Common use of Direct Operating Costs Clause in Contracts

Direct Operating Costs. Direct operating costs shall include taxes and assessments, janitorial, guard and maintenance services, labor, reasonable managerial expenses, insurance, air conditioning, heating, electricity, water, sewage, payroll expenses, materials and supplies, services, charges and all other direct operating costs of operating and maintaining the Building. Direct operating costs shall not include expenditures for capital improvements, interest expenses or depreciation, nor additional charges imposed under Paragraphs six (6) and seven (7) hereof. Such additional charges shall be computed separately for each TENANT. All expenditures scheduled less often than annually shall be pro rated over the period to which such expenditures are applicable.