Common use of Operating Costs Clause in Contracts

Operating Costs. Tenant shall pay to Landlord the Tenant’s Percentage of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

Operating Costs. (1) Tenant shall pay an amount equal to Tenant's Proportionate Share of Operating Costs. Landlord shall make a good faith estimate of Tenant's Proportionate Share of Operating Costs for any calendar year or part thereof during the Term, and Tenant shall pay to Landlord the Tenant’s Percentage of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the Commencement Date and on the first day of each calendar monthmonth thereafter, estimated payments on account in advance, an amount equal to Tenant's Proportionate Share of Operating CostsCosts for such calendar year or part thereof divided by the number of months therein. Initially, such Tenant shall pay Landlord $6.99 per Tenant's Rentable Square Feet per annum as the Expense Estimate. Tenant shall nevertheless be responsible for the actual Tenant's Proportionate Share of Operating Costs regardless of the estimate. Except for snow removal, Landlord shall cap any increase in the Expense Estimate at seven percent (7%) during the initial twelve (12) months of occupancy. From time to time (but not more than one time each year), Landlord may re-calculate the Expense Estimate and deliver a copy of the re- calculation to Tenant. Thereafter, the monthly amounts to installments of Tenant's Proportionate Share of Operating Costs shall be sufficient to provide Landlordappropriately adjusted in accordance with the Expense Estimate so that, by the end of the calendar yearyear in question, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments Tenant shall be in an amount equal to 1/12th of the Initial Estimate have paid all of Tenant’s Percentage 's Proportionate Share of Operating Costs for as calculated by Landlord. Any amounts paid based on the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs Expense Estimate shall have been made be subject to adjustment as aforesaid, the total of such monthly remittances is greater than the herein provided when actual Operating Costs are available for such each calendar year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

Operating Costs. (a) If for any calendar year during the Term the Operating Costs exceed the Base Operating Costs, then Tenant shall pay to Landlord the reimburse Landlord, as Additional Rent, for Tenant’s Percentage of such excess (such amount being hereinafter referred to as the “Operating Costs (as hereinafter defined) incurred by Landlord in any calendar yearExcess”). Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating CostsCosts Excess, such in monthly amounts reasonably estimated by Landlord from time-to-time to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs Excess for the Calendar Yearsuch calendar year. If, at the expiration of the any respective calendar year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances payments made by Tenant is greater than the actual Operating Costs Excess for such year, then promptly after the expiration of such calendar year and the determination of the actual amount of Operating Costs Excess, Landlord shall promptly pay to Tenant, Tenant or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances payments is less than the Operating Costs Excess for such year, then Tenant shall pay the difference to Landlord within twenty not more than thirty (2030) days from after the date Landlord shall furnish furnishes to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principlesCosts Excess. Landlord shall deliver the annual statement of actual Operating Costs Excess not later than one hundred eighty (180) days after the expiration of the respective calendar year. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

Operating Costs. Tenant shall pay to Landlord the Landlord, as Additional Rent, amounts equal to Tenant’s Percentage Project Share of Project Operating Costs and Tenant’s Building Share of Building Operating Costs. For purposes of determining Tenants Project Share of Project Operating Costs far any year during which the Project is less than ninety-five percent (as hereinafter defined95%) incurred occupied, the actual Project Operating Costs shall be equitably adjusted to reflect ninety-five percent (95%) occupancy and normal, ongoing operation. For purposes of determining Tenants Building Share of Building Operating Costs for any year during which the Building is less than ninety-five percent (95%) occupied, the actual Building Operating Costs shall be equitably adjusted to reflect ninety-five percent (95%) occupancy and normal, ongoing operation. Tenants Project Share of Project Operating Costs and Tenant’s Building Share of Building Operating Casts shall be estimated in good faith by Landlord in any at the end of each calendar year. Tenant , and shall remit to Landlord, be payable in equal estimated monthly installments on the first day of each calendar monthmonth during the Lease Term (prorated for any partial months), estimated payments on account of Operating Costs, such monthly amounts subject to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord readjustment from time to timetime as determined by Landlord and also when actual Project Operating Costs and Building Operating Costs are determined. The initial monthly estimated payments After a readjustment, any shortage shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant within thirty (30) days of written demand by Landlord and any excess shall, unless an Event of Default then exists, be credited against future Additional Rent obligations, or refunded promptly if the Lease Term has ended and Tenant has no further obligations to Landlord. Landlord shall provide tenant upon request with respect reasonable supporting documentation for the Operating Costs and access to periods Landlord’s books and records in the event of less than twelve (12) months shall be equitably proratedan audit as provided in Section 4.7.

