Exclusions from Operating Expenses. Notwithstanding any term or condition set forth in this Exhibit or the provisions of the Master Lease or Sublease to the contrary, Operating Expenses shall not include any of the following:
(a) Any ground lease rental.
(b) Costs incurred by Landlord with respect to goods and services (including utilities sold and supplied to tenants and occupants of the Building) to the extent that Landlord is entitled to direct reimbursement for such costs other than through the operating expense pass-through provisions of such tenants’ leases or which Landlord provides selectively to one or more, but not all, tenants without reimbursement.
(c) Costs incurred by Landlord for the repair of damage to the Building and/or the Land to the extent that Landlord is reimbursed by insurance or condemnation proceeds or by tenants, warrantors or other third parties.
(d) Costs, including permit, license and inspection costs, incurred with respect to the installation of tenant improvements made for any tenants in the Building or incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space for tenants or other occupants of the Building.
(e) Salaries and bonuses of officers, executives and employees of Landlord not employed exclusively at the Building or who are above the level of Building Manager.
(f) Depreciation and amortization of any type except on materials, tools and supplies purchased by Landlord to enable Landlord to supply services Landlord might otherwise contract for with a third party, all as determined in accordance with generally accepted accounting practices, consistently applied, and when depreciation or amortization is permitted or required, the item shall be amortized over its useful life.
(g) Attorneys’ fees and other costs and expenses incurred in connection with negotiations or disputes with present or prospective tenants or other occupants of the Building (including costs incurred due to violations by tenants of the terms and conditions of their leases).
(h) Costs of a capital nature, including, without limitation, capital improvements, capital replacements, capital repairs, capital equipment and capital tools, and any improvements or alterations incurred to comply with any applicable Legal Requirements as set forth in Article 5 of the Master Lease all as determined in accordance with generally accepted accounting practices, consistently applied.
(i) Brokerage commissions, finders’ fees, attorneys’ fees and other costs incurred b...
Exclusions from Operating Expenses. Notwithstanding the terms of Section 5.6, the term "Operating Expenses" shall not include any of the following:
5.7.1 Leasing commissions or legal fees incurred in lease preparation;
5.7.2 Depreciation, interest, or amortization on promissory notes secured by the Real Property and all costs and expenses relating to debts secured by the Real Property;
5.7.3 The cost of initial Tenant Improvements to the extent of the Interior Improvement Allowance, as defined in the Improvement Agreement attached as Exhibit H;
5.7.4 The cost of capital improvements other than as specified above;
5.7.5 The costs reimbursed by insurance;
5.7.6 Insurance costs in excess of commercially reasonable costs for comparable properties, co-insurance amounts, and deductibles in excess of $10,000;
5.7.7 Bad debt or rent loss;
5.7.8 Reserves for loss, interest, or penalties resulting from Landlord's negligence;
5.7.9 All costs associated with the operation of Landlord's business (except to the extent such costs are otherwise expressly permitted as Operating Expenses hereunder);
5.7.10 Advertising and leasing costs;
5.7.11 Costs of construction of the Building and modification, alteration or repair of the Building due to defective construction or latent defects;
5.7.12 Costs occasioned by the act, omission or violation of law by Landlord or its managers, members, agents, employees, or contractors;
5.7.13 Costs occasioned by fire, acts of God, or other casualties or by the exercise of the power of eminent domain;
5.7.14 Costs for which Landlord has a right of reimbursement from others;
5.7.15 Costs to correct any construction defect in the Premises, the Building or the Real Property, or to comply with any CC&R's, underwriter's requirement, or Laws (as hereinafter defined in Section 53.3) applicable to the Premises, the Building or the Real Property on the Commencement Date;
5.7.16 Fees, commissions, attorneys' fees, costs or other disbursements incurred in connection with negotiations or disputes with any other occupant of the Real Property, if any, and costs arising from the violation by Landlord of the terms and conditions of any lease or other agreement;
5.7.17 Depreciation, amortization or other expense reserves;
5.7.18 Costs and expenses for which Tenant reimburses Landlord directly or which Tenant pays directly to a third person; and
5.7.19 Costs in the nature of management or administrative fees or expenses, other than the Management Fee described in Section 5.10.
