Operating Expense Exclusions. Operating Expenses" shall exclude all Landlord profits and all costs in excess of costs reasonably incurred by prudent operators and managers of similar office building in the Rockville, Maryland area. Landlord shall use commercially reasonable efforts to minimize Operating Expenses. Operating Expenses shall be net of any reimbursement, refund or credit received by Landlord for the corresponding item of Operating Expense. In no event shall Landlord recover from County more than an amount equal to Tenant’s Pro Rata Share of One Hundred Percent (100%) of Operating Expenses. Landlord shall not recover more than the full actual cost of any item through Additional Rent or charges to other Building tenants. Landlord shall make no profit in connection with Operating Expenses nor shall Landlord recover any item of cost twice through Operating Expenses. The following items shall be specifically excluded from the Operating Expenses: (1) expenses for any capital improvements that were made to the Land or Building after the Lease Commencement Date that are not reasonably expected to reduce Operating Expenses; (2) expenses occasioned by fire, windstorm or other insured casualty to the extent Landlord is reimbursed by insurance for such loss; (3) advertising, commissions, tenant improvements and all other expenses incurred in leasing or procuring new tenants; (4) expenses for repairs or improvements to other tenants’ leased space; (5) legal fees incurred in enforcing the terms of any lease or arising out of any mortgage or ground lease affecting the Building; (6) interest, principal, rental, late fees or other costs of any indebtedness or ground lease; (7) the cost of any work or service performed for any tenant at such tenant’s cost; (8) the cost of any work or materials performed or supplied to any facility other than the Building; (9) the cost of any items for which Landlord is reimbursed by insurance, any tenant or otherwise; (10) salaries, wages and benefits of Landlord’s officers, directors, and employees above the level of Building manager; (13) the cost of installing, operating, maintaining or refurbishing any specialty service, such as an observatory, broadcasting facility, luncheon club, restaurant, retail store, sundry shop, athletic or recreational club or locker rooms, meeting rooms or lounges; (14) any charge for depreciation of the Building or equipment; (15) any tenant improvement allowance or other payment from Landlord to Tenant; (16) taxes excluded from the definition of “Taxes”; (17) bad debt losses or reserves therefore; (18) costs of selling, syndicating, financing, mortgaging, or hypothecating any of the Building or Land or Landlord’s interest in the Building or Land; (19) expenses resulting from tortious conduct of Landlord, its employees, agents or contractors; and (20) any janitorial, HVAC and/or electrical expenses for the Leased Premises that Tenant pays directly to the Landlord or third (3rd) party.
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Samples: Lease Agreement
Operating Expense Exclusions. Operating Expenses" shall exclude all Landlord profits and all costs in excess of costs reasonably incurred by prudent operators and managers of similar office building in the Rockville, Maryland area. Landlord shall use commercially reasonable efforts to minimize Operating Expenses. Operating Expenses shall be net of any reimbursement, refund or credit received by Landlord for the corresponding item of Operating Expense. In no event shall Landlord recover from County more than an amount equal to Tenant’s Pro Rata Proportionate Share of One Hundred Percent (100%defined below) of Operating Expenses. Landlord shall not recover more than the full actual cost of any item through Additional Rent or charges to other Building tenants. Landlord shall make no profit in connection with Operating Expenses nor shall Landlord not recover any item of cost twice through Operating Expenses. The following items shall be specifically excluded from the Operating Expenses: (1) expenses for any capital improvements that were made to the Land or Building after the Lease Commencement Date that are not reasonably expected to reduce Operating Permitted Capital Expenses; (2) expenses occasioned by fire, windstorm or other insured casualty to the extent Landlord is reimbursed by insurance for such losscasualty; (3i) advertising, commissions, tenant improvements and all other expenses incurred in leasing or procuring new tenants; (4ii) expenses for repairs or improvements to other tenants’ leased space; (5) legal fees incurred in enforcing the terms of any lease or arising out of any mortgage or ground lease affecting the Building; (6) interest, principal, rental, late fees or other costs of any indebtedness or ground lease; (7iii) the cost of any work or service performed for any tenant at such tenant’s cost; (8) costs incurred in connection with remediating or cleaning up any contamination caused by