BY LANDLORD IN OPERATING AND MAINTAINING THE BUILDING AND THE LAND (OR
PORTION OF THE LAND RELATING TO THE BUILDING), INCLUDING WITHOUT LIMITATION, THE
COMMON AREAS THEREOF, ALL FIXTURES AND EQUIPMENT THEREIN OR THEREON, WATER AND
SEWER CHARGES AS METERED, REPAIR AND MAINTENANCE OF FIXTURES, EQUIPMENT AND
UTILITY SYSTEMS RELATING TO THE PREMISES, JANITORIAL SERVICES (IF ANY) PROVIDED
TO
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TENANT, TRASH REMOVAL COSTS PERTAINING TO THE BUILDING, GRASS CUTTING, LANDSCAPE
MAINTENANCE, SNOW REMOVAL AND PARKING AREA REPAIR, MAINTENANCE, REPAVING,
CLEANING AND STRIPING, COSTS OF LIGHTING THE PARKING AREA, AND ALL FEES, CHARGES
AND EXPENSES IMPOSED OR ASSESSED AGAINST THE BUILDING AND ITS OWNER(S) BY ANY
APPLICABLE OWNERS ASSOCIATION.
EXPENSES SHALL BE PRE-PAID ON A MONTHLY BASIS
DURING EACH CALENDAR YEAR OF THE TERM OF THIS LEASE AS PROVIDED HEREIN.
ATTACHED HERETO AS EXHIBIT "B" AND MADE A PART HEREOF IS THE CURRENT BUDGET
ESTIMATE AND OPERATING DESCRIPTION FOR THE OPERATION OF THE BUILDING AND THE
LAND.
ALL ITEMS ON THE BUDGET SHALL BE INCLUDED AS EXPENSES, BUT OTHER EXPENSES
MAY BE INCURRED FROM TIME TO TIME.
(B)
FOR PURPOSES HEREOF, "EXPENSES" SHALL 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
3
OF