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refunds of Property Taxes, or components thereof, or the costs of contesting the validity of applicability 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 (30/0) 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 />administration or operation of the Building or the Project.
<br />(n) Fees for local civic organizations and dues for professional trade associations
<br />(o) 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 Padang Facilities of the Project, including, without limitation, the
<br />resurfacing, restriping and cleaning of such facilities.
<br />(r) Any costs, fees, amounts, disbursements and expenses which are generally included in Operating Expenses under
<br />Institutional Owner Practices.
<br />L5 .;The following costs and expenses shall be excluded from 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 incurredfor collection of tenant 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 1.4 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 the extent the proceeds are reimbursement for
<br />expenses which were previously included in Operating Expenses;
<br />(f) except to the extent specifically provided in Section 1.4 of this Exhibit "E" pmts (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 2.1 of this Exhibit "E", the costs of gas, steam or other fuel; operation of elevators and security
<br />systems; heating, cooling, air conditioning and ventilating; chilled water, hot and 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 Tenant under the provisions of this Lease or (b) is supplied or furnished to Tenant pursuant to the terms of this Losse with
<br />separate or additional charge;
<br />(i) the cost of the Landlord's Work; and
<br />Q) 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 Year 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 the 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 during the Tenn of this Lease to recalculate Tenant's Percentage Share, in which case Tenant's
<br />Percentage Share shall be calculated by dividing the number of square feet of Rentable Area in the Premises by the number of square feet of Rentable
<br />Area in the Project, and expressing such quotient in the form of a percentage.
<br />2. Calculation Methods and Adjustments.
<br />2.1 The variable components of Operating Expenses ("Variable Expenses") for all or any portion of any Expense Year (including
<br />the Base Year) during which actual occupancy of the Project is less than one hundred percent (100%) of the Rentable Area of the Project shall be
<br />adjusted by Landlord, as determined in good faith by Landlord applying sound accounting and property management principles (and the provisions
<br />301 W CWc Center Dr— City ofSanw Ana Lease -2- Exhibit E
<br />25B-44
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