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The basic rent set forth in Paragraph J of the Basic lease Provisions shall be increased by the
<br />amounts computed as follows:
<br />A. An amount equal to the cost of maintenance (including repairs and janitorial costs), utili-
<br />ties, heating and cooling distribution system, labor and supplies, and any other expenses applicable
<br />to the Premises, as described in Paragraph E of the Basic Lease Provisions;
<br />B. An amount equal to Tenant's pro rat& share of the cost of maintenance (including repairs and
<br />janitorial costs), utilities, heating and cooling distribution system, labor and supplies, and secu-
<br />rity applicable to the public common areas of the first floor of the Wild . For purposes of this
<br />Paragraph B, Tenant-s pro-rata share shall be computed by dividing the square footage of Tenant's
<br />premises, as defined in Paragraph E of the Basic lease Provisions (or such other figure as is the
<br />revised square footage of the Premises if the size of same is subsequently increased or decreased),
<br />by the total square footage of Useable Area on the ground floor of the Building; and
<br />C. An amount equal to Tenant's pro-rata share of all costs of building repair, maintenance sad
<br />operation not included in Paragraphs A and B, above. Item of building repair, maintenance and
<br />operation shall consist of (a) all expenses and charges which, in accordance with generally accepted
<br />accounting and management principles, would be considered a cost of maintaining, operating, managing
<br />or repairing the Property, and shall include, by way of illustration but not limitation, all
<br />expenses paid or incurred for water and sewer charges, insurance premiums, utilities, hearing and
<br />cooling mechanical equipment, labor and supplies, license, permit and inspection fees, all sesess-
<br />ments and special assessments due to deed restrictions, declarations and/or owners' associations
<br />which accrue against the Property, the cost of maintenance and service contracts, or in lieu the-
<br />reof, compensation (including employment taxes, similar governmental charges, and fringe benefits)
<br />with respect to all persons who perform duties in connection with landscaping and general Cleaning
<br />directly related to the operation, maintenance or repair of the Property (as well as the cost of all
<br />equipment used in conjunction therewith), real and personal property taxes (as herein defined), cus-
<br />tomary management fees, legal expenses and accounting expenses, as well as (b) an administrative fee
<br />of 5% of Owner's operating costs (exclusive of real and personal property taxes).
<br />Operating costs shall not include depreciation of, or capital expenditures in connection with, the,
<br />Property or any equipment therein or thareon, payments of principal and interest on any mortgage or
<br />other enamnbrance upon the Property, commissions paid for leasing, or the cost of alterations to the
<br />Property. however, operating costs shall include amortization and payments of interest with respect
<br />to any capital improvements made to the Property for the purpose of reducing operating costs or pir-
<br />suant to the requirements of any governaxmital entity. Charges for any services, goods or materials
<br />furnished by Owner at Tenant's request, and all other sums payable by Tenant under the Lease, shall
<br />not be deemed operating costs, but rather shall be payable by Tenant pursuant to the provisions of
<br />the lease, or (if not provided for in the lease) within ten days after Owner renders a statement
<br />therefor.,
<br />"Real and personal property taxes" shall mean and include (a) all real property taxes and personal
<br />property taxes, charges, and general and special assessments, foreseen as well as unforseen, which
<br />are levied or assessed upon or with respect to the Property and any improvements, fixtures, equip-
<br />ment and all other personal property of Owner located on the Property and used in connection with
<br />the operation of the Property, (b) any tax, surcharge or assessment which shall be levied or
<br />assessed in addition to or in lieu of such real or personal property taxes (bunt shall not include
<br />any net income, franchise, capital stock, estate or inheritance taxes of Owner, or any tares paid by
<br />Tenant pursuant to Article 15 of the Lease, and (c) any expenses incurred by Owner in contesting the
<br />amamt or validity of any real and/or personal property taxes.
<br />For purposes of this Paragraph C, Tenant's pro-rata share shall be calculated by dividing the square
<br />footage of Tenant's Premises, as defined in Paragraph E of the Basic Lease Provisions (or such other
<br />figure as is the revised square footage of the Premises if the size of same is subsequentlY
<br />increased or decreased), by the total Useable Area in the Building. For the purposes of this Rider
<br />the term "useable Area" shall net include lobbies, public corridors, public restroots, mechanical
<br />rooms, electrical rooms, telephone closets or other common areas, nor shall it include vertical
<br />penetrations which are not included for the special use of Tenant.
<br />D. Prior to the beginning of the term of the Lease and prior to the first day of each calendar
<br />year thereafter, Owner shall furnish Tenant with an estimate of the per square foot costs for such
<br />calendar year (or portion thereof) pursuant to the items and proration calculations for each of
<br />Paragraph A, B and C, above. The basic rent payable each month in such calendar year shall be
<br />increased by 1/12th of the product of the square footage of the Premises, as set forth in Paragraph
<br />HAR 1988
<br />RIDM NO. 3
<br />PACF 1 OF 2
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