Definition of Net Operating Income Addition


Net Operating Income Addition means, at any date in time a number equal to the annual Base Rent and operating expense, tax and insurance reimbursements (CAM) actually received under any Project Lease entered into after the Effective Date, less the sum of all of the following cash operating expenses: (a) three and one half percent (3.5%) of such Base Rent and CAM, as an agreed Property Management Fee, (b) all actual expenses required to operate the Property (c) an agreed replacement reserve equal to $.20 per square foot of area leased pursuant to such Project Lease and (d) any other reserves maintained by the Company, any and all as determined on a per square foot per annum basis and as pertain to the area leased pursuant to such Project Lease. Net Operating Income Addition for a given Project Lease shall be calculated in accordance with the foregoing sentence and included in Project Net Operating Income on the first date upon which the tenant under such Project Lease is in occupancy with a commenced obligation to pay Base Rent and Base Rent has actually been received.
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