Common use of Operating Cost Escalation Clause in Contracts

Operating Cost Escalation. The LESSEE shall pay to the LESSOR as additional rent hereunder when and as designated by notice in writing by LESSOR, 6.28% of any increase in operating expenses over those incurred during the calendar year 2008 (hereinafter called the “OPEX Base Year”). Operating expenses are defined for the purposes of this lease in Exhibit E hereto. The LESSEE shall, effective January 1, 2009, make estimated installment payments as additional rent as and when the payment of base rent is due. During the calendar year 2009, the LESSEE’S estimated installment payments shall be 105% of the actual operating expenses assessed during calendar year 2008 less the OPEX Base Year amount. Thereafter, estimated operating expenses shall be based on 105% of the prior year’s actual operating expenses less the OPEX Base Year amount. As actual operating expenses will not be known until after the conclusion of each calendar year, retroactive adjustment to estimated payments shall be necessary when actual operating expenses are determined. After the end of each calendar year, as and when the actual operating expenses are available, LESSOR shall provide LESSEE written notice in reasonable detail of LESSEE’S pro rata share of the actual operating expenses for such calendar year less the OPEX Base Year amount, the estimated payments made by LESSEE on account thereof, and the new estimated payments calculated in accordance with the above. The LESSEE shall pay LESSOR, within thirty (30) days of receiving written notice thereof, the balance owed due to insufficient estimated payments made in accordance with the above, and the LESSOR shall credit the LESSEE’S account and deduct from the next monthly installments of base rent payable hereunder any excess estimated payments made in accordance with the above. Increases shall be prorated should this lease be in effect with respect to only a portion of any calendar year.

Operating Cost Escalation. The LESSEE shall pay to the LESSOR as additional rent hereunder when and as designated by notice in writing by LESSOR, 6.28% of any increase all increases or projected increases in operating expenses over those incurred during the calendar year 2008 (hereinafter called the “OPEX Base Year”)2006. Operating expenses are defined for For the purposes of this lease in Exhibit E hereto. The LESSEE shallparagraph, effective January 1, 2009, make estimated installment payments as additional rent as and when the payment of base rent is duecalendar year 2006 operating expenses shall be $1.20 per rentable square feet. During the calendar year 20092007, the LESSEE’S estimated operating expenses escalation paid by the LESSEE shall not increase by more than 5% over the above-mentioned calendar year 2006 operating expenses, the amount of the operating cost expenses incurred during calendar year 2007, subject to the 5% cap, shall be the “Operating Cost Base” (i.e. if the operating cost expenses incurred during calendar year 2007 is equal to $1.21 per rentable square feet, the Operating Cost Base shall be $1.21 per rentable square feet, if the operating cost expenses incurred during calendar year 2007 is equal to $1.31 per rentable square feet, the Operating Cost Base shall be $1.26 per rentable square feet which is the maximum amount allowed for calendar year 2007). During the calendar year 2008, and each year thereafter for the remainder of the lease term, the LESSEE shall pay to the LESSOR as additional rent hereunder when and as designated by notice in writing by LESSOR, all increases or projected increases in operating expenses incurred over the Operating Cost Base. Said payments shall include estimate installment payments shall be 105% based upon the LESSOR’S projection of the actual operating expenses assessed during calendar year 2008 less the OPEX Base Year amountexpenses. Thereafter, estimated Actual operating expenses shall be based on 105% of the prior year’s actual operating expenses less the OPEX Base Year amount. As actual operating cost expenses will not be known until after the conclusion of each calendar year, retroactive adjustment to estimated estimate payments shall be necessary when actual operating cost expenses are determined. After the end of each calendar year, as and when the actual operating expenses are available, LESSOR shall provide LESSEE written notice in reasonable detail of LESSEE’S pro rata share of the actual operating expenses for such calendar year less the OPEX Base Year amount, the estimated payments made by LESSEE on account thereof, and the new estimated payments calculated in accordance with the aboveknown. The LESSEE shall pay LESSOR, within thirty (30) days of receiving written notice thereof, the balance owed due to insufficient estimated payments made in accordance with the above, and the LESSOR shall credit the LESSEE’S account and deduct from the next monthly installments of base rent payable hereunder for any excess estimated payments made in accordance with the above. Increases Within thirty (30) days of its receipt of notice from LESSOR regarding the actual operating cost expenses for any calendar year, LESSEE may request additional written documentation evidencing the actual operating cost expenses for said calendar year and J.FSSOR shall provide such written documentation within thirty (30) days of such request. This request for information shall be in addition to the review or audit available to LESSEE as described below. Operating expenses are defined for the purposes of this agreement in Exhibit E hereto. This increase shall be prorated should this lease be in effect with respect to only a portion of any calendar year. Upon at least fourteen (14) days prior written notice from LESSEE, LESSOR shall make available to LESSEE at LESSOR’S address for review or audit by LESSEE and its agents during reasonable hours, all of LESSOR’S books, records and documents relating to Operating expenses and taxes for the Leased Premises for the then-current and the two most recent calendar years. LESSEE shall be entitled to one (1) such audit per calendar year.

