) Auditing fees.
hh) The cost of subscriptions, political donations, professional fees exceeding fifteen (except as specifically provided in the Lease), travel costs, automobile allowance, entertainment and all other dues and donations.
ii) Insurance expense and costs incurred for other than Building Operations (including without limitation rent insurance, Directors and Officers insurance and personal general liability insurance for any employee of Landlord).
jj) Insurance any charges that would result in Landlord collecting in excess of one hundred percent (15100%) of other operating expenses except taxes and special assessments; orall Operating Expenses.
E. Expenses incurred by Landlord kk) No profit or administrative charges shall be included in satisfying its obligations under Section 14.13 hereofOperating Expenses.
Appears in 1 contract
Definition of Operating Expenses. The term "operating expenses" “Operating Expenses” includes all expenses incurred by Landlord with respect to the maintenance and operation of the Building, including, but not limited to, the following: maintenance, repair and replacement costs; electricity, fuel, water, sewer, gas and other common Building utility charges; equipment used for maintenance and operation of the Building; operational expenses; exterior window washing and janitorial services; trash and snow removal; landscaping and pest control; management fees, wages and benefits payable to employees of Landlord whose duties are directly connected with the operation and maintenance of the Building; all services, supplies, repairs, replacements or other expenses for maintaining and operating the Building or project including parking and common areas; improvements made to the Building which are required under any governmental law or regulation that was not applicable to the Building at the time it was constructed; installation of any device or other equipment which improves the operating efficiency of any system within the Premises and thereby reduces operating expensesOperating Expenses; all other expenses which would generally be regarded as operating, repair, replacement and maintenance expenses; all real property taxes and installments of special assessments, including dues and assessments by means of deed restrictions and/or owners' associations owner’s association which accrue against the Building during the term of this Lease and legal fees incurred in connection with actions to reduce the same; and all insurance premiums Landlord is required to pay or deems necessary to pay, including fire and extended coverage, and rent loss and public liability insurance, with respect to the Building. Notwithstanding the foregoing, operating expenses Operating Expenses shall not include any expenditure the following:
i. repairs or other work occasioned by fire, windstorm or other casualty, to the extent that the costs thereof are reimbursed to Landlord by insurers, or would have been reimbursed had the insurance required hereunder been maintained, or by governmental authorities in eminent domain;
ii. leasing commission, attorneys’ fees and other expenses incurred in connection with negotiations or disputes with tenants, or prospective tenants of the Building;
iii. costs incurred in renovating or otherwise improving or decorating or redecorating space for tenants in the Building or other space leased or held for lease in the Building;
iv. Landlord’s costs of utilities, janitorial and other services sold to tenants for which Landlord is entitled to be reimbursed by tenants;
v. Depreciation and amortization;
vi. Costs which under generally accepted accounting principles, consistently applied, must be capitalized for federal income tax purposescapitalized, except that operating expenses and such costs shall include the amortization of any such capital expenditures (except capital expenditures for improvements made to the Building without the consent of Tenant, or for restoration or repair of damage to the Building caused by casualty) on a straight-line basis be amortized over the reasonably estimated there useful life, not to exceed fifteen (15) years, at an 10% interest;
vii. Interest on debt or amortization rate equal payments on any mortgage or mortgages, and rental under any ground or underlying lease or leases;
viii. The cost of changes to the rate of Treasury Securities of comparable termBuilding, plus two percent (2%). Furtherparking structure, operating expenses shall not include:
A. Taxes payable by reason of or the appurtenances in compliance with any "minimum assessment": laws, statutes, ordinances, rules or similar agreement directives enacted prior to the extent exceeding the taxes which otherwise would be payable with respect to the property of which the Premises are a partCommencement Date; orand
B. Special assessments levied ix. Any charges for ground leases or pending on the date of this Lease or levied for public improvements constructed in connection with the initial construction of the Building other underlying leases, easements or any additional building; or
C. Expenses of contesting taxes other similar or the assessed value of the property of which the Premises are a part in excess of the savings achieved in such contest; or
D. Management dissimilar use fees exceeding fifteen percent (15%) of or other operating expenses except taxes and special assessments; or
E. Expenses incurred by Landlord in satisfying its obligations under Section 14.13 hereofcosts.
Appears in 1 contract
Definition of Operating Expenses. The term "operating expensesOperating Expenses" includes shall include all reasonable and necessary expenses incurred by Landlord Lessor with respect to the maintenance and operation of the BuildingBuilding of which the Leased Premises are a part, including, but not limited to, the following: maintenance, repair and replacement costs; electricity, fuel, water, sewer, gas and other common Building utility charges; equipment used for maintenance and operation of the Building; operational expenses; exterior security, window washing and janitorial services; trash and snow removal; landscaping and pest control; management fees, wages and benefits payable to employees of Landlord Lessor or Lessor's property manager whose duties are directly connected with the operation operating and maintenance of the Building; all services, supplies, repairs, replacements or other expenses for maintaining and operating the Building or project the Project including parking and common areas; improvements the cost, including interest, amortized over its useful life, of any capital improvement or structural repair or replacement made to the Building by Lessor after the date of this Lease which are is required under any law (or interpretation thereof), ordinance, rules, regulations or orders of any governmental law or regulation that was not applicable to quasi-governmental authority having jurisdiction over the Building at that is enacted after the time it was constructedCommencement Date; the cost, including interest, amortized over its useful life, of installation of any device or other equipment which improves the operating efficiency of any system within the Premises Building and thereby reduces operating expenses; all other expenses which would generally be regarded as operating, repair, replacement and maintenance expensesOperating Expenses but only to the extent of the reduction in each year during the Term; all real property taxes and installments of special assessments, including dues and assessments by means of deed restrictions and/or owners' associations which accrue against the Building of which the Leased Premises are a part during the term of this Lease and legal fees incurred in connection with actions to reduce the sameLease; and all insurance premiums Landlord which Lessor is required to pay or deems necessary to pay, including fire and extended coverage, and rent loss and public liability insurance, with respect to the Building. Notwithstanding the foregoing, operating expenses The term Operating Expenses shall not include the following: repairs, restoration or other work occasioned by fire, wind, the elements or other casualty; income and franchise taxes of Lessor; expenses incurred in leasing to or procuring of lessees, leasing commissions, advertising expenses and expenses for the renovating of space for new lessees; interest or principal payments on any expenditure which must be capitalized for federal income tax purposesmortgage or other indebtedness of Lessor; compensation paid to any employee of Lessor or Lessor's property manager above the grade of property manager; any depreciation allowance or expense (a) Costs of decorating, except that operating expenses shall include the amortization of any such capital expenditures (except capital expenditures for improvements made to the Building without the consent of Tenantredecorating, special cleaning, or for restoration or repair of damage to the Building caused by casualty) other services not provided on a straight-line regular basis over to Lessees of the reasonably estimated useful lifeBuilding; (b) Wages, salaries, fees, and fringe benefits paid to administrative or executive personnel or officers or partner of Lessor unless employed at an amortization rate equal to competitive rates as independent contractors; (c) Any charge for depreciation of the rate building or equipment and any interest or other financing charge; (d) Any charge of Treasury Securities of comparable termLessor's income taxes, plus two percent (2%). Furtherexcess profit taxes, operating expenses shall not include:
A. Taxes payable by reason of any "minimum assessment": franchise taxes, or similar agreement to the extent exceeding the taxes which otherwise would be payable with respect to the property of which the Premises are a part; or
B. Special assessments levied or pending on the date of this Lease or levied for public improvements constructed in connection with the initial construction of the Building or any additional building; or
C. Expenses of contesting taxes or the assessed value of the property of which the Premises are a part in excess of the savings achieved in such contest; or
D. Management fees exceeding fifteen percent (15%) of other operating expenses except taxes and special assessments; or
E. Expenses incurred by Landlord in satisfying its obligations under Section 14.13 hereof.Lessor's business;
Appears in 1 contract
Definition of Operating Expenses. The term "operating expenses" includes all expenses incurred by Landlord with respect to the maintenance and operation of the Building, including, but not limited to, the following: maintenance, repair and replacement costs; electricity, fuel, water, sewer, gas and other common Building utility charges; equipment used for maintenance and operation of the Building; operational expenses; exterior window washing and janitorial services; trash and snow removal; landscaping and pest control; management fees, wages and benefits payable to employees of Landlord whose duties are directly connected with the operation and maintenance of the Building; all services, supplies, repairs, replacements or other expenses for maintaining and operating the Building or project including parking and common areas; improvements made to the Building which are required under any governmental law or regulation that was not applicable to the Building at the time it was constructed; installation of any device or other equipment which improves the operating efficiency of any system within the Premises and thereby there by reduces operating expensesexpense; all other expenses expense which would generally be regarded as operating, repair, replacement and maintenance expenses; all real property taxes and installments of special assessments, including dues and assessments by means of deed restrictions and/or owners' associations which accrue against the Building during the term of this Lease and legal fees incurred in connection with actions to reduce the same; , and all insurance premiums Landlord is required to pay or deems necessary to pay, including fire and extended coverage, and rent loss and public liability insurance, with respect to the Building. Notwithstanding the foregoing, operating expenses shall not include any expenditure which must be capitalized for federal income tax purposes, except that operating expenses shall include the amortization of any such capital expenditures (except capital expenditures for improvements made to the Building without the consent of Tenant, or for restoration or repair of damage to the Building caused by casualty) on a straight-line basis over the reasonably estimated useful life, at an amortization rate equal to the rate of Treasury Securities of comparable term, plus two percent (2%). Further, operating expenses shall not include:
A. Taxes payable by reason of any "minimum assessment": or similar agreement to the extent exceeding the taxes which otherwise would be payable with respect to the property of which the Premises are a part; or
B. Special assessments levied or pending on the date of this Lease or levied for public improvements constructed in connection with the initial construction of the Building or any additional building; or
C. Expenses of contesting taxes or the assessed value of the property of which the Premises are a part in excess of the savings achieved in such contest; or
D. Operating expenses including taxes and installments of special assessments, insurance premiums and maintenance expenses attributable to the unimproved portion of the property of which the Premises are a part after the earlier of: (i) the completion of construction of a second building thereon by Landlord and reduction of Tenant's proportionate share pursuant to the last sentence of Section 2.2 above (which shall be determined by reference to assessors worksheets, insurance carrier rate calculations and other available data); or (ii) the termination or expiration of the Holding Period as described in Section 14.13 hereof;
E. Management fees exceeding fifteen percent (15%) of other operating expenses except taxes and special assessments; or
E. F. Expenses incurred by Landlord in satisfying its obligations under Section 14.13 14.15 hereof.
Appears in 1 contract
Sources: Lease (Fair Isaac & Company Inc)
Definition of Operating Expenses. The term "operating expenses" includes all expenses incurred by Landlord Lessor with respect to the maintenance and operation of the Buildingbuilding of which the leased premises are a part, including, but not limited to, the following: maintenance, repair and replacement costs; electricity: security, fuel, water, sewer, gas and other common Building utility charges; equipment used for maintenance and operation of the Building; operational expenses; exterior window washing and janitorial services; trash and snow removal; landscaping and pest control; management fees, wages and benefits payable to employees of Landlord Lessor whose duties are directly connected with the operation and maintenance of the Buildingbuilding; all services, utilities, supplies, repairs, replacements or other expenses for maintaining and operating the Building or project including common parking and common plaza areas; improvements the cost, including interest, amortized over its useful life, of any capital improvement made to the Building building by Lessor after the date of this Lease which are is required under any governmental law or regulation that was not applicable to the Building building at the time it was constructed; the cost including interest, amortized over its useful life, of installation of any device or other equipment which improves the operating efficiency of any system within the Premises leased premises and thereby reduces operating expenses; all other expenses which would generally be regarded as operating, repair, replacement operating and maintenance expensesexpenses which would reasonably be amortized over period not to exceed five years; all real property taxes and installments of special assessments, including dues and assessments by means of deed restrictions and/or owners' owner's associations which accrue against the Building building of which the leased premises are a part during the term of this Lease