Common use of OPERATING EXPENSE INCREASE Clause in Contracts

OPERATING EXPENSE INCREASE. Lessee shall pay to Lessor during the term hereof, in addition to the Base Rent, Xxxxxx's Share, as hereinafter defined, of the amount by which all Operating Expenses, as hereinafter defined, for each Comparison Year exceeds the amount of all Operating Expenses for the Base Year, such excess being hereinafter referred to as the "Operating Expense Increase," in accordance with the following provisions: (a) "Lessee's Share" is defined, for purposes of this Lease, as the percentage set forth in paragraph 1.10 of the Basic Lease Provisions, which percentage has been determined by dividing the approximate square footage of the Premises by the total approximate square footage of the rentable space contained in the Office Building Project. It is understood and agreed that the square footage figures set forth In the Basic Lease Provisions are approximations which Lessor and Lessee agree are reasonable and shall not be subject to revision except in connection with an actual change in the size of the Premises or a change in the space available for lease in the Office Building Project. (b) "Base Year" is defined as the calendar year in which the Lease term commences. (c) "Comparison Year" is defined as each calendar year during the term of this Lease subsequent to the Base Year; provided, however, Lessee shall have no obligation to pay a share of the Operating Expense Increase applicable to the first twelve (12) months of the Lease Term (other than such as are mandated by a governmental authority, as to which government mandated expenses Lessee shall pay Lessee's Share, notwithstanding they occur during the first twelve (12) months). Xxxxxx's Share of the Operating Expense Increase for the first and last Comparison Years of the Lease Term shall be prorated according to that portion of such Comparison Year as to which Xxxxxx is responsible for a share of such increase. (d) "Operating Expenses" is defined, for purposes of this Lease, to include all costs, if any, incurred by Lessor in the exercise of its reasonable discretion, for: (I)The operation, repair, maintenance, and replacement, in neat, clean, safe, good order and condition, of the Office Building Project, including but not limited to, the following: (aa) The Common Areas, including their surfaces, coverings, decorative items, carpets, drapes and window coverings, and including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, stairways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, Common Area lighting facilities, building exteriors and roofs, fences and gates; (bb) All heating, air conditioning, plumbing, electrical systems, life safety equipment, telecommunication and other equipment used in common by, or for the benefit of, lessees or occupants of the Office Building Project, including elevators and escalators, tenant directories, fire detection systems including sprinkler system maintenance and repair. (ii) Trash disposal, janitorial and security services; (ii) Any other service to be provided by Lessor that is elsewhere in this Lease stated to be an "Operating Expense"; (iv) The cost of the premiums for the liability and property insurance policies to be maintained by Lessor under paragraph 8 hereof; (v)The amount of the real property taxes to be paid by Lessor under paragraph 10. 1 hereof', (vi) The cost of water, sewer, gas, electricity, and other publicly mandated services to the Office Building Project; (vii)Labor, salaries and applicable fringe benefits and costs, materials, supplies and tools, used in maintaining and/or cleaning the Office Building Project and accounting and a management fee attributable to the operation of the Office Building Project; (viii) Replacing and/or adding improvements mandated by any governmental agency and any repairs or removals necessitated thereby amortized over its useful life according to Federal income tax regulations or guidelines for depreciation thereof (including interest on the unamortized balance as is then reasonable in the judgment of Xxxxxx's accountants); (ix) Replacements of equipment or improvements that have a useful life for depreciation purposes according to Federal income tax guidelines of five (5) years or less, as amortized over such life. (e) Operating Expenses shall not include the costs of replacements of equipment or improvements that have a useful life for Federal income tax purposes in excess of five (5) years unless it is of the type described in paragraph 4.2(d)(viii), in which case their cost shall be included as above provided. (f) Operating Expenses shall not include any expenses paid by any lessee directly to third parties, or as to which Xxxxxx is otherwise reimbursed by any third party, other tenant, or by insurance proceeds. (g) Xxxxxx's Share of Operating Expense Increase shall be payable by Lessee within ten (10) days after a reasonably detailed statement of actual expenses is presented to Lessee by Xxxxxx. At Lessor's option, however, an amount may be estimated by Xxxxxx from time to time in advance of Xxxxxx's Share of the Operating Expense Increase for any Comparison Year, and the same shall be payable monthly or quarterly, as Lessor shall designate, during each Comparison Year of the Lease term, on the same day a the Base Rent is due hereunder. In the event that Lessee pays Lessor's estimate of Xxxxxx's Share of Operating Expense Increase as aforesaid, Lessor shall deliver to Lessee within sixty (60) days after the expiration of each Comparison Year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expense Increase incurred during such year. If Xxxxxx's payments under this paragraph 4.2(g) during said Comparison year exceed Xxxxxx's Share as indicated on said statement, Lessee shall be entitled to credit the amount of such overpayment against Xxxxxx's Share of Operating Expense Increase next failing due. If Xxxxxx's payments under this paragraph during said Comparison Year were less than Xxxxxx's Share as indicated on said statement, Lessee shall pay to Lessor the amount of the deficiency within ten (10) days after delivery by Lessor to Xxxxxx of said statement. Lessor and Xxxxxx shall forthwith adjust between them by cash payment any balance determined to exist with respect to that portion of the last Comparison Year for which Lessee is responsible as to Operating Expense Increases, notwithstanding that the Lease term may have terminated before the end of such Comparison Year. 4.3

OPERATING EXPENSE INCREASE. Lessee shall pay to Lessor during the term hereof, in addition to the Base Rent, XxxxxxLessee's Share, as hereinafter defined, of the amount by which all Operating Expenses, as hereinafter defined, for each Comparison Year exceeds the amount of all Operating Expenses for the Base Year, such excess being hereinafter referred to as the "Operating Expense Increase," in accordance with the following provisions: (a) "Lessee's Share" is defined, for purposes of this Lease, as the percentage set forth in paragraph 1.10 of the Basic Lease Provisions, which percentage has been determined by dividing the approximate square footage of the Premises by the total approximate square footage of the rentable space contained in the Office Building Project. It is understood and agreed that the square footage figures set forth In in the Basic Lease Provisions are approximations which Lessor and Lessee agree are reasonable and shall not be subject to revision except in connection with an actual change in the size of the Premises or a change in the space available for lease in the Office Building Project. (b) "Base Year" is defined as the calendar year in which the Lease term commences. (c) "Comparison Year" is defined as each calendar year during the term of this Lease subsequent to the Base Year; provided, however, Lessee shall have no obligation to pay a s share of the Operating Expense Increase applicable to the first twelve (12) months of the Lease Term (other than such as are mandated by a governmental authority, as to which government mandated expenses Lessee shall pay Lessee's Share, notwithstanding they occur during the first twelve (12) months). XxxxxxLessee's Share of the Operating Expense Increase for the first and last Comparison Years of the Lease f ease Term shall be prorated according to that portion of such Comparison Year as to which Xxxxxx Lessee is responsible for a share of such increase. (d) "Operating Expenses" is defined, for purposes of this Lease, to include all costs, if any, incurred by Lessor in the exercise of its reasonable discretion, for: (I)The i) The operation, repair, maintenance, and replacement, in neat, clean, safe, good order and condition, of the Office Building Project, including but not limited to, the following: (aa) The Common Areas, including their surfaces, coverings, ,decorative items, carpets, drapes and window coverings, covering and including parking parceling areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, stairways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, Common Area lighting facilities, building exteriors and roofs, fences and gates; (bb) All heating, air conditioning, plumbing, electrical systems, life safety equipment, telecommunication and other equipment used in In common by, or for the benefit of, lessees or occupants of the Office Building Project, including elevators and escalators, tenant directories, fire detection systems including sprinkler system maintenance and repair. (ii) Trash disposal, janitorial and security services; (iiiii) Any other service to be provided by Lessor that is elsewhere in this Lease stated to be an "Operating Expense"; (iv) The cost of the premiums for the liability and property insurance policies to be maintained by Lessor under paragraph 8 hereof; (v)The v) The amount of the real property taxes to be paid by Lessor under paragraph 10. 1 10.1 hereof', ; (vi) The cost of water, sewer, gas, electricity, and other publicly mandated services to the Office Building Project; (vii)Laborvii) Labor, salaries and applicable fringe benefits and costs, materials, supplies and tools, used in maintaining and/or cleaning the Office Building Project and accounting and a management fee attributable to the operation of the Office Building Project; (viii) Replacing and/or adding improvements mandated by any governmental agency and any repairs or removals necessitated thereby amortized over its useful life according to Federal income tax regulations or guidelines for depreciation thereof (including interest on the unamortized balance as is then reasonable in the judgment of Xxxxxx's accountants); (ix) Replacements of equipment or improvements that have a useful life for depreciation purposes according to Federal income tax guidelines of five (5) years or less, as amortized over such life. (e) Operating Expenses shall not include the costs of replacements of equipment or improvements that have a useful life for Federal income tax purposes in excess of five (5) years unless it is of the type described in paragraph 4.2(d)(viii), in which case their cost shall be included as above provided. (f) Operating Expenses shall not include any expenses paid by any lessee directly to third parties, or as to which Xxxxxx is otherwise reimbursed by any third party, other tenant, or by insurance proceeds. (g) Xxxxxx's Share of Operating Expense Increase shall be payable by Lessee within ten (10) days after a reasonably detailed statement of actual expenses is presented to Lessee by Xxxxxx. At Lessor's option, however, an amount may be estimated by Xxxxxx from time to time in advance of Xxxxxx's Share of the Operating Expense Increase for any Comparison Year, and the same shall be payable monthly or quarterly, as Lessor shall designate, during each Comparison Year of the Lease term, on the same day a the Base Rent is due hereunder. In the event that Lessee pays Lessor's estimate of Xxxxxx's Share of Operating Expense Increase as aforesaid, Lessor shall deliver to Lessee within sixty (60) days after the expiration of each Comparison Year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expense Increase incurred during such year. If Xxxxxx's payments under this paragraph 4.2(g) during said Comparison year exceed Xxxxxx's Share as indicated on said statement, Lessee shall be entitled to credit the amount of such overpayment against Xxxxxx's Share of Operating Expense Increase next failing due. If Xxxxxx's payments under this paragraph during said Comparison Year were less than Xxxxxx's Share as indicated on said statement, Lessee shall pay to Lessor the amount of the deficiency within ten (10) days after delivery by Lessor to Xxxxxx of said statement. Lessor and Xxxxxx shall forthwith adjust between them by cash payment any balance determined to exist with respect to that portion of the last Comparison Year for which Lessee is responsible as to Operating Expense Increases, notwithstanding that the Lease term may have terminated before the end of such Comparison Year. 4.3,

OPERATING EXPENSE INCREASE. Lessee shall pay to Lessor during the term hereof, in addition to the Base Rent, XxxxxxLessee's Share, as hereinafter defined, Share of the amount by which all Operating Expenses, as hereinafter defined, Expenses for each Comparison Year exceeds the amount of all Operating Expenses for the Base Year, such excess being hereinafter referred to as the "Operating Expense Increase," in ", In accordance with the following provisions: (a) "Lessee's ShareBase Year" is defined, for purposes of this Lease, Is as the percentage set forth specified in paragraph 1.10 of the Basic Lease Provisions, which percentage has been determined by dividing the approximate square footage of the Premises by the total approximate square footage of the rentable space contained in the Office Building Project. It is understood and agreed that the square footage figures set forth In the Basic Lease Provisions are approximations which Lessor and Lessee agree are reasonable and shall not be subject to revision except in connection with an actual change in the size of the Premises or a change in the space available for lease in the Office Building ProjectParagraph 1.9. (b) "Base Year" is defined as the calendar year in which the Lease term commences. (c) "Comparison Year" is defined as each calendar year during the term of this Lease subsequent to the Base Year; provided, however, Lessee shall have no obligation to pay a share of the Operating Expense Increase applicable to the first twelve (12) 12 months of the Lease Term (other than such as are mandated by a governmental authority, as to which government mandated expenses Lessee shall pay Lessee's Share, notwithstanding they occur during the first twelve (12) 12 months). XxxxxxLessee's Share of the Operating Expense Increase for the first and last Comparison Years of the Lease Term shall be prorated according to that portion of such Comparison Year as to which Xxxxxx Lessee is responsible for a share of such increase. (dc) "Operating Expenses" is defined, for purposes of this Lease, to include all costs, if any, costs incurred by Lessor in relating to the exercise ownership and operation of its reasonable discretionthe Project, forcalculated as if the Project was at least 95% occupied, including, but not limited to, the following: (I)The 1) The operation, repair, maintenance, and replacement, maintenance in neat, clean, safe, good order and condition, of the Office Building Project, including but not limited tothe replacement (see subparagraph (g)), of the following: (aa) The Common Areas, including their surfaces, coverings, decorative items, carpets, drapes and window coverings, and including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, stairways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, Common Area lighting facilities, building exteriors and roofs, fences and gates; (bb) All heating, air conditioning, plumbing, electrical systems, life safety equipment, telecommunication communication systems and other equipment used in common by, or for the benefit of, lessees or occupants of the Office Building Project, including elevators and escalators, tenant directories, fire detection systems including sprinkler system maintenance and repair. (ii) Trash disposal, janitorial and security services, pest control services, and the costs of any environmental inspections; (iiiii) Any other service to be provided by Lessor that is elsewhere in this Lease stated to be an "Operating Expense"; (iv) The cost of the premiums for the liability and property insurance policies to be maintained by Lessor under pursuant to paragraph 8 hereofand any deductible portion of an insured loss concerning the Building or the Common Areas; (v)The v) The amount of the real property taxes to be paid Real Property Taxes payable by Lessor under pursuant to paragraph 10. 1 hereof', ; (vi) The cost of water, sewer, gas, electricity, and other publicly mandated services to the Office Building Projectnot separately metered; (vii)Laborvii) Labor, salaries salaries, and applicable fringe benefits and costs, materials, supplies and tools, used in maintaining and/or cleaning the Office Building Project and accounting and a management fee fees attributable to the operation of the Office Building Project; (viii) Replacing and/or adding improvements mandated by The cost of any governmental agency Capital Expenditure to the Building or the Project not covered under the provisions of Paragraph 2.3 provided; however, that Lessor shall allocate the cost of any such Capital Expenditure over a 12 year period and Lessee shall not be required to pay more than Lessee's Share of 1/144th of the cost of such Capital Expenditure in any repairs or removals necessitated thereby amortized over its useful life according to Federal income tax regulations or guidelines for depreciation thereof (including interest on the unamortized balance as is then reasonable in the judgment of Xxxxxx's accountants)given month; (ix) Replacements Replacement of equipment or improvements that have a useful life for depreciation accounting purposes according to Federal income tax guidelines of five (5) 5 years or less. (d) Any item of Operating Expense that is specifically attributable to the Premises, as amortized over the Building or to any other building in the Project or to the operation, repair and maintenance thereof, shall be allocated entirely to such lifePremises, Building, or other building. However, any such item that is not specifically attributable to the Building or to any other building or to the operation, repair and maintenance thereof, shall be equitably allocated by Lessor to all buildings in the Project. (e) Operating Expenses The inclusion of the improvements, facilities and services set forth in Subparagraph 4.2(c) shall not include be deemed to impose an obligation upon Lessor to either have said improvements or facilities or to provide those services unless the costs Project already has the same, Lessor already provides the services, or Lessor has agreed elsewhere in this Lease to provide the same or some of replacements of equipment or improvements that have a useful life for Federal income tax purposes in excess of five (5) years unless it is of the type described in paragraph 4.2(d)(viii), in which case their cost shall be included as above providedthem. (f) Operating Expenses shall not include any expenses paid by any lessee directly to third parties, or as to which Xxxxxx is otherwise reimbursed by any third party, other tenant, or by insurance proceeds. (g) XxxxxxLessee's Share of Operating Expense Increase shall be payable by Lessee within ten (10) 10 days after a reasonably detailed statement of actual expenses is presented to Lessee by XxxxxxLessor. At Lessor's option, however, an amount may be estimated by Xxxxxx Lessor from time to time in advance of XxxxxxLessee's Share of the Operating Expense Increase for any Comparison Year, and the same shall be payable monthly or quarterly, as Lessor shall designate, during each Comparison Year of the Lease term, on the same day a as the Base Rent is due hereunder. In the event that Lessee pays Lessor's estimate of XxxxxxLessee's Share of Operating Expense Increase as aforesaid, Lessor shall deliver to Lessee within sixty (60) 60 days after the expiration of each Comparison Year a reasonably detailed statement showing XxxxxxLessee's Share of the actual Operating Expense Increase incurred during such year. If XxxxxxLessee's payments under this paragraph 4.2(g(f) during said Comparison year Year exceed XxxxxxLessee's Share as indicated on said statement, Lessee shall be entitled to credit the amount of such overpayment against XxxxxxLessee's Share of Operating Expense Increase next failing falling due. If XxxxxxLessee's payments under this paragraph during said Comparison Year were less than XxxxxxLessee's Share as indicated on said statement, Lessee shall pay to Lessor the amount of the deficiency within ten (10) 10 days after delivery by Lessor to Xxxxxx Lessee of said statement. Lessor and Xxxxxx Lessee shall forthwith adjust between them by cash payment any balance determined to exist with respect to that portion of the last Comparison Year for which Lessee is responsible as to Operating Expense Increases, notwithstanding that the Lease term may have terminated before the end of such Comparison Year. 4.3(g) Operating Expenses shall not include the costs of replacement for equipment or capital components such as the roof, foundations, exterior walls or a Common Area capital improvement, such as the parking lot paving, elevators, fences that have a useful life for accounting ________ ________ ________ ________ Initials Initials Page 3 purposes of 5 years or more unless it is of the type described In paragraph 4.2(c) (viii), in which case their cost shall be included as above provided.

OPERATING EXPENSE INCREASE. If the building is less than 95% occupied, the base year expenses shall be grossed up to a 95% occupancy level arid fully assessed for real estate tax purposes. Lessee shall pay to Lessor during the term hereof, in addition to the Base Rent, XxxxxxLessee's Share, as hereinafter defined, Share of the amount by which all Operating Expenses, as hereinafter defined, Expenses for each Comparison Year exceeds the amount of all Operating Expenses for the Base Year, such excess being hereinafter referred to as the "Operating Expense Increase," OPERATING EXPENSE LNCREASE", in accordance with the following provisions: (a) "Lessee's ShareBASE YEAR" is defined, for purposes of this Lease, as the percentage set forth specified in paragraph 1.10 of the Basic Lease Provisions, which percentage has been determined by dividing the approximate square footage of the Premises by the total approximate square footage of the rentable space contained in the Office Building Project. It is understood and agreed that the square footage figures set forth In the Basic Lease Provisions are approximations which Lessor and Lessee agree are reasonable and shall not be subject to revision except in connection with an actual change in the size of the Premises or a change in the space available for lease in the Office Building ProjectParagraph 1.9. (b) "Base Year" is defined as the calendar year in which the Lease term commences. (c) "Comparison YearCOMPARISON YEAR" is defined as each calendar year during the term of this Lease subsequent to the Base Year; provided, however, Lessee shall have no obligation to pay a share of the Operating Expense Increase applicable to the first twelve (12) 12 months of the Lease Term (other than such as are mandated by a governmental authority, as to which government mandated expenses Lessee shall pay Lessee's Share, notwithstanding they occur during the first twelve (12) months). XxxxxxLessee's Share of the Operating Expense Increase for the first and last Comparison Years of the Lease Term shall be prorated according to that portion of such Comparison Year as to which Xxxxxx Lessee is responsible for a share of such increase. (dc) "Operating ExpensesOPERATING EXPENSES" is defined, for purposes of this Lease, to include all costs, if any, costs incurred by Lessor in relating to the exercise ownership and operation of its reasonable discretionthe Project, forcalculated as if the Project was at least 95% occupied. including, but not limited to, the following: (I)The i) The operation, repair, maintenance, and replacement, maintenance in neat, clean, safe, good order and condition, of the Office Building Project, including but not limited tothe replacement (see subparagraph (g)), of the following: (aa) The Common Areas, including their surfaces, coverings, decorative items, carpets, drapes and window coverings, and including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, stairways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, Common Area lighting facilities, building exteriors and roofs, fences and gates; (bb) All heating, air conditioning, plumbing, electrical systems, life safety equipment, telecommunication communication systems and other equipment used in common by, or for the benefit of, lessees or occupants of the Office Building Project, including elevators and escalators, tenant directories, fire detection systems including sprinkler system maintenance and repair. (ii) Trash disposal, janitorial and security services, pest control services, and the costs of any environmental inspections; (iiiii) Any other service to be provided by Lessor that is elsewhere in this Lease stated to be an "Operating Expense"; (iv) The cost of the premiums for the liability and property insurance policies to be maintained by Lessor under pursuant to paragraph 8 hereofand any deductible portion of an insured loss concerning the Building or the Common Areas; (v)The v) The amount of the real property taxes to be paid Real Property Taxes payable by Lessor under pursuant to paragraph 10. 1 hereof', ; (vi) The cost of water, sewer, gas, electricity, and other publicly mandated services to the Office Building Projectnot separately metered; (vii)Laborvii) Labor, salaries salaries, and applicable fringe benefits and costs, materials, supplies and tools, used in maintaining and/or cleaning the Office Building Project and accounting and a management fee fees attributable to the operation of the Office Building Project; (viii) Replacing and/or adding improvements mandated by The cost of any governmental agency Capital Expenditure to the Building or the Project not covered under the provisions of Paragraph 2.3 provided; however, that Lessor shall allocate the cost of any such Capital Expenditure over a 12 year period and Lessee shall not be required to pay more than Lessee's Share of 1/144th of the cost of such Capital Expenditure in any repairs or removals necessitated thereby amortized over its useful life according to Federal income tax regulations or guidelines for depreciation thereof (including interest on the unamortized balance as is then reasonable in the judgment of Xxxxxx's accountants)given month; (ix) Replacements Replacement of equipment or improvements that have a useful life for depreciation accounting purposes according to Federal income tax guidelines of five (5) 5 years or less. (d) Any item of Operating Expense that is specifically attributable to the Premises, as amortized over the Building or to any other building in the Project or to the operation, repair and maintenance thereof, shall be allocated entirely to such lifePremises, Building, or other building. However, any such item that is not specifically attributable to the Building or to any other building or to the operation, repair and maintenance thereof, shall be equitably allocated by Lessor to all buildings in the Project. (e) Operating Expenses The inclusion of the improvements, facilities and services set forth in Subparagraph 4.2(c) shall not include be deemed to impose an obligation upon Lessor to either have said improvements or facilities or to provide those services unless the costs Project already has the same, Lessor already provides the services, or Lessor has agreed elsewhere in this Lease to provide the same or some of replacements of equipment or improvements that have a useful life for Federal income tax purposes in excess of five (5) years unless it is of the type described in paragraph 4.2(d)(viii), in which case their cost shall be included as above providedthem. (f) Operating Expenses shall not include any expenses paid by any lessee directly to third parties, or as to which Xxxxxx is otherwise reimbursed by any third party, other tenant, or by insurance proceeds. (g) Xxxxxx9 Lessee's Share of Operating Expense Increase shall be payable by Lessee within ten (10) 10 days after a reasonably detailed statement of actual expenses is presented to Lessee by XxxxxxLessor. At Lessor's option, however, an amount may be estimated by Xxxxxx Lessor from time to time in advance of XxxxxxLessee's Share of the Operating Expense Increase for any Comparison Year, and the same shall be payable monthly or quarterly, as Lessor shall designate, during each Comparison Year of the Lease term, on the same day a as the Base Rent is due hereunder. In the event that Lessee pays Lessor's estimate of XxxxxxLessee's Share of Operating Expense Increase as aforesaid, Lessor shall deliver to Lessee within sixty (60) 60 days after the expiration of each Comparison Year a reasonably detailed statement showing XxxxxxLessee's Share of the actual Operating Expense Increase incurred during such year. If XxxxxxLessee's payments under this paragraph 4.2(g) (9 during said Comparison year Year exceed XxxxxxLessee's Share as indicated on said statement, Lessee shall be entitled to credit the amount of such overpayment against XxxxxxLessee's Share of Operating Expense Increase next failing falling due. If XxxxxxLessee's payments under this paragraph during said Comparison Year were less than XxxxxxLessee's Share as indicated on said statement, Lessee shall pay to Lessor the amount of the deficiency within ten (10) 10 days after delivery by Lessor to Xxxxxx Lessee of said statement. Lessor and Xxxxxx Lessee shall forthwith adjust between them by cash payment any balance determined to exist with respect to that portion of the last Comparison Year for which Lessee is responsible as to Operating Expense Increases, notwithstanding that the Lease term may have terminated before the end of such Comparison Year. 4.3(g) Operating Expenses shall not include the costs of replacement for equipment or capital components such as the roof, foundations, exterior walls or a Common Area capital improvement, such as the parking lot paving, elevators, fences that have a useful life for accounting purposes of 5 years or more unless it is of the type described in paragraph 4.2(c) (viii), in which case their cost shall be included as above provided. (h) Operating Expenses shall not include any expenses paid by any tenant directly to third parties, or as to which Lessor is otherwise reimbursed by any third party, other tenant, or by insurance proceeds.

OPERATING EXPENSE INCREASE. Lessee shall pay to Lessor during the term hereof, in In addition to the Base Rent, XxxxxxLessee's Share, as hereinafter defined, of the amount by which all Operating Expenses, as hereinafter defined, for each Comparison Year exceeds the amount of all Operating Expenses for the Base Year, such excess being hereinafter referred to as the "Operating Expense Increase," in accordance with the following provisions: (a) "Lessee's Share" is defined, for purposes of this Lease, as the percentage set forth in In paragraph 1.10 of the Basic Lease Provisions, which percentage has been determined by dividing the approximate square footage of the Premises by the total approximate square footage of the rentable space contained in In the Office Building Project. It is understood and agreed that the square footage figures set forth In the Basic Lease Provisions are approximations which Lessor and Lessee agree are reasonable and shall not be subject to revision except in In connection with an actual change in In the size of the Premises or a change in In the space available for lease in In the Office Building Project. (b) "Base Year" is Is defined as the calendar year in which the Lease term commences. (c) "Comparison Year" is Is defined as each calendar year during the term of this Lease subsequent to the Base Year; provided, however, Lessee shall have no obligation to pay a share of the Operating Expense Increase applicable to the first twelve (12) months of the Lease Term (other than such as are mandated by a governmental authority, as to which government mandated expenses Lessee shall pay Lessee's Share, notwithstanding they occur during the first twelve (12) months). XxxxxxLessee's Share of the Operating Expense Increase for the first and last Comparison Years of the Lease Term shall be prorated according to that portion of such Comparison Year as to which Xxxxxx is Lessee Is responsible for a share of such increase. Increase, (d) "Operating Expenses" is defined, for purposes of this Lease, to include all costs, if It any, incurred Incurred by Lessor in In the exercise of its Its reasonable discretion, for: (I)The discretion for the operation, repair, maintenance, and replacement, in neat, clean, safe, good order and condition, of the Office Building Project, including Including but not limited to, the following: (aa) The Common Areas, including Including their surfaces, coverings, decorative itemsItems, carpets, drapes and window coverings, and including Including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, stairways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, . Common Area lighting facilities, building exteriors and roofs, fences and gates; : (bb) All heating, air conditioning, plumbing, electrical systems, life safety equipment, telecommunication and other equipment used in common by, by or for the benefit of, lessees or of lessor occupants of the Office Building Project, including elevators and escalators, tenant directories, fire detection systems including Including sprinkler system maintenance and repair. (ii) Trash disposal, janitorial and security services; : (iiiii) Any other service to be provided by Lessor that is elsewhere in this Lease stated to be an "Operating Expense"; : (iv) The cost of the premiums for the liability and property properly insurance policies to be maintained by Lessor under paragraph 8 hereof; : (v)The v) The amount of the real property properly taxes to be paid by Lessor under paragraph 10. 1 10.1 hereof', (vi) ; The cost of water, sewer, gas, electricity, and other publicly mandated services to the Office Building Project; (vii)Laborvi) Labor, salaries and applicable fringe benefits and costs, materials, supplies and tools, used in maintaining and/or cleaning the Office Building Project and accounting and a management fee attributable to the operation of the Office Building Project; : (viiivii) Replacing and/or adding improvements Improvements mandated by any governmental agency and any repairs or removals necessitated thereby amortized over its Its useful life according to Federal income tax regulations or guidelines for depreciation thereof (including interest on the unamortized balance as is then reasonable in In the judgment of XxxxxxLessee's accountants); ): (ix) Replacements of equipment or improvements that have a useful life for depreciation purposes according to Federal income tax guidelines of five (5) years or less, as amortized over such life. (e) Operating Expenses shall not include Include the costs of replacements of equipment or improvements that have a useful life for Federal income tax purposes in In excess of five (5) years unless it is of the type described in paragraph 4.2(d)(viii), in . In which case their cost shall be included as above provided. (f) Operating Expenses shall not include any expenses paid by any lessee directly to third parties, parties or as to which Xxxxxx Lessor is otherwise reimbursed by any third party, other tenant, or by insurance Insurance proceeds. (g) XxxxxxLessee's Share of Operating Expense Increase shall be payable by Lessee within ten (10) days after a reasonably detailed statement of actual expenses is presented to Lessee by XxxxxxLessor. At Lessor's option, however, an An amount may will be estimated by Xxxxxx Lessor from time to time in advance of XxxxxxLessee's Share of the Operating Expense Increase for