Common use of Definition of Operating Expenses Clause in Contracts

Definition of Operating Expenses. The term “Operating Expenses” includes all actual and reasonable expenses as compared to comparable buildings in the area as incurred by Lessor with respect to the maintenance and operation of the Building, including, but not limited to, the following: a management fee not to exceed two percent (2%) of gross rental income per annum (see maintenance, repair and replacement costs (excluding capital costs and Lessor’s cost for maintenance of the roof, foundation and structural soundness of the exterior walls of the building, mechanical, electrical and plumbing systems service of the Building and common areas as provided in Section 5.02 hereof); wages and benefits payable to employees of Lessor to the extent their duties are directly connected with the operation and maintenance of the Building; all services, utilities for common areas, supplies, repairs, replacement or other expenses for maintaining and operating the parking areas; the cost, amortized over its useful life, of any expense required to be capitalized under GAAP principles and any capital improvement made to the Building by Lessor after the date of this Lease which are required under any governmental law or regulation; and the cost, amortized over its useful life, of installation of any device or other equipment to the extent it improves the operating efficiency of any system within the Leased Premises and thereby reduces Operating Expenses, provided that, prior to installing any such device or equipment Lessor will inform Lessee of such installation and the estimated cost savings. The term Operating Expenses does not include the following: income and franchise taxes of Lessor; expenses incurred in leasing to or procuring of lessees, leasing commissions, advertising expenses and expenses for the renovating of space for new lessees; interest or principal payments on any mortgage or other indebtedness of lessor; compensation paid to any employee of Lessor other than maintenance and property management personnel to the extent these services are directly associated with the operation and maintenance of the Building; any depreciation allowance or expense (except for depreciation of capital improvements and equipment specifically included within the definition of Operating Expenses); or operating expenses which are the responsibility of Lessee or any other lessee of the Building; or expenses (herein called “Defect Expenses”) incurred as a result of or caused by latent defects, punch list items, or Lessor’s failure to construct the Lessee Improvements (hereinafter defined) in accordance with the requirements of this Lease and Lessee Improvements Final Plans and Specifications as provided herein (such items being herein called “Defects”); operating expenses otherwise caused by or resulting from Lessor’s breach of its obligations under this Lease; rent payable by Lessor pursuant to any ground lease; except as provided above with respect to capital improvements, costs relating to violation of law; costs relating to late payment of taxes; Lessor’s administrative overhead (except as provided herein as related to the Building); and costs relating to the presence of hazardous materials at the Building prior to the date hereof.

Definition of Operating Expenses. The term “Operating Expenses” "operating expenses" includes all actual and reasonable expenses as compared to comparable buildings in the area as incurred by Lessor with respect to the maintenance and operation of the Buildingbuilding of which the leased premises are a part, including, but not limited to, the following: a management fee not to exceed two percent (2%) of gross rental income per annum (see maintenance, repair and replacement costs (excluding capital costs and Lessor’s cost for maintenance of the roofcosts; security; management fees, foundation and structural soundness of the exterior walls of the building, mechanical, electrical and plumbing systems service of the Building and common areas as provided in Section 5.02 hereof); wages and benefits payable to employees of Lessor to the extent their whose duties are directly connected with the operation and maintenance of the Buildingbuilding; all services, utilities for common areasutilities, supplies, repairs, replacement replacements, or other expenses for maintaining and operating the common parking and plaza areas; the cost, including interest, amortized over its useful life, of any expense required to be capitalized under GAAP principles and any capital improvement made to the Building building by Lessor after the date of this Lease which are is required under any governmental law or regulationregulation that was not applicable to the building at the time it was constructed; and the cost, including interest, amortized over its useful life, of installation of any device or other equipment to the extent it which improves the operating efficiency of any system within the Leased Premises leased premises and thereby reduces Operating Expensesoperating expenses; all other expenses which would generally be regarded as operating and maintenance expenses which would reasonably be amortized over a period not to exceed five years; all real property taxes and installments of special assessments, provided thatincluding dues and assessments by means of deed restrictions and/or owners' associations which accrue against the building of which the leased premises are a part during the term of this Lease; and all insurance premiums Lessor is required to pay or deems necessary to pay, prior including public liability insurance, with respect to installing any such device or equipment Lessor will inform Lessee of such installation and the estimated cost savingsbuilding. The term Operating Expenses operating expenses does not include the following: repairs, restoration or other work occasioned by fire, wind, the elements of other casualty; income and franchise taxes of Lessor; expenses