Common use of EXPENSES OF OPERATION Clause in Contracts

EXPENSES OF OPERATION. MANAGEMENT AND MAINTENANCE OF THE COMMON AREAS OF THE COMPLEX, PREMISES AND BUILDING IN WHICH THE PREMISES ARE LOCATED. As Additional Rent and in accordance with Paragraph 4(D) of this Lease, Tenant shall pay to Landlord Tenant’s proportionate share (calculated on a square footage or other equitable basis as calculated by Landlord) of all expenses of operation, management, maintenance and repair of the Common Areas of the Complex including, but not limited to, license, permit, management fees (not to exceed 3.0% of the gross rental income of the Complex) and inspection fees; security; utility charges associated with exterior landscaping and lighting (including water and sewer charges); all charges incurred in the maintenance of landscaped areas, lakes, parking lots, sidewalks, driveways; maintenance, repair and replacement of all fixtures and electrical, mechanical and plumbing systems; structural elements and exterior surfaces of the buildings; salaries and employee benefits of personnel and payroll taxes applicable thereto; supplies, materials, equipment and tools; the cost of capital expenditures which have the effect of reducing operating expenses, provided, however, that in the event Landlord makes such capital improvements which exceed Seventy Five Thousand Dollars ($75,000.00), Landlord shall amortize its investment in said improvements (together with interest at the rate of eight (8%) percent per annum on the unamortized balance) as an operating expense over the useful life of the capital improvement in a manner consistent with industry practice. As Additional Rent and in accordance with Paragraph 4(D) of this Lease, Tenant shall pay its proportionate share (calculated on a square footage , or other equitable basis as calculated by Landlord) of the cost of operation (including common utilities), management, maintenance and repair of the Premises and the building (including common areas such as lobbies, restrooms, janitor’s closets, hallways, elevators, mechanical and telephone rooms, stairwells, entrances, spaces above the ceilings) in which the Premises are located. The maintenance items herein referred to include, but are not limited to, janitorization, electrical systems (such as outlets, lighting fixtures, lamps, bulbs, tubes, ballasts), heating and air conditioning controls (such as mixing boxes, thermostats, time clocks, supply and return grills), all interior improvements within the Premises including but not limited to: wall coverings, window coverings, acoustical ceilings, vinyl tile, carpeting, partitioning, doors (both interior and exterior, including closing mechanisms, latches, locks), and all other interior improvements of any nature whatsoever, all windows, window frames, plate glass, glazing, truck doors, main plumbing systems of the building (such as water and drain lines, sinks, toilets, faucets, drains, showers and water fountains), main electrical systems (such as panels and conduits), heating and air conditioning systems (such as compressors, fans, air handlers, ducts, boilers, heaters), store fronts, roofs, downspouts, building common area interiors (such as wall coverings, window coverings, floor coverings and partitioning), ceilings, building exterior doors, skylights (if any), automatic fire extinguishing systems and elevators; license, permit, and inspection fees; security; salaries and employee benefits of personnel and payroll taxes applicable thereto; supplies, materials, equipment and tools; the cost of capital expenditures which have the effect of reducing operating expenses, provided, however, that in the event Landlord makes such capital improvements which exceed Seventy Five Thousand ($75,000.00), Landlord shall amortize its investment in said improvements (together with interest at the rate of eight (8%) percent per annum on the unamortized balance) as an operating expense over the useful life of the capital improvement in a manner consistent with industry practice. Tenant hereby waives all rights under, and benefits of, subsection I of Section 1932 and Sections 1941 and 1942 of the California Civil Code and under any similar law, statute or ordinance now or hereafter in effect. Should Tenant replace the carpet in the Premise office spaces during the Lease term, Tenant agrees to provide carpet xxxxxxx under all rolling chairs or to otherwise be responsible for wear and tear of the carpet caused by such rolling chairs if such wear and tear exceeds that caused by normal foot traffic in surrounding areas (“Areas of Excessive Wear”). Such Areas of Excessive Wear shall be replaced at Tenant’s sole expense upon Lease termination.

EXPENSES OF OPERATION. MANAGEMENT AND MAINTENANCE OF THE COMMON AREAS OF THE COMPLEX, PREMISES AND BUILDING IN WHICH THE PREMISES ARE LOCATED. LOCATED As Additional Rent and in accordance with Paragraph 4(D) 4 D of this Lease, Tenant shall pay to Landlord Tenant’s proportionate share (calculated on a square footage or other more equitable basis as calculated by Landlord) of all expenses of operation, management, maintenance and repair of the Common Areas of the Complex including, but not limited to, license, permit, management fees (not to exceed 3.0% of the gross rental income of the Complex) permit and inspection fees; security; utility charges associated with exterior landscaping and lighting (including water and sewer charges); all charges incurred in the maintenance of landscaped areas, lakes, parking lots, sidewalks, driveways; maintenance, repair and replacement of all fixtures and electrical, mechanical and plumbing systems; structural elements and exterior surfaces of the buildings; salaries and employee benefits of personnel and payroll taxes applicable thereto; supplies, materials, equipment and tools; the cost of capital expenditures which have the effect of reducing operating expenses, provided, however, that in the event Landlord makes such capital improvements which exceed Seventy Five Thousand Dollars ($75,000.00)improvements, Landlord shall amortize its investment in said improvements (together with interest at the a rate of eight interest not to exceed the prime rate then being charged by major banks plus two (8%2) percent per annum on the unamortized balance) as an operating expense over in accordance with standard accounting practices, provided, that such amortization is not at a rate greater than the useful life of anticipated savings in the capital improvement in a manner consistent with industry practiceoperating expenses. As Additional Rent and in accordance with Paragraph 4(D) paragraph 4D of this Lease, Tenant shall pay its proportionate share (calculated on a square footage , or other more equitable basis as calculated by Landlord) of the cost of operation (including common utilities), management, maintenance and repair of the Premises and the building (including common areas such as lobbies, restrooms, janitor’s closets, hallways, elevators, mechanical and telephone rooms, stairwells, entrances, spaces above the ceilings) in which the Premises are located. The To the extent applicable to the Premises the maintenance items herein referred to include, but are not limited to, janitorization, electrical systems (such as outlets, lighting fixtures, lamps, bulbs, tubes, ballasts), heating and air conditioning airconditioning controls (such as mixing boxes, thermostats, time clocks, supply and return grills), all interior improvements within the Premises including but not limited to: wall coverings, window coverings, acoustical ceilings, vinyl tile, carpeting, partitioning, doors (both interior and exterior, including closing mechanisms, latches, locks), and all other interior improvements of any nature whatsoever, all windows, window frames, plate glass, glazing, truck doors, main plumbing systems of the building (such as water and drain lines, sinks, toilets, faucets, drains, showers and water fountains), main electrical systems (such as panels and conduits), heating and air conditioning systems (such as compressors, fans, air handlers, ducts, boilers, heaters), store fronts, roofs, downspouts, building common area interiors (such as wall coverings, window coverings, floor coverings and partitioning), ceilings, building exterior doors, skylights (if any), automatic fire extinguishing systems and elevators; license, permit, and inspection fees; security; salaries and employee benefits of personnel and payroll taxes applicable thereto; supplies, materials, equipment and tools; the cost of capital expenditures which have the effect of reducing operating expenses, provided, however, that in the event Landlord makes such capital improvements which exceed Seventy Five Thousand ($75,000.00)improvements, Landlord shall amortize its investment in said improvements (together with interest at the a rate of eight interest not to exceed the prime rate then being charged by major banks plus two (8%2) percent per annum on the unamortized balance) as an operating expense over in accordance with standard accounting practices, provided, that such amortization is not at a rate greater than the useful life of anticipated savings in the capital improvement in a manner consistent with industry practiceoperating expenses. Tenant hereby waives all rights under, and benefits of, subsection I 1 of Section 1932 and Sections Section 1941 and 1942 of the California Civil Code and under any similar law, statute or ordinance now or hereafter in effect. Should Tenant replace the carpet in the Premise office spaces during the Lease term, Tenant agrees to provide carpet xxxxxxx under all rolling chairs or to otherwise be responsible for wear and tear of the carpet caused by such rolling chairs if such wear and tear exceeds that caused by normal foot traffic in surrounding areas (“areas. Areas of Excessive Wear”). Such Areas of Excessive Wear excessive wear shall be replaced at Tenant’s sole expense upon Lease termination.

EXPENSES OF OPERATION. MANAGEMENT AND MAINTENANCE OF THE COMMON AREAS OF THE COMPLEX, PREMISES AND BUILDING IN WHICH THE PREMISES ARE LOCATED. LOCATED As Additional Rent and in accordance with Paragraph 4(D) 4 D of this Lease, Tenant shall pay to Landlord Tenant’s proportionate share (calculated on a square footage or other equitable basis as calculated by Landlord) of all expenses of operation, management, maintenance and repair of the Common Areas of the Complex including, but not limited to, license, permit, management fees (not to exceed 3.0% of the gross rental income of the Complex) permit and inspection fees; security; utility charges associated with exterior landscaping and lighting (including water and sewer charges); all charges incurred in the maintenance of landscaped areas, lakes, parking lots, sidewalks, driveways; maintenance, repair and replacement of all fixtures and electrical, mechanical and plumbing systems; structural elements and exterior surfaces of the buildings; salaries and employee employees benefits of personnel and payroll taxes applicable thereto; supplies, materials, equipment and tools; the cost of capital expenditures which have the effect of reducing operating expenses, provided, however, that in the event Landlord makes such capital improvements which exceed Seventy Five Thousand Dollars ($75,000.00)improvements, Landlord shall may amortize its investment in said improvements (together with interest at the rate of eight (8%) percent per annum on the unamortized balance) as an operating expense over in accordance with standard accounting practices, provided, that such amortization is not a rate greater than the useful life anticipated savings in the operating expenses and provided that only the portion of such amortized amount as is allocable to the balance of the