any Comparison Year, and the same shall be payable monthly or quarterly, as Lessor shall designate, during each Comparison Year of the Lease term, on the same day a as the Base Rent is Is due hereunder. In the event that Lessee pays Lessor's estimate of XxxxxxLessee's Share of Operating Expense Increase as aforesaid, Lessor shall deliver to Lessee within sixty (60) days after the expiration of each Comparison Year a reasonably detailed statement showing XxxxxxLessee's Share of the actual Operating Expense Increase incurred Incurred during such year. If XxxxxxLessee's payments under this paragraph 4.2(g) during said Comparison year Year exceed XxxxxxLessee's Share as indicated on said statement, Lessee shall be entitled to credit the amount of such overpayment against XxxxxxLessee's Share of Operating Expense Increase next failing falling due. If XxxxxxLessee's payments under this paragraph during said Comparison Year were less than XxxxxxLessee's Share as indicated Indicated on said statement, Lessee shall pay to Lessor the amount of the deficiency within ten (10) days after delivery by Lessor to Xxxxxx Lessee of said statement. , Lessor and Xxxxxx Lessee shall forthwith adjust between them by cash payment any balance determined to exist with respect to that portion of the last Comparison Year for which Lessee is responsible as to Operating Expense Increases, . notwithstanding that the Lease term may have terminated before the end of such Comparison Year. 4.3

OPERATING EXPENSE INCREASE. If the building is less than 95% occupied, the base year expenses shall be grossed up to a 95% occupancy level arid fully assessed for real estate tax purposes. Lessee shall pay to Lessor during the term hereof, in addition to the Base Rent, XxxxxxLessee's Share, as hereinafter defined, Share of the amount by which all Operating Expenses, as hereinafter defined, Expenses for each Comparison Year exceeds the amount of all Operating Expenses for the Base Year, such excess being hereinafter referred to as the "Operating Expense Increase," OPERATING EXPENSE LNCREASE", in accordance with the following provisions: (a) "Lessee's ShareBASE YEAR" is defined, for purposes of this Lease, as the percentage set forth specified in paragraph 1.10 of the Basic Lease Provisions, which percentage has been determined by dividing the approximate square footage of the Premises by the total approximate square footage of the rentable space contained in the Office Building Project. It is understood and agreed that the square footage figures set forth In the Basic Lease Provisions are approximations which Lessor and Lessee agree are reasonable and shall not be subject to revision except in connection with an actual change in the size of the Premises or a change in the space available for lease in the Office Building ProjectParagraph 1.9. (b) "Base Year" is defined as the calendar year in which the Lease term commences. (c) "Comparison YearCOMPARISON YEAR" is defined as each calendar year during the term of this Lease subsequent to the Base Year; provided, however, Lessee shall have no obligation to pay a share of the Operating Expense Increase applicable to the first twelve (12) 12 months of the Lease Term (other than such as are mandated by a governmental authority, as to which government mandated expenses Lessee shall pay Lessee's Share, notwithstanding they occur during the first twelve (12) months). XxxxxxLessee's Share of the Operating Expense Increase for the first and last Comparison Years of the Lease Term shall be prorated according to that portion of such Comparison Year as to which Xxxxxx Lessee is responsible for a share of such increase. (dc) "Operating ExpensesOPERATING EXPENSES" is defined, for purposes of this Lease, to include all costs, if any, costs incurred by Lessor in relating to the exercise ownership and operation of its reasonable discretionthe Project, forcalculated as if the Project was at least 95% occupied. including, but not limited to, the following: (I)The i) The operation, repair, maintenance, and replacement, maintenance in neat, clean, safe, good order and condition, of the Office Building Project, including but not limited tothe replacement (see subparagraph (g)), of the following: (aa) The Common Areas, including their surfaces, coverings, decorative items, carpets, drapes and window coverings, and including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, stairways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, Common Area lighting facilities, building exteriors and roofs, fences and gates; (bb) All heating, air conditioning, plumbing, electrical systems, life safety equipment, telecommunication communication systems and other equipment used in common by, or for the benefit of, lessees or occupants of the Office Building Project, including elevators and escalators, tenant directories, fire detection systems including sprinkler system maintenance and repair. (ii) Trash disposal, janitorial and security services, pest control services, and the costs of any environmental inspections; (iiiii) Any other service to be provided by Lessor that is elsewhere in this Lease stated to be an "Operating Expense"; (iv) The cost of the premiums for the liability and property insurance policies to be maintained by Lessor under pursuant to paragraph 8 hereofand any deductible portion of an insured loss concerning the Building or the Common Areas; (v)The v) The amount of the real property taxes to be paid Real Property Taxes payable by Lessor under pursuant to paragraph 10. 1 hereof', ; (vi) The cost of water, sewer, gas, electricity, and other publicly mandated services to the Office Building Projectnot separately metered; (vii)Laborvii) Labor, salaries salaries, and applicable fringe benefits and costs, materials, supplies and tools, used in maintaining and/or cleaning the Office Building Project and accounting and a management fee fees attributable to the operation of the Office Building Project; (viii) Replacing and/or adding improvements mandated by The cost of any governmental agency Capital Expenditure to the Building or the Project not covered under the provisions of Paragraph 2.3 provided; however, that Lessor shall allocate the cost of any such Capital Expenditure over a 12 year period and Lessee shall not be required to pay more than Lessee's Share of 1/144th of the cost of such Capital Expenditure in any repairs or removals necessitated thereby amortized over its useful life according to Federal income tax regulations or guidelines for depreciation thereof (including interest on the unamortized balance as is then reasonable in the judgment of Xxxxxx's accountants)given month; (ix) Replacements Replacement of equipment or improvements that have a useful life for depreciation accounting purposes according to Federal income tax guidelines of five (5) 5 years or less. (d) Any item of Operating Expense that is specifically attributable to the Premises, as amortized over the Building or to any other building in the Project or to the operation, repair and maintenance thereof, shall be allocated entirely to such lifePremises, Building, or other building. However, any such item that is not specifically attributable to the Building or to any other building or to the operation, repair and maintenance thereof, shall be equitably allocated by Lessor to all buildings in the Project. (e) Operating Expenses The inclusion of the improvements, facilities and services set forth in Subparagraph 4.2(c) shall not include be deemed to impose an obligation upon Lessor to either have said improvements or facilities or to provide those services unless the costs Project already has the same, Lessor already provides the services, or Lessor has agreed elsewhere in this Lease to provide the same or some of replacements of equipment or improvements that have a useful life for Federal income tax purposes in excess of five (5) years unless it is of the type described in paragraph 4.2(d)(viii), in which case their cost shall be included as above providedthem. (f) Operating Expenses shall not include any expenses paid by any lessee directly to third parties, or as to which Xxxxxx is otherwise reimbursed by any third party, other tenant, or by insurance proceeds. (g) Xxxxxx9 Lessee's Share of Operating Expense Increase shall be payable by Lessee within ten (10) 10 days after a reasonably detailed statement of actual expenses is presented to Lessee by XxxxxxLessor. At Lessor's option, however, an amount may be estimated by Xxxxxx Lessor from time to time in advance of XxxxxxLessee's Share of the Operating Expense Increase for any Comparison Year, and the same shall be payable monthly or quarterly, as Lessor shall designate, during each Comparison Year of the Lease term, on the same day a as the Base Rent is due hereunder. In the event that Lessee pays Lessor's estimate of XxxxxxLessee's Share of Operating Expense Increase as aforesaid, Lessor shall deliver to Lessee within sixty (60) 60 days after the expiration of each Comparison Year a reasonably detailed statement showing XxxxxxLessee's Share of the actual Operating Expense Increase incurred