Operating Costs. Tenant shall covenants to pay to Landlord the Tenant’s Percentage of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated. This section shall survive the expiration or earlier termination of the Lease.

Operating Costs. Prior to the commencement of the term of this Lease and prior to March 1 of each calendar year thereafter, or as soon thereafter as practicable. Landlord shall furnish Tenant shall pay to Landlord with a written statement of the Tenant’s Percentage estimated operating costs per square foot of Operating Costs (as hereinafter defined) incurred by Landlord in any gross rentable area of the Building for such calendar year. Tenant shall remit to Landlord, on During the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total remainder of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such calendar year, Tenant shall pay Landlord at the difference times that the monthly Base Rent is due and payable hereunder an amount equal to Landlord one-twelfth (1/12) of the product of the number of gross square feet in the Premises times such estimate. If Tenant's monthly payment of estimated operating costs is greater than the monthly amount of operating expenses Tenant paid for the then elapsed calendar months of such calendar year, then, within twenty ten (2010) days from after such written estimate is given. Tenant shall also pay to a Landlord the date deficiency for said elapsed calendar months. After the expiration of each calendar year falling in whole or in part within the term hereof. Landlord shall furnish to Tenant an itemized with a written statement of the Operating Costsactual operating costs of the Project (and ,if applicable, preparedthe Shared Parking Area) for the preceding calendar year, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement if such actual operating costs for Operating Costs due and payable by Tenant with respect to periods of such preceding calendar year are more or less than twelve (12) months the estimate, an appropriate adjustment shall be equitably proratedmade within ten (10) days after such written statement is furnished. For the purposes hereof, operating costs shall be deemed to mean all taxes (both general and special and whether now or hereafter enacted), assessments or governmental charges levied or assessed against the Project (and, if applicable, the Shared Parking Area) or any part thereof, and all costs which, for federal tax purposes, may be expensed rather than capitalized, and which Landlord will or does incur, pay or become obligated to pay in owning, maintaining, operating and leasing the Project (and, if applicable the Shared Parking Area) and appurtenances thereto, exclusive of interest and depreciation, Without limiting the generality of the fore going operating costs shall include personal property taxes, fees or permits or licenses, a management fee or fees not to exceed five percent (5%) of the Base Rent, landscaping and gardening cleaning, painting, decorating, paving, lighting, security guards, leasing and maintenance of music and intercom systems. If any, removal of snow, trash, garbage and other refuse, heating, ventilating and air- conditioning, costs and expenses in connection with meeting federal state, or local environmental energy standards, fire protection, water and sewage and other utility charges not separately metered and charged to particular Tenants, the cost of all types of insurance carried or paid for by Landlord, accounting costs, all costs of maintaining, repairing and replacing paving, curb, sidewalks, roadways, landscaping, drainage, lighting and utility systems, the cost of maintaining and repairing the walls, roof and other portions of the Building, the cost of maintaining and repairing all heating, ventilating and air-conditioning equipment and depreciation thereof, rental changes for machinery and equipment used in maintaining and operating the Project (and, if applicable, the Shared Parking Area), salaries and compensation of personnel connected with such operation and maintenance and deductible amounts payable under insurance policies. Landlord, in its reasonable discretion, shall from time to time determine the method of computing the operating costs, the allocation of operating costs to various types of space within the Building, and the extent of the appurtenances to the Project, and Tenant shall be bound thereby. Tenant's failure to pay ▇▇▇▇▇▇'s share of operating costs in the manner herein provided shall be treated hereunder in the same manner as a default in the payment of Base Rent.