and legal fees incurred in connection with actions to reduce the sameits Lease; and all insurance premiums Landlord Lessor is required to pay or deems necessary to pay, including fire and extended coverage, and rent loss and public liability insurance, with respect to the Buildingbuilding. The term operating expenses does not include the following; repairs, restoration, or other work occasioned by fire, wind, the elements or other casualty; income and franchise taxes of Lessor, expenses incurred in leasing to or procuring of lessees, leasing commissions, advertising expenses and expenses for the renovating of space for new lessees; interest or principal payments on any mortgage or other indebtedness of Lessor; compensation paid to any employee of Lessor above the grade of property manager; any depreciation allowance or expense; or operating expense which are the responsibility of Lessee. Notwithstanding the foregoing, operating expenses shall not include any expenditure which must be capitalized for federal income tax purposes, except Lessor and Lessee agree that operating expenses shall include Lessee's pro rata share for the amortization cost of any such capital expenditures (except capital expenditures for improvements made replacing the roof, but shall not include costs associated with major repairs to the Building without the consent of Tenantbuilding structural integrity, or for restoration or repair of damage to the Building caused by casualty) on a straight-line basis over the reasonably estimated useful life, at an amortization rate equal to the rate of Treasury Securities of comparable term, plus two percent (2%). Further, operating expenses shall not include:
A. Taxes payable by reason of any "minimum assessment": or similar agreement to the extent exceeding the taxes which otherwise would be payable with respect to the property of which the Premises are a part; or
B. Special assessments levied or pending on the date of this Lease or levied for public improvements constructed in connection with the initial construction of the Building or any additional building; or
C. Expenses of contesting taxes or the assessed value of the property of which the Premises are a part in excess of the savings achieved in such contest; or
D. Management fees exceeding fifteen percent (15%) of other operating expenses except taxes and special assessments; or
E. Expenses incurred by Landlord in satisfying its obligations under Section 14.13 hereofmaintenance excluded.
Appears in 1 contract
Definition of Operating Expenses. The term "operating expenses" includes all expenses incurred by Landlord with respect to the maintenance and operation of the Building, including, but not limited to, the following: maintenance, repair and replacement costs; electricity, fuel, water, sewer, gas and other common Building utility charges; equipment used for maintenance and operation of the Building; operational expenses; exterior window washing and janitorial services; trash and snow removal; landscaping and pest control; management fees, wages and benefits payable to employees of Landlord whose duties are directly connected with the operation and maintenance of the Building; all services, supplies, repairs, replacements or other expenses for maintaining and operating the Building or project including parking and common areas; improvements made to the Building which are required under any governmental law or regulation that was not applicable to the Building at the time it was constructed; installation of any device or other equipment which improves the operating efficiency of any system within the Premises and thereby reduces operating expenses; all other expenses which would generally be regarded as operating, repair, replacement and maintenance expenses; all real property taxes and installments of special assessments, including dues and assessments by means of deed restrictions and/or owners' associations which accrue against the Building during the term of this Lease and legal fees incurred in connection with actions to reduce the same; and all insurance premiums Landlord is required to pay or deems necessary to pay, including fire and extended coverage, and rent loss and public liability insurance, with respect to the Building. Notwithstanding the foregoing, operating expenses shall not include any expenditure which must be capitalized for federal income tax purposes, except that operating expenses shall include the amortization of any such capital expenditures (except capital expenditures for improvements made to the Building without the consent of Tenant, or for restoration or repair of damage to the Building caused by casualty) on a straight-line basis over the reasonably estimated useful lifeLife, at an amortization rate equal to the rate of Treasury Securities of comparable term, plus two percent (2%). Further, operating expenses shall not include:
A. Taxes payable by reason of any "minimum assessment": or similar agreement to the extent exceeding the taxes which otherwise would be payable with respect to the property of which the Premises are a part; or
B. Special assessments levied or pending on the date of this Lease or levied for public improvements constructed in connection with the initial construction of the Building or any additional building; or
C. Expenses of contesting taxes or the assessed value of the property of which the Premises are a part in excess of the savings achieved in such contest; or
