Common use of Operating Expenses Inclusions Clause in Contracts

Operating Expenses Inclusions. “Operating Expenses” means without limitation all reasonable costs incurred by Landlord in managing, operating, cleaning, equipping, protecting, lighting, heating, air-conditioning, repairing, replacing and maintaining all parts of the Building (regardless of whether such area is deemed to be a Common Area), including without limitation costs of electricity, natural gas, water, sewer, materials, supplies, janitorial and window cleaning services, rubbish removal, snow removal, landscaping, resurfacing, security, equipment (including elevator) inspection, repairs, maintenance, insurance premiums, including endorsements, and amounts paid for liability or casualty loss pursuant to commercially reasonable insurance deductible amounts (but Tenant shall have no interest in any insurance proceeds), reasonable employee wages and fringe benefit costs, a reasonable reserve for repair and replacement of personal property and equipment used in the management, operation and maintenance of the Building, administrative fees, all general and special real estate and ad valorem taxes and general and special assessments now or in the future levied by any governmental or quasi-governmental authority against the Building or personal property used in connection with the same, any tax or excise on rents, any tax or charge for governmental services (such as street maintenance and fire protection), fair rental value of rentable square footage on the Building used for management or operation of the Building by a third party or employees of Landlord, management, legal, accounting, engineering, inspection or consulting fees, and costs, including without limitation reasonable financing costs (amortized over the useful life in accordance with generally accepted accounting principles) of improvements to or structural modifications or repairs of any part of the Building to effect labor or utility cost savings (not to exceed such actual savings) or required after the Rent Commencement Date by any new, modified, or amended Laws enacted after the Effective Date, and any other reasonable cost considered an operating, maintenance or management expense of the Building pursuant to property management principles consistently applied, plus an administrative fee equal to 15% of all other Operating Expenses. Landlord shall be responsible for the operation, management, and maintenance of the Common Areas, the manner of maintenance and the expenditures to be in the sole discretion of Landlord, but to be generally in keeping with similar buildings within Lower Downtown Denver.

Appears in 1 contract

Samples: Office Lease (Thayer Ventures Acquisition Corp)

