6. Any rental payments and related costs pursuant to any ground lease of land underlying all or any portion of the Complex, and any costs related to any reciprocal easement agreement, and/or covenant, condition and restriction agreement;
7. Any office rental and any parking charges, either actual or not, for the Landlord’s and/or Landlord’s managing agent’s management, engineering, maintenance, security, parking or other vendor personnel;
8. Any costs incurred in connection with the original design, construction, landscaping andclean-up of the Complex or any major changes to same, including but not limited to, additions or deletions of floors, renovations of the Common Areas (unless such renovations are agreed to by Tenant), correction of defects in design and/or construction of the Building replacement of major components which have reached the end of their useful life except, as set forth in Section 9 below, the replacement actually results in reducing Operating Expenses;
9. All costs of a capital nature, including, but not limited to, capital improvements, capital repairs, capital equipment, and capital tools, all as determined in accordance with generally accepted accounting principles, consistently applied, and sound management practices, except (i) any capital improvement made to the Building which actually reduces Operating Expenses, amortized on a straight-line basis, including interest at the lesser of the interest rate actually paid by Landlord or seven percent (7.0%) per annum, over the improvement’s useful life in accordance with generally accepted accounting principles, provided, however, the annual amortization shall not exceed the annual amount of Operating Expenses actually saved as a result of such capital improvement, or (ii) capital expenditures required by government regulation or law enacted after the Commencement Date, the amount of such costs to be amortized on a straight-line basis, with interest at the lesser of the interest rate actually paid by Landlord or seven percent (7.0%) per annum, over the asset’s useful life in accordance with generally accepted accounting principles, or (iii) any cost incurred which is not considered annual recurring routine maintenance but maintains the general appearance of the Complex (i.e., painting of the Common Areas or exterior of the Building, replacement of lighting in the Common Areas, maintenance of the parking lot, pavement, sidewalks and/or any stone/tile), all such costs to be amortized on a straight-line basis over the useful life, with interest at the lesser of the interest rate actually paid by Landlord or seven 7.0% per annum. In no event shall the costs of replacing or retrofitting the heating, ventilation and air conditioning (“HVAC”) system, as warranted by Landlord in Section 4.3 of the Lease, be included in Operating Expenses;
10. Any cost or expense related to monitoring, testing, removal, cleaning, abatement or remediation of any “Hazardous Material”, including toxic mold, in or about the Premises or Complex, and including, without limitation, Hazardous Materials in the ground water or soil, except if present as a result of Tenant’s failure to abide by outs obligations under Section 20 of the Lease;
11. Any cost incurred in connection with modifying, removing, upgrading, replacing, repairing or maintaining the Complex’s telecommunication systems;
12. Any cost of any service or items sold or provided to tenants or other occupants for which Landlord or Landlord’s managing agent has been or is entitled to be reimbursed by such tenants or other occupants for such service or has been or is entitled to be reimbursed by insurance or otherwise compensated by parties other than tenants of the Complex to include replacement of any item covered by a warranty;
13. Operating Expenses in connection with services or other benefits which are provided to another tenant or occupant of the Complex and which do not benefit Tenant, including (to the extent it may be applicable) the repair and maintenance of the Common Areas;
14. Any increase of Taxes and assessments due to any change in ownership including, but not limited to, the sale or any other form of full or partial transfer of title of the Complex or any part thereof, or due to the transfer of title of any leases in the Complex, or due to any renovation or new construction in the Complex or related facilities;
F-2