for Taxes shall be July 1, 2005 through
June 30, 2006.
Base Year for Building Expenses:
The base year for Building Expenses shall be
calendar year 2005.
Cost of Additional Services:
To be charged at Landlord's reasonable rates for
such service.
DEFINITIONS:
For purposes hereof, the following definitions shall apply:
Agents - "Agents" of Tenant means Tenant's agents (including independent
contractors), employees, representatives, guests, visitors and invitees.
Building Expenses - "Building Expenses" means all those expenses (computed on a
calendar basis) paid or incurred by Landlord in connection with owning,
maintaining, operating, managing, replacing, and repairing the Real Property (as
defined below) or any part thereof, in a manner deemed reasonable and
appropriate by Landlord, including, but not limited to, the following:
REASONABLE ADMINISTRATIVE COSTS, INCLUDING, BUT NOT LIMITED TO, LEGAL
ACCOUNTING, ENGINEERING, AND OTHER PROFESSIONAL FEES, AND OFFICE AND BOOKKEEPING
EXPENSES.
ALL INSURANCE.
CLEANING (INCLUDING WINDOWS), JANITORIAL SERVICE AND TRASH REMOVAL.
ELECTRICITY, WATER, SEWER, AND OTHER FUEL AND UTILITIES.
MAINTENANCE, REPAIR, REPLACEMENT, REPAINTING, AND REDECORATING ALL OR ANY PART
OF THE REAL PROPERTY, WHETHER STRUCTURAL OR NON-STRUCTURAL, INCLUDING, BUT NOT
LIMITED TO, THE REMOVAL OF SNOW, ICE, AND DEBRIS THEREFROM AND THE POLICING AND
REGULATING OF TRAFFIC WITH RESPECT THERETO.
ALL OTHER EXPENSES WHICH WOULD BE CONSIDERED AN EXPENSE OF OWNING, MAINTAINING,
OPERATING, MANAGING OR REPAIRING THE REAL PROPERTY UNDER GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES AND WHICH IS NORMAL, CUSTOMARY AND
2
USUAL IN CONNECTION WITH OTHER FIRST-CLASS PROFESSIONAL OFFICE BUILDINGS IN THE
DOWNTOWN BALTIMORE CITY AREA.
REASONABLE MANAGEMENT OR MANAGING AGENTS' FEES, WAGES, SALARIES, LABOR CHARGES,
COMPENSATION AND SUBCONTRACT EXPENSES OF ALL PERSONS, INCLUDING, BUT NOT LIMITED
TO, CONTRACTORS, ENGAGED IN THE MAINTENANCE, OPERATION, ADMINISTRATION,
PROTECTION, REPLACEMENT, OR REPAIR OF THE REAL PROPERTY.
PERSONAL PROPERTY TAXES ON ALL PERSONAL PROPERTY USED FOR THE REAL PROPERTY.
REASONABLE COST OF REPAINTING AND REDECORATING THE COMMON AREA.
SUPPLIES, EQUIPMENT, UNIFORMS, EQUIPMENT RENTAL AND SUNDRIES AND SALES AND USE
TAXES ON SUPPLIES AND SUNDRIES, PAYROLL TAXES AND OTHER PERSONNEL COSTS.
THE ANNUAL AMORTIZATION OVER ITS USEFUL LIFE WITH A REASONABLE SALVAGE VALUE ON
A STRAIGHT-LINE BASIS OF THE COSTS OF ANY EQUIPMENT OR CAPITAL IMPROVEMENTS MADE
BY LANDLORD AS A LABOR-SAVING MEASURE OR TO ACCOMPLISH OTHER SAVINGS IN
OPERATING, REPAIRING, MANAGING, OR MAINTAINING OF THE PROPERTY, BUT ONLY TO THE
EXTENT OF THE SAVINGS.
Notwithstanding anything to the contrary in this Lease, Building Expenses shall
not include the following:
ANY CHARGES BORNE DIRECTLY BY TENANTS, INCLUDING, BUT NOT LIMITED TO, PERSONAL
PROPERTY TAXES AND ADDITIONAL ELECTRICAL SERVICES DIRECTLY PAID FOR BY TENANTS;
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 TO THE EXTENT PERMITTED IN SECTION 2.2.11;
EXECUTIVE SALARIES FOR SERVICES NOT BENEFITING THE REAL PROPERTY, THE BUILDING,
OR THE PREMISES AS PERFORMED BY PERSONNEL ABOVE THE GRADE OF GENERAL MANAGER;
AND
PAYMENTS OF MORTGAGE PRINCIPAL AND INTEREST.
REPAIRS OR OTHER WORK OCCASIONED BY FIRE, WINDSTORM OR OTHER CASUALTY