NOT
INCLUDE:
(I)
COSTS FOR WHICH LANDLORD IS REIMBURSED
OR INDEMNIFIED (EITHER BY AN INSURER, CONDEMNOR, TENANT, WARRANTOR OR OTHERWISE)
OR, IN THE EVENT LANDLORD FAILS TO PROPERLY INSURE THE BUILDING, THEN EXPENSES
SHALL NOT INCLUDE EXPENSES FOR WHICH LANDLORD WOULD HAVE BEEN REIMBURSED IF
LANDLORD HAD ADEQUATELY INSURED THE BUILDING.
(II)
EXPENSES INCURRED IN LEASING OR PROCURING
TENANTS, INCLUDING LEASE COMMISSIONS, ADVERTISING EXPENSES, MANAGEMENT AND
LEASING OFFICES, LEASE NEGOTIATION AND REVIEW, EXPENSES AND RENOVATING SPACE FOR
TENANTS, AND LEGAL EXPENSES INCURRED IN ENFORCING THE TERMS OF ANY TENANT
LEASES.
(III)
INTEREST OR AMORTIZATION PAYMENTS ON ANY
MORTGAGES.
(IV)
COSTS REPRESENTING AN AMOUNT PAID TO AN
AFFILIATE OF LANDLORD WHICH IS IN EXCESS OF THE AMOUNT WHICH WOULD HAVE BEEN
PAID IN THE ABSENCE OF SUCH RELATIONSHIP.
(V)
COSTS SPECIFICALLY BILLED TO AND PAID BY
SPECIFIC TENANTS, INCLUDING, WITHOUT LIMITATION, EXPENSES FOR WORK PERFORMED FOR
OTHER TENANTS IN THE BUILDING AND EXPENSES TO BE BILLED TO OTHER TENANTS FOR
EXCESS UTILITY USE OR OTHER SERVICES THAT ARE BEYOND NORMAL OFFICE USE.
THERE
SHALL BE NO DUPLICATION OF COSTS OR REIMBURSEMENT.
(VI)
DEPRECIATION AND COSTS INCURRED BY LANDLORD
FOR ALTERATIONS THAT ARE CONSIDERED CAPITAL IMPROVEMENTS AND REPLACEMENTS UNDER
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES CONSISTENTLY APPLIED, EXCEPT THAT THE
ANNUAL AMORTIZATION OF THESE COSTS SHALL BE INCLUDED IN THE FOLLOWING TWO
INSTANCES:
(A)
THE ANNUAL AMORTIZATION OVER ITS USEFUL LIFE
(NOT TO BE LESS THAN TEN (10) YEARS) WITH A REASONABLE SALVAGE VALUE ON A
STRAIGHT LINE BASIS OF THE COST OF ANY IMPROVEMENT MADE BY LANDLORD AND REQUIRED
BY ANY CHANGES IN APPLICABLE LAWS, RULES, OR REGULATIONS OF ANY GOVERNMENTAL
AUTHORITY ENACTED AFTER THE BUILDING WAS FULLY ASSESSED AS A COMPLETED AND
OCCUPIED UNIT AND THE LEASE WAS SIGNED.
(B)
THE ANNUAL AMORTIZATION OVER ITS USEFUL LIFE
(NOT TO BE LESS THAN TEN (10) YEARS) WITH A REASONABLE SALVAGE VALUE ON A
STRAIGHT LINE BASIS OF THE COST OF ANY EQUIPMENT OR CAPITAL IMPROVEMENTS MADE BY
LANDLORD AFTER THE BUILDING WAS FULLY ASSESSED AS A COMPLETED AND OCCUPIED UNIT
AND THE LEASE WAS SIGNED, AS A LABOR-SAVING MEASURE OR TO ACCOMPLISH OTHER
SAVINGS IN OPERATING, REPAIRING, MANAGING, OR MAINTAINING OF THE BUILDING OR
LAND, BUT ONLY TO THE EXTENT OF THE SAVINGS REALIZED.
(VII)
SALARIES OTHER THAN SALARY FOR A BUILDING
MANAGER AND/OR MAINTENANCE PERSONNEL OR SALARY REIMBURSEMENT TO THE LANDLORD
EQUAL TO $0.35 PER RENTABLE SQUARE FOOT OF FLOOR AREA ANNUALLY.
3
(VIII)
LANDLORD'S PERSONAL PROPERTY AND LANDLORD'S OWN
OCCUPANCY COSTS, IF ANY, IN THE BUILDING.
(C)
THE PORTION OF EXPENSES WHICH ARE
APPLICABLE TO
THE PREMISES (THE "PREMISES EXPENSES") SHALL BE DETERMINED BY
MULTIPLYING THE EXPENSES BY A FRACTION, THE NUMERATOR OF WHICH IS THE RENTABLE
FLOOR AREA OF THE PREMISES AS SHOWN ON THE SUMMARY AND THE DENOMINATOR OF WHICH
IS THE AGGREGATE NUMBER OF RENTABLE FLOOR AREA IN THE BUILDING AS SHOWN ON THE
SUMMARY.
IN ADDITION, TENANT SHALL HAVE RESPONSIBILITY FOR THE ENTIRE AMOUNT OF
EXPENSES RELATING DIRECTLY TO THE COST OF OPERATING THE PREMISES, WHICH