Operating Costs. Tenant shall pay to Landlord the Landlord, as Additional Rent, an amount ("Tenant’s 's Operating Cost Share") equal to Tenant's Percentage of Operating Costs (as hereinafter defined) paid or incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated twelve-month period established by Landlord from time to time(an "Operating Year"). The initial monthly estimated payments shall be Except as otherwise provided in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, immediately following paragraph Tenant shall pay the difference Tenant's Operating Cost Share to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Coststhereof, prepared, allocated and computed in accordance with generally accepted accounting principlesthen prevailing customs and practices of the real estate industry in the San Diego area, consistently applied. Any reimbursement At the election of Landlord, Tenant shall pay to Landlord, as Additional Rent on the first day of each calendar month during the term but otherwise in the manner provided for the payment of Annual Fixed Rent, estimated payments on account of Tenant's Operating Cost Share, such monthly amounts to be sufficient to provide to Landlord, by the end of each Operating Year, a sum equal to Tenant's Operating Cost Share for such Operating Year, as reasonably estimated by Landlord from time to time during such Operating Year. If, at the expiration of each Operating Year in respect of which monthly installments of Tenant's Operating Cost Share shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Tenant's Operating Cost Share for such Operating Year, Landlord shall credit such overpayment against Tenant's subsequent obligations on account of Operating Costs (or promptly refund such overpayment if the term of this Lease has ended and Tenant has no further obligation to Landlord); if the total of such remittances is less than Tenant's Operating Cost Share for such Operating Year, Tenant shall pay the difference to Landlord within ten (10) days after being so notified by Landlord. In the event that the Commencement Date shall occur or the term of this Lease shall expire or be terminated during any Operating Year or Tenant's Percentage shall be modified during any Operating Year due and to a change in the rentable area of the Building and/or the Premises or otherwise, as the case may be, then the amount of Tenant's Operating Cost Share which may be payable by Tenant with respect to periods of less than twelve (12) months as provided in this Section 4.5 shall be equitably proratedappropriately apportioned and adjusted.

Operating Costs. To the extent Seller, as landlord under the Lease, is currently collecting from Tenant under the Lease additional rent (collectively, “Expense Reimbursements”) to cover taxes, insurance, utilities (to the extent not paid directly by Tenant), common area maintenance and other operating costs and expenses (collectively, “Operating Costs”) in connection with the ownership, operation, maintenance and management of the Property, Seller and Buyer shall pay to Landlord each receive a debit or credit, as the Tenant’s Percentage of case may be, for the difference between the Tenants’ current account balances for 2014 for Operating Costs and amount of their respective Operating Costs reimbursable to Seller; provided, however, that, except as specifically set forth herein, in no event shall either party be responsible for crediting the other for any uncollected Expense Reimbursements for the Tenant and the same shall be treated in the same manner as uncollected rent is treated in Section 6.1(a). To the extent that the CAM Reconciliation (as hereinafter defineddefined below) incurred by Landlord in any for calendar year. Tenant shall remit to Landlordyear 2014 reveals that Seller has over-collected Expense Reimbursements such that, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by if the end of the calendar yearoperating expense year under the Lease was the Closing Date, a sum equal Seller would be obligated to refund money to the Tenant (an “Over Collection”), rather than collect additional money from the Tenant (an “Under Collection”), said Over Collection shall be paid by Seller to Buyer at the Closing as a settlement statement credit and Buyer shall pay said Over-Collection to the Tenant within 30 days or otherwise in compliance with the lease obligations; provided, in the event of an Under Collection, the amount of the Under Collection shall be paid by Buyer to Seller outside of escrow within 5 business days after receipt from the Tenant in connection with the year-end Operating CostsCosts reconciliation process subject to and in accordance with the terms of Section 6.1(a). Notwithstanding the foregoing, as in the event of an Under Collection, Buyer shall pay up to $10,000 of the same to Seller at Closing. Operating Costs for 2014 shall be reasonably estimated by Landlord the parties if final bills are not available. At least 5 business days prior to the Closing Date, Seller shall provide Buyer with a reasonably detailed reconciliation for Tenant showing all Operating Costs incurred by Seller from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th the beginning of the Initial Estimate then-current calendar year (2014) through the Closing Date, and any Expense Reimbursements collected by Seller during the same period of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay time and relating to Tenant, or credit against all in the next accruing payments form customarily submitted to Tenant (the “CAM Reconciliation”). Operating Costs that are payable by the Tenant directly to the applicable service providers shall not be made by prorated between Seller and Buyer. Prior to Closing, Seller shall reconcile with the Tenant pursuant to this subsection 4.2.3for the calendar year 2013, the difference; if Tenant Expense Reimbursements for the total calendar year 2013 and Seller shall reimburse to the Tenant any Over Collection of such remittances is less than Expense Reimbursement for calendar year 2013 prior to the Operating Costs Closing and shall have the right to collect any Under Collection of Expense Reimbursement for such yearcalendar year 2013 for 180 days following the Closing. To the extent Buyer receives any amounts from Tenant for Under Collection of Expense Reimbursement for calendar year 2013 and which are identified as same, Tenant Buyer shall pay the difference such amount to Landlord Seller within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated10 days.

