Direct Expense definition
Direct Expense means allocated third party costs. These include payments on behalf of claimants, medical and legal fees where these are allocated to particular General Insurance Claims.
Direct Expense shall not include any income tax of Landlord, any depreciation on the Building or any depreciation on equipment therein, interest, or real estate broker's commission for any sale or for securing the execution of any Lease.
Direct Expense as used herein, shall include all direct costs of operation and maintenance as determined by Generally Accepted Accounting Principles (GAAP) and shall include without limitation the following: building supplies; ad valorem real and personal property taxes and other governmental charges; utility and service charges attributable to Common Areas or paid by Landlord; property, casualty, liability and other insurance premiums; repairs, reserves for major repairs, maintenance and service contracts for the Building, Common Areas and all related mechanical equipment; property management charges; grounds maintenance, security, removal of snow and ice, parking maintenance and striping, landscaping; and all other similar costs and expenses. ATTACHED HERETO AS EXHIBIT C ARE ITEMS EXCLUDED FROM TENANT'S SHARE OF DIRECT EXPENSES. If the State of North Carolina or any political subdivision thereof or any governmental or quasi- governmental authority having jurisdiction over the Building, should specifically impose a tax, assessment charge or fee or specifically increase a then existing tax assessment, charge or fee, which Landlord shall be required to pay, either by way of substituting for said real estate taxes or assessed against the Building, or in addition thereto, or impose an income or franchise tax or tax on rents in substitution for a general tax levied against the Building or in addition thereto, such taxes, assessments, charges or fees shall be deemed to constitute a real property tax hereunder to the extent said taxes are in substitution therefore or in addition thereto. A copy of THE ACTUAL tax bills or assessment bills submitted by Landlord to Tenant shall at all times be sufficient evidence of the amount of taxes and/or assessments levied or assessed against the property to which such ▇▇▇▇ relates. Landlord's reasonable expenditures for attorney's fees, appraiser's fees, consultant's fees and other costs incurred during the Term of this Lease without regard to the tax year involved, in any efforts by Landlord to minimize ad valorem personal and real property taxes, and other governmental charges, which rights are reserved to Landlord, shall be included in the definition of ad valorem real and personal property taxes and other governmental charges for the purposes of this Section. If Landlord should receive a refund of any such taxes or charges, the Tenant will share proportionately in same, after deduction for all of Landlord's expenses in obtaining any suc...
Examples of Direct Expense in a sentence
Generally follow the guidelines for either compensation by a Lump Sum Fee or compensation by a Multiple of Direct Expense in accordance with the type of compensation for the Additional Services and the example format provided herein.
The amount of any insurance premiums incurred by or accrued as an expense of Landlord in securing such coverage shall constitute a Direct Expense and the Tenant shall pay its allocable portion of such cost as a part of the Tenant’s share of Direct Expenses.
County shall not be liable for any Direct Expense Cost that has not been approved in advance and in writing, by the Contract Administrator.
In no event shall the payment by Tenant of any Direct Expense payment, or any amount on account thereof, preclude Tenant from exercising its rights under this Section 4.6.
In addition, if requested by Delta, the Pinnacle Parties shall submit to Delta documentation sufficient to support its actual Direct Expense items, including copies of all invoices.
More Definitions of Direct Expense
Direct Expense with respect to an activity, means salary and benefit charges for personnel time spent engaging in the activity, plus cost of goods and outside services used in the activity, plus fifteen percent (15%) of all of the foregoing in respect of overhead.
Direct Expense means expenses that are attributable to a particular category or categories of tangible investment described in Subpart D of this Part and includes:
Direct Expense as used herein shall include direct costs of operation, repair and maintenance as determined by standard accounting practices and shall include by way of illustration, but is not limited to ad valorem real and personal property taxes, hazard and liability insurance premiums. utilities, heat, air conditioning, janitorial services, labor, materials, supplies, equipment. and tools, permits, licenses, inspection fees, management fees, and common area expenses. The term "direct expense" shall not include depreciation on the building in which the Demised Premises are situated or equipment therein, interest, executive salaries, real estate brokers' commissions marketing costs or principal and interest payments, or other expenses that do not relate to the operation of the building. The annual statement of said direct expense, accounted for and reported in accordance with generally accepted accounting principles, shall be available to Tenant upon written request. For purposes of verifying Landlord's computation and proration of Direct Expenses, including the computation of Controllable Expenses. and to verify Landlord's compliance with this Lease with respect to which items of expense appropriately constitute Direct Expenses. Tenant or its authorized agents. at its sole cost and expense, except as set forth below, during normal business hours. may inspect, audit and copy the books and records of Landlord and its agents. If any such audit reveals an error by Landlord with respect to Direct Expenses, Landlord shall promptly reimburse Tenant for the amount erroneously overcharged to Tenant. In the event such error exceeds 6% of the total average amount then Landlord shall reimburse Tenant for reasonable costs of the audit.
Direct Expense means allocated third party costs. These include payments on behalf of claimants, medical and legal fees where these are allocated to particular Ggeneral Iinsurance claims.
Direct Expense means any direct expense and cost incurred by Buyer directly related to the operation of the Business Unit (e.g. supplies, payroll, outside counsel and auditor fees and expenses, salary and benefits (at 25% of salary) to be allocated for the time of in-house counsel, finance and accounting staff based upon a forty (40) hour work week) and that were incurred as a result of (A) the request of the Managers of the Business Unit, (B) the acts or omissions of the Managers of the Business Unit resulting in an amount payable to any third party or (C) the exercise of Buyer's Oversight Rights (as hereinafter defined).
Direct Expense. The term "Direct Expense" shall include:
(1) All real and personal property taxes and assessments imposed by any governmental authority or agency on the Building and the land on
Direct Expense as used herein shall include direct costs of operation, repair and maintenance as determined by standard accounting practices and shall include by way of illustration, but is not limited to ad valorem real and personal property taxes, hazard and liability insurance premiums, utilities, heat, air conditioning, janitorial service, labor, materials, supplies, equipment and tools, permits, licenses, inspection fees, management fees, and common area expenses. The term "Direct Expenses" shall not include depreciation on the Building in which the Premises are situated or equipment therein, interest, executive salaries, real estate brokers' commissions, or other expenses that do not relate to the operation of the Project. TENANT'S INITIAL LEASE YEAR ADDITIONAL RENT WILL BE CAPPED AT $8.50 PER RENTABLE SQUARE FOOT. THEREFORE TENANT'S INITIAL LEASE YEAR ADDITIONAL RENT WILL BE THE LESSOR OF THE LANDLORD'S PROJECTION OR $8.50 PER RENTABLE SQUARE FOOT. TENANT'S ANNUAL ADDITIONAL RENT INCREASE SHALL BE CAPPED AT 107% OF THEIR PROPORTIONATE SHARE OF THE PREVIOUS CALENDAR YEAR'S OPERATING EXPENSES, EXCEPT REAL ESTATE TAXES, ELECTRICITY, INSURANCE AND ANY OTHER NON-CONTROLLABLE OPERATING EXPENSE ASSOCIATED WITH THE DIRECT OPERATION OF THE PROJECT, WHICH WILL BE PASSED THROUGH TO TENANT WITHOUT ANT CAP OR LIMITATION. 1 of 1 24 LEASE ADDENDUM NO. 2