OF A LESSER AMOUNT THAN THE CORRECT RENT SHALL BE DEEMED TO BE OTHER
THAN A PAYMENT ON ACCOUNT, NOR SHALL ANY ENDORSEMENT OR STATEMENT ON ANY CHECK
OR LETTER ACCOMPANYING ANY PAYMENT BE DEEMED AN ACCORD OR SATISFACTION, AND
AGENT OR LANDLORD MAY ACCEPT SUCH PAYMENT WITHOUT PREJUDICE TO ITS RIGHT TO
RECOVER THE BALANCE DUE OR TO PURSUE ANY OTHER REMEDY AVAILABLE TO LANDLORD.
IF
THE COMMENCEMENT DATE OCCURS ON A DAY OTHER THAN THE FIRST DAY OF A CALENDAR
MONTH, THE RENT DUE FOR THE FIRST CALENDAR MONTH OF THE TERM SHALL BE PRORATED
ON A PER DIEM BASIS (BASED ON A 360 DAY, 12 MONTH YEAR) AND PAID TO LANDLORD ON
THE COMMENCEMENT DATE, AND THE TERM WILL BE EXTENDED TO TERMINATE ON THE LAST
DAY OF THE CALENDAR MONTH IN WHICH THE EXPIRATION DATE STATED IN SECTION 1.6
OCCURS.
3.
OPERATING EXPENSES.
3.1.
DEFINITIONAL TERMS RELATING TO ADDITIONAL RENT.
FOR PURPOSES OF
THIS SECTION AND OTHER RELEVANT PROVISIONS OF THE LEASE:
3.1.1
OPERATING EXPENSES.
THE TERM "OPERATING EXPENSES" SHALL MEAN ALL
COSTS AND EXPENSES PAID OR INCURRED BY LANDLORD WITH RESPECT TO, OR IN
CONNECTION WITH, THE OWNERSHIP, REPAIR, MAINTENANCE AND OPERATION OF THE
PROPERTY.
OPERATING EXPENSES MAY INCLUDE, BUT ARE NOT LIMITED TO, ANY OR ALL OF
THE FOLLOWING: (I) SERVICES PROVIDED DIRECTLY BY EMPLOYEES OF LANDLORD OR AGENT
IN CONNECTION WITH THE OPERATION, MAINTENANCE OR RENDITION OF OTHER SERVICES TO
OR FOR THE PROPERTY (INCLUDING, BUT NOT LIMITED TO, THOSE AREAS OF THE BUILDING
IN WHICH MULTIPLE TENANTS, IF ANY, HAVE ACCESS TO FOR USE ("COMMON AREAS"));
(II) TO THE EXTENT NOT SEPARATELY METERED, BILLED, OR FURNISHED, ALL CHARGES FOR
UTILITIES AND SERVICES FURNISHED TO EITHER OR BOTH OF THE PROPERTY AND THE
PREMISES, INCLUDING, WITHOUT LIMITATION, THE COMMON AREAS (AS HEREINAFTER
DEFINED), TOGETHER WITH ANY TAXES ON SUCH UTILITIES; (III) ALL MARKET-BASED
PREMIUMS FOR COMMERCIAL PROPERTY, CASUALTY, GENERAL LIABILITY, BOILER, FLOOD,
EARTHQUAKE, TERRORISM AND ALL OTHER TYPES OF INSURANCE PROVIDED BY LANDLORD AND
RELATING TO THE PROPERTY; (IV) ANY CAPITAL IMPROVEMENTS MADE BY, OR ON BEHALF
OF, LANDLORD TO THE PROPERTY THAT ARE EITHER OR BOTH (A) DESIGNED TO REDUCE
OPERATING EXPENSES AND ACTUALLY DO REDUCE OPERATING EXPENSES AND (B) REQUIRED TO
KEEP THE PROPERTY IN COMPLIANCE WITH ALL GOVERNMENTAL LAWS, RULES AND
REGULATIONS APPLICABLE THERETO, FROM TIME TO TIME, THE COST OF WHICH CAPITAL
IMPROVEMENTS SHALL BE REASONABLY AMORTIZED BY LANDLORD OVER THE USEFUL LIFE OF
THE IMPROVEMENT, IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES;
(V) TAXES, AS HEREINAFTER DEFINED IN SECTION 3.1.2; (VI) DUES, FEES OR OTHER
COSTS AND EXPENSES, OF ANY NATURE, DUE AND PAYABLE TO ANY ASSOCIATION OR
COMPARABLE ENTITY TO WHICH LANDLORD, AS OWNER OF THE PROPERTY, IS A MEMBER OR
OTHERWISE BELONGS AND THAT GOVERNS OR CONTROLS ANY ASPECT OF THE OWNERSHIP AND
OPERATION OF THE PROPERTY; (VII) ANY REAL ESTATE TAXES AND COMMON AREA
MAINTENANCE EXPENSES LEVIED AGAINST, OR ATTRIBUTABLE TO, THE PROPERTY UNDER ANY
DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS, RECIPROCAL EASEMENT
AGREEMENT OR