Common use of Operating Expense Increases Clause in Contracts

Operating Expense Increases. (a) Commencing on January 1, 2021, Tenant shall pay to Landlord, as Additional Rent, Tenant's Projected Share, as set forth in Section 6.01(j) hereof. Within one hundred eighty (180) days following the expiration of each Operational Year, Landlord shall furnish Tenant a Landlord's Statement (in commercially reasonable detail) prepared by Landlord's chief financial officer or Landlord's independent certified public accountant (in accordance with sound commercial real estate management practices), setting forth the Cost of Operation and Maintenance incurred for the immediately preceding Operational Year. Within thirty (30) days after receipt of such statement for each Operational Year setting forth Tenant's Proportionate Share of any increase of Cost of Operation and Maintenance during such Operational Year over the amount of the Base Expenses (said increase being referred to herein as the "Cost Increase"), Tenant shall pay the Cost Increase (less the amount of Tenant's Projected Share paid by Tenant on account thereof) to Landlord as Additional Rent. (b) If Landlord's Statement provided in accordance with the provisions of Section 6.03(a) for an Operational Year shall indicate that Tenant's Projected Share for said Operational Year exceeded Tenant's Proportionate Share of Cost Increase, Landlord shall permit Tenant to credit the amount of such excess against the next subsequent payment(s) of Rent due hereunder. If Landlord's Statement shall indicate that Tenant's Cost Increase exceeded Tenant's Projected Share for said Operational Year, Tenant shall, within thirty (30) days after demand therefor, pay the amount of such excess to Landlord in Additional Rent. (c) Following the expiration of this Lease in accordance with the provisions hereof (and provided no Event of Default by Tenant exists hereunder), any overpayments by Tenant of any Additional Rent shall be refunded to Tenant within sixty (60) days of such Lease expiration.

Operating Expense Increases. (a) Commencing on January 1A. For each Sublease Year after the Base Year during the term of this Sublease, 2021, Tenant Subtenant shall pay to LandlordSublandlord Subtenant's Share of the amount by which the operating Expenses (subject to adjustment pursuant to Section 4C of the Master Lease) for such Sublease Year exceed the Operating Expenses for the Base Year. B. Subtenant's Share of Operating Expenses shall be calculated and paid on an estimated, monthly basis in the same manner as Additional Rent, Tenant's Projected Share, as set forth in Section 6.01(j) hereofShare of Operating Expenses are calculated and paid under Paragraph 4 of the Master Lease. Within one hundred eighty (180) days After the end of each Sublease Year following the expiration Base Year and promptly after Sublandlord receives the same, Sublandlord shall deliver to Subtenant a copy of each Operational Year, Landlord shall furnish Tenant a Landlord's Statement (annual statement of Operating Expenses, and Subtenant's Share of Operating Expenses shall be based on such statement. Sublandlord shall not be liable for any errors in commercially reasonable detail) prepared by such statement or errors of Landlord in calculating Operating Expenses. At Subtenant's request and expense, however, Sublandlord will pursue, on behalf of Subtenant, any rights which Sublandlord may have under the Master Lease in respect of the payment of Tenant's Share of Operating Expenses thereunder. If Landlord's chief financial officer or Landlordannual statement of Operating Expenses for a calendar year discloses that Subtenant's independent certified public accountant (estimated payments on account of such Operating Expenses exceeds Subtenant's required Operating Expense contribution for such calendar year calculated in accordance with sound commercial real estate management practices)Section 8A, setting forth the Cost of Operation and Maintenance incurred for the immediately preceding Operational Year. Within thirty (30) days after receipt of such statement for each Operational Year setting forth Tenant's Proportionate Share of any increase of Cost of Operation and Maintenance during such Operational Year over Sublandlord shall promptly refund the amount of the Base excess to Subtenant. Similarly, if Landlord's annual statement of Operating Expenses (said increase being referred to herein as the "Cost Increase"), Tenant shall pay the Cost Increase (less the amount of Tenantfor a calendar year discloses that Subtenant's Projected Share paid by Tenant estimated payments on account thereof) to Landlord as Additional Rent. (b) If Landlordof such Operating Expenses is less than Subtenant's Statement provided required Operating Expense contribution for such calendar year calculated in accordance with the provisions of Section 6.03(a) for an Operational Year 8A, Subtenant shall indicate that Tenant's Projected Share for said Operational Year exceeded Tenant's Proportionate Share of Cost Increase, Landlord shall permit Tenant