incurred in leasing to or procuring of lessees, leasing commissions, advertising expenses and expenses for the renovating of space for new, leasing commissions, advertising expenses and expenses for the renovating of space for new lessees; interest or principal payments on any mortgage or other indebtedness of lessorLessor; compensation paid to any employee or Lessor above the grade of Lessor other than maintenance and property management personnel to the extent these services are directly associated with the operation and maintenance of the Buildingmanager; any depreciation allowance or expense (except for depreciation of capital improvements and equipment specifically included within the definition of Operating Expenses)expense; or operating expenses which are the responsibility of Lessee or any other lessee of the Building; or expenses (herein called “Defect Expenses”) incurred as a result of or caused assumed hereunder by latent defects, punch list items, or Lessor’s failure to construct the Lessee Improvements (hereinafter defined) in accordance with the requirements of this Lease and Lessee Improvements Final Plans and Specifications as provided herein (such items being herein called “Defects”); operating expenses otherwise caused by or resulting from Lessor’s breach of its obligations under this Lease; rent payable by Lessor pursuant to any ground lease; except as provided above with respect to capital improvements, costs relating to violation of law; costs relating to late payment of taxes; Lessor’s administrative overhead (except as provided herein as related to the Building); and costs relating to the presence of hazardous materials at the Building prior to the date hereofLessee.

Definition of Operating Expenses. The term “Operating Expenses” "operating expenses" includes all actual and reasonable expenses as compared to comparable buildings in the area as incurred by Lessor with respect to the maintenance and operation of the Buildingbuilding of which the leased premises are a part, including, but not limited to, the following: a management fee not to exceed two percent (2%) of gross rental income per annum (see maintenance, repair and replacement costs (excluding capital costs and Lessor’s cost for maintenance of the roofcosts; security; management fees, foundation and structural soundness of the exterior walls of the building, mechanical, electrical and plumbing systems service of the Building and common areas as provided in Section 5.02 hereof); wages and benefits payable to employees of Lessor to the extent their whose duties are directly connected with the operation and maintenance of the Buildingbuilding; all services, utilities for common areasutilities, supplies, repairs, replacement replacements, or other expenses for maintaining and operating the common parking and plaza areas; the cost, including interest, amortized over its useful life, of any expense required to be capitalized under GAAP principles and any capital improvement made to the Building building by Lessor after the date of this Lease which are is required under any governmental law or regulationregulation that was not applicable to the building at the time it was constructed; and the cost, including interest, amortized over its useful life, of installation of any device or other equipment to the extent it which improves the operating efficiency of any system within the Leased Premises leased premises and thereby reduces Operating Expensesoperating expenses; all other expenses which would generally be regarded as operating and maintenance expenses which would reasonably be amortized over a period not to exceed five years; all real property taxes and installments of special assessments, provided thatincluding dues and assessments by means of deed restrictions and/or owners' associations which accrue against the building of which the leased premises are a part during the term of this Lease; and all insurance premiums Lessor is required to pay or deems necessary to pay, prior including public liability insurance, with respect to installing any such device or equipment Lessor will inform Lessee of such installation and the estimated cost savingsbuilding. The term Operating Expenses operating expenses does not include the following: repairs, restoration or other work occasioned by fire, wind, the elements or other casualty; income and franchise taxes of Lessor; expenses incurred in leasing to or procuring of lessees, leasing commissions, advertising expenses and expenses for the renovating of space for new lessees; interest or principal payments on any mortgage or other indebtedness of lessorLessor; compensation paid to any employee of Lessor other than maintenance and above the grade of property management personnel to the extent these services are directly associated with the operation and maintenance of the Buildingmanager; any depreciation allowance or expense (except for depreciation of capital improvements and equipment specifically included within the definition of Operating Expenses)expense; or operating expenses which are the responsibility of Lessee or any other lessee of the Building; or expenses (herein called “Defect Expenses”) incurred as a result of or caused assumed hereunder by latent defects, punch list items, or Lessor’s failure to construct the Lessee Improvements (hereinafter defined) in accordance with the requirements of this Lease and Lessee Improvements Final Plans and Specifications as provided herein (such items being herein called “Defects”); operating expenses otherwise caused by or resulting from Lessor’s breach of its obligations under this Lease; rent payable by Lessor pursuant to any ground lease; except as provided above with respect to capital improvements, costs relating to violation of law; costs relating to late payment of taxes; Lessor’s administrative overhead (except as provided herein as related to the Building); and costs relating to the presence of hazardous materials at the Building prior to the date hereofLessee.