Operating Costs. Commencing in calendar year 2019, Tenant shall pay to Landlord the Tenant’s Percentage Proportionate Share of the amount by which the annual Operating Costs (defined below) for each year of the Term exceed the annual Operating Costs for the Base Year. Landlord may make a good faith estimate of the Operating Costs to be due by Tenant for any calendar year or part thereof during the Term. During each calendar year or partial calendar year of the Term after the Base Year, Tenant shall pay to Landlord, in advance concurrently with each monthly installment of Base Rent, an amount equal to the estimated Operating Costs for such calendar year or part thereof divided by the number of months therein. From time to time, Landlord may estimate and re-estimate the Operating Costs to be due by Tenant and deliver a copy of the estimate or re-estimate to Tenant. Thereafter, the monthly installments of Operating Costs (as hereinafter defined) incurred payable by Landlord in any calendar year. Tenant shall remit to Landlord, on be appropriately adjusted in accordance with the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlordestimations so that, by the end of the calendar yearyear in question, a sum equal to Tenant shall have paid all of the Operating Costs, Costs as reasonably estimated by Landlord from time to timeLandlord. The initial monthly estimated payments Any amounts paid based on such an estimate shall be in an amount equal subject to 1/12th of the Initial Estimate of Tenant’s Percentage of adjustment as herein provided when actual Operating Costs are available for each calendar year. Operating Costs for the Calendar Base Year. If, at for the expiration purpose of comparisons of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaidBase Year with subsequent years only, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably proratedcalculated so as to not include market-wide labor-rate increases due to extraordinary circumstances, including boycotts and strikes; temporary utility rate increases due to extraordinary circumstances, including conservation surcharges, boycotts, embargos or other shortages; or, except as set forth in Section 2 below, amortized costs relating to Capital improvements.

Operating Costs. Within a reasonable time after calendar year 1992, Landlord shall provide Tenant shall pay with an itemized statement of Base Operating Costs, together with copies of all bills issued by governmental authorities with respect to Landlord Taxes included in Base Operating Costs. If, during the Tenant’s Percentage of term hereof, Operating Costs (as hereinafter defined) incurred by Landlord in any calendar yearyear shall exceed Base operating Costs, Tenant shall reimburse Landlord, as additional rent, for Tenant's Percentage of any such excess (such amount being hereinafter referred to as the "Operating Costs Excess"). Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating CostsCosts Excess, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costsoperating Costs Excess, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be time and set forth in an amount equal a statement delivered by Landlord to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs Excess shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs Excess for such year, as shown on the Annual Statement (as hereinafter defined) for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.34.2.2, the difference; if the total of such remittances is less than the Operating Costs Excess for such year, Tenant shall pay the difference to Landlord within twenty thirty (2030) days from the date of Tenant's receipt of the Annual Statement. Following each calendar year, Landlord shall furnish to Tenant an itemized statement statement, in reasonable detail, of the Operating CostsCosts Excess during such year (the "Annual Statement"), prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

