ANY EXISTING OR FUTURE GROUND LEASE;
(VIII)
CAPITAL EXPENDITURES AND DEPRECIATION, EXCEPT THAT
IF ANY EQUIPMENT IS PURCHASED FOR MAINTENANCE AND OPERATION OF THE COMMON AREAS
WHICH IS TREATED BY LANDLORD AS A CAPITAL ITEM IN ACCORDANCE WITH GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES ("GAAP") AND WHICH (A) IS A REPLACEMENT WHEN A
REPAIR CANNOT PRUDENTLY BE MADE (BUT ONLY TO THE EXTENT OF LANDLORD'S REASONABLE
ESTIMATE OF THE COST TO REPAIR SUCH ITEM HAD LANDLORD ELECTED TO REPAIR RATHER
THAN REPLACE SUCH ITEM), (B) IS NECESSARY TO COMPLY WITH ANY LEGAL REQUIREMENT
WHICH IS ENACTED AFTER THE DATE OF THIS LEASE OR (C) HAS THE EFFECT OF REDUCING
EXPENSES WHICH WOULD OTHERWISE BE INCLUDED IN COMMON AREA OPERATING EXPENSES
(BUT ONLY TO THE EXTENT OF SUCH SAVINGS), THEN SUCH EQUIPMENT SHALL BE
DEPRECIATED ON A STRAIGHT-LINE BASIS OVER THE LESSER OF (I) THE USEFUL LIFE OF
SUCH EQUIPMENT OR (II) TEN (10) YEARS, AND THERE SHALL BE INCLUDED IN COMMON
AREA OPERATING EXPENSES IN EACH OPERATING YEAR THE AMOUNT OF SUCH DEPRECIATION
ATTRIBUTABLE TO SUCH OPERATING YEAR, PROVIDED, HOWEVER, THAT ALL AMOUNTS THEREOF
INCLUDED IN COMMON AREA OPERATING EXPENSES IN OPERATING YEARS SUBSEQUENT TO THE
YEAR PAID SHALL HAVE ADDED THERETO INTEREST AT THE INTEREST RATE (DETERMINED AS
OF THE DATE ON WHICH SUCH EXPENSE WAS INCURRED) FROM THE DATE EACH SUCH EXPENSE
WAS INCURRED BY LANDLORD;
(IX)
AS TO SALARIES AND OTHER COMPENSATION AND
PROFESSIONAL FEES OF PERSONS EMPLOYED OR RETAINED AT OR FOR THE COMMON AREAS AND
AT ADDITIONAL LOCATIONS OTHER THAN THE COMMON AREAS, ONLY A PRO RATA ALLOCATION
(BASED ON AN EQUITABLE TIME ALLOCATION) OF THE FOREGOING EXPENSES INCURRED ON
BEHALF OF THE COMMON AREAS SHALL BE INCLUDED IN COMMON AREA OPERATING EXPENSES;
(X)
COSTS AND EXPENSES PAYABLE TO A LANDLORD
AFFILIATED ENTITY OR ITS PARTNERS OR STOCKHOLDERS TO THE EXTENT THAT SUCH COSTS
AND EXPENSES EXCEED, IN ANY MATERIAL RESPECT, COMPETITIVE COSTS AND EXPENSES
GENERALLY CHARGED FOR MATERIALS OR SERVICES RENDERED BY PERSONS OR ENTITIES
(OTHER THAN ANY LANDLORD AFFILIATED ENTITY OR ITS PARTNERS OR STOCKHOLDERS) OF
SIMILAR SKILL, COMPETENCE AND EXPERIENCE;
(XI)
ALL COSTS AND EXPENSES INCLUDED IN OPERATING
EXPENSES;
(XII)
ALL COSTS AND EXPENSES ALLOCABLE TO ANY
PORTION OF THE COMMON AREAS THAT IS HEREAFTER CONVEYED TO A THIRD PARTY (OTHER
THAN TO A LANDLORD AFFILIATED ENTITY), EXCEPT, HOWEVER, THAT IF ANY PORTION OF
THE COMMON AREAS SO CONVEYED CONSTITUTES A PARKING STRUCTURE, AND IF LANDLORD
BOTH RETAINS THE RIGHT TO USE ALL OR A PORTION OF THE PARKING SPACES WITHIN SUCH
STRUCTURE FOR TENANTS OF THE COMPLEX AND PAYS ALL OR A PORTION OF THE COSTS AND
EXPENSES ALLOCABLE TO SUCH CONVEYED PARKING STRUCTURE
15
THEN SUCH COSTS AND EXPENSES PAYABLE BY LANDLORD WITH RESPECT TO SUCH CONVEYED
PARKING STRUCTURE SHALL BE INCLUDED IN COMMON AREA OPERATING EXPENSES;
(XIII)
ALL COSTS AND EXPENSES ALLOCABLE TO ANY
BUILDINGS OR STRUCTURES CONSTRUCTED ON ANY PORTION OF THE COMPLEX (OTHER THAN
THE BUILDING, PLAZA II AND THE EXISTING BUILDINGS) OR ALLOCABLE TO ANY PORTIONS
OF