Common use of Definition of Operating Expenses Clause in Contracts

Definition of Operating Expenses. The term "operating expenses" includes all expenses incurred by Lessor with respect to the maintenance and operation of the building of which the leased premises are a part, including, but not limited to, the following: maintenance, repair and replacement costs; security; management fees, wages and benefits payable to employees of Lessor whose duties are directly connected with the operation and maintenance of the building; all services, utilities, supplies, repairs, replacements, or other expenses for maintaining and operating the common parking and plaza areas; the cost, including interest, amortized over its useful life, of any capital improvement made to the building by Lessor after the date of this Lease which is required under any governmental law or regulation that was not applicable to the building at the time it was constructed; the cost, including interest, amortized over its useful life, of installation of any device or other equipment which improves the operating efficiency of any system within the leased premises and thereby reduces operating expenses; all other expenses which would generally be regarded as operating and maintenance expenses which would reasonably be amortized over a period not to exceed five years; all real property taxes and installments of special assessments, including dues and assessments by means of deed restrictions and/or owners' associations which accrue against the building of which the leased premises are a part during the term of this Lease; and all insurance premiums Lessor is required to pay or deems necessary to pay, including public liability insurance, with respect to the building. The term operating expenses does not include the following: repairs, restoration or other work occasioned by fire, wind, the elements of other casualty; income and franchise taxes of Lessor; expenses incurred in leasing to or procuring of lessees, leasing commissions, advertising expenses and expenses for the renovating of space for new, leasing commissions, advertising expenses and expenses for the renovating of space for new lessees; interest or principal payments on any mortgage or other indebtedness of Lessor; compensation paid to any employee or Lessor above the grade of property manager; any depreciation allowance or expense; or operating expenses assumed hereunder by Lessee.

Definition of Operating Expenses. The term "operating expenses" includes all expenses incurred by Lessor Landlord with respect to the maintenance and operation of the building of which the leased premises are a partBuilding, including, but not limited to, the following: maintenance, repair and replacement costs; securityelectricity, fuel, water, sewer, gas and other common Building utility charges; equipment used for maintenance and operation of the Building; operational expenses; exterior window washing and janitorial services; trash and snow removal; landscaping and pest control; management fees, wages and benefits payable to employees of Lessor Landlord whose duties are directly connected with the operation and maintenance of the buildingBuilding; all services, utilities, supplies, repairs, replacements, replacements or other expenses for maintaining and operating the common Building or project including parking and plaza common areas; the cost, including interest, amortized over its useful life, of any capital improvement improvements made to the building by Lessor after the date of this Lease Building which is are required under any governmental law or regulation that was not applicable to the building Building at the time it was constructed; the cost, including interest, amortized over its useful life, of installation of any device or other equipment which improves the operating efficiency of any system within the leased premises Premises and thereby reduces operating expenses; all other expenses which would generally be regarded as operating operating, repair, replacement and maintenance expenses which would reasonably be amortized over a period not to exceed five yearsexpenses; all real property taxes and installments of special assessments, including dues and assessments by means of deed restrictions and/or owners' associations which accrue against the building of which the leased premises are a part Building during the term of this LeaseLease and legal fees incurred in connection with actions to reduce the same; and all insurance premiums Lessor Landlord is required to pay or deems necessary to pay, including fire and extended coverage, and rent loss and public liability insurance, with respect to the buildingBuilding. The term Notwithstanding the foregoing, operating expenses does shall not include any expenditure which must be capitalized for federal income tax purposes, except that operating expenses shall include the following: repairsamortization of any such capital expenditures (except capital expenditures for improvements made to the Building without the consent of Tenant, or for restoration or other work occasioned repair of damage to the Building caused by firecasualty) on a straight-line basis over the reasonably estimated useful life, windat an amortization rate equal to the rate of Treasury Securities of comparable term, the elements of other casualty; income and franchise taxes of Lessor; expenses incurred in leasing to or procuring of lesseesplus two percent (2%). Further, leasing commissions, advertising expenses and expenses for the renovating of space for new, leasing commissions, advertising expenses and expenses for the renovating of space for new lessees; interest or principal payments on any mortgage or other indebtedness of Lessor; compensation paid to any employee or Lessor above the grade of property manager; any depreciation allowance or expense; or operating expenses assumed hereunder by Lessee.shall not include:

Definition of Operating Expenses. The term "operating expensesOperating Expenses" -------------------------------- includes all expenses incurred by Lessor by, Landlord with respect to the maintenance and operation of the building of which the leased premises are a partBuilding and all Landlord's personal property used in connection therewith, including, but not limited to, the following: (1) maintenance, repair and replacement costs; (2) electricity, fuel, water, sewer, gas and other utility charges; (3) security, window washing, janitorial services, trash and snow removal; (4) landscaping and pest control; (5) management fees, wages and fringe benefits payable to employees of Lessor Landlord, or of any management agent of Landlord whose duties are directly connected with the operation and maintenance of the buildingBuilding; (6) all services, utilities, supplies, repairs, replacements, replacements or other expenses for maintaining and operating the Building or Project including parking or common parking and plaza areas; (7) the cost, including interest, amortized over its useful life, of any capital improvement made to the building Building by Lessor Landlord after the date of this Lease Agreement which is required under any governmental law or regulation that was not applicable to the building Building at the time it was constructed; (8) the cost, including interest, amortized over its useful life, of installation of any device or other equipment which improves designed to improve the operating efficiency of any system within the leased premises and thereby reduces Building, but limited to the amount of any actual operating expensesefficiencies; (9) all other expenses which would generally be regarded as operating and maintenance expenses which would reasonably be amortized over a period not to exceed five years; (10) all real property and personal property taxes and installments of special assessments, including dues and assessments by means of deed restrictions and/or owners' associations which accrue against the building of which the leased premises are a part Building during the term Term of this LeaseAgreement and federal, state and local taxes or charges assessed against the Building, whether special, general or extraordinary (except for Income or franchise taxes applicable against Landlord); and (11) all insurance premiums Lessor Landlord is required to pay or deems necessary to pay, including including, without limitation, public liability insurance, with respect to the buildingBuilding; (12) all Building services costs, and (13) Landlord's reasonable allocation of a portion of such costs, expenses, taxes, assessments and premiums which relate to the Project as a whole and are not specifically allocated to any building within the Project. The term operating expenses Operating Expenses does not include the following: (1) repairs, restoration or other work occasioned by fire, wind, the elements of or other casualty; (2) income and franchise taxes of LessorLandlord; (3) expenses incurred in leasing to or procuring of lessees, leasing commissions, advertising expenses and expenses for the renovating of space for newtenants, leasing commissions, advertising expenses and expenses for the renovating of space for new lesseestenants; (4) interest or principal payments on any mortgage or other indebtedness of LessorLandlord; (5) compensation paid to any employee or Lessor of Landlord above the grade of property manager; (6) any depreciation allowance or expenseexpenses; or (7) operating expenses assumed hereunder by Lesseewhich are the responsibility of Tenant or any other Tenant in the building.

Definition of Operating Expenses. The term As used in this Lease, -------------------------------- "operating expensesOperating Expenses" includes shall consist of all expenses direct costs incurred by Lessor with respect Landlord during the Term for the operation, management, maintenance and repair (to the maintenance and operation extent that Landlord has the obligation under this Lease to maintain or repair such) of the building Building, the Parking Structure, the Outside Areas, and other portions of which the leased premises are Premises, including the following costs by way of illustration, but not limitation: the percentage of charges assessed against the Premises pursuant to any covenants, conditions and restrictions, reciprocal easement agreements or similar restrictions and agreement now or hereafter affecting the Premises; Real Property Taxes (as defined below) and any taxes and assessments hereafter imposed in lieu thereof; rent taxes, gross receipt taxes (whether assessed against Landlord or assessed against Tenant and paid by Landlord, or both) and water and sewer charges; accounting, legal and other consulting fees; any transportation or traffic fee, assessments, tax, tariff, charge, or other payment imposed on Landlord by any governmental authority having jurisdiction relating to the Premises, or imposed