Common use of Tenant to Pay Operating Expenses Clause in Contracts

Tenant to Pay Operating Expenses. Tenant shall pay, as Additional Rent, Tenants Pro-Rata Share of all reasonable costs and expenses paid or incurred by Landlord in operating, owning, managing, insuring, maintaining and repairing the Property (collectively, the “Operating Expenses”). Operating Expenses may include, without limitation, the cost of labor, materials, supplies and services used or consumed in operating, maintaining, repairing and replacing, as necessary, the Building systems, the elevators, the roof membrane (including annual inspections and preventive maintenance work on the roof), exterior windows, and exterior walls of the Building, and the Outside Area, including landscaping and sprinkler systems, concrete walkways and paved parking areas, signs and site lighting; all utilities for water, gas, and electricity which are not paid directly by Tenant; trash removal; sewer charges; any alterations or improvements required by Laws; and a management fee. Any Operating Expenses that constitute capital expenditures under generally accepted accounting principles, including but not limited to the following, shall be amortized over their useful life in accordance with generally accepted accounting principles if the amount of such capital expenditure exceeds $20,000: (i) capital improvements made to reduce Operating Expenses; (ii) capital improvements made to comply with any Laws that are enacted or modified after the Commencement Date; and (iii) repairs and/or replacements of any HVAC, mechanical, electrical, plumbing, or life safety equipment, the elevators or any components thereof, or the roof membrane. Landlord shall bill Tenant monthly for the Operating Expenses paid or incurred by Landlord in each month of the Term and Tenant shall pay the Operating Expenses due for each such month within thirty (30) days after Xxxxxx’s receipt of an invoice from Landlord specifying the Operating Expenses due. Notwithstanding anything to the contrary herein, “Operating Expenses” shall not include and Tenant shall in no event have any obligation to perform or to pay directly, or to reimburse Landlord for, all or any portion of the following: (a) costs occasioned by casualties or condemnation; (b) co-insurance payments or any deductibles for earthquake insurance; (c) costs incurred in connection with the presence of any Hazardous Material; (d) interest, charges and fees incurred on debt; (e) expense reserves; (f) costs of structural repairs; (g) any fee, profit or compensation retained by Landlord or its affiliates for management and administration of the Project in excess of 3% of gross revenues; and (h) costs to correct any construction defect in the Project or to comply with any Law applicable to the Project on the Commencement Date.

Tenant to Pay Operating Expenses. Tenant shall pay, as Additional Rent, Tenants Pro-Rata Share of all reasonable costs and expenses paid or incurred by Landlord during the Term in operating, owning, managing, insuring, maintaining and repairing the Building and the Outside Area, including Real Property Taxes and the cost of insurance described in Paragraph 20.6 (collectively, the “Operating Expenses”). Operating Expenses may include, without limitation, the cost of labor, materials, supplies and services used or consumed in operating, maintaining, repairing and replacing, as necessary, the Building HVAC and fire and life safety systems, the elevators, the roof membrane (including annual inspections and preventive maintenance work on the roof), exterior windows, and exterior walls of the Buildingwalls, and the Outside Area, including landscaping and sprinkler systems, concrete walkways walkways, the parking structure and paved parking areas, signs and site lighting; all utilities for water, gas, and electricity which are not paid directly by Tenant; trash removal; sewer charges; any alterations or improvements to the Building or the Outside Area required by Laws; and a management feefee equal to three percent (3%) of the Monthly Base Rent. Any Operating Expenses that constitute shall not include, and Tenant shall have no obligation to pay or reimburse Landlord for: (a) any capital expenditures under generally accepted accounting principles, including but not limited to the following, shall be amortized over their useful life in accordance with generally accepted accounting principles if the amount of such capital expenditure exceeds $20,000unless they are: (i) capital improvements made to reduce Operating Expenses; (ii) capital improvements made to comply with any Laws that are first enacted or modified and applicable to the Premises after the Commencement Date; and or (iii) repairs and/or or replacements (with comparable quality equipment and materials) of any HVACnon-structural components of the Building or the Outside Area, including any mechanical, electrical, plumbing, HVAC, or fire and life safety equipment, ; the elevators or any components thereof, or ; and the roof membrane. Landlord ; and all such capital expenditures shall bill Tenant monthly for the Operating Expenses paid or incurred by Landlord be amortized over their useful life in each month of the Term and Tenant shall pay the Operating Expenses due for each such month within thirty (30) days after Xxxxxx’s receipt of an invoice from Landlord specifying the Operating Expenses due. Notwithstanding anything to the contrary herein, “Operating Expenses” shall not include and Tenant shall in no event have any obligation to perform or to pay directly, or to reimburse Landlord for, all or any portion of the following: (a) costs occasioned by casualties or condemnationaccordance with generally accepted accounting principles; (b) cothe wages and benefits of any employee who does not devote substantially all of his or her employed time to the Building unless such wages and benefits are prorated to reflect time spent on operating and managing the Building vis-insurance payments à-vis time spent on matters unrelated to operating and managing the Building; provided that in no event shall Operating