Operating Cost Escalation. The Commencing as of February 1, 2018, the LESSEE shall pay to the LESSOR as additional rent hereunder when and as designated by notice in writing by LESSOR, 6.2818.51% of any increase in operating expenses over those incurred during the calendar year 2008 (hereinafter called the “OPEX Base Year”)2018. Operating expenses are defined for the purposes of this lease agreement in Exhibit E heretoE-1 hereto (as so defined, “Operating Expenses”). The LESSEE shall, effective January 1, 2009, 2019 make estimated installment payments as additional rent as and when the payment of base rent is due. During the calendar year 20092019, the LESSEE’S estimated installment payments shall be based on 105% of the actual operating expenses Operating Expenses assessed during calendar year 2008 2018 less the OPEX Base Year amountOperating Expenses base year amount or refund such amount to LESSEE at the end of the Term if such credit cannot be fully applied against rent. Thereafter, estimated operating expenses Operating Expenses shall be based on 105% of the prior year’s actual operating expenses Operating Expenses less the OPEX Base Year Operating Expenses base year amount. As actual operating expenses Actual Operating Expenses will not be known until after the conclusion of each calendar year, retroactive adjustment to estimated payments shall be necessary when actual operating expenses Operating Expenses are determinedknown. After the end of each calendar year, as and when the actual operating expenses Operating Expenses are availableavailable (with LESSOR endeavoring to provide same by April 30th of each year), LESSOR shall provide LESSEE written notice in reasonable detail of LESSEE’S pro rata share of the actual operating expenses Operating Expenses for such calendar year less the OPEX Base Year Operating Expenses base year amount, the estimated payments made by LESSEE on account thereof, and the new estimated payments calculated in accordance with the above. The LESSEE shall pay LESSOR, within thirty (30) days of receiving written notice thereof, the balance owed due to insufficient estimated payments made in accordance with the above, and the LESSOR shall credit the LESSEE’S account and deduct from the next monthly installments of base rent payable hereunder for any excess estimated payments made in accordance with the above. Increases shall be prorated should this lease be in effect with respect to only a portion of any calendar year.

Operating Cost Escalation. The During the Second Extended Term, the LESSEE shall pay to the LESSOR as additional rent hereunder when and as designated by notice in writing by LESSOR, 6.2813.53% of any increase in operating expenses over those incurred during the calendar year 2008 (hereinafter called the “OPEX Base Year”)2013. Operating expenses are defined for the purposes of this lease agreement in Exhibit E hereto. E. The LESSEE shall, effective January 1, 20092014, make estimated installment payments as additional rent as and when the payment of base rent is due. Operating expenses for any partial calendar year during the Second Extended Term will be prorated. During the calendar year 20092014, the LESSEE’S estimated installment payments shall be 105% of the actual operating expenses assessed during calendar year 2008 2013 less the OPEX Base Year amountoperating expenses base year amount for the Second Extended Term. Thereafter, estimated operating expenses shall be based on 105% of the prior year’s actual operating expenses less the OPEX Base Year amountoperating expenses base year amount for the Second Extended Term. As actual Actual operating expenses will not be known until after the conclusion of each calendar year, retroactive adjustment to estimated payments shall be necessary when actual operating expenses are determinedknown. After the end of each calendar year, as and when the actual operating expenses are available, LESSOR shall provide LESSEE written notice in reasonable detail of LESSEE’S pro rata share of the actual operating expenses for such calendar year less the OPEX Base Year amountoperating expenses base year amount for the Second Extended Term, the estimated payments made by LESSEE on account thereof, and the new estimated payments calculated in accordance with the above. The LESSEE shall pay LESSOR, within thirty (30) days of receiving written notice thereof, the balance owed due to insufficient estimated payments made in accordance with the above, and the LESSOR shall credit the LESSEE’S account and deduct from the next monthly installments of base rent payable hereunder for any excess estimated payments made in accordance with the above, or, in the event the lease has expired and no money is owed on the account of LESSEE, refund such excess to LESSEE. LESSEE percent of real estate tax escalation and operating cost escalation is calculated as follows: Leased Premises 12,989 rentable square feet, divided by total building 95,989 rentable square feet equals 13.53%. Increases shall be prorated should this lease be in effect with respect to only a portion of any calendar year. Notwithstanding anything herein to the contrary, nothing in this Second Amendment shall release or waive any obligations of the LESSEE under the Initial Lease or First Amendment to pay real estate tax escalations and operating cost escalations which accrue prior to April 1, 2014.