Definition of Operating Expenses. The term “Operating Expenses” includes all actual and reasonable expenses as compared to comparable buildings in the area as incurred by Lessor with respect to the maintenance and operation of the Building, including, but not limited to, the following: a management fee not to exceed two percent (2%) of gross rental income per annum (see maintenance, repair and replacement costs (excluding capital costs and Lessor’s cost for maintenance of the roof, foundation and structural soundness of the exterior walls of the building, mechanical, electrical and plumbing systems service of the Building and common areas as provided in Section 5.02 hereof)costs; security; wages and benefits payable to employees of Lessor to the extent their duties are directly connected with the operation and maintenance of the Building; all services, utilities for common areas, supplies, repairs, replacement or other expenses for maintaining and operating the common parking and plaza areas; the cost, amortized over its useful life, of any expense required to be capitalized under GAAP principles and any capital improvement made to the Building by Lessor after to the date of this Lease which are extent required under any governmental law or regulation; and the cost, amortized over its useful life, of installation of any device or other equipment to the extent it improves the operating efficiency of any system within the Leased Premises and thereby reduces Operating Expenses, provided that, prior to installing any such device or equipment Lessor will inform Lessee that the amount included in Operating Expenses does not exceed the amount of such installation and the estimated cost savings, as reasonably estimated or determined by Lessor. The term Operating Expenses does not include the following: income and franchise taxes of Lessor; expenses and attorneys’ fees incurred in leasing to or procuring of lessees, leasing commissions, advertising expenses and expenses for the renovating of space for new lessees; interest or principal payments on any mortgage or other indebtedness of lessor; compensation paid to any employee of Lessor other than maintenance and property management personnel to the extent these services are directly associated with the operation and maintenance of the Building; capital expenses except as expressly stated above; any depreciation allowance or expense (except for depreciation of capital improvements and equipment specifically included within the definition of Operating Expenses); or operating expenses which are the responsibility of Lessee or any other lessee of the Building; or expenses (herein called “Defect Expenses”) incurred as a result of or caused by latent defects, punch list items, or Lessor’s failure to construct the Building shell improvements or Lessee Improvements (hereinafter defined) in accordance with the requirements of this Lease and substantially in accordance with the Final Shell Plans and Specifications and Lessee Improvements Final Plans and Specifications as provided herein (such items being herein called “Defects”); operating expenses otherwise caused by or resulting from Lessor’s breach of its obligations under this Lease or any other lease of space; any amounts for which Lessor is reimbursed by insurance proceeds or any other source; property management fees in excess of 4.0 percent of rent receipts from the Building; expenses in connection with services or other benefits which are not offered to Lessee or for which Lessee is charged directly but which are provided to any other occupants of the Building; amounts paid to Lessor or any of its affiliates for goods and/or services to the extent the amount exceeds the cost that would have been payable by unaffiliated third parties on a competitive basis; electric power costs for which any occupant directly contracts with the provider or for which any occupant is separately metered; expenses in connection with complying with the Americans with Disabilities Act, including without limitation penalties or damages incurred due to non-compliance, except to the extent the same are permitted to be passed through as Operating Expenses pursuant to Section 16.1 of this Lease; rent payable tax penalties incurred as a result of Lessor’s failure to make payments and/or to file any return when due; cost for which Lessor is compensated by Lessor pursuant to any ground lease; except as provided above with respect to capital improvements, costs relating to violation of lawa management fee; costs relating to late payment arising from the gross negligence or fault of taxesother occupants or of Lessor, its agents, vendors or contractors; Lessor’s administrative overhead (except as provided herein as related unless due to the Building); and costs relating to acts of Lessee, expenses arising from the presence of hazardous materials at Hazardous Substances as defined in Section 3.6, in or about the Building prior or the project, and expenses incurred in connection with any Hazardous