capital improvement in a manner consistent with industry practiceLease term shall be Additional Rent. As Additional Rent and in accordance with Paragraph 4(D) paragraph 4D of this Lease, Tenant shall pay its proportionate share (calculated on a square footage , or other equitable basis as calculated by Landlord) of the cost of operation (including common utilities), management, maintenance and repair of the Premises and the building (including common areas such as lobbies, restrooms, janitor’s closets, hallways, elevators, mechanical and telephone rooms, stairwells, entrances, spaces above the ceilings) in which the Premises are located. The maintenance items herein referred to include, but are not limited to, janitorization, electrical systems (such as outlets, lighting fixtures, lamps, bulbs, tubestubs, ballasts), heating and air conditioning airconditioning controls (such as mixing boxes, thermostats, time clocks, supply and return grills), all interior improvements within the Premises including but not limited to: wall coverings, window coverings, acoustical ceilings, vinyl tile, carpeting, partitioning, doors (both interior and exterior, including closing mechanisms, latches, locks), and all other interior improvements of any nature whatsoever, all windows, window frames, plate glass, glazing, truck doors, main plumbing systems of the building (such as water and drain lines, sinks, toilets, faucets, drains, showers and water fountains), main electrical systems (such as panels and conduits), heating and air conditioning systems (such as compressors, fans, air handlers, ducts, boilers, heaters), store fronts, roofs, downspouts, building common area interiors (such as wall coverings, window coverings, floor coverings and partitioning), ceilings, building exterior doors, skylights (if any), automatic fire extinguishing systems and elevators; license, permit, and inspection fees; security; salaries and employee benefits of personnel and payroll taxes applicable thereto; supplies, materials, equipment and tools; the cost of capital expenditures which have the effect of reducing operating expenses, provided, however, that as set forth in the event Landlord makes such capital improvements which exceed Seventy Five Thousand ($75,000.00), Landlord shall amortize its investment in said improvements (together with interest at the rate of eight (8%) percent per annum on the unamortized balance) as an operating expense over the useful life of the capital improvement in a manner consistent with industry practiceprior paragraph above. Tenant hereby waives all rights under, and benefits of, subsection I 1 of Section 1932 and Sections Section 1941 and 1942 of the California Civil Code and under any similar law, statute or ordinance now or hereafter in effect. Should Tenant replace the carpet in the Premise office spaces during the Lease term, Tenant agrees to provide carpet xxxxxxx under all rolling chairs or to otherwise be responsible for wear and tear of the carpet caused by such rolling chairs if such wear and tear exceeds that caused by normal foot traffic in surrounding areas (“areas. Areas of Excessive Wear”). Such Areas of Excessive Wear excessive wear shall be replaced at Tenant’s sole expense upon Lease termination.

EXPENSES OF OPERATION. MANAGEMENT MANAGEMENT, AND MAINTENANCE OF THE COMMON AREAS OF ------------------------------------------------------------------------- THE COMPLEX, PREMISES PARCEL AND BUILDING IN WHICH THE PREMISES ARE LOCATED. : As Additional Rent --------------------------------------------------------- and in accordance with Paragraph 4(D) 4D of this Lease, Tenant shall pay to Landlord Tenant’s 's proportionate share (calculated on a square footage or other equitable basis as calculated by Landlordlandlord) of all expenses of operation, management, maintenance and repair of the Common Areas of the Complex Parcel including, but not limited to, license, permit, management fees (not to exceed 3.0% of the gross rental income of the Complex) and inspection fees; security; utility charges associated with exterior landscaping and lighting (including water and sewer charges); all charges incurred in the maintenance and replacement of landscaped areas, lakes, parking lotslots and paved areas (including repairs, replacement, resealing and restriping), sidewalks, driveways; , maintenance, repair and replacement of all fixtures and electrical, mechanical and plumbing systems; structural elements and exterior surfaces of the buildings; salaries and employee benefits of personnel and payroll taxes applicable thereto; supplies, materials, equipment and tools; the cost of capital expenditures which have the effect of reducing operating expenses, provided, however, that in the event Landlord makes such capital improvements which exceed Seventy Five Thousand Dollars ($75,000.00)improvements, Landlord shall may amortize its investment in said improvements (together with interest at the rate of eight fifteen (815%) percent per annum on the unamortized balance) as an operating expense over in accordance with standard accounting practices, provided, that such amortization is not at a rate greater than the useful life of anticipated savings in the capital improvement in a manner consistent with industry practiceoperating expenses. As Additional Rent and in accordance with Paragraph 4(D) 4D of this Lease, Tenant shall pay its proportionate share (calculated on a square footage , or other equitable basis as calculated by Landlord) of the cost of operation (including common utilities), management, maintenance maintenance, and repair of the Premises and the building (including structural and common areas such as lobbies, restrooms, janitor’s 's closets, hallways, elevators, mechanical and telephone rooms, stairwells, entrances, spaces above the ceilingsceilings and janitorization of said common areas) in which the Premises are located. The maintenance items herein referred to include, but are not limited to, janitorization, electrical systems (such as outlets, lighting fixtures, lamps, bulbs, tubes, ballasts), heating and air conditioning controls (such as mixing boxes, thermostats, time clocks, supply and return grills), all interior improvements within the Premises including but not limited to: wall coverings, window coverings, acoustical ceilings, vinyl tile, carpeting, partitioning, doors (both interior and exterior, including closing mechanisms, latches, locks), and all other interior improvements of any nature whatsoever, all windows, window frames, plate glass, glazing, truck doors, main plumbing systems of the building (such as water and drain lines, sinks, toilets, faucets, drains, showers and water fountains), main electrical systems (such as panels and conduits), heating and air conditioning airconditioning systems (such as compressors, fans, air handlers, ducts, boilers, heaters), structural elements and exterior surfaces of the building; store fronts, roofsroof, downspouts, building common area interiors (such as wall coverings, window coverings, floor coverings and partitioning), ceilings, building exterior doors, skylights (if any), automatic fire extinguishing systems systems, and elevatorselevators (if any); license, permit, permit and inspection fees; security; salaries and employee benefits of personnel and payroll taxes applicable thereto; , supplies, materials, equipment and tools; the cost of capital expenditures which have the the, effect of reducing operating expenses, provided, however, that in the event Landlord makes such capital improvements which exceed Seventy Five Thousand ($75,000.00)improvements, Landlord shall may amortize its investment in said improvements (together with interest at the rate of eight fifteen (815%) percent per annum on the unamortized balance) as an operating expense over in accordance with standard accounting practices, provided, that such amortization is not at a rate greater than the useful life of anticipated savings in the capital improvement in a manner consistent with industry practiceoperating expenses. Tenant hereby waives all rights underhereunder, and benefits of, subsection I 1 of Section 1932 and Sections 1941 and 1942 of the California Civil Code and under any similar law, statute or ordinance now or hereafter in effect. Should Tenant replace the carpet in the Premise office spaces during the Lease term, Tenant agrees to provide carpet xxxxxxx under all rolling chairs or to otherwise be responsible for wear and tear of the carpet caused by such rolling chairs if such wear and tear exceeds that caused by normal foot traffic in surrounding areas (“Areas of Excessive Wear”). Such Areas of Excessive Wear shall be replaced at Tenant’s sole expense upon Lease termination.

EXPENSES OF OPERATION. MANAGEMENT AND MAINTENANCE OF THE COMMON AREAS OF THE COMPLEX, PREMISES AND BUILDING IN WHICH THE PREMISES ARE LOCATED. LOCATED As Additional Rent and in accordance with Paragraph 4(D) 4 D of this Lease, Tenant shall pay to Landlord Tenant’s proportionate share (calculated on a square footage or other equitable basis as calculated by Landlord) Proportionate Share of all expenses of operation, management, maintenance and repair of the Common Areas of the Complex including, but not limited to, including license, permit, management fees (not to exceed 3.0% of the gross rental income of the Complex) permit and inspection fees; security; utility charges associated with exterior landscaping and lighting (including water and sewer charges); all charges incurred in the maintenance of landscaped areas, lakes, parking lots, sidewalks, driveways; maintenance, repair and replacement of all fixtures and electrical, mechanical and plumbing systems; structural elements and exterior surfaces of the buildings; salaries and employee employees benefits of personnel and payroll taxes applicable thereto; supplies, materials, equipment and tools; the cost of capital expenditures which have the effect of reducing operating expenses, or repair and replacement of existing capital items needing repair or replacement with like-kind replacement if replaced; provided, however, that in the event Landlord makes such capital improvements which exceed Seventy Five Thousand Dollars ($75,000.00)improvements, Landlord shall amortize its investment in said improvements over their useful life (together with interest at the rate of eight four (84%) percent per annum on the unamortized balance) as an operating expense over in accordance with generally accepted accounting principles, provided, that such amortization is not a rate greater than the useful life of anticipated savings in the capital improvement in a manner consistent with industry practiceoperating expenses. As Additional Rent and in accordance with Paragraph 4(D) 4D of this Lease, Tenant shall pay its proportionate share (calculated on a square footage , or other equitable basis as calculated by Landlord) Proportionate Share of the cost of operation (including common utilities), management, maintenance and repair of the Premises and the building Building (including common areas such as lobbies, restrooms, janitor’s closets, hallways, elevators, mechanical and telephone rooms, stairwells, entrances, spaces above the ceilings) in which the Premises are located. The maintenance items herein referred to include, but are not limited to, include janitorization, electrical systems (such as outlets, lighting fixtures, lamps, bulbs, tubestubs, ballasts), heating and air conditioning airconditioning controls (such as mixing boxes, thermostats, time clocks, supply and return grills), all interior improvements within the Premises including but not limited to: wall coverings, window coverings, acoustical ceilings, vinyl tile, carpeting, partitioning, doors (both interior and exterior, including closing mechanisms, latches, locks), and all other interior improvements of any nature whatsoever, all windows, window frames, plate glass, glazing, truck doors, main plumbing systems of the building (such as water and drain lines, sinks, toilets, faucets, drains, showers and water fountains), main electrical systems (such as panels and conduits), heating and air conditioning systems (such as compressors, fans, air handlers, ducts, boilers, heaters), store fronts, roofs, downspouts, building common area interiors (such as wall coverings, window coverings, floor coverings and partitioning), ceilings, building exterior doors, skylights (if any), automatic fire extinguishing systems and elevators; license, permit, and inspection fees; security; salaries and employee benefits of personnel and payroll taxes applicable thereto; supplies, materials, equipment and tools; the cost of capital expenditures which have the effect of reducing operating expenses, expenses or repair and replacement of existing capital items needing repair or replacement with like-kind replacement if replaced; provided, however, that than in the event Landlord makes such capital improvements which exceed Seventy Five Thousand ($75,000.00)improvements, Landlord shall amortize its investment in said improvements over their useful life (together with interest at the rate of eight four (84%) percent per annum on the unamortized balance) as an operating expense over in accordance with generally accepted accounting principles, provided, that such amortization is not at a rate greater than the useful life of anticipated savings in the capital improvement in a manner consistent with industry practiceoperating expenses. Tenant hereby waives all rights under, and benefits of, subsection I 1 of Section 1932 and Sections Section 1941 and 1942 of the California Civil Code and under any similar law, statute or ordinance now or hereafter in effect. Should Tenant replace the carpet in the Premise office spaces during the Lease term, Tenant agrees to provide carpet xxxxxxx under all rolling chairs or to otherwise be responsible for wear and tear of the carpet caused by such rolling chairs if such wear and tear exceeds that caused by normal foot traffic in surrounding areas (“areas. Areas of Excessive Wear”). Such Areas of Excessive Wear excessive wear shall be replaced at Tenant’s sole expense upon Lease termination.