to credit the amount of such excess against the next subsequent payment(s) of Rent due hereunder. If Landlord's Statement shall indicate that Tenant's Cost Increase exceeded Tenant's Projected Share for said Operational Year, Tenant shall, within thirty (30) days after demand therefor, promptly pay the amount of the deficiency to Sublandlord, subject to Subtenant's rights provided in this Section 8B. In the event that Sublandlord received any refund of Taxes as provided in Section 4A(5) of the Master Lease for any period within the term of this Sublease, Sublandlord shall promptly remit such excess refund to Landlord in Additional RentSubtenant. (c) Following the expiration C. For purposes of this Lease in accordance with Section 8, the provisions hereof (and provided no Event of Default by Tenant exists hereunder), any overpayments by Tenant of any Additional Rent following terms shall be refunded to Tenant within sixty (60) days of such Lease expiration.have the following meanings:

Operating Expense Increases. During the initial term and renewal term of this Lease, the annual rent shall be adjusted for increases in Operating Expenses, (as hereinafter defined), in the following manner: (a) The rent includes an annual expense stop (the “Expense Stop”) of Five and 05/100 Dollars ($5.05) per square foot of the Rentable Area. The first year’s Estimated CAM and Operating Expenses are attached hereto as Exhibit G. Each full twelve-month calendar period from the beginning of the Rent Commencement Date shall be a “Lease Year.” Commencing on January 1, 2021, Tenant shall pay to Landlord, as Additional Rent, Tenant's Projected Share, as set forth in Section 6.01(j) hereof. Within one hundred eighty (180) days following with the expiration beginning of each Operational the second Lease Year, Landlord Lessee shall furnish Tenant a Landlord's Statement be responsible for its proportionate share of the cost of Operating Expenses over the Expense Stop amount stated herein, which amount (in commercially reasonable detailso estimated by Lessor) prepared shall be paid by Landlord's chief financial officer or Landlord's independent certified public accountant Lessee until such time as actual expenses are available (in accordance with sound commercial real estate management practicesafter the end of the initial Lease Year and successive Lease Years), setting forth when the Cost of Operation and Maintenance proportionate share shall be adjusted pursuant to this Lease, to reflect the prior year’s expenses. In no event will Lessor be liable to reimburse Lessee for any expense adjustment to the amount that is less than the amount incurred for during the immediately preceding Operational initial Lease Year. Within thirty (30) days after receipt Operating Expenses which are not directly attributable to the Demised Premises shall be prorated by dividing the total number of such statement for each Operational Year setting forth Tenant's Proportionate Share square feet of Rentable Area in the Demised Premises by the total number of Rentable Area in the Demised Premises plus any increase of Cost of Operation and Maintenance during such Operational Year over future Building constructed by Lessor or its successor on the amount of real property adjoining the Base Expenses (said increase being referred to herein as the "Cost Increase"), Tenant shall pay the Cost Increase (less the amount of Tenant's Projected Share paid by Tenant on account thereof) to Landlord as Additional RentDemised Premises. (b) If Landlord's Statement provided in accordance with Lessor agrees to furnish Lessee annual statements prepared by the provisions chief financial officer or manager of Section 6.03(a) Lessor and certified by such officer, partner or an independent certified public accountant showing Operating Expenses for an Operational Year shall indicate that Tenant's Projected Share for said Operational Year exceeded Tenant's Proportionate Share of Cost Increase, Landlord shall permit Tenant to credit the amount of such excess against the next subsequent payment(s) of Rent due hereunderLease Year. If Landlord's Statement Operating Expenses during the Lease Year are greater than the expense stop amount, Lessee shall indicate that Tenant's Cost Increase exceeded Tenant's Projected Share for said Operational Year, Tenant shall, pay its share of the overage to Lessor within thirty (30) days after demand therefor, pay the amount from receipt of such excess certified statements. As used in this Article, “Operating Expenses” shall include only those items customarily considered in good accounting practice to Landlord in Additional Rent. (c) Following the expiration of this Lease in accordance with the provisions hereof (and provided no Event of Default by Tenant exists hereunder), any overpayments by Tenant of any Additional Rent shall be refunded to Tenant within sixty (60) days of such Lease expiration.be

