Laserfiche WebLink
does not include any insurance proceeds other than any rental interruption insurance proceeds. <br />Any credit consideration shall be included in Gross Revenues at the time cash proceeds <br />(principal, interest and/or other) are received. Borrower shall establish and maintain accounts for <br />the Gross Revenues (the "'Project Accounts") that are segregated from revenues and income <br />received by Borrower from all other projects. Gross Revenues shall also include all interest <br />earned on the Project Accounts to the extent interest is released from the Project Accounts. <br />Gross Revenues do not include the proceeds of any loans or capital contributions made to <br />Borrower, Refinancing Proceeds or Sale Proceeds. <br />"Operating Expenses" shall mean the sum of the following: <br />(i) payments of principal and interest and all other charges relating to the Senior <br />Loan(s), exclusively including required payments under the Chase Bank, N.A. Loan, and the <br />VHHP Loan (any additional loans to the project must be approved by the City); <br />a property management fee no greater than 8% of gross rents; <br />(iii) Owner Partnership Management and Asset Management Fees not to exceed 5% <br />of gross rents; <br />(iv) Deposits into required reserves required by any lender or Borrower's <br />Partnership Agreement; <br />(v) all other actual, reasonable cash operating costs and expenses, calculated on an <br />annual basis, that are directly attributable to managing and operating the Property and the <br />Borrower, including, without limiting the generality of the foregoing, the following: costs and <br />expenses for real and personal property taxes, special assessments or similar charges; water, fuel, <br />electricity and other utilities; heating, ventilation and air conditioning expenses; labor; supplies; <br />tools; equipment; insurance; advertising and marketing; accounting and legal fees; brokerage <br />commissions and other leasing expenses; reasonable reserves for all anticipated expenses as <br />approved by the City; and other such items constituting operation, maintenance and repair costs <br />actually paid by the Borrower, subject to the following conditions: <br />(a) Depreciation and amortization expenses shall not be considered <br />Operating Expenses, except as otherwise provided herein. <br />(b) Reserved. <br />(c) Any expenses, compensation or fees paid to any affiliate of Borrower <br />shall only be included as Operating Expenses to the extent they are not in excess of the <br />reasonable expenses, compensation or fees which would be payable to unrelated third parties in <br />arms -length transactions for similar services in the Santa Ana, California area. <br />(vi) Any other expenses necessary to meet senior lender requirements and requirements <br />of Borrower's limited partner, or its assignee, as set forth in Borrower's Amended and Restated <br />3 <br />