EXPENSES OF OPERATION. MANAGEMENT AND MAINTENANCE OF THE COMMON AREAS OF THE COMPLEX, PREMISES AND BUILDING IN WHICH THE PREMISES ARE LOCATEDLOCATED Landlord shall maintain the Common Areas, the Building and the Premises in condition and repair comparable to similar buildings. As Additional Rent and in accordance with Paragraph 4(D) 4 D of this Lease, Tenant shall pay to Landlord Tenant’s proportionate share (calculated on a square footage or other equitable basis as calculated by Landlordbasis) of all expenses of operation, management, maintenance and repair of the Common Areas of the Complex including, but not limited to, license, permit, management fees (not to exceed 3.0% of the gross rental income of the Complex) permit and inspection fees; security; utility charges associated with exterior landscaping and lighting (including water and sewer charges); all charges incurred in the maintenance of landscaped areas, lakes, parking lots, sidewalks, driveways; maintenance, repair and replacement of all fixtures and electrical, mechanical and plumbing systems; structural elements and exterior surfaces of the buildings; salaries and employee employees benefits of personnel and payroll taxes applicable thereto; supplies, materials, equipment and tools; the cost of capital expenditures which have the effect of reducing operating expenses, provided, however, that in the event Landlord makes such capital improvements which exceed Seventy Five Thousand Dollars ($75,000.00)improvements, Landlord shall amortize its investment in said improvements (together with interest at the rate of eight (8%) percent per annum on the unamortized balance) as an operating expense over in accordance with standard accounting practices, provided, that such amortization is not a rate greater than the useful life of anticipated savings in the capital improvement in a manner consistent with industry practiceoperating expenses and further provided that any applicable reserve shall be applied before the charge is made. As Additional Rent and in accordance with Paragraph 4(D) paragraph 4D of this Lease, Tenant shall pay its proportionate share (calculated on a square footage , or other equitable basis as calculated by Landlordbasis) of the cost of operation (including common utilities), management, maintenance and repair of the Premises and the building (including common areas such as lobbies, restrooms, janitor’s closets, hallways, elevators, mechanical and telephone rooms, stairwells, entrances, spaces above the ceilings) in which the Premises are located. The maintenance items herein referred to include, but are not limited to, janitorization, electrical systems (such as outlets, lighting fixtures, lamps, bulbs, tubestubs, ballasts), heating and air conditioning airconditioning controls (such as mixing boxes, thermostats, time clocks, supply and return grills), all interior improvements within the Premises including but not limited to: wall coverings, window coverings, acoustical ceilings, vinyl tile, carpeting, partitioning, doors (both interior and exterior, including closing mechanisms, latches, locks), and all other interior improvements of any nature whatsoever, all windows, window frames, plate glass, glazing, truck doors, main plumbing systems of the building (such as water and drain lines, sinks, toilets, faucets, drains, showers and water fountains), main electrical systems (such as panels and conduits), heating and air conditioning systems (such as compressors, fans, air handlers, ducts, boilers, heaters), store fronts, roofs, downspouts, building common area interiors (such as wall coverings, window coverings, floor coverings and partitioning), ceilings, building exterior doors, skylights (if any), automatic fire extinguishing systems and elevators; license, permit, and inspection fees; security; salaries and employee benefits of personnel and payroll taxes applicable thereto; supplies, materials, equipment and tools; the cost of capital expenditures which have the effect of reducing operating expenses, provided, however, that than in the event Landlord makes such capital improvements which exceed Seventy Five Thousand ($75,000.00)improvements, Landlord shall may amortize its investment in said improvements (together with interest at the rate of eight (8%) percent per annum on the unamortized balance) as an operating expense over in accordance with standard accounting practices, provided, that such amortization is not at a rate greater than the useful life of anticipated savings in the capital improvement in a manner consistent with industry practiceoperating expenses. Tenant hereby waives all rights under, and benefits of, subsection I 1 of Section 1932 and Sections Section 1941 and 1942 of the California Civil Code and under any similar law, statute or ordinance now or hereafter in effect. Should Tenant replace the carpet in the Premise office spaces during the Lease term, Tenant agrees to provide carpet xxxxxxx under all rolling chairs or to otherwise be responsible for wear and tear of the carpet caused by such rolling chairs if such wear and tear exceeds that caused by normal foot traffic in surrounding areas (“areas. Areas of Excessive Wear”). Such Areas of Excessive Wear excessive wear shall be replaced at Tenant’s sole expense upon Lease termination.

