Utilities Costs. (G) Tax Expenses; (H) costs of repairs or restoration to the extent that such repairs or restoration are necessary as a result of a fire or other casualty, or condemnation, except for commercially reasonable deductible amounts pertaining to any casualty repairs or restoration not exceeding deductible amounts ordinarily obtained by institutional owners of the Comparable Buildings (as defined in the Extension Option Rider); (I) costs of correcting defects in the initial design or construction of the Building or Project; (J) reserves for bad debts or for future improvements, repairs, additions, etc.; (K) costs of acquisition of sculptures, painting and other objects of art; (L) costs, including penalties, fines and associated legal expenses, incurred due to the violation by Landlord or any other tenant in the Project of applicable laws, that would not have been incurred but for any such violations by Landlord or such tenant; (M) costs incurred to comply with applicable laws with respect to the cleanup, removal, investigation and/or remediation (collectively, “Remediation Costs”) of any Hazardous Materials (as defined in Article 5 below) in, on or under the Project and/or the Building to the extent such Hazardous Materials are: (1) in existence as of the Lease Commencement Date and in violation of applicable laws in effect as of the Lease Commencement Date; or (2) introduced onto the Project and/or the Building after the Lease Commencement Date by Landlord or any of Landlord’s agents, employees, contractors or other tenants in violation of applicable laws in effect at the date of introduction; (N) rentals for items (except when needed in connection with normal repairs and maintenance of permanent systems) which if purchased, rather than rented, would constitute a capital improvement not included in Operating Expenses pursuant to this Lease (excluding, however, equipment not affixed to the Building or the Project which is used in providing janitorial or similar services); (O) costs associated with the operation of the business of the partnership or entity which constitutes Landlord as the same are distinguished from the costs of operation of the Building and/or the Project, 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 or the Project, costs of any disputes between Landlord and its employees (if any) not engaged in Building and/or Project operation, disputes of Landlord with Project management, or outside fees paid in connection with disputes with other tenants (except to the extent the expenditure of such outside fees generally benefit all tenants of the Building and Landlord included such category of expenses or similar types of expenses, if actually incurred, in the Expense Base Year); (P) costs of items considered capital improvements, capital repairs, capital replacements, and/or capital equipment (“Capital Items”), all as determined in accordance with standard real estate accounting practices, except as specifically permitted in Sections 4.2.4(ix) and (x) above; (Q) any costs for which Landlord has been reimbursed (other than through the Operating Expenses pass-through provisions of other leases for the Project) or receives a credit, refund or discount; (R) costs of Landlord’s earthquake insurance and flood insurance premiums in excess of those generally being charged to institutional owners of the Comparable Buildings for such insurance; (S) expenses in connection with services or other benefits for which Tenant is charged directly but which are provided to other tenants of the Building or Project at no cost (or are separately reimbursed by such other tenants); (T) interest, penalties or other costs arising out of Landlord’s failure to make timely payment of any of its obligations under this Lease, including, without limitation, Landlord’s failure to make timely payment of any item that is included in Operating Expenses, Tax Expenses or Utilities Costs; and (U) costs arising from the negligence or willful misconduct of Landlord and/or Landlord’s agents, employees and contractors.
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Sources: Lease (Aqua Metals, Inc.)
Utilities Costs. costs to the extent Landlord is reimbursed by any warranties; (G) Tax Expensesleasing commissions, attorneys’ fees or the costs (including permit, license and inspection costs) incurred in constructing, renovating or otherwise improving, repairing, decorating or redecorating rentable space for other tenants or vacant rentable space in the Project; (H) any costs of repairs or restoration to the extent that such repairs legal fees incurred in connection with a dispute with any particular tenant or restoration are necessary as a result of a fire prospective tenant or other casualty, or condemnation, except for commercially reasonable deductible amounts pertaining to any casualty repairs or restoration not exceeding deductible amounts ordinarily obtained by institutional owners occupants of the Comparable Buildings (as defined in the Extension Option Rider)Project; (I) costs of correcting defects in the initial design or construction of the Building or Project; (J) reserves for bad debts or for future improvements, repairs, additions, etc.; (K) costs of acquisition of sculptures, painting and other objects of art; (L) costs, including penalties, fines and associated legal expenses, incurred due to the violation by Landlord or of the terms and conditions of any other tenant lease of space in the Project Project; (J) costs of applicable laws, that would not have been incurred but for any such violations by overhead or profit increment paid to Landlord or to subsidiaries or affiliates of Landlord for services in or in connection with the Project to the extent the same exceeds the costs of overhead and profit increment included in the costs of such tenantservices which could be obtained from third parties on a competitive basis; (K) costs incurred in maintaining, repairing and/or replacing the foundation or the structural portions of the Project and the roof and roof membrane of the Project; (L) costs of selling, financing or refinancing the Project; (M) costs incurred to comply with applicable laws with respect to the cleanupfines, removal, investigation and/or remediation (collectively, “Remediation Costs”) penalties or interest resulting from late payment of any Hazardous Materials (as defined in Article 5 below) in, on Taxes or under the Project and/or the Building to the extent such Hazardous Materials are: (1) in existence as of the Lease Commencement Date and in violation of applicable laws in effect as of the Lease Commencement Date; or (2) introduced onto the Project and/or the Building after the Lease Commencement Date by Landlord or any of Landlord’s agents, employees, contractors or other tenants in violation of applicable laws in effect at the date of introductionOperating Expenses; (N) rentals for items (except when needed in connection with normal repairs and maintenance organization expenses of permanent systems) which if purchased, rather than rented, would constitute a capital improvement not included in Operating Expenses pursuant to this Lease (excluding, however, equipment not affixed to creating or operating the Building or the Project which is used in providing janitorial or similar services)entity that constitutes Landlord; (O) costs associated with the operation of the business of the partnership damages paid to Tenant hereunder or entity which constitutes Landlord as the same are distinguished from the costs of operation of the Building and/or the Project, 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 or the Project, costs of any disputes between Landlord and its employees (if any) not engaged in Building and/or Project operation, disputes of Landlord with Project management, or outside fees paid in connection with disputes with other tenants (except to the extent the expenditure of such outside fees generally benefit all tenants of the Building and Landlord included such category of expenses or similar types of expenses, if actually incurred, in the Expense Base Year); (P) costs of items considered capital improvements, capital repairs, capital replacements, and/or capital equipment (“Capital Items”), all as determined in accordance with standard real estate accounting practices, except as specifically permitted in Sections 4.2.4(ix) and (x) above; (Q) any costs for which Landlord has been reimbursed (other than through the Operating Expenses pass-through provisions of other leases for the Project) or receives a credit, refund or discount; (R) costs of Landlord’s earthquake insurance and flood insurance premiums in excess of those generally being charged to institutional owners of the Comparable Buildings for such insurance; (S) expenses in connection with services or other benefits for which Tenant is charged directly but which are provided to other tenants of the Building Project and/or respective leases; (P) any bad debt loss, rent loss, or reserves for bad debts or rent loss or similar reserves; (Q) the wages and benefits of any employee who does not devote substantially all of his or her employed time to the Project at unless such wages and benefits are prorated to reflect time spent on operating or managing the Project and time spent on matter unrelated to operating and managing the Project, provided, that in no cost event shall Operating Expenses for purposes of this Lease include wages and/or benefits attributable to personnel above the level of Project manager; (R) all items and services which Landlord provides selectively to one or are separately reimbursed by such more tenants (other tenantsthan Tenant); (S) any costs expressly excluded from Operating Expenses elsewhere in this Lease; (T) interestrent for any industrial or office space occupied by the Project management personnel in the Project to the extent the size or rental rate of such industrial or office space exceeds the size of the fair market rental values of industrial or office space occupied by management personnel of comparable projects in the vicinity of the Project, penalties or other costs arising out with adjustment where appropriate for the size of Landlord’s failure to make timely payment of any of its obligations under this Lease, including, without limitation, Landlord’s failure to make timely payment of any item that is included in Operating Expenses, Tax Expenses or Utilities Coststhe applicable project; and (U) costs arising from the negligence or willful misconduct of other tenants of the Project or from the negligence or willful misconduct of Landlord or its employees, agents, contractors, vendors, contractors, or providers of materials or services, including without limitation, the selection of building materials; (V) any costs incurred in connection with the investigation, abatement or remediation of any Hazardous Materials (as defined herein), including without limitation, asbestos; (W) reserves for future expenses; (X) in-house legal and/or accounting fees and costs or concessionaires or attendants at the Project; (Y) costs arising from Landlord’s charitable or political contributions; (AA) costs in connection with upgrading the Project to comply with laws in effect on the Lease Commencement Date (including, but not limited to, the ADA as it is interpreted and enforced as of the Lease Commencement Date) and costs occasioned by the act, omission or violation of any laws by Landlord or its agents, employees or contractors; (BB) costs arising from latent defects in the Building’s or Project’s structure or any Landlord’s Work or the repair thereof; (CC) costs incurred in removing and contractorsstoring the property of former tenants or occupants of the Project; and (DD) art and the entertainment expenses and travel expenses of Landlord, its employees, agents, partners and affiliates. In calculating the Operating Expenses hereunder, no expense shall be charged more than once, nor shall Landlord be entitled to collect in excess of one hundred percent (100%) of the Operating Expenses actually incurred by Landlord from all tenants.
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