Expenses include wages and/or benefits attributable to personnel above the level of property manager or any deductibles for earthquake insurancechief engineer; (c) costs incurred in connection with interest on debt or amortization on any Encumbrances on the presence of any Hazardous MaterialBuilding; (d) interestall costs relating to activities for the marketing, charges solicitation and fees incurred on debtexecution or renewal of leases of space of any other tenants in the Building, including, without limitation, accounting and legal fees, advertising, printing costs and brochures, space planning, tenant allowances, leasehold improvements and other tenant concessions; (e) expense reservesoperating expenses related to any building or other property other than the Building and Outside Areas; (f) costs associated with the sale, syndicating, or refinancing of structural repairsthe Building, including, without limitation, attorneys’ fees, accounting costs, closing costs, consulting or brokerage commissions, origination fees or points, and interest cost or charges; (g) any costs associated with the acquisition of the fee, ground lease (including payments due under a ground lease), air rights or development rights with respect to the Building project; (h) expenses in connection with services or other benefits which are not provided to Tenant or for which Tenant is charged for directly; (i) costs incurred by Landlord for repairs, replacements and/or restoration to or of the Building to the extent that Landlord is actually reimbursed by insurance or condemnation proceeds or by other tenants (other than through Operating Expense pass-through), warrantors or other third persons; (j) overhead and profit increments paid to subsidiaries or compensation retained affiliates of Landlord for services provided to the Building to the extent the same exceeds the costs that would generally be charged for such services if rendered on a competitive basis (based upon a standard of similar commercial buildings in the general market area of the Premises) by unaffiliated third parties capable of providing such service; (k) costs arising from the gross negligence or intentional misconduct of Landlord or its employees, contractors or agents; (l) costs incurred to remove, remedy, contain, or treat or otherwise related to any Hazardous Material, which Hazardous Material is brought onto the Premises or Outside Areas (A) before the date of this Lease and (B) after the date hereof by Landlord or its affiliates for management and administration any other tenant of the Project Building or any other person other than Tenant, or Tenant’s employees, agents, licensees, subtenants or invitees, and is of such a nature, at that time, that a federal, state or municipal governmental authority, if it had then had knowledge of the presence of such Hazardous Material, in the state, and under the conditions, that it then exists on or about the Building or Outside Areas, would require the removal of such Hazardous Material or other remedial or containment action with respect thereto; (m) penalties and interest charges as a result of Landlord not paying bills when due or within any grace period; (n) ground rent or similar payments to a ground lessor; (o) costs related to Landlord’s charitable or political contributions; (p) attorneys’ fees and other costs and expenses incurred in connection with negotiations or disputes with present or prospective tenants, or in connection with any disputes between Landlord and its employees, between Landlord and Building management, or between Landlord and other tenants, or other occupants of the Building; (q) electric power costs or other utility costs for which Tenant or any other tenant directly contracts with the utility company; (r) all costs associated with the operation of the business of the entity which constitutes “Landlord” (as distinguished from the costs of operating, maintaining, repairing, replacing and managing the Building) including, but not limited to, Landlord’s or Landlord’s managing agent’s general corporate overhead and general administrative expenses; (s) costs, fines or penalties incurred by Landlord due to the violation by Landlord of any governmental rule or regulation (provided that costs of complying with such governmental requirements may be included unless otherwise provided herein); (t) any bad debt loss, rent loss, or reserves for bad debts or rent loss, amortization or other expense reserves other than reserves for expenses for anticipated expenses and which reserves are applied to Operating Expenses in the same calendar year; (u) costs occasioned by the violation of any Laws, CC&Rs or other private restrictions applicable to the Building project by Landlord, any other occupant of the Building, or their respective agents, employees or contractors; (v) the costs and expenses incurred in leasing equipment or systems that would ordinarily constitute a capital expenditure if such equipment or systems were purchased and which would customarily be purchased by owners of comparable property; and (w) costs relating to the repair, maintenance or replacement of the structural elements of the Building, including, without limitation, exterior and load bearing walls, the roof structure (but not the roof membrane which may be included in Operating Expenses), the foundation, pipes and conduit located in the Outside Area, footings, structural floors, ceilings, and columns. Further, property insurance (including terrorism, earthquake and flood insurance) deductibles (or deductible equivalents), uninsured co-insurance payments, and exterior Building painting costs, in each case in excess of 3% $20,000 per occurrence shall be amortized over the actual useful life of gross revenues; and the repair in question (h) as reasonably determined by Landlord), in which case such amortized costs to correct any construction defect shall be included in Operating Expenses on a monthly basis only for that portion of the Project or to comply with any Law applicable to useful life of the Project on repair in question that falls within the Commencement DateTerm.

