Draft lease agreement, August 1997

NYC 9/11 Public Portal Document

(3) The annual amortization (on a straight-line basis over a depreciable life in accordance with generally accepted accounting principles consistently applied, with interest calculated at an annual rate of two (2) percentage points above the then current Base Rate at the time of Landlord’s having made such expenditure) of expenditures incurred by Landlord after the Commencement Date for any equipment, device or capital improvement which is required by law or insurance requirements or which is reasonably designed as a cost-saving measure (and the aimual amortization in respect of which bears a reasonable relationship to the amount of actual savings) in the operation or maintenance of the Real Property or the Building equipment (including, without limitation, the Building electrical equipment (including, without limitation, the Building electrical transformers). The term “Base Rate” as used in the Lease shall mean the rate of interest publicly announced from time to time by Citibank. N.A., or its successor, as its “base rate" (or such other term as may be used by Citibank, N.A., from time to time, for the rate presently referred to as its “base rate”).

(4) Management fees provided that said management fee shall be no higher than that which is ordinary and customary for first class office buildings in Manhattan in the real estate management industry in Manhattan.

(5) The costs of electricity and all other utiliti^Jbrj^ areas of the Building, including taxes thereon.

(6) “All Risk” fire insurance, s^udiagrent^ifanoer''*^

(7) Business Improvement District assessment (“BID").

n. Items Excluded from Operating Expenses I (1) The cost of correcting defects in the construction of the Building or in the Building equipment, except that conditions (not occasioned by construction defects) resulting from ordinary wear and tear shall not be deemed defects for the purpose of this category;

(2) Cost of any repair made by Landlord to remedy damage caused by or resulting from the negligence of Landlord, its agents, servants or enqiloyees;

(3) Labor costs in respect to executives of Landlord not assigned to the Building as part of the normal Building operation staff;

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NYC-WTC_000170306