Substances cleanup, response action, or remediation on, in, under or about the Building or the project, including but not limited to costs and expenses associated with the defense, administration, settlement, monitoring or management thereof; charitable contributions; costs and attorneys’ fees arising from claims, disputes or proceedings pertaining to the date hereof.Lessor or any prospective or existing tenant for the project; costs of any tap fees or any sewer or water connection fees for the benefit of any occupant; any above-standard janitorial services provided to other occupants that are not provided to Lessee; and amounts deposited into any reserves maintained by Lessor or its lender for subsequent payments of Operating Expenses or for any other purposes. * Confidential Treatment Requested

Definition of Operating Expenses. The term “Operating Expenses” includes all actual and reasonable expenses as compared to comparable buildings in the area as incurred by Lessor with respect to the maintenance and operation of the Building, including, but not limited to, the following: a management fee not to exceed two percent (2%) of gross rental income per annum (see maintenance, repair and replacement costs (excluding capital costs and Lessor’s cost for maintenance of the roof, foundation and structural soundness of the exterior walls of the building, mechanical, electrical and plumbing systems service of the Building and common areas as provided in Section 5.02 hereof)costs; security; wages and benefits payable to employees of Lessor to the extent their duties are directly connected with the operation and maintenance of the Building; all services, utilities for common areas, supplies, repairs, replacement or other expenses for maintaining and operating the common parking and plaza areas; the cost, amortized over its useful life, of any expense required to be capitalized under GAAP principles and any capital improvement made to the Building by Lessor after to the date of this Lease which are extent required under any governmental law or regulation; and the cost, amortized over its useful life, of installation of any device or other equipment to the extent it improves the operating efficiency of any system within the Leased Premises and thereby reduces Operating Expenses, provided that, prior to installing any such device or equipment Lessor will inform Lessee that the amount included in Operating Expenses does not exceed the amount of such installation and the estimated cost savings, as reasonably estimated or determined by Lessor. The term Operating Expenses does not include the following: income and franchise taxes of Lessor; expenses and attorneys’ fees incurred in leasing to or procuring of lessees, leasing commissions, advertising expenses and expenses for the renovating of space for new lessees; interest or principal payments on any mortgage or other indebtedness of lessor; compensation paid to any employee of Lessor other than maintenance and property management personnel to the extent these services are directly associated with the operation and maintenance of the Building; capital expenses except as expressly stated above; any depreciation allowance or expense (except for depreciation of capital improvements and equipment specifically included within the definition of Operating Expenses); or operating expenses which are the responsibility of Lessee or any other lessee of the Building; or expenses (herein called “Defect Expenses”) incurred as a result of or caused by latent defects, punch list items, or Lessor’s failure to construct the Building shell improvements or Lessee Improvements (hereinafter defined) in accordance with the requirements of this Lease and substantially in accordance with the Final Shell Plans and Specifications and Lessee Improvements Final Plans and Specifications as provided herein (such items being herein called “Defects”); operating expenses otherwise caused by or resulting from Lessor’s breach of its obligations under this Lease or any other lease of space; any amounts for which Lessor is reimbursed by insurance proceeds or any other source; property management fees in excess of 4.0 percent of rent receipts from the Building; expenses in connection with services or other benefits which are not offered to Lessee or for which Lessee is charged directly but which are provided to any other occupants of the Building; amounts paid to Lessor or any of its affiliates for goods and/or services to the extent the amount exceeds the cost that would have been payable by unaffiliated third parties on a competitive basis; electric power costs for which any occupant directly contracts with the provider or for which any occupant is separately metered; expenses in connection with complying with the Americans with Disabilities Act, including without limitation penalties or damages incurred due to non-compliance, except to the extent the same are permitted to be passed through as Operating Expenses pursuant to Section 16.1 of this