OTHER DOCUMENTS OR INSTRUMENTS TO WHICH THE PROJECT IS SUBJECT OR LEVIED BY ANY
ASSOCIATION OR ENTITY OF WHICH THE PROJECT OR ANY PART THEREOF IS A MEMBER OR TO
WHICH THE PROJECT OR ANY PART THEREOF IS SUBJECT.
4.02.5
MAINTENANCE AND REPAIR COSTS.
SUBJECT TO THE LIMITATIONS ON
EXPENSES SET FORTH HEREIN, THE REASONABLE COSTS TO MAINTAIN AND REPAIR THE
PREMISES, THE BUILDINGS AND/OR THE PROJECT OR ANY PART THEREOF, INCLUDING,
WITHOUT LIMITATION, (A) ALL COSTS PAID UNDER MAINTENANCE, MANAGEMENT AND SERVICE
AGREEMENTS SUCH AS CONTRACTS FOR JANITORIAL, SECURITY AND REFUSE REMOVAL,
(B) ALL COSTS TO MAINTAIN AND REPAIR THE ROOF COVERINGS OF THE BUILDINGS OR THE
PROJECT OR ANY PART THEREOF, AND (C) ALL COSTS TO MAINTAIN AND REPAIR THE
HEATING, VENTILATING, AIR CONDITIONING, PLUMBING, GAS, SEWER, DRAINAGE,
ELECTRICAL, FIRE PROTECTION AND LIFE SAFETY SYSTEMS AND OTHER MECHANICAL AND
ELECTRICAL SYSTEMS AND EQUIPMENT SERVING THE PREMISES, THE BUILDINGS AND/OR THE
PROJECT OR ANY PART THEREOF (COLLECTIVELY, THE "SYSTEMS").
4.03
EXPENSE LIMITATIONS.
4.03.1
CAPITAL EXPENSE LIMITATIONS.
NOTWITHSTANDING ANYTHING IN THIS
PARAGRAPH 4.03 TO THE CONTRARY, THE COST OF ALL REPAIRS, REPLACEMENTS OR
IMPROVEMENTS MADE TO THE PREMISES OR THE PROJECT WHICH WOULD CUSTOMARILY BE
CAPITALIZED UNDER INDUSTRY STANDARD COMMERCIAL REAL ESTATE ACCOUNTING PRACTICES
SHALL NOT BE INCLUDED AS ADDITIONAL RENT AND SHALL BE THE SOLE RESPONSIBILITY OF
LANDLORD; PROVIDED, HOWEVER, THAT TO THE EXTENT ANY SUCH COSTS RELATE TO
REPAIRS, REPLACEMENTS OR IMPROVEMENTS WHICH ARE (I) REQUIRED BY LAW TO BE
PERFORMED EITHER (A) DUE TO THE ACTIONS OF TENANT (INCLUDING,
6
WITHOUT LIMITATION, THE MAKING OF ANY ALTERATIONS) OR (B) TO COMPLY WITH THE
REQUIREMENTS OF ANY LAW NOT EFFECTIVE WITH RESPECT TO THE PROJECT UPON THE
COMMENCEMENT DATE, OR (II) PERFORMED PRIMARILY TO REDUCE CURRENT OR FUTURE
OPERATING EXPENSE COSTS OR OTHERWISE IMPROVE THE OPERATING EFFICIENCY OF THE
PROJECT AND WHICH REPAIRS, REPLACEMENTS OR IMPROVEMENTS ARE CONSISTENT WITH
INSTITUTIONAL ASSET MANAGEMENT PRACTICES, OR (III) INCURRED IN RESTORATION OR
OTHER REPAIR FOLLOWING A CASUALTY, BUT ONLY TO THE EXTENT EXPRESSLY INCLUDED
PURSUANT TO PARAGRAPH 4.02.2 ABOVE, THEN IN ANY SUCH CASE SUCH COSTS SHALL BE
INCLUDED AS ADDITIONAL RENT UNDER THIS PARAGRAPH 4.03, AND TENANT SHALL BE
REQUIRED TO PAY ONLY THE PRO RATA SHARE OF THE COST OF THE ITEM FALLING DUE
WITHIN THE TERM BASED UPON THE AMORTIZATION OF THE SAME OVER THE USEFUL LIFE OF
SUCH ITEM (INCLUDING INTEREST ON THE UNAMORTIZED COST), AS REASONABLY DETERMINED
IN ACCORDANCE WITH INDUSTRY STANDARD COMMERCIAL REAL ESTATE ACCOUNTING PRACTICES
.
4.03.2
REASONABLE EXPENSES.
AN EXPENSE INCURRED BY LANDLORD IN ANY
CALENDAR YEAR SHALL BE DEEMED TO BE "COMMERCIALLY REASONABLE" SO LONG AS THE
SAME WOULD GENERALLY BE INCURRED BY AN INSTITUTIONAL OWNER (AS HEREINAFTER
DEFINED) DURING SUCH YEAR IN CONNECTION WITH THE PROJECT, APPLYING INSTITUTIONAL
ASSET MANAGEMENT PRACTICES (AS HEREINAFTER DEFINED), GIVING DUE REGARD TO THE
RESPONSIBILITIES OF LANDLORD SET FORTH HEREIN AND THE NATURE AND CHARACTER OF
THE PROJECT.
AS USED HEREIN, THE TERM "INSTITUTIONAL OWNER" MEANS PENSION
FUNDS, LIFE INSURANCE COMPANIES, REAL ESTATE INVESTMENT TRUSTS