Hazardous Substances (as defined below), including asbestos-containing materials (“ACM”), in the Building or on the Land, including but not limited to, the cost of monitoring, encapsulating, or abating any Hazardous Substances, including ACM, from the Building or the Land, but only if such contamination was not caused by Tenant or its agents, employees, or invitees; (9) the cost of correcting structural defects or design flaws in the Leased Premises or in the Building or any of its major systems; (10) the cost of any work or materials performed or supplied to any facility other than the BuildingProperty; (911) the cost of any items for which Landlord is reimbursed by insurance, any tenant or otherwise; (10iv) salaries, wages and benefits of Landlord’s officers, directors, and employees above who are not assigned in whole or in part to the level operation, management, maintenance, or repair of Building managerthe Property, and in the case of such parties who are assigned only in part to the operation, management, maintenance, or repair of the Property, the portion of such salaries, wages, benefits, and other compensation not allocable to the Property; (13) the cost of installing, operating, maintaining or refurbishing any specialty service, such as an observatory, broadcasting facility, luncheon club, restaurant, retail store, sundry shop, athletic or recreational club or locker rooms, meeting rooms or lounges; (14) any charge for depreciation of the Building or equipment; (15) costs of compliance with the Americans with Disabilities Act (“ADA”) with respect to the Common Areas if required by the ADA after the Lease Commencement Date; (16) any tenant improvement allowance or other payment from Landlord to Tenant; (16) taxes excluded from the definition of “Taxes”; (17) bad debt losses or reserves therefore; (18) costs of selling, syndicating, financing, mortgaging, or hypothecating any of the Building or Land Property or Landlord’s interest in the Building or LandProperty; (19) expenses resulting from tortious conduct the negligence or intentional misconduct of Landlord, its employees, agents employees or contractorsagents; and (20) any janitorial, HVAC and/or electrical expenses for the Leased Premises that Tenant pays directly to the Landlord or a third (3rd) party.
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Samples: Lease Agreement
Operating Expense Exclusions. Operating Expenses" shall exclude all Landlord profits and all costs in excess of costs reasonably incurred by prudent operators and managers of similar office building in the Rockville, Maryland area. Landlord shall use commercially reasonable efforts to minimize Operating Expenses. Operating Expenses shall be net of any reimbursement, refund or credit received by Landlord for not include the corresponding item of Operating Expense. In no event shall Landlord recover from County more than an amount equal to Tenant’s Pro Rata Share of One Hundred Percent (100%) of Operating Expenses. Landlord shall not recover more than the full actual cost of any item through Additional Rent or charges to other Building tenants. Landlord shall make no profit in connection with Operating Expenses nor shall Landlord recover any item of cost twice through Operating Expenses. The following items shall be specifically excluded from the Operating Expenses: (1) expenses any loan costs for any capital improvements that were made interest, principal amortization, or other payments on loans to the Land or Building after the Lease Commencement Date that are not reasonably expected to reduce Operating ExpensesLandlord; (2) leasing commissions, advertising expenses occasioned by fire, windstorm or and all other insured casualty to the extent Landlord is reimbursed by insurance for such lossmarketing expenses; (3) advertising, commissions, tenant improvements and all legal expenses other expenses than those incurred in leasing or procuring new for the general benefit of the Building’s tenants; (4) expenses allowances, concessions, and other costs of renovating or otherwise improving space for repairs occupants of the Building or improvements to other tenants’ leased spacevacant space in the Building; (5) legal fees incurred in enforcing income taxes imposed on or measured by the terms income of any lease or arising out Landlord from the operation of any mortgage or ground lease affecting the Building; (6) interest, principal, rental, late fees costs incurred in connection with the original construction of the Building or other costs for correcting defects or inadequacy in the construction of any indebtedness or ground leasethe Building; (7) the cost for depreciation of any work or service performed for any tenant at such tenant’s cost; (8) the cost of any work or materials performed or supplied to any facility other than the Building; (8) for capital improvements made to the Building, other than capital improvements described in 2.3.1.2 above and except for items which, though