AS HEREINAFTER DEFINED, MORTGAGE INTEREST AND
DEPRECIATION.
WITHOUT LIMITATION TO THE FOREGOING, THE TERM "OPERATING COSTS"
SHALL MEAN THOSE COSTS INCURRED DURING EACH YEAR OF THE TERM IN RESPECT OF THE
OPERATIONS AND MAINTENANCE OF THE LAND AND THE BUILDING IN ACCORDANCE WITH
ACCEPTED PRINCIPLES OF SOUND MANAGEMENT AND ACCOUNTING PRACTICES AS APPLIED TO
THE OPERATION AND MAINTENANCE OF FIRST CLASS OFFICE BUILDINGS IN DENVER,
INCLUDING THE COST OF OR CHARGES FOR THE FOLLOWING BY WAY OF ILLUSTRATION BUT
WITHOUT LIMITATION:
LANDSCAPING AND SNOW REMOVAL, WATER AND SEWER, INSURANCE
PREMIUMS, LICENSES, PERMITS AND INSPECTIONS, HEAT, LIGHT, ELECTRICAL POWER,
STEAM, SECURITY, JANITORIAL SERVICES, MAINTENANCE OF AND REPAIRS TO EQUIPMENT
SERVICING THE LAND OR THE BUILDING (INCLUDING COSTS ASSOCIATED TO ENSURE THE
ACCURATE PROCESSING OF DATA), WINDOW CLEANING, REFUSE REMOVAL SERVICES, AIR
CONDITIONING, SUPPLIES, MATERIALS, EQUIPMENT AND TOOLS, ADMINISTRATION AND
MANAGEMENT OF THE LAND AND THE BUILDING, CHANGING THE BUILDING'S ELECTRIC
SERVICE PROVIDER AND ASSOCIATED INSTALLATION, MAINTENANCE, REPAIR AND SERVICE
COSTS, PERSONAL PROPERTY TAXES ON THE PERSONAL PROPERTY USED IN THE OPERATION OF
THE LAND OR THE BUILDING, THE COST, AS REASONABLY AMORTIZED BY LANDLORD WITH
INTEREST AT ONE AND ONE-HALF PERCENT (1-1/2%) ABOVE THE PRIME RATE ANNOUNCED
FROM TIME TO TIME BY THE WELLS FARGO BANK OF DENVER, N.A., OR ITS SUCCESSOR, ON
THE UNAMORTIZED AMOUNT OF ANY CAPITAL IMPROVEMENT MADE AFTER
4
THE COMMENCEMENT DATE WHICH REDUCES OPERATING COSTS BUT IN AN AMOUNT NOT TO
EXCEED SUCH REDUCTION FOR THE RELEVANT YEAR, AND THE COST OF CONTESTING BY
APPROPRIATE PROCEEDINGS THE APPLICABILITY TO THE BUILDING OR THE LAND OR THE
VALIDITY OF ANY STATUTE, ORDINANCE, RULE OR REGULATION AFFECTING THE BUILDING
AND THE LAND WHICH MIGHT INCREASE OPERATING COSTS.
IF THE OCCUPANCY LEVEL IN
THE BUILDING IS LESS THAN 95%, OPERATING COSTS WILL BE ADJUSTED TO REFLECT THE
BUILDING AT A 95% OCCUPANCY LEVEL.
OPERATING COSTS SHALL NOT INCLUDE COSTS FOR
REPAIRS OR OTHER WORK OCCASIONED BY FIRE, WINDSTORM OR OTHER INSURED CASUALTY TO
THE EXTENT RECOVERED BY INSURANCE PROCEEDS; COST INCURRED IN LEASING OR
PROCURING NEW TENANTS (I.E., LEASE COMMISSIONS, ADVERTISING COSTS AND COSTS FOR
RENOVATING SPACE FOR NEW TENANTS); LEGAL COSTS IN ENFORCING THE TERMS OF ANY
LEASE; INTEREST OR AMORTIZATION PAYMENTS ON ANY MORTGAGE OR MORTGAGES; OR RENTAL
FOR ANY GROUND OR UNDERLYING LEASE OR LEASES.
IF LANDLORD MAKES ANY CAPITAL
IMPROVEMENT DURING THE TERM OF THIS LEASE IN ORDER TO COMPLY WITH SAFETY OR ANY
OTHER REQUIREMENTS OF ANY FEDERAL, STATE OR LOCAL LAW OR GOVERNMENTAL
REGULATION, THEN THE TENANT SHALL BE RESPONSIBLE FOR ITS PROPORTIONATE SHARE OF
ANY SUCH CHARGES, WITH INTEREST AT ONE AND ONE-HALF PERCENT (1-1/2%) ABOVE THE
PRIME RATE ANNOUNCED FROM TIME TO TIME BY WELLS FARGO BANK OF DENVER, N.A., OR
ITS SUCCESSORS.
FOR THE PRECEDING SENTENCE, TENANT'S PROPORTIONATE SHARE OF
SAID CHARGES IS DETERMINED BY MULTIPLYING THE ANNUAL AMORTIZATION OF SAID
CHARGES AS DETERMINED BY GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BY TENANT'S
PROPORTIONATE SHARE.
SAID AMOUNT WITH INTEREST SHALL BE DEEMED AN OPERATING
COST IN EACH OF THE CALENDAR YEARS