940 S. MINNIE, LP - 2014 - Laserfiche WebLink

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Exhibit F (v) all other actual, reasonable cash operating costs and expenses, calculated on an annual basis, that are directly attributable to managing and operating the Property, including, without limiting the generality of the foregoing, the following: costs and expenses for real and personal property taxes, special assessments or similar charges; water, fuel, electricity and other utilities; heating, ventilation and air conditioning expenses; labor; supplies; tools; equipment; insurance; advertising and marketing; accounting and legal fees; brokerage connnissions and other leasing expenses; reasonable reserves for all anticipated expenses as approved by the City; and other such items constituting operation, maintenance and repair costs actually paid by the Borrower, subject to the following conditions: (a) Depreciation and amortization expenses shall not be considered Operating Expenses, except as otherwise provided herein. (b) All furniture, fixtures, machinery and equipment expenditures with an individual cost of $1,000 or more and a useful life of more than one year, shall be amortized over a period determined in accordance with generally accepted accounting principles (except to the extent purchased with reserve funds which have otherwise been included as an Operating Expense). Such amortization shall assume equal annual installments of principal and interest with an interest factor at the actual rate not to exceed the reference rate of the Bank of America plus two percent (2 %) if such furniture, fixtures, machinery and equipment are financed, or said reference rate plus two percent (2 %) if paid for in cash by Borrower. All furniture, fixtures, machinery and equipment with an individual cost of less than $200 or a useful life of less than one year shall be treated as expense items. (c) Any expenses, compensation or fees paid to any affiliate of Borrower shall only be included as Operating Expenses to the extent they are not in excess of the reasonable expenses, compensation or fees which would be payable to unrelated third parties in arms - length transactions for similar services in the Santa Ana, California area. (vi) Any other expenses necessary to meet senior lender requirements and requirements of Borrower's limited partner, or its assignee, as set forth in Borrower's Agreement of Limited Partnership (the "Partnership Agreement "). (vii) Deferred Developer Fee due to cost over -runs during initial rehabilitation. "Project" shall mean the acquisition and rehabilitation of the Property by Borrower pursuant to the Loan Agreement. "Property" shall mean the real property located at 940 South Minnie Street, Santa Ana, California, described in the City Deed of Trust. "Refinancing" shall mean changing the then existing financing on the Property by, without limitation, modifying the interest rate and /or the tern of the existing Senior Loan, 3