Lease; rent payable tax penalties incurred as a result of Lessor’s failure to make payments and/or to file any return when due; cost for which Lessor is compensated by Lessor pursuant to any ground lease; except as provided above with respect to capital improvements, costs relating to violation of lawa management fee; costs relating to late payment arising from the gross negligence or fault of taxesother occupants or of Lessor, its agents, vendors or contractors; Lessor’s administrative overhead (except as provided herein as related unless due to the Building); and costs relating to acts of Lessee, expenses arising from the presence of hazardous materials at Hazardous Substances as defined in Section 3.6, in or about the Building prior or the project, and expenses incurred in connection with any Hazardous Substances cleanup, response action, or remediation on, in, under or about the Building or the project, including but not limited to costs and expenses associated with the defense, administration, settlement, monitoring or management thereof; charitable contributions; costs and attorneys’ fees arising from claims, disputes or proceedings pertaining to the date hereofLessor or any prospective or existing tenant for the project; costs of any tap fees or any sewer or water connection fees for the benefit of any occupant; any above-standard janitorial services provided to other occupants that are not provided to Lessee; and amounts deposited into any reserves maintained by Lessor or its lender for subsequent payments of Operating Expenses or for any other purposes.

Definition of Operating Expenses. The term “"Operating Expenses” " includes all actual and reasonable expenses as compared to comparable buildings in the area as incurred by Lessor with respect to the maintenance and operation of the Building, including, but not limited to, the following: a management fee not to exceed two percent (2%) of gross rental income per annum (see maintenance, repair and replacement costs (excluding capital costs and Lessor’s cost for maintenance of the roof, foundation and structural soundness of the exterior walls of the building, mechanical, electrical and plumbing systems service of the Building and common areas as provided in Section 5.02 hereof)costs; security; wages and benefits payable to employees of Lessor to the extent their duties are directly connected with the operation and maintenance of the Building; all services, utilities for common areas, supplies, repairs, replacement or other expenses for maintaining and operating the common parking and plaza areas; the cost, amortized over its useful life, of any expense required to be capitalized under GAAP principles and any capital improvement made to the Building by Lessor after the date of this Lease which are Lease, whether required under any governmental law or regulationregulation or otherwise; and the cost, amortized over its useful life, of installation of any device or other equipment to the extent it improves the operating efficiency of any system within the Leased Premises and thereby reduces Operating Expenses, provided that, prior to installing any such device or equipment Lessor will inform Lessee of such installation and the estimated cost savings. The term Operating Expenses does not include the following: income and franchise taxes of Lessor; expenses incurred in leasing to or procuring of lessees, leasing commissions, advertising expenses and expenses for the renovating of space for new lessees; interest or principal payments on any mortgage or other indebtedness of lessor; compensation paid to any employee of Lessor other than maintenance and property management personnel to the extent these services are directly associated with the operation and maintenance of the Building; any depreciation allowance or expense (except for depreciation of capital improvements and equipment specifically included within the definition of Operating Expenses); or operating expenses which are the responsibility of Lessee or any other lessee of the Building; or expenses (herein called “"Defect Expenses”") incurred as a result of or caused by latent defects, punch list items, or Lessor’s 's failure to construct the Shell Building Improvements or Lessee Improvements (hereinafter defined) in accordance with the requirements of this Lease and substantially in accordance with the Final Shell Plans and Speculations and Lessee Improvements Final Plans and Specifications as provided herein (such items being herein called “"Defects”"); operating expenses otherwise caused by or resulting from Lessor’s 's breach of its obligations under this the Lease; rent payable by Lessor pursuant to any ground lease; except as provided above with respect to capital improvements, costs relating to violation of law; costs relating to late payment of taxes; Lessor’s administrative overhead (except as provided herein as related to the Building); and costs relating to the presence of hazardous materials at the Building prior to the date hereof.