Common use of ADDITIONAL RENT, OPERATING EXPENSE ADJUSTMENT Clause in Contracts

ADDITIONAL RENT, OPERATING EXPENSE ADJUSTMENT. Tenant shall pay as additional rent its proportionate share, as defined in paragraph 19.2, of the amount by which operating expenses for the Building increase over those experienced by Landlord during the calendar year 1997 (base year). Effective January 1 of each year Landlord shall estimate the amount by which operating expenses are expected to increase, if any, over those incurred in the base year. Monthly rental for that year shall be increased by one-twelfth of Tenant's share of the estimated increase. Following the end of each calendar year, Landlord shall compute the actual increase in operating expense and xxxx Tenant for any deficiency or credit Tenant with any excess collected. As used herein "operating expenses" shall mean all costs of operating and maintaining the Building as determined by standard real estate accounting practice, including, but not limited to: all water and sewer charges; the cost of natural gas and electricity Page 11 Please Initial --------- -------- Landlord Tenant provided to the Building; janitorial and cleaning supplies and services; administration costs and management fees; superintendent fees; security services, if any; insurance premiums; licenses; permits for the operation and maintenance of the Building and all of its component elements and mechanical systems; the annual amortized capital improvement cost (amortized over such a period as Landlord may select but not shorter than the period allowed under the Internal Revenue Code and at a current market interest rate) for any capital improvements to the Building required by any governmental authority or those which have a reasonable probability of improving the operating efficiency of the Building.

ADDITIONAL RENT, OPERATING EXPENSE ADJUSTMENT. Tenant shall pay as additional rent its proportionate share, as defined in paragraph 19.2, of the amount by which operating expenses for the Building increase over those experienced by Landlord during the calendar year 1997 (base year). Effective January 1 of each year Landlord shall estimate the amount by which operating expenses are expected to increase, if any, over those incurred in the base year. Monthly rental for that year shall be increased by one-twelfth of Tenant's share of the estimated increase. Following the end of each calendar year, Landlord shall compute the actual increase in operating expense and xxxx Tenant for any deficiency or credit Tenant with any excess collected. As used herein "operating expenses" shall mean all costs of operating and maintaining the Building as determined by standard real estate accounting practice, including, but not limited to: all water and sewer charges; the cost of natural gas and electricity Page 11 Please Initial --------- -------- -------- Landlord Tenant provided to the Building; janitorial and cleaning supplies and services; administration costs and management fees; superintendent fees; security services, if any; insurance premiums; licenses; permits for the operation and maintenance of the Building and all of its component elements and mechanical systems; the annual amortized capital improvement cost (amortized over such a period as Landlord may select but not shorter than the period allowed under the Internal Revenue Code and at a current market interest rate) for any capital improvements to the Building required by any governmental authority or those which have a reasonable probability of improving the operating efficiency of the Building.

