Common use of RENTAL ADJUSTMENT Clause in Contracts

RENTAL ADJUSTMENT. (a) The following terms shall have the following meanings: (i) The term “Expenses” shall mean the actual reasonable cost incurred by Landlord during the applicable calendar year on an accrual basis with respect to the operation, maintenance and repair of the Development, including, without limitation or duplication, (1) the costs incurred for air conditioning; mechanical ventilation; heating; cleaning; rubbish removal; snow removal; general landscaping and ground maintenance; window washing; elevators; xxxxxx and matron services; electric current for common areas; management fees; protection and security service; repairs; maintenance; fire, extended coverage, boiler, sprinkler apparatus, public liability and property damage insurance (including loss of rental income insurance); supplies; wages, salaries, disability benefits, pensions, hospitalization, retirement plans and group insurance respecting service and maintenance employees and management staff (if said employees and/or staff perform services for properties other than the Development, the expenses relating thereto shall be equitably prorated); uniforms and working clothes for such employees and the cleaning thereof; expenses imposed pursuant to any collective bargaining agreement with respect to such employees; payroll, social security, unemployment and other similar taxes with respect to such employees; sales, use and other similar taxes; Landlord’s Michigan Single Business Tax; water rates and sewer rents; the replacement of lighting ballasts and light bulbs and fluorescent tubes in the Building; depreciation of movable equipment and personal property, which is, or should be, capitalized on the books of Landlord, and the cost of movable equipment and personal property, which need not be so capitalized, as well as the cost of maintaining all such movable equipment, and any other costs, charges and expenses which, under generally accepted accounting principles and practices, would be regarded as maintenance and operating expenses, and (2) the cost of any capital improvements made to the Development after the Commencement Date that are intended to reduce other Expenses, or made to the Development by Landlord after the date of this Lease that are required under any governmental law or regulation that was not applicable to the Development at the time it was constructed, such cost or allocable portion thereof to be amortized over the useful life thereof as determined by GAAP, together with interest on the unamortized balance at the Interest Rate or such actual rate as may have been paid by Landlord on funds borrowed for the purpose of constructing such capital improvements, if Landlord borrows funds therefor. Expenses shall not include “Taxes,” depreciation on the Building other than depreciation on standard exterior window coverings provided by Landlord and carpeting in common areas and other than as set forth above; costs of services or repairs and maintenance which are paid for by proceeds of insurance, by other tenants (in a manner other than as provided in this Paragraph 5) or third parties; tenant improvements, real estate brokers’ commissions, interest and capital items other than those referred to in clause (1) above. The Expenses shall be adjusted to equal Landlord’s reasonable estimate of Expenses had the total Building been occupied. In determining Expenses:

RENTAL ADJUSTMENT. (a) The following terms shall have the following meanings: (i) The term “Expenses” shall mean the actual reasonable cost incurred by Landlord during the applicable calendar year on an accrual basis with respect to the operation, maintenance and repair of the Development, including, without limitation or duplication, (1) the costs incurred for air conditioning; mechanical ventilation; heating; cleaning; rubbish removal; snow removal; general landscaping and ground maintenance; window washing; elevators; xxxxxx and matron services; electric current for common areas; management fees; protection and security servicefees (calculated at a rate of five percent of gross receipts); repairs; maintenance; fire, extended coverage, boiler, sprinkler apparatus, public liability and property damage insurance (including loss of rental income insurance); supplies; wages, salaries, disability benefits, pensions, hospitalization, retirement plans salaries and group insurance respecting benefits of service and maintenance employees and management staff (if said employees and/or staff perform services for properties other than the Development, the expenses relating thereto shall be equitably prorated); uniforms and working clothes for such employees and the cleaning thereof; expenses imposed pursuant to any collective bargaining agreement with respect to such employees; payroll, social security, unemployment and other similar taxes with respect to such employees; sales, use and other similar taxes; Landlord’s Michigan Single Business