by Landlord in connection with any transportation or traffic plan or program relating to the Premises as mandated by any governmental authority having jurisdiction; premiums for commercial liability insurance covering the Premises; premiums for "Special Form" or similar property insurance (and, at Landlord's option, flood and earthquake insurance) on the Building, the Parking Structure and other improvements within the Premises; premiums for insurance against loss of rents for a partperiod of twelve (12) months from the date of the loss; premiums for any other insurance Landlord deems reasonably necessary; deductibles paid under any insurance policies maintained by Landlord; security costs; labor costs; costs of utilities and utilities surcharges; costs levied, assessed, or imposed by, or at the direction of, or resulting from statutes or regulations or interpretations thereof, promulgated by any federal, state, regional, municipal or local government authority in connection with the use or occupancy of the Premises; the cost (amortized over such reasonable period as Landlord shall determine together with interest at the maximum rate allowed by law on the unamortized balance) of any capital improvements, repairs or replacements made to the Building, the Parking Structure, the Outside Areas or other improvements within the Premises by Landlord (to the extent that Landlord has the obligation under this Lease to make such improvements, repairs or replacements) or replacement of any equipment in the Building, Parking Structure or Outside Areas (to the extent that Landlord has the obligation under this Lease to replace such equipment) for any reason whatsoever, including, but not limited towithout limitation, capital improvements, repairs or replacements made to the Building, the following: Parking Structure the Outside Areas or other improvements within the Premises (A) needed to operate the same at the same quality levels as prior to replacement, (B) required by revisions to or governmental interpretations of any applicable building codes or other applicable laws, orders, regulations or ordinances, or (C) made by Landlord to reduce Operating Expenses; costs incurred in the management of the Premises [including supplies, wages and salaries of employees used in the management, operation and maintenance of the Premises, payroll expenses and payroll taxes and similar governmental charges with respect thereto, and an annual property management fee in an amount equal to no more than three percent (3%) of the total Monthly Base Rent payable by Tenant under this Lease for the Expense Year (hereafter defined in Subparagraph 6(f)) in question]; waste disposal costs; costs of snow and ice removal; costs of supplies, materials, equipment and tools (including rental costs incurred in the repair and maintenance of the Building, the Parking Structure, the Outside Areas or other improvements within the Premises); costs and expenses of gardening and landscaping; maintenance of signs (other than signs of Tenant); maintenance, repair and replacement costsof asphalt paving, bumpers, striping, light bulbs, light standards, guard and directional signs and lighting systems, perimeter walls, retaining walls, sidewalks, planters, landscaping and sprinkling in planting areas; security; management fees, wages and benefits payable personal property taxes levied on or attributable to employees of Lessor whose duties are directly connected personal property used in connection with the operation and maintenance of the building; all services, utilities, supplies, repairs, replacements, or other expenses for maintaining and operating the common parking and plaza areas; the cost, including interest, amortized over its useful life, of any capital improvement made to the building by Lessor after the date of this Lease which is required under any governmental law or regulation that was not applicable to the building at the time it was constructed; the cost, including interest, amortized over its useful life, of installation of any device or other equipment which improves the operating efficiency of any system within the leased premises and thereby reduces operating expenses; all other expenses which would generally be regarded as operating and maintenance expenses which would reasonably be amortized over a period not to exceed five years; all real property taxes and installments of special assessments, including dues and assessments by means of deed restrictions and/or owners' associations which accrue against the building of which the leased premises are a part during the term of this Lease; and all insurance premiums Lessor is required to pay or deems necessary to pay, including public liability insurance, with respect to the building. The term operating expenses does not include the following: repairs, restoration or other work occasioned by fire, wind, the elements of other casualty; income and franchise taxes of Lessor; expenses incurred in leasing to or procuring of lessees, leasing commissions, advertising expenses and expenses for the renovating of space for new, leasing commissions, advertising expenses and expenses for the renovating of space for new lessees; interest or principal payments on any mortgage or other indebtedness of Lessor; compensation paid to any employee or Lessor above the grade of property manager; any depreciation allowance or expense; or operating expenses assumed hereunder by LesseePremises.