D. Management fees exceeding fifteen percent (15%) of other operating expenses except taxes and special assessments; or
E. Expenses incurred by Landlord in satisfying its obligations under Section 14.13 hereof.
Appears in 1 contract
Sources: Lease (Fair Isaac & Company Inc)
Definition of Operating Expenses. The term "operating expenses" includes all expenses incurred by Landlord with respect to the maintenance and operation of the BuildingBuilding of which the Premises are a part, including, but not limited to, the following: maintenance, repair and replacement costs; electricity, fuel, water, sewer, gas and other common Building utility charges; signage; equipment used for maintenance and operation of the Building; operational expensessecurity charges; exterior security, window washing and janitorial services; trash and snow removal; landscaping and pest control; management fees, wages and benefits payable to employees of Landlord whose duties are directly connected with the operation and maintenance of the Building; all services, supplies, repairs, replacements or other expenses for maintaining and operating the Building or project including parking and common areas; improvements made to the Building which are required under any governmental law or regulation that was not applicable to the Building at the time it was constructed; installation of any device or other equipment which improves the operating efficiency of any system within the Premises and thereby reduces operating expenses; all other expenses which would generally be regarded as operating, repair, replacement and maintenance expenses; all real property taxes and installments of special assessments, including dues and assessments by means of deed restrictions and/or owners' associations which accrue against the Building during the term of this Lease and legal fees incurred in connection with actions to reduce the samesame except that Tenant shall have the right to approve legal fees associated with reducing taxes; and all insurance premiums Landlord is required to pay or deems necessary to pay, including fire and extended coverage, and rent loss and public liability insurance, with respect to the Building. Notwithstanding the foregoing, operating expenses shall not include any expenditure which must the following:
a) The cost of decorating, redecorating, special cleaning, or other services not provided on a regular basis to all tenants of the Building.
b) Any costs associated with the initial interior or exterior landscaping and the purchase, rental or maintenance of sculpture, paintings, or other objects purporting to be capitalized art for federal income tax purposes, except that operating expenses shall include the amortization of any such capital expenditures (except capital expenditures for improvements made to the Building without the consent of Tenant, or for restoration or repair of damage to the Building caused by casualtyand Common Areas.
c) on a straight-line basis over the reasonably estimated useful life, at an amortization rate equal to the rate of Treasury Securities of comparable term, plus two percent (2%). Further, operating expenses shall not include:
A. Taxes payable by reason of any "minimum assessment": or similar agreement Landlord's general overhead except to the extent exceeding the taxes which otherwise would be payable with respect to the property of which the Premises are a part; or
B. Special assessments levied or pending on the date of this Lease or levied for public improvements constructed it is expended in direct connection with the initial management and operation of the Building.
d) Wages, salaries, fees, and fringe benefits paid to administrative or executive personnel or officers or partners of Landlord.
e) Any charge for depreciation or amortization (except as specifically noted herein) of the Building or equipment.
f) All costs relating to activities for the solicitation and execution of leases for space in the Building.
g) All costs for which Tenant or any other tenant in the Building is being charged other than pursuant to similar "operating costs" clauses.
h) Except as provided in section i., the cost of structural repairs and/or replacements including the cost of correcting defects in the construction of the Building or any additional building; or
C. Expenses of contesting taxes or the assessed value of the property of other structures which the Premises are a part of the project and the related equipment and any other costs that are considered to be of a capital nature under generally accepted accounting principles consistently applied, including, but not limited to, capital improvements, capital repairs, capital equipment, capital tools, and other capital items.
i) Any such capital improvements made to reduce operating expenses may be amortized over the longest useful life of improvement on a straight line basis. The amount amortized in any year shall be an amount not to exceed the amount of the net reduction or operating cost savings resulting in such year from the improvements.
j) Costs of initial cleaning of, and rubbish removal from, the Building to be performed prior to final completion of construction of the Building or Common Areas.
k) The cost of any repair made by Landlord because of the total or partial destruction of the Building or the condemnation of a portion of the Building.
l) Repairs, alterations, additions, improvements or replacements made to rectify or correct any defect in the design, materials or workmanship of the Building or Common Areas.
m) Repairs or replacements covered by warranties or guaranties to the extent of service or payment thereunder.
