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refunds or Property Taxes, or components thereof, or the costs of Contesting the validity of applicablllty of any governmental enactments which may <br />affect Operating Expenses. <br />(1) Fees for the administration and management of the Project in an amount equal to three percent (7%A) of the gross <br />revenues of the Project (which shall be grossed by Landlord up to one hundred percent (100%) occupancy on an annual basis), without regard to <br />whether actual fees so paid are greater or less than such amount. <br />(m) Sales, use and excise taxes on goods and services purchased by Landlord for the management, maintenance, <br />adm inistradun or operation of lie Building or the Project. <br />(n) Fees for local civic organizations and dues for professlonal trade associations <br />(0) Payments under any covenants, conditions and restrictions pertaining to the Project or any easement, license or <br />operating agreement or similar instrument which affects the Project. <br />(p) Costs and expenses of Investigating, testing, documenting, monitoring, responding to, abating and remediating <br />Hazardous Materials, other than abatement and remediation costs with respect to Hazardous Materials actually known by Landlord (on the Effective <br />Date) to require abatement and/or remediation under applicable Environmental Laws. <br />(q) The costs of repairing, restoring and maintaining the Parking Facilities of the Project, Including, without limitation, the <br />resurfacing, restriping and cleaning ofsueh facilities. <br />(r) Any costs, fees, amounts, disbursements and expenses which are generally included in Operating Expenses under <br />Institutional Owner Practices. <br />1.5 The following costs and expenses shall be excluded front Operating Expenses: <br />(a) expenses relating to leasing space in the Project (Including tenant improvements, leasing and brokerage commissions <br />and advertising expenses); <br />(b) legal fees and disbursements incurred For collection ortenant accounts or negotiation of leases, or relating to disputes <br />between Landlord and other tenants and occupants of the Building; <br />(c) Capital Items unless specifically permitted by Section IA of this Exhibit "E". parts (a) through (r), inclusive; <br />(d) Property Taxes; <br />(e) amounts received by Landlord on account of proceeds of insurance to die extent the proceeds are rehnbursoment for <br />expenses which were previously included in Operating Expenses; <br />(D except to the extent specifically provided in Section I orthis Exhibit "E" parts (a) through (r), inclusive, depreciation <br />or payments of principal and interest on any mortgages upon the Project; <br />(g) payments of ground rent pursuant to any ground lease covering the Project; <br />(h) subject to Section 2A of this Exhibit "E" die costs of gas, steam or other fuel; operation of elevators and security <br />systems; heating, cooling, Or conditioning and ventilating; chilled water, hot mid cold domestic water, sewer and other utilities or any other service <br />work or facility, or level or amount thereof, provided to any other tenant or occupant in the Project which either (a) is not required to be supplied or <br />furnished by Landlord to Ten r it under the provisions orthis Lease or (b) is supplied or furnished to Tenant pursuant to the terns of this Lease with <br />separate or additional charge; <br />(i) the cost of the Landlord's Work; and <br />0) any cost expressly excluded from Operating Expenses in an express provision contained in this Lease. <br />1.6 "Excess Operating Expenses" means, with respect to any Expense Year, the positive excess, if any, of Operating Expenses <br />allocable hereunder to such Expense Your over Operating Expenses allocable hereunder to the Base Year. <br />1.7 "Excess Property Taxes" means, with respect to any Expense Year, the positive excess, if any, of the Property Taxes allocable <br />hereunder to such Expense Year over die Property Taxes allocable hereunder to the Base Year. <br />1.8 "'Tenant's Percentage Share" means the percentage set forth in Item 5.2 of the Basic Lease Provisions: provided, however, that <br />Landlord reserves the right from time to time doing the Term of this Lease to recalculate Tenant's Percentage Share, in which cost Tenant's <br />Percentage Share shall be calculated by dividing the number orsqu re feet of Rentabic Area in the Premises by the number orsquare feel or Rentable <br />Area in the Project, and expressing such quotient in the form of a percentage. <br />2. (:ahc Alniimr Methods and Ad'ustmenls. <br />2.1 The varinbhe components or Operating Expenses (^Ynriuble Expenses") tirr till or City portion of any Expense Year (including <br />the Iluso Year) during which'nctual occupancy or the Project is less than one hundred percent (100%) of the Rentable Area critic Project shall be <br />Adjusted by Landlord; as determined in good faith by Landlord applying sound accounting rind properly management principles (and the provisions <br />Jill WC10r Center Or —City ofSonta as Letme •2• Exhibit <br />