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Operating Expenses Inclusions. Without limiting the generality of Article 4 and/or Landlord’s right to include other items therein, Operating Expenses shall specifically include any and all of the following: (i) the cost of supplying all utilities, the cost of operating, repairing, maintaining, and renovating the utility, telephone, mechanical, sanitary, storm drainage, and elevator systems, and the cost of maintenance and service contracts in connection therewith; (ii) the cost of licenses, certificates, permits and inspections and the cost of contesting any governmental enactments which may affect Operating Expenses” means without limitation , and the costs incurred in connection with any governmentally mandated transportation system management program or similar program; (iii) the cost of all insurance carried by Landlord in connection with the Project; (iv) the cost of landscaping, relamping, and all supplies, tools, equipment and materials used in the operation, repair and maintenance of the Project, or any portion thereof; (v) costs incurred in connection with the parking areas servicing the Project (including costs of painting, restriping and resurfacing the parking areas servicing the Project); (vi) actual and reasonable fees and other costs, including management fees, consulting fees, legal fees and accounting fees, of all contractors and consultants in connection with the management, operation, maintenance and, subject to the terms of item [i], below, repair of the Project; (vii) payments under any equipment rental agreements and the fair rental value of any management office space; (viii) subject to the terms of Section 4.2.4.3(xi), below, wages, salaries and other compensation and benefits, including taxes levied thereon, of all persons engaged in the operation, maintenance and security of the Project (including, but not limited to, all fringe benefits, workers’ compensation, insurance premiums and payroll taxes); (ix) costs under any instrument pertaining to the sharing of costs by the Project; (x) operation, repair, maintenance and replacement of all systems and equipment and components thereof of the Building provided that any capital costs incurred by Landlord with respect to the replacement of such systems and equipment shall be amortized as forth in managing, operating, cleaning, equipping, protecting, lighting, heating, air-conditioning, repairing, replacing items (xii) and maintaining all parts of the Building (regardless of whether such area is deemed to be a Common Areaxiii), including without limitation costs below; (xi) the cost of electricityjanitorial, natural gasalarm, water, sewer, materials, supplies, janitorial security and window cleaning other services, rubbish removalreplacement of wall and floor coverings, snow removalceiling tiles and fixtures in common areas, landscaping, resurfacing, security, equipment (including elevator) inspection, repairs, maintenance, insurance premiums, including endorsements, and amounts paid for liability or casualty loss pursuant to commercially reasonable insurance deductible amounts (but Tenant shall have no interest in any insurance proceeds), reasonable employee wages and fringe benefit costs, a reasonable reserve for repair maintenance and replacement of personal property curbs and equipment used in walkways, repair to roofs and re-roofing, repairs to the managementfloors slabs and all paved areas; (xii) amortization over its reasonable useful life (including interest on the unamortized cost at a rate equal to the floating commercial loan rate announced from time to time by Bank of America, operation and maintenance a national banking association, or its successor, as its prime rate (the “Amortization Interest Rate”)) of the Building, administrative fees, all general and special real estate and ad valorem taxes and general and special assessments now cost of acquiring or in the future levied by any governmental or quasi-governmental authority against the Building or rental expense of personal property used in the maintenance, operation and repair of the Project, or any portion thereof to the extent such acquisition costs, prior to amortization, are materially consistent with the costs incurred for such items by landlords of Comparable Buildings, given the scope, size and nature of the Project; (xiii) the cost of capital improvements or other costs incurred in connection with the sameProject (A) which are intended to effect economies in the operation or maintenance of the Project, or any portion thereof, or (B) that are required under any governmental law or regulation; provided, however, that any such permitted capital expenditure shall be amortized (with interest at the Amortization Interest Rate) over its reasonable useful life; (xiv) costs, fees, charges or assessments imposed by, or resulting from any mandate imposed on Landlord by, any tax federal, state or excise on rentslocal government for fire and police protection, trash removal, community services, or other services which do not constitute “Tax Expenses” as that term is defined in Section 4.2.5, below; (xv) payments under any tax easement, license, operating agreement, declaration, restrictive covenant, or instrument pertaining to the sharing of costs by the Building; (xvi) window cleaning; (xvii) services and amenities of the Project which are available to all tenants of the Project at the same charge for governmental or at no charge; (xviii) costs of any additional services (such as street maintenance and fire protection), fair rental value of rentable square footage on not provided to the Building used for as of the Lease Commencement Date but which are thereafter provided by Landlord in the prudent management or operation of the Building or the Project. Any of the services which may be included in the computation of the Operating Expenses of the Building may be performed by a third party divisions, subsidiaries or employees affiliates of Landlord, managementprovided that the contracts for the performance of such services shall be competitive with similar contracts and transactions with unaffiliated entities for the performance of such services in comparable office buildings within the greater Los Angeles metropolitan area. Only as provided hereinafter in this Section 4.2.4 below in items [i] and [ii], legalin the event Landlord incurs costs or expenses associated with or relating to separate items or categories or subcategories of Operating Expenses which were not part of Operating Expenses during the entire Base Year, accountingOperating Expenses for the Base Year shall be deemed increased by the amounts Landlord would have incurred during the Base Year with respect to such costs and expenses had such separate items or categories or subcategories of Operating Expenses been included in Operating Expenses during the entire Base Year. The foregoing shall only apply as follows: [i] in the event and to the extent any portion of the Project is covered by a warranty or service agreement which provides warranty-type protection at any time during the Base Year and is not covered by such warranty or such warranty-type protection under such service agreement in a subsequent Expense Year to the same extent, engineeringOperating Expenses for the Base Year shall be deemed increased by the amount Landlord would have incurred during the Base Year with respect to the items or matters covered by the subject warranty or warranty-type protection, inspection had such warranty or consulting fees, such service agreement not been in effect during the Base Year; and costs[ii] any insurance premium resulting from any new forms of insurance, including without limitation reasonable financing costs (amortized over the useful life in accordance with generally accepted accounting principles) of improvements to or structural modifications or repairs of any part of the Building to effect labor or utility cost savings (not to exceed such actual savings) or required after the Rent Commencement Date by any newearthquake insurance, modified, or amended Laws enacted after the Effective Date, and any other reasonable cost considered an operating, maintenance or management expense of the Building pursuant to property management principles consistently applied, plus an administrative fee equal to 15% of all other Operating Expenses. Landlord shall be responsible deemed to be included in Operating Expenses for the operation, management, and maintenance of the Common Areas, the manner of maintenance and the expenditures to be in the sole discretion of Landlord, but to be generally in keeping with similar buildings within Lower Downtown DenverBase Year.

Appears in 1 contract

Samples: Office Lease (Obagi Medical Products, Inc.)

Operating Expenses Inclusions. Without limiting the generality of Article 4 and/or Landlord’s right to include other items therein (and subject to Section 4.2.4.3, below), Operating Expenses shall specifically include any and all of the following: (i) the cost of supplying sewer and water, the cost of operating, repairing, maintaining, and renovating the utility, telephone, mechanical, sanitary, storm drainage, and elevator systems, and the cost of maintenance and service contracts in connection therewith; (ii) the cost of licenses, certificates, permits and inspections and the cost of contesting any governmental enactments which are included in Operating Expenses” means without limitation all reasonable , and the costs incurred in connection with a governmentally mandated transportation system management program or similar program; (iii) the cost of all insurance carried by Landlord in managingconnection with the Project; (iv) the cost of landscaping, operatingrelamping, cleaning, equipping, protecting, lighting, heating, air-conditioning, repairing, replacing and maintaining all parts of the Building (regardless of whether such area is deemed to be a Common Area), including without limitation costs of electricity, natural gas, water, sewer, materials, supplies, janitorial and window cleaning services, rubbish removal, snow removal, landscaping, resurfacing, securitytools, equipment (including elevator) inspection, repairs, maintenance, insurance premiums, including endorsements, and amounts paid for liability or casualty loss pursuant to commercially reasonable insurance deductible amounts (but Tenant shall have no interest in any insurance proceeds), reasonable employee wages and fringe benefit costs, a reasonable reserve for repair and replacement of personal property and equipment materials used in the managementoperation, operation repair and maintenance of the BuildingProject, administrative or any portion thereof; (v) costs incurred in connection with the parking areas in the Building (including costs of painting, restriping and resurfacing such parking areas); (vi) fees and other costs, including management fees, consulting fees, legal fees and accounting fees, of all general contractors and special consultants in connection with the management, operation, maintenance and repair of the Project; (vii) payments under any equipment rental agreements and the fair rental value of any management office space not to exceed 2% of the total rentable square footage of the office space in the Building; (viii) wages, salaries and other compensation and benefits, including taxes levied thereon, of all persons engaged in the operation, maintenance and security of the Project (including, but not limited to, all fringe benefits, workers’ compensation, insurance premiums and payroll taxes); (ix) intentionally omitted; (x) operation, repair, maintenance and replacement of all systems and equipment and components of the Building; (xi) the cost of janitorial, alarm, security services, replacement of wall and floor coverings, ceiling tiles and fixtures in Common Areas, maintenance and replacement of curbs and walkways, repair to roofs and re-roofing, repairs to the floors slabs and all paved areas; (xii) amortization in accordance with sound real estate accounting and ad valorem taxes and general and special assessments now management principles consistent with the practices of Comparable Buildings (including interest on the unamortized cost) of the cost of acquiring or in the future levied by any governmental or quasi-governmental authority against the Building or rental expense of personal property used in the maintenance, operation and repair of the Project, or any portion thereof; (xiii) the cost of capital improvements or other costs incurred in connection with the sameProject (A) which are intended to effect economies in the operation or maintenance of the Project, or any portion thereof, (B) that are required to comply with governmentally mandated conservation programs, (C) which are replacements or modifications of nonstructural items located in the Common Areas required to keep the Common Areas in good order or condition, or (D) that are required under any governmental law or regulation that was not in effect as of the Lease Commencement Date; provided, however, that any capital expenditure shall be amortized with interest over its useful life as Landlord shall reasonably determine in accordance with sound real estate accounting and management principles consistent with the practices of Comparable Buildings; (xiv) costs, fees, charges or assessments imposed by, or resulting from any mandate imposed on Landlord by, any tax federal, state or excise on rentslocal government for fire and police protection, trash removal, community services, or other services which do not constitute “Tax Expenses” as that term is defined in Section 4.2.5, below; (xv) payments under any tax easement, license, operating agreement, declaration, restrictive covenant, or charge for governmental services (such as street maintenance and fire protection), fair rental value instrument pertaining to the sharing of rentable square footage costs by the Building in effect on the date hereof; (xvi) window cleaning; (xvii) services and amenities of the Project which are available to all tenants of the Project at the same charge or at no charge; and (xviii) costs of any additional services not provided to the Building used for as of the Lease Commencement Date but which are thereafter provided by Landlord in the prudent management or operation of the Building or the Project. Any of the services which may be included in the computation of the Operating Expenses of the Building may be performed by a third party divisions, subsidiaries or employees affiliates of Landlord, management, legal, accounting, engineering, inspection or consulting fees, and costs, including without limitation reasonable financing costs (amortized over provided that the useful life in accordance with generally accepted accounting principles) contracts for the performance of improvements to or structural modifications or repairs of any part of the Building to effect labor or utility cost savings (not to exceed such actual savings) or required after the Rent Commencement Date by any new, modified, or amended Laws enacted after the Effective Date, and any other reasonable cost considered an operating, maintenance or management expense of the Building pursuant to property management principles consistently applied, plus an administrative fee equal to 15% of all other Operating Expenses. Landlord services shall be responsible competitive with similar contracts and transactions with unaffiliated entities for the operation, management, and maintenance performance of the Common Areas, the manner of maintenance and the expenditures to be such services in the sole discretion of Landlord, but to be generally in keeping with similar comparable office buildings within Lower Downtown Denverthe greater Los Angeles metropolitan area.

Appears in 1 contract

Samples: Office Lease (TrueCar, Inc.)

Operating Expenses Inclusions. Without limiting the generality of the foregoing, Operating Expenses shall specifically include any and all of the following: (i) the cost of supplying all utilities, the cost of operating, repairing, and maintaining, the utility, mechanical, sanitary, storm drainage, and elevator systems, and the cost of maintenance and service contracts in connection therewith; (ii) the cost of licenses, certificates, permits and inspections and the cost of contesting any governmental enactments which may affect Operating Expenses” means without limitation all reasonable , and the costs incurred in connection with any governmentally mandated transportation system management program or similar program; (iii) the cost of all insurance carried by Landlord in managingconnection with the Project; (iv) the cost of landscaping, operatingrelamping, cleaning, equipping, protecting, lighting, heating, air-conditioning, repairing, replacing with similar items and maintaining all parts of the Building (regardless of whether such area is deemed to be a Common Area), including without limitation costs of electricity, natural gas, water, sewer, materials, supplies, janitorial and window cleaning services, rubbish removal, snow removal, landscaping, resurfacing, securitytools, equipment (including elevator) inspection, repairs, maintenance, insurance premiums, including endorsements, and amounts paid for liability or casualty loss pursuant to commercially reasonable insurance deductible amounts (but Tenant shall have no interest in any insurance proceeds), reasonable employee wages and fringe benefit costs, a reasonable reserve for repair and replacement of personal property and equipment materials used in the managementoperation, operation repair and maintenance of the BuildingProject, administrative or any portion thereof, or any area adjacent to the Project in connection with which Landlord is required to perform such services; (v) costs incurred in connection with the parking areas servicing the Project (including costs of painting, restriping and resurfacing the parking areas servicing the Project); (vi) reasonable fees and other costs, including management fees, consulting fees, legal fees and accounting fees, of all general contractors and special real estate consultants in connection with the management, operation, maintenance and ad valorem repair of the Project; (vii) payments under any equipment rental agreements and the fair rental value of any management office space; (viii) reasonable wages, salaries and other compensation and benefits, including taxes and general and special assessments now or levied thereon, of all persons engaged in the future levied operation, maintenance and security of the Project; (ix) reasonable costs under any instrument currently in force pertaining to the sharing of costs by any governmental the Project; (x) operation, repair, and maintenance of all systems and equipment and components thereof of the Building; (xi) the reasonable cost of janitorial, alarm, security and other services, reasonable replacement of wall and floor coverings, ceiling tiles and fixtures in common areas with similar items, maintenance and replacement of curbs and walkways, repair to roofs; (xii) amortization (including interest on the unamortized cost) of the cost of acquiring or quasi-governmental authority against the Building or rental expense of personal property used in the maintenance, operation and repair of the Project, or any portion thereof; (xiii) the cost of capital improvements or other costs incurred in connection with the sameProject (A) which are reasonably intended to effect economies in the operation or maintenance of the Project, or any portion thereof, but only to the extent of reasonably intended cost savings, or (B) that are required under any governmental law or regulation enacted after the Lease Commencement Date; provided, however, that any capital expenditure shall be amortized with interest over its useful life as reasonably determined; (xiv) costs, fees, charges or assessments imposed by, or resulting from any mandate currently in force imposed on Landlord by, any tax federal, state or excise on rentslocal government for fire and police protection, trash removal, community services, or other services which do not constitute "Tax Expenses" as that term is defined in Section 4.2.5, below; (xv) payments under any tax easement, license, operating agreement, declaration, restrictive covenant, or charge for governmental instrument currently in force pertaining to the sharing of costs by the Building. Any of the services (such as street maintenance and fire protection), fair rental value which may be included in the computation of rentable square footage on the Building used for management or operation Operating Expenses of the Building may be performed by a third party divisions, subsidiaries or employees affiliates of Landlord, management, legal, accounting, engineering, inspection or consulting fees, and costs, including without limitation reasonable financing costs (amortized over provided that the useful life in accordance with generally accepted accounting principles) contracts for the performance of improvements to or structural modifications or repairs of any part of the Building to effect labor or utility cost savings (not to exceed such actual savings) or required after the Rent Commencement Date by any new, modified, or amended Laws enacted after the Effective Date, and any other reasonable cost considered an operating, maintenance or management expense of the Building pursuant to property management principles consistently applied, plus an administrative fee equal to 15% of all other Operating Expenses. Landlord services shall be responsible materially consistent (in terms of price and quality of work) with similar contracts and transactions with unaffiliated entities for the operation, management, and maintenance performance of the Common Areas, the manner of maintenance and the expenditures to be such services in the sole discretion of Landlord, but to be generally in keeping with similar comparable office buildings within Lower Downtown Denverthe greater Los Angeles metropolitan area.

Appears in 1 contract

Samples: Office Lease (Navarre Corp /Mn/)

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Operating Expenses Inclusions. Operating Expenses” means without limitation Expenses shall include all reasonable costs incurred by expenses and disbursements of every kind which Landlord reasonably incurs, pays or becomes obligated to pay in managing, operating, cleaning, equipping, protecting, lighting, heating, air-conditioning, repairing, replacing and maintaining all parts of connection with the Building (regardless of whether such area is deemed to be a Common Area), including without limitation costs of electricity, natural gas, water, sewer, materials, supplies, janitorial and window cleaning services, rubbish removal, snow removal, landscaping, resurfacing, security, equipment (including elevator) inspection, repairs, maintenance, insurance premiums, including endorsements, and amounts paid for liability or casualty loss pursuant to commercially reasonable insurance deductible amounts (but Tenant shall have no interest in any insurance proceeds), reasonable employee wages and fringe benefit costs, a reasonable reserve for repair and replacement of personal property and equipment used in the managementownership, operation and maintenance of the BuildingBuilding and Land including, administrative feesbut not limited to, all general the following: (1) Taxes (defined below) and special real estate and ad valorem taxes and general and special assessments now or in the future levied by any governmental or quasi-governmental authority against the Building or personal property used in connection with the same, cost of any tax or excise on rents, any consultant employed to assist Landlord in determining the fair tax or charge for governmental services (such as street maintenance and fire protection), fair rental value of rentable square footage on the Building used for management or operation valuation of the Building and Land; (2) the costs of all utilities other than the cost of utilities actually reimbursed to Landlord by a third party or employees Building’s tenants; (3) the cost of Landlordinsurance; (4) the cost of repairs, management, legal, accounting, engineering, inspection or consulting feesreplacement, and costsgeneral maintenance of the Building, (5) cost of service or maintenance contracts with independent contractors for the operation, maintenance, repair, and/or replacement or security of the Building [including without limitation reasonable financing window cleaning, elevator maintenance, landscape maintenance and replacement, and security service (if provided)]; (6) the cost of dues, assessments, and other charges applicable to the Land payable to any property or community owner association under restrictive covenants or deed restrictions to which the Premises are subject; (7) the annual cost of all capital improvements made to the Building and/or the Land which, although capital in nature, can reasonably be expected to reduce normal operating costs of the Building (but only to the extent of savings realized), as well as alterations, additions, and improvements made by Landlord to comply with Law (defined below) first coming into effect after the date hereof, as amortized over the useful economic life of such improvements as determined by Landlord in accordance with generally accepted accounting principles) of its reasonable discretion (without regard to the period over which such improvements to may be depreciated or structural modifications or repairs of any part of the Building to effect labor or utility cost savings amortized for Federal income tax purposes); (not to exceed such actual savings) or required after the Rent Commencement Date by any new, modified, or amended Laws enacted after the Effective Date, 8) all supplies and any other reasonable cost considered an operating, maintenance or management expense of the Building pursuant to property management principles consistently applied, plus an administrative fee equal to 15% of all other Operating Expenses. Landlord shall be responsible for materials used in the operation, managementmanagements, maintenance, replacements, repair and security of the Building; and (9) wages and salaries (including management fees) of all employees engaged in the operation, repair, replacement, maintenance and security of the Building, including taxes, insurance, and maintenance of the benefits relating thereto. Items (3) through (9) above being further defined herein as “Common Areas, the manner of maintenance and the expenditures to be in the sole discretion of Landlord, but to be generally in keeping with similar buildings within Lower Downtown DenverArea Expenses”).

