MANAGEMENT, MAINTENANCE, REPAIR, REPLACEMENT OR OPERATION OF THE REAL
PROPERTY, ALL AS DETERMINED IN ACCORDANCE WITH SOUND REAL ESTATE MANAGEMENT
PRACTICES CONSISTENTLY APPLIED, INCLUDING, WITHOUT LIMITATION, ANY AMOUNTS PAID
FOR:
(I) THE COST OF OPERATING, MAINTAINING, REPAIRING, RENOVATING AND MANAGING
THE UTILITY SYSTEMS, MECHANICAL SYSTEMS, SANITARY AND STORM DRAINAGE SYSTEMS,
AND ANY ESCALATOR AND/OR ELEVATOR SYSTEMS, AND THE COST OF SUPPLIES AND
EQUIPMENT AND MAINTENANCE AND SERVICE CONTRACTS IN CONNECTION THEREWITH;
(II) THE COST OF LICENSES, CERTIFICATES, PERMITS AND INSPECTIONS AND THE COST OF
REASONABLY CONTESTING THE VALIDITY OR APPLICABILITY OF ANY GOVERNMENTAL
ENACTMENTS WHICH ARE REASONABLY ANTICIPATED TO REDUCE OPERATING EXPENSES, AND
THE COSTS INCURRED IN CONNECTION WITH THE IMPLEMENTATION AND OPERATION (BY
LANDLORD OR ANY COMMON AREA ASSOCIATION(S) FORMED FOR LNR WARNER CENTER) OF ANY
GOVERNMENT MANDATED TRANSPORTATION DEMAND MANAGEMENT PROGRAM (INCLUDING ANY SUCH
PROGRAM REQUIRED TO BE IMPLEMENTED FOR THE PROJECT BY THE CITY OF LOS ANGELES AS
A CONDITION TO THE CITY'S APPROVALS OF THE DEVELOPMENT OF THE PROJECT);
(III) SUBJECT TO THE RESTRICTIONS IN SECTIONS AND 4.3.6 BELOW, THE COST
OF INSURANCE CARRIED BY LANDLORD, IN SUCH AMOUNTS AS LANDLORD MAY REASONABLY
DETERMINE OR AS MAY BE REQUIRED BY THIS LEASE; PROVIDED, HOWEVER, TO THE EXTENT
LANDLORD ELECTS TO PROVIDE INSURANCE FOR UNUSUAL OR EXPENSIVE COVERAGES OR
ENDORSEMENTS SUCH AS EARTHQUAKE AND FLOOD AND THE SAME IS IN ADDITION TO ANY
INSURANCE REQUIRED TO BE MAINTAINED BY LANDLORD UNDER THIS LEASE, AND SUCH
INSURANCE IS MATERIALLY IN EXCESS OF THE TYPES OR AMOUNTS OF INSURANCE CARRIED
BY LANDLORDS OF COMPARABLE BUILDINGS (AS DEFINED BELOW) FOR SUCH UNUSUAL OR
EXPENSIVE COVERAGES OR ENDORSEMENTS, THE INCREMENTAL COST OF SUCH MATERIALLY
EXCESS INSURANCE SHALL NOT BE INCLUDED IN OPERATING EXPENSES; PROVIDED, FURTHER,
HOWEVER, THAT LANDLORD'S INSURANCE SHALL BE DEEMED TO HAVE SATISFIED SUCH
COMPARABLE BUILDINGS STANDARD AND THE FOREGOING EXCLUSION FROM OPERATING
EXPENSES SHALL NOT APPLY TO THE EXTENT THAT OTHER OFFICE BUILDINGS IN SOUTHERN
CALIFORNIA OWNED BY LANDLORD OR AN ENTITY AFFILIATED WITH OR RELATED TO LANDLORD
OR ANY OF LANDLORD'S MEMBERS OR SUBMEMBERS ARE COVERED BY SUBSTANTIALLY SIMILAR
INSURANCE COVERAGE TERMS PERTAINING TO SUCH UNUSUAL OR EXPENSIVE COVERAGES OR
ENDORSEMENTS (E.G., COVERAGE RATE AND DEDUCTIBLE PERCENTAGE(S) AS CARRIED BY
LANDLORD); (IV) THE COST OF LANDSCAPING, RELAMPING, AND ALL SUPPLIES, TOOLS,
EQUIPMENT AND MATERIALS USED IN THE OPERATION, REPAIR AND MAINTENANCE OF THE
REAL PROPERTY; (V) THE COST OF PARKING AREA REPAIR AND
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MAINTENANCE, INCLUDING, BUT NOT LIMITED TO, REPAINTING, RESTRIPING, AND
CLEANING; (VI) FEES, CHARGES AND OTHER COSTS, INCLUDING REASONABLE CONSULTING
FEES, LEGAL FEES AND ACCOUNTING FEES, OF ALL CONTRACTORS ENGAGED BY LANDLORD OR
OTHERWISE REASONABLY INCURRED BY LANDLORD IN CONNECTION WITH THE MANAGEMENT,
OPERATION, MAINTENANCE AND REPAIR OF THE REAL PROPERTY; (VII) ANY MANAGEMENT
AGREEMENTS, INCLUDING THE COST OF ANY MANAGEMENT FEE AND THE FAIR RENTAL VALUE
OF ANY ON-SITE MANAGEMENT OFFICE SPACE (NOT EXCEEDING 2,500 RENTABLE SQUARE
FEET) PROVIDED THEREUNDER, PROVIDED, HOWEVER, (I) THE MANAGEMENT FEE SHALL NOT
EXCEED THE GREATER OF (A) THREE AND ONE-HALF PERCENT (3.5%) OF THE GROSS