Direct Expenses. All direct costs of operation, maintenance, repair and management of the Building (including the amount of any credits which Landlord may grant to particular tenants of the Building in lieu of providing any standard services or paying any standard costs described in this Section 4.1.2 for similar tenants), as determined in accordance with generally accepted accounting principles, including the following costs by way of illustration, but not limitation: water and sewer charges; insurance charges of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building or any part thereof; utility costs, including, but not limited to, the cost of heat, light, power, steam, gas, and waste disposal; the cost of janitorial services; the cost of security and alarm services (including any central station signaling system); window cleaning costs; labor costs; costs and expenses of managing the Building including management fees; air conditioning maintenance costs; elevator maintenance fees and supplies; material costs; equipment costs including the cost of maintenance, repair and service agreements and rental and leasing costs; purchase costs of equipment other than capital items; current rental and leasing costs of items which would be amortizable capital items if purchased; tool costs; licenses, permits and inspection fees; wages and salaries; employee benefits and payroll taxes; accounting and legal fees; any sales, use or service taxes incurred in connection therewith. Direct Expenses shall not include depreciation or amortization of the Building or equipment in the Building except as provided herein, loan principal payments, costs of alterations of tenants’ premises, leasing commissions, interest expenses on long-term borrowings, advertising costs or management salaries for executive personnel other than personnel located at the Building. If, during the Term of this Lease, Landlord shall make a capital expenditure, the total cost of which is not properly includable in Direct Expenses for the Lease Year in which it was made, there shall nevertheless be included in such Direct Expenses for the Lease Year in which it was made and in Direct Expenses for each succeeding Lease Year an annual amount which would amortize such cost over the useful life of the expenditure in question. All such costs shall be amortized over the reasonable life of such expenditures in accordance with such reasonable life and amortization schedules as shall be determined by Landlord in accordance with generally accepted accounting principles, with interest on the unamortized amount at one percent (1%) in excess of the prime lending rate announced from time to time as such by The Northern Trust Company of Chicago, Illinois. Without limiting the generality of the foregoing, Landlord shall be entitled to amortize and include as an additional rental adjustment: (i) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; (ii) fire sprinklers and suppression systems and other life safety systems; and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which were not applicable to the Building at the time it was constructed. The following items are not included in Direct Expenses: 4.1.2.1 Cost of permits, licenses and inspection fees incurred by Landlord to prepare, renovate, repaint, or redecorate any space leased to any existing tenant or prospective tenant of the Building; 4.1.2.2 Advertising and promotional expenditures incurred to lease space to new tenants or retain existing tenants; 4.1.2.3 Legal fees and expenses incurred by Landlord to resolve disputes with tenants; 4.1.2.4 Cost of replacement of any items covered under warranty; 4.1.2.5 Cost to correct or any penalty or fine incurred by Landlord due to Landlord’s violation of any federal, stated or local law or regulation; 4.1.2.6 The Landlord’s general corporate overhead and administrative expenses; 4.1.2.7 Any cost to test, survey, cleanup, contain, ▇▇▇▇▇, remove or otherwise remedy hazardous waste or asbestos containing materials unless they are in or on the Premises due to tenant’s negligence or intentional act; 4.1.2.8 Cost of repairs caused by the Landlord’s negligence; 4.1.2.9 Interest or penalties for any late payments by Landlord; 4.1.2.10 Costs (including, without limitation, attorneys’ fees and disbursements) incurred in connection with any judgment, settlement or arbitration award resulting from any tort liability; 4.1.2.11 Compensation paid to any Building employee to the extent that the same is not fairly allocable to the work or service provided by such employee to the Building; 4.1.2.12 Costs of repairs or replacements incurred by reason of fire or other casualty or caused by the exercise of the right of eminent domain, whether or not insurance proceeds or a condemnation award are recovered or adequate for such purposes (however, deductibles are includable in Direct Expenses); 4.1.2.13 Costs of any heating, ventilating, air conditioning, janitorial or other Building services provided to other tenants during other than Building business hours; 4.1.2.14 Rent or other charges payable under any ground or underlying lease; 4.1.2.15 Costs of any item which are reimbursable to Landlord by other tenants or third parties other than through operating costs pass-through provisions in the leases of other tenants in the Building (if any); 4.1.2.16 Except for normal office equipment and short-term rentals of machines or equipment, lease payments for rented equipment, the cost of which equipment would constitute a capital expenditure if the equipment were to have been purchased (except to the extent that amortization of any such capital expenditure would be permitted as a Direct Expense pursuant to the Lease); 4.1.2.17 The cost of furnishing and installing replacement light bulbs and ballasts in any tenant areas of the Building, excluding the Premises; 4.1.2.18 An amount equal to all amounts received by Landlord through proceeds of insurance to the extent the proceeds are compensation for expenses which (i) previously were included in operating costs hereunder, (ii) are included in operating costs for the comparative year in which the insurance proceeds are received or (iii) will be included as operating costs in a subsequent comparative year; 4.1.2.19 Costs and expenses of governmental licenses and permits, or renewals thereof, unless the same are for governmental licenses or permits normal to the operation or maintenance of the building project; 4.1.2.20 Costs of any work or service performed for any facility or property other than the Building; 4.1.2.21 Any expenses related exclusively to any retail or storage space in, on or about the Building or appurtenant or adjacent thereto; and 4.1.2.22 Costs of electrical energy furnished directly to any Premises of other tenants, or to other rentable areas, of the Building, other than costs of electrical energy for the Building’s HVAC system. All Direct Expenses shall be entirely net of rebates, credits and similar items of which Landlord receives the benefit.”
Appears in 2 contracts
Sources: Lease Agreement (Aspen Aerogels Inc), Lease (Aspen Aerogels Inc)
Direct Expenses. All direct costs of operation, maintenance, repair and management of the Building (including the amount of any credits which Landlord may grant to particular tenants of the Building in lieu of providing any standard services or paying any standard costs described in this Section 4.1.2 for similar tenants, provided that the amount of such credit shall not result in Tenant being required to pay an amount greater than the amount that Tenant would have paid if such tenants had received such standard services and/or paid such standard costs), as determined in accordance with generally accepted accounting principles, including the following costs by way of illustration, but not limitation: water and sewer charges; insurance charges of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building or any part thereof; utility costs, including, but not limited to, ; the cost of heat, light, power, steam, gas, and waste disposal; the cost of janitorial services; the cost of security access control and alarm services (including any central station signaling system)monitoring services; window cleaning costs; labor costs; costs and expenses of managing the Building including management fees (not in excess of fair market management fees); air conditioning maintenance costs; elevator maintenance fees and supplies; material costs; equipment costs including the cost of maintenance, repair and service agreements and rental and leasing costs; purchase costs of equipment other than capital items; current rental and leasing costs of items which would be amortizable capital items if purchased; tool costs; licenses, permits and inspection fees; wages and salaries; employee benefits and payroll taxes; accounting and legal feesfees (provided that accounting and legal fees shall be limited to those relating solely to the ownership, maintenance, management, and operation of the Building and shall not include accounting fees incurred or costs of litigation incurred due to the preparation of tax returns or financial statements [other than any such statements prepared in calculating the Direct Expenses and Taxes], or the late payments of taxes, utility bills and other costs incurred by Landlord’s failure to make such payments when due); any sales, use or service taxes incurred in connection therewith. Direct Expenses shall not include depreciation or amortization of the Building or equipment in the Building except as provided herein, loan principal payments, costs of alterations of tenants’ premises, leasing commissions, interest expenses on long-term borrowings, advertising costs or management salaries for executive personnel other than personnel located at the Building. If, during the Term of this LeaseIn addition, Landlord shall make a capital expenditure, be entitled to amortize and include as Additional Rent: (i) an allocable annual amortized portion of the total cost of capital improvement items which is not properly includable in Direct Expenses for the Lease Year in which it was madeare reasonably calculated to reduce operating expenses; (ii) fire sprinklers and suppression systems and other life safety systems, provided that there shall nevertheless be included in such Direct Expenses for have been a revision, change, or other modification thereto which are required under any governmental laws, regulations or ordinances which were not applicable to the Lease Year in which it was made and in Direct Expenses for each succeeding Lease Year an annual amount which would amortize such cost over the useful life Building as of the expenditure Commencement Date; and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which did not require compliance prior to the Commencement Date, as determined by Landlord in questionits reasonable judgment. All such costs shall be amortized over the reasonable life of such expenditures improvements in accordance with such reasonable life and amortization schedules as shall be determined by Landlord in accordance with generally accepted accounting principles, with interest on the unamortized amount at one percent (1%) in excess of the prime lending rate announced from time to time as such by The Northern Trust Company of Chicago, Illinois, or if The Northern Trust Company is no longer extant, a comparable financial institution selected by Landlord in its sole and absolute discretion. Without limiting the generality Direct Expenses shall not include (1) depreciation or amortization of the foregoing, Landlord shall be entitled to amortize and include Building or equipment in the Building except as an additional rental adjustment: (i) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expensesprovided herein; (ii2) fire sprinklers and suppression systems loan principal payments, costs of alterations of tenants’ premises; (3) leasing commissions; (4) interest expenses on long-term borrowings; (5) advertising costs or management salaries for executive personnel other than personnel located at the Building; (6) utilities and other life safety systems; and (iii) other capital similar expenses which are required under any governmental laws, regulations incurred directly by or ordinances which were not applicable to on behalf of retail tenants in the Building at and electricity expenses for other Building space demised to office tenants which tenants pay for such electricity expenses themselves; (7) services provided and costs incurred in connection with the time it was constructed. The following items are not included in Direct Expenses:
4.1.2.1 Cost operation of permitsretail or other ancillary operations owned, licenses and inspection fees incurred by Landlord to prepare, renovate, repaint, operated or redecorate any space leased to any existing tenant or prospective tenant of the Building;
4.1.2.2 Advertising and promotional expenditures incurred to lease space to new tenants or retain existing tenants;
4.1.2.3 Legal fees and expenses incurred by Landlord to resolve disputes with tenants;
4.1.2.4 Cost of replacement of any items covered under warranty;
4.1.2.5 Cost to correct or any penalty or fine incurred by Landlord due to Landlord’s violation of any federal, stated or local law or regulation;
4.1.2.6 The Landlord’s general corporate overhead and administrative expenses;
4.1.2.7 Any cost to test, survey, cleanup, contain, ▇▇▇▇▇, remove or otherwise remedy hazardous waste or asbestos containing materials unless they are in or on the Premises due to tenant’s negligence or intentional act;
4.1.2.8 Cost of repairs caused by the Landlord’s negligence;
4.1.2.9 Interest or penalties for any late payments subsidized by Landlord;
4.1.2.10 Costs ; (8) costs of a capital nature or which would be capitalized under generally accepted accounting principles, including, without limitation, attorneys’ fees capital improvements or replacements, capital equipment and disbursementscapital tools, all as determined in accordance with generally accepted accounting principles other than the annual amortized amount permitted to be included pursuant to this Section 4.1.2 above; (9) any compensation paid to clerks, attendants or other persons in commercial concessions operated by Landlord or in the parking garage of the Building; (10) costs of the initial construction of the Building; (11) costs of structural repairs to the Building including structural repairs to the roof, curtain wall, foundation, floor slabs (except for normal caulking and maintenance); (12) costs of leasing commissions, legal, space planning, construction, and other expenses incurred in procuring tenants for the Building or with respect to individual tenants or occupants of the Building; (13) any other expenses for which Landlord actually receives reimbursement (or is entitled to receive reimbursement) from insurance, condemnation awards, other tenants or any other third-party source; (14) except as real estate taxes may be increased due to a re-assessment of the Building upon any of such events, costs incurred in connection with the sale, financing, refinancing, mortgaging, selling or change of ownership of the Building; (15) any judgmentcosts, settlement fines or arbitration award resulting from any tort liability;
4.1.2.11 Compensation paid to any Building employee penalties incurred due to the extent that the same is not fairly allocable to the work violation by Landlord of any governmental rule or service provided by such employee to the Building;
4.1.2.12 Costs authority; (16) payments of repairs or replacements incurred by reason of fire principal and interest or other casualty or caused by the exercise of the right of eminent domain, whether or not insurance proceeds or a condemnation award are recovered or adequate for such purposes (however, deductibles are includable in Direct Expenses);
4.1.2.13 Costs of financial charges made on any heating, ventilating, air conditioning, janitorial or other Building services provided to other tenants during other than Building business hours;
4.1.2.14 Rent or other charges payable debt payments made under any ground or underlying lease;
4.1.2.15 Costs of any item which are reimbursable to Landlord by other tenants lease or third parties other than through operating costs pass-through provisions in the leases of other tenants in the Building (if any);
4.1.2.16 Except for normal office equipment and short-term rentals of machines or equipmentleases, lease payments for rented equipment, the cost of which equipment would constitute a capital expenditure if the equipment were to have been purchased (except to the extent that amortization a portion of such rental payments is reasonably allocable to ad valorem real estate taxes, interest charges and increased property values or taxes as a result of such leases; (17) costs incurred to correct violations by Landlord of any such capital expenditure would be permitted law, rule, order or regulation which was in effect as a Direct Expense pursuant of (i) with respect to Suite 200, May 15, 2001, and (ii) with respect to Suite 250, the Lease);
4.1.2.17 The cost Lease Reference Date; (18) costs of furnishing repairing, replacing or otherwise correcting defects (including latent defects) in or inadequacies of (but not the costs of ordinary and installing replacement light bulbs customary repair for normal wear and ballasts tear) the design or construction of the Building or the costs of repairing, replacing or correcting defects in the initial design or construction of any tenant areas improvements, or abating any Hazardous Materials contamination (19) costs or expenses of utilities directly metered to tenants of the Building and payable separately by such tenants; (20) costs incurred in connection with disputes with tenants (including any bad debt loss, rent loss, or reserves therefore), other occupants, or prospective tenants, or costs and expenses incurred in connection with negotiations or disputes with employees, management agents, leasing agents, purchasers or mortgagees of the Building, excluding ; (21) costs of advertising and public relations and promotional costs associated with the Premises;
4.1.2.18 An amount equal to all amounts received by Landlord through proceeds of insurance to the extent the proceeds are compensation for expenses which (i) previously were included in operating costs hereunder, (ii) are included in operating costs for the comparative year in which the insurance proceeds are received promotion or (iii) will be included as operating costs in a subsequent comparative year;
4.1.2.19 Costs and expenses of governmental licenses and permits, or renewals thereof, unless the same are for governmental licenses or permits normal to the operation or maintenance leasing of the building project;
4.1.2.20 Costs Building and costs of any work signs in or service performed for any facility or property other than on the Building;
4.1.2.21 Any expenses related exclusively to any retail or storage space in, on or about Building identifying the owners of the Building or appurtenant or adjacent thereto; and
4.1.2.22 Costs of electrical energy furnished directly to any Premises of other tenants, or to other rentable areas, tenant of the Building, other than ; and (22) costs or expenses of electrical energy for the parking garage servicing the Building’s HVAC system. All Direct Expenses shall be entirely net of rebates, credits and similar items of which Landlord receives the benefit.”
