Basic Cost. The actual costs incurred by the Landlord in operating and maintaining the Building and the Land during each calendar year of the Lease Term for which Landlord has not been reimbursed by insurance proceeds, condemnation awards or otherwise. Such costs shall include, by way of example rather than of limitation, (i) charges or fees for, and taxes on, the furnishing of electricity, water, sewer service, gas, fuel, or other utility services to the Building and the Land; (ii) costs of providing
... elevator, janitorial, trash, snow removal service, restriping, resurfacing, maintaining and repairing all walkways, roadways and parking areas on the Land, security costs, and cost of maintaining grounds, common areas, signage, and mechanical systems, sanitary sewer and drainage of the Building and the Land; (iii) all other costs of maintaining and repairing any or all of the Building or Land; (iv) all costs reasonably allocated by Landlord to the common areas of the Building and the Land in a multi-building development; (v) charges or fees for any necessary governmental permits and licenses; (vi) management fees (not to exceed 3% of gross revenues from the Building), overhead and expenses reasonably related to management of the Building (including salaries for personnel directly or indirectly responsible for management and operation of the Building); (vii) premiums and payment of deductibles for hazard, liability, workmen's compensation or similar insurance upon any or all of the Building and the Land; (viii) costs arising under service contracts with independent contractors; (ix) the cost of any other items which, under generally accepted accounting principles consistently applied from year to year with respect to the Building or the Land, constitute operating or maintenance costs attributable to any or all of the Building or the Land; and (x) amortization of the cost of capital items incurred with respect to the ownership, operation, maintenance and repair of the Building and Land, including, without limitation, repairs, alterations, installations, improvements and additions required pursuant to applicable laws and regulations or by any governmental or quasi-governmental authority, agency, bureau, board or department having jurisdiction. All such costs shall be determined and amortized over the reasonable life of the capital investment items, determined by Landlord in accordance with general accepted accounting principles, and including a cost of capital funds adjustment equal to twelve percent (12%) per year on the unamortized portions of such costs. The amount of such amortization allocable to each given year shall be included in Basic Cost for such year. The foregoing notwithstanding, Basic Cost will not include: (i) principal or interest payments on any mortgage, deed of trust or ground lease; (ii) costs incurred in connection with leasing space in the Building, including: legal fees and expenses, space planning and construction expenses, and brokerage / leasing commissions; (iii) depreciation of the Building except as specified above; (iv) the costs of special services or utilities separately charged to particular tenants of the Building; (v) capital expenditures and repairs to structural elements of the Building (including, but not limited to: foundations, roof, exterior structural walls, and other load-bearing elements of the Building), except those capital expenditures which are made (a) with the reasonable purpose of reducing operating expenses for the Building, or (b) to comply with laws, codes, etc. which are first applicable after the Commencement Date; (vi) advertising expenses; and (vii) salaries, wages, or other compensation paid to officers or executives of Landlord (or employees of Landlord's property management firm). In determining Basic Cost, where less than 95% of the Building's rentable square footage is occupied during all or any part of a year, those items of the Basic Cost which vary according to occupancy, such as electricity and janitorial services, shall be increased to that amount which would have been incurred had the Building been 95% occupied during the entire year.
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