Tenant to Pay Operating Expenses. Tenant shall pay, as Additional Rent, Tenants Pro-Rata Share Tenant’s Percentage of all reasonable costs and expenses as may be paid or incurred by Landlord in operatingmaintaining, owning, managing, insuring, maintaining operating and repairing the Property Building and the Outside Area (collectively, the “Operating Expenses”). The Operating Expenses may include, without limitation, the cost costs of labor, materials, supplies and services used or consumed in operating, maintaining, maintaining and repairing and replacing, as necessarythe roof membrane, the Building systemsHVAC system (subject to the limitations set forth below), the elevators, the roof membrane (including annual inspections and preventive maintenance work on the roof), exterior windows, and exterior walls of the BuildingCommon Area, and the Outside Area, including landscaping and sprinkler systems, concrete walkways and paved parking areas, area; maintaining and repairing signs and site lighting; all utilities for waterprovided to the Building (other than electricity, gas, which shall be separately metered to the Premises) and electricity which are not paid directly by Tenant; trash removal; sewer chargesthe Outside Area; any alterations or improvements required by Lawsgovernmental authority; and the cost of maintaining, repairing and replacing exterior windows and the non-structural components of the roof of the Building, and a reasonable management fee. Any Operating Expenses that constitute The cost of any repair, replacement or improvement to the Building and/or the Outside Area which constitutes a capital expenditures expenditure under generally accepted accounting principles, including but not limited to the following, principles shall be amortized fully amortized, on a straight-line basis, over their the useful life in accordance with generally accepted accounting principles if of the amount capital item and only the annual amortized cost of such capital expenditure exceeds $20,000: (i) capital improvements made to reduce Operating Expenses; (ii) capital improvements made to comply with any Laws that are enacted or modified after the Commencement Date; and (iii) repairs and/or replacements of any HVAC, mechanical, electrical, plumbing, or life safety equipment, the elevators or any components thereof, or the roof membrane. Landlord item shall bill Tenant monthly for the be included in Operating Expenses paid or incurred by Landlord in each month of annually. Notwithstanding the Term foregoing, Operating Expenses shall not include, and Tenant shall pay the Operating Expenses due for each such month within thirty (30) days after Xxxxxx’s receipt of an invoice from Landlord specifying the Operating Expenses due. Notwithstanding anything to the contrary herein, “Operating Expenses” shall not include and Tenant shall in have no event have any obligation to perform or to pay directlypay, or to reimburse Landlord for, all or any portion of the following: (ai) depreciation and amortization; (ii) management fees for the Building in excess of three percent (3%) of the monthly Rent collected; (iii) financing and refinancing costs; (iv) brokerage commissions and marketing costs; (v) costs occasioned by casualties incurred in connection with leasing or condemnationre-leasing space in the Building, such as space planning, architectural, engineering, attorneys’ fees, advertising costs, cost of tenant improvements and tenant allowances, tenant concessions and promotional expenses; (b) co-insurance payments or any deductibles for earthquake insurance; (cvi) costs incurred in connection with the presence modification of enforcement of leases and disputes with tenants, lenders or contractors; (vii) costs paid for by the proceeds of any Hazardous Materialinsurance, warranty or guaranty benefiting Landlord; (dviii) interest, charges damages and fees incurred on debt; (e) expense reserves; (f) costs of structural repairs; (g) any fee, profit relating to construction or compensation retained by Landlord design defects in the Building or its affiliates for management and administration of the Project in excess of 3% of gross revenuesOutside Areas; and (hix) costs incurred in connection with or otherwise associated with any testing, measuring, inspection, responding, clean-up, removal or remediation of or to correct Toxic Materials located on or about the Building or the Property. Furthermore, during the initial Term of this Lease only, Tenant shall not be required to pay more than Three Thousand ($3,000) per repair or replacement for any construction defect repairs or replacements made to the HVAC system serving the Premises, nor more than Fifteen Thousand Dollars ($15,000) per year, in the Project aggregate, for any repairs or to comply with any Law applicable replacements to the Project on HVAC system serving the Commencement DatePremises. The foregoing limitation shall apply only to the costs of any repairs and replacements to the HVAC system and shall not apply to the routine maintenance and servicing of the HVAC system, which shall be included in Operating Expenses, nor shall such limitation apply to the cost of any repairs or replacements to the HVAC system that are required as result of the gross negligence or willful misconduct of Tenant, its agents, employees or contractors, which shall be paid by Tenant upon receipt of an invoice from Landlord for such repairs and/or replacements.