n) Any insurance premium to the extent that Landlord is entitled to be reimbursed for it by Tenant pursuant to Tenant's Lease or by any tenant of the Building pursuant to a similar lease other than pursuant to causes comparable to this "operating costs" clause and any insurance premium increase caused by re-rating of the Building caused by other tenants' uses.
o) The cost of any items for which Landlord is reimbursed by insurance or otherwise compensated by a tenant or another party other than by tenants of the Building pursuant to clauses similar to this "operating costs" clause.
p) Any operating cost representing an amount paid to Landlord or a related corporation, entity or person which is in excess of the savings achieved amount which would be paid in the absence of such contesta relationship.
q) The cost of any work or services performed for or facilities furnished to any tenant of the Building to a greater extent or in a manner more favorable to such tenant than performed or furnished to tenant.
r) Costs, including costs of plans, construction, permit, license and inspection costs, incurred with respect to the installation of tenant improvements made for tenants in the Building or incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space for tenants or other occupants of the Building.
s) The cost of regular and overtime wages and salaries or any other expenses to Landlord in curing its defaults or performing work expressly provided in this Lease to be borne at Landlord's expense.
t) Any costs, fines, or penalties incurred due to violation by the Landlord of any law or other governmental rule or authority.
u) Damage and repairs necessitated by the negligence or willful misconduct of Landlord or Landlord's employees, contractors or agents.
v) Promotional and advertising expense.
w) Attorney's, accountants and other professionals fees and expenses incurred in connection with: negotiations or disputes with tenants, other occupants, or prospective tenants or other occupants; oraccounting, legal or other professional fees relating to the ownership, construction, sale or any litigation relating to the Building or the Project except as specifically provided in this Lease.
D. Management x) Finance charges, interest and other payments on any mortgages and/or other debt encumbering the Building or Common Areas, or obligation in the nature of a mortgage or other project financing and rental payments on any ground lease or other underlying lease.
y) Rental payments incurred in leasing air conditioning systems, elevators or other equipment ordinarily considered to be of a capital nature, except operating/maintenance equipment not affixed to the Building or Common Areas which is used in providing janitorial or similar services.
z) The costs resulting from Landlord's default or from the default of any other tenant.
aa) The costs for any activity (including but not limited to legal fees) associated with the removal, correction or clean up of toxic or hazardous waste in the Building, Premises or future expansion areas or the project.
bb) Costs relating to compliance with laws regarding CFC's and HCFC's.
cc) Any costs associated with modifications made to the Building in order to comply with the requirements of laws including without limitation the Americans with Disabilities Act.
dd) Any property management fee (or similar operating agreement fee) shall be as charged as an operating expense to all other Building tenants, but in no event shall be in excess of 5% of all Base Rent and Additional Rent payable by Tenant to Landlord hereunder and shall include all costs associated with the delivery of such service including, but not limited to, the property management office and all other building personnel except certified building engineer(s) and janitorial services.
ee) Any charge for Landlord's income tax, excess profit tax, franchise tax, gross receipts, or like tax on Landlord's business or resulting from Tenant's lease with Landlord.
ff) Except on a temporary basis (not to exceed one (1) month) in cases of emergency or except for items as to which Tenant shall specifically agree in advance in writing, the costs of renting or leasing capital items, the cost of which could not be amortized as an operating expense under (i) above but such costs may be included in amortization of capital improvements made to reduce operating expenses to the extent permitted in section i. gg) Auditing fees.
hh) The cost of subscriptions, political donations, professional fees exceeding fifteen (except as specifically provided in the Lease), travel costs, automobile allowances, entertainment and all other dues and donations.
ii) Insurance expense and costs incurred for other than Building Operations (including without limitation rent insurance, Directors and Officers insurance and personal general liability insurance for any employee of Landlord).
jj) Insurance any charges that would result in Landlord collecting in excess of one hundred percent (15100%) of other operating expenses except taxes and special assessments; orall Operating Expenses.
E. Expenses incurred by Landlord kk) No profit or administrative charges shall be included in satisfying its obligations under Section 14.13 hereofOperating Expenses.
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