Operating Costs. Tenant shall pay to Landlord If, during the Tenant’s Percentage of term hereof, Operating Costs (as hereinafter defined) incurred by Landlord in any calendar yearyear shall exceed Base Operating Costs, Tenant shall reimburse Landlord, as additional rent, for Tenant’s Percentage of any such excess (such amount being hereinafter referred to as the “Operating Costs Excess”). Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating CostsCosts Excess, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating CostsCosts Excess, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs Excess shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs Excess for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs Excess for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating CostsCosts Excess, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated. During the period from the Commencement Date through October 31, 2009, Tenant shall pay to Landlord, as Additional Rent, the incremental Operating Costs associated with the operation of the Phase 2 Space (i.e., 21,941 rentable square feet), including costs of furnishing chilled water to cool such Space. Tenant shall remit to Landlord, on the first day of each calendar month following the Commencement Date, estimated monthly payments on account of such incremental Operating Costs, as reasonably estimated by Landlord from time to time, using a multiplier of 21,941 rentable square feet. As of the Date of this Lease, Landlord estimates the monthly incremental Operating Costs will be equal to 1/12th of the product of $2.41 times 21,941. As of November 1, 2009, Tenant’s obligation to pay charges for the incremental Operating Costs shall cease and as of such date Tenant shall commence paying amounts to Landlord on account of Operating Costs Excess for the entire Initial Premises, in accordance with the provisions of this Section 4.2.3 and Section 4.2.1.

Operating Costs. Tenant shall pay to Landlord ▇▇▇▇▇▇'s Share of the Increased Operating Costs as follows: (a) Landlord shall submit to Tenant before January 1 of each Subsequent Year, or as soon thereafter as Landlord has sufficient data, a reasonably detailed statement showing the estimated Increased Operating Costs for such Subsequent Year, which determination shall be made by Landlord based upon experience with actual costs and projections. At the first monthly Base Rent payment date following the submittal of such statement and at each succeeding monthly rent payment date thereafter during the Subsequent Year, Tenant shall pay to Landlord an amount equal to one-twelfth (1112th) of the Increased Operating Costs. If Landlord does not submit said statement to Tenant prior to January 1 of any Subsequent Year, Tenant shall continue to pay Tenant's Share of the Increased Operating Costs at the then existing rate until such statement is submitted and, thereafter, at the monthly Base Rent payment date next following the submittal of such statement Tenant shall pay Tenant's Share of the Increased Operating Costs based on the rate set forth in such statement plus, if the new rate is greater than the old rate, the difference accrued from January 1 of such Subsequent Year. Landlord may revise such estimated Increased Operating Costs at the end of any calendar quarter. (b) On or before March 31 of the second and each succeeding Subsequent Year or as soon thereafter as Landlord has sufficient data, Landlord shall submit to Tenant a reasonably detailed statement showing the actual Building Operating Costs paid or incurred by Landlord during the previous calendar year. If ▇▇▇▇▇▇'s Share of the actual Increased Operating Costs is less than the amount of Tenant's Share of the estimated Increased Operating Costs for the previous Subsequent Year theretofore paid by ▇▇▇▇▇▇, Landlord shall credit such difference against the next Increased Operating Costs payments coming due. If ▇▇▇▇▇▇'s Share of the actual Increased Operating Costs is more than the amount of Tenant's Share of the estimated Increased Operating Costs for such previous Subsequent Year theretofore paid by Tenant, Tenant shall pay to Landlord the Tenant’s Percentage full amount of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, difference at the expiration of monthly Base Rent payment date next following the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total submittal of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay statement to Tenant. (c) If the Expiration Date or the date of earlier termination of this Lease is other than December 31, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay both the difference to Landlord within twenty (20) days from Base Year and the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months last Subsequent Year shall be equitably proratedprorated based on what the number of days in the Term in the last Subsequent Year bears to 365; and any amounts owed or to be credited pursuant to Paragraph shall be paid at the time in the last Subsequent Year, or in the calendar year immediately following the last Subsequent Year, that such amount is calculated pursuant to Paragraph 4.3(c).

Operating Costs. Tenant shall pay to Landlord If, during the Tenant’s Percentage of Term hereof, Operating Costs (as hereinafter defined) incurred by Landlord in any calendar yearyear shall exceed Base Operating Costs, Tenant covenants to reimburse Landlord, as Additional Rent, for Tenant’s Percentage of any such excess (such amount being hereinafter referred to as the “Operating Costs Excess”). Tenant shall remit to Landlord, on the first day of each calendar monthmonth included in the Term, estimated payments on account of Operating CostsCosts Excess, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating CostsCosts