capital for accounting purposes, are properly considered maintenance and repair items, such as painting of Common Areas, replacement of carpet in elevator lobbies, and the like provided their useful lives are five years or less; (9) for repair, replacements and general maintenance that should be paid by proceeds of insurance or by Tenant or other third parties, and alterations attributable solely to tenants of the cost of any items for which Landlord is reimbursed by insurance, any tenant or otherwiseBuilding other than Tenant; (10) salariesrents due under ground leases; (11) any bad debt loss, wages and benefits rent loss or reserves for bad debt or rent loss; (12) the expense of Landlord’s officers, directors, and employees above services provided to other tenants in the level of Building managerwhich are not provided to Tenant on a rent inclusive basis hereunder; (13) costs associated with the cost of installing, operating, maintaining or refurbishing any specialty service, such as an observatory, broadcasting facility, luncheon club, restaurant, retail store, sundry shop, athletic or recreational club or locker rooms, meeting rooms or lounges; (14) any charge for depreciation operation of the Building or equipment; (15) any tenant improvement allowance or other payment from business of the entity which constitutes Landlord to Tenant; (16) taxes excluded as the same are distinguished from the definition costs of “Taxes”; operation of the Building, including accounting and legal matters, costs of defending any lawsuits with any mortgagee (17) bad debt losses or reserves therefore; (18) except as the actions of Tenant may be in issue), costs of selling, syndicating, financing, mortgaging, mortgaging or hypothecating any of the Building or Land or Landlord’s interest in the Building, costs of any disputes between Landlord and its employees (if any) not engaged in Building operation, disputes of Landlord with Building management, or Landfees or costs paid in connection with disputes with other tenants; (14) any damage or loss resulting from any casualty which the Landlord covenanted to insure against; (15) management fees in excess of three percent (3%) of gross revenue of the Building, (16) salaries to Manager or Landlord above the position of property manager, (17) charitable contributions; (18) costs to install, repair or remove signs at or near the top of the Building that include the name of a tenant of the Building; and (19) any other reasonable expenses which, in accordance with GAAP, would not normally be treated as Operating Costs by landlords of Class A Buildings, such as costs for artwork in excess of $5,000 annually, dining clubs, restaurants and helicopter pads (other than for emergency use) which the parties agree are not normal Operating Expenses; (20) costs for which Landlord is reimbursed; (21) unrecovered expenses directly resulting from tortious conduct the negligence of the Landlord, its agents, servants or employees; (22) the wages of any employee who does not devote substantially all of his time to the Building or to other Landlord buildings, agents but only such allocation or contractorsamount in proportion to the extent such employees devotes time to the Building (allocations of the time of pooled employees are permitted); (23) fines, penalties, and interest thereon; (2024) any janitorialcosts whatsoever incurred in connection with the ownership, HVAC and/or electrical management and operating of a garage or parking area which does not supply free parking to tenant and its invitees; (25) costs of running the Building office and salaries of persons above the one person (or more than one person in the event such persons are allocated between other buildings of Landlord) who directly supervises labor in construction and maintenance; (26) any costs or expenses for which are more than two (2) fiscal years old; (27) any costs or expenses that are incurred directly or indirectly with respect to Landlord’s indemnity obligations under this lease; (28) any costs or expenses that are incurred to make any of Landlord’s representations or warranties under this lease true and correct; (29) costs attributable to leasable area located in the Leased Premises that Tenant pays directly lobby of the Building to the extent that the use (e.g., restaurant use) of such space by a tenant imposes a burden on Building services, including cleaning, that is materially greater than those base building services provided to other tenants in the Building; (30) except as specifically provided above in Sections 2.3.1.2 and 2.3.1.3, capital items which shall be deemed to be any item having an expected useful life in excess of three years. If a capital item is leased by Landlord, rather than purchased, the decision by Landlord or third (3rd) partyto lease the item in question shall not serve to increase the Tenant’s proportionate share of operating expenses beyond that which would have applied had the item in question been purchased.
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Operating Expense Exclusions. Operating Expenses" shall exclude all Landlord profits and all costs in excess of costs reasonably incurred by prudent operators and managers of similar office building in Notwithstanding anything to the Rockvillecontrary contained herein, Maryland area. Landlord shall use commercially reasonable efforts to minimize Operating Expenses. Operating Expenses shall be net of any reimbursement, refund or credit received by Landlord for the corresponding item of Operating Expense. In no event shall Landlord recover from County more than an amount equal to Tenant’s Pro Rata Share of One Hundred Percent (100%) of Operating Expenses. Landlord shall not recover more than the full actual cost of any item through Additional Rent or charges to other Building tenants. Landlord shall make no profit in connection with Operating Expenses nor shall Landlord recover any item of cost twice through Operating Expenses. The following items shall be specifically excluded from the Operating Expensesinclude: (1) expenses for any capital improvements that were made to the Land or Building after the Lease Commencement Date that are not reasonably expected to reduce Operating Expenses; (2) expenses occasioned by fire, windstorm or other insured casualty to the extent Landlord is reimbursed by insurance for such loss; (3) advertising, commissions, tenant improvements and all other expenses incurred in leasing or procuring new tenants; (4) expenses for repairs or improvements to other tenants’ leased space; (5) legal fees incurred in enforcing the terms of any lease or arising out of any mortgage or ground lease affecting the Building; (6) interest, principal, rental, late fees or other costs of any indebtedness or ground lease; (7) the cost of any work or service performed for any tenant at such tenant’s costcapital improvements (except as set forth in Sections 4.05(xii)(A) and 4.05(xii)(B) above; (8) the cost 2) costs of remediation of any work Hazardous Materials for which Tenant is not otherwise obligated to remediate including illegal dumping and migration of Hazardous Materials on to or materials performed or supplied to any facility other than under the Building; (3) any debt service (including principal and interest) or payments of any judgments or other liens against Landlord; (4) Real Property Taxes (as defined in Section 4.01) unless paid by Landlord; (5) costs incurred in connection with lawsuits or other legal actions (including, without limitation, arbitrations and mediations) instituted or defended by Landlord that are unrelated to Tenant or its occupancy of the Property; (6) sums incurred as late payment fees, penalties or interest; (7) ground rent; (8) depreciation; (9) Landlord's advertising, entertainment and promotional costs for the Building; (10) costs and expenses payable to Landlord or any affiliate, to the extent that such costs and expenses exceed competitive costs and expenses for materials and services by unrelated persons or entities of similar skill and experience; (11) any cost or expense in excess of five percent (5%) of annual Base Rent relating to the Landlord’s administration and management of the Lease including, but not limited to, Landlord’s overhead, management fees, office salaries and benefits, office rental, office supplies, dues and subscriptions, office utility charges, telephone charges and automobile expenses; provided that third party expenses related to administration and management of the Lease shall not be subject to such cap but shall be commercially reasonable for the area in which the Premises are located; (12) the cost of repairs or other work required as a result of fire, windstorm, casualty or any items for which Landlord is other occurrence covered by the insurance required hereunder and paid or reimbursed by insurance, any tenant or otherwise; (10) salaries, wages and benefits of Landlord’s officers, directors, and employees above the level of Building managerTenant; (13) the cost of installing, operating, maintaining or refurbishing correcting defects in the construction of the Building covered by any specialty service, such as an observatory, broadcasting facility, luncheon club, restaurant, retail store, sundry shop, athletic or recreational club or locker rooms, meeting rooms or loungeswarranty; and (14) any charge for depreciation of the Building amounts reimbursed by other sources such as insurance proceeds, equipment warranties, judgments or equipment; (15) any tenant improvement allowance or other payment from Landlord to Tenant; (16) taxes excluded from the definition of “Taxes”; (17) bad debt losses or reserves therefore; (18) costs of selling, syndicating, financing, mortgaging, or hypothecating any of the Building or Land or Landlord’s interest in the Building or Land; (19) expenses resulting from tortious conduct of Landlord, its employees, agents or contractors; and (20) any janitorial, HVAC and/or electrical expenses for the Leased Premises that Tenant pays directly to the Landlord or third (3rd) partysettlements.
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