Definition of Operating Expenses. The term "operating expensesOperating Expenses" includes all shall be defined as those reasonable expenses incurred by Lessor Landlord with respect to the maintenance and operation of the building of which the leased premises are a partrepair, includingalteration, but not limited toimprovement, the following: maintenancereplacement, repair and replacement costs; security; operation, management fees, wages and benefits payable to employees of Lessor whose duties are directly connected with the operation and maintenance of the Premises, the Building (including any vacant space and space leased to other tenants in the Building), the Common Areas and the Parking Facilities, in accordance with accepted principles of sound accounting practice as applied to the operation, management, maintenance and security of a first-class office building, which costs shall include, without limitation, utilities (except sub-metered or allocated utility charges billed separately to any tenant); elevators; plumbing; electrical; ventilating; heating; air-conditioning; roof; exterior walls; floor slabs; waste and refuse disposal; water and sewer charges; repair and maintenance; landscaping services; costs of janitorial, window washing, security and other services and maintenance contracts therefor; supplies, materials, equipment and tools; compensation and all fringe benefits, worker's compensation insurance premiums and payroll taxes paid to, for, or with respect to, all persons engaged in the operating, maintaining, or cleaning of the Premises, the Building, the Common Areas and the Parking Facilities; compliance with all environmental laws or laws relating to "Hazardous Substances" (as defined below) or any directive, regulation, order or judgment pursuant thereto; glass replacement; maintenance of ceiling light-fixtures and replacement of light bulbs and tubes therefor; management fees at reasonable rates, not to exceed 5% of gross revenues, consistent with the type of occupancy and the service rendered (applicable whether the Building is managed by Landlord or an affiliate of Landlord, or managed for Landlord by a property management company); amortization or rental of personal property used in maintenance or repair; all servicescosts required by a governmental entity for energy conservation, utilities, supplies, repairs, replacements, life safety or other expenses purposes or made by Landlord to reduce operating expenses; insurance, including fire and extended coverage, all risk public liability and property damage, rental abatement insurance (including one year's Basic Rent and property taxes for maintaining all tenants in the Building), war risk insurance, earthquake insurance and operating such other insurance as may otherwise be required by the common parking and plaza areasfirst mortgagee of the Building or by Landlord in the exercise of its discretion; the cost, including interest, amortized over its useful life, cost of any capital improvement improvements made to the building by Lessor Building after completion of its construction as a labor-saving device or to effect other economies in the operation or maintenance of the Building, or made to the Building after the date of this Lease which is lease that are required under any governmental law or regulation that was not applicable to the building Building at the time it was constructed; that permits for the costconstruction thereof were obtained, including interest, amortized over its useful life, of installation of any device or other equipment which improves the operating efficiency of any system within the leased premises and thereby reduces operating expenses; all other expenses which would generally be regarded as operating and maintenance expenses which would reasonably such costs to be amortized over such reasonable period as Landlord shall determine, together with interest on the unamortized balance at a period not to exceed five yearsmarket rate; all real property taxes costs and installments upkeep of special assessmentsthe Common Areas, including dues loading platforms, washrooms, lounges, shelters and assessments other facilities available for the common use of tenants, employees, invitees and the public; gross receipts taxes (whether assessed against Landlord or assessed against Tenant, and collected by means of deed restrictions and/or owners' associations which accrue against the building of which the leased premises are a part during the term of this LeaseLandlord, or both); "property taxes" as hereinafter defined, and all insurance premiums Lessor is required to pay or deems necessary to pay, including public liability insurance, with respect other charges directly related to the building. The term operating expenses does not include operation and maintenance of the following: repairs, restoration or other work occasioned by fire, windPremises, the elements Building and the Parking Facilities, but excluding the cost of other casualty; income and franchise taxes constructing any tenant improvements initially. Any of Lessor; expenses incurred the services which may be included in leasing to the computation of the Operating Expenses may be performed by subsidiaries or procuring affiliates of lesseesLandlord, leasing commissions, advertising expenses and expenses provided that the contracts for the renovating performance of space for new, leasing commissions, advertising expenses such services shall be competitive with similar contracts and expenses transactions with unaffiliated entities for the renovating performance of space for new lessees; interest or principal payments on any mortgage or other indebtedness of Lessor; compensation paid to any employee or Lessor above such services in comparable buildings within the grade of property manager; any depreciation allowance or expense; or operating expenses assumed hereunder by Lesseegovernmental jurisdiction wherein the Building is located.