Tax; water rates and sewer rents; the replacement of lighting ballasts and light bulbs and fluorescent tubes in the Building; depreciation of movable equipment and personal property, which is, or should be, capitalized on the books of Landlord, and the cost of movable equipment and personal property, which need not be so capitalized, as well as the cost of maintaining all such movable equipment, and any other costs, charges and expenses which, under generally accepted accounting principles and practices, would be regarded as maintenance and operating expenses, and (2) the cost of any capital improvements made to the Development after the Phase One Commencement Date that are intended to reduce other Expenses, or made to the Development by Landlord after the date of this Lease that are required under any governmental law or regulation that was not applicable to the Development at the time it was constructed, such cost or allocable portion thereof to be amortized over the useful life thereof as determined by GAAP, together with interest on the unamortized balance at the Interest Rate or such actual rate as may have been paid by Landlord on funds borrowed for the purpose of constructing such capital improvements, if Landlord borrows funds therefor. Expenses shall not include “Taxes,” depreciation on the Building other than depreciation on standard exterior window coverings provided by Landlord and carpeting in common areas and other than as set forth above; costs of services or repairs and maintenance which are paid for by proceeds of insurance, by other tenants (in a manner other than as provided in this Paragraph Section 5) or third parties; tenant improvements, real estate brokers’ commissions, interest and capital items other than those referred to in clause (1) above. Notwithstanding the foregoing or anything else to the contrary contained in this Lease, Expenses shall not include costs for security services to be provided by Landlord pursuant to the provisions of this Lease and Tenant shall pay to Landlord the sum of fifty cents per rentable square foot of the Premises per year for security services to be provided pursuant to the provisions of this Lease, which costs shall be paid in the same manner and at the same time as Tenant pays Basic Rental. The Expenses shall be adjusted to equal Landlord’s reasonable estimate of Expenses had the total Building been occupied. In determining Expenses:

RENTAL ADJUSTMENT. (a) The following terms shall have the following meanings: (i) The term “Expenses” shall mean the actual reasonable cost incurred by Landlord during the applicable calendar year on an accrual basis with respect to the operation, maintenance and repair of the Development, including, without limitation or duplication, (1) the costs incurred for air conditioning; mechanical ventilation; heating; cleaning; rubbish removal; snow removal; general landscaping and ground maintenance; window washing; elevators; xxxxxx and matron services; electric current for common areas; management fees; protection and security servicefees (calculated at a rate of five percent of gross receipts); repairs; maintenance; fire, extended coverage, boiler, sprinkler apparatus, public liability and property damage insurance (including loss of rental income insurance); supplies; wages, salaries, disability benefits, pensions, hospitalization, retirement plans salaries and group insurance respecting benefits of service and maintenance employees and management staff (if said employees and/or staff perform services for properties other than the Development, the expenses relating thereto shall be equitably prorated); uniforms and working clothes for such employees and the cleaning thereof; expenses imposed pursuant to any collective bargaining agreement with respect to such employees; payroll, social security, unemployment and other similar taxes with respect to such employees; sales, use and other similar taxes; Landlord’s Michigan Single Business Tax; water rates and sewer rents; the replacement of lighting ballasts and light bulbs and fluorescent tubes in the Building; depreciation of movable equipment and personal property, which is, or should be, capitalized on the books of Landlord, and the cost of movable equipment and personal property, which need not be so capitalized, as well as the cost of maintaining all such movable equipment, and any other costs, charges and expenses which, under generally accepted accounting principles and practices, would be regarded as maintenance and operating expenses, and (2) the cost of any capital improvements made to the Development after the Commencement Date that are intended to reduce other Expenses, or made to the Development by Landlord after the date of this Lease that are required under any governmental law or regulation that was not applicable to the Development at the time it was constructed, such cost or allocable portion thereof to be amortized over the useful life thereof as determined by GAAP, together