during such year. If XxxxxxLessee's payments under this paragraph 4.2(g) (9 during said Comparison year Year exceed XxxxxxLessee's Share as indicated on said statement, Lessee shall be entitled to credit the amount of such overpayment against XxxxxxLessee's Share of Operating Expense Increase next failing falling due. If XxxxxxLessee's payments under this paragraph during said Comparison Year were less than XxxxxxLessee's Share as indicated on said statement, Lessee shall pay to Lessor the amount of the deficiency within ten (10) 10 days after delivery by Lessor to Xxxxxx Lessee of said statement. Lessor and Xxxxxx Lessee shall forthwith adjust between them by cash payment any balance determined to exist with respect to that portion of the last Comparison Year for which Lessee is responsible as to Operating Expense Increases, notwithstanding that the Lease term may have terminated before the end of such Comparison Year. (g) Operating Expenses shall not include the costs of replacement for equipment or capital components such as the roof, foundations, exterior walls or a Common Area capital improvement, such as the parking lot paving, elevators, fences that have a useful life for accounting purposes of 5 years or more unless it is of the type described in paragraph 4.2(c) (viii), in which case their cost shall be included as above provided. (h) Operating Expenses shall not include any expenses paid by any tenant directly to third parties, or as to which Lessor is otherwise reimbursed by any third party, other tenant, or by insurance proceeds. 4.3

OPERATING EXPENSE INCREASE. Lessee shall pay to Lessor during the term hereof, in addition to the Base Rent, Xxxxxx's Share, as hereinafter defined, of the amount by which all Operating Expenses, as hereinafter defined, for each Comparison Year exceeds the amount of all Operating Expenses for the Base Year, such excess being hereinafter referred to as the "Operating Expense Increase," in accordance with the following provisions: (a) "Lessee's Share" is definedCommencing as of the first day of the thirteenth month of the Lease term, Tenant shall reimburse Landlord, as additional rent, for purposes Tenant's proportionate shares of this Lease"Building Costs" and "Property Taxes," as those terms are defined below, incurred by Landlord in the operation of the Office Building and Project. Property-Taxes and Building costs are mutually exclusive and may be billed separately or in combination as determined by Landlord. Tenant's proportionate share of Property Taxes shall equal the percentage product of the rentable floor area of the Premises multiplied by the difference of (I) Property Taxes per rentable square foot less (ii) the Property Tax Base set forth in paragraph 1.10 Item 7 of the Basic Lease provisions. Tenant's proportionate share of Building Costs shall equal product of the rentable floor area of the Premises multiplied by the difference of (I) Building Costs per rentable square foot less (ii) the building Cost Base set forth in Item 7 of the Basic Lease Provisions, which percentage has been determined by dividing the approximate square footage of the Premises by the total approximate square footage of the rentable space contained in the Office Building Project. It is understood and agreed that the square footage figures set forth In the Basic Lease Provisions are approximations which Lessor and Lessee agree are reasonable and shall not be subject Tenant acknowledges landlord's rights to revision except in connection with an actual change in the size of the Premises make changes or a change in the space available for lease in the Office Building Project. (b) "Base Year" is defined as the calendar year in which the Lease term commences. (c) "Comparison Year" is defined as each calendar year during the term of this Lease subsequent to the Base Year; provided, however, Lessee shall have no obligation to pay a share of the Operating Expense Increase applicable to the first twelve (12) months of the Lease Term (other than such as are mandated by a governmental authority, as to which government mandated expenses Lessee shall pay Lessee's Share, notwithstanding they occur during the first twelve (12) months). Xxxxxx's Share of the Operating Expense Increase for the first and last Comparison Years of the Lease Term shall be prorated according to that portion of such Comparison Year as to which Xxxxxx is responsible for a share of such increase. (d) "Operating Expenses" is defined, for purposes of this Lease, to include all costs, if any, incurred by Lessor in the exercise of its reasonable discretion, for: (I)The operation, repair, maintenance, and replacement, in neat, clean, safe, good order and condition, of the Office Building Project, including but not limited to, the following: (aa) The Common Areas, including their surfaces, coverings, decorative items, carpets, drapes and window coverings, and including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, stairways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, Common Area lighting facilities, building exteriors and roofs, fences and gates; (bb) All heating, air conditioning, plumbing, electrical systems, life safety equipment, telecommunication and other equipment used in common by, or for the benefit of, lessees or occupants of the Office Building Project, including elevators and escalators, tenant directories, fire detection systems including sprinkler system maintenance and repair. (ii) Trash disposal, janitorial and security services; (ii) Any other service to be provided by Lessor that is elsewhere in this Lease stated to be an "Operating Expense"; (iv) The cost of the premiums for the liability and property insurance policies to be maintained by Lessor under paragraph 8 hereof; (v)The amount of the real property taxes to be paid by Lessor under paragraph 10. 1 hereof', (vi) The cost of water, sewer, gas, electricity, and other publicly mandated services additions to the Office Building Project; (vii)Labor, salaries and applicable fringe benefits and costs, materials, supplies and tools, used in maintaining and/or cleaning the Office Building Project and accounting and a management fee attributable to the operation of the Office Building Project; (viii) Replacing and/or adding improvements mandated by any governmental agency and any repairs or removals necessitated thereby amortized over its useful life according to Federal income tax regulations or guidelines for depreciation thereof (including interest on the unamortized balance as is then reasonable in the judgment of Xxxxxx's accountants); (ix) Replacements of equipment or improvements that have a useful life for depreciation purposes according to Federal income tax guidelines of five (5) years or less, as amortized over such life. (e) Operating Expenses shall not include the costs of replacements of equipment or improvements that have a useful life for Federal income tax purposes in excess of five (5) years unless it is of the type described in paragraph 4.2(d)(viii), in which case their cost shall be included as above provided. (f) Operating Expenses shall not include any expenses paid by any lessee directly to third parties, or as to which Xxxxxx is otherwise reimbursed by any third party, other tenant, or by insurance proceeds. (g) Xxxxxx's Share of Operating Expense Increase shall be payable by Lessee within ten (10) days after a reasonably detailed statement of actual expenses is presented to Lessee by Xxxxxx. At Lessor's option, however, an amount may be estimated by Xxxxxx from time to time pursuant to Section 6.5 below, in advance which event the total rentable square footage within the Office Building and/or Project may be adjusted. For convenience of Xxxxxx's Share reference, Property Taxes and Building costs may sometimes be collectively referred to as "Operating Expenses." 18 (b) Commencing prior to the start of the Operating first full "Expense Increase for any Comparison Year, and the same shall be payable monthly or quarterly, as Lessor shall designate, during each Comparison Year Recovery Period" of the Lease term(as set forth in Item 7 of the Basic Lease Provisions), on and prior to the same day start of each full or partial Expense Recovery Period thereafter, Landlord shall give Tenant a the Base Rent is due hereunder. In the event that Lessee pays Lessor's written estimate of Xxxxxx's Share of Operating Expense Increase as aforesaid, Lessor shall deliver to Lessee within sixty (60) days after the expiration of each Comparison Year a reasonably detailed statement showing Xxxxxx's Share of the actual Operating Expense Increase incurred during such year. If Xxxxxx's payments under this paragraph 4.2(g) during said Comparison year exceed Xxxxxx's Share as indicated on said statement, Lessee shall be entitled to credit the amount of such overpayment against XxxxxxTenant's Share proportionate shares of Operating Building Costs and Property Taxes for the Expense Increase next failing dueRecovery Period or portion thereof. Commencing as of the first day of the thirteenth month of the Lease Term, Tenant shall pay the estimated amounts to Landlord in equal monthly installments, in advance, with Basic Rent. If Xxxxxx's payments under this paragraph during said Comparison Year were less than Xxxxxx's Share as indicated on said statementLandlord has not furnished its written estimate for any Expense Recovery Period by the time set forth above, Lessee Tenant shall continue to pay cost reimbursements at the rates established for the prior Expense Recovery Period, if any; provided that when the new estimate is delivered to Lessor Tenant, Tenex xxxll, at the amount of next monthly payment date, pay any accrued cost reimbursements based upon the deficiency within ten (10) days after delivery by Lessor to Xxxxxx of said statement. Lessor and Xxxxxx shall forthwith adjust between them by cash payment any balance determined to exist with respect to that portion of the last Comparison Year for which Lessee is responsible as to Operating Expense Increases, notwithstanding that the Lease term may have terminated before the end of such Comparison Year. 4.3new estimate.