Definition of Operating Expenses. The term "operating expenses" includes all Operating Expense shall include, without limiting the generality of the foregoing, expenses incurred by Lessor associated Tenant’s proportionate share of Common Area expenses within the Property as provided in Sections 5.01, 6.01, 7.02, 8.02, 12.04, 14.04, and Article XV, and shall include real estate taxes; the cost of personnel or fees paid to persons or entities, including those affiliated with respect Landlord, to provide maintenance, repair, janitorial services, gardening, landscaping, resurfacing, repaving, painting, lighting, sweeping, cleaning, pest and sanitary control, trash removal, and fire protection; the amounts paid for heating, air conditioning, and providing electricity and water and sewer provided to the maintenance and operation of Property; administrative expenses related to the building of which the leased premises are a part, including, but not limited to, the following: maintenance, repair and replacement costsProperty ; security; management fees, wages and benefits payable to employees of Lessor whose duties are directly connected with the operation and maintenance of the building; all services, utilities, supplies, repairs, replacements, or other expenses any costs incurred for maintaining and operating the common parking and plaza areas; the cost, including interest, amortized over its useful life, of any capital improvement made improvements or structural repairs to the building by Lessor after the date of this Lease Building and Common Areas, which is required under any governmental law or regulation that was not applicable to the building at the time it was constructed; the cost, including interest, amortized over its useful life, of installation of any device or other equipment which improves the operating efficiency of any system within the leased premises and thereby reduces operating expenses; all other expenses which would generally be regarded as operating and maintenance expenses which would reasonably costs shall be amortized over a period the useful life of the applicable capital improvements or structural repairs; the cost of accounting services necessary to compute the rent and charges payable by tenants, market rate management fee paid to Landlord’s affiliate or third-party management companies; fees for legal, accounting, inspection and consulting services pertaining to the Property; the cost of guards and other protection services pertaining to the Building and Common Areas; and the amount paid for premiums for all insurance procured by Landlord to insure the Property as may be required or permitted under this Lease (including, without limitation, business interruption insurance, and such insurance as may be required by the holder of such mortgage or deed of trust); government-imposed parking charges or costs, and costs to comply with governmentally-imposed safety and access requirements. Notwithstanding the foregoing, Operating Expenses shall not to exceed five years; all real property taxes and installments include the costs of special assessmentsservices rendered to tenants (including Tenant) for which a special or separate charge is made, including dues and assessments any costs of preparation of space for new tenants of the Property, any costs borne directly by means Tenant under this Lease, leasing commissions, depreciation, or debt service payments made to a mortgagee. If less than 95% of deed restrictions and/or owners' associations which accrue against the building total rentable area of which the leased premises are a part Property is occupied during the Base Year or any calendar year during the term of this Lease; and all insurance premiums Lessor is required , then Operating Expenses shall be adjusted to pay or deems necessary to pay, including public liability insurance, with respect to equal Landlord’s reasonable estimate of Operating Expenses had such percentage of the building. The term operating expenses does not include total rentable area of the following: repairs, restoration or other work occasioned by fire, wind, the elements of other casualty; income and franchise taxes of Lessor; expenses incurred in leasing to or procuring of lessees, leasing commissions, advertising expenses and expenses for the renovating of space for new, leasing commissions, advertising expenses and expenses for the renovating of space for new lessees; interest or principal payments on any mortgage or other indebtedness of Lessor; compensation paid to any employee or Lessor above the grade of property manager; any depreciation allowance or expense; or operating expenses assumed hereunder by LesseeProperty been occupied.

Definition of Operating Expenses. The term "operating expensesOperating Expenses" includes all means the total costs and expenses incurred by Lessor with respect to Landlord in the maintenance ownership, operation, maintenance, repair and operation management of the building of which Common Area and the leased premises are a partBuilding, including, but not limited to, repair, maintenance, utility costs and landscaping of the following: Common Area, including, but not limited to, any and all costs of maintenance, repair and replacement costsof all driveways (including, sweeping, striping and slurry coating), loading and unloading areas, trash areas, outdoor lighting, sidewalks, walkways, snow removal, landscaping (including, without limitation, tree trimming), irrigation systems, monument signs, fences and gates, and other costs which are allocable to the Building or the real property of which the Premises are a part including any costs under the terms of any CC&Rs affecting the real property, insurance deductibles and the costs relating to the insurance maintained by Landlord with respect to the Building, including, without limitation, Landlord's cost of any self insurance deductible or retention in any year); securitytrash collection; management fees, wages and benefits payable capital improvements made to employees of Lessor whose duties or capital assets acquired for the Building after the Commencement Date that are directly connected with intended to reduce Operating Expenses or are reasonably necessary for the operation health and maintenance safety of the building; all services, utilities, supplies, repairs, replacements, occupants of the Project or other expenses for maintaining and operating the common parking and plaza areas; the cost, including interest, amortized over its useful life, of any capital improvement made to the building by Lessor after the date of this Lease which is are required under any governmental law or regulation that was not applicable to the building at the time it was constructed; the costregulation, including interestwhich capital costs, amortized over its useful lifeor an allocable portion thereof, of installation of any device or other equipment which improves the operating efficiency of any system within the leased premises and thereby reduces operating expenses; all other expenses which would generally be regarded as operating and maintenance expenses which would reasonably shall be amortized over a the period reasonably determined by Landlord, together with interest on the unamortized balance at no greater than eight percent (8%) per annum; and (g) any other costs incurred by Landlord related to the Project. Operating Expenses shall also include an administrative fee to Landlord for accounting and project management services relating to the Building in an amount not to exceed five yearsthree percent (3%) of the sum of Net Rent (i.e. management fees and salaries will be calculated at 3% of Net Rent). Operating Expenses shall not include (i) replacement, structural repairs allocated to Landlord in Section 9.2 of this Lease (for example, repairs to the roof including gutters, the exterior walls of the Building and any other structural components of the Building); all real property taxes (ii) repairs to the extent covered by insurance proceeds, or paid by Tenant or other third parties; (iii) alterations solely attributable to tenants of the Project other than Tenant; (iv) costs or expenses allocated to Landlord in other provisions of this Lease (for example, repairs assigned to Landlord in Section 8 of the Work Letter and installments of special assessments, including dues and assessments by means of deed restrictions and/or owners' associations which accrue against the building of which the leased premises are a part during the term capital costs allocated to Landlord in Section 11 of this Lease); or (v) marketing expenses. Landlord agrees to limit any increases in Tenant's Share of controllable Operating Expenses (i.e. all Operating Expenses excluding common utilities, Real Property Taxes, snow removal and insurance premiums). Tenant will pay the actual amount of controllable Operating Expenses during the first Lease Year; but increases in all subsequent Lease Years during the Term will be limited to 5% in any given year, cumulative and compounding. For example, Xxxxxx's Share of controllable Operating Expenses during the second Lease Year will not, under any circumstances, be greater than 105% of the amount charged to Tenant for controllable Operating Expenses during the first Lease Year; and all insurance premiums Lessor is required Xxxxxx's Share of controllable Operating Expenses during the third Lease Year will not, under any circumstances, be greater than 110% of the amount charged to pay or deems necessary to payTenant for controllable Operating Expenses during the first Lease Year, including public liability insurance, with respect to the building. The term operating expenses does not include the following: repairs, restoration or other work occasioned by fire, wind, the elements of other casualty; income and franchise taxes of Lessor; expenses incurred in leasing to or procuring of lessees, leasing commissions, advertising expenses and expenses for the renovating of space for new, leasing commissions, advertising expenses and expenses for the renovating of space for new lessees; interest or principal payments on any mortgage or other indebtedness of Lessor; compensation paid to any employee or Lessor above the grade of property manager; any depreciation allowance or expense; or operating expenses assumed hereunder by Lesseeetc.

Definition of Operating Expenses. The As used herein, the term "operating expenses" includes “Operating Expenses” shall mean the sum of all expenses incurred by Lessor with respect Landlord in the ownership, operation, maintenance, repair and cleaning of the Building and Building improvements, the operation, maintenance repair, operating (including but not limited to the maintenance Amenity Space and operation Parking Lot and any other parking facilities serving the Building, and if and when the Parking Structure is completed and conveyed to Landlord in accordance with the Parking Easement, in the ownership, operation, maintenance, repair and cleaning of the building of which the leased premises are a partParking Structure), including, but not limited to, the following: following (but subject to the limitations and provisos set forth in this Section 5.2): (1) Metered Costs (excluding Submetered Costs and to the extent separately metered or submetered, costs for Utilities with respect to Operator’s usage or specific tenants’ premises or a tenant’s Specialty Alterations located outside of such tenant’s premises which shall be paid directly by such tenant); (2) costs of Utilities for the Building and Building Common Areas, to the extent such Utilities are not included in Metered Costs or are not separate Submetered Costs or are not recovered by Landlord under Section 5.2(g), without duplication, (3) premiums and other charges for insurance and deductibles under such insurance policies; (4) management fees and personnel costs of the Building (provided that the management fee percentage charged shall not exceed three percent (3%) of gross revenues from the Building (adjusted for abatements) collected from tenants or other Permitted Occupants of the Building during such calendar year), (5) costs of service and maintenance contracts relating to the Building or Parking Lot (or any Parking Structure constructed as a replacement to the Parking Lot) as a whole (including, without limitation, elevator, generator and HVAC maintenance); (6) operation, maintenance, repair and replacement costsexpenses and supplies; security; management fees(7) depreciation for Capital Improvements (and any financing costs thereof) (A) required to comply with Requirements (or changes thereto) applicable to the Building or the Parking Lot (or replacement Parking Structure) enacted after the date hereof (amortized over the longest depreciable period required by GAAP, wages and benefits payable with an interest factor equal to employees two percent (2%) above the Prime Rate at the time of Lessor whose duties Landlord’s having incurred said expenditure) or (B) which are directly connected with designed to result in a saving in the operation and maintenance amount of Operating Expenses provided that the amount of the building; cost of any such Capital Improvements under the this clause (7)(B) attributable to any calendar year that may be included in Operating Expenses for such calendar year shall not exceed the estimated savings for such Lease Year as a result of such expenditures by Landlord (the “Projected Savings”), which Projected Savings shall be reasonably determined (at the time of or prior to the making of such expenditure by Landlord) by an Independent Engineer, who shall be retained by Landlord (in all services, utilities, supplies, repairs, replacements, or other expenses such cases the cost thereof shall be included in “Operating Expenses” for maintaining the calendar year in which the costs are incurred and operating the common parking and plaza areas; the cost, including interestsubsequent calendar years, amortized over its useful lifesuch period of time as the Projected Savings will equal Landlord’s cost of such capital improvement, of any capital improvement made with an interest factor equal to two percent (2%) above the building by Lessor after the date of this Lease which is required under any governmental law or regulation that was not applicable to the building Prime Rate at the time it was constructedof Landlord having incurred said expenditure); (8) charges for security, janitorial, trash removal, window cleaning and all other cleaning services and supplies furnished to the costBuilding or Parking Lot (or the Parking Structure, including interestas applicable), amortized over its useful life, of installation of any device or other equipment which improves the operating efficiency of any system provided that charges for cleaning services and janitorial services within the leased premises Premises are not included by Operating Expenses but will treated as a Consumable Services Expense ; (9) any business, professional and thereby reduces operating expenses; all other expenses which would generally be regarded as operating and maintenance expenses which would reasonably be amortized over a period not to exceed five years; all real property taxes and installments of special assessments, including dues and assessments occupational license tax payable by means of deed restrictions and/or owners' associations which accrue against the building of which the leased premises are a part during the term of this Lease; and all insurance premiums Lessor is required to pay or deems necessary to pay, including public liability insurance, Landlord with respect to the buildingBuilding or Parking Lot (or the Parking Structure, as applicable); (10) without duplication, reasonable reserves for non-capital replacements, repairs and contingencies; (11) costs of snow removal; (12) any other expense incurred by Landlord in maintaining, repairing, operating or cleaning the Building or Parking Lot, including the Amenity Space and Lobby; (13) costs of maintaining, operating and repairing the Emergency Generator System, and (14) all other costs which are to be included as Operating Expenses as provided in this Lease but without duplication of any other Operating Expenses. The term operating expenses does Landlord shall reasonably allocate the premiums of any blanket insurance coverages carried by Landlord among the properties covered by such blanket policies and shall provide an explanation of such allocation to Tenant if requested. Notwithstanding anything to the contrary contained in this Lease, Operating Expenses shall not include the following: repairscost and items set forth in Exhibit N (“Excluded Expenses”) and shall be paid without duplication of amounts paid elsewhere in this Lease by Tenant for Premises Consumable Expenses, restoration Submetered Costs for Tenant’s Premises specific Usage or other work occasioned by fireusage, wind, Temporary Usage Charges or Real Estate Taxes (and the elements of other casualty; income and franchise taxes of Lessor; expenses incurred in leasing same shall apply with respect to or procuring of lessees, leasing commissions, advertising expenses and expenses for the renovating of space for new, leasing commissions, advertising expenses and expenses for the renovating of space for new lessees; interest or principal payments on any mortgage or other indebtedness of Lessor; compensation paid to any employee or Lessor above the grade of property manager; any depreciation allowance or expense; or operating expenses assumed hereunder by Lesseethose charges also).

Definition of Operating Expenses. The term "operating expensesOperating Expenses" includes shall -------------------------------- mean (i) all of Landlord's direct costs and expenses incurred by Lessor with respect to the maintenance and operation of the building of which the leased premises are a part, including, but not limited to, the following: maintenanceoperation, repair and replacement costs; security; management fees, wages and benefits payable to employees of Lessor whose duties are directly connected with the operation and maintenance of the buildingBuildings, the Property and supporting facilities, as determined by Landlord in accordance with generally accepted accounting principles or other recognized accounting principles, consistently applied; all services, utilities, supplies, repairs, replacements(ii) costs, or other expenses for maintaining and operating a portion thereof, properly allocable to the common parking and plaza areas; the cost, including interest, amortized over its useful life, Buildings or Property of any capital improvement improvements made to the building Buildings or Property by Lessor after Landlord which comprise labor-saving devices or other equipment intended to improve the date operating efficiency of this Lease which is any system within the Buildings or Property (such as an energy management computer system) to the extent of cost savings in Operating Expenses as a result of the device or equipment, as reasonably determined by Landlord; and (iii) costs properly allocable to the Buildings or Property of any capital improvements made to the Buildings or Property by Landlord that are required under any governmental law or regulation that was not applicable to the building Buildings and Property at the time it was they were constructed; , or that are reasonably required for the costhealth and safety of tenants in the Property or Buildings, including interestthe costs, amortized over its useful lifeor allocable portion thereof, of installation of any device or other equipment which improves the operating efficiency of any system within the leased premises and thereby reduces operating expenses; all other expenses which would generally be regarded as operating and maintenance expenses which would reasonably to be amortized over a period not to exceed five years; all real property taxes and installments the useful life of special assessmentssuch item as Landlord shall reasonably determine, including dues and assessments together with interest upon the unamortized balance at the "Prime Rate" as is published in the Wall Street Journal (or such reasonable substitute prime rate as Landlord may reasonably select) at the time such expense is incurred plus two percent (2%) or such higher rate as may have been paid by means Landlord on funds borrowed for the purpose of deed restrictions and/or owners' associations which accrue against constructing the building of which the leased premises are a part during the term of this Lease; and all insurance premiums Lessor is required to pay or deems necessary to pay, including public liability insurance, with respect to the buildingcapital improvements. The term operating expenses does not "Operating Expenses" shall include the following: repairs, restoration or other work occasioned by fire, wind, the elements costs of other casualty; income and franchise taxes of Lessor; expenses incurred in leasing to or procuring of lessees, leasing commissions, advertising expenses and expenses all utilities (including surcharges) for the renovating Property and Buildings; the cost of space for new, leasing commissions, advertising expenses and expenses all insurance which Landlord or Landlord's lender deems necessary for the renovating Property and Buildings; a reasonable management fee; dues imposed by any property owner's association ("Association"); and the Real Property Taxes (as defined in subsection 5(f)). If Landlord elects to self-insure or includes the Property under blanket insurance policies covering multiple properties, then the term "Operating Expenses" shall include the portion of space for new lessees; interest the cost of such self-insurance or principal payments on any mortgage or other indebtedness of Lessor; compensation paid blanket insurance allocated by Landlord to any employee or Lessor above the grade of property manager; any depreciation allowance or expense; or operating expenses assumed hereunder by Lesseethis Property.

Definition of Operating Expenses. The term "operating expenses" includes all expenses incurred by Lessor Landlord with respect to the maintenance maintenance, servicing, repairing and operation of the building of which the leased premises are a partProperty, including, including but not limited to, to the following: maintenance, repair and replacement costs; electricity, fuel, water, sewer, gas and other utility charges; security, window washing and janitorial services; trash and snow and ice removal; landscaping and pest control; management feesfees payable to third parties, wages and benefits payable to employees of Lessor Landlord whose duties are directly connected with the operation and maintenance of the buildingProperty; all services, utilities, supplies, repairs, replacements, replacement or other expenses for maintaining and operating the common Property including parking and plaza areascommon area; the cost, including interest, amortized over its useful life, of any capital improvement made to the building Property by Lessor Landlord after the date of this Lease lease which is required under any governmental law or regulation that was not applicable to the building Property at the time it was constructed; the cost, including interest, amortized over its useful life, of installation of any device or other equipment which improves the operating efficiency of any system within Initial ____ 2 3 the leased premises Leased Premises and thereby reduces operating expenses; all other expenses which generally would generally be regarded as operating and maintenance expenses which would reasonably be amortized over a period not to exceed five (5) years; all real property taxes and installments of special assessments, including dues and assessments by means of deed restrictions and/or owners' owner's associations which accrue against the building of which the leased premises are a part Property during the term of this Lease; governmental levies or charges of any kind or nature assessed or imposed on the Property, whether by state, county, city or any political subdivision thereof; and all insurance premiums Lessor Landlord is required to pay or deems necessary to pay, including public liability insurance, with respect to the buildingProperty. The term operating expenses does not include the following: expenses for repairs, restoration or other work occasioned by fire, wind, the elements of or other casualtycasualty that are covered by insurance; income and franchise taxes of LessorLandlord; expenses incurred in leasing to or procuring of lessees, leasing commissions, advertising expenses and expenses for the renovating of space for newtenants, leasing commissions, advertising expenses and expenses for the renovating of space for new lesseestenants; interest or principal payments on any mortgage or other indebtedness of LessorLandlord; compensation paid to any employee or Lessor of Landlord above the grade of property manager; any depreciation allowance or expense; or operating expenses assumed hereunder by Lessee.which are the responsibility of tenant. Notwithstanding anything to the contrary contained in this Lease, Operating Expenses shall not include the following: