Common use of Payments of Expenses Clause in Contracts

Payments of Expenses. The Property Manager shall pay all expenses of the operation, maintenance and repair with respect to the Project contemplated by the Budget directly from the Operating Account or shall be reimbursed by the Tenants in Common, subject to the conditions set forth in Section 2, including the following: (a) costs of the gross salary and wages or proportional shares thereof, payroll taxes, worker's compensation insurance, and all other benefits of employees required to manage, operate and maintain the Project properly, adequately, safely and economically, subject to this Agreement, provided that the Property Manager shall not pay such employees in advance; (b) cost to correct the violation of any governmental requirement relating to the leasing, use, repair and maintenance of the Project, or relating to the rules, regulations or orders of the local Board of Fire Underwriters or other similar body, if such cost is not the result of the Property Manager's gross negligence or willful misconduct; (c) actual and reasonable cost of making all repairs, decorations and alterations if such cost is not the result of the Property Manager's gross negligence or willful misconduct; (d) cost incurred by the Property Manager in connection with all service agreements; (e) cost of collection of delinquent rents collected by a collection agency or attorney; (f) legal fees of attorneys; (g) cost of capital expenditures subject to the restrictions in Section 2.9 and in this Section; (h) cost of printed checks for each account required by the Tenants in Common; (i) cost of utilities; (j) cost of advertising; (k) cost of printed forms and supplies required for use at the Project; (l) management compensation set forth in Section 9; (m) the cost of tenant improvements to the Project; (n) all hiring, relocation and termination costs for any employee, including those individuals whose salaries and benefits are paid by the Tenants in Common; (o) broker commissions; (p) debt service; (q) the cost of services, contractors and insurance; (r) reimbursement of the Property Manager's out-of-pocket costs and expenses to the extent not prohibited by Section 8; (s) general accounting and reporting services within the reasonable scope of the Property Manager's responsibility to the Tenants in Common; (t) cost of forms, papers, ledgers, and other supplies and equipment used in the Property Manager's office at any location; (u) cost of electronic data processing equipment, including personal computers located at the Property Manager's office off the Project for preparation of reports, information and returns to be prepared by the Property Manager under the terms of this Agreement; (v) cost of electronic data processing provided by computer service companies for preparation of reports, information and returns to be prepared by the Property Manager under the terms of this Agreement; (w) travel and entertainment expenses intended to advance the interests of the Project such as travel and entertainment for prospective new tenants or for brokers; and (x) all overhead and indirect expenses of the Property Manager's office, including, but not limited to, communication costs (telephone, postage, etc.), computer rentals or time, supplies (paper, envelopes, business forms, checks, payroll forms and record cards, forms for governmental reports, etc.), printing, equipment, insurance, fidelity bonds, taxes and license fees, and general office expenses allocable to the Project. All other amounts payable with respect to the Project shall be payable from the Operating Account only after a revised Budget has been submitted to the Tenants in Common, as provided in this Agreement. If there are not sufficient funds in the account to make any such payment, the Property Manager shall notify the Tenants in Common, if possible, at least ten (10) days prior to any delinquency so that the Tenants in Common have an opportunity to deposit sufficient funds in the Operating Account to allow for such payment before the imposition of any penalty or late charge. No later than the end of the succeeding month, the Property Manager shall remit to the Tenants in Common all unexpended funds for the prior month, except for reserves reflected in the Budget or required by the Lender which shall remain in the Operating Account in the amount equal to the expenses budgeted for the month in which the remittance is to be made. Except with respect any expenses that are determined to be properly allocable on other than a pro rata basis, all expenses of the Project shall be allocated to the Tenants in Common on a pro rata basis.

Payments of Expenses. The Property Manager shall pay all expenses of the operation, maintenance and repair with respect to the Project Property contemplated by the Budget directly from the Operating Account or shall be reimbursed by the Tenants in Common, subject to the conditions set forth in Section 2, including the following: (a) costs of the gross salary and wages or proportional shares thereof, payroll taxes, worker's ’s compensation insurance, and all other benefits of employees required to manage, operate and maintain the Project Property properly, adequately, safely and economically, subject to this Agreement, provided that the Property Manager shall not pay such employees in advance; (b) cost to correct the violation of any governmental requirement relating to the leasing, use, repair and maintenance of the ProjectProperty, or relating to the rules, regulations or orders of the local Board of Fire Underwriters or other similar body, if such cost is not the result of the Property Manager's ’s gross negligence or willful misconduct; (c) actual and reasonable cost of making all repairs, decorations and alterations if such cost is not the result of the Property Manager's ’s gross negligence or willful misconduct; (d) cost incurred by the Property Manager in connection with all service agreements; (e) cost of collection of delinquent rents collected by a collection agency or attorney; (f) legal fees of attorneys; (g) cost of capital expenditures subject to the restrictions in Section 2.9 and in this Section; (h) cost of printed checks for each account required by the Tenants in Common; (i) cost of utilities; (j) cost of advertising; (k) cost of printed forms and supplies required for use at the ProjectProperty; (l) management compensation set forth in Section 9; (m) the cost of tenant improvements to the ProjectProperty; (n) all hiring, relocation and termination costs for any employee, including those individuals whose salaries and benefits are paid by the Tenants in Common; (o) broker broker’s commissions; (p) debt service; (q) the cost of utilities, services, contractors and insurance; (r) reimbursement of the Property Manager's ’s out-of-pocket costs and expenses to the extent not prohibited by Section 88 below, including those related to travel to and from the Property; (s) general accounting and reporting services within the reasonable scope of the Property Manager's ’s responsibility to the Tenants in Common; (t) cost of forms, papers, ledgers, and other supplies and equipment used in the Property Manager's ’s office at any location; (u) cost of electronic data processing equipment, including personal computers located at the Property Manager's ’s office off the Project Property for preparation of reports, information and returns to be prepared by the Property Manager under the terms of this Agreement; (v) cost of electronic data processing provided by computer service companies for preparation of reports, information and returns to be prepared by the Property Manager under the terms of this Agreement; and (w) travel and entertainment expenses intended to advance the interests of the Project such as travel and entertainment for prospective new tenants or for brokers; and (x) all overhead and indirect expenses of the Property Manager's ’s office, including, but not limited to, communication costs (telephone, postage, etc.), computer rentals or time, supplies (paper, envelopes, business forms, checks, payroll forms and record cards, forms for governmental reports, etc.), printing, equipment, insurance, fidelity bonds, taxes and license fees, and general office expenses allocable to the Project. All other amounts payable with respect to the Project shall be payable from the Operating Account only after a revised Budget has been submitted to the Tenants in Common, as provided in this AgreementProperty. If there are not sufficient funds in the account Operating Account to make any such payment, the Property Manager shall notify the Tenants in Common, if possible, at least ten (10) days prior to any delinquency so that the Tenants in Common have an opportunity to deposit sufficient funds in the Operating Account to allow for such payment before prior to the imposition of any penalty or late charge. No later than the end of the succeeding month, the Property Manager shall remit to the Tenants in Common all unexpended funds for the prior month, except for reserves reflected in the Budget or required by the Lender which shall remain in the Operating Account in the amount equal to the expenses budgeted for the month in which the remittance is to be made. Except with respect any expenses that are determined to be properly allocable on other than a pro rata basis, all expenses of the Project shall be allocated to the Tenants in Common on a pro rata basis.