Operating Expense Increases. During the initial term and renewal term of this Lease, the annual rent shall be adjusted for increases in Operating Expenses, (as hereinafter defined), in the following manner: (a) The rent includes an annual expense stop (the “Expense Stop”) of Five and 05/100 Dollars ($5.05) per square foot of the Rentable Area. The first year’s Estimated CAM and Operating Expenses are attached hereto as Exhibit G. Each full twelve-month calendar period from the beginning of the Rent Commencement Date shall be a “Lease Year.” Commencing on January 1, 2021, Tenant shall pay to Landlord, as Additional Rent, Tenant's Projected Share, as set forth in Section 6.01(j) hereof. Within one hundred eighty (180) days following with the expiration beginning of each Operational the second Lease Year, Landlord Lessee shall furnish Tenant a Landlord's Statement be responsible for its proportionate share of the cost of Operating Expenses over the Expense Stop amount stated herein, which amount (in commercially reasonable detailso estimated by Lessor) prepared shall be paid by Landlord's chief financial officer or Landlord's independent certified public accountant Lessee until such time as actual expenses are available (in accordance with sound commercial real estate management practicesafter the end of the initial Lease Year and successive Lease Years), setting forth when the Cost of Operation and Maintenance proportionate share shall be adjusted pursuant to this Lease, to reflect the prior year’s expenses. In no event will Lessor be liable to reimburse Lessee for any expense adjustment to the amount that is less than the amount incurred for during the immediately preceding Operational initial Lease Year. Within thirty (30) days after receipt Operating Expenses which are not directly attributable to the Demised Premises shall be prorated by dividing the total number of such statement for each Operational Year setting forth Tenant's Proportionate Share square feet of Rentable Area in the Demised Premises by the total number of Rentable Area in the Demised Premises plus any increase of Cost of Operation and Maintenance during such Operational Year over future Building constructed by Lessor or its successor on the amount of real property adjoining the Base Expenses (said increase being referred to herein as the "Cost Increase"), Tenant shall pay the Cost Increase (less the amount of Tenant's Projected Share paid by Tenant on account thereof) to Landlord as Additional RentDemised Premises. (b) If Landlord's Statement provided in accordance with Lessor agrees to furnish Lessee annual statements prepared by the provisions chief financial officer or manager of Section 6.03(a) Lessor and certified by such officer, partner or an independent certified public accountant showing Operating Expenses for an Operational Year shall indicate that Tenant's Projected Share for said Operational Year exceeded Tenant's Proportionate Share of Cost Increase, Landlord shall permit Tenant to credit the amount of such excess against the next subsequent payment(s) of Rent due hereunderLease Year. If Landlord's Statement Operating Expenses during the Lease Year are greater than the expense stop amount, Lessee shall indicate that Tenant's Cost Increase exceeded Tenant's Projected Share for said Operational Year, Tenant shall, pay its share of the overage to Lessor within thirty (30) days after demand therefor, pay the amount from receipt of such certified statements. As used in this Article, “Operating Expenses” shall include only those items customarily considered in good accounting practice to be building operating expenses, such as ordinary or extraordinary repairs not covered by insurance, maintenance, cleaning, janitorial services, utilities, supplies, real estate taxes, common area maintenance and assessment charges, premiums for fire, casualty and liability insurance with respect to the improvements on the Demised Premises, and management fees not in excess to Landlord of three percent (3%) of gross rent. Lessee is not liable for increases in Additional Rent. controllable expenses over the previous lease year in excess of three percent (c) Following 3%).“Controllable Expenses” means all Operating Expenses other than taxes, insurance, reasonable third party maintenance and utilities, provided that insurance premiums paid for the expiration of this Lease in accordance with the provisions hereof (and provided no Event of Default Demised Premises shall not increase by Tenant exists hereunder), any overpayments by Tenant reason of any Additional Rent action or inaction of Landlord that causes such increase. Operating Expenses shall be refunded not include any expenses related to Tenant within sixty (60) days financing, depreciation, amortization, costs of such Lease expirationa capital nature, costs for which Lessee or other occupants of the Building are charged other than pursuant to the Operating Expense clauses, costs of procuring lessees, attorneys’ fees, accounting fees, nor administrative salaries and wages except for personnel working exclusively for the buildings using the Common Improvements. Operating Expenses shall include only those costs actually paid by Lessor.