Appears in 1 contract

Samples: Sublease Agreement (Legalzoom Com Inc)

Operating Expenses Inclusions. Without limiting the generality of Article 4 and/or Landlord’s right to include other items therein (except those items specifically excluded in this Section 4.2.4 or elsewhere in this Lease), Operating Expenses shall specifically include any and all of the following: (i) the cost of supplying all utilities, the cost of operating, repairing, maintaining, and renovating the utility, telephone, mechanical, sanitary, storm drainage, and elevator systems, and the cost of maintenance and service contracts in connection therewith; (ii) the cost of licenses, certificates, permits and inspections and the cost of contesting any governmental enactments which are reasonably anticipated to reduce Operating Expenses” means without limitation all reasonable , and the costs incurred in connection with a transportation system management program or similar program; (iii) the cost of all insurance carried by Landlord in managingconnection with the Project; (iv) the cost of landscaping, operatingrelamping, cleaning, equipping, protecting, lighting, heating, air-conditioning, repairing, replacing and maintaining all parts of the Building (regardless of whether such area is deemed to be a Common Area), including without limitation costs of electricity, natural gas, water, sewer, materials, supplies, janitorial and window cleaning services, rubbish removal, snow removal, landscaping, resurfacing, securitytools, equipment (including elevator) inspection, repairs, maintenance, insurance premiums, including endorsements, and amounts paid for liability or casualty loss pursuant to commercially reasonable insurance deductible amounts (but Tenant shall have no interest in any insurance proceeds), reasonable employee wages and fringe benefit costs, a reasonable reserve for repair and replacement of personal property and equipment materials used in the managementoperation, operation repair and maintenance of the BuildingProject, administrative or any portion thereof; (v) costs incurred in connection with the parking areas servicing the Project (including costs of painting, restriping and resurfacing the parking areas servicing the Project); (vi) fees and other costs reasonably incurred, including management fees, consulting fees, legal fees and accounting fees, of all general contractors and special real estate consultants in connection with the management, operation, maintenance and ad valorem repair of the Project; (vii) payments under any equipment rental agreements and the fair rental value of any management office space; (viii) wages, salaries and other compensation and benefits, including taxes and general and special assessments now or levied thereon, of all persons engaged in the future levied operation, maintenance and security of the Project (including, but not limited to, all fringe benefits, workers’ compensation, insurance premiums and payroll taxes); (ix) costs under any instrument pertaining to the sharing of costs by any governmental the Project; (x) operation, repair, maintenance and replacement of all systems and equipment and components thereof of the Building; (xi) the cost of janitorial, alarm, security and other services, replacement of wall and floor coverings, ceiling tiles and fixtures in common areas, maintenance and replacement of curbs and walkways, repair to roofs and re-roofing, repairs to the floors slabs and all paved areas; (xii) amortization over its reasonable useful life (including interest on the unamortized cost) of the cost of acquiring or quasi-governmental authority against the Building or rental expense of personal property used in the maintenance, operation and repair of the Project, or any portion thereof; (xiii) the cost (but as to each Expense Year, only the amortized portion of such costs as set forth herein) of capital repairs, replacements or other capital improvements or other capital costs incurred in connection with the sameProject (A) which are intended to effect economies in the operation, cleaning or maintenance of the Project, or any tax portion thereof, to the extent of cost savings reasonably anticipated by Landlord at the time of such expenditure to be incurred in connection therewith, or excise on rents(B) that are required under any governmental law or regulation, except for capital repairs, replacements or other improvements to remedy a condition existing prior to the Lease Commencement Date which any tax applicable governmental authority, if it had knowledge of such condition prior to the Lease Commencement Date and if such condition was not subject to a variance or charge for governmental services a grandfathered/grandmothered code waiver exception, would have then required to be remedied pursuant to then-current “Applicable Law,” as that term is defined in Article 24 of this Lease, in their form existing as of the Lease Commencement Date; provided, however, that any such capital expenditure shall be amortized (such as street maintenance and fire protection), fair rental value of rentable square footage including interest at the Amortization Interest Rate on the amortized cost) over its reasonable useful life; (xvi) window cleaning; (xvii) services and amenities of the Project which are available to all tenants of the Project at the same charge or at no charge; (xviii) costs of any additional services not provided to the Building used for as of the Lease Commencement Date but which are thereafter provided by Landlord in the prudent management or operation of the Building or the Project. Any of the services which may be included in the computation of the Operating Expenses of the Building may be performed by a third party divisions, subsidiaries or employees affiliates of Landlord, managementprovided that the contracts for the performance of such services shall be competitive with and at comparable rates found in similar contracts and transactions with unaffiliated entities for the performance of such services in comparable office buildings within the greater Los Angeles metropolitan area. Operating Expenses under this Section 4.2.4 shall be calculated using the accrual method of accounting and shall be performed in the Base Year and the Expense Years in a reasonably consistent manner. Only as provided hereinafter in this Section 4.2.4, legalbelow in items [i] and [ii], accountingin the event Landlord incurs costs or expenses associated with or relating to separate items or categories or subcategories of Operating Expenses which were not part of Operating Expenses during the entire Base Year, engineeringOperating Expenses for the Base Year shall be deemed increased by the amounts Landlord would have incurred during the Base Year with respect to such costs and expenses had such separate items or categories or subcategories of Operating Expenses been included in Operating Expenses during the entire Base Year. The foregoing shall only apply as follows: [i] in the event and to the extent any portion of the Project is covered by a warranty or service agreement which provides warranty-type protection at any time during the Base Year and is not covered by such warranty or such warranty-type protection under such service agreement in a subsequent Expense Year to the same extent, inspection Operating Expenses for the Base Year shall be deemed increased by the amount Landlord would have incurred during the Base Year with respect to the items or consulting feesmatters covered by the subject warranty or warranty-type protection, had such warranty or such service agreement not been in effect during the Base Year; and costs[ii] any insurance premium resulting from any new forms of insurance, including without limitation reasonable financing costs (amortized over the useful life in accordance with generally accepted accounting principles) earthquake insurance, flood insurance or insurance as to terrorist acts or acts of improvements to or structural modifications or repairs of any part of the Building to effect labor or utility cost savings (not to exceed such actual savings) or required after the Rent Commencement Date by any new, modified, or amended Laws enacted after the Effective Date, and any other reasonable cost considered an operating, maintenance or management expense of the Building pursuant to property management principles consistently applied, plus an administrative fee equal to 15% of all other Operating Expenses. Landlord war shall be responsible deemed to be included in Operating Expenses for the operation, management, and maintenance of the Common Areas, the manner of maintenance and the expenditures to be in the sole discretion of Landlord, but to be generally in keeping with similar buildings within Lower Downtown DenverBase Year.

Appears in 1 contract

Samples: Office Lease (Internet Brands, Inc.)

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