(e) All taxes, assessments and governmental charges whether federal, state,
county or municipal, and whether they be by taxing districts or authorities presently taxing the Complex, or by others, subsequently created or otherwise, and any other taxes and assessments attributable to the Complex or its operation including,
but not limited to, margin taxes on Base Rental and Additional Rent (collectively, “Real Estate Taxes”), excluding, however, (i) margin tax, if any, attributable to revenues from sources other than Landlord’s normal
business operations at the Complex, including, but not limited to, insurance proceeds, condemnation or eminent domain awards, revenue resulting from the sale of the Complex or any portion thereof or interest therein and revenues resulting from any
financing of the Complex or any portion thereof or interest therein, (ii) fines, penalties and interest incurred in connection with any late payment of Real Estate Taxes, (iii) income taxes, excise taxes, gift taxes, inheritance taxes,
death taxes, excess profit taxes, franchise taxes and capital taxes, (v) impact fees and other fees imposed in connection with the development of the Complex, (vi) mortgage recording taxes, (vii) taxes imposed on account of a transfer
of ownership of the Complex or any portion thereof or interest therein and (ix) taxes (other than existing margin taxes) imposed or measured by Landlord’s revenue from the operation of the Complex, unless such tax is assessed in lieu of an
ad valorem tax. It is agreed that Tenant will be responsible for ad valorem taxes on its personal property. All assessments imposed during the Term shall be calculated as if paid in the maximum number of installments and only such installments
coming due during a particular year of the Term shall be included in the Real Estate Taxes for such year, to the extent only that the applicable governmental authority allows such assessments to be paid in installments.
(f) Reasonable cost of repairs and general maintenance (excluding repairs and general maintenance paid by proceeds of
insurance or otherwise resulting from risks insured by insurance maintained by Landlord or which would have been insured under insurance policies required to be maintained by Landlord pursuant to this Lease, or by Tenant or other third parties, and
alterations attributable solely to tenants of the Building other than Tenant).
(g) Amortization with a market
rate of interest of the cost of installation of capital investment items which may be required by governmental authority due to a change in applicable Laws after the Commencement Date. All such costs shall be amortized over the reasonable life of
the capital investment items by an additional charge to the Rent and paid by Tenant as Additional Rent, with the reasonable life and amortization schedule being determined in accordance with generally accepted accounting principles and in no event
to extend beyond the reasonable life of the Complex.
(h) A management fee not to exceed the customary and
normal charge for providing such services by other management firms within the Dallas metropolitan area, but in no event in excess of three percent (3%) of the gross revenues of the Complex.
(i) Reasonable out-of-pocket maintenance and service fees by property owners associations, or such other associations,
for the up-keep of common areas of the Complex.
Notwithstanding anything in this Lease to the contrary, in no event shall
Operating Cost include any of the costs and expenses set forth on Exhibit “E” attached hereto (the “Excluded Operating Cost”), all of which are expressly excluded from Operating Cost.
Landlord shall use its best efforts to minimize such costs of operating and maintaining the Building and Complex in a manner consistent with first class
office buildings and in accordance with accepted principles of management and good accounting principles.
4.2 Tenant’s
Right to Perform Certain Services. Notwithstanding the above, Tenant shall have the right but not the obligation from time to time during the Term to contract for the following services: janitorial, security and landscape maintenance, subject to
Landlord’s prior approval of the contractor and the service contract, such approval not to be unreasonably withheld, delayed or conditioned. In the event Tenant desires to contract directly for such services, Tenant shall give Landlord notice
of such desire and Landlord shall provide Tenant with the earliest opportunity to terminate Landlord’s provider and Tenant shall take over such service on the date following the termination date of Landlord’s provider. Landlord shall have
the right to approve Tenant’s proposed service provider, such approval shall not be unreasonably withheld, conditioned or delayed. During the period Tenant contracts for any such services in lieu of Landlord’s service, the costs of
providing such services shall be excluded from the Expense Stop and from the Operating Cost during such period for purposes of determining the adjustment to Base Rental required under Section 5.1 below.
4.3 Replacement of Property Manager.
4.3.1 Landlord acknowledges that Tenant intends to use the Premises for its national headquarters, that Tenant is in the business of providing a high-end service within its industry and that brand
6