OPERATING EXPENSE INCREASE. Lessee The term “Operating Expense Increase” shall pay to Lessor mean and include Tenant’s Building Share of the increases in Operating Expenses in any given year over the Operating Expenses paid or incurred by Landlord during the term hereof, in addition to the Base Rent, Xxxxxx's Share, as hereinafter defined, of the amount by which all Year for Operating Expenses, as hereinafter defined, for each Comparison Year exceeds the amount of all . Operating Expenses for the Base Year, such excess being hereinafter referred to as the "Operating Expense Increase," in accordance with the following provisions: (a) "Lessee's Share" is defined, for purposes of this Lease, as the percentage set forth in paragraph 1.10 of the Basic Lease Provisions, which percentage has been determined by dividing the approximate square footage of the Premises by the total approximate square footage of the rentable space contained in the Office Building Project. It is understood and agreed that the square footage figures set forth In the Basic Lease Provisions are approximations which Lessor and Lessee agree are reasonable and Year shall not be subject include market-wide cost increases due to revision except in connection with an actual change in the size of the Premises or a change in the space available for lease in the Office Building Project. (b) "Base Year" is defined as the calendar year in which the Lease term commences. (c) "Comparison Year" is defined as each calendar year during the term of this Lease subsequent to the Base Year; providedextraordinary circumstances, howeverincluding, Lessee shall have no obligation to pay a share of the Operating Expense Increase applicable to the first twelve (12) months of the Lease Term (other than such as are mandated by a governmental authority, as to which government mandated expenses Lessee shall pay Lessee's Share, notwithstanding they occur during the first twelve (12) months). Xxxxxx's Share of the Operating Expense Increase for the first and last Comparison Years of the Lease Term shall be prorated according to that portion of such Comparison Year as to which Xxxxxx is responsible for a share of such increase. (d) "Operating Expenses" is defined, for purposes of this Lease, to include all costs, if any, incurred by Lessor in the exercise of its reasonable discretion, for: (I)The operation, repair, maintenance, and replacement, in neat, clean, safe, good order and condition, of the Office Building Project, including but not limited to, the following: (aa) The Common AreasForce Majeure, including their surfacesboycotts, coveringsstrikes, decorative itemsconservation surcharges, carpets, drapes and window coverings, and including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, stairways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, Common Area lighting facilities, building exteriors and roofs, fences and gates; (bb) All heating, air conditioning, plumbing, electrical systems, life safety equipment, telecommunication and other equipment used in common byembargoes or shortages, or for amortized costs relating to capital improvements. In no event shall the benefit of, lessees or occupants of the Office Building Project, including elevators and escalators, tenant directories, fire detection systems including sprinkler system maintenance and repair. (ii) Trash disposal, janitorial and security services; (ii) Any other service to be provided by Lessor that is elsewhere in this Lease stated to be an "Operating Expense"; (iv) The cost of the premiums for the liability and property insurance policies to be maintained by Lessor under paragraph 8 hereof; (v)The amount of the real property taxes to be paid by Lessor under paragraph 10. 1 hereof', (vi) The cost of water, sewer, gas, electricity, and other publicly mandated services to the Office Building Project; (vii)Labor, salaries and applicable fringe benefits and costs, materials, supplies and tools, used in maintaining and/or cleaning the Office Building Project and accounting and a management fee attributable to the operation of the Office Building Project; (viii) Replacing and/or adding improvements mandated by any governmental agency and any repairs or removals necessitated thereby amortized over its useful life according to Federal income tax regulations or guidelines for depreciation thereof (including interest on the unamortized balance as is then reasonable in the judgment of Xxxxxx's accountants); (ix) Replacements of equipment or improvements that have a useful life for depreciation purposes according to Federal income tax guidelines of five (5) years or less, as amortized over such life. (e) Operating Expenses shall not include the costs of replacements of equipment or improvements that have a useful life for Federal income tax purposes in excess of five (5) years unless it is of the type described in paragraph 4.2(d)(viii), in which case their cost shall be included as above provided. (f) Operating Expenses shall not include any expenses paid by any lessee directly to third parties, or as to which Xxxxxx is otherwise reimbursed by any third party, other tenant, or by insurance proceeds. (g) Xxxxxx's Share of Operating Expense Increase shall be payable by Lessee within ten (10) days after a reasonably detailed statement of actual expenses is presented to Lessee by Xxxxxx. At Lessor's option, however, an amount may be estimated by Xxxxxx from time to time in advance of Xxxxxx's Share components of the Operating Expense Increase for any Comparison year subsequent to the Base Year related to project utilities be less than the components of the applicable Operating Expenses related to project utilities in the Base Year. To the extent any components of Operating Expenses are incurred in connection with the entirety of the Property or only the Common Areas, Landlord reserves the right to recalculate such components of the Operating Expense Increase, and the same Tenant shall be payable monthly or quarterlyrequired to pay its equitable portion thereof as reasonably determined by Landlord. Notwithstanding Tenant’s Building Share, as Lessor shall designate, during each Comparison Year of Landlord reserves the Lease term, on right to equitably apportion the same day a the Base Rent is due hereunder. In the event that Lessee pays Lessor's estimate of Xxxxxx's Share of Operating Expense Increase as aforesaid, Lessor shall deliver to Lessee within sixty (60) days after the expiration of each Comparison Year a reasonably detailed statement showing Xxxxxx's Share between Tenant and other tenants of the actual Property if, in Landlord’s reasonable opinion (on the basis of factors such as hours and intensity of use of a utility or service), Tenant is responsible for a greater percentage of the Operating Expense Increase incurred during such year. If Xxxxxx's payments under this paragraph 4.2(g) during said Comparison year exceed Xxxxxx's than represented by Tenant’s Building Share as indicated on said statementappropriate. In addition, Lessee shall be entitled Landlord reserves the right to credit reasonably and equitably adjust Base Year Operating Expenses due to extraordinary circumstances occurring in the amount of such overpayment against Xxxxxx's Share of Operating Expense Increase next failing dueBase Year. If Xxxxxx's payments under this paragraph during said Comparison Year were less than Xxxxxx's Share as indicated on said statement, Lessee shall pay to Lessor It is the amount intention of the deficiency within ten (10) days after delivery parties by Lessor the preceding three sentences to Xxxxxx of said statement. Lessor and Xxxxxx shall forthwith adjust between them by cash payment any balance determined to exist with respect to that portion of the last Comparison Year for which Lessee is responsible as to equitably apportion Operating Expense Increases; provided, notwithstanding that however, the Lease term may have terminated before the end parties hereto agree on a year-over-year cap of such Comparison Year. 4.3five percent (5%) for any increase in Operating Expenses.

