OPERATING EXPENSE EXCLUSIONS

(i) marketing costs, including, without limitation, leasing commissions, attorneys' fees (including,
without limitation, those in connection with the negotiation and preparation of letters, deal memos, letters
of intent, lease, subleases and/or assignment), space planning costs, and other costs and disbursements
and other expenses incurred in connection with leasing, subleasing, assignment, renovating or improving
space for tenants, other occupants, or prospective tenants or other occupants of the Building or Project; or
similar costs incurred in connection with disputes with tenants, other occupants, or prospective tenants or
other occupants of the Building or Project;

(ii) allowances and other costs and expenses (including permit, license and inspection fees but
excluding normal maintenance, repair and replacement costs) incurred in fixturing, furnishing, renovating
or otherwise improving or decorating, painting or redecorating space for tenants or prospective tenants of
the Building or Project, or vacant leasable space in the Building;

(iii) Landlord's costs of any services sold to tenants for which Landlord has been reimbursed by such
tenants as an additional charge or rental over and above the Base Rental and Actual Operating Expenses;

(iv) non-cash items, such as deductions for depreciation or obsolescence of the Project and the Project
equipment, or interest on capital invested and any depreciation and amortization on the Building and
Project except expressly permitted herein. It being expressly agreed that any depreciation and
amortization of Significant Repairs and Maintenance shall not be included within the definition of Actual
Operating Expenses. The term "Significant Repairs and Maintenance" shall mean repairs and
maintenance of a material nature which are not typically performed on an annual basis, including, without
limitation, chiller or other equipment repair and painting and redecoration of, and replacement of carpet
in, the common areas and/or the service areas.;

(v) interest on debt or amortization payments on any mortgages or deeds of trust or any other debt for
borrowed money, except as included herein;

(vi) all items and services for which Tenant reimburses Landlord outside of Actual Operating
Expenses or pays third persons;

(vii) repairs or other work occasioned by fire, windstorm or other work paid for through insurance or
condemnation proceeds;

(viii) payments of principal and interest or other finance charges made on any debt and rental payments
made under any ground or underlying lease or leases, except to the extent that a portion of such payments
are expressly for ad valorem/real estate taxes or insurance premiums on the Building and/or Project;

(ix) costs incurred by Landlord in the sale, financing, refinancing, mortgaging, selling or change of
ownership of the Project, including brokerage commissions, attorneys’ and accountants’ fees, closing
costs, title insurance premiums, transfer taxes and interest charges;

(x) costs which are to be capitalized in accordance with generally accepted accounting principles
consistently applied except as otherwise provided herein;

(xi) costs and expenses attributable to the initial construction of the Building and/or Project;
(xii) any penalty charges incurred by Landlord due to Landlord’s late payment of taxes, utility bills, or
other amounts included in Actual Operating Expenses except to the extent Landlord was contesting the
payment of such item in good faith;

(xiii) cost of any political or charitable donation or contributions;

(xiv) special cleaning or other services not provided on a regular basis to tenants of the Building or
Project;

(xv) all cost and expenses of operating the garage and commercial space in the Building or otherwise
located on the Project;

(xvi) the cost of any electric current furnished to the Leased Premises or any rentable area of the
Building for purposes other than the operation of Building equipment and machinery and the lighting of
public toilets, stairways, shaftways, and building machinery or fan rooms;

(xvii) the cost of any repair made by Landlord because of the total or partial destruction of the Building,
Project, or garage or the condemnation of a portion of the Building, Project, or garage;

(xviii) any insurance premium to the extent that Landlord is entitled to be reimbursed for it by Tenant
pursuant to this Lease or by any tenant or other occupant of the Building or Project pursuant to a similar
lease other than pursuant to clauses herein;

(xix) the cost of any items for which Landlord is reimbursed by insurance or otherwise compensated by
parties other than tenants of the Building pursuant to clauses herein;

(xx) any Actual Operating Expense representing an amount paid to a related corporation, entity, or
person that is in excess of the amount that would be paid in the absence of such relationship;

(xxi) the cost of any work or service performed for or facilities furnished to any tenant or occupant of
the Building or Project to a greater extent or in a manner more favorable to such tenant than that
performed for or furnished to Tenant;

(xxii) the cost of overtime or other expense to Landlord in curing its defaults or performing work
expressly provided in this Lease or other leases to be borne at Landlord's expense;

(xxiii) amounts paid (including interest) on account of or to cure statutes, laws, notes, or ordinances by
Landlord or any part of the Project;

(xxiv) Landlord’s general corporate overhead and general and administrative expenses;

(xxv) any compensation paid to clerks, attendants or other persons in commercial concessions operated
by Landlord or in the garage or wherever tenant is granted parking privileges and/or all fees paid to any
parking facility operator (on or off site), provided, however, that if Landlord provides such parking to
Tenant free of charge or at a reduced rate, to the extent that Tenant’s pro rata share of such expenses
exceeds any amount paid by Tenant for such parking, these expenses may be included as part of the
Actual Operating Expenses;
(xxvi) overhead and profit increment paid to Landlord or to subsidiaries or affiliates of Landlord for
goods and/or services in or to the Project to the extent same exceeds the costs of such goods and/or
services rendered by unaffiliated third parties on a competitive basis;

(xxvii) the costs of signs in or on the Building or Project identifying the owner of the Building or Project
or other tenant’s or occupant’s signs;

(xxviii) costs incurred in connection with upgrading the Building or other portions of the Project to
comply with life, fire and safety codes, ordinances, statutes or other laws, including, without limitation,
the ADA, including penalties or damages incurred due to such non-compliance;

(xxix) costs for which Landlord has been compensated by a management fee;

(xxx) costs arising from the negligence or fault of other tenants or occupants or Landlord or its agents,
or any vendors, contractors, or providers of materials or services selected, hired or engaged by Landlord
or its agents, including, without limitation, the selection of Building and/or Project materials;

(xxxi) any and all costs arising from the presence of Hazardous Materials (as defined herein) in or about
the Leased Premises, the Building or the Project, including, without limitation, Hazardous Material in the
ground water or soil, not placed in the Leased Premises, the Building or the Project by Tenant;

(xxxii) costs for the acquisition of (as contrasted with the maintenance of) sculpture, paintings or other
objects of art;

(xxxiii) costs associated with the operation of the business of the partnership or entity which constitutes
Landlord as the same are distinguished from the costs of operation of the Building, including corporate
accounting and legal matters, costs of defending lawsuits with or claims by any mortgagee (except as the
actions of Tenant may be in issue), costs of selling, syndicating, financing, mortgaging, or hypothecating
any of the Landlord’s interest in the Building or the Project, costs of any disputes between Landlord and
its employees (if any) not engaged in the Building or the Project operation, disputes of Landlord with
Building or Project management, or outside fees paid in connection with disputes with other tenants or
other occupants;

(xxxiv) costs incurred in connection with the any environmental clean-up, response action, or remediation
on, in, under or about the Leased Premises or the Building or Project, including, but not limited to, costs
and expenses associated with the defense, administration, settlement, monitoring or management thereof;

(xxxv) any entertainment, dining or travel expenses for any purpose;

(xxxvi) any flowers, gifts, balloons, etc. provided to any entity whatsoever, to include, but not limited to,
Tenant, other tenants, occupants, employees, vendors, contractors, prospective tenants, occupants, and
agents;

(xxxvii) any “validated” parking for any person or entity;

(xxxviii) cost of any magazine, newspaper, trade or other subscriptions;

(xxxix) the cost of any training or incentive programs, other than for tenant life safety information
services;.
(xxxx) the cost of any “tenant relations” parties, events or promotions not consented to by any authorized
representative of Tenant in writing;

(xxxxi) “In-house” legal and/or accounting fees;

(xxxxii) reserves for bad debts or for future improvements, repairs, additions, etc.;

(xxxxiii) services and utilities provided, taxes attributable to, and costs incurred in connection with the
operation of the retail and restaurant operations in the Project; except to the extent the square footage of
such operations are included in the rentable square feet of the Building and do not exceed the services,
utility and tax costs that would have been incurred had the retail and/or restaurant space been used for
general office purposes;

(xxxxiii) costs arising from defects in the base, shell or core of the Building or improvements
installed by Landlord or repair thereof;

(xxxxiv) costs arising from any mandatory or voluntary special assessment on the Building or Project by
any transit district authority or any other governmental entity having the authority to impose such
assessment;

(xxxxv) costs (including in connection therewith all attorneys’ fees and costs of settlement judgments and
payments in lieu thereof) arising from claims, disputes or potential disputes in connection with potential
or actual claims litigation or arbitrations pertaining to Landlord and/or the Building and/or the Project;

(xxxxvi) costs of any “tap fees” or any sewer or water connection fees for the benefit of any
particular tenant or occupant of the Building or Project;

(xxxxvii) any “finder’s fees”, job placement costs or job advertising costs;

(xxxxviii) any “above-standard” cleaning, including, but not limited to construction clean-up or
special cleanings associated with parties/events and specific tenant of occupant requirements in excess of
service provided to Tenant, including related trash collection, removal, hauling and dumping; and

(xxxxix) any other expenses which, in accordance with generally accepted accounting principles,
consistently applied, would not normally be treated as Actual Operating Expenses by landlords of
comparable buildings.