Common use of Direct Operating Expenses Clause in Contracts

Direct Operating Expenses. All direct costs of operation and maintenance determined by standard accounting practices which shall include all costs, expenses and disbursements of every kind and nature which Lessor shall pay or become obligated to pay in connection with the management, operation, maintenance, replacement and repair of all buildings, improvements and land comprising the Building and of the personal property, fixtures, machinery, equipment, systems and apparatus located in or used in connection therewith. By way of illustration, Direct Operating Expenses shall include but not be limited to the following: electricity, lamps, fluorescent tubes, ballasts, steam, fuel, utility costs, utility taxes, water (including sewer charges and/or rental), casualty and liability insurance, repairs and cleaning, janitorial supplies, management fees, service contracts with independent contractors, telephone, grounds maintenance, stationary advertising, equipment necessary for the maintenance and operation of the Building, reasonable reserves for operating expenses, salaries, wages, payroll charges and/or taxes, worker's compensation, hospitalization, medical, surgical, and general welfare benefits (including life insurance) and pension payments of employees of Lessor engaged in the operation and maintenance of the Building of which the Demised Premises form a part. ("Direct Operating Expenses" shall not include depreciation on the Building of which the Demised Premises are a part or equipment therein, loan payments, real estate brokers commissions, or capital expenditures for tenant finish expenses for other tenants or capital improvements to said building.)