OPERATING EXPENSE INCREASE. Lessee shall pay to Lessor during the term hereof, in In addition to the Base Rent, XxxxxxLessee's Share, as hereinafter defined, of the amount by which all Operating Expenses, as hereinafter defined, for each Comparison Year exceeds the amount of all Operating Expenses for the Base Year, such excess being hereinafter referred to as the "Operating Expense Increase," in accordance with the following provisions: (a) "Lessee's Share" is defined, for purposes of this Lease, as the percentage set forth in In paragraph 1.10 of the Basic Lease Provisions, which percentage has been determined by dividing the approximate square footage of the Premises by the total approximate square footage of the rentable space contained in In the Office Building Project. It is Is understood and agreed that the square footage figures set forth In the Basic Lease Provisions are approximations which Lessor and Lessee agree are reasonable and shall not be subject to revision except in In connection with an actual change in In the size of the Premises or a change in In the space available for lease in In the Office Building Project. (b) "Base Year" is Is defined as the calendar year in which the Lease term commences. (c) "Comparison Year" is defined as each calendar year during the term of this Lease subsequent to the Base Year; provided, however, Lessee shall have no obligation to pay a share of the Operating Expense Increase applicable to the first twelve (12) months of the Lease Term (other than such as are mandated by a governmental authority, as to which government mandated expenses Lessee shall pay Lessee's Share, notwithstanding they occur during the first twelve (12) months). XxxxxxLessee's Share of the Operating Expense Increase for the first and last Comparison Years of the Lease Term shall be prorated according to that portion of such Comparison Year as to which Xxxxxx is Lessee Is responsible for a share of such increase. Increase, (d) "Operating Expenses" is defined, for purposes of this Lease, to include all costs, if It any, incurred Incurred by Lessor in In the exercise of its Its reasonable discretion, for: (I)The discretion for the operation, repair, maintenance, and replacement, in neat, clean, safe, good order and condition, of the Office Building Project, including Including but not limited to, the following: (aa) The Common Areas, including Including their surfaces, coverings, decorative itemsItems, carpets, drapes and window coverings, and including Including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, stairways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, . Common Area lighting facilities, building exteriors and roofs, fences and gates; : (bb) All heating, air conditioning, plumbing, electrical systems, life safety equipment, telecommunication and other equipment used in common by, by or for the benefit of, lessees or of lessor occupants of the Office Building Project, including elevators and escalators, tenant directories, fire detection systems including Including sprinkler system maintenance and repair. (ii) Trash disposal, janitorial and security services; : (iiiii) Any other service to be provided by Lessor that is elsewhere in this Lease stated to be an "Operating Expense"; : (iv) The cost of the premiums for the liability and property properly insurance policies to be maintained by Lessor under paragraph 8 hereof; : (v)The v) The amount of the real property properly taxes to be paid by Lessor under paragraph 10. 1 10.1 hereof', (vi) ; The cost of water, sewer, gas, electricity, and other publicly mandated services to the Office Building Project; (vii)Laborvi) Labor, salaries and applicable fringe benefits and costs, materials, supplies and tools, used in maintaining and/or cleaning the Office Building Project and accounting and a management fee attributable to the operation of the Office Building Project; : (viiivii) Replacing and/or adding improvements Improvements mandated by any governmental agency and any repairs or removals necessitated thereby amortized over its Its useful life according to Federal income tax regulations or guidelines for depreciation thereof (including interest on the unamortized balance as is then reasonable in In the judgment of XxxxxxLessee's accountants); ): (ix) Replacements of equipment or improvements that have a useful life for depreciation purposes according to Federal income tax guidelines of five (5) years or less, as amortized over such life. (e) Operating Expenses shall not include Include the costs of replacements of equipment or improvements that have a useful life for Federal income tax purposes in In excess of five (5) years unless it is of the type described in paragraph 4.2(d)(viii), in . In which case their cost shall be included as above provided. (f) Operating Expenses shall not include any expenses paid by any lessee directly to third parties, parties or as to which Xxxxxx Lessor is otherwise reimbursed by any third party, other tenant, or by insurance Insurance proceeds. (g) XxxxxxLessee's Share of Operating Expense Increase shall be payable by Lessee within ten (10) days after a reasonably detailed statement of actual expenses is presented to Lessee by XxxxxxLessor. At Lessor's option, however, an An amount may will be estimated by Xxxxxx Lessor from time to time in advance of XxxxxxLessee's Share of the Operating Expense Increase for any Comparison Year, and the same shall be payable monthly or quarterly, as Lessor shall designate, during each Comparison Year of the Lease term, on the same day a as the Base Rent is Is due hereunder. In the event that Lessee pays Lessor's estimate of XxxxxxLessee's Share of Operating Expense Increase as aforesaid, Lessor shall deliver to Lessee within sixty (60) days after the expiration of each Comparison Year a reasonably detailed statement showing XxxxxxLessee's Share of the actual Operating Expense Increase incurred Incurred during such year. If XxxxxxLessee's payments under this paragraph 4.2(g) during said Comparison year Year exceed XxxxxxLessee's Share as indicated on said statement, Lessee shall be entitled to credit the amount of such overpayment against XxxxxxLessee's Share of Operating Expense Increase next failing falling due. If XxxxxxLes3ee's payments under this paragraph during said Comparison Year were less than XxxxxxLessee's Share as indicated Indicated on said statement, Lessee shall pay to Lessor the amount of the deficiency within ten (10) days after delivery by Lessor to Xxxxxx Lessee of said statement. , Lessor and Xxxxxx Lessee shall forthwith adjust between them by cash payment any balance determined to exist with respect to that portion of the last Comparison Year for which Lessee is responsible as to Operating Expense Increases, notwithstanding . Notwithstanding that the Lease term may have terminated before the end of such Comparison Year. 4.3