Common use of Direct Expense Clause in Contracts

Direct Expense. All direct costs of operation and maintenance as determined by generally accepted accounting principles, which shall include the following costs by way of illustration, but not limitation: real property taxes and assessments; rent taxes, gross receipt taxes (whether assessed against the Landlord or assessed against the Tenant and collected by the Landlord, or both); water and sewer charges; insurance premiums; utilities; janitorial services; labor; costs incurred in the management of the Project, if any; air-conditioning and heating; elevator maintenance; supplies; materials; equipment; tools; and maintenance repair, and upkeep of all parking and common areas. Direct Expenses shall not include, and Tenant shall not be required to pay, any of the following: (a) depreciation on the Building of which the Premises are a part, legal fees, real estate brokers' commissions, advertising costs, or other related expenses incurred in connection with the leasing of the Building of which the Premises are a part; (b) repairs, alterations, additions, improvements or replacements made to rectify or correct any defect in the design, materials or workmanship of the Building; (c) any improvements, alterations or expenditures of a capital nature, except as expressly allowed; (d) damage and repairs attributable to fire or other casualty; (e) damage and repairs covered under any insurance policy carried by Landlord in connection with the building; (f) damage and repairs necessitated by the gross negligence or willful misconduct of Landlord or Landlord's agents, employees, contractors or invitees; (g) executive salaries or salaries of service personnel to the extent that such service personnel perform services other than in connection with the management, operation, repair or maintenance of the Building and its common areas; (h) Landlord's general overhead expenses not related to the Building; (i) payments of principal or interest on any mortgage or other encumbrance; (j) legal fees, accountants fees and other expenses incurred in connection with disputes with tenants or other occupants of the Building or associated with the enforcement of any leases or defense of Landlord's title to or interest in the Building or renovating or otherwise improving, decorating, painting or altering space for tenants or other occupants or vacant space in the Building; (l) cost incurred due to violation by Landlord or any other tenant in the Building of the terms and conditions of any lease; (m) services or installations furnished to any tenant in the Building which are not furnished to Tenant or quantities of such services furnished to any tenant in the Building which are also furnished to Tenant but are furnished to other tenants in an amount materially in excess of that which would represent a fair proportion of such services; (n) the cost of any service provided to Tenant or other occupants of the Building for which Landlord is entitled to be reimbursed; (o) any cost or expense related to the removal, transportation or storage of hazardous building or land on which the Building is located; and (p) any other expense which under generally accepted premises accounting principles and practice, would not be considered a normal maintenance and operating expense. Direct Expenses that vary with occupancy and that are attributable to any part of the term in which less than ninety-five percent (95%) of the rentable area of the Project is occupied by tenants will be adjusted by Landlord to the amount that Landlord reasonably believes such Direct Expenses would have been if ninety-five percent (95 %) of the rentable area of the Project had been so occupied, provided that in no event shall Tenant's additional rent include Direct Expenses not actually incurred by Landlord.

Direct Expense. All direct costs of operation operation, maintenance, repair and maintenance management of the Building (including the amount of any credits which Landlord may grant to particular tenants of the Building in lieu of providing any standard services or paying any standard costs described in this Section 4.1.2 for similar tenants), as determined by in accordance with generally accepted accounting principles, which shall include including the following costs by way of illustration, but not limitation: real property taxes and assessments; rent taxes, gross receipt taxes (whether assessed against the Landlord or assessed against the Tenant and collected by the Landlord, or both); water and sewer charges; insurance premiumscharges of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building or any part thereof; utilitiesutility costs, including, but not limited to, the cost of heat, light, power, steam, gas and waste disposal; the cost of janitorial services; laborthe cost of security and alarm services (including any central station signalling system); window cleaning costs, labor costs; costs and expenses of managing the Building including management fees; air conditioning maintenance costs; elevator maintenance fees and supplies; material costs; equipment costs of equipment other than capital items, current rental and leasing costs of items which would be amortizable capital items if purchased; tool costs; licenses; permits and inspection fees; wages and salaries; employee benefits and payroll taxes; accounting and legal fees; any sales, use or service taxes incurred in the management of the Project, if any; air-conditioning and heating; elevator maintenance; supplies; materials; equipment; tools; and maintenance repair, and upkeep of all parking and common areasconnection therewith. Direct Expenses shall not include, and Tenant shall not be required to pay, any of the following: (a) depreciation on the Building of which the Premises are a part, legal fees, real estate brokers' commissions, advertising costs, include deprecation or other related expenses incurred in connection with the leasing of the Building of which the Premises are a part; (b) repairs, alterations, additions, improvements or replacements made to rectify or correct any defect in the design, materials or workmanship of the Building; (c) any improvements, alterations or expenditures of a capital nature, except as expressly allowed; (d) damage and repairs attributable to fire or other casualty; (e) damage and repairs covered under any insurance policy carried by Landlord in connection with the building; (f) damage and repairs necessitated by the gross negligence or willful misconduct of Landlord or Landlord's agents, employees, contractors or invitees; (g) executive salaries or salaries of service personnel to the extent that such service personnel perform services other than in connection with the management, operation, repair or maintenance of the Building and its common areas; (h) Landlord's general overhead expenses not related to the Building; (i) payments of principal or interest on any mortgage or other encumbrance; (j) legal fees, accountants fees and other expenses incurred in connection with disputes with tenants or other occupants amortization of the Building or associated with the enforcement of any leases or defense of Landlord's title to or interest equipment in the Building except as provided herein, loan principal payments, costs of alterations of tenants' premises, leasing commissions, interest expenses on long-term borrowings, advertising costs or renovating or otherwise improving, decorating, painting or altering space management salaries for tenants or executive personnel other occupants or vacant space in than personnel located at the Building. In addition, Landlord shall be entitled to amortize and include as an additional rental adjustment: (i) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; (lii) cost incurred due fire sprinklers and suppression systems and other life safety systems; and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which were not applicable to violation the Building at the time it was constructed. All such costs shall be amortized over the reasonable life of such improvements in accordance with such reasonable life and amortization schedules as shall be determined by Landlord or any other tenant in accordance with generally accepted accounting principles, with interest on the Building of the terms and conditions of any lease; unamortized amount at one percent (m1%) services or installations furnished to any tenant in the Building which are not furnished to Tenant or quantities of such services furnished to any tenant in the Building which are also furnished to Tenant but are furnished to other tenants in an amount materially in excess of that which would represent a fair proportion the prime lending rate announced from time to time as such by The Northern Trust Company of such services; (n) the cost of any service provided to Tenant or other occupants of the Building for which Landlord is entitled to be reimbursed; (o) any cost or expense related to the removalChicago, transportation or storage of hazardous building or land on which the Building is located; and (p) any other expense which under generally accepted premises accounting principles and practice, would not be considered a normal maintenance and operating expense. Direct Expenses that vary with occupancy and that are attributable to any part of the term in which less than ninety-five percent (95%) of the rentable area of the Project is occupied by tenants will be adjusted by Landlord to the amount that Landlord reasonably believes such Direct Expenses would have been if ninety-five percent (95 %) of the rentable area of the Project had been so occupied, provided that in no event shall Tenant's additional rent include Direct Expenses not actually incurred by LandlordIllinois.