Exclusions from Operating Expenses. The following items shall be excluded in computing LESSEE's share of operating expenses applicable to the Leased Premises:
1. Any ground lease rental;
2. Costs of capital repairs or capital replacements (except as specifically permitted herein), capital improvements and equipment; except those: (a) required by laws enacted on or after the date the temporary certificate of occupancy issued for the LESSEE work shall be validly issued with the cost of any such improvements and equipment depreciated over the usual life of the improvement and/or equipment, or (b) installed at the Leased Premises to reduce operating expenses, with the cost of any such improvements and equipment depreciated at an annual rate reasonably calculated to equal the amount of operating expenses to be saved in each calendar year throughout the term (as determined at the time LESSOR elected to proceed with the capital improvement or acquisition of the capital equipment to reduce operating expenses);
3. Rentals for items (except when needed in connection with normal repairs and maintenance of the building which shall be permitted) which if purchased, rather than rented, would constitute a capital improvement specifically excluded in Subsection 2, above;
4. Costs incurred by LESSOR for the repair for replacement of damage to the building or its contents caused by fire or other casualty;
5. Depreciation, amortization, lender's fees and interest payments except as permitted pursuant to Subsection 2, above, and, if permitted, then determined in accordance with generally accepted accounting principles, consistently applied (as applied to commercial real estate) in accordance with the anticipated useful life of such item (as reasonably determined by LESSOR);
6. Overhead and profit increments paid to LESSOR or to subsidiaries or affiliates of LESSOR for goods and/or services in the building to the extent the same exceeds the cost of such goods and/or services rendered by unaffiliated third parties on a competitive basis;
7. Advertising and promotional expenditures, and the costs of acquiring and installing signs in or on the building identifying the owner of the building;
8. Interest, principal, points and fees on debts or amortization on any mortgage or mortgages or any other debt instrument encumbering the building;
9. Any costs associated with gift taxes, excise taxes, profit taxes or capital levies;
10. Costs incurred in connection with upgrading the building to comply with handicap, hazardou...
Exclusions from Operating Expenses. Operating Expenses exclude the following expenditures:
(1) Leasing commissions, attorneys’ fees and other expenses related to leasing tenant space and constructing or performing improvements for the sole benefit of an individual tenant.
(2) Goods and services furnished to an individual tenant of the Building which are above building standard and which are separately reimbursable directly to Landlord in addition to Operating Expenses.
(3) Repairs, replacements and general maintenance paid by insurance proceeds or condemnation proceeds.
(4) Except as provided in Section 4.D(9), depreciation, amortization, interest payments on any encumbrances on the Property and the cost of capital improvements or additions.
(5) Costs of installing any specialty service, such as an observatory, broadcasting facility, luncheon club, or athletic or recreational club.
(6) Expenses for repairs or maintenance related to the Property which have been reimbursed to Landlord pursuant to warranties or service contracts.
(7) Principal payments on indebtedness secured by liens against the Property, or costs of refinancing such indebtedness.
(8) Rent paid under any ground lease, excluding any pass throughs under the ground lease for the payment of property taxes and insurance premiums.
(9) Electrical service costs paid separately by Tenant pursuant to Section 8.C of this Lease.
(10) Landlord’s general overhead and general administrative expenses except as provided in Section 4.D(2).
(11) Electrical, gas and other utility service costs provided to other tenant spaces in the Building to the extent Landlord separately charges such other tenants for the costs of such services.
(12) Costs incurred due to a fire or other casualty as a result of the gross negligence or willful misconduct by Landlord or its agents.
(13) Rental of items which if purchased would constitute a capital expenditure which could not be included in Operating Expenses pursuant to Section 4.D(9) above.
(14) Costs arising from Landlord’s charitable or political contributions.
(15) Transfer, gains, inheritance, estate, income or franchise taxes or other such taxes imposed on or measured by the income of Landlord from the operation of the Property, except to the extent specifically included pursuant to Section 4.D(5).
(16) Interest and penalties due to late payment of any amounts owed by Landlord, except such as may be incurred as a result of Tenant’s failure to timely pay its portion of such amounts or as a result of Landlor...
Exclusions from Operating Expenses. Notwithstanding the foregoing, “Operating Expenses” shall exclude or have deducted from them, as the case may be and shall be appropriate:
1. Commissions payable to any real-estate broker for the leasing of space;
2. Costs to cure defects in the workmanship or materials of the Work Items to be performed by the Landlord;
3. Costs for any work performed by Landlord for and at the expense of any other tenant;
4. Interest or penalties for overdue payment of taxes to the extent Landlord has received sufficient funds from tenants to pay such taxes;
5. Costs to Landlord for repairs made as a result of a casualty or condemnation to the extent that the Landlord receives casualty and condemnation proceeds from a third party;
6. Attorney’s fees, costs and other expenses incurred by Landlord in connection with the enforcement of the obligations of any other tenant or negotiation of disputes with existing or prospective tenants;