ADDITIONAL RENT, OPERATING EXPENSE ADJUSTMENT. Tenant shall pay as additional rent its proportionate share, as defined in paragraph 19.2, Tenant’s Proportionate Share of the amount by which operating expenses for the Building increase over those experienced by Landlord during the calendar first full year 1997 of the lease term (base yearBase Year). Effective January 1 of each year 1, 2000, the Landlord shall estimate the amount by which operating expenses are expected to increase, if any, over those proposed or incurred in the base year. Monthly rental for that year shall be increased by one-twelfth of Tenant's ’s share of the estimated increase. Following the end of each calendar year, Landlord shall compute the actual increase in operating expense expenses and xxxx Tenant for any deficiency or credit Tenant with any excess collected. As used herein "“operating expenses" ” shall mean all costs of operating and maintaining the Building as determined by standard real estate accounting practice, including, but not limited to: all water and sewer charges; parking; landscaping; trash removal; the cost of natural gas and electricity Page 11 Please Initial --------- -------- Landlord Tenant provided to the Building; janitorial and cleaning supplies and services; administration costs and management fees; superintendent fees; security services, if any; insurance premiums; licenses; , permits for the operation and maintenance of the Building and all of its component elements and mechanical systems; the annual amortized capital improvement cost (amortized over such a period as Landlord may select but not shorter than the period allowed under the Internal Revenue Code and at a current market interest rate) for any capital improvements to the Building required by any governmental authority or those which have a reasonable probability authority. Operating expenses shall not include any item not charged to all other Tenants of improving the building, excepting excessive electrical useage, if any, by Tenant. Notwithstanding anything to the contrary in the Lease: (A) If the operating efficiency expenses for the Base Year are not based on a fully leased Building, then such amounts shall be increased to reflect a fully leased Building; and (B) operating expenses shall not include and Tenant shall in no event have any obligation to perform or to pay for the following (collectively, “Costs”): (a) Costs occasioned by the act, omission or violation of any Law by Landlord or any other occupant of the Building, or their respective agents, employees or contractors; (b) Costs occasioned by casualty or condemnation; (c) Costs to correct any construction defect in the Premises or the Building or to comply with any CC&Rs or Law applicable to the Premises or the Building on the Commencement Date; (d) Costs of any renovation, improvement, painting or redecorating of any portion of the Building not made available for Tenant’s use; (e) Costs incurred in connection with marketing or advertising the Building, or the violation by Landlord or any occupant of the Building (other than Tenant) of the terms and conditions of any lease or other agreement; (f) insurance Costs for coverage not customarily paid by tenants of similar projects in the vicinity of the Premises, increases in insurance Costs caused by the activities of another occupant of the Project, insurance deductibles in excess of $10,000, and co-insurance payments; (g) Costs incurred in connection with the presence of any Hazardous Material, except to the extent caused by the release or emission of the Hazardous Material in question by Tenant; (h) Costs in the nature of depreciation or other expense reserves; (i) Costs to repair, replace, restore or maintain the structural portions of the Building (including the structural portion of roofs) or the parking facilities serving the Building; (j) executives’ salaries; (k) Costs which could properly be capitalized under generally accepted accounting principles, except capital improvements to the Building required by Law not in effect as of the Commencement Date, capital improvements to the extent they reduce operating expenses, or capital improvements to restore or replace existing systems and components of the Building (except as otherwise excluded from operating expenses in this paragraph), and all such permitted capital improvements shall be amortized over the useful life of the capital item in question.

ADDITIONAL RENT, OPERATING EXPENSE ADJUSTMENT. Tenant shall pay as additional rent its proportionate share, as defined in paragraph 19.2Tenant’s Proportionate Share, of the amount by which operating expenses for the Building increase over those experienced by Landlord during the calendar year 1997 (base year)Base Year for expenses stated in the Basic Lease Terms. Effective January 1 of each year Landlord shall estimate the amount by which operating expenses are expected to increase, if any, over those incurred in the base year. Monthly rental rent for that year shall be increased by one-twelfth of Tenant's ’s share of the estimated increase, provided that Landlord may revise its estimate during any year with reasonable cause and the additional estimate shall be payable as equal additions to rent for the remainder of the calendar year. Following the end of each calendar year, Landlord shall compute the actual increase in operating expense expenses and xxxx bill Tenant for any deficiency or credit Tenant with any excess collected. Tenant shall pay any such deficiency within thirty (30) days after Landlord’s billing, whether or not this Lease shall have expired or terminated at the time of such billing. As used herein "“operating expenses" ” shall mean all costs of operating operating, maintaining and maintaining repairing the Building as determined by standard real estate accounting practice, including, but not limited to: all water and sewer charges; the cost of natural gas and electricity Page 11 Please Initial --------- -------- Landlord Tenant provided to the Building; janitorial and cleaning supplies and services; administration costs and market management fees; superintendent fees; security services, if any; insurance premiums; licenses; , permits for the operation and maintenance of the Building and all of its component elements and mechanical systems; ordinary and emergency repairs and maintenance, and the annual amortized capital improvement cost (amortized over such a period as Landlord may select but not shorter than the period allowed under the Internal Revenue Code and at a current market interest rate) for any capital improvements to the Building required by any governmental authority or those which have a reasonable probability of improving the operating efficiency of the Building.. “