BE DETERMINED UNDER THE CURRENT LEASE:
(I)
AS USED HEREIN, THE TERM "TENANT'S PRORATA SHARE" SHALL MEAN THE
OPERATING EXPENSES FOR THE PERIOD (PRORATED IN THE CASE OF PARTIAL YEARS) FROM
MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE NET RENTABLE AREA
OF THE PREMISES, WHICH AS OF THE COMMENCEMENT DATE HEREOF IS 278,532 AND THE
DENOMINATOR OF WHICH SHALL BE 425,540.
(II)
DESCRIPTION OF OPERATING EXPENSES.
FOR THE PURPOSES OF THIS
LEASE, "OPERATING EXPENSES" SHALL MEAN ALL ACTUAL EXPENSES, COSTS AND
DISBURSEMENTS OF EVERY KIND AND NATURE (SUBJECT TO THE LIMITATIONS AND
EXCLUSIONS SET FORTH HEREIN), COMPUTED ON THE ACCRUAL BASIS, INCURRED OR PAID IN
CONNECTION WITH THE OWNERSHIP, MANAGEMENT, OPERATION, REPAIR AND MAINTENANCE OF
THE BUILDING, INCLUDING BUT NOT LIMITED TO, BUT WITHOUT DUPLICATION, THE
FOLLOWING:
6
A.
BUILDING PERSONNEL COSTS, INCLUDING,
BUT NOT LIMITED TO, SALARIES, WAGES, FRINGE BENEFITS, SOCIAL SECURITY TAXES AND
OTHER DIRECT AND INDIRECT COSTS OF SENIOR PROPERTY MANAGER, ENGINEERING MANAGER,
BUILDING MANAGERS, ACCOUNTING MANAGER, CONSTRUCTION MANAGER, PROMOTIONS MANAGER,
SECURITY MANAGER, AND EACH DEPARTMENT'S SUPPORTING PERSONNEL AND ADMINISTRATIVE
ASSISTANTS, ENGINEERS, CONSTRUCTION DEPARTMENT, SUPERINTENDENTS, WATCHMEN,
PORTERS AND ANY OTHER PERSONNEL ENGAGED IN THE OPERATION AND MAINTENANCE OF THE
GALLERIA PROJECT AND ASSOCIATED OVERHEAD;
B.
THE REASONABLE COST OF ALL SUPPLIES,
TOOLS, EQUIPMENT AND MATERIALS USED IN THE OPERATION, MANAGEMENT, MAINTENANCE,
REPAIR AND ACCESS CONTROL OF THE BUILDING;
C.
THE COST OF ALL UTILITIES FOR THE
BUILDING, INCLUDING BUT NOT LIMITED TO THE COST OF ELECTRICITY, GAS, WATER,
SEWER SERVICES AND POWER FOR HEATING, LIGHTING, AIR CONDITIONING AND
VENTILATING;
D.
THE COST OF ALL MAINTENANCE AND SERVICE
AGREEMENTS FOR THE BUILDING AND THE EQUIPMENT THEREIN, INCLUDING BUT NOT LIMITED
TO SECURITY SERVICE, GARAGE OPERATORS, WINDOW CLEANING, ELEVATOR MAINTENANCE,
HVAC MAINTENANCE, JANITORIAL SERVICE, WASTE RECYCLING SERVICE, LANDSCAPING
MAINTENANCE AND REASONABLE AND CUSTOMARY LANDSCAPING REPLACEMENT;
E.
THE REASONABLE COST OF REPAIRS AND
GENERAL MAINTENANCE OF THE BUILDING, ANY REASONABLE COSTS INCURRED IN ORDER TO
COMPLY WITH ANY LAW, STATUTE, ORDINANCE OR GOVERNMENTAL REGULATION, RULE OR
REQUIREMENT NOW IN FORCE OR WHICH MAY HEREAFTER BE ENACTED OR PROMULGATED, AND
ANY REASONABLE COSTS INCURRED IN ORDER TO COMPLY WITH THE REQUIREMENT OF ANY
INSURER OR MORTGAGEE WHERE SUCH REQUIREMENTS CONCERN SAFETY OR STRUCTURAL
FEATURES OF THE BUILDING AND ARE COMMERCIALLY REASONABLE IN LIGHT OF
REQUIREMENTS GENERALLY IMPOSED IN THE INSURANCE OR REAL ESTATE LENDING
INDUSTRIES WITH REGARD TO BUILDINGS SIMILAR TO THE BUILDING;
F.
THE COST OF ANY CAPITAL IMPROVEMENTS
OR REPAIRS AMORTIZED OVER SUCH REASONABLE PERIOD COMMENCING AFTER COMPLETION OF
SUCH IMPROVEMENTS OR REPAIRS AS LANDLORD REASONABLY DETERMINES (THE AMORTIZATION
PERIOD SELECTED BY LANDLORD SHALL REFLECT THE USEFUL LIFE, IN ACCORDANCE WITH
INDUSTRY STANDARDS, OF THE IMPROVEMENT OR REPAIR) TOGETHER WITH INTEREST ON THE
UNAMORTIZED BALANCE AT THE PRIME RATE AT THE TIME OF SUCH CAPITAL IMPROVEMENTS
OR REPAIRS (I) WHICH ARE REQUIRED TO REPLACE EXISTING ITEMS WHICH HAVE WORN OUT,
PROVIDED, HOWEVER, THAT LANDLORD REASONABLY DEMONSTRATES THAT THE REPLACEMENT OF
SUCH WORN OUT ITEMS IS NECESSARY AND MORE COST-EFFECTIVE THAN THE CONTINUOUS
REPAIR OF