7. Costs of tenant improvements performed by Landlord for other tenants;
8. Costs incurred by Landlord due to the violation by Landlord of any of the terms and conditions of the Lease;
9. Interest or other costs associated with Landlord’s financing of the property or any portion thereof; and
10. Executive’s salaries above the grade of property manager.
Exclusions from Operating Expenses. Notwithstanding anything to the ---------------------------------- contrary in Section
4.1. Operating Expenses shall not include: (i) depreciation, amortization or other similar non-cash items; (ii) interest on and amortization of debts and other payments and charges for borrowed money (except as otherwise expressly permitted under Section 4.1); (iii) leasehold improvements made for tenants of the Building; (iv) leasing commissions, attorneys' fees, costs and disbursements and other expenses (including advertising) incurred in connection with leasing renovating, or improving space for tenants or other occupants or prospective tenants or occupants of the Building, or in connection with any eviction or other legal action involving any tenant or occupant of the Building; (v) refinancing costs; (vi) the cost of any work or services performed for any occupants of any leased space in the Building (including Tenant), whether at the expense of Landlord or such occupants, to the extent that such work or services is in excess of the work or services which Landlord, at its expense, is required to furnish to Tenant under this Lease; (vii) the cost of any electricity furnished to the Premises or any other leased space in the Building in excess of the electricity to be provided by Landlord under this Lease; (viii) damages recoverable by any occupant due to violation by Landlord of any of the terms and conditions of this Lease or any other lease relating to the Building or any other contract or obligation; (ix) repairs or other items to the extent Landlord is reimbursed by insurance proceeds or third parties; (x) capital repairs and replacements or other capital improvements (except that capital repairs, replacements or other improvements shall be permitted as provided above in Section 4.1 if they do not relate to a general renovation of the Building or to cause the Land and or Building to comply with Legal Requirements (including, without limitation, the A.D.A., any environmental laws, building or fire codes) existing on the date of this Lease; (xi) any types of utility services (including, without limitation, water, gas, electricity, sewer and telephone) that at any time during the Lease Term are separately metered or contracted for and paid for by Tenant directly, to the extent serving any portions of the Building except the Common Area,(xii) costs of environmental remediation, whether or not the need for such remediation is disclosed in the Environmental Report; (xii...
Exclusions from Operating Expenses. Despite any other provision of Subsection 5.2.4, Operating Expenses shall not include: (a) depreciation, interest, and amortization on mortgages or ground lease payments, except as otherwise stated in this Section 5.2, (b) legal fees incurred in negotiating and enforcing tenant leases, (c) real estate brokers' leasing commissions, (d) initial improvements or alterations to tenant spaces, (e) the cost of providing any service directly to and paid directly by any tenant, (f) any costs expressly excluded from Operating Expenses elsewhere in this Lease, (g) costs of any items for which Landlord receives reimbursement from insurance proceeds or a third party. Insurance proceeds shall be excluded from Operating Expenses in the year in which they are received, except that any deductible amount under any insurance policy shall be included within Operating Expenses, (h) costs of capital improvements, except as otherwise stated in this Section 5.2.
Exclusions from Operating Expenses. Notwithstanding the above, Operating Expenses shall not include the following:
Exclusions from Operating Expenses. Operating Expenses exclude the following expenditures:
(1) Leasing commissions, attorneys’ fees and other expenses related to leasing tenant space and constructing improvements for the sole benefit of an individual tenant.
(2) Goods and services furnished to an individual tenant of the Building which are above building standard and which are separately reimbursable directly to Landlord in addition to Excess Operating Expenses.
(3) Repairs, replacements and general maintenance paid by insurance proceeds or condemnation proceeds.
(4) Except as provided in Section 4.D(9), depreciation, amortization, interest payments on any encumbrances on the Property and the cost of capital improvements or additions.
(5) Costs of installing any specialty service, such as an observatory, broadcasting facility, luncheon club, or athletic or recreational club.
(6) Expenses for repairs or maintenance related to the Property which have been reimbursed to Landlord pursuant to warranties or service contracts.
(7) Costs (other than maintenance costs) of any art work (such as sculptures or paintings) used to decorate the Building.
(8) Principal payments on indebtedness secured by liens against the Property, or costs of refinancing such indebtedness.
Exclusions from Operating Expenses. The term "Operating Expenses" shall not include (i) costs paid directly by Tenant; (ii) principal and interest payments on loans secured by deeds of trust recorded against property; (iii) real estate sales or leasing brokerage commissions; or