with interest on the unamortized balance at the Interest Rate or such actual rate as may have been paid by Landlord on funds borrowed for the purpose of constructing such capital improvements, if Landlord borrows funds therefor. Expenses shall not include “Taxes,” depreciation on the Building other than depreciation on standard exterior window coverings provided by Landlord and carpeting in common areas and other than as set forth above; costs of services or repairs and maintenance which are paid for by proceeds of insurance, by other tenants (in a manner other than as provided in this Paragraph Section 5) or third parties; tenant improvements, real estate brokers’ commissions, interest and capital items other than those referred to in clause (1) above. The Expenses shall be adjusted to equal Landlord’s reasonable estimate of Expenses had the total Building been occupied. In determining Expenses:

RENTAL ADJUSTMENT. (a) The following terms shall have the following meanings: (i) The term “Expenses” shall mean mean, subject to the limitations and exclusions set forth herein, the actual reasonable cost incurred by Landlord during the applicable calendar year on an accrual basis with respect to the operation, maintenance and repair of the DevelopmentBuilding, including, without limitation or duplication, (1) the costs incurred for air conditioning; mechanical ventilation; heating; cleaning; rubbish removal; snow removal; general landscaping and ground maintenance; window washing; elevators; xxxxxx and matron services; electric current for common areasCommon Areas; management fees; protection and security servicefees (calculated at a rate of [***] of gross receipts); repairs; maintenance; fire, extended coverage, boiler, sprinkler apparatus, public liability and property damage insurance (including loss of rental income insurance); supplies; wages, salaries, disability benefits, pensions, hospitalization, retirement plans salaries and group insurance respecting benefits of service and maintenance employees and management staff (if said employees and/or staff perform services for properties other than the DevelopmentBuilding, the expenses relating thereto shall be equitably prorated); uniforms and working clothes for such employees and the cleaning thereof; expenses imposed pursuant to any collective bargaining agreement with respect to such employees; payroll, social security, unemployment and other similar taxes with respect to such employees; sales, use and other similar taxes; Landlord’s Michigan Single Business Tax; water rates and sewer rents; the replacement of lighting ballasts and light bulbs and fluorescent tubes in the Building; depreciation of movable equipment and personal property, which is, or should be, capitalized on the books of Landlord, and the cost of movable equipment and personal property, which need not be so capitalized, as well as the cost of maintaining all such movable equipment, and any other costs, charges and expenses which, under generally accepted accounting principles and practices, would be regarded as maintenance and operating expenses, and (2) the cost of any capital improvements made to the Development Building after the Commencement Date that are intended to reduce other Expenses, or made to the Development Building by Landlord after the date of this Lease that are required under any governmental law law, rule, regulation or regulation ordinance (collectively, “Law”) that was not applicable to the Development Building at the time it was constructedconstructed (the “Permitted Capital Improvements”), such cost or allocable portion thereof to be amortized over the useful life thereof as determined by GAAP, together with interest on the unamortized balance at the Interest Rate or such actual rate as may have been paid by Landlord on funds borrowed for the purpose of constructing such capital improvements, if Landlord borrows funds therefor. Expenses shall not include “Taxes,” depreciation on the Building other than depreciation on standard exterior window coverings provided by Landlord and carpeting in common areas and other than as set forth above; costs of services or repairs and maintenance which are paid for by proceeds of insurance, by other tenants (in a manner other than as provided in this Paragraph Section 5) or third parties; tenant improvements, real estate brokers’ commissions, interest and capital items other than those referred to in clause (1) above. The Notwithstanding the foregoing or anything else to the contrary contained in this Lease, Expenses shall not include costs for security services provided by Landlord (whether pursuant to the provisions of this Lease or otherwise) (the “Security Costs”) and Tenant shall pay to Landlord the sum of fifty cents ($.50) per rentable square foot of the Premises per year (which per rentable square foot fee shall increase by 3% on each anniversary of the Commencement Date) for security services to be provided in accordance with Exhibit “G” hereof, which costs shall be paid in the same manner and at the same time as Tenant pays Basic Rental. If the Building is less than 95% occupied, the Expenses which vary with occupancy shall be adjusted using commercially reasonable property management practices to equal Landlord’s reasonable estimate of Expenses which Landlord would have incurred had the total Building been 95% occupied. In determining Expenses:

RENTAL ADJUSTMENT. (a) The following terms shall have the following meanings: (i) The term “Expenses” shall mean the actual reasonable cost incurred by Landlord during the applicable calendar year on an accrual basis with respect to the operation, maintenance and repair of the Development, including, without limitation or duplication, (1) the costs incurred for air conditioning; mechanical ventilation; heating; cleaning; rubbish removal; snow removal; general landscaping and ground maintenance; window washing; elevators; xxxxxx and matron services; electric current for common areas; management fees; protection and security servicefees (calculated at a rate of five percent (5%) of gross receipts); repairs; maintenance; fire, extended coverage, boiler, sprinkler apparatus, public liability and property damage insurance (including loss of rental income insurance); supplies; wages, salaries, disability benefits, pensions, hospitalization, retirement plans salaries and group insurance respecting benefits of service and maintenance employees and management staff (if said employees and/or staff perform services for properties other than the Development, the expenses relating thereto shall be equitably prorated); uniforms and working clothes for such employees and the cleaning thereof; expenses imposed pursuant to any collective bargaining agreement with respect to such employees; payroll, social security, unemployment and other similar taxes with respect to such employees; sales, use and other similar taxes; Landlord’s Michigan Single Business Tax; water rates and sewer rents; the replacement of lighting ballasts and light bulbs and fluorescent tubes in the Building; depreciation of movable equipment and personal property, which is, or should be, capitalized on the books of Landlord, and the cost of movable equipment and personal property, which need not be so capitalized, as well as the cost of maintaining all such movable equipment, and any other costs, charges and expenses which, under generally accepted accounting principles and practices, would be regarded as maintenance and operating expenses, and (2) the cost of any capital improvements made to the Development after the Commencement Date that are intended to reduce other Expenses, or made to the Development by Landlord after the date of this Lease that are required under any governmental law or regulation that was not applicable to the Development at the time it was constructed, such cost or allocable portion thereof to be amortized over the useful life thereof as determined by GAAP, together with interest on the unamortized balance at the Interest Rate or such actual rate as may have been paid by Landlord on funds borrowed for the purpose of constructing such capital improvements, if Landlord borrows funds therefor. Expenses shall not include “Taxes,” depreciation on the Building other than depreciation on standard exterior window coverings provided by Landlord and carpeting in common areas and other than as set forth above; costs of services or repairs and maintenance which are paid for by proceeds of insurance, by other tenants (in a manner other than as provided in this Paragraph Section 5) or third parties; tenant improvements, real estate brokers’ commissions, interest and capital items other than those referred to in clause (1) above. Notwithstanding the foregoing or anything else to the contrary contained in this Lease, Expenses shall not include costs for security services to be provided by Landlord pursuant to the provisions of this Lease and Tenant shall pay to Landlord the sum of fifty cents ($.50) per rentable square foot of the Premises per year for security services to be provided pursuant to the provisions of this Lease, which costs shall be paid in the same manner and at the same time as Tenant pays Basic Rental. The Expenses shall be adjusted to equal Landlord’s reasonable estimate of Expenses had the total Building been occupied. In determining Expenses:

RENTAL ADJUSTMENT. (a) The following terms shall have the following meanings: (i) The term “Expenses” shall mean mean, subject to the limitations and exclusions set forth herein, the actual reasonable cost incurred by Landlord during the applicable calendar year on an accrual basis with respect to the operation, maintenance and repair of the Development, including, without limitation or duplication, (1) the costs incurred for air conditioning; mechanical ventilation; heating; cleaning; rubbish removal; snow removal; general landscaping and ground maintenance; window washing; elevators; xxxxxx and matron services; electric current for common areas; management fees; protection and security servicefees (calculated at a rate of [***] of gross receipts); repairs; maintenance; fire, extended coverage, boiler, sprinkler apparatus, public liability and property damage insurance (including loss of rental income insurance); supplies; wages, salaries, disability benefits, pensions, hospitalization, retirement plans salaries and group insurance respecting benefits of service and maintenance employees and management staff (if said employees and/or staff perform services for properties other than the Development, the expenses relating thereto shall be equitably prorated); uniforms and working clothes for such employees and the cleaning thereof; expenses imposed pursuant to any collective bargaining agreement with respect to such employees; payroll, social security, unemployment and other similar taxes with respect to such employees; sales, use and other similar taxes; Landlord’s Michigan Single Business Tax; water rates and sewer rents; the replacement of lighting ballasts and light bulbs and fluorescent tubes in the Building; depreciation of movable equipment and personal property, which is, or should be, capitalized on the books of Landlord, and the cost of movable equipment and personal property, which need not be so capitalized, as well as the cost of maintaining all such movable equipment, and any other costs, charges and expenses which, under generally accepted accounting principles and practices, would be regarded as maintenance and operating expenses, and (2) the cost of any capital improvements made to the Development after the Commencement Date that are intended to reduce other Expenses, or made to the Development by Landlord after the date of this Lease that are required under any governmental law law, rule, regulation or regulation ordinance (collectively, “Law”) that was not applicable to the Development at the time it was constructedconstructed (the “Permitted Capital Improvements”), such cost or allocable portion thereof to be amortized over the useful life thereof as determined by GAAP, together with interest on the unamortized balance at the Interest Rate or such actual rate as may have been paid by Landlord on funds borrowed for the purpose of constructing such capital improvements, if Landlord borrows funds therefor. Expenses shall not include “Taxes,” depreciation on the Building other than depreciation on standard exterior window coverings provided by Landlord and carpeting in common areas and other than as set forth above; costs of services or repairs and maintenance which are paid for by proceeds of insurance, by other tenants (in a manner other than as provided in this Paragraph Section 5) or third parties; tenant improvements, real estate brokers’ commissions, interest and capital items other than those referred to in clause (1) above. The Notwithstanding the foregoing or anything else to the contrary contained in this Lease, Expenses shall not include costs for security services provided by Landlord (whether pursuant to the provisions of this Lease or otherwise) (the “Security Costs”) and Tenant shall pay to Landlord the sum of fifty cents ($.50) per rentable square foot of the Premises per year (which per rentable square foot fee shall increase by 3% on each anniversary of the Commencement Date) for security services to be provided in accordance with Exhibit G hereof, which costs shall be paid in the same manner and at the same time as Tenant pays Basic Rental. If the Building is less than 95% occupied, the Expenses which vary with occupancy shall be adjusted using commercially reasonable property management practices to equal Landlord’s reasonable estimate of Expenses which Landlord would have incurred had the total Building been 95% occupied. In determining Expenses:

RENTAL ADJUSTMENT. (a) The following terms increases in operating Expemses: Tenant shall have pay to Landlord as additional rent during the following meanings: term of this Lease Thirteen point Five Five percent (i13.55%) The term “Expenses” shall mean of the actual reasonable cost amount by which the annual Operating Expenses of the office Building exceed the operating Expenses incurred by Landlord during the applicable calendar year on an accrual basis with respect 1999 (the "Base Year"). As used herein, the term "Operating Expenses" shall include all direct costs of operation, maintenance, and management of the Building that are properly allocable to the operationoffice Building and which are determined by generally accepted accounting practices. By way of.illustration, maintenance but not limitation, Operating Expenses shall include the cost or charges for the following items: heat, light, water, power and repair of the Developmentsteam, environmental surcharges imposed by any governmental entity, waste disposal, janitorial services, window cleaning, air conditioning, materials and supplies, equipment and tools, service agreements on