Exclusions from Operating Expenses Clause Samples
The "Exclusions from Operating Expenses" clause defines specific costs that are not to be included when calculating the operating expenses for a property or business. Typically, this clause lists items such as capital expenditures, landlord's debt service, or costs related to leasing commissions, ensuring that tenants are not charged for these expenses in addition to their rent. By clearly outlining what is excluded, the clause protects tenants from being billed for inappropriate or non-operational costs, thereby ensuring transparency and fairness in expense allocation.
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Exclusions from Operating Expenses. Notwithstanding any term or condition set forth in this Exhibit or the provisions of the Master Lease or Sublease to the contrary, Operating Expenses shall not include any of the following:
(a) Any ground lease rental.
(b) Costs incurred by Landlord with respect to goods and services (including utilities sold and supplied to tenants and occupants of the Building) to the extent that Landlord is entitled to direct reimbursement for such costs other than through the operating expense pass-through provisions of such tenants’ leases or which Landlord provides selectively to one or more, but not all, tenants without reimbursement.
(c) Costs incurred by Landlord for the repair of damage to the Building and/or the Land to the extent that Landlord is reimbursed by insurance or condemnation proceeds or by tenants, warrantors or other third parties.
(d) Costs, including permit, license and inspection costs, incurred with respect to the installation of tenant improvements made for any 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.
(e) Salaries and bonuses of officers, executives and employees of Landlord not employed exclusively at the Building or who are above the level of Building Manager.
(f) Depreciation and amortization of any type except on materials, tools and supplies purchased by Landlord to enable Landlord to supply services Landlord might otherwise contract for with a third party, all as determined in accordance with generally accepted accounting practices, consistently applied, and when depreciation or amortization is permitted or required, the item shall be amortized over its useful life.
(g) Attorneys’ fees and other costs and expenses incurred in connection with negotiations or disputes with present or prospective tenants or other occupants of the Building (including costs incurred due to violations by tenants of the terms and conditions of their leases).
(h) Costs of a capital nature, including, without limitation, capital improvements, capital replacements, capital repairs, capital equipment and capital tools, and any improvements or alterations incurred to comply with any applicable Legal Requirements as set forth in Article 5 of the Master Lease all as determined in accordance with generally accepted accounting practices, consistently applied.
(i) Brokerage commissions, finders’ fees, attorneys’ fees and other costs incurred b...
Exclusions from Operating Expenses. Operating expenses shall not include: (i) depreciation or amortization (except as provided above in Section 5.1); (ii) interest on and amortization of debts including application fees and other costs associated with financing or re-financing (except as provided above in Section 5.1); (iii) Tenant improvements made for any tenants of the Building including those for Landlord or its tenants; (iv) leasing commissions, attorneys' fees, costs and disbursements and other expenses incurred in connection with leasing, renovating, or improving space for tenants or prospective tenants (v) costs associated with the collection of rent under any such lease or defense of Landlord's title to or interests in the Project; (vi) refinancing costs; (vii) the cost of any work or services performed for any occupants of any leased space in the Building (including Tenant), whether at the expense of Landlord or such occupants, to the extent that such work or services is in excess of the work or services which Landlord makes available to tenants generally or is required to furnish to Tenant under this Lease; (viii) damages recoverable by any occupant due to violation by Landlord of any of the terms and conditions of this Lease or any other lease relating to the Building; (ix) capital repairs and replacements (except as provided above in Section 5.1); (x) advertising and promotional expenses; (xi) repairs and other work occasioned by fire or other casualty to the extent Landlord is actually reimbursed or entitled to reimbursements by insurance proceeds; (xii) fines or penalties incurred due to violations by Landlord of governmental laws, regulations, orders and the like; (xiii) expenses for vacant rentable space within the Building, including the cost of utilities, security and renovation; (xiv) all overhead, costs and expenses associated with the operation of Landlord's business, as distinguished from costs and expenses associated with the operation of the Project such as, without limitation, corporate accounting and legal fees, fidelity and office liability insurance premiums, cost and expense of defending or prosecuting litigation not related to the Project, costs and expense of selling, syndicating, financing or mortgaging Landlord's interest in the Project, and cost and expense of collection of rent from other tenants; (xv) any expense associated with the Landlord's latent defect warranty set forth in Section 4.3; and (xvi) any items of expense as to which the Landlord is reimb...