EXPENSES OF OPERATION. MANAGEMENT AND MAINTENANCE OF THE COMMON AREAS OF THE COMPLEX, PREMISES AND BUILDING IN WHICH THE PREMISES ARE LOCATED. LOCATED As Additional Rent and in accordance with Paragraph 4(D) 4 D of this Lease, Tenant shall pay to Landlord Tenant’s proportionate share 's Proportionate Share (calculated on a square footage or other equitable basis as calculated by Landlorddefined in Paragraph 4 D of this Lease) of all expenses of operation, management, maintenance and repair of the Common Areas of the Complex including, but not limited to, license, permit, management fees (not to exceed 3.0% of the gross rental income of the Complex) permit and inspection fees; security; utility charges associated with exterior landscaping and lighting (including water and sewer charges); all charges incurred in the maintenance of landscaped areas, lakes, parking lots, sidewalks, driveways; maintenance, repair and replacement of all fixtures and electrical, mechanical and plumbing systems; structural elements supplies and exterior surfaces of materials. All capital repairs and improvements costs will be paid by the buildings; salaries and employee benefits of personnel and payroll taxes applicable thereto; suppliesLandlord, materials, equipment and tools; but the cost of capital expenditures which have the effect of reducing operating expenses, provided, however, that in the event Landlord makes such capital improvements which exceed Seventy Five Thousand Dollars ($75,000.00), Landlord shall amortize its investment in said improvements thereof (together with interest at the rate of eight (8%) percent per annum on the unamortized balanceannum) may be amortized as an operating expense over the useful life of the capital improvement expense. All operating expenses shall be determined in a manner consistent accordance with industry practicegenerally accepted accounting practices consistently applied. As Additional Rent and in accordance with Paragraph 4(D) 4 D of this Lease, Tenant shall pay its proportionate share Tenant's Proportionate Share (calculated on a square footage , or other equitable basis as calculated by Landlorddefined in Paragraph 4 D of this Lease) of the cost of operation (including common utilities), management, maintenance and repair of the Premises and the building Building (including common areas such as lobbies, restrooms, janitor’s 's closets, hallways, elevators, mechanical and telephone rooms, stairwells, entrances, spaces above the ceilings) in which the Premises are located. The non-Capital maintenance items herein referred to include, but are not limited to, janitorization, electrical systems (such as outlets, lighting fixtures, lamps, bulbs, tubes, ballasts), heating and air conditioning controls (such as mixing boxes, thermostats, time clocks, supply and return grills), all interior improvements within the Premises including but not limited to: wall coverings, window coverings, acoustical ceilings, vinyl tile, carpeting, partitioning, doors (both interior and exterior, including closing mechanisms, latches, locks), and all other interior improvements of any nature whatsoever, all windows, window frames, plate glass, glazing, truck doors, main plumbing systems of the building Building (such as water and drain lines, sinks, toilets, faucets, drains, showers and water fountains), main electrical systems (such as panels and conduits), heating and air conditioning systems (such as with the exception of main control consoles, compressors, fans, air handlers, ducts, boilers, heaters), store fronts, roofs, downspouts, building common area interiors (such as wall coverings, window coverings, floor coverings and partitioning), ceilings, building exterior doors, skylights (if any), automatic fire extinguishing systems and elevators; license, permit, and inspection fees; security; salaries and employee benefits of personnel and payroll taxes applicable thereto; supplies, materials, equipment and tools; the cost of capital expenditures which have the effect of reducing operating expenses, provided, however, that in the event Landlord makes such capital improvements which exceed Seventy Five Thousand ($75,000.00), Landlord shall amortize its investment in said improvements (together with interest at the rate of eight (8%) percent per annum on the unamortized balance) as an operating expense over the useful life of the capital improvement in a manner consistent with industry practice. Tenant hereby waives all rights under, and benefits of, subsection I of Section 1932 and Sections 1941 and 1942 of the California Civil Code and under any similar law, statute or ordinance now or hereafter in effect. Should Tenant replace the carpet in the Premise office spaces during the Lease term, Tenant agrees to provide carpet xxxxxxx shields under all rolling chairs or to otherwise be responsible for wear and xxxx xxd tear of the carpet caused by such rolling chairs if such wear and tear exceeds that caused by normal foot traffic in surrounding areas (“areas. Areas of Excessive Wear”). Such Areas of Excessive Wear excessive wear shall be replaced at Tenant’s 's sole expense upon Lease termination. Additional Rent as used herein shall not include Landlord's debt repayments; interest on charges; expenses directly or indirectly incurred by Landlord for the benefit of any other tenant; cost for the installation of partitioning or any other tenant improvements; cost of attracting tenants; depreciation; interest, or executive salaries. Tenant agrees to provide for appropriate janitorial service for the leased Premises and to maintain the Complex in good condition.

EXPENSES OF OPERATION. MANAGEMENT MANAGEMENT, AND MAINTENANCE OF THE COMMON AREAS OF THE COMPLEX, PREMISES PARCEL AND BUILDING IN WHICH THE PREMISES ARE LOCATED. A. Maintenance of the Common Areas of the Parcel. Landlord shall operate, manage and maintain the Common Areas of the Parcel. As Additional Rent and in accordance with Paragraph 4(D) 4.D of this Lease, Tenant shall pay to Landlord Tenant’s proportionate share (calculated on a square footage or other equitable basis as calculated by Landlord) Proportionate Share of all expenses of operation, management, maintenance and repair of the Common Areas of the Complex Parcel including, but not limited to, license, permit, management fees (not to exceed 3.0% of the gross rental income of the Complex) and inspection fees; security; utility charges associated with exterior landscaping and lighting (including water and sewer charges); all charges incurred in the maintenance and replacement of landscaped areas, lakes, if any, parking lotslots and paved areas (including repairs, replacement, resealing and restriping), sidewalks, driveways; , maintenance, repair and replacement of all fixtures and electrical, mechanical and plumbing systems; structural elements and exterior surfaces of the buildings; salaries and employee benefits of personnel and payroll taxes applicable thereto; supplies, materials, equipment and tools; the cost of capital expenditures which have the effect of reducing operating expenses, provided, however, that in the event Landlord makes such capital improvements which exceed Seventy Five Thousand Dollars ($75,000.00)improvements, Landlord shall amortize its investment in said improvements (together with interest at the higher of (i) ten percent (10%) per annum, (ii) the prime rate of eight interest plus one or (8%iii) percent per annum Landlord’s borrowing rate on the unamortized balancebalance if Landlord elects to allocate payment to Tenant monthly over the Term of the Lease, rather than requiring Tenant to pay such amortized costs in one lump sum) (“Amortized Cost”) as an operating expense over in accordance with standard accounting practices, provided, that such amortization is not at a rate greater than the useful life anticipated savings in the operating expenses. B. Maintenance of the capital improvement in a manner consistent with industry practiceCommon Areas of the Building. Landlord shall operate, manage and maintain the Common Areas of the Building. As Additional Rent and in accordance with Paragraph 4(D) 4.D of this Lease, Tenant shall pay its proportionate share (calculated on a square footage , or other equitable basis as calculated by Landlord) Proportionate Share of the cost of operation (including common utilities), management, maintenance maintenance, and repair of the Premises and the building Building (including structural and common areas such as lobbies, restrooms, janitor’s closets, hallways, elevators, mechanical and telephone rooms, stairwells, entrances, spaces above the ceilingsceilings and janitorization of said common areas) in which the Premises are located. The maintenance items herein referred to include, but are not limited to, janitorization, electrical systems (such as outlets, lighting fixtures, lamps, bulbs, tubes, ballasts), heating and air conditioning controls (such as mixing boxes, thermostats, time clocks, supply and return grills), all interior improvements within the Premises including but not limited to: wall coverings, window coverings, acoustical ceilings, vinyl tile, carpeting, partitioning, doors (both interior and exterior, including closing mechanisms, latches, locks), and all other interior improvements of any nature whatsoever, all windows, window frames, plate glass, glazing, truck doors, main plumbing systems of the building Building (such as water and drain lines, sinks, toilets, faucets, drains, showers and water fountains), main electrical systems (such as panels and conduits), heating and air air-conditioning systems (such as compressors, fans, air handlers, ducts, boilers, heaters), structural elements and exterior surfaces of the Building; store fronts, roofsroof, downspouts, building Building common area interiors (such as wall coverings, window coverings, floor coverings and partitioning), ceilings, building Building exterior doors, skylights (if any), automatic fire extinguishing systems systems, and elevatorselevators (if any); license, permit, permit and inspection fees; security; salaries and employee benefits of personnel and payroll taxes applicable thereto; , supplies, materials, equipment and tools; the cost of capital expenditures which have the effect of reducing operating expenses, provided, however, that in the event Landlord makes such capital improvements which exceed Seventy Five Thousand ($75,000.00)improvements, Landlord shall amortize its investment in said improvements (together with interest at the higher of (i) ten percent (10%) per annum, (ii) the prime rate of eight interest plus one or (8%iii) percent per annum Landlord’s borrowing rate on the unamortized balancebalance if Landlord elects to allocate payment to Tenant monthly over the Term of the Lease, rather than requiring Tenant to pay such amortized costs in one lump sum) (“Amortized Cost”) as an operating expense over in accordance with standard accounting practices, provided, that such amortization is not at a rate greater than the useful life of anticipated savings in the capital improvement in a manner consistent with industry practiceoperating expenses. Tenant hereby waives all rights underhereunder, and benefits of, subsection I 1 of Section 1932 and Sections 1941 and 1942 of the California Civil Code and under any similar law, statute or ordinance now or hereafter in effect. Should Tenant replace the carpet in the Premise office spaces during the Lease term, Tenant agrees to provide carpet xxxxxxx under all rolling chairs or to otherwise be responsible for wear and tear of the carpet caused by such rolling chairs if such wear and tear exceeds that caused by normal foot traffic in surrounding areas (“Areas of Excessive Wear”). Such Areas of Excessive Wear shall be replaced at Tenant’s sole expense upon Lease termination.

EXPENSES OF OPERATION. MANAGEMENT MANAGEMENT, AND MAINTENANCE OF THE COMMON AREAS OF THE COMPLEX, PREMISES PARCEL AND BUILDING IN WHICH THE PREMISES ARE LOCATED. : As Additional Rent and in accordance with Paragraph 4(D) 4D of this Lease, Tenant shall pay to Landlord Tenant’s 's proportionate share (calculated on a square footage or other equitable basis as calculated by Landlordlandlord) of all expenses of operation, management, maintenance and repair of the Common Areas of the Complex Parcel including, but not limited to, license, permit, management fees (not to exceed 3.0% of the gross rental income of the Complex) and inspection fees; security; utility charges associated with exterior landscaping and lighting (including water and sewer charges); all charges incurred in the maintenance and replacement of landscaped areas, lakes, parking lotslots and paved areas (including repairs, replacement, resealing and restriping), sidewalks, driveways; , maintenance, repair and replacement of all fixtures and electrical, mechanical and plumbing systems; structural elements and exterior surfaces of the buildings; salaries and employee benefits of personnel and payroll taxes applicable thereto; supplies, materials, equipment and tools; the cost of capital expenditures which have the effect of reducing operating expenses, provided, however, that in the event Landlord makes such capital improvements which exceed Seventy Five Thousand Dollars ($75,000.00)improvements, Landlord shall may amortize its investment in said improvements (together with interest at the rate of eight fifteen (815%) percent per annum on the unamortized balance) as an operating expense over in accordance with standard accounting practices, provided, that such amortization is not at a rate greater than the useful life of anticipated savings in the capital improvement in a manner consistent with industry practiceoperating expenses. As Additional Rent and in accordance with Paragraph 4(D) 4D of this Lease, Tenant shall pay its proportionate share (calculated on a square footage , or other equitable basis as calculated by Landlord) of the cost of operation (including common utilities), management, maintenance maintenance, and repair of the Premises and the building (including structural and common areas such as lobbies, restrooms, janitor’s 's closets, hallways, elevators, mechanical and telephone rooms, stairwells, entrances, spaces above the ceilingsceilings and janitorization of said common areas) in which the Premises are located. The maintenance items herein referred to include, but are not limited to, janitorization, electrical systems (such as outlets, lighting fixtures, lamps, bulbs, tubes, ballasts), heating and air conditioning controls (such as mixing boxes, thermostats, time clocks, supply and return grills), all interior improvements within the Premises including but not limited to: wall coverings, window coverings, acoustical ceilings, vinyl tile, carpeting, partitioning, doors (both interior and exterior, including closing mechanisms, latches, locks), and all other interior improvements of any nature whatsoever, all windows, window frames, plate glass, glazing, truck doors, main plumbing systems of the building (such as water and drain lines, sinks, toilets, faucets, drains, showers and water fountains), main electrical systems (such as panels and conduits), heating and air conditioning airconditioning systems (such as compressors, fans, air handlers, ducts, boilers, heaters), structural elements and exterior surfaces of the building; store fronts, roofsroof, downspouts, building common area interiors (such as wall coverings, window coverings, floor coverings and partitioning), ceilings, building exterior doors, skylights (if any), automatic fire extinguishing systems systems, and elevatorselevators (if any); license, permit, permit and inspection fees; security; salaries and employee benefits of personnel and payroll taxes applicable thereto; , supplies, materials, equipment and tools; the cost of capital expenditures which have the effect of reducing operating expenses, provided, however, that in the event Landlord makes such capital improvements which exceed Seventy Five Thousand ($75,000.00)improvements, Landlord shall may amortize its investment in said improvements (together with interest at the rate of eight fifteen (815%) percent per annum on the unamortized balance) as an operating expense over in accordance with standard accounting practices, provided, that such amortization is not at a rate greater than the useful life of anticipated savings in the capital improvement in a manner consistent with industry practiceoperating expenses. Tenant hereby waives all rights underhereunder, and benefits of, subsection I of Section 1932 and Sections 1941 and 1942 of the California Civil Code and under any similar law, statute or ordinance now or hereafter in effect. Should Tenant replace the carpet in the Premise office spaces during the Lease term, Tenant agrees to provide carpet xxxxxxx under all rolling chairs or to otherwise be responsible for wear and tear of the carpet caused by such rolling chairs if such wear and tear exceeds that caused by normal foot traffic in surrounding areas (“Areas of Excessive Wear”). Such Areas of Excessive Wear shall be replaced at Tenant’s sole expense upon Lease termination.