equipment, insurance, licenses, permits and inspections, wages and salaries, employee benefits and payroll taxes, accounting and legal expenses, management fees, landscaping and exterior maintenance, depreciation on personal property including, without limitation or duplicationlimitation, (1) the costs incurred for air conditioning; mechanical ventilation; heating; cleaning; rubbish removal; snow removal; general landscaping and ground maintenance; window washing; elevators; xxxxxx and matron services; electric current for common areas; management fees; protection and security service; repairs; maintenance; fire, extended coverage, boiler, sprinkler apparatus, public liability and property damage insurance (including loss of rental income insurance); supplies; wages, salaries, disability benefits, pensions, hospitalization, retirement plans and group insurance respecting service and maintenance employees and management staff (if said employees and/or staff perform services for properties other than the Development, the expenses relating thereto shall be equitably prorated); uniforms and working clothes for such employees and the cleaning thereof; expenses imposed pursuant to any collective bargaining agreement with respect to such employees; payroll, social security, unemployment and other similar taxes with respect to such employees; sales, use and other similar taxes; Landlord’s Michigan Single Business Tax; water rates and sewer rents; the replacement of lighting ballasts and light bulbs and fluorescent tubes in the Building; depreciation of movable equipment and personal property, which is, or should be, capitalized on the books of Landlord, and the cost of movable equipment and personal property, which need not be so capitalized, as well as the cost of maintaining all such movable equipment, and any other costs, charges and expenses which, under generally accepted accounting principles and practices, would be regarded as maintenance and operating expenses, and (2) the cost of any capital improvements made to the Development after the Commencement Date that are intended to reduce other Expenses, or made to the Development by Landlord after the date of this Lease that are required under any governmental law or regulation that was not applicable to the Development at the time it was constructed, such cost or allocable portion thereof to be amortized over the useful life thereof as determined by GAAP, together with interest on the unamortized balance at the Interest Rate or such actual rate as may have been paid by Landlord on funds borrowed for the purpose of constructing such capital improvements, if Landlord borrows funds therefor. Expenses shall not include “Taxes,” depreciation on the Building other than depreciation on standard exterior window coverings draperies provided by Landlord and carpeting in public corridors and common areas areas, the cost of contesting the validity or applicability of any governmental enactments which may affect operating expenses, and other than as set forth above; the reasonably amortized costs of services or repairs capital improvements required as a result of government orders rules and maintenance which are paid for by proceeds regulations. For the purposes of insurancethis Lease, by other tenants Operating Expenses shall not include taxes covered under sub-paragraph (in a manner other than as provided in this Paragraph 5b) or third parties; tenant improvements, real estate brokers’ commissionsbelow, interest and expense, leasing comissions, depreciation on the Building itself, or the cost of capital items other expenditures, provided, however, that in the event Landlord makes capital improvements which have the effect of reducing operating expenses, Landlord may amortize its investment in said improvements as an operating expense in accordance with standard accounting practices provided that such amortization is not at a rate greater than those referred to the anticipated savings in clause the operating expenses. In the event that less than ninety-five percent (195%) above. The Expenses of the office Building is occupied during any calendar year, all Operating expenses on the statements provided by Landlord shall be adjusted for each calendar year to equal Landlord’s 's reasonable estimate of operating Expenses had ninety-five percent (95%) of the total rentable area of the office Building been occupied. In determining Expenses:Statements of operating Expenses provided by Landlord shall- be final and binding upon both Landlord and Tenant. Landlord and Tenant acknowledge that certain of the costs and charges of operation, maintenance, and management of the Building and certain of the costs and charges are to be allocated among the Office Building, the retail building and the parking garage or parking areas. The determination of such costs and charges and their allocation shall be in accordance with generally accepted accounting principles, consistently applied. *See attached Addendum item #13.