Appears in 1 contract
Direct Expenses. All direct costs of operation, maintenance, repair and management of the Building Project (including the amount of any credits which Landlord may grant to particular tenants of the Building Project in lieu of providing any standard services or paying any standard costs described in this Section 4.1.2 for similar tenants), as determined in accordance with generally accepted accounting principles, including the following costs by way of illustration, but not limitation: repair, replacement, and maintenance of roof, foundation and exterior walls of the buildings (including the Building) in the Project; periodic painting of the buildings (including the Building) of the Project; periodic cleaning of the exterior windows of the buildings (including the Building) in the Project; repair, replacement, operation and maintenance of all common area of the Project (including, without limitation, sweeping, maintenance services, repairs to and replacement of asphalt paving, bumper-s, striping, light bulbs, light standards, monument and directional signs and lighting systems, perimeter walls, retaining walls, sidewalks, planters ' landscaping and sprinkler systems in planting areas); water and sewer charges; insurance charges of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building Project or any part thereof; , utility costs, including, but not limited to, the cost of heat, light, power, steam, gas, and waste disposaldisposal not supplied directly to a tenant; the cost of janitorial servicesservices with respect to all common area of the Project; the cost of security and alarm services (including any central station signaling system)) with respect to all common area of the Project; window cleaning costs; labor costs; costs and expenses of managing the Building Project including management Management fees; air conditioning maintenance costs; elevator maintenance fees and supplies; material costs; equipment costs including the cost of maintenance, repair and service agreements and rental and leasing costs; purchase costs of equipment other than capital items; current rental and leasing costs of items which would be amortizable capital items if purchased; tool costs; licenses, permits and inspection fees; wages and salaries; employee benefits and payroll taxes; accounting and legal fees; any sales, use or service taxes incurred in connection therewith. Landlord and Tenant agree that all capital expenses incurred by Landlord for capital improvements, replacements or equipment to the Project shall be amortized and included as Direct Expenses shall Expenses, except for capital expenses incurred by Landlord after the date of this Lease to bring the Project into compliance with any governmental laws, regulations or ordinances in effect as of such date, where the Project was not include depreciation or amortization in compliance with such governmental laws, regulations and ordinances as of the Building or equipment in the Building except as provided herein, loan principal payments, costs of alterations of tenants’ premises, leasing commissions, interest expenses on long-term borrowings, advertising costs or management salaries for executive personnel other than personnel located at the Building. If, during the Term date of this Lease, Landlord shall make a . All capital expenditure, expenses (to the total cost of which is not properly includable extent included in Direct Expenses for the Lease Year in which it was made, there shall nevertheless be included in such Direct Expenses for the Lease Year in which it was made and in Direct Expenses for each succeeding Lease Year an annual amount which would amortize such cost over the useful life of the expenditure in question. All such costs Expenses) shall be amortized over the reasonable life of such expenditures in accordance with such reasonable life and amortization schedules as shall be determined by Landlord improvements, replacements or equipment in accordance with generally accepted accounting principles, with interest on the unamortized amount at one percent per-cent (1%I%) in excess of the prime lending rate announced from time to time as such by The Northern Trust Company of Chicago, Illinois. Without limiting Notwithstanding any terms to the generality of contrary contained in this Lease, the foregoing, Landlord following shall not be entitled to amortize and include as an additional rental adjustmentincluded within Direct Expenses: (ia) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; (ii) fire sprinklers and suppression systems leasing commissions, attorneys' fees, costs, disbursements and other life safety systems; and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which were not applicable to the Building at the time it was constructed. The following items are not included in Direct Expenses:
4.1.2.1 Cost of permits, licenses and inspection fees incurred by Landlord to prepare, renovate, repaint, or redecorate any space leased to any existing tenant or prospective tenant of the Building;
4.1.2.2 Advertising and promotional expenditures incurred to lease space to new tenants or retain existing tenants;
4.1.2.3 Legal fees and expenses incurred by Landlord to resolve disputes with tenants;
4.1.2.4 Cost of replacement of any items covered under warranty;
4.1.2.5 Cost to correct or any penalty or fine incurred by Landlord due to Landlord’s violation of any federal, stated or local law or regulation;
4.1.2.6 The Landlord’s general corporate overhead and administrative expenses;
4.1.2.7 Any cost to test, survey, cleanup, contain, ▇▇▇▇▇, remove or otherwise remedy hazardous waste or asbestos containing materials unless they are in or on the Premises due to tenant’s negligence or intentional act;
4.1.2.8 Cost of repairs caused by the Landlord’s negligence;
4.1.2.9 Interest or penalties for any late payments by Landlord;
4.1.2.10 Costs (including, without limitation, attorneys’ fees and disbursements) incurred in connection with any judgmentnegotiations or disputes with tenants, settlement or arbitration award resulting from any tort liability;
4.1.2.11 Compensation paid to any Building employee to the extent that the same is not fairly allocable to the work in connection with leasing, renovating, or service provided by such employee to improving space for tenants or other occupants or prospective tenants or other occupants of the Building;
4.1.2.12 Costs of repairs or replacements incurred by reason of fire or other casualty or caused by the exercise of the right of eminent domain, whether or not insurance proceeds or a condemnation award are recovered or adequate for such purposes ; (however, deductibles are includable in Direct Expenses);
4.1.2.13 Costs of any heating, ventilating, air conditioning, janitorial or other Building services provided to other tenants during other than Building business hours;
4.1.2.14 Rent or other charges payable under any ground or underlying lease;
4.1.2.15 Costs of any item which are reimbursable to Landlord by other tenants or third parties other than through operating costs pass-through provisions in the leases of other tenants in the Building (if any);
4.1.2.16 Except for normal office equipment and short-term rentals of machines or equipment, lease payments for rented equipment, b) the cost of any service sold to any tenant (including Tenant) or other occupant for which equipment would constitute Landlord is reimbursed as an additional charge or rental over and above the basic rent and escalations payable under the lease with that tenant; (c) any depreciation on the Building or Project; (d) costs of a capital expenditure if the equipment were to have been purchased (except nature relating to the extent that amortization structural integrity of any such capital expenditure would be permitted as a Direct Expense pursuant to the Lease);
4.1.2.17 The cost of furnishing exterior walls and installing replacement light bulbs and ballasts in any tenant areas foundation of the Building, excluding the Premises;
4.1.2.18 An amount equal to all amounts received unless caused by Landlord through proceeds any improvements or alterations made by or on behalf of insurance Tenant to the extent Premises or the proceeds negligence or willful misconduct of Tenant or any of its employees, agents or contractors; (e) expenses in connection with services or other benefits of a type that are compensation for expenses not provided to Tenant but which (i) previously were included in operating costs hereunder, (ii) are included in operating costs for the comparative year in which the insurance proceeds are received provided another tenant or (iii) will be included as operating costs in a subsequent comparative year;
4.1.2.19 Costs and expenses occupant of governmental licenses and permits, or renewals thereof, unless the same are for governmental licenses or permits normal to the operation or maintenance of the building project;
4.1.2.20 Costs of any work or service performed for any facility or property other than the Building;
4.1.2.21 Any expenses related exclusively to any retail or storage space in, on or about the Building or appurtenant or adjacent thereto; and
4.1.2.22 Costs of electrical energy furnished directly to any Premises of other tenants, or to other rentable areas, of the Building, other than costs of electrical energy for the Building’s HVAC system. All Direct Expenses shall be entirely net of rebates, credits and similar items of which Landlord receives the benefit.”Project;
Appears in 1 contract
Direct Expenses. All direct costs of operation, maintenance, repair and management of the Building (including the amount of any credits which Landlord may grant to particular tenants of the Building in lieu of providing any standard services or paying any standard costs described in this Section 4.1.2 for similar tenants), as determined in accordance with generally accepted accounting principlesprinciples (“GAAP”) or other sound accounting principals consistently used by Landlord, including the following costs by way of illustration, but not limitation: water and sewer charges; insurance charges of or relating to all insurance policies and endorsements deemed required to be maintained by Landlord pursuant to be reasonably necessary or desirable and relating in any manner to the protectionSection 11.2 hereof, preservation, or operation of the Building or any part thereof; utility costs, including, but not limited to, the cost of heat, light, power, steam, gas, and waste disposal; the cost of janitorial services; the cost of security and alarm services (including any central station signaling system)services; window cleaning costs; labor costs; costs and expenses of managing the Building including management feesfees in an amount not to exceed 5% per annum; air conditioning maintenance costs; elevator maintenance fees and supplies; material costs; equipment costs including the cost of maintenance, repair and service agreements and rental and leasing costs; purchase costs of equipment other than capital items; current rental and leasing costs of items which would be amortizable capital items if purchased; tool costs; licenses, permits and inspection fees; wages and salaries; salaries of Landlord employees or agents directly engaged in the operation, maintenance, repair or management of the Building, and employee benefits and reasonable payroll taxestaxes with regard to such Landlord employees; accounting and legal fees; any sales, use or service taxes incurred in connection therewith. Direct Expenses for any year during which average occupancy of the Building is less than one hundred percent (100%) shall be calculated based upon the Direct Expenses that would have been incurred if the Building had an average occupancy of one hundred percent (100%) during the entire calendar year. Direct Expenses shall not include any of the following: capital expenditures not permitted herein; legal fees for enforcing rights under other tenant leases in the Building or in defense of Landlord’s title to the Building; depreciation or amortization of the Building or equipment in the Building except as expressly provided herein, ; loan principal payments, or interest payments or rental payments on any ground or other underlying leases; costs of alterations of tenants’ ' premises, ; leasing commissions, interest expenses on long-term borrowings, ; advertising costs or and marketing costs; management salaries for executive personnel other than personnel located at directly engaged in the operation, maintenance, repair or management of the Building. If, ; interest or penalty charges incurred by Landlord due to the failure to timely pay obligations of Landlord (even if such obligation is reimbursed through Direct Expenses); the costs of Landlord’s compliance with any Environmental Laws or the removal or abatement of any Hazardous Materials from the Premises or the Building (unless such costs arise out of the acts of Tenant during the Term Term); expenses for repair or other work occasioned by fire or other casualty which is covered under the casualty insurance policy described in Section 11.2 hereof; expenses for the replacement of this Leaseany items covered by a manufacturer’s or seller’s warranty; costs of repair to the Premises necessitated by Landlord’s gross negligence or willful misconduct, or of correcting any latent defects or original design defects in the construction of the Building or the materials and equipment used therefor; reserves; salaries of employees of Landlord above the grade of Building manager and/or employees of Landlord whose time is not substantially spent in the management and operation of the Building; new artwork installed in the Building the cost of which exceeds $10,000 in the aggregate; charges for utility services separately metered to particular tenants in the Building; and fees and charges not reasonable and competitive with fees charged by unaffiliated entities for the performance of such services of comparable quality in comparable buildings in the area. In addition, Landlord shall make a capital expenditure, be entitled to amortize and include as an Additional Rental adjustment: (i) an allocable portion of the total cost of capital improvement items which is are reasonably calculated to reduce operating expenses, as may be determined in accordance with GAAP or other applicable sound accounting or administrative practices; (ii) fire sprinklers and suppression systems and other life safety systems; and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which were not properly includable in Direct Expenses for applicable to the Lease Year in which Building at the time it was made, there shall nevertheless be included in such Direct Expenses for the Lease Year in which it was made and in Direct Expenses for each succeeding Lease Year an annual amount which would amortize such cost over the useful life of the expenditure in questionconstructed. All such costs shall be amortized over the reasonable life of such expenditures improvements in accordance with such reasonable life and amortization schedules as shall be determined by Landlord in accordance with generally accepted accounting principles, with interest on the unamortized amount at one percent (1%) in excess of the prime lending rate announced from time to time as such by The Northern Trust Company of Chicago, Illinois. Without limiting the generality of the foregoing, Landlord shall be entitled to amortize and include as an additional rental adjustment: (i) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; (ii) fire sprinklers and suppression systems and other life safety systems; and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which were not applicable to the Building at the time it was constructed. The following items are not included in Direct Expenses:
4.1.2.1 Cost of permits, licenses and inspection fees incurred by Landlord to prepare, renovate, repaint, or redecorate any space leased to any existing tenant or prospective tenant of the Building;
4.1.2.2 Advertising and promotional expenditures incurred to lease space to new tenants or retain existing tenants;
4.1.2.3 Legal fees and expenses incurred by Landlord to resolve disputes with tenants;
4.1.2.4 Cost of replacement of any items covered under warranty;
4.1.2.5 Cost to correct or any penalty or fine incurred by Landlord due to Landlord’s violation of any federal, stated or local law or regulation;
4.1.2.6 The Landlord’s general corporate overhead and administrative expenses;
4.1.2.7 Any cost to test, survey, cleanup, contain, ▇▇▇▇▇, remove or otherwise remedy hazardous waste or asbestos containing materials unless they are in or on the Premises due to tenant’s negligence or intentional act;
4.1.2.8 Cost of repairs caused by the Landlord’s negligence;
4.1.2.9 Interest or penalties for any late payments by Landlord;
4.1.2.10 Costs (including, without limitation, attorneys’ fees and disbursements) incurred in connection with any judgment, settlement or arbitration award resulting from any tort liability;
4.1.2.11 Compensation paid to any Building employee to the extent that the same is not fairly allocable to the work or service provided by such employee to the Building;
4.1.2.12 Costs of repairs or replacements incurred by reason of fire or other casualty or caused by the exercise of the right of eminent domain, whether or not insurance proceeds or a condemnation award are recovered or adequate for such purposes (however, deductibles are includable in Direct Expenses);
4.1.2.13 Costs of any heating, ventilating, air conditioning, janitorial or other Building services provided to other tenants during other than Building business hours;
4.1.2.14 Rent or other charges payable under any ground or underlying lease;
4.1.2.15 Costs of any item which are reimbursable to Landlord by other tenants or third parties other than through operating costs pass-through provisions in the leases of other tenants in the Building (if any);
4.1.2.16 Except for normal office equipment and short-term rentals of machines or equipment, lease payments for rented equipment, the cost of which equipment would constitute a capital expenditure if the equipment were to have been purchased (except to the extent that amortization of any such capital expenditure would be permitted as a Direct Expense pursuant to the Lease);
4.1.2.17 The cost of furnishing and installing replacement light bulbs and ballasts in any tenant areas of the Building, excluding the Premises;
4.1.2.18 An amount equal to all amounts received by Landlord through proceeds of insurance to the extent the proceeds are compensation for expenses which (i) previously were included in operating costs hereunder, (ii) are included in operating costs for the comparative year in which the insurance proceeds are received or (iii) will be included as operating costs in a subsequent comparative year;
4.1.2.19 Costs and expenses of governmental licenses and permits, or renewals thereof, unless the same are for governmental licenses or permits normal to the operation or maintenance of the building project;
4.1.2.20 Costs of any work or service performed for any facility or property other than the Building;
4.1.2.21 Any expenses related exclusively to any retail or storage space in, on or about the Building or appurtenant or adjacent thereto; and
4.1.2.22 Costs of electrical energy furnished directly to any Premises of other tenants, or to other rentable areas, of the Building, other than costs of electrical energy for the Building’s HVAC system. All Direct Expenses shall be entirely net of rebates, credits and similar items of which Landlord receives the benefitChase Bank.”