Exclusions from Operating Expenses. Notwithstanding anything to the contrary in Part III, Section 5.2(a), Operating Expenses shall not include the following expenses:
(i) estate, inheritance, transfer, gift, or franchise taxes of Landlord or the Federal or state net income tax imposed on Landlord’s income from all sources;
(ii) costs associated with the operation of the business of the entity which constitutes Landlord, as the same are distinguished from the costs of operation of the Project, including, without limitation, Landlord’s general corporate overhead, accounting and legal expenses, costs of defending any proceedings, lawsuits or arbitration with any mortgagee (except as the actions of Tenant may be at issue), and costs of selling, syndicating, financing, mortgaging or hypothecating any of Landlord’s interest in the Project;
(iii) costs of the initial construction of the Leased Premises and other phases of the Project and initial improvements or alterations to tenant spaces;
(iv) costs, including, without limitation, permit, license and inspection costs, incurred with respect to the installation of tenant or other occupants’ improvements in the Project or incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space intended for the exclusive use of specific tenants or other occupants of the Project;
(v) costs of any items for which Landlord receives reimbursement from insurance proceeds, any tenant or any third person. Insurance proceeds shall offset items that would otherwise constitute Operating Expenses in the year in which the proceeds are received. Any commercially reasonable deductible amount under any insurance policy shall be included in Operating Expenses when paid;
(vi) costs arising from Landlord’s failure to make payments when due and tax penalties incurred as a result of Landlord’s inability or unwillingness to make payments or to file any tax or information returns when due;
(vii) any other duplicative charge, payment of which is provided elsewhere in this Lease;
(viii) the cost of repair to the Property, or any part thereof, to the extent the cost of the repairs is reimbursed by insurance or condemnation proceeds, covered by warranty or otherwise reimbursed by third parties other than as a part of Operating Expenses;
(ix) marketing costs, including leasing commissions, in connection with the negotiation and preparation of letters, deal memos, letters of intent, leases, subleases and/or assignments, space planning costs, and other co...
Exclusions from Operating Expenses. Notwithstanding the above, Operating Expenses shall not include the following:
Exclusions from Operating Expenses. Operating Expenses exclude the following expenditures:
(1) Leasing commissions, attorneys’ fees and other expenses related to leasing tenant space and constructing improvements for the sole benefit of an individual tenant.
(2) Goods and services furnished to an individual tenant of the Building which are above building standard and which are separately reimbursable directly to Landlord in addition to Excess Operating Expenses.
(3) Repairs, replacements and general maintenance paid by insurance proceeds or condemnation proceeds.
(4) Except as provided in Section 4.D(9), depreciation, amortization, interest payments on any encumbrances on the Property and the cost of capital improvements or additions.
(5) Costs of installing any specialty service, such as an observatory, broadcasting facility, luncheon club, or athletic or recreational club.
(6) Expenses for repairs or maintenance related to the Property which have been reimbursed to Landlord pursuant to warranties or service contracts.
(7) Costs (other than maintenance costs) of any art work (such as sculptures or paintings) used to decorate the Building.
(8) Principal payments on indebtedness secured by liens against the Property, or costs of refinancing such indebtedness.
Exclusions from Operating Expenses. Notwithstanding anything contained in the definition of Operating Expenses as set forth in Subsection 4.1(b) of this Lease, Operating Expenses (including Building Operating Expenses) shall not include the following:
i. The costs of repairs to the Building, if and to the extent that any such costs is actually reimbursed by the insurance carried by Landlord or subject to award under any eminent domain proceeding and the costs of restoring the Building in the event of a casualty that is not covered by insurance that Landlord is obligated to carry pursuant to the terms of Article 19 of this Lease;
ii. Depreciation, amortization and interest payments, except as specifically permitted herein or except on materials, tools supplies and vendor-type equipment purchased by Landlord to enable Landlord to supply services Landlord might otherwise contract for with a third party where such depreciation, amortization and interest payments would otherwise have been included in the charge for such third party’s services. In such a circumstance, the inclusion of all depreciation, amortization and interest payments shall be determined pursuant to generally accepted accounting principles, consistently applied, amortized over the reasonably anticipated useful life of the capital item for which such amortization, depreciation or interest allocation was calculated;
iii. Marketing costs, including leasing commissions, attorneys’ fees incurred in connection with the negotiation and preparation of letters, deal memos, letters of intent, leases subleases and/or assignments, space planning costs, and other costs and expenses incurred in connection with lease, sublease and/or assignment negotiations and transactions with present or prospective tenants or other occupants of the Building;
iv. Expenses for services not offered to Tenant or for which Tenant is charged directly, whether or not such services or other benefits are provided to another tenant or occupant of the Building; Encino Terrace / Research Solutions, Inc. / MK / December 29, 2016 ____ ____ ____ ____ Initial Initial Initial Initial
v. Costs incurred due to Landlord’s or any tenant of the Building’s violation, other than Tenant, of the terms and conditions of any lease or rental agreement in the Building or applicable law;
vi. Interest, principal, points and fees on debts or amortization on any mortgage or mortgages or any other debt instrument encumbering the Building or the land thereunder;
vii. Costs associated with ope...
Exclusions from Operating Expenses. Notwithstanding anything to the contrary contained elsewhere herein, Operating Expenses shall not include:
(a) expenses for which the Landlord is reimbursed (either by an insurer, condemnor, tenant or otherwise);
(b) expenses incurred in leasing;
(c) except as allowed under Section 4.02(a)(2)(A)(vi) above, capital improvements and replacements which under generally applied cash basis accounting principles and practices would be classified as capital expenditures;
(d) depreciation of any description on Building, Premises, improvements, machinery, tools, equipment or any other items used in connection with the operation and maintenance of the Building, excluding small tools and small equipment used in routine maintenance;
(e) finance charges for any future capital expenditures;
(f) business and occupation (“B & O”) taxes.
Exclusions from Operating Expenses. Despite any other provision of Subsection 5.2.4, Operating Expenses shall not include: (a) depreciation, interest, and amortization on mortgages or ground lease payments, except as otherwise stated in this Section 5.2, (b) legal fees incurred in negotiating and enforcing tenant leases, (c) real estate brokers' leasing commissions, (d) initial improvements or alterations to tenant spaces, (e) the cost of providing any service directly to and paid directly by any tenant, (f) any costs expressly excluded from Operating Expenses elsewhere in this Lease, (g) costs of any items for which Landlord receives reimbursement from insurance proceeds or a third party. Insurance proceeds shall be excluded from Operating Expenses in the year in which they are received, except that any deductible amount under any insurance policy shall be included within Operating Expenses, (h) costs of capital improvements, except as otherwise stated in this Section 5.2.
Exclusions from Operating Expenses. Operating expenses shall not ---------------------------------- include:
(i) depreciation or amortization (except as provided above in Section 4.1); (ii) interest on and amortization of debts (except as provided above in Section 4.1); (iii) leasehold improvements made for new tenants of the Building; (iv) leasing commissions, attorneys' fees, costs and disbursements and other expenses (including advertising) incurred in connection with leasing, renovating, or improving space for tenants or other occupants or prospective tenants or occupants of the Building; (v) refinancing costs; (vi) the cost of any work or services performed for any occupants of any leased space in the Building (including Tenant), whether at the expense of Landlord or such occupants, to the extent that such work or services is in excess of the work or services which Landlord, at its expense, is required to furnish to Tenant under this Lease; (vii) the cost of any electricity furnished to the Premises or any other leased space in the Building in excess of the electricity to be provided by Landlord under this Lease; (viii) damages recoverable by any occupant due to violation by Landlord of any of the terms and conditions of this Lease or any other lease relating to the Building; (ix) repairs occasioned by fire, windstorm or other casualty, to the extent such repairs are paid for by insurance proceeds; and (x) capital repairs and replacements (except as provided above in Section 4.1).
Exclusions from Operating Expenses. The term "Operating Expenses" shall not include (i) costs paid directly by Tenant; (ii) principal and interest payments on loans secured by deeds of trust recorded against property; (iii) real estate sales or leasing brokerage commissions; or