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 operating the entity which constitutes Landlord, as the same are distinguished from the costs of operation of the Building, including partnership accounting and legal matters, costs of defending any lawsuits with any mortgagee (except as the actions of Tenant may be in issue), costs of selling, syndicating, financing, mortgaging or hypothecating any of Landlord’s interest in the Building, costs (including attorneys’ fees and costs of settlement judgments and payments in lieu thereof) arising from claims, disputes or potential disputes in connection with potential or actual claims, litigation or arbitration pertaining to Landlord’s ownership of the Building; viii. Leasing advertising and promotional expenditures, and costs of leasing signs in or on the Building identifying the owner of the Building, or other tenants signs; ix. Electric, gas or other power costs for which (and only to the extent) Landlord has been directly reimbursed by another tenant or occupant of the Building, or for which any tenant directly contracts with the local public service company; x. Costs, including attorneys’ fees and settlement judgments and/or payments in lieu thereof, arising from actual or potential claims, disputes, litigation or arbitration pertaining to Landlord and/or the Building; xi. Costs incurred with respect to the installation of Tenant’s or other occupant’s improvements or incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space for Tenant or other occupants of the Building; xii. Tax penalties and interest incurred as a result of Landlord’s negligent or willful failure to make payments and/or to file any income tax or informational return(s) when due, unless such non-payment is due to Tenant’s nonpayment of rent; xiii. Any charitable or political contributions; xiv. The purchase or rental price of any sculpture, paintings or other object of art (except for costs associated with any common area fountains), whether or not installed in, on or upon the Building; xv. Costs of repairs which would have been covered by casualty insurance but for Landlord’s failure to maintain casualty insurance to cover the replacement value of the Building as required by this Lease; xvi. Capital expenditures not otherwise permitted hereunder; xvii. The assessment or billing of operating expenses that results in Landlord being reimbursed more than one hundred percent (100%) of the total expenses for the calendar year in question; xviii. Any compensation paid or expenses reimbursed to clerks, attendants or other persons working in any commercial concession(s) operated by Landlord, and any services provided, taxes attributable to and costs incurred in connection with the operation of any retail or restaurant operations in the Building; xix. The costs arising out of Landlord’s abatement, mitigation, remediation and/or encapsulation of any Hazardous Materials when the same are located in, on or about the Building and/or the Real Property prior to the Commencement Date and was of such a nature that a federal, State or municipal governmental authority, if it had then had knowledge of the presence of such Hazardous Materials, in the state, and under the conditions that it then existed in the Building or on the Real Property, would have then required the removal of such Hazardous Material or other remedial or containment action with respect thereto; and costs incurred to remove, remedy, contain, or treat Hazardous Material, which Hazardous Material is brought into the Building or onto the Real Property after the date hereof by Landlord or any other tenant of the Real Property and is of such a nature, at that time, that a federal, State or municipal governmental authority, if it had then had knowledge of the presence of such Hazardous Material, in the state, and under the conditions, that it then exists in the Building or on the Real Property, would have then required the removal of such Hazardous Material or other remedial or containment action with respect thereto; Encino Terrace / Research Solutions, Inc. / MK / December 29, 2016 ____ ____ ____ ____ Initial Initial Initial Initial xx. Payments by Landlord to affiliates of Landlord to the extent the same exceed the expenses which would be paid to qualified unaffiliated third parties on an arm’s-length, competitive basis providing goods or services of equal or better quality than the subject affiliates; xxi. Any bad debt loss, rent loss or reserves for any bad debts, or rent loss; or xxii. Costs incurred as a result of Landlord’s violation of any applicable law and the remediation of such violations, including, without limitation, the Americans with Disabilities Act of 1990 existing as of the Commencement Date of this Lease.
Appears in 1 contract
Exclusions from Operating Expenses. (a) Notwithstanding anything contained to the contrary in the definition of Operating Expenses as and Real Property Taxes set forth out in Subsection 4.1(b) of this the Lease, Operating Expenses (including Building Operating Expenses) and Real Property Taxes shall not include the following, except to the extent specifically permitted by a specific exception to the following:
i. The costs (i) Any ground lease rental;
(ii) Rentals for items (except when needed in connection with normal repairs and maintenance of repairs permanent systems) which if purchased, rather than rented, would constitute a Capital Expenditure which is specifically excluded in Paragraph 2.3 of the Lease (excluding, however, equipment not affixed to the Building which is used in providing janitorial or similar services);
(iii) Costs incurred by Lessor for the repair of damage to the Building, if and to the extent that any such costs Lessor is actually reimbursed by insurance proceeds;
(iv) Costs, including permit, license and inspection costs, incurred with respect to the insurance carried by Landlord installation of tenants’ or subject to award under any eminent domain proceeding and the costs of restoring other occupants’ improvements in the Building or incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space for tenants or other occupants of 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 LeaseBuilding;
ii. (v) Depreciation, amortization and interest payments, except as specifically permitted provided herein or and except on materials, tools tools, supplies and vendor-type equipment purchased by Landlord Lessor to enable Landlord Lessor to supply services Landlord Lessor 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.
(vi) Marketing costs including, the inclusion of all depreciationwithout limitation, 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 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. (vii) Expenses for services not offered to Tenant or for which Tenant is charged directly, whether or not such in connection with services or other benefits which are not offered to Lessee or for which Lessee is charged for directly but which are provided to another tenant or occupant of the Building; Encino Terrace / Research Solutions, Inc. / MK / December 29, 2016 ____ ____ ____ ____ Initial Initial Initial Initial;
v. (viii) Costs incurred by Lessor due to Landlord’s the violation by Lessor or any tenant of the Building’s violation, other than Tenant, of the terms and conditions of any lease or rental agreement of space in the Building; Exclusions from Operating Expenses, continued.
(ix) Overhead and profit increment paid to Lessor or to subsidiaries or affiliates of Lessor for goods and/or services in or to the Building or applicable lawto the extent the same exceeds the costs of such goods and/or services rendered by unaffiliated third parties on a competitive basis;
vi. (x) 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 thereunderProject;
vii. (xi) Lessor’s general corporate overhead and general and administrative expenses;
(xii) Advertising and promotional expenditures, and costs of signs in or on the Building identifying the owner of the Building or other tenants’ signs;
(xiii) Costs incurred in connection with upgrading the Building to comply with disability, life, fire and safety codes, ordinances, statutes, or other laws in effect prior to the Commencement Date, including, without limitation, the Americans with Disabilities Act, including penalties or damages incurred to such non-compliance;
(xiv) Tax penalties incurred as a result of Lessor’s negligence, inability or unwillingness to make payments and/or file any tax or information returns when due:
(xv) Costs for which Lessor has been compensated by a management fee, and any management fees in excess of those management fees which are normally and customarily charged by comparable landlords of Comparable Buildings;
(xvi) Costs arising from the negligence or fault of other tenants or Lessor or its agents, or any vendors, contractors, or providers or materials or services selected, hired or engaged by Lessor or its agents;
(xvii) Notwithstanding any contrary provisions of the Lease, including, without limitation, any provision relating to capital expenditures, any and all costs arising from the presence of hazardous materials or substances in or about the Premises, the Building or the Project including, without limitation, hazardous substances in the ground water or soil, not placed in the Premises, the Building or the Project by Lessee;
(xviii) Costs arising from Lessor’s charitable or political contributions;
(xix) Costs arising from latent defects in the base, shell or core of the Building or improvements installed by Lessor or repair thereof;
(xx) Costs for sculpture, paintings or other objects of art;
(xxi) Costs (including in connection therewith all attorneys’ fees and costs of settlement judgments and payments in lieu thereof) arising from claims, disputes or potential disputes in connection with potential or actual claims litigation or arbitrations pertaining to Lessor and/or the Building and/or the Project;
(xxii) Costs associated with operating the operation of the business of the partnership or entity which constitutes Landlord, Lessor as the same are distinguished from the costs of operation of the Building, including partnership accounting and legal matters, costs of defending any lawsuits with any mortgagee (except as the actions action of Tenant Lessee may be in issue), costs of selling, syndicating, financing, mortgaging or hypothecating any of LandlordLessor’s interest in the Building, costs of any disputes between Lessor and its employees (including attorneys’ fees and costs of settlement judgments and payments if any) not engaged in lieu thereof) arising from claimsBuilding operation, disputes of Lessor with Building management, or potential disputes outside fees paid in connection with potential or actual claims, litigation or arbitration pertaining to Landlord’s ownership of the Buildingdisputes with other tenants;
viii. Leasing (xxiii) Any “finders fees”, brokerage commissions, job placement costs or job advertising and promotional expenditurescost, and costs of leasing signs in or on the Building identifying the owner of the Building, or other tenants signs;
ix. Electric, gas or other power costs for which (and only to the extent) Landlord has been directly reimbursed by another tenant or occupant of the Building, or for which any tenant directly contracts with the local public service company;
x. Costs, including attorneys’ fees and settlement judgments and/or payments in lieu thereof, arising from actual or potential claims, disputes, litigation or arbitration pertaining to Landlord and/or the Building;
xi. Costs incurred than with respect to a receptionist or secretary in the installation Building office, once per year;
(xxiv) Any “above-standard” cleaning, including, but not limited to construction cleanup or special cleanings associated with parties/events and specific tenant requirements in excess of Tenant’s service provided to Lessee, including related trash collection, removal, hauling and dumping;
(xxv) The cost of any magazine, newspaper, trade or other occupant’s improvements subscriptions;
(xxvi) The cost of any training or incurred incentive programs, other than for tenant life safety information services;
(xxvii) The cost of any “tenant relations” parties, events or promotion not consented to by an authorized representative of Lessee in renovating or otherwise improving, decorating, painting or redecorating vacant space for Tenant or other occupants writing;
(xxviii) “In-house” legal and/or accounting fees in excess of the Building;management fees.
xii. Tax penalties and interest incurred as a result of Landlord’s negligent (b) In the event any facilities, services or willful failure to make payments and/or to file any income tax or informational return(s) when due, unless such non-payment is due to Tenant’s nonpayment of rent;
xiii. Any charitable or political contributions;
xiv. The purchase or rental price of any sculpture, paintings or other object of art (except for costs associated with any common area fountains), whether or not installed in, on or upon the Building;
xv. Costs of repairs which would have been covered by casualty insurance but for Landlord’s failure to maintain casualty insurance to cover the replacement value of the Building as required by this Lease;
xvi. Capital expenditures not otherwise permitted hereunder;
xvii. The assessment or billing of operating expenses that results in Landlord being reimbursed more than one hundred percent (100%) of the total expenses for the calendar year in question;
xviii. Any compensation paid or expenses reimbursed to clerks, attendants or other persons working in any commercial concession(s) operated by Landlord, and any services provided, taxes attributable to and costs incurred utilities used in connection with the operation of any retail Building are provided from another building owned or restaurant operations in operating by Lessor or vice versa, the Building;
xix. The costs arising out of Landlord’s abatement, mitigation, remediation and/or encapsulation of any Hazardous Materials when the same are located in, on or about the Building and/or the Real Property prior to the Commencement Date and was of such a nature that a federal, State or municipal governmental authority, if it had then had knowledge of the presence of such Hazardous Materials, in the state, and under the conditions that it then existed in the Building or on the Real Property, would have then required the removal of such Hazardous Material or other remedial or containment action with respect thereto; and costs incurred by Lessor in connection therewith shall be allocated to remove, remedy, contain, or treat Hazardous Material, which Hazardous Material is brought into the Building or onto the Real Property after the date hereof Operating Expenses by Landlord or any other tenant of the Real Property and is of such Lessor on a nature, at that time, that a federal, State or municipal governmental authority, if it had then had knowledge of the presence of such Hazardous Material, in the state, and under the conditions, that it then exists in the Building or on the Real Property, would have then required the removal of such Hazardous Material or other remedial or containment action with respect thereto; Encino Terrace / Research Solutions, Inc. / MK / December 29, 2016 ____ ____ ____ ____ Initial Initial Initial Initial
xx. Payments by Landlord to affiliates of Landlord to the extent the same exceed the expenses which would be paid to qualified unaffiliated third parties on an arm’s-length, competitive basis providing goods or services of equal or better quality than the subject affiliates;
xxi. Any bad debt loss, rent loss or reserves for any bad debts, or rent loss; or
xxii. Costs incurred as a result of Landlord’s violation of any applicable law and the remediation of such violations, including, without limitation, the Americans with Disabilities Act of 1990 existing as of the Commencement Date of this Leasereasonably equitable basis.
Appears in 1 contract
Exclusions from Operating Expenses. Notwithstanding anything contained in the definition of Operating Expenses as set forth in Subsection 4.1(b) of this Leasethe Lease to the contrary, Operating Expenses (including Building Operating Expenses) shall not include the following:
i. The costs of repairs to the Building, if and except to the extent specifically permitted by a specific exception to the following:
(i) Any ground lease rental;
(ii) Any capital cost other than the cost of capital improvements that are expressly permitted under Section 7.2.1(v) and Section 7.2.3(iv) (which costs shall be amortized and limited as provided in Section 7.2.1(v) and Section 7.2.3(iv) and shall be without duplication of any such costs payments of Tenant otherwise provided herein);
(iii) Rentals for items which if purchased, rather than rented, would constitute a capital cost which is actually reimbursed by the insurance carried specifically excluded under clause;
(iv) Costs incurred by Landlord for the repair of damage to the Project;
(v) Costs, including permit, license and inspection costs, incurred with respect to the installation of tenant or subject to award under any eminent domain proceeding and the costs of restoring the Building other occupants’ improvements in the event Project or incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space for tenants or other occupants of a casualty that is not covered by insurance that Landlord is obligated to carry pursuant to the terms of Article 19 of this LeaseProject or any other cost or expense which exclusively benefits another tenant in the Project;
ii. (vi) Depreciation, amortization and interest payments, except as specifically permitted herein or for amortization and interest in connection with capital costs that are expressly stated to be permissible Operating Expense hereunder and except on materials, tools tools, supplies and vendor-type equipment purchased by Landlord to enable Landlord to supply services Landlord might otherwise contract for with a third party 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. (vii) Marketing costs, including leasing commissions, attorneys’ fees incurred in connection with the negotiation and preparation of letters, deal memos, letters of intent, leases leases, subleases and/or or assignments, space planning costs, and other costs and expenses incurred in connection with lease, sublease and/or or assignment negotiations and transactions with present or prospective tenants or other occupants of the BuildingProject;
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. (viii) Costs incurred by Landlord due to Landlord’s the violation by Landlord or any other tenant of the Building’s violation, other than Tenant, of the terms and conditions of any lease or rental agreement of space in the Building or applicable lawProject;
vi. (ix) 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 thereunderProject;
vii. (x) Any compensation paid to clerks, attendants or other persons in commercial concessions operated by Landlord; 32730.018 - 276230.10 4836-3652-8809v15/100382-1012
(xi) Advertising and promotional expenditures and costs of signs in or on the Building or Project identifying the owner of the Building or Project or other tenants’ signs;
(xii) Costs arising from Landlord’s charitable or political contributions;
(xiii) Costs for sculpture, paintings or other objects of art;
(xiv) Costs associated with operating the operation of the business of the entity which constitutes Landlord, Landlord as the same are distinguished from the costs of operation of the BuildingProject, including partnership accounting and legal matters, costs of defending any lawsuits with any mortgagee (except as the actions of Tenant may be in issue), costs of selling, syndicating, financing, mortgaging or hypothecating any of Landlord’s interest in the BuildingProject, costs of any disputes between Landlord and its employees (if any) not engaged in Project operation, disputes of Landlord with Project management, or outside fees paid in connection with disputes with other tenants;
(xv) Landlord’s general corporate overhead and general and administrative expenses
(xvi) Costs of any “tap fees” or any sewer or water connection fees for the benefit of any particular tenant in the Project;
(xvii) Any expenses incurred by Landlord for use of any portions of the Project to accommodate events including, but not limited to shows, promotions, kiosks, displays, filming, photography, private events or parties, ceremonies, and advertising beyond the normal expenses otherwise attributable to providing Project services;
(xviii) Any entertainment, dining or travel expenses for any purpose;
(xix) Any flowers, gifts, balloons, etc. provided to any entity whatsoever, including, but not limited to, Tenant, other tenants, employees, vendors, contractors, prospective tenants and agents;
(xx) Any “finders fees”, brokerage commissions, job placement costs or job advertising costs;
(xxi) Any “above-standard” cleaning, including, but not limited to construction cleanup or special cleanings associated with parties/events and specific tenant requirements in excess of service provided to Tenant, including related trash collection, removal, hauling and dumping;
(xxii) The cost of any magazine, newspaper, trade or other subscriptions;
(xxiii) The cost of any training or incentive programs, other than for tenant life safety information services; 32730.018 - 276230.10 4836-3652-8809v15/100382-1012
(xxiv) The cost of any “tenant relations” parties, events or promotion not consented to by an authorized representative of Tenant in writing;
(xxv) “In-house” legal fees;
(xxvi) Earthquake Insurance (unless required by Landlord’s lender);
(xxvii) Tax penalties incurred as a result of Landlord’s negligence, inability or unwillingness to make payments or to file any tax or informational returns when due;
(xxviii) Costs arising from construction defects in the structural components of the base, shell or core of the Project or Building;
(xxix) Bad debt or rent losses;
(xxx) Water, gas and heat, light, power, telephone service, trash collection and other services and utilities supplied exclusively to any other tenant in the Project;
(xxxi) Notwithstanding any contrary provision of the Lease, including, without limitation, any provision relating to capital expenditures, any and all expenses and costs caused by or arising from the existence of hazardous materials or substances (as defined by applicable laws, rules and regulations now or subsequently applicable to the Project) in or about the Premises, the Building or the Project caused by or arising from the release of hazardous materials or substances, including, without limitation, hazardous substances in the ground water or soil, unless such expenses and costs are caused by or arise from Tenant or Tenant’s contractors or invitees; and
(xxxii) Costs (including in connection therewith all attorneys’ fees and costs of settlement judgments and payments in lieu thereof) arising from claims, disputes or potential disputes in connection with potential or actual claims, litigation or arbitration pertaining to Landlord’s ownership of the Building;
viii. Leasing advertising and promotional expenditures, and costs of leasing signs in Landlord or on the Building identifying or the owner of the BuildingProject. Any cost or expense excluded as a Project Operating Expense, Building Expense or Operating Expense shall be excluded as a Building Operating Expense, Project Operating Expense, or other tenants signs;
ix. ElectricOperating Expense, gas or other power costs for which (and only to the extent) Landlord has been directly reimbursed by another tenant or occupant of the Building, or for which any tenant directly contracts with the local public service company;
x. Costs, including attorneys’ fees and settlement judgments and/or payments in lieu thereof, arising from actual or potential claims, disputes, litigation or arbitration pertaining to Landlord and/or the Building;
xi. Costs whether incurred with respect to the installation Project or the Building, and any such expense shall be limited as provided in such provisions to the extent so limited, whether incurred with respect to the Project or the Building. Any costs in connection with the MAC Surviving Liabilities relating to building systems, utilities, and Landlord’s Work, including any obligation of TenantLandlord to correct or repair any defect or deficiency thereof are hereby expressly excluded as Operating Expenses during the period for which such MAC Surviving Liabilities survive pursuant to the Umbrella Agreement; provided that with respect to Landlord’s or other occupant’s improvements or incurred Work completed in renovating or otherwise improving, decorating, painting or redecorating vacant space for Tenant or other occupants accordance with the obligations of the Building;
xii. Tax penalties and interest incurred as a result Landlord under the terms of Landlord’s negligent or willful failure to make payments and/or to file any income tax or informational return(s) when due, unless such non-payment is due to Tenant’s nonpayment of rent;
xiii. Any charitable or political contributions;
xiv. The purchase or rental price of any sculpture, paintings or other object of art (except for costs associated with any common area fountains), whether or not installed in, on or upon the Building;
xv. Costs of repairs which would have been covered by casualty insurance but for Landlord’s failure to maintain casualty insurance to cover the replacement value of the Building as required by this Lease;
xvi, including the terms set forth in Section 8.4, during such period such costs are not excluded as Operating Expenses to the extent that they are deemed Building Operating Expenses pursuant to Section 7.2.1 above or Project Operating Expenses pursuant to Section 7.2.3 above. Capital expenditures 32730.018 - 276230.10 4836-3652-8809v15/100382-1012 Landlord agrees that Landlord will not otherwise permitted hereunder;
xvii. The assessment collect or billing be entitled to collect Operating Expenses from all of operating expenses that results its tenants in Landlord being reimbursed more than an amount which is in excess of one hundred percent (100%) of the total expenses for the calendar year in question;
xviii. Any compensation Operating Expenses actually paid or expenses reimbursed to clerks, attendants or other persons working in any commercial concession(s) operated by Landlord, and any services provided, taxes attributable to and costs incurred Landlord in connection with the operation of the Project. All assessments and taxes which are not specifically charged to Tenant because of what Tenant has done, which can be paid by Landlord in installments, shall be paid by Landlord in the maximum number of installments permitted by law if requested by Tenant and not included as Operating Expenses except in the year in which the assessment or tax is actually paid. In the event any facilities, services or utilities used in connection with the Building or the Project are provided from another building or project or area, the cost incurred by Landlord in connection therewith shall be allocated to Operating Expenses by Landlord on a reasonably equitable basis. Each time Landlord provides Tenant with an actual or estimated statement of Operating Expenses, such statement shall be itemized on a line item by line item basis, showing the applicable expense for the applicable year, the year prior to the applicable year, and the base year (if different). Landlord shall cause any retail or and restaurant operations in the Building;
xix. The costs arising out Project to be separately metered in order to facilitate the computation and allocation of Landlord’s abatement, mitigation, remediation and/or encapsulation of any Hazardous Materials when the same are located in, on or about the Building and/or the Real Property prior to the Commencement Date and was of such a nature that a federal, State or municipal governmental authority, if it had then had knowledge of the presence of such Hazardous Materials, in the state, and under the conditions that it then existed in the Building or on the Real Property, would have then required the removal of such Hazardous Material or other remedial or containment action with respect thereto; and costs incurred to remove, remedy, contain, or treat Hazardous Material, which Hazardous Material is brought into the Building or onto the Real Property after the date hereof by Landlord or any other tenant of the Real Property and is of such a nature, at that time, that a federal, State or municipal governmental authority, if it had then had knowledge of the presence of such Hazardous Material, in the state, and under the conditions, that it then exists in the Building or on the Real Property, would have then required the removal of such Hazardous Material or other remedial or containment action with respect thereto; Encino Terrace / Research Solutions, Inc. / MK / December 29, 2016 ____ ____ ____ ____ Initial Initial Initial Initial
xx. Payments by Landlord to affiliates of Landlord to the extent the same exceed the expenses which would be paid to qualified unaffiliated third parties on an arm’s-length, competitive basis providing goods or services of equal or better quality than the subject affiliates;
xxi. Any bad debt loss, rent loss or reserves for any bad debts, or rent loss; or
xxii. Costs incurred as a result of Landlord’s violation of any applicable law and the remediation of such violations, including, without limitation, the Americans with Disabilities Act of 1990 existing as of the Commencement Date of this LeaseProject Expenses.
Appears in 1 contract
Sources: Industrial Lease (Appfolio Inc)
Exclusions from Operating Expenses. Notwithstanding anything to the contrary contained in the definition of Operating Expenses as set forth in Subsection 4.1(b) of this Lease, Operating Expenses (including Building the term "Operating Expenses) " shall not include (i) the following:
i. The cost of any additional or extraordinary services provided to any other tenant of the Property; (ii) costs to comply with violations of repairs building code or other governmental violation existing as of the Commencement Date, provided that the condition of the Building shall not be deemed to the Building, if and to the extent that violate any such code or requirement if it was constructed in compliance with such code or requirement and applicable law does not require modification of such condition as of the Commencement Date; (iii) costs is actually reimbursed paid directly by any tenant of 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 Property; (iv) principal and interest payments would otherwise have been included in on loans; (v) real estate sales or leasing brokerage commissions or finders fees; (vi) salaries of off-site personnel employed by Landlord except for 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 (or pro rata share) of the capital item for which such amortization, manager of the Property and Building (employed to operate or repair the common area); (vii) personal property taxes paid by any tenant; (viii) depreciation on improvements or interest allocation was calculated;
iii. Marketing costs, including leasing commissions, equipment and machinery; (ix) advertising or promotional expenses; (x) attorneys’ ' fees incurred in connection with the negotiation and preparation or enforcement of letters, deal memos, letters of intent, leases subleases and/or assignments, space planning costs, and other leases; (xi) costs and or expenses incurred in connection with lease, sublease and/or assignment negotiations and transactions with present for loss or prospective tenants or other occupants of damage to the Building;
iv. Expenses for services not offered Property 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 extent insured by 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 operating the entity which constitutes insurance maintained by Landlord, provided however any deductible may be included as a replacement capital improvement amortized in accordance with subsection (b); or (xii) capital improvements to the same are distinguished from the costs of operation structural portion of the Building, including partnership accounting structural roof system, footings, foundations and legal mattersload bearing walls, costs of defending any lawsuits with any mortgagee (except as the actions of Tenant may be in issue), costs of selling, syndicating, financing, mortgaging or hypothecating any of Landlord’s interest in the Building, costs (including attorneys’ fees and costs of settlement judgments and payments in lieu thereof) arising from claims, disputes or potential disputes in connection with potential or actual claims, litigation or arbitration pertaining to Landlord’s ownership of the Building;
viii. Leasing advertising and promotional expenditures, and costs of leasing signs in or on the Building identifying the owner of the Building, or other tenants signs;
ix. Electric, gas or other power costs for which (and only to the extent) Landlord has been directly reimbursed by another tenant or occupant of the Building, or for which any tenant directly contracts with the local public service company;
x. Costs, including attorneys’ fees and settlement judgments and/or payments in lieu thereof, arising from actual or potential claims, disputes, litigation or arbitration pertaining to Landlord and/or the Building;
xi. Costs incurred with respect to the installation of Tenant’s or other occupant’s improvements or incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space for Tenant or other occupants of the Building;
xii. Tax penalties and interest incurred extent such improvement is required as a result of Landlord’s negligent or willful failure to make payments and/or to file any income tax or informational return(s) when due, unless such non-payment is due to Tenant’s nonpayment of rent;
xiii. Any charitable or political contributions;
xiv. The purchase or rental price of any sculpture, paintings or other object of art (except for costs associated with any common area fountains), whether or not installed in, on or upon the Building;
xv. Costs of repairs which would have been covered by casualty insurance but for Landlord’s failure to maintain casualty insurance to cover the replacement value of the Building as required by this Lease;
xvi. Capital expenditures not otherwise permitted hereunder;
xvii. The assessment or billing of operating expenses that results in Landlord being reimbursed more than one hundred percent (100%) of the total expenses for the calendar year in question;
xviii. Any compensation paid or expenses reimbursed to clerks, attendants or other persons working in any commercial concession(s) operated by Landlord, and any services provided, taxes attributable to and costs incurred in connection with the operation of any retail or restaurant operations in the Building;
xix. The costs arising out of Landlord’s abatement, mitigation, remediation and/or encapsulation of any Hazardous Materials when the same are located in, on or about the Building and/or the Real Property prior to a change after the Commencement Date in governmental laws, rules and was of such a nature that a federal, State or municipal governmental authority, if it had then had knowledge of the presence of such Hazardous Materials, in the state, and under the conditions that it then existed in the Building or on the Real Property, would have then required the removal of such Hazardous Material or other remedial or containment action with respect thereto; and costs incurred to remove, remedy, contain, or treat Hazardous Material, which Hazardous Material is brought into the Building or onto the Real Property after the date hereof by Landlord or any other tenant of the Real Property and is of such a nature, at that time, that a federal, State or municipal governmental authority, if it had then had knowledge of the presence of such Hazardous Material, in the state, and under the conditions, that it then exists in the Building or on the Real Property, would have then required the removal of such Hazardous Material or other remedial or containment action with respect thereto; Encino Terrace / Research Solutions, Inc. / MK / December 29, 2016 ____ ____ ____ ____ Initial Initial Initial Initial
xx. Payments by Landlord to affiliates of Landlord regulations applicable to the extent the same exceed the expenses which would be paid to qualified unaffiliated third parties on an arm’s-length, competitive basis providing goods or services of equal or better quality than the subject affiliates;
xxi. Any bad debt loss, rent loss or reserves for any bad debts, or rent loss; or
xxii. Costs incurred as a result of Landlord’s violation of any applicable law and the remediation of such violations, including, without limitation, the Americans with Disabilities Act of 1990 existing as of the Commencement Date of this LeaseBuilding.
Appears in 1 contract
Sources: Lease (Pc Tel Inc)
Exclusions from Operating Expenses. Notwithstanding anything to the contrary contained in this Lease, Operating Expenses, however characterized, shall not include and Tenant shall in no event have any obligation to perform or to pay directly, or to reimburse Landlord for, all or any portion of:
(i) costs incurred in connection with the definition original construction, development or leasing of Operating Expenses the Project, including legal fees, space planners’ fees, advertising and promotional expenses (except as otherwise set forth above), and brokerage fees, and the costs to correct or remedy any construction defects in the Improvements discovered not later than the second anniversary of Term Commencement;
(ii) except as set forth in Subsection 4.1(bitems (xii) of this Leaseand (xiii) in Section 4(b)(i) above, Operating Expenses (including Building Operating Expenses) shall not include the following:
i. The depreciation, interest and principal payments on mortgages and other debt costs, if any, penalties and interest, costs of capital repairs to the Buildingand alterations, 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. Depreciationcapital improvements and equipment, 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 any other costs which 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 properly capitalized pursuant to generally accepted accounting principles, consistently appliedother than Permitted Capital Expenditures;
(iii) costs for which the Landlord is actually reimbursed by insurance by its carrier or any tenant’s carrier or by another third party (provided Landlord shall use commercially reasonable efforts to obtain such reimbursement from any such third party with an obligation to provide such reimbursement);
(iv) costs of all items and services for which Tenant reimburses Landlord (other than as reimbursements of Operating Expenses) or is required to and does pay to third parties pursuant to the terms of this Lease, amortized over including electric power and other utility costs for which Tenant directly contracts with a local utilities company;
(v) charitable and political contributions or reserves of any kind;
(vi) Landlord’s and Landlord’s managing agent’s general corporate or partnership overhead and general administrative expenses, and all costs associated with the reasonably anticipated useful life operation of the capital item for business of the ownership or entity which such amortizationconstitutes “Landlord,” as distinguished from the costs of Building operations, depreciation management, maintenance or interest allocation was calculatedrepair;
iii. Marketing costs(vii) payments to subsidiaries or affiliates of Landlord, for management (but not including the management fee) or other services in or to the Project, or for supplies or other materials to the extent that the costs of such services, supplies, or materials exceed the costs that would have been paid had the services, supplies or materials been provided by parties unaffiliated with the Landlord on a competitive basis;
(viii) marketing, advertising and promotional costs and cost of signs in or on the Project identifying the owner of the Project;
(ix) leasing commissions, attorneys’ fees incurred in connection with the negotiation fees, costs and preparation of letters, deal memos, letters of intent, leases subleases and/or assignments, space planning costs, disbursements and other costs and expenses incurred in connection with lease, sublease and/or assignment negotiations and transactions or disputes with present other tenants or other occupants or prospective tenants or other occupants occupants, or associated with the enforcement of any leases or the Buildingdefense of Landlord’s title to or interest in the Project;
iv. Expenses for services not offered to Tenant (x) legal, auditing, consulting and professional fees and other costs paid or for which Tenant is charged directlyincurred in connection with financings, whether refinancings 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 sales of any lease interest in Landlord 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 operating the entity which constitutes Landlord, as the same are distinguished from the costs of operation of the Building, including partnership accounting and legal matters, costs of defending any lawsuits with any mortgagee (except as the actions of Tenant may be in issue), costs of selling, syndicating, financing, mortgaging or hypothecating any of Landlord’s interest in the Building, costs (including attorneys’ fees and costs of settlement judgments and payments in lieu thereof) arising from claims, disputes Project or potential disputes in connection with potential or actual claimsany ground lease (including, litigation or arbitration pertaining without limitation, recording costs, mortgage recording taxes, title insurance premiums and other similar costs, but excluding those legal, auditing, consulting and professional fees and other costs incurred in connection with the normal and routine maintenance and operation of the Project);
(xi) legal fees, space planner’s fees, architect’s fees, leasing and brokerage commissions, advertising and promotional expenditures and any other marketing expense incurred in connection with the leasing of space in the Building (including new leases, lease amendments, lease terminations and lease renewals);
(xii) the cost of any items to the extent such cost is covered by a warranty to the extent of reimbursement for such coverage (provided Landlord shall use commercially reasonable efforts to obtain such reimbursements from any third parties with an obligation to deliver such reimbursements, except that Landlord’s ownership obligations with respect to the Warranties shall be governed by Section 8(b) of this Lease and Section 3.4 of the Work Letter);
(xiii) the cost of acquiring sculptures, paintings or other objects of fine art in the Building;
viii. Leasing advertising and promotional expenditures(xiv) any bad debt loss, and costs of leasing signs in or on the Building identifying the owner of the Buildingrent loss, or other tenants signsreserves for bad debts or rent loss;
ix. Electric, gas or other power (xv) costs for which (and only due to the extent) Landlord has been directly reimbursed by another tenant violation of this Lease or occupant of the Building, gross negligence or for which any tenant directly contracts with the local public service company;
x. Costs, including attorneys’ fees and settlement judgments and/or payments in lieu thereof, arising from actual or potential claims, disputes, litigation or arbitration pertaining to Landlord and/or the Building;
xi. Costs incurred with respect to the installation of Tenant’s or other occupant’s improvements or incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space for Tenant or other occupants of the Building;
xii. Tax penalties and interest incurred as a result willful misconduct of Landlord’s negligent Parties;
(xvi) interest, fines or willful failure penalties for late payment or violations of Laws by Landlord’s Parties, except to make payments and/or the extent incurring such expense is caused by a corresponding late payment or violation of a Law by Tenant, in which event Tenant shall be responsible for the amount of such expense to file the extent caused by Tenant’s late payment or violation;
(xvii) the wages and benefits of any income tax employee who does not devote substantially all of his or informational return(s) when due, her employed time to the Project unless such nonwages and benefits are prorated to reflect time spent on operating and managing the Project vis-payment is due a-vis time spent on matters unrelated to Tenant’s nonpayment operating and managing the Project; provided, that in no event shall Operating Expenses for purposes of rentthis Lease include wages and/or benefits attributable to personnel above the level of property manager;
xiii. Any charitable or political contributions(xviii) reserves of any kind, including for expenses for future improvements, repairs, additions, etc.;
xiv. The purchase or rental price (xix) salaries and all other compensation (including fringe benefits) of any sculpturepartners, paintings or other object officers and executives at and above the grade of art (except for costs associated with any common area fountains), whether or not installed in, on or upon the Buildingsenior property manager;
xv. Costs of repairs which would have been covered (xx) amounts paid as ground rental for the Project by casualty insurance but for the Landlord’s failure to maintain casualty insurance to cover the replacement value of the Building as required by this Lease;
xvi. Capital expenditures not otherwise permitted hereunder;
xvii. The assessment or billing of operating expenses that results in Landlord being reimbursed more than one hundred percent (100%xxi) of the total expenses for the calendar year in question;
xviii. Any any compensation paid or expenses reimbursed to clerks, attendants or other persons working in any commercial concession(s) concessions operated by the Landlord;
(xxii) any costs expressly excluded from Operating Expenses elsewhere in this Lease;
(xxiii) rent for any office space occupied by property management personnel to the extent (A) not providing service to the Premises, (B) Landlord is reimbursed such costs from other tenants and (C) the size or rental rate of such office space exceeds the size or fair market rental value of office space occupied by management personnel of the comparable buildings in the vicinity of the Building, with adjustment where appropriate for the size of the applicable project;
(xxiv) except with respect to Tenant’s obligations with regard to Hazardous Materials (as defined in Section 6(c)) under this Lease), any services providedliabilities, taxes attributable to and costs or expenses associated with or incurred in connection with the operation presence of any retail Hazardous Materials and the cost of defending against claims in regard to the existence or restaurant operations in release of Hazardous Materials at the BuildingProject;
xix. The (xxv) fees payable or retained by Landlord or its Affiliates for management of the Project in excess of two percent (2%) of gross rental revenues received by Landlord under this Lease, including base rent, pass-throughs, for any calendar year or portion thereof;
(xxvi) the costs arising out of Landlord’s abatementStructural Repair Obligations (as defined in Section 8(a));
(xxvii) costs incurred by Landlord with respect to casualties or condemnations, mitigationexcept insurance deductibles as provided in Section 4(b)(i)(iii); provided, remediation and/or encapsulation however, that the amount of any Hazardous Materials when deductible under any earthquake insurance shall be amortized (including interest on the same are located inunamortized cost at a commercially reasonable annual interest rate determined by Landlord, on not to exceed the prime rate plus 250 basis points) over the estimated useful life of the improvements constructed or about restored with the Building and/or the Real Property prior deductible as Landlord shall reasonably determine in accordance with generally accepted accounting principles;
(xxviii) costs to comply with any Laws applicable to the Commencement Date and was of such a nature that a federal, State or municipal governmental authority, if it had then had knowledge Project on Term Commencement;
(xxix) costs relating to the acquisition of the presence Project; and
(xxx) any other expenses that under standard real estate accounting principles consistently applied would not be considered normal maintenance, repair, management or operation expenses (provided that the parties agree that the expenses expressly and specifically enumerated as items (i) through (xviii) in Section 4(b)(i) above that are not expressly excluded under clauses (i) through (xxix) in this Section 4(c) are deemed normal maintenance, repair, management or operation expenses). Notwithstanding anything in this Section 4 to the contrary, this Section 4 shall not preclude Landlord’s recovery of such Hazardous Materials, in the state, and under the conditions that it then existed in the Building or on the Real Property, would have then required the removal of such Hazardous Material or other remedial or containment action with respect thereto; and its costs incurred to remove, remedy, contain, or treat Hazardous Material, which Hazardous Material is brought into the Building or onto the Real Property after the date hereof by Landlord or any other tenant of the Real Property and is of such a nature, at that time, that a federal, State or municipal governmental authority, if it had then had knowledge of the presence of such Hazardous Material, in the state, and under the conditions, that it then exists in the Building or on the Real Property, would have then required the removal of such Hazardous Material or other remedial or containment action comply with respect thereto; Encino Terrace / Research Solutions, Inc. / MK / December 29, 2016 ____ ____ ____ ____ Initial Initial Initial Initial
xx. Payments by Landlord to affiliates of Landlord Laws to the extent that such compliance is necessary due to Tenant’s particular use of the same exceed Premises or of its costs incurred to repair damage to the expenses which would be paid to qualified unaffiliated third parties on an arm’s-lengthProject caused by Tenant’s Parties or their contractors, competitive basis providing goods or services of equal or better quality than the subject affiliates;
xxi. Any bad debt loss, rent loss or reserves for any bad debtsinvitees, or rent loss; or
xxii. Costs incurred as a result of Landlord’s violation of any applicable law and the remediation of such violations, including, without limitation, the Americans with Disabilities Act of 1990 existing as of the Commencement Date of this Leaseother guests.
Appears in 1 contract
Sources: Lease Agreement (Exelixis, Inc.)
Exclusions from Operating Expenses. Notwithstanding anything contained Operating Expenses shall, however, exclude: (i) interest and amortization on mortgages and other debt costs or ground lease payments, if any; (ii) depreciation of buildings and other improvements (except permitted amortization of certain capital expenditures); (iii) legal fees in connection with leasing, tenant disputes or enforcement of leases; (iv) real estate brokers’ commissions or marketing costs; (v) improvements or alterations to tenant spaces not required by law or Landlord’s insurer; (vi) the cost of providing any service directly to, and paid directly by, any tenant; (vii) costs of any items to the extent Landlord receives reimbursement from insurance proceeds or from a warranty or other such third party (such proceeds to be deducted from Operating Expenses in the definition of year in which received); and (viii) capital expenditures, except those (a) made primarily to reduce Operating Expenses as set forth in Subsection 4.1(b) or increases therein, or to comply with laws or insurance requirements (excluding capital expenditures to cure violations of laws or insurance requirements that existed prior to the date of this Lease), or (b) for replacements (as opposed to additions or new improvements); provided, any such permitted capital expenditure shall be amortized (with interest at the prevailing loan rate available to Landlord when the cost was incurred) over: (x) the period during which the reasonable estimated savings in Operating Expenses (including Building Operating Expenses) shall not include equals the following:
i. The costs of repairs to the Buildingexpenditure, if and to applicable, or (y) 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 operating the entity which constitutes Landlord, as the same are distinguished from the costs of operation of the Building, including partnership accounting and legal matters, costs of defending any lawsuits with any mortgagee (except as the actions of Tenant may be in issue), costs of selling, syndicating, financing, mortgaging or hypothecating any of Landlord’s interest in the Building, costs (including attorneys’ fees and costs of settlement judgments and payments in lieu thereof) arising from claims, disputes or potential disputes in connection with potential or actual claims, litigation or arbitration pertaining to Landlord’s ownership of the Building;
viii. Leasing advertising and promotional expenditures, and costs of leasing signs in or on the Building identifying the owner of the Building, or other tenants signs;
ix. Electric, gas or other power costs for which (and only to the extent) Landlord has been directly reimbursed by another tenant or occupant of the Building, or for which any tenant directly contracts with the local public service company;
x. Costs, including attorneys’ fees and settlement judgments and/or payments in lieu thereof, arising from actual or potential claims, disputes, litigation or arbitration pertaining to Landlord and/or the Building;
xi. Costs incurred with respect to the installation of Tenant’s or other occupant’s improvements or incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space for Tenant or other occupants of the Building;
xii. Tax penalties and interest incurred as a result of Landlord’s negligent or willful failure to make payments and/or to file any income tax or informational return(s) when due, unless such non-payment is due to Tenant’s nonpayment of rent;
xiii. Any charitable or political contributions;
xiv. The purchase or rental price of any sculpture, paintings or other object of art (except for costs associated with any common area fountains), whether or not installed in, on or upon the Building;
xv. Costs of repairs which would have been covered by casualty insurance but for Landlord’s failure to maintain casualty insurance to cover the replacement value of the Building as required by this Lease;
xvi. Capital expenditures not otherwise permitted hereunder;
xvii. The assessment or billing of operating expenses that results in Landlord being reimbursed more than one hundred percent (100%) of the total expenses for the calendar year in question;
xviii. Any compensation paid or expenses reimbursed to clerks, attendants or other persons working in any commercial concession(s) operated reasonably determined by Landlord, and any services provided, taxes attributable to and costs incurred but in connection with the operation of any retail or restaurant operations in the Building;
xix. The costs arising out of Landlord’s abatement, mitigation, remediation and/or encapsulation of any Hazardous Materials when the same are located in, on or about the Building and/or the Real Property prior to the Commencement Date and was of such a nature that a federal, State or municipal governmental authority, if it had then had knowledge of the presence of such Hazardous Materials, in the state, and under the conditions that it then existed in the Building or on the Real Property, would have then required the removal of such Hazardous Material or other remedial or containment action with respect thereto; and costs incurred to remove, remedy, contain, or treat Hazardous Material, which Hazardous Material is brought into the Building or onto the Real Property after the date hereof by Landlord or any other tenant of the Real Property and is of such a nature, at that time, that a federal, State or municipal governmental authority, if it had then had knowledge of the presence of such Hazardous Material, in the state, and under the conditions, that it then exists in the Building or on the Real Property, would have then required the removal of such Hazardous Material or other remedial or containment action with respect thereto; Encino Terrace / Research Solutions, Inc. / MK / December 29, 2016 ____ ____ ____ ____ Initial Initial Initial Initial
xx. Payments by Landlord to affiliates of Landlord to the extent the same exceed the expenses which would be paid to qualified unaffiliated third parties on an arm’s-length, competitive basis providing goods or services of equal or better quality no event less than the subject affiliates;
xxi. Any bad debt loss, rent loss or reserves for any bad debts, or rent loss; or
xxii. Costs incurred as a result of Landlord’s violation of any applicable law and the remediation of such violations, including, without limitation, the Americans with Disabilities Act of 1990 existing as of the Commencement Date of this Leasefive (5) years nor more than ten (10) years.
Appears in 1 contract
Sources: Lease Agreement (Website Pros Inc)
Exclusions from Operating Expenses. Notwithstanding anything contained in ---------------------------------- Subparagraph 6(b)(i) to the definition of Operating Expenses as set forth in Subsection 4.1(b) of this Leasecontrary, Operating Expenses (including Building Operating Expenses) shall not include the following:
i. The : legal fees, brokerage commissions, advertising costs and other related expenses incurred in connection with the leasing of the Building; repairs, alterations, additions, improvements or replacements made to rectify or correct any defects under warranty in the design, materials or workmanship of the Building, the Parking Structure, or the Outside Areas; and repairs, alterations, additions, improvements or replacements to the Building, Parking Structure, or Outside Areas made to comply with any applicable requirements of any governmental authority having jurisdiction in effect as of the date the building permits were issued for the construction of the Building, Parking Structure, or Outside Areas; damage and repairs to the Building, if and Parking Structure or Outside Areas resulting from fire or other casualty but only 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 policies carried by Landlord, repairs to the terms Building, Parking Structure, or Outside Areas resulting from the exercise of Article 19 a public agency of this Lease;
ii. Depreciationits power of eminent domain but only to the extent Landlord receives an award from such public agency as a result of the exercise of such power of eminent domain; Landlord's general overhead expenses not related to the Building, Parking Structure, or Outside Areas; interest, principal, points and fees on debt or amortization and interest paymentson any mortgages or deeds of trust encumbering the Premises; depreciation, except as specifically permitted herein or except on materials, tools tools, supplies and vendor-type equipment purchased by Landlord to enable Landlord to supply services Landlord might otherwise contract for with a third party party, where such depreciation, amortization and interest payments depreciation would otherwise have been included in the charge for of such third party’s services. In such a circumstance's service, the inclusion of all depreciation, amortization and interest payments shall be as determined pursuant to generally accepted in accordance with standard 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 practices; 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 a default by Landlord under this Lease; charitable or political contributions made by Landlord’s or ; and any tenant of the Building’s violationcosts incurred by Landlord to test, other than Tenantclean-up, of the terms transport and conditions of store any lease or rental agreement Hazardous Materials (hereafter defined 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 operating the entity which constitutes Landlord, as the same are distinguished from the costs of operation of the Building, including partnership accounting and legal matters, costs of defending any lawsuits with any mortgagee (except as the actions of Tenant may be in issueSubparagraph 8(c), costs of selling, syndicating, financing, mortgaging or hypothecating any of Landlord’s interest in the Building, costs (including attorneys’ fees and costs of settlement judgments and payments in lieu thereof) arising from claims, disputes or potential disputes in connection with potential or actual claims, litigation or arbitration pertaining to Landlord’s ownership of the Building;
viii. Leasing advertising and promotional expenditures, and costs of leasing signs present in or on the Building identifying the owner of the BuildingPremises, or other tenants signs;
ix. Electric, gas or other power costs for which (and only to the extent) Landlord has been directly reimbursed by another tenant or occupant of the Building, or for which any tenant directly contracts with the local public service company;
x. Costs, including attorneys’ fees and settlement judgments and/or payments in lieu thereof, arising from actual or potential claims, disputes, litigation or arbitration pertaining to Landlord and/or the Building;
xi. Costs incurred with respect to the installation of Tenant’s or other occupant’s improvements or incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space for Tenant or other occupants of the Building;
xii. Tax penalties and interest incurred as a result of Landlord’s negligent or willful failure to make payments and/or to file any income tax or informational return(s) when due, unless such non-payment is due to Tenant’s nonpayment of rent;
xiii. Any charitable or political contributions;
xiv. The purchase or rental price of any sculpture, paintings or other object of art (except for costs associated with any common area fountains), whether or not installed in, on or upon the Building;
xv. Costs of repairs which would have been covered by casualty insurance but for Landlord’s failure to maintain casualty insurance to cover the replacement value of the Building as required by this Lease;
xvi. Capital expenditures not otherwise permitted hereunder;
xvii. The assessment or billing of operating expenses that results in Landlord being reimbursed more than one hundred percent (100%) of the total expenses for the calendar year in question;
xviii. Any compensation paid or expenses reimbursed to clerks, attendants or other persons working in any commercial concession(s) operated by Landlord, and any services provided, taxes attributable to and costs incurred however, the foregoing shall in connection with the operation of any retail no way modify or restaurant operations in the Building;
xix. The costs arising out of Landlord’s abatement, mitigation, remediation and/or encapsulation of any limit Tenant's obligations regarding Hazardous Materials when the same are located in, on or about the Building and/or the Real Property prior to the Commencement Date and was of such a nature that a federal, State or municipal governmental authority, if it had then had knowledge of the presence of such Hazardous Materials, as provided for in the state, and under the conditions that it then existed in the Building or on the Real Property, would have then required the removal of such Hazardous Material or other remedial or containment action with respect thereto; and costs incurred to remove, remedy, contain, or treat Hazardous Material, which Hazardous Material is brought into the Building or onto the Real Property after the date hereof by Landlord or any other tenant of the Real Property and is of such a nature, at that time, that a federal, State or municipal governmental authority, if it had then had knowledge of the presence of such Hazardous Material, in the state, and under the conditions, that it then exists in the Building or on the Real Property, would have then required the removal of such Hazardous Material or other remedial or containment action with respect thereto; Encino Terrace / Research Solutions, Inc. / MK / December 29, 2016 ____ ____ ____ ____ Initial Initial Initial Initial
xx. Payments by Landlord to affiliates of Landlord to the extent the same exceed the expenses which would be paid to qualified unaffiliated third parties on an arm’s-length, competitive basis providing goods or services of equal or better quality than the subject affiliates;
xxi. Any bad debt loss, rent loss or reserves for any bad debts, or rent loss; or
xxii. Costs incurred as a result of Landlord’s violation of any applicable law and the remediation of such violations, including, without limitation, the Americans with Disabilities Act of 1990 existing as of the Commencement Date of this LeaseSubparagraph 8(c) hereof.
Appears in 1 contract
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. 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 Leaseproceeding;
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. 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 lawBuilding;
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 operating the entity which constitutes Landlord, as the same are distinguished from the costs of operation of the Building, including partnership accounting and legal matters, costs of defending any lawsuits with any mortgagee (except as the actions of Tenant may be in issue), costs of selling, syndicating, financing, mortgaging or hypothecating any of Landlord’s interest in the Building, costs (including attorneys’ fees and costs of settlement judgments and payments in lieu thereof) arising from claims, disputes or potential disputes in connection with potential or actual claims, litigation or arbitration pertaining to Landlord’s ownership of the Building;
viii. ) Leasing advertising and promotional expenditures, and costs of leasing signs in or on the Building identifying the owner of the Building, or other tenants signs;
ix. ) Electric, gas or other power costs for which (and only to the extent) Landlord has been directly reimbursed by another tenant or occupant of the Building, or for which any tenant directly contracts with the local public service company;
x. x) Costs, including attorneys’ fees and settlement judgments and/or payments in lieu thereof, arising from actual or potential claims, disputes, litigation or arbitration pertaining to Landlord and/or the Building;
xi. ) Costs incurred with respect to the installation of Tenant’s or other occupant’s improvements or incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space for Tenant or other occupants of the Building;
xii. ) Tax penalties and interest incurred as a result of Landlord’s negligent or willful failure to make payments and/or to file any income tax or informational return(s) when due, unless such non-payment is due to Tenant’s nonpayment of rent;
xiii. ) Any charitable or political contributions;
xiv. ) The purchase or rental price of any sculpture, paintings or other object of art (except for costs associated with any common area fountains), whether or not installed in, on or upon the Building;
xv. ) Costs of repairs which would have been covered by casualty insurance but for Landlord’s failure to maintain casualty insurance to cover the replacement value of the Building as required by this Lease;
xvi. ) Capital expenditures not otherwise permitted hereunder;; and
xvii. ) The assessment or billing of operating expenses that results in Landlord being reimbursed more than one hundred percent (100%) of the total expenses for the calendar year in question;
xviii. Any compensation paid or expenses reimbursed to clerks, attendants or other persons working in any commercial concession(s) operated by Landlord, and any services provided, taxes attributable to and costs incurred in connection with the operation of any retail or restaurant operations in the Building;
xix. The costs arising out of Landlord’s abatement, mitigation, remediation and/or encapsulation of any Hazardous Materials when the same are located in, on or about the Building and/or the Real Property prior to the Commencement Date and was of such a nature that a federal, State or municipal governmental authority, if it had then had knowledge of the presence of such Hazardous Materials, in the state, and under the conditions that it then existed in the Building or on the Real Property, would have then required the removal of such Hazardous Material or other remedial or containment action with respect thereto; and costs incurred to remove, remedy, contain, or treat Hazardous Material, which Hazardous Material is brought into the Building or onto the Real Property after the date hereof by Landlord or any other tenant of the Real Property and is of such a nature, at that time, that a federal, State or municipal governmental authority, if it had then had knowledge of the presence of such Hazardous Material, in the state, and under the conditions, that it then exists in the Building or on the Real Property, would have then required the removal of such Hazardous Material or other remedial or containment action with respect thereto; Encino Terrace / Research Solutions, Inc. / MK / December 29, 2016 ____ ____ ____ ____ Initial Initial Initial Initial
xx. Payments by Landlord to affiliates of Landlord to the extent the same exceed the expenses which would be paid to qualified unaffiliated third parties on an arm’s-length, competitive basis providing goods or services of equal or better quality than the subject affiliates;
xxi. Any bad debt loss, rent loss or reserves for any bad debts, or rent loss; or
xxii. Costs incurred as a result of Landlord’s violation of any applicable law and the remediation of such violations, including, without limitation, the Americans with Disabilities Act of 1990 existing as of the Commencement Date of this Lease.
Appears in 1 contract
Sources: Office Lease (Ziprecruiter, Inc.)
Exclusions from Operating Expenses. (a) Notwithstanding anything contained in the definition of Operating Expenses as set forth in Subsection 4.1(b) of this Leasethe Lease to the contrary, Operating Expenses (including Building Operating Expenses) shall not include the following, except to the extent specifically permitted by a specific exception to the following:
i. The costs (i) Any ground lease rental;
(ii) Costs of items considered capital repairs, replacements, improvements and equipment under generally accepted accounting principles consistently applied or otherwise (“Capital Items”) except for Capital Items for repair or replacement not to exceed $50,000 per annum on an aggregate amortized basis and those Capital Items specifically permitted in subitems (i) and (j) in the definition of Operating Expenses set forth in Section 4.3;
(iii) Rentals for items (except when heeded in connection with normal repairs and maintenance of permanent systems) which if purchased, rather than rented, would constitute a Capital Item which is specifically excluded in (ii) above (excluding, however, equipment not affixed to the Building which is used in providing janitorial or similar services);
(iv) Costs incurred by Landlord for the repair of damage to the Building, if and to the extent that any such costs Landlord is actually or should be reimbursed by the insurance carried by Landlord or subject to award under any eminent domain proceeding proceeds, and the costs cost of restoring the Building in the event all capital repairs, regardless of a casualty that is not whether such repairs are covered by insurance that Landlord is obligated and costs due to carry pursuant repairs resulting from an earthquake or flood to the terms of Article 19 of this Leaseextent such costs exceed $50,000;
ii. (v) [Intentionally Omitted]
(vi) Depreciation, amortization and interest payments, except as specifically permitted provided herein or and except on materials, tools 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 as determined pursuant to in accordance with generally accepted accounting principles, consistently applied, and when depreciation or amortization is permitted or required, the item shall be amortized over the its reasonably anticipated useful life of the capital item for which such amortization, depreciation or interest allocation was calculatedlife;
iii. (vii) Marketing costs, including without limitation, leasing commissions, attorneys’ fees incurred in connection with the negotiation and preparation of letters, deal memos, letters of intent, leases 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 Tenant or 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(viii) [Intentionally omitted]
v. (ix) Costs incurred by Landlord due to Landlord’s the default by Landlord under this Lease;
(x) Overhead and profit increment paid to Landlord or any tenant to subsidiaries or affiliates of the Building’s violation, other than Tenant, of the terms and conditions of any lease Landlord for goods and/or services in or rental agreement in to the Building or applicable lawto the extent the same exceeds the costs of such goods and/or services rendered by unaffiliated third parties on a competitive basis;
vi. (xi) 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 thereunderSite (except as permitted in (ii) above);
vii. (xii) Landlord’s general corporate overhead and general and administrative expenses;
(xiii) [Intentionally omitted]
(xiv) Rentals and other related expenses incurred in leasing HVAC systems, elevators or other equipment ordinarily considered to be Capital Items, except for (1) expenses in connection with making minor repairs on or keeping Building Systems in operation while minor repairs are being made and (2) costs of equipment not affixed to the Building which is used in providing janitorial or similar services except if such Capital Items are specifically permitted herein;
(xv) Advertising and promotional expenditures, and costs of signs in or on the Building identifying the owner of the Building;
(xvi) [Intentionally omitted]
(xvii) [Intentionally omitted]
(xviii) Costs incurred in connection with upgrading the Building to comply with life, fire and safety codes, ordinances, statutes or other laws in effect prior to July 1, 1978 including, without limitation, the ADA, including fines, interest, penalties or damages incurred due to such non-compliance;
(xix) Tax penalties ineurred as a result of Landlord’s failure to make payments and/or to file any tax or informational returns when due;
(xx) Costs for which Landlord has been otherwise compensated by a management fee, and any management fees in excess of the lower of (a) those management fees which are normally and customarily charged by landlords of Comparable Buildings or (b) one and one-half percent (11/2%) of the Base Rent and Operating Expenses Increases;
(xxi) Costs arising from the negligence or fault of Landlord or its agents, or any vendors, contractors, or providers of materials or services selected, hired or engaged by Landlord or its agents including, without limitation, the selection of Building materials;
(xxii) Notwithstanding any contrary provision of the Lease, including, without limitation, any provision relating to capital expenditures, any and all costs arising from the presence of hazardous materials or substances (as defined by Applicable Laws in effect on the date this Lease is executed) in or about the Premises, the Building or the Site including, without limitation, hazardous substances in the ground water or soil, not placed in the Premises, the Building or the Site by Tenant;
(xxiii) Costs arising from Landlord’s charitable or political contributions;
(xxiv) Costs arising from defects in the base, shell or core of the Building or improvements installed by Landlord or repair thereof;
(xxv) Costs arising from any mandatory or voluntary special assessment on the Building or the Site by any transit district authority or any other governmental entity having the authority to impose such assessment;
(xxvi) Costs for the acquisition of (as contrasted with the maintenance of) sculpture, paintings or other objects of art;
(xxvii) Costs (including in connection therewith all attorneys’ fees and costs of settlement judgments and payments in lieu thereof) arising from claims, disputes or potential disputes in connection with potential or actual claims litigation or arbitrations pertaining to Landlord and/or the Building and/or the Site;
(xxviii) Costs associated with operating the operation of the business of the partnership or entity which constitutes Landlord, Landlord as the same are distinguished from the costs of operation of the Building, including partnership accounting and legal matters, costs of defending any lawsuits with or claims by any mortgagee (except as the actions of Tenant may be in issue), costs of selling, syndicating, financing, mortgaging or hypothecating any of Landlord’s interest in the Building, costs of any disputes between Landlord and its employees (including attorneys’ fees and costs of settlement judgments and payments if any) not engaged in lieu thereof) arising from claimsBuilding operation, disputes of Landlord with Building management, or potential disputes putside fees paid in connection with potential disputes with other tenants;
(xxix) Costs of any “tap fees” or actual claims, litigation any sewer or arbitration pertaining to Landlord’s ownership water connection fees for the benefit of any particular tenant in the Building;
viii. Leasing advertising and promotional expenditures(xxx) Costs incurred in connection with any environmental cleanup, and costs of leasing signs in response action, or on remediation on, in, under or about the Building identifying the owner of Premises or the Building, including but not limited to, costs and expenses associated with the defense, administration, settlement, monitoring or management thereof;
(xxxi) [Intentionally Omitted]
(xxxii) Any entertainment, dining or travel expenses for any purpose;
(xxxiii) Any flowers, gifts, balloons, etc. provided to any entity whatsoever, to include, but not limited to, Tenant, employees, vendors, contractors, prospective tenants and agents;
(xxxiv) Any “validated” parking for any entity;
(xxxv) Any “finders fees”, brokerage commissions, job placement costs or job advertising cost;
(xxxvi) Any “above-standard” cleaning, including, but not limited to construction cleanup or special cleanings associated with parties/events and specific tenant requirements in excess of service provided to Tenant, including related trash collection, removal, hauling and dumping;
(xxxvii) The cost of any magazine, newspaper, trade or other tenants signssubscriptions;
ix. Electric(xxxviii) The cost of any training or incentive programs, gas other than for tenant life safety information services;
(xxxix) The cost of any “tenant relations” parties, events or promotions not consented to by an authorized representative of Tenant in writing;
(xl) “In-house” legal and/or accounting fees;
(xli) Reserves for bad debts or for future improvements, repairs, additions, etc.; and
(xlii) Any other expenses which, in accordance with generally accepted accounting principles, consistently applied, would not normally be treated as Operating Expenses by landlords of Comparable Buildings unless specifically permitted otherwise herein, unless specifically permitted otherwise herein.
(xliii) Certain increases in Taxes as and to the extent set forth in Section 4.7 below.
(b) It is understood that Operating Expenses shall be reduced by all cash discounts, trade discounts, quantity discounts, relates or other power costs for which (and only to amounts received by Landlord or Landlord’s managing agent in the extent) Landlord has been directly reimbursed by another tenant or occupant purchase of the Buildingany goods, utilities, or for which any tenant directly contracts with the local public service company;
x. Costs, including attorneys’ fees and settlement judgments and/or payments in lieu thereof, arising from actual or potential claims, disputes, litigation or arbitration pertaining to Landlord and/or the Building;
xi. Costs incurred with respect to the installation of Tenant’s or other occupant’s improvements or incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space for Tenant or other occupants of the Building;
xii. Tax penalties and interest incurred as a result of Landlord’s negligent or willful failure to make payments and/or to file any income tax or informational return(s) when due, unless such non-payment is due to Tenant’s nonpayment of rent;
xiii. Any charitable or political contributions;
xiv. The purchase or rental price of any sculpture, paintings or other object of art (except for costs associated with any common area fountains), whether or not installed in, on or upon the Building;
xv. Costs of repairs which would have been covered by casualty insurance but for Landlord’s failure to maintain casualty insurance to cover the replacement value of the Building as required by this Lease;
xvi. Capital expenditures not otherwise permitted hereunder;
xvii. The assessment or billing of operating expenses that results in Landlord being reimbursed more than one hundred percent (100%) of the total expenses for the calendar year in question;
xviii. Any compensation paid or expenses reimbursed to clerks, attendants or other persons working in any commercial concession(s) operated by Landlord, and any services provided, taxes attributable to and costs incurred in connection with the operation of any retail or restaurant operations in the Building;.
xix. The (c) In the event any facilities, services or utilities used in connection with the Building are provided from another building owned or operated by Landlord or vice versa, the costs arising out incurred by Landlord in connection therewith shall be allocated to Operating Expenses by Landlord on a reasonably equitable basis.
(d) In the event that Landlord receives a Proposition 8 reduction in Taxes attributable to the Base Year, then Taxes for the Base Year and any subsequent year shall be computed as if no Proposition 8 tax reduction was obtained during the Base Year and any subsequent year (“Proposition 8 Protection”).
(e) In the event that Landlord receives a refund or a credit for a payment of Taxes or Operating Expenses, such refund or credit, except as provided specifically to the contrary in this Lease, shall be made to the year in which such charge was applicable and Landlord shall promptly refund such payment to Tenant.
(f) Provided Tenant shall pay, as an Operating Expense hereunder the additional costs associated with Landlord’s abatementaccounting for such matters, mitigationthen for the purpose of payment of Operating Expenses, remediation to the extent Landlord pays Taxes and/or encapsulation insurance premiums less frequently than monthly, the cost of any Hazardous Materials when same shall not, be included in Operating Expenses but shall be separately calculated, with Tenant being obligated to pay Tenant’s Pro Rata Share of same on the same are located in, on later of five (5) business days after receipt of an invoice from Landlord or about the Building and/or the Real Property ten (10) business days prior to the Commencement Date and was of date Landlord is obligated to pay same to the taxing authority or insurance company.
(g) Provided Tenant shall pay, as an Operating Expense hereunder the additional costs associated with Landlord’s accounting for such a nature that a federalmatters, State then in the event Tenant ceases to occupy (but still leases) the entire Premises or municipal governmental authority, if it had then had knowledge one or more floors of the presence Premises or elects to provide such services or utilities, Tenant shall receive a credit against Rent equal to the cost of such Hazardous Materialselectricity, in the statejanitorial service, water, HVAC and under the conditions that it then existed in the Building or on the Real Property, would have then required the removal of such Hazardous Material or other remedial or containment action with respect thereto; and costs incurred to remove, remedy, contain, or treat Hazardous Material, which Hazardous Material is brought into the Building or onto the Real Property after the date hereof by Landlord or any other tenant of the Real Property and is of such a nature, at that time, that a federal, State or municipal governmental authority, if it had then had knowledge of the presence of such Hazardous Material, in the state, and under the conditions, that it then exists in the Building or on the Real Property, would have then required the removal of such Hazardous Material or other remedial or containment action with respect thereto; Encino Terrace / Research Solutions, Inc. / MK / December 29, 2016 ____ ____ ____ ____ Initial Initial Initial Initial
xx. Payments by Landlord to affiliates of Landlord to the extent the same exceed the variable expenses which would be paid to qualified unaffiliated third parties on an arm’s-length, competitive basis providing goods or services of equal or better quality than the subject affiliates;
xxi. Any bad debt loss, rent loss or reserves for any bad debts, or rent loss; or
xxii. Costs not actually incurred as a result of Landlord’s violation of any applicable law and the remediation of such violations, including, without limitation, the Americans with Disabilities Act of 1990 existing as of the Commencement Date of this Leasevacancy.
Appears in 1 contract
Sources: Sublease Agreement (Responsys Inc)