Appears in 1 contract
Direct Expenses. All direct costs In each calendar year, the aggregate of all reasonable and actual costs, charges and expenses paid by Landlord (less any rebates, reimbursements, refunds and credits received on account of such costs, charges and expenses), obtained at competitive prices, which are directly attributable to the normal and customary operation, maintenance, maintenance and repair and management of the Building (including the amount of any credits which Landlord may grant to particular tenants of the Building in lieu of providing any standard services or paying any standard costs described in this Section 4.1.2 for similar tenants)Building, as determined in accordance with generally accepted accounting principles, consistently applied, including the following costs by way of illustration, but not limitation: water and sewer charges; insurance charges premiums of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building or any part thereof; thereof (but excluding, however, savings attributable to self-insurance by the Landlord), utility costs, costs including, but not limited to, the cost of heat, light, power, steam, gas, and waste disposal; the cost of janitorial services; the cost of security and alarm services (including any central station signaling system)services; window cleaning costs; labor costs; costs and expenses of managing the Building including management fees, provided, however, that such management fees do not exceed five percent (5%) of the gross rent which would be achieved by the Building if the Building were 100% leased at Tenant's rental rate; air conditioning maintenance costs; elevator maintenance fees and supplies; material costs; equipment costs equipments costs, including the cost of maintenance, repair and service agreements and rental and leasing costsagreements; purchase costs of equipment other than capital items; current rental and leasing costs of items which would be amortizable capital items if purchased; tool costs; licenses, permits and inspection fees; wages and salaries; employee benefits and payroll taxes; accounting and legal feesfees for Building operation; any sales, use or service taxes incurred in connection therewith. Direct Expenses shall not include repairs or other work occasioned by fire or other casualty, whether or not the same is covered by insurance; Landlord's cost of services sold to Tenant or provided or sold to others, and for which Landlord is entitled to reimbursement other than through the scheduled payment of rent; except as below, costs incurred by Landlord for alterations which are considered capital improvements and replacements under generally accepted accounting principles, consistently applied; depreciation and amortization, except as taken in connection with costs incurred as provided below; except as provided below, costs of a capital nature, including, without limitation, capital improvements, capital repairs, capital equipment and capital tools; expenses in connection with services or amortization other benefits which are not available to Tenant, or for which Tenant must pay a charge in excess of the scheduled rental payments, but which are provided to another tenant or occupant of the Building; Landlord's general corporate overhead and general administrative expenses; real estate commissions, finder's fees, loan fees or similar charges incurred with respect to any sale, exchange or financing of the Building; costs incurred with the original construction of the Building or equipment any reconstruction, refurbishment or repair of the Building or in connection with any major change in the Building except Building, such as provided herein, loan principal paymentsadding or deleting floors, costs of alterations correcting defects in or inadequacy of tenants’ premisesthe design or construction of the Building, and costs of any equipment, device or capital improvement required by any change in laws, rules, regulations or requirements where such change was in effect on or prior to the Commencement Date, or was reasonably foreseeable as of the Commencement Date; payments of principal, interest or other charges on mortgages, ground rents, and other debt costs, if any; costs of leasing rentable areas in the Building, including advertising, leasing commissions, interest public relations expenses, legal and accounting expenses on long-term borrowingsrelated to lease negotiations or enforcement, advertising and the costs of improving tenant space, including the Premises (including, without limitation, the Tenant Improvement Allowance and Overage as defined in the Work Letter); salaries, wages and other associated costs of building personnel above the rank of building general manager (including principals of Landlord) or management salaries for executive of other offsite personnel other than personnel located at of Landlord or any employee who does not devote substantially all his/her time to the Building. If; costs for which the Landlord is reimbursed by any tenant or occupant of the Building or by Landlord's insurance carrier or any tenant's carrier or by any other third party; costs associated with the operation of the business of the company or entity which constitutes the Landlord, during as the Term same are distinguished from the costs of this Leaseoperation of the Building, Landlord shall make a capital expenditureincluding accounting and legal matters; costs of defending lawsuits with any mortgagee or beneficiary, costs of selling, syndicating, financing, mortgaging or hypothecating any of the Landlord's interest in the Building, 21 costs (including attorneys' fees and costs of settlement judgments and payments in lieu thereof) arising from claims, litigation or arbitrations pertaining to any tenant, the total cost of Landlord, the Building, the Project or the site upon which the Building is not properly includable in Direct Expenses for the Lease Year in which it was madesituated; any other expenses which, there shall nevertheless be included in such Direct Expenses for the Lease Year in which it was made and in Direct Expenses for each succeeding Lease Year an annual amount which would amortize such cost over the useful life of the expenditure in question. All such costs shall be amortized over the reasonable life of such expenditures in accordance with such reasonable life and amortization schedules as shall be determined by Landlord in accordance with generally accepted accounting principles, with interest on consistently applied, would not normally be treated as operating costs by landlords of comparable buildings; any charge not paid or required to be paid by another tenant in the unamortized amount at one percent Project; disproportionate usage of utilities or wear and tear to common facilities by other tenants in the Building; any bad debt loss, rent loss or reserves for bad debts or rent loss; expenses directly resulting from the negligence of Landlord, its agents, servants or employees, and costs incurred because Landlord or another tenant violated the terms of any lease; fines, penalties and interest; all federal income taxes, federal excess profit taxes, franchise taxes and federal estate inheritance or estate taxes; Taxes (1%as hereinafter defined); and the costs of removing Hazardous Materials (including, without limitation, asbestos) in excess of from the prime lending rate announced from time to time as such by The Northern Trust Company of Chicago, IllinoisBuilding. Without limiting the generality of the foregoingIn addition, Landlord shall be entitled to amortize and include as an additional rental adjustment: (i) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; and (ii) fire sprinklers and suppression systems and other life safety systems; . All such costs shall be amortized over the reasonable life of such improvements in accordance with such reasonable life and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which were not applicable to the Building at the time it was constructed. The following items are not included in Direct Expenses:
4.1.2.1 Cost of permits, licenses and inspection fees incurred amortization schedules as shall be determined by Landlord to preparein accordance with generally accepted accounting principles, renovateconsistently applied, repaint, or redecorate any space leased to any existing tenant or prospective tenant with interest on the unamortized amount at one percent (1%) in excess of the Building;
4.1.2.2 Advertising and promotional expenditures incurred to lease space to new tenants prime lending rate announced as such by Bank One, Arizona or retain existing tenants;
4.1.2.3 Legal fees and expenses incurred by Landlord to resolve disputes with tenants;
4.1.2.4 Cost its successor as of replacement February 1st of any items covered under warranty;
4.1.2.5 Cost to correct or any penalty or fine incurred by Landlord due to Landlord’s violation of any federal, stated or local law or regulation;
4.1.2.6 The Landlord’s general corporate overhead and administrative expenses;
4.1.2.7 Any cost to test, survey, cleanup, contain, ▇▇▇▇▇, remove or otherwise remedy hazardous waste or asbestos containing materials unless they are in or on the Premises due to tenant’s negligence or intentional act;
4.1.2.8 Cost of repairs caused by the Landlord’s negligence;
4.1.2.9 Interest or penalties for any late payments by Landlord;
4.1.2.10 Costs (including, without limitation, attorneys’ fees and disbursements) incurred in connection with any judgment, settlement or arbitration award resulting from any tort liability;
4.1.2.11 Compensation paid to any Building employee to the extent that the same is not fairly allocable to the work or service provided by such employee to the Building;
4.1.2.12 Costs of repairs or replacements incurred by reason of fire or other casualty or caused by the exercise of the right of eminent domain, whether or not insurance proceeds or a condemnation award are recovered or adequate for such purposes (however, deductibles are includable in Direct Expenses);
4.1.2.13 Costs of any heating, ventilating, air conditioning, janitorial or other Building services provided to other tenants during other than Building business hours;
4.1.2.14 Rent or other charges payable under any ground or underlying lease;
4.1.2.15 Costs of any item which are reimbursable to Landlord by other tenants or third parties other than through operating costs pass-through provisions in the leases of other tenants in the Building (if any);
4.1.2.16 Except for normal office equipment and short-term rentals of machines or equipment, lease payments for rented equipment, the cost of which equipment would constitute a capital expenditure if the equipment were to have been purchased (except to the extent that amortization of any such capital expenditure would be permitted as a Direct Expense pursuant to the Lease);
4.1.2.17 The cost of furnishing and installing replacement light bulbs and ballasts in any tenant areas of the Building, excluding the Premises;
4.1.2.18 An amount equal to all amounts received by Landlord through proceeds of insurance to the extent the proceeds are compensation for expenses which (i) previously were included in operating costs hereunder, (ii) are included in operating costs for the comparative year in which the insurance proceeds are received or (iii) will be included as operating costs in a subsequent comparative each year;
4.1.2.19 Costs and expenses of governmental licenses and permits, or renewals thereof, unless the same are for governmental licenses or permits normal to the operation or maintenance of the building project;
4.1.2.20 Costs of any work or service performed for any facility or property other than the Building;
4.1.2.21 Any expenses related exclusively to any retail or storage space in, on or about the Building or appurtenant or adjacent thereto; and
4.1.2.22 Costs of electrical energy furnished directly to any Premises of other tenants, or to other rentable areas, of the Building, other than costs of electrical energy for the Building’s HVAC system. All Direct Expenses shall be entirely net of rebates, credits and similar items of which Landlord receives the benefit.”
Appears in 1 contract
Sources: Assignment, Assumption and Novation Agreement (Viasoft Inc /De/)
Direct Expenses. All direct costs of operation, maintenance, repair and management of the Building (including the amount of any credits which Landlord may grant to particular tenants of the Building in lieu of providing any standard services or paying any standard costs described in this Section 4.1.2 for similar tenants), as determined in accordance with generally accepted accounting principles, including the following costs by way of illustration, but not limitation: water and sewer charges; insurance charges of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building or any part thereof; utility costs, including, but not limited to, the cost of heat, light, power, steam, gas, and waste disposal; the cost of janitorial services; the cost of security and alarm services (including any central station signaling system); window cleaning costs; labor costs; costs and expenses of managing the Building including management fees; air conditioning maintenance costs; elevator maintenance fees and supplies; material costs; , equipment costs including the cost of maintenance, repair and service agreements and rental and leasing costs; purchase costs of equipment other than capital items; current rental and leasing costs of items which would be amortizable capital items if purchased; tool costs; licenses, permits and inspection fees; wages and salaries; employee benefits and payroll taxes; accounting and legal fees; any sales, use or service taxes incurred in connection therewith. Direct Expenses shall not include depreciation or amortization of the Building or equipment in the Building except as provided herein, loan principal payments, costs of alterations of tenants’ ' premises, leasing commissions, interest expenses on long-term borrowings, advertising costs or management salaries for executive personnel other than personnel located at the Building. If, during the Term of this LeaseIn addition, Landlord shall make a be entitled to amortize and include as an additional rental adjustment; (i) an allocable portion of the costs of capital expenditureimprovement items which are reasonably calculated to reduce operating expenses; (ii) fire sprinklers and suppression systems and other life safety systems; and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which were not applicable to the total cost of which is not properly includable in Direct Expenses for Building at the Lease Year in which time it was made, there shall nevertheless be included in such Direct Expenses for the Lease Year in which it was made and in Direct Expenses for each succeeding Lease Year an annual amount which would amortize such cost over the useful life of the expenditure in questionconstructed. All such costs shall be amortized over the reasonable life of such expenditures improvements in accordance with such reasonable life and amortization schedules as shall be determined by Landlord in accordance with generally accepted accounting principles, with interest on the unamortized amount at one percent (1%) in excess of the prime lending rate announced from time to time as such by The Northern Trust Company of Chicago, Illinois. Without limiting the generality of the foregoing, Landlord shall be entitled to amortize and include as an additional rental adjustment: (i) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; (ii) fire sprinklers and suppression systems and other life safety systems; and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which were not applicable to the Building at the time it was constructed. The following items are not included in Direct Expenses:
4.1.2.1 Cost of permits, licenses and inspection fees incurred by Landlord to prepare, renovate, repaint, or redecorate any space leased to any existing tenant or prospective tenant of the Building;
4.1.2.2 Advertising and promotional expenditures incurred to lease space to new tenants or retain existing tenants;
4.1.2.3 Legal fees and expenses incurred by Landlord to resolve disputes with tenants;
4.1.2.4 Cost of replacement of any items covered under warranty;
4.1.2.5 Cost to correct or any penalty or fine incurred by Landlord due to Landlord’s violation of any federal, stated or local law or regulation;
4.1.2.6 The Landlord’s general corporate overhead and administrative expenses;
4.1.2.7 Any cost to test, survey, cleanup, contain, ▇▇▇▇▇, remove or otherwise remedy hazardous waste or asbestos containing materials unless they are in or on the Premises due to tenant’s negligence or intentional act;
4.1.2.8 Cost of repairs caused by the Landlord’s negligence;
4.1.2.9 Interest or penalties for any late payments by Landlord;
4.1.2.10 Costs (including, without limitation, attorneys’ fees and disbursements) incurred in connection with any judgment, settlement or arbitration award resulting from any tort liability;
4.1.2.11 Compensation paid to any Building employee to the extent that the same is not fairly allocable to the work or service provided by such employee to the Building;
4.1.2.12 Costs of repairs or replacements incurred by reason of fire or other casualty or caused by the exercise of the right of eminent domain, whether or not insurance proceeds or a condemnation award are recovered or adequate for such purposes (however, deductibles are includable in Direct Expenses);
4.1.2.13 Costs of any heating, ventilating, air conditioning, janitorial or other Building services provided to other tenants during other than Building business hours;
4.1.2.14 Rent or other charges payable under any ground or underlying lease;
4.1.2.15 Costs of any item which are reimbursable to Landlord by other tenants or third parties other than through operating costs pass-through provisions in the leases of other tenants in the Building (if any);
4.1.2.16 Except for normal office equipment and short-term rentals of machines or equipment, lease payments for rented equipment, the cost of which equipment would constitute a capital expenditure if the equipment were to have been purchased (except to the extent that amortization of any such capital expenditure would be permitted as a Direct Expense pursuant to the Lease);
4.1.2.17 The cost of furnishing and installing replacement light bulbs and ballasts in any tenant areas of the Building, excluding the Premises;
4.1.2.18 An amount equal to all amounts received by Landlord through proceeds of insurance to the extent the proceeds are compensation for expenses which (i) previously were included in operating costs hereunder, (ii) are included in operating costs for the comparative year in which the insurance proceeds are received or (iii) will be included as operating costs in a subsequent comparative year;
4.1.2.19 Costs and expenses of governmental licenses and permits, or renewals thereof, unless the same are for governmental licenses or permits normal to the operation or maintenance of the building project;
4.1.2.20 Costs of any work or service performed for any facility or property other than the Building;
4.1.2.21 Any expenses related exclusively to any retail or storage space in, on or about the Building or appurtenant or adjacent thereto; and
4.1.2.22 Costs of electrical energy furnished directly to any Premises of other tenants, or to other rentable areas, of the Building, other than costs of electrical energy for the Building’s HVAC system. All Direct Expenses shall be entirely net of rebates, credits and similar items of which Landlord receives the benefit.”
Appears in 1 contract
Sources: Lease (Sitek Inc)
Direct Expenses. All direct costs of operation, maintenance, repair and management of the Building (including the amount of any credits which Landlord may grant to particular tenants of the Building in lieu of providing any standard services or paying any standard costs described in this Section 4.1.2 for similar tenants), as determined in accordance with generally accepted accounting principles, including the following costs by way of illustration, but not limitation: water and sewer charges; insurance charges of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably necessary or reasonably desirable and relating in any manner to the protection, preservation, or operation of the Building or any part thereof; utility costs, including, but not limited to, the cost of heat, light, power, steam, gas, and waste disposal; the cost of janitorial services; the cost of security and alarm services (including any central station signaling system); window cleaning costs; labor costs; costs and expenses of managing the Building including commercially-reasonable and competitively-priced management fees; air conditioning maintenance costs; elevator maintenance fees and supplies; material costs; equipment costs including the cost of maintenance, repair and service agreements and rental and leasing costs; purchase costs of equipment other than capital items; current rental and leasing costs of items which would be amortizable capital items if purchased; tool costs; licenses, permits and inspection fees; wages and salaries; employee benefits and payroll taxes; reasonable accounting and legal fees; any sales, use or service taxes incurred in connection therewith. Direct Expenses shall not include depreciation or amortization of the Building or equipment in the Building except as provided herein, loan principal payments, costs of alterations of tenants’ ' premises, leasing commissions, interest expenses on long-term borrowingsand amortization of debt, advertising costs or management salaries for executive personnel other than off-site personnel located at directly engaged in the Building. Ifmanagement, during the Term of this Lease, Landlord shall make a capital expenditure, the total cost of which is not properly includable in Direct Expenses for the Lease Year in which it was made, there shall nevertheless be included in such Direct Expenses for the Lease Year in which it was made operation and in Direct Expenses for each succeeding Lease Year an annual amount which would amortize such cost over the useful life maintenance of the expenditure in question. All Building and further provided that all costs of such costs personnel working on projects other than the Building shall be amortized over the reasonable life of such expenditures in accordance with such reasonable life and amortization schedules as shall be determined by Landlord in accordance with generally accepted accounting principles, with interest on the unamortized amount at one percent (1%) in excess of the prime lending rate announced from time limited to time as such by The Northern Trust Company of Chicago, Illinoisan equitable allocation. Without limiting the generality of the foregoingIn addition, Landlord shall be entitled to amortize and include as an additional rental adjustment: (i) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; (ii) fire sprinklers and suppression systems and other life safety systems; and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which were not applicable to the Building at the time it was constructed. The following items are not included All such costs shall be amortized over the reasonable life of such improvements in Direct Expenses:
4.1.2.1 Cost of permits, licenses accordance with such reasonable life and inspection fees incurred amortization schedules as shall be determined by Landlord to preparein accordance with generally accepted accounting principles, renovate, repaint, or redecorate any space leased to any existing tenant or prospective tenant with interest on the unamortized amount at one percent (1%) in excess of the Building;
4.1.2.2 Advertising and promotional expenditures incurred prime lending rate announced from time to lease space to new tenants or retain existing tenants;
4.1.2.3 Legal fees and expenses incurred time as such by Landlord to resolve disputes with tenants;
4.1.2.4 Cost The Northern Trust Company of replacement of any items covered under warranty;
4.1.2.5 Cost to correct or any penalty or fine incurred by Landlord due to Landlord’s violation of any federalChicago, stated or local law or regulation;
4.1.2.6 The Landlord’s general corporate overhead and administrative expenses;
4.1.2.7 Any cost to test, survey, cleanup, contain, ▇▇▇▇▇, remove or otherwise remedy hazardous waste or asbestos containing materials unless they are in or on the Premises due to tenant’s negligence or intentional act;
4.1.2.8 Cost of repairs caused by the Landlord’s negligence;
4.1.2.9 Interest or penalties for any late payments by Landlord;
4.1.2.10 Costs (including, without limitation, attorneys’ fees and disbursements) incurred in connection with any judgment, settlement or arbitration award resulting from any tort liability;
4.1.2.11 Compensation paid to any Building employee to the extent that the same is not fairly allocable to the work or service provided by such employee to the Building;
4.1.2.12 Costs of repairs or replacements incurred by reason of fire or other casualty or caused by the exercise of the right of eminent domain, whether or not insurance proceeds or a condemnation award are recovered or adequate for such purposes (however, deductibles are includable in Direct Expenses);
4.1.2.13 Costs of any heating, ventilating, air conditioning, janitorial or other Building services provided to other tenants during other than Building business hours;
4.1.2.14 Rent or other charges payable under any ground or underlying lease;
4.1.2.15 Costs of any item which are reimbursable to Landlord by other tenants or third parties other than through operating costs pass-through provisions in the leases of other tenants in the Building (if any);
4.1.2.16 Except for normal office equipment and short-term rentals of machines or equipment, lease payments for rented equipment, the cost of which equipment would constitute a capital expenditure if the equipment were to have been purchased (except to the extent that amortization of any such capital expenditure would be permitted as a Direct Expense pursuant to the Lease);
4.1.2.17 The cost of furnishing and installing replacement light bulbs and ballasts in any tenant areas of the Building, excluding the Premises;
4.1.2.18 An amount equal to all amounts received by Landlord through proceeds of insurance to the extent the proceeds are compensation for expenses which (i) previously were included in operating costs hereunder, (ii) are included in operating costs for the comparative year in which the insurance proceeds are received or (iii) will be included as operating costs in a subsequent comparative year;
4.1.2.19 Costs and expenses of governmental licenses and permits, or renewals thereof, unless the same are for governmental licenses or permits normal to the operation or maintenance of the building project;
4.1.2.20 Costs of any work or service performed for any facility or property other than the Building;
4.1.2.21 Any expenses related exclusively to any retail or storage space in, on or about the Building or appurtenant or adjacent thereto; and
4.1.2.22 Costs of electrical energy furnished directly to any Premises of other tenants, or to other rentable areas, of the Building, other than costs of electrical energy for the Building’s HVAC system. All Direct Expenses shall be entirely net of rebates, credits and similar items of which Landlord receives the benefitIllinois.”
Appears in 1 contract
Sources: Lease (Gamestop Corp)
Direct Expenses. All direct costs of operation, maintenance, repair and management of the Building (including the amount of any credits which Landlord may grant to particular tenants of the Building in lieu of providing any standard services or paying any standard costs described in this Section 4.1.2 for similar tenants), as determined in accordance with generally accepted accounting principles, including the following costs by way of illustration, but not limitation: water and sewer charges; insurance charges of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building or any part thereof; utility costs, including, but not limited to, the cost of heat, light, power, steam, gas, and waste disposal; the cost of janitorial services; the cost of security and alarm services (including any central station signaling system); window cleaning costs; labor costs; costs and expenses of managing the Building including management fees; air conditioning maintenance costs; elevator maintenance fees and supplies; material costs; equipment costs including the cost of maintenance, repair and service agreements and rental and leasing costs; purchase costs of equipment other than capital items; current rental and leasing costs of items which would be amortizable capital items if purchased; tool costs; licenses, permits and inspection fees; wages and salaries; employee benefits and payroll taxes; accounting and legal fees; any sales, use or service taxes incurred in connection therewith. Direct Expenses shall not include depreciation or amortization of the Building or equipment in the Building except as provided herein, loan principal payments, costs of alterations of tenants’ premises, leasing commissions, interest expenses on long-term borrowings, advertising costs or management salaries for executive personnel other than personnel located at the Building. If, during the Term of this Lease, Landlord shall make a capital expenditure, the total cost of which is not properly includable in Direct Expenses for the Lease Year in which it was made, there shall nevertheless be included in such Direct Expenses for the Lease Year in which it was made and in Direct Expenses for each succeeding Lease Year an annual amount which would amortize such cost over the useful life of the expenditure in question. All such costs shall be amortized over the reasonable life of such expenditures in accordance with such reasonable life and amortization schedules as shall be determined by Landlord in accordance with generally accepted accounting principles, with interest on the unamortized amount at one percent (1%) in excess of the prime lending rate announced from time to time as such by The Northern Trust Company of Chicago, Illinois. Without limiting the generality of the foregoingIn addition, Landlord shall be entitled to amortize and include as an additional rental adjustment: (i) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; (ii) fire sprinklers and suppression systems and other life safety systems; and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which were not applicable to the Building at the time it was constructed. The following items are not included in Direct Expenses:
4.1.2.1 Cost All such costs shall be amortized over the reasonable life of permits, licenses such improvements in. accordance with such reasonable life and inspection fees incurred amortization schedules as shall be determined by Landlord to preparein accordance with generally accepted accounting principles, renovate, repaint, or redecorate any space leased to any existing tenant or prospective tenant with interest on the unamortized amount at one percent (1%) in excess of the Building;
4.1.2.2 Advertising and promotional expenditures incurred prime lending rate announced from time to lease space to new tenants or retain existing tenants;
4.1.2.3 Legal fees and expenses incurred time as such by Landlord to resolve disputes with tenants;
4.1.2.4 Cost The Northern Trust Company of replacement of any items covered under warranty;
4.1.2.5 Cost to correct or any penalty or fine incurred by Landlord due to Landlord’s violation of any federalChicago, stated or local law or regulation;
4.1.2.6 The Landlord’s general corporate overhead and administrative expenses;
4.1.2.7 Any cost to test, survey, cleanup, contain, ▇▇▇▇▇, remove or otherwise remedy hazardous waste or asbestos containing materials unless they are in or on the Premises due to tenant’s negligence or intentional act;
4.1.2.8 Cost of repairs caused by the Landlord’s negligence;
4.1.2.9 Interest or penalties for any late payments by Landlord;
4.1.2.10 Costs (including, without limitation, attorneys’ fees and disbursements) incurred in connection with any judgment, settlement or arbitration award resulting from any tort liability;
4.1.2.11 Compensation paid to any Building employee to the extent that the same is not fairly allocable to the work or service provided by such employee to the Building;
4.1.2.12 Costs of repairs or replacements incurred by reason of fire or other casualty or caused by the exercise of the right of eminent domain, whether or not insurance proceeds or a condemnation award are recovered or adequate for such purposes (however, deductibles are includable in Direct Expenses);
4.1.2.13 Costs of any heating, ventilating, air conditioning, janitorial or other Building services provided to other tenants during other than Building business hours;
4.1.2.14 Rent or other charges payable under any ground or underlying lease;
4.1.2.15 Costs of any item which are reimbursable to Landlord by other tenants or third parties other than through operating costs pass-through provisions in the leases of other tenants in the Building (if any);
4.1.2.16 Except for normal office equipment and short-term rentals of machines or equipment, lease payments for rented equipment, the cost of which equipment would constitute a capital expenditure if the equipment were to have been purchased (except to the extent that amortization of any such capital expenditure would be permitted as a Direct Expense pursuant to the Lease);
4.1.2.17 The cost of furnishing and installing replacement light bulbs and ballasts in any tenant areas of the Building, excluding the Premises;
4.1.2.18 An amount equal to all amounts received by Landlord through proceeds of insurance to the extent the proceeds are compensation for expenses which (i) previously were included in operating costs hereunder, (ii) are included in operating costs for the comparative year in which the insurance proceeds are received or (iii) will be included as operating costs in a subsequent comparative year;
4.1.2.19 Costs and expenses of governmental licenses and permits, or renewals thereof, unless the same are for governmental licenses or permits normal to the operation or maintenance of the building project;
4.1.2.20 Costs of any work or service performed for any facility or property other than the Building;
4.1.2.21 Any expenses related exclusively to any retail or storage space in, on or about the Building or appurtenant or adjacent thereto; and
4.1.2.22 Costs of electrical energy furnished directly to any Premises of other tenants, or to other rentable areas, of the Building, other than costs of electrical energy for the Building’s HVAC system. All Direct Expenses shall be entirely net of rebates, credits and similar items of which Landlord receives the benefitIllinois.”
Appears in 1 contract
Sources: Lease (Globalwise Investments Inc)
Direct Expenses. All direct costs of operation, maintenance, repair and management of the Building (including the reasonable amount of any credits which Landlord may grant to particular tenants of the Building in lieu of providing any standard services or paying any standard costs described in this Section 4.1.2 for similar tenants), as determined in accordance with generally accepted accounting principles, including the following costs by way of illustration, but not limitation: water and sewer charges; insurance charges premiums of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building or any part thereofthereof and if Landlord self insures or carries deductibles in excess of $2,000.00, amounts equal to the savings in premiums effected thereby as reasonably determined by Landlord; utility costs, including, but not limited to, the cost of heat, light, power, steam, gas, and waste disposal; the cost of janitorial services; the cost of security and alarm services (including any central station signaling system)services; window cleaning costs; labor costs; costs and expenses of managing the Building including management fees; air conditioning maintenance costs; elevator maintenance fees and supplies; material costs; equipment costs including the cost of maintenance, repair and service agreements and rental and leasing costs; purchase costs of equipment other than capital items; current rental and leasing costs of items which would be amortizable capital items if purchased; tool costs; licenses, permits and inspection fees; wages and salaries; employee benefits and payroll taxes; accounting and legal fees; any sales, use or service taxes incurred in connection therewith. Direct Expenses shall not include depreciation or amortization of the Building or equipment in the Building except as provided herein, loan principal payments, costs of alterations of tenants’ premises, leasing commissions, interest expenses on long-term borrowings, advertising costs or management salaries for executive personnel other than personnel located at the Building. If, during the Term of this Lease, Landlord shall make a capital expenditure, the total cost of which is not properly includable in Direct Expenses for the Lease Year in which it was made, there shall nevertheless be included in such Direct Expenses for the Lease Year in which it was made and in Direct Expenses for each succeeding Lease Year an annual amount which would amortize such cost over the useful life of the expenditure in question. All such costs shall be amortized over the reasonable life of such expenditures in accordance with such reasonable life and amortization schedules as shall be determined by Landlord in accordance with generally accepted accounting principles, with interest on the unamortized amount at one percent (1%) in excess of the prime lending rate announced from time to time as such by The Northern Trust Company of Chicago, Illinois. Without limiting the generality of the foregoing, Landlord shall be entitled to amortize and include as an additional rental adjustment: (i) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; (ii) fire sprinklers and suppression systems and other life safety systems; and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which were not applicable to the Building at the time it was constructed. The following items are not included in Direct Expenses:
4.1.2.1 Cost of permits, licenses and inspection fees incurred by Landlord to prepare, renovate, repaint, or redecorate any space leased to any existing tenant or prospective tenant of the Building;
4.1.2.2 Advertising and promotional expenditures incurred to lease space to new tenants or retain existing tenants;
4.1.2.3 Legal fees and expenses incurred by Landlord to resolve disputes with tenants;
4.1.2.4 Cost of replacement of any items covered under warranty;
4.1.2.5 Cost to correct or any penalty or fine incurred by Landlord due to Landlord’s violation of any federal, stated or local law or regulation;
4.1.2.6 The Landlord’s general corporate overhead and administrative expenses;
4.1.2.7 Any cost to test, survey, cleanup, contain, ▇▇▇▇▇, remove or otherwise remedy hazardous waste or asbestos containing materials unless they are in or on the Premises due to tenant’s negligence or intentional act;
4.1.2.8 Cost of repairs caused by the Landlord’s negligence;
4.1.2.9 Interest or penalties for any late payments by Landlord;
4.1.2.10 Costs (including, without limitation, attorneys’ fees and disbursements) incurred in connection with any judgment, settlement or arbitration award resulting from any tort liability;
4.1.2.11 Compensation paid to any Building employee to the extent that the same is not fairly allocable to the work or service provided by such employee to the Building;
4.1.2.12 Costs of repairs or replacements incurred by reason of fire or other casualty or caused by the exercise of the right of eminent domain, whether or not insurance proceeds or a condemnation award are recovered or adequate for such purposes (however, deductibles are includable in Direct Expenses);
4.1.2.13 Costs of any heating, ventilating, air conditioning, janitorial or other Building services provided to other tenants during other than Building business hours;
4.1.2.14 Rent or other charges payable under any ground or underlying lease;
4.1.2.15 Costs of any item which are reimbursable to Landlord by other tenants or third parties other than through operating costs pass-through provisions in the leases of other tenants in the Building (if any);
4.1.2.16 Except for normal office equipment and short-term rentals of machines or equipment, lease payments for rented equipment, the cost of which equipment would constitute a capital expenditure if the equipment were to have been purchased (except to the extent that amortization of any such capital expenditure would be permitted as a Direct Expense pursuant to the Lease);
4.1.2.17 The cost of furnishing and installing replacement light bulbs and ballasts in any tenant areas of the Building, excluding the Premises;
4.1.2.18 An amount equal to all amounts received by Landlord through proceeds of insurance to the extent the proceeds are compensation for expenses which (i) previously were included in operating costs hereunder, (ii) are included in operating costs for the comparative year in which the insurance proceeds are received or (iii) will be included as operating costs in a subsequent comparative year;
4.1.2.19 Costs and expenses of governmental licenses and permits, or renewals thereof, unless the same are for governmental licenses or permits normal to the operation or maintenance of the building project;
4.1.2.20 Costs of any work or service performed for any facility or property other than the Building;
4.1.2.21 Any expenses related exclusively to any retail or storage space in, on or about the Building or appurtenant or adjacent thereto; and
4.1.2.22 Costs of electrical energy furnished directly to any Premises of other tenants, or to other rentable areas, of the Building, other than costs of electrical energy for the Building’s HVAC system. All Direct Expenses shall be entirely net of rebates, credits and similar items of which Landlord receives the benefit.”
Appears in 1 contract
Sources: Assumption and Attornment Agreement (Archipelago Holdings L L C)
Direct Expenses. All direct costs of operation, maintenance, repair and management of the Building (including the amount of any credits which Landlord may grant to particular tenants of the Building in lieu of providing any standard services or paying any standard costs described in this Section 4.1.2 for similar tenants), as determined in accordance with generally accepted accounting principles, including the following costs by way of illustration, but not limitation: water and sewer charges; insurance charges of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building or any part thereof; utility costs, including, but not limited to, the cost of heat, light, power, steam, gas, and waste disposal; the cost of janitorial services; the cost of security and alarm services (including any central station signaling system)services; window cleaning costs; labor costscosts (including Landlord's employees at Landlord's then standard hourly charge for time spent at the Building); costs and expenses of managing the Building including management feesfees (at the rate of 2% of Annual Rent); air conditioning maintenance costs; elevator maintenance fees and supplies; material costs; equipment costs including the cost of maintenance, repair and service agreements and rental and leasing costs; purchase costs of equipment other than capital items; current rental and leasing costs of items which would be amortizable capital items if purchased; tool costs; licenses, permits and inspection fees; wages and wages, salaries; employee benefits and payroll taxestaxes (at Landlord's then standard rates for time spent at the Building); accounting and legal fees; any sales, use or service taxes incurred in connection therewith. Direct Expenses shall not include depreciation or amortization of the Building or equipment in the Building except as provided herein, loan principal payments, costs of alterations of tenants’ ' premises, leasing commissions, interest expenses on long-term borrowings, advertising costs or management salaries for executive personnel other than personnel located at the Building. If, during the Term of this Lease, Landlord shall make a capital expenditure, the total cost of which is not properly includable in Direct Expenses for the Lease Year in which it was made, there shall nevertheless be included in such Direct Expenses for the Lease Year in which it was made and in Direct Expenses for each succeeding Lease Year an annual amount which would amortize such cost over the useful life of the expenditure in question. All such costs shall be amortized over the reasonable life of such expenditures in accordance with such reasonable life and amortization schedules as shall be determined by Landlord in accordance with generally accepted accounting principles, with interest on the unamortized amount at one percent (1%) in excess of the prime lending rate announced from time to time as such by The Northern Trust Company of Chicago, Illinois. Without limiting the generality of the foregoingIn addition, Landlord shall be entitled to amortize and include as an additional rental adjustment: (i) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; (ii) fire sprinklers and suppression systems and other life safety systems; and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which were not applicable to the Building at the time it was constructed. The following items are not included All such costs shall be amortized over the reasonable life of such improvements in Direct Expenses:
4.1.2.1 Cost of permits, licenses accordance with such reasonable life and inspection fees incurred amortization schedules as shall be determined by Landlord in accordance with generally accepted accounting principles, with interest on the unamortized amount at one percent (1%) in excess of the prime lending rate announced from time to preparetime as such by The Northern Trust Company of Chicago, renovateIllinois. Landlord will, repaintat Tenant's request, provide Tenant on or redecorate before December 1 of any space leased year during the Term with a budget of expected Direct Expenses for the following year for Tenant's approval and will consult with Tenant thereafter concerning the budget. Tenant agrees that its approval will not be unreasonably withheld or delayed. If Landlord and Tenant cannot agree on the budget, Landlord may proceed on the basis of its original budget proposal (as it may have been modified in the course of consultations with Tenant) provided the budgeted Direct Expenses on a per square foot basis are reasonably equivalent to any existing tenant or prospective tenant similar charges for other comparable buildings in the market area of the Building;
4.1.2.2 Advertising and promotional expenditures incurred to lease space to new tenants or retain existing tenants;
4.1.2.3 Legal fees and expenses incurred by . Once approved, Landlord to resolve disputes with tenants;
4.1.2.4 Cost of replacement of any items covered under warranty;
4.1.2.5 Cost to correct or any penalty or fine incurred by Landlord due to Landlord’s violation of any federal, stated or local law or regulation;
4.1.2.6 The Landlord’s general corporate overhead and administrative expenses;
4.1.2.7 Any cost to test, survey, cleanup, contain, ▇▇▇▇▇, remove or otherwise remedy hazardous waste or asbestos containing materials unless they are in or on may not exceed the Premises due to tenant’s negligence or intentional act;
4.1.2.8 Cost of repairs caused by the Landlord’s negligence;
4.1.2.9 Interest or penalties for any late payments by Landlord;
4.1.2.10 Costs (including, without limitation, attorneys’ fees and disbursements) incurred in connection with any judgment, settlement or arbitration award resulting from any tort liability;
4.1.2.11 Compensation paid to any Building employee to the extent that the same is not fairly allocable to the work or service provided by such employee to the Building;
4.1.2.12 Costs of repairs or replacements incurred by reason of fire or other casualty or caused by the exercise of the right of eminent domain, whether or not insurance proceeds or a condemnation award are recovered or adequate for such purposes (however, deductibles are includable in Direct Expenses);
4.1.2.13 Costs of any heating, ventilating, air conditioning, janitorial or other Building services provided to other tenants during other than Building business hours;
4.1.2.14 Rent or other charges payable under any ground or underlying lease;
4.1.2.15 Costs of any item which are reimbursable to Landlord by other tenants or third parties other than through operating costs pass-through provisions in the leases of other tenants in the Building (if any);
4.1.2.16 Except for normal office equipment and short-term rentals of machines or equipment, lease payments for rented equipment, the cost of which equipment would constitute a capital expenditure if the equipment were to have been purchased (except to the extent that amortization of any such capital expenditure would be permitted as a Direct Expense pursuant to the Lease);
4.1.2.17 The cost of furnishing and installing replacement light bulbs and ballasts in any tenant areas of the Building, excluding the Premises;
4.1.2.18 An amount equal to all amounts received by Landlord through proceeds of insurance to the extent the proceeds are compensation for expenses which (i) previously were included in operating costs hereunder, (ii) are included in operating costs for the comparative year in which the insurance proceeds are received or (iii) will be included as operating costs in a subsequent comparative year;
4.1.2.19 Costs and expenses of governmental licenses and permits, or renewals thereof, unless the same are for governmental licenses or permits normal to the operation or maintenance of the building project;
4.1.2.20 Costs of any work or service performed for any facility or property other than the Building;
4.1.2.21 Any expenses related exclusively to any retail or storage space in, on or about the Building or appurtenant or adjacent thereto; and
4.1.2.22 Costs of electrical energy furnished directly to any Premises of other tenants, or to other rentable areas, of the Building, other than costs of electrical energy for the Building’s HVAC system. All total budgeted Direct Expenses shall by more than 5% without the approval of Tenant, which approval will not be entirely net of rebates, credits and similar items of which Landlord receives the benefitunreasonably withheld or delayed.”
Appears in 1 contract
Sources: Lease (Aksys LTD)
Direct Expenses. All direct costs of operation, maintenance, repair and management of the Building (including the amount of any credits which Landlord may grant to particular tenants of the Building in lieu of providing any standard services or paying any standard costs described in this Section 4.1.2 4.1.2. for similar tenants), as determined in accordance with generally accepted accounting principles, including the following costs by way of illustration, but not limitation: water and sewer charges; insurance charges of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building or any part thereof; association fees and charges assessed Landlord pursuant to the CC&R; utility costs, including, but not limited to, the cost of heat, light, power, steam, gas, and waste disposal; the cost of janitorial services; the cost of security and alarm services (including any central station signaling system)services; window cleaning costs; labor costs; costs and expenses of managing the Building including management fees; air conditioning maintenance costs; elevator maintenance fees and supplies; material costs; equipment costs including the cost of maintenance, repair and service agreements and rental and leasing costs; purchase costs of equipment other than capital items; current rental and leasing costs of items which would be amortizable capital items if purchased; tool costs; licenses, permits and inspection fees; wages and salaries; employee benefits and payroll taxes; accounting and legal fees; any sales, use or service taxes incurred in connection therewith. Direct Expenses shall not include depreciation or amortization of the Building or equipment in the Building except as provided herein, loan principal payments, costs of alterations of tenants’ premises, leasing commissions, interest expenses on long-term borrowings, advertising costs or management salaries for executive personnel other than personnel located at the Building. If, during the Term of this Lease, Landlord shall make a capital expenditure, the total cost of which is not properly includable in Direct Expenses for the Lease Year in which it was made, there shall nevertheless be included in such Direct Expenses for the Lease Year in which it was made and in Direct Expenses for each succeeding Lease Year an annual amount which would amortize such cost over the useful life of the expenditure in question. All such costs shall be amortized over the reasonable life of such expenditures in accordance with such reasonable life and amortization schedules as shall be determined by Landlord in accordance with generally accepted accounting principles, with interest on the unamortized amount at one percent (1%) in excess of the prime lending rate announced from time to time as such by The Northern Trust Company of Chicago, Illinois. Without limiting the generality of the foregoingIn addition, Landlord shall be entitled to amortize and include as an additional rental adjustment: (i) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; (ii) fire sprinklers and suppression systems and other life safety systems; and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which were not applicable to the Building at the time it was constructed. The following items are not included All such costs shall be amortized over the reasonable life of such improvements in Direct Expenses:
4.1.2.1 Cost of permits, licenses accordance with such reasonable life and inspection fees incurred amortization schedules as shall be determined by Landlord to preparein accordance with generally accepted accounting principles, renovate, repaint, or redecorate any space leased to any existing tenant or prospective tenant with interest on the unamortized amount at one percent (1%) in excess of the Building;
4.1.2.2 Advertising and promotional expenditures incurred prime lending rate announced from time to lease space to new tenants or retain existing tenants;
4.1.2.3 Legal fees and expenses incurred time as such by Landlord to resolve disputes with tenants;
4.1.2.4 Cost The Northern Trust Company of replacement of any items covered under warranty;
4.1.2.5 Cost to correct or any penalty or fine incurred by Landlord due to Landlord’s violation of any federalChicago, stated or local law or regulation;
4.1.2.6 The Landlord’s general corporate overhead and administrative expenses;
4.1.2.7 Any cost to test, survey, cleanup, contain, ▇▇▇▇▇, remove or otherwise remedy hazardous waste or asbestos containing materials unless they are in or on the Premises due to tenant’s negligence or intentional act;
4.1.2.8 Cost of repairs caused by the Landlord’s negligence;
4.1.2.9 Interest or penalties for any late payments by Landlord;
4.1.2.10 Costs (including, without limitation, attorneys’ fees and disbursements) incurred in connection with any judgment, settlement or arbitration award resulting from any tort liability;
4.1.2.11 Compensation paid to any Building employee to the extent that the same is not fairly allocable to the work or service provided by such employee to the Building;
4.1.2.12 Costs of repairs or replacements incurred by reason of fire or other casualty or caused by the exercise of the right of eminent domain, whether or not insurance proceeds or a condemnation award are recovered or adequate for such purposes (however, deductibles are includable in Direct Expenses);
4.1.2.13 Costs of any heating, ventilating, air conditioning, janitorial or other Building services provided to other tenants during other than Building business hours;
4.1.2.14 Rent or other charges payable under any ground or underlying lease;
4.1.2.15 Costs of any item which are reimbursable to Landlord by other tenants or third parties other than through operating costs pass-through provisions in the leases of other tenants in the Building (if any);
4.1.2.16 Except for normal office equipment and short-term rentals of machines or equipment, lease payments for rented equipment, the cost of which equipment would constitute a capital expenditure if the equipment were to have been purchased (except to the extent that amortization of any such capital expenditure would be permitted as a Direct Expense pursuant to the Lease);
4.1.2.17 The cost of furnishing and installing replacement light bulbs and ballasts in any tenant areas of the Building, excluding the Premises;
4.1.2.18 An amount equal to all amounts received by Landlord through proceeds of insurance to the extent the proceeds are compensation for expenses which (i) previously were included in operating costs hereunder, (ii) are included in operating costs for the comparative year in which the insurance proceeds are received or (iii) will be included as operating costs in a subsequent comparative year;
4.1.2.19 Costs and expenses of governmental licenses and permits, or renewals thereof, unless the same are for governmental licenses or permits normal to the operation or maintenance of the building project;
4.1.2.20 Costs of any work or service performed for any facility or property other than the Building;
4.1.2.21 Any expenses related exclusively to any retail or storage space in, on or about the Building or appurtenant or adjacent thereto; and
4.1.2.22 Costs of electrical energy furnished directly to any Premises of other tenants, or to other rentable areas, of the Building, other than costs of electrical energy for the Building’s HVAC system. All Direct Expenses shall be entirely net of rebates, credits and similar items of which Landlord receives the benefitIllinois.”
Appears in 1 contract
Sources: Lease (Manchester Mall Inc)
Direct Expenses. All direct costs of operation, maintenance, repair and management of the Building (including the amount of any credits which Landlord may grant to particular tenants of the Building in lieu of providing any standard services or paying any standard costs described in this Section 4.1.2 for similar tenants), as determined in accordance with generally accepted accounting principles, including the following costs by way of illustration, but not limitation: water and sewer charges; insurance charges of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building or any part thereof; utility costs, including, but not limited to, the cost of heat, light, power, steam, gas, and waste disposal; the cost of janitorial services; the cost of security and alarm services (including any central station signaling system)services; window cleaning costs; labor costs; costs and expenses of managing the Building including management fees; air conditioning maintenance costs; elevator maintenance fees and supplies; material costs; equipment costs including the cost of maintenance, repair and service agreements and rental and leasing costs; purchase costs of equipment other than capital items; current rental and leasing costs of items which would be amortizable capital items if purchased; tool costs; licenses, permits and inspection fees; wages and salaries; employee benefits and payroll taxes; accounting and legal fees; any sales, use or service taxes incurred in connection therewith. Direct Expenses shall not include depreciation or amortization of the Building or equipment in the Building except as provided herein, loan principal payments, costs of alterations of tenants’ premises, leasing commissions, interest expenses on long-term borrowings, advertising costs or management salaries for executive personnel other than personnel located at the Building. If, during the Term of this Lease, Landlord shall make a capital expenditure, the total cost of which is not properly includable in Direct Expenses for the Lease Year in which it was made, there shall nevertheless be included in such Direct Expenses for the Lease Year in which it was made and in Direct Expenses for each succeeding Lease Year an annual amount which would amortize such cost over the useful life of the expenditure in question. All such costs shall be amortized over the reasonable life of such expenditures in accordance with such reasonable life and amortization schedules as shall be determined by Landlord in accordance with generally accepted accounting principles, with interest on the unamortized amount at one percent (1%) in excess of the prime lending rate announced from time to time as such by The Northern Trust Company of Chicago, Illinois. Without limiting the generality of the foregoingIn addition, Landlord shall be entitled to amortize and include as an additional rental adjustment: (i) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; (ii) fire sprinklers and suppression systems and other life safety systems; and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which were not applicable to the Building at the time it was constructed. The following items are not included All such costs shall be amortized over the reasonable life of such improvements in Direct Expenses:
4.1.2.1 Cost of permits, licenses accordance with such reasonable life and inspection fees incurred amortization schedules as shall be determined by Landlord to preparein accordance with generally accepted accounting principles, renovate, repaint, or redecorate any space leased to any existing tenant or prospective tenant with interest on the unamortized amount at one percent (1%) in excess of the Building;
4.1.2.2 Advertising and promotional expenditures incurred prime lending rate announced from time to lease space to new tenants or retain existing tenants;
4.1.2.3 Legal fees and expenses incurred time as such by Landlord to resolve disputes with tenants;
4.1.2.4 Cost The Northern Trust Company of replacement of any items covered under warranty;
4.1.2.5 Cost to correct or any penalty or fine incurred by Landlord due to Landlord’s violation of any federalChicago, stated or local law or regulation;
4.1.2.6 The Landlord’s general corporate overhead and administrative expenses;
4.1.2.7 Any cost to test, survey, cleanup, contain, ▇▇▇▇▇, remove or otherwise remedy hazardous waste or asbestos containing materials unless they are in or on the Premises due to tenant’s negligence or intentional act;
4.1.2.8 Cost of repairs caused by the Landlord’s negligence;
4.1.2.9 Interest or penalties for any late payments by Landlord;
4.1.2.10 Costs (including, without limitation, attorneys’ fees and disbursements) incurred in connection with any judgment, settlement or arbitration award resulting from any tort liability;
4.1.2.11 Compensation paid to any Building employee to the extent that the same is not fairly allocable to the work or service provided by such employee to the Building;
4.1.2.12 Costs of repairs or replacements incurred by reason of fire or other casualty or caused by the exercise of the right of eminent domain, whether or not insurance proceeds or a condemnation award are recovered or adequate for such purposes (however, deductibles are includable in Direct Expenses);
4.1.2.13 Costs of any heating, ventilating, air conditioning, janitorial or other Building services provided to other tenants during other than Building business hours;
4.1.2.14 Rent or other charges payable under any ground or underlying lease;
4.1.2.15 Costs of any item which are reimbursable to Landlord by other tenants or third parties other than through operating costs pass-through provisions in the leases of other tenants in the Building (if any);
4.1.2.16 Except for normal office equipment and short-term rentals of machines or equipment, lease payments for rented equipment, the cost of which equipment would constitute a capital expenditure if the equipment were to have been purchased (except to the extent that amortization of any such capital expenditure would be permitted as a Direct Expense pursuant to the Lease);
4.1.2.17 The cost of furnishing and installing replacement light bulbs and ballasts in any tenant areas of the Building, excluding the Premises;
4.1.2.18 An amount equal to all amounts received by Landlord through proceeds of insurance to the extent the proceeds are compensation for expenses which (i) previously were included in operating costs hereunder, (ii) are included in operating costs for the comparative year in which the insurance proceeds are received or (iii) will be included as operating costs in a subsequent comparative year;
4.1.2.19 Costs and expenses of governmental licenses and permits, or renewals thereof, unless the same are for governmental licenses or permits normal to the operation or maintenance of the building project;
4.1.2.20 Costs of any work or service performed for any facility or property other than the Building;
4.1.2.21 Any expenses related exclusively to any retail or storage space in, on or about the Building or appurtenant or adjacent thereto; and
4.1.2.22 Costs of electrical energy furnished directly to any Premises of other tenants, or to other rentable areas, of the Building, other than costs of electrical energy for the Building’s HVAC system. All Direct Expenses shall be entirely net of rebates, credits and similar items of which Landlord receives the benefitIllinois.”
Appears in 1 contract
Sources: Lease Agreement (PBSJ Corp /Fl/)
Direct Expenses. All direct costs of operation, maintenance, repair and management of the Building (including the amount of any credits which Landlord may grant to particular tenants of the Building in lieu of providing any standard services or paying any standard costs described in this Section 4.1.2 for similar tenants), as determined in accordance with generally accepted accounting principles, including the following costs by way of illustration, but not limitation: water and sewer charges; insurance charges of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building or any part thereof; utility costs, including, but not limited to, the cost of heat, light, electricity, power, steam, gas, and waste disposal; the cost of janitorial services; the cost of security and alarm services (including any central station signaling system)services; window cleaning costs; labor costs; costs and expenses of managing the Building including management feesfees (not to exceed normal and customary management fees for similar buildings); air conditioning maintenance costs; elevator maintenance fees and supplies; material costs; equipment costs including the cost of maintenance, repair and service agreements and rental and leasing costsagreements; purchase costs of equipment other than capital items; current rental and leasing costs of items which would be amortizable capital items if purchased; tool costs; licenses, permits and inspection fees; wages and salariessalaries of on-site Building personnel; employee benefits and payroll taxes; accounting and legal feesfees (except legal fees in connection with specific tenant leases); any sales, use or service taxes incurred in connection therewith. Notwithstanding the above, Direct Expenses shall not include depreciation or amortization include:
(a) commissions payable to any real estate broker(s) for the leasing of space in the Building or equipment Building;
(b) the cost of any work done by Landlord for and at the expense of any particular tenant(s) in the Building except as provided herein, loan principal payments, costs which do not benefit Tenant;
(c) interest or penalties for overdue payments of alterations Taxes;
(d) the cost to Landlord of tenants’ premises, leasing commissions, interest expenses on long-term borrowings, advertising costs or management salaries for executive personnel other than personnel located at the Building. If, during the Term of this Lease, Landlord shall make a capital expenditure, the total cost of which is not properly includable in Direct Expenses for the Lease Year in which it was repairs made, there shall nevertheless be included in such Direct Expenses or other work done, by Landlord as a result of fire, windstorm or other insurable casualty to the extent for which Landlord has received insurance proceeds, or by the Lease Year in which it was made and in Direct Expenses exercise of eminent domain, provided, however, that this exclusion for each succeeding Lease Year an annual eminent domain is limited to the amount which would amortize such cost over the useful life of the expenditure condemnation award received by landlord in question. All compensation for such repairs or other work;
(e) attorney's fees and court costs shall be amortized over the reasonable life of and other such expenditures in accordance with such reasonable life and amortization schedules as shall be determined expenses incurred by Landlord in accordance connection with generally accepted accounting principles, the negotiation of disputes with interest on the unamortized amount at one percent (1%) in excess of the prime lending rate announced from time to time as such by The Northern Trust Company of Chicago, Illinois. Without limiting the generality of the foregoing, Landlord shall be entitled to amortize and include as an additional rental adjustment: (i) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; (ii) fire sprinklers and suppression systems and other life safety systems; and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which were not applicable to the Building at the time it was constructed. The following items are not included in Direct Expenses:
4.1.2.1 Cost of permits, licenses and inspection fees incurred by Landlord to prepare, renovate, repaint, or redecorate any space leased to any existing tenant or prospective tenant tenants of the Building;
4.1.2.2 Advertising and promotional expenditures incurred (f) the costs to lease landlord of renovating, decorating, painting or redecorating interior space to new for the actual premises of tenants or retain existing tenantsof the Building;
4.1.2.3 Legal fees and expenses incurred (g) amounts for which reimbursement has been made to Landlord by tenants of the Building for "extra hours" services rendered to them by Landlord for which Tenant does not benefit;
(h) interest on debt or amortization payments on any mortgages and/or rental under any ground or underlying leases covering Landlord's Property;
(i) compensation paid by Landlord to resolve disputes with tenantspersons engaged in commercial concessions operated by Landlord (and not by a third party) on Landlord's Property (e.g., a newspaper stand or shoeshine service or valet parking);
4.1.2.4 Cost (j) expenses paid by Landlord for the advertising and promotion of replacement of any items covered under warrantyrental space in the Building;
4.1.2.5 Cost to correct (k) fines, penalties or any penalty or fine other costs incurred by Landlord due to Landlord’s its violation of any federal, stated or local law or regulationgovernmental laws;
4.1.2.6 The (l) costs incurred by Landlord for the purchase of sculptures, paintings or other objects of art for Landlord’s general corporate overhead and administrative expenses's Property, if any;
4.1.2.7 Any cost to test, survey, cleanup, contain, ▇▇▇▇▇, remove or otherwise remedy hazardous waste or asbestos containing materials unless they are in or (m) depreciation expense on the Premises due to tenant’s negligence or intentional act;
4.1.2.8 Cost of repairs caused by the Landlord’s negligence;
4.1.2.9 Interest or penalties for any late payments by Landlord;
4.1.2.10 Costs (including, without limitation, attorneys’ fees and disbursements) incurred in connection with any judgment, settlement or arbitration award resulting from any tort liability;
4.1.2.11 Compensation paid to any Building employee to the extent that the same is not fairly allocable to the work or service provided by such employee to the Building;
4.1.2.12 Costs of repairs or replacements incurred (n) the overtime hours charges for electricity used and paid for by reason of fire or other casualty or caused by the exercise of the right of eminent domain, whether or not insurance proceeds or a condemnation award are recovered or adequate for such purposes (however, deductibles are includable in Direct Expenses)tenants;
4.1.2.13 Costs (o) salaries, wages and benefits of any heating, ventilating, air conditioning, janitorial or other Landlord's employees above the level of "Building services provided to other tenants during other than Building business hours;
4.1.2.14 Rent or other charges payable under any ground or underlying lease;
4.1.2.15 Costs of any item which are reimbursable to Landlord by other tenants or third parties other than through operating costs pass-through provisions in the leases of other tenants in the Building (if any);
4.1.2.16 Except for normal office equipment and short-term rentals of machines or equipment, lease payments for rented equipment, the cost of which equipment would constitute a capital expenditure if the equipment were to have been purchased (except to the extent that amortization of any such capital expenditure would be permitted as a Direct Expense pursuant to the Lease);
4.1.2.17 The cost of furnishing and installing replacement light bulbs and ballasts in any tenant areas of the Building, excluding the Premises;
4.1.2.18 An amount equal to all amounts received by Landlord through proceeds of insurance to the extent the proceeds are compensation for expenses which (i) previously were included in operating costs hereunder, (ii) are included in operating costs for the comparative year in which the insurance proceeds are received or (iii) will be included as operating costs in a subsequent comparative year;
4.1.2.19 Costs and expenses of governmental licenses and permits, or renewals thereof, unless the same are for governmental licenses or permits normal to the operation or maintenance of the building project;
4.1.2.20 Costs of any work or service performed for any facility or property other than the Building;
4.1.2.21 Any expenses related exclusively to any retail or storage space in, on or about the Building or appurtenant or adjacent thereto; and
4.1.2.22 Costs of electrical energy furnished directly to any Premises of other tenants, or to other rentable areas, of the Building, other than costs of electrical energy for the Building’s HVAC system. All Direct Expenses shall be entirely net of rebates, credits and similar items of which Landlord receives the benefitManager".”
Appears in 1 contract
Direct Expenses. All direct costs of operation, maintenance, repair and management of the Building (including the amount of any credits which whish Landlord may grant to particular tenants of the Building in lieu of providing any and standard services or paying any standard costs described in this Section 4.1.2 for similar tenants), as determined in accordance with generally accepted accounting principles, including the following costs by way of illustration, but not limitation: water and sewer charges; insurance charges of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building or any part thereof; utility costs, including, but not limited to, the cost of heat, light, power, steam, gas, and waste disposal; the cost of janitorial servicesservice; the cost of security and alarm services (including any central station signaling signalling system); window cleaning costs; labor costs; costs and expenses of managing the Building including management fees; air conditioning maintenance costs; , elevator maintenance fees and supplies; material costs; equipment costs including the cost of maintenance, repair and service agreements and rental and leasing costs; purchase costs of equipment other than capital items,; current rental and leasing costs of items which would be amortizable capital items if of purchased; tool costs; licenses, permits and inspection fees; wages and salaries; employee benefits and payroll taxes; accounting and legal fees; any sales, use or service services taxes incurred uncured in DES/BB Initial connection therewith. Direct Expenses shall not include depreciation or amortization of the Building or equipment in the Building except as provided herein, loan principal payments, costs of alterations of tenants’ ' premises, leasing commissions, interest expenses on long-term tem borrowings, advertising costs or management salaries for executive personnel other than personnel located at the Building. If, during the Term of this Lease, Landlord shall make a capital expenditure, the total cost of which is not properly includable in Direct Expenses for the Lease Year in which it was made, there shall nevertheless be included in such Direct Expenses for the Lease Year in which it was made and in Direct Expenses for each succeeding Lease Year an annual amount which would amortize such cost over the useful life of the expenditure in question. All such costs shall be amortized over the reasonable life of such expenditures in accordance with such reasonable life and amortization schedules as shall be determined by Landlord in accordance with generally accepted accounting principles, with interest on the unamortized amount at one percent (1%) in excess of the prime lending rate announced from time to time as such by The Northern Trust Company of Chicago, Illinois. Without limiting the generality of the foregoingIn addition, Landlord shall be entitled to amortize and include as an additional rental adjustment: (i) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; (ii) fire sprinklers and suppression systems and other life safety systems; and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which were not applicable to the Building at the he time it was constructed. The following items are not included All such costs shall be amortized over the reasonable life of such improvements in Direct Expenses:
4.1.2.1 Cost of permits, licenses accordance with such reasonable life and inspection fees incurred amortization schedules as shall be determined by Landlord to preparein accordance with generally accepted accounting principles, renovate, repaint, or redecorate any space leased to any existing tenant or prospective tenant with interest on the unamortized amount at one percent (1%) in excess of the Building;
4.1.2.2 Advertising and promotional expenditures incurred prime lending rate announced from time to lease space to new tenants or retain existing tenants;
4.1.2.3 Legal fees and expenses incurred time as such by Landlord to resolve disputes with tenants;
4.1.2.4 Cost The Northern Trust Company of replacement of any items covered under warranty;
4.1.2.5 Cost to correct or any penalty or fine incurred by Landlord due to Landlord’s violation of any federalChicago, stated or local law or regulation;
4.1.2.6 The Landlord’s general corporate overhead and administrative expenses;
4.1.2.7 Any cost to test, survey, cleanup, contain, ▇▇▇▇▇, remove or otherwise remedy hazardous waste or asbestos containing materials unless they are in or on the Premises due to tenant’s negligence or intentional act;
4.1.2.8 Cost of repairs caused by the Landlord’s negligence;
4.1.2.9 Interest or penalties for any late payments by Landlord;
4.1.2.10 Costs (including, without limitation, attorneys’ fees and disbursements) incurred in connection with any judgment, settlement or arbitration award resulting from any tort liability;
4.1.2.11 Compensation paid to any Building employee to the extent that the same is not fairly allocable to the work or service provided by such employee to the Building;
4.1.2.12 Costs of repairs or replacements incurred by reason of fire or other casualty or caused by the exercise of the right of eminent domain, whether or not insurance proceeds or a condemnation award are recovered or adequate for such purposes (however, deductibles are includable in Direct Expenses);
4.1.2.13 Costs of any heating, ventilating, air conditioning, janitorial or other Building services provided to other tenants during other than Building business hours;
4.1.2.14 Rent or other charges payable under any ground or underlying lease;
4.1.2.15 Costs of any item which are reimbursable to Landlord by other tenants or third parties other than through operating costs pass-through provisions in the leases of other tenants in the Building (if any);
4.1.2.16 Except for normal office equipment and short-term rentals of machines or equipment, lease payments for rented equipment, the cost of which equipment would constitute a capital expenditure if the equipment were to have been purchased (except to the extent that amortization of any such capital expenditure would be permitted as a Direct Expense pursuant to the Lease);
4.1.2.17 The cost of furnishing and installing replacement light bulbs and ballasts in any tenant areas of the Building, excluding the Premises;
4.1.2.18 An amount equal to all amounts received by Landlord through proceeds of insurance to the extent the proceeds are compensation for expenses which (i) previously were included in operating costs hereunder, (ii) are included in operating costs for the comparative year in which the insurance proceeds are received or (iii) will be included as operating costs in a subsequent comparative year;
4.1.2.19 Costs and expenses of governmental licenses and permits, or renewals thereof, unless the same are for governmental licenses or permits normal to the operation or maintenance of the building project;
4.1.2.20 Costs of any work or service performed for any facility or property other than the Building;
4.1.2.21 Any expenses related exclusively to any retail or storage space in, on or about the Building or appurtenant or adjacent thereto; and
4.1.2.22 Costs of electrical energy furnished directly to any Premises of other tenants, or to other rentable areas, of the Building, other than costs of electrical energy for the Building’s HVAC system. All Direct Expenses shall be entirely net of rebates, credits and similar items of which Landlord receives the benefitIllinois.”
Appears in 1 contract
Sources: Lease (Sk Technologies Corp)
Direct Expenses. All direct costs of operation, maintenance, repair and management of the Building (including the amount of any credits which Landlord may grant to particular tenants of the Building in lieu of providing any standard services or paying any standard costs described in this Section 4.1.2 for similar tenants), as determined in accordance with generally accepted accounting principles, including the following costs by way of illustration, but not limitation: water and sewer charges; insurance charges of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building or any part thereof; utility costs, including, but not limited to, the cost of heat, light, electricity, power, steam, gas, and waste disposal; the cost of janitorial services; the cost of security and alarm services (including any central station signaling system)services; window cleaning costs; labor costs; costs and expenses of managing the Building including management feesfees (not to exceed normal and customary management fees for similar buildings); air conditioning maintenance costs; elevator maintenance fees and supplies; material costs; equipment costs including the cost of maintenance, repair and service agreements and rental and leasing costsagreements; purchase costs of equipment other than capital items; current rental and leasing costs of items which would be amortizable capital items if purchased; tool costs; licenses, permits and inspection fees; wages and salariessalaries of on-site Building personnel; employee benefits and payroll taxes; accounting and legal feesfees (except legal fees in connection with specific tenant leases); any sales, use or service taxes incurred in connection therewith. Notwithstanding the above, Direct Expenses shall not include depreciation or amortization include:
(a) commission payable to any real estate broker(s) for the leasing of space in the Building or equipment Building;
(b) the cost of any work done by Landlord for and at the expense of any particular tenant(s) in the Building except as provided herein, loan principal payments, costs which do not benefit Tenant;
(c) interest or penalties for overdue payments of alterations Taxes;
(d) the cost to Landlord of tenants’ premises, leasing commissions, interest expenses on long-term borrowings, advertising costs or management salaries for executive personnel other than personnel located at the Building. If, during the Term of this Lease, Landlord shall make a capital expenditure, the total cost of which is not properly includable in Direct Expenses for the Lease Year in which it was repairs made, there shall nevertheless be included in such Direct Expenses or other work done, by Landlord as a result of fire, windstorm or other insurable casualty to the extent for which Landlord has received insurance proceeds, or by the Lease Year in which it was made and in Direct Expenses exercise of eminent domain, provided, however, that this exclusion for each succeeding Lease Year an annual eminent domain is limited to the amount which would amortize such cost over the useful life of the expenditure in question. All such costs shall be amortized over the reasonable life of such expenditures in accordance with such reasonable life and amortization schedules as shall be determined condemnation award received by Landlord in accordance with generally accepted accounting principles, with interest on the unamortized amount at one percent compensation for such repairs or other work;
(1%e) in excess of the prime lending rate announced from time to time as such by The Northern Trust Company of Chicago, Illinois. Without limiting the generality of the foregoing, Landlord shall be entitled to amortize attorney's fees and include as an additional rental adjustment: (i) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; (ii) fire sprinklers and suppression systems court costs and other life safety systems; and (iii) other capital such expenses which are required under any governmental laws, regulations or ordinances which were not applicable to the Building at the time it was constructed. The following items are not included in Direct Expenses:
4.1.2.1 Cost of permits, licenses and inspection fees incurred by Landlord to prepare, renovate, repaint, or redecorate any space leased to any in connection with the negotiation of disputes with existing tenant or prospective tenant tenants of the Building;
4.1.2.2 Advertising and promotional expenditures incurred (f) the costs to lease Landlord of renovating, decorating, painting or redecorating interior space to new for the actual premises of tenants or retain existing tenantsof the Building;
4.1.2.3 Legal fees and expenses incurred (g) amounts for which reimbursement has been made to Landlord by tenants of the Building for "extra hours" services rendered to them by Landlord for which Tenant does not benefit;
(h) interest on debt or amortization payments on any mortgages and/or rental under any ground or underlying leases covering Landlord's Property;
(i) compensation paid by Landlord to resolve disputes with tenantspersons engaged in commercial concessions operated by Landlord (and not by a third party) on Landlord's Property (e.g., a newspaper stand or shoeshine service or valet parking);
4.1.2.4 Cost (j) expenses paid by Landlord for the advertising and promotion of replacement of any items covered under warrantyrental space in the Building;
4.1.2.5 Cost to correct (k) fines, penalties or any penalty or fine other costs incurred by Landlord due to Landlord’s its violation of any federal, stated or local law or regulationgovernmental laws;
4.1.2.6 The (l) costs incurred by Landlord for the purchase of sculptures, paintings or other objects of art for Landlord’s general corporate overhead and administrative expenses's Property, if any;
4.1.2.7 Any cost to test, survey, cleanup, contain, ▇▇▇▇▇, remove or otherwise remedy hazardous waste or asbestos containing materials unless they are in or (m) depreciation expense on the Premises due to tenant’s negligence or intentional act;
4.1.2.8 Cost of repairs caused by the Landlord’s negligence;
4.1.2.9 Interest or penalties for any late payments by Landlord;
4.1.2.10 Costs (including, without limitation, attorneys’ fees and disbursements) incurred in connection with any judgment, settlement or arbitration award resulting from any tort liability;
4.1.2.11 Compensation paid to any Building employee to the extent that the same is not fairly allocable to the work or service provided by such employee to the Building;
4.1.2.12 Costs of repairs or replacements incurred (n) the overtime hours charges for electricity used and paid for by reason of fire or other casualty or caused by the exercise of the right of eminent domain, whether or not insurance proceeds or a condemnation award are recovered or adequate for such purposes (however, deductibles are includable in Direct Expenses)tenants;
4.1.2.13 Costs (o) salaries, wages and benefits of any heating, ventilating, air conditioning, janitorial or other Landlord's employees above the level of "Building services provided to other tenants during other than Building business hours;
4.1.2.14 Rent or other charges payable under any ground or underlying lease;
4.1.2.15 Costs of any item which are reimbursable to Landlord by other tenants or third parties other than through operating costs pass-through provisions in the leases of other tenants in the Building (if any);
4.1.2.16 Except for normal office equipment and short-term rentals of machines or equipment, lease payments for rented equipment, the cost of which equipment would constitute a capital expenditure if the equipment were to have been purchased (except to the extent that amortization of any such capital expenditure would be permitted as a Direct Expense pursuant to the Lease);
4.1.2.17 The cost of furnishing and installing replacement light bulbs and ballasts in any tenant areas of the Building, excluding the Premises;
4.1.2.18 An amount equal to all amounts received by Landlord through proceeds of insurance to the extent the proceeds are compensation for expenses which (i) previously were included in operating costs hereunder, (ii) are included in operating costs for the comparative year in which the insurance proceeds are received or (iii) will be included as operating costs in a subsequent comparative year;
4.1.2.19 Costs and expenses of governmental licenses and permits, or renewals thereof, unless the same are for governmental licenses or permits normal to the operation or maintenance of the building project;
4.1.2.20 Costs of any work or service performed for any facility or property other than the Building;
4.1.2.21 Any expenses related exclusively to any retail or storage space in, on or about the Building or appurtenant or adjacent thereto; and
4.1.2.22 Costs of electrical energy furnished directly to any Premises of other tenants, or to other rentable areas, of the Building, other than costs of electrical energy for the Building’s HVAC system. All Direct Expenses shall be entirely net of rebates, credits and similar items of which Landlord receives the benefitManager".”
Appears in 1 contract
Direct Expenses. All direct costs of actually incurred by Landlord in the operation, maintenance, repair and management of the Building (including the amount of any credits which Landlord may grant to particular tenants of the Building in lieu of providing any standard services or paying any standard costs described in this Section 4.1.2 for similar tenants), as determined in accordance with generally accepted accounting principles, including the following costs by way of illustration, but not limitation: water and sewer charges; insurance charges of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building or any part thereofthereof (which Landlord agrees to maintain for liability in an amount not less than Three Million Dollars ($3,000,000.00); utility costs, including, but not limited to, the cost of heat, light, electricity, power, steam, gas, and waste disposal; the cost of janitorial services; the cost of security and alarm services (including any central station signaling system)services; window cleaning costs; labor costs; costs and expenses of managing the Building including management feesfees (not to exceed normal and customary management fees for similar buildings); air conditioning maintenance costs; elevator maintenance fees and supplies; material costs; equipment costs including the cost of maintenance, repair and service agreements and rental and leasing costsagreements; purchase costs of equipment other than capital items; current rental and leasing costs of items which would be amortizable capital items if purchased; tool costs; licenses, permits and inspection fees; wages and salaries; employee benefits and payroll taxes; accounting and legal feesfees (except legal fees in connection with specific tenant leases); any sales, use or service taxes incurred in connection therewith. Notwithstanding anything to the contrary contained herein, Direct Expenses shall not include depreciation the following:
(1) The cost of repair to the Building including the Premises, to the extent the cost of the repairs is reimbursed by insurance or amortization condemnation proceeds, covered by warranty or otherwise reimbursed by third parties other than as a part of Direct Expenses.
(2) All items and services for which Tenant or any other tenant in the Building reimburses Landlord other than through Direct Expenses (or is so obligated to reimburse Landlord) and all items and services supplied selectively to any tenant without reimbursement, provided that, any item or service supplied selectively to Tenant shall be paid for by Tenant.
(3) Advertising and marketing costs, including leasing commissions, in connection with the negotiation and preparation of letters, deal memos, letters of intent, leases, subleases and/or assignments, space planning costs, and other costs and expenses incurred in connection with the lease, sublease and/or assignment negotiations and transactions with present or prospective tenants of the Building or equipment in the Building except as provided hereintheir successors.
(4) The cost of improving or renovating space for tenants (including Tenant) or space vacated by any tenant (including Tenant), loan principal paymentsincluding, without limitation, architects’, engineers’ and space planners’ fees and expenses.
(5) The cost of utilities charged to individual tenants (including tenant) including any and all costs for tenant’s electrical usage and HVAC usage, and payroll, material and contract costs of alterations of tenants’ premises, leasing commissions, interest expenses on long-term borrowings, advertising costs or management salaries for executive personnel other services charged to tenants (including tenant) other than personnel located at the Building. If, during the Term of this Lease, Landlord shall make a capital expenditure, the total cost of which is not properly includable in Direct Expenses for the Lease Year in which it was made, there shall nevertheless be included in such Direct Expenses for the Lease Year in which it was made and in Direct Expenses for each succeeding Lease Year an annual amount which would amortize such cost over the useful life of the expenditure in question. All such costs shall be amortized over the reasonable life of such expenditures in accordance with such reasonable life and amortization schedules as shall be determined by Landlord in accordance with generally accepted accounting principles, with interest on the unamortized amount at one percent relating to Common Areas.
(1%6) in excess of the prime lending rate announced from time to time as such by The Northern Trust Company of Chicago, Illinois. Without limiting the generality of the foregoing, Landlord shall be entitled to amortize and include as an additional rental adjustment: (i) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; (ii) fire sprinklers and suppression systems and other life safety systems; and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which were not applicable to the Building at the time it was constructed. The following items are not included in Direct Expenses:
4.1.2.1 Cost of permits, licenses and inspection fees incurred by Landlord to prepare, renovate, repaint, or redecorate any space leased to any existing tenant or prospective tenant depreciation of the Building;.
4.1.2.2 Advertising (7) Interest, points and promotional expenditures incurred to fees on debt or amortization payments, and late payment penalties and interest on any real property mortgages or deeds of trust and ground lease space to new tenants payments, and other costs of financing or retain existing tenants;refinancing the Building.
4.1.2.3 Legal fees (8) Legal, accounting, consulting and other related expenses incurred by Landlord to resolve disputes associated with tenants;
4.1.2.4 Cost the enforcement of replacement leases or the defense of any items covered under warranty;
4.1.2.5 Cost to correct or any penalty or fine incurred by Landlord due to Landlord’s violation of any federal, stated or local law or regulation;title to the Building.
4.1.2.6 The (9) Landlord’s general corporate overhead and general administrative expenses;expenses not related to the operation of the Building including costs of preparing corporate, partnership or other tax returns, or financial statements not related to the operation of the Building, and all compensation to executives, officers or partners of Landlord or to persons who are executives or officers of partners of Landlord or to any other person at or above the level of building manager, other than the building manager of the Building.
4.1.2.7 (10) Any cost compensation paid to testclerks, surveyattendants or other persons in commercial concessions, cleanupincluding parking facilities operated by Landlord and other costs directly related to the operation of such commercial concessions including bookkeeping, containparking insurance, ▇▇▇▇▇parking management fees, remove tickets, striping and uniforms, and all other costs directly related to the installation, operation and maintenance of such commercial concessions.
(11) Governmental fines or penalties assessed as a result of Landlord’s failure to make payments in a timely manner or to comply with applicable laws.
(12) Costs which are due to compliance with laws relating to Hazardous Materials or substances which are incurred (a) as a result of Landlord’s negligence or intentional acts in the course of construction of the Building, including the selection and use of building materials which Landlord should have known were Hazardous Materials at the time of their installation or (b) as a result of the presence of Hazardous Materials in the soil or groundwater under the Building on or before the date of execution of this Lease, except as otherwise remedy hazardous waste specifically included in Direct Expenses.
(13) Costs of purchasing, installing and replacing artwork.
(14) Liability covered by insurance carried by Landlord the premiums for which are included in Direct Expenses, or asbestos containing materials unless they which would have been covered by insurance otherwise required to be carried by Landlord under this Lease but for failure to insure as a result of Landlord’s intentional acts or omissions or negligence (but not as a result of commercial impracticability of obtaining such insurance).
(15) Expenses resulting directly from the willful misconduct or gross negligence of Landlord.
(16) Costs of repairs or modifications to the Building or Premises, if the Building or Premises are not in full compliance with all governmental regulations, ordinances and laws effective at the effective date of this Lease.
(17) Any bad debt loss, rent loss or reserves for bad debts or rent loss and reserves for Direct Expenses or capital improvements.
(18) With respect to any assessments or taxes for which Landlord has the right to elect to make a lump sum payment, or cause such assessment or tax to be amortized and paid over a period of time, Landlord shall include in the definition of Direct Expenses only the amortized portion (calculated at the longest period of time permitted by such taxing authority) of such taxes and assessments (regardless of any applicable interest charges).
(19) In no event shall the total of operating expenses collected from all tenants in the Building exceed one hundred percent (100%) of the amount expended by Landlord for operating expenses for the year.
(20) Any capital improvements permitted as operating expenses shall be amortized over their useful life.
(21) Except for making repairs or keeping permanent systems in operation while repairs are being made, rentals and other related expenses incurred in leasing air-conditioning systems, elevators or other equipment ordinarily considered to be of a capital nature (except systems equipment not affixed to the Building, systems and equipment in or on the Premises due Property for less than sixty (60) days, or equipment which is used in providing janitorial or similar services).
(22) Costs relating to tenant’s negligence clean-up of Hazardous Materials or intentional act;
4.1.2.8 Cost of repairs caused by the Landlord’s negligence;
4.1.2.9 Interest or penalties for any late payments by Landlord;
4.1.2.10 Costs (including, without limitation, attorneys’ fees and disbursements) substances which are incurred in connection with any judgment, settlement or arbitration award resulting from any tort liability;
4.1.2.11 Compensation paid to any Building employee to the extent that the same is not fairly allocable to the work or service provided by such employee to the Building;
4.1.2.12 Costs of repairs or replacements incurred by reason of fire or other casualty or caused by the exercise as a result of the right presence of eminent domainHazardous Materials anywhere in, whether on, under or not insurance proceeds or a condemnation award are recovered or adequate for such purposes (however, deductibles are includable in Direct Expenses);
4.1.2.13 Costs of any heating, ventilating, air conditioning, janitorial or other Building services provided to other tenants during other than Building business hours;
4.1.2.14 Rent or other charges payable under any ground or underlying lease;
4.1.2.15 Costs of any item which are reimbursable to Landlord by other tenants or third parties other than through operating costs pass-through provisions in the leases of other tenants in about the Building on or before the date of execution of this Lease.
(if any);
4.1.2.16 23) Except for normal office equipment as permitted in Section 4.2 hereof, and short-term rentals of machines or equipment, lease payments for rented equipment, the cost of which equipment would constitute a capital expenditure if the equipment were to have been purchased (except to the extent that amortization of any such capital expenditure would be permitted as a Direct Expense pursuant to specifically provided otherwise in the Lease);
4.1.2.17 The cost , the overhead and profit increments paid to Landlord, or to any subsidiary or affiliate of furnishing and installing replacement light bulbs and ballasts Landlord, for goods and/or services in any tenant areas of the Building, excluding the Premises;
4.1.2.18 An amount equal to all amounts received by Landlord through proceeds of insurance to the extent such overhead and profit increments exceed the proceeds are compensation for expenses which (i) previously were included in operating costs hereunder, (ii) are included in operating costs for the comparative year in which the insurance proceeds are received or (iii) will be included as operating costs in a subsequent comparative year;
4.1.2.19 Costs and expenses of governmental licenses and permits, or renewals thereof, unless the same are for governmental licenses or permits normal to the operation or maintenance of the building project;
4.1.2.20 Costs of any work or service performed for any facility or property other than the Building;
4.1.2.21 Any expenses related exclusively to any retail or storage space in, on or about the Building or appurtenant or adjacent thereto; and
4.1.2.22 Costs of electrical energy furnished directly to any Premises of other tenants, or to other rentable areas, of the Building, other than costs of electrical energy for the Building’s HVAC system. All Direct Expenses shall be entirely net of rebatescomparable goods and/or services, credits and similar items of which Landlord receives the benefitdelivered or rendered by unaffiliated third parties.”
Appears in 1 contract
Sources: Lease (Neutral Tandem Inc)
Direct Expenses. All direct costs of operation, maintenance, repair and management of the Building (including the amount of any credits which Landlord may grant to particular tenants of the Building in lieu of providing any standard services or paying any standard costs described in this Section 4.1.2 for similar tenants), as determined in accordance with generally accepted accounting principles, including the following costs by way of illustration, but not limitation: water and sewer charges; insurance charges of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building or any part thereof; utility costs, including, but not limited to, the cost of heat, light, power, steam, gas, and waste disposal; the cost of janitorial services; the cost of security and alarm services (including any central station signaling system)services; window cleaning costs; labor costs; costs and expenses of managing the Building including management fees; air conditioning maintenance costs; elevator maintenance fees and supplies; material costs; equipment costs including the cost of maintenance, repair and service agreements and rental and leasing costs; purchase costs of equipment other than capital items; current rental and leasing costs of items which would be amortizable capital items if purchased; tool costs; licenses, permits and inspection fees; wages and salaries; employee benefits and payroll taxes; accounting and legal fees; any sales, use or service taxes incurred in connection therewith. Direct Expenses expenses shall not include depreciation or amortization of the Building or equipment in the Building except as provided herein, loan principal payments, costs of alterations of tenants’ ' premises, leasing commissions, interest expenses on long-term borrowings, advertising costs or management salaries for executive personnel other than personnel located at the Building. If, during the Term of this Lease, Landlord shall make a capital expenditure, the total cost of which is not properly includable in Direct Expenses for the Lease Year in which it was made, there shall nevertheless be included in such Direct Expenses for the Lease Year in which it was made and in Direct Expenses for each succeeding Lease Year an annual amount which would amortize such cost over the useful life of the expenditure in question. All such costs shall be amortized over the reasonable life of such expenditures in accordance with such reasonable life and amortization schedules as shall be determined by Landlord in accordance with generally accepted accounting principles, with interest on the unamortized amount at one percent (1%) in excess of the prime lending rate announced from time to time as such by The Northern Trust Company of Chicago, Illinois. Without limiting the generality of the foregoingIn addition, Landlord shall be entitled to amortize and include as an additional rental adjustment: (i) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; (ii) fire sprinklers and suppression systems and other life safety systems; and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which were not applicable to the Building at the time it was constructed. The following items are not included All such costs shall be amortized over the reasonable life of such improvements in Direct Expenses:
4.1.2.1 Cost of permits, licenses accordance with such reasonable life and inspection fees incurred amortization schedules as shall be determined by Landlord to preparein accordance with generally accepted accounting principles, renovate, repaint, or redecorate any space leased to any existing tenant or prospective tenant with interest on the unamortized amount at one percent (1%) in excess of the Building;
4.1.2.2 Advertising and promotional expenditures incurred prime lending rate announced from time to lease space to new tenants or retain existing tenants;
4.1.2.3 Legal fees and expenses incurred time as such by Landlord to resolve disputes with tenants;
4.1.2.4 Cost The Northern Trust Company of replacement of any items covered under warranty;
4.1.2.5 Cost to correct or any penalty or fine incurred by Landlord due to Landlord’s violation of any federalChicago, stated or local law or regulation;
4.1.2.6 The Landlord’s general corporate overhead and administrative expenses;
4.1.2.7 Any cost to test, survey, cleanup, contain, ▇▇▇▇▇, remove or otherwise remedy hazardous waste or asbestos containing materials unless they are in or on the Premises due to tenant’s negligence or intentional act;
4.1.2.8 Cost of repairs caused by the Landlord’s negligence;
4.1.2.9 Interest or penalties for any late payments by Landlord;
4.1.2.10 Costs (including, without limitation, attorneys’ fees and disbursements) incurred in connection with any judgment, settlement or arbitration award resulting from any tort liability;
4.1.2.11 Compensation paid to any Building employee to the extent that the same is not fairly allocable to the work or service provided by such employee to the Building;
4.1.2.12 Costs of repairs or replacements incurred by reason of fire or other casualty or caused by the exercise of the right of eminent domain, whether or not insurance proceeds or a condemnation award are recovered or adequate for such purposes (however, deductibles are includable in Direct Expenses);
4.1.2.13 Costs of any heating, ventilating, air conditioning, janitorial or other Building services provided to other tenants during other than Building business hours;
4.1.2.14 Rent or other charges payable under any ground or underlying lease;
4.1.2.15 Costs of any item which are reimbursable to Landlord by other tenants or third parties other than through operating costs pass-through provisions in the leases of other tenants in the Building (if any);
4.1.2.16 Except for normal office equipment and short-term rentals of machines or equipment, lease payments for rented equipment, the cost of which equipment would constitute a capital expenditure if the equipment were to have been purchased (except to the extent that amortization of any such capital expenditure would be permitted as a Direct Expense pursuant to the Lease);
4.1.2.17 The cost of furnishing and installing replacement light bulbs and ballasts in any tenant areas of the Building, excluding the Premises;
4.1.2.18 An amount equal to all amounts received by Landlord through proceeds of insurance to the extent the proceeds are compensation for expenses which (i) previously were included in operating costs hereunder, (ii) are included in operating costs for the comparative year in which the insurance proceeds are received or (iii) will be included as operating costs in a subsequent comparative year;
4.1.2.19 Costs and expenses of governmental licenses and permits, or renewals thereof, unless the same are for governmental licenses or permits normal to the operation or maintenance of the building project;
4.1.2.20 Costs of any work or service performed for any facility or property other than the Building;
4.1.2.21 Any expenses related exclusively to any retail or storage space in, on or about the Building or appurtenant or adjacent thereto; and
4.1.2.22 Costs of electrical energy furnished directly to any Premises of other tenants, or to other rentable areas, of the Building, other than costs of electrical energy for the Building’s HVAC system. All Direct Expenses shall be entirely net of rebates, credits and similar items of which Landlord receives the benefitIllinois.”
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Sources: Lease Agreement (Accufacts Pre Employment Screening Inc)
Direct Expenses. All direct costs of operation, maintenance, repair and management of the Building (including the amount of any credits which Landlord may grant to particular tenants of the Building in lieu of ; providing any standard services or paying any standard costs described in this Section 4.1.2 for similar tenants), as determined in accordance with generally accepted accounting principles, including the following costs by way of illustration, but not limitation: water and sewer charges; insurance charges of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building or any part thereof; utility costs, including, but not limited to, the cost of heat, light, power, steam, gas, and waste disposal; the cost of janitorial services; the cost of security and alarm services (including any central station signaling system); window cleaning costs; labor costs; costs and expenses of managing the Building including management fees; air conditioning maintenance costs; elevator maintenance fees and supplies; material costs; equipment costs including the cost of maintenance, repair and service agreements and rental and leasing costs; purchase costs of equipment other than capital items; current rental and leasing costs of items which would be amortizable capital items if purchased; tool costs; licenses, permits and inspection fees; wages and salaries; employee benefits and payroll taxes; accounting and ant legal fees; any sales, use or service taxes incurred in connection therewith. Direct Expenses shall not include depreciation or amortization of the Building or equipment in the Building except as provided herein, loan principal payments, costs of alterations of tenants’ ' premises, leasing commissions, interest expenses on long-term borrowings, advertising costs or management salaries for executive personnel other than personnel located at the Building. If, during the Term of this Lease, Landlord shall make a capital expenditure, the total cost of which is not properly includable in Direct Expenses for the Lease Year in which it was made, there shall nevertheless be included in such Direct Expenses for the Lease Year in which it was made and in Direct Expenses for each succeeding Lease Year an annual amount which would amortize such cost over the useful life of the expenditure in question. All such costs shall be amortized over the reasonable life of such expenditures in accordance with such reasonable life and amortization schedules as shall be determined by Landlord in accordance with generally accepted accounting principles, with interest on the unamortized amount at one percent (1%) in excess of the prime lending rate announced from time to time as such by The Northern Trust Company of Chicago, Illinois. Without limiting the generality of the foregoingIn addition, Landlord shall be entitled to amortize and include as an additional rental adjustment: (i) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; (ii) fire sprinklers and suppression systems and other life safety systems; and (iii) other capital expenses which are required under any governmental govenmental laws, regulations or ordinances which were not applicable to the Building at the time it was constructed. The following items are not included All such costs shall be amortized over the reasonable life of such improvements in Direct Expenses:
4.1.2.1 Cost of permits, licenses accordance with such reasonable life and inspection fees incurred amortization schedules as shall be determined by Landlord to preparein accordance with generally accepted accounting principles, renovate, repaint, or redecorate any space leased to any existing tenant or prospective tenant with interest on the unamortized amount at one percent (1%) in excess of the Building;prime lending rate announced from time to time as such by The Northern Trust Company of Chicago, Illinois.
4.1.2.2 Advertising and promotional expenditures incurred to lease space to new tenants or retain existing tenants;
4.1.2.3 Legal fees and expenses incurred by Landlord to resolve disputes with tenants;
4.1.2.4 Cost 4.1. 2a Notwithstanding the foregoing provisions of replacement of any items covered under warranty;
4.1.2.5 Cost to correct or any penalty or fine incurred by Landlord due to Landlord’s violation of any federal, stated or local law or regulation;
4.1.2.6 The Landlord’s general corporate overhead and administrative expenses;
4.1.2.7 Any cost to test, survey, cleanup, contain, ▇▇▇▇▇, remove or otherwise remedy hazardous waste or asbestos containing materials unless they are in or on the Premises due to tenant’s negligence or intentional act;
4.1.2.8 Cost of repairs caused by the Landlord’s negligence;
4.1.2.9 Interest or penalties for any late payments by Landlord;
4.1.2.10 Costs (including, without limitation, attorneys’ fees and disbursements) incurred in connection with any judgment, settlement or arbitration award resulting from any tort liability;
4.1.2.11 Compensation paid to any Building employee this Article to the extent contrary, Landlord agrees that the same is not fairly allocable to the work or service provided by such employee to the Building;
4.1.2.12 Costs of major repairs or replacements incurred by reason of fire or other casualty or caused by to the exercise roof of the right of eminent domain, whether or not insurance proceeds or a condemnation award are recovered or adequate for such purposes (however, deductibles are includable in Direct Expenses);
4.1.2.13 Costs of any heating, ventilating, air conditioning, janitorial or other Building services provided to other tenants during other than Building business hours;
4.1.2.14 Rent or other charges payable under any ground or underlying lease;
4.1.2.15 Costs of any item which are reimbursable to Landlord by other tenants or third parties other than through operating costs pass-through provisions in the leases of other tenants in the Building (if any);
4.1.2.16 Except for normal office equipment capitalized on Landlord's financial books and short-term rentals of machines or equipment, lease payments for rented equipment, the cost of which equipment would constitute a capital expenditure if the equipment were to have been purchased (except to the extent that amortization of any such capital expenditure would be permitted as a Direct Expense pursuant to the Lease);
4.1.2.17 The cost of furnishing and installing replacement light bulbs and ballasts in any tenant areas of the Building, excluding the Premises;
4.1.2.18 An amount equal to all amounts received by Landlord through proceeds of insurance to the extent the proceeds are compensation for expenses which (i) previously were included in operating costs hereunder, (ii) are included in operating costs for the comparative year in which the insurance proceeds are received or (iii) will records shall not be included as operating costs in a subsequent comparative year;
4.1.2.19 Costs and expenses within the definition of governmental licenses and permits, or renewals thereof, unless the same are for governmental licenses or permits normal to the operation or maintenance of the building project;
4.1.2.20 Costs of any work or service performed for any facility or property other than the Building;
4.1.2.21 Any expenses related exclusively to any retail or storage space in, on or about the Building or appurtenant or adjacent thereto; and
4.1.2.22 Costs of electrical energy furnished directly to any Premises of other tenants, or to other rentable areas, of the Building, other than costs of electrical energy for the Building’s HVAC system. All Direct Expenses shall be entirely net of rebates, credits and similar items of which Landlord receives the benefitCosts.”
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