definiens: shall mean the total costs and expenses incurred by or allocable to Landlord for management, operation and maintenance of the Improvements, the Center, the bu ildings in the Center, and the real property on whi ch the Center is located ( or, in the case of items that ar e determined and allocated on a stand - alone basis a s described in Section 7.1, that portion of the Center that consis ts of the separate legal parcel or parcels containi ng the buildings in which the Premises are located ), including, with out limitation, costs and expenses of ( i ) insurance ( including earthquake and environmental insurance ), property m anagement, landscaping, and the operation, repair a nd maintenance of buildings and Common Areas ; ( ii ) all utilities and services ; ( iii ) real and personal pr operty taxes and assessments or substitutes therefor levied or a ssessed against the Center or any part thereof, inc luding ( but not limited to ) any possessory interest, use, busin ess, license or other taxes or fees, any taxes impo sed directly on rents or services, any assessments or charges for p olice or fire protection, housing, transit, open sp ace, street or sidewalk construction or maintenance or other simil ar services from time to time by any governmental o r quasi - governmental entity, and any other new taxes on lan dlords in addition to taxes now in effect ; ( iv ) sup plies, equipment, utilities and tools used in management, operation and maintenance of the Center ; ( v ) expend itures for capital improvements to the Center, the Improvement s or the buildings in the Center, amortized over a reasonable period determined in accordance with gen erally accepted accounting principles applied on a consistent basis, ( aa ) which reduce or will cause f uture reduction of other items of Operating Expense s for which Tenant is otherwise required to contribute or ( bb ) which are required by law, ordinance, regulation or order of any governmental authority or ( cc ) of which Tenant has use or which benefit Tenant ; and ( vi ) any other costs ( including, but not limited to, any parking or util ities fees or surcharges ) allocable to or paid by L andlord, as owner of the Center, the buildings therein or the I mprovements, pursuant to any applicable laws, ordin ances, regulations or orders of any governmental or quasi- governmental authority or pursuant to the terms of any declarations of covenants, conditions and restricti ons now or hereafter affecting the Center or any ot her property over which Tenant has non - exclusive use rights as c ontemplated in Section 1.1(b ) hereof . Operating Exp enses shall not include any costs attributable to Landlor d ’s Work, nor any costs attributable to the initial construction of the buildings in the Center or of Common Area i m provements in the Center . The distinction between i tems of ordinary operating maintenance and repair and items of a capital nature shall be made in accordance wi th generally accepted accounting principles applied on a consistent basis or in accordance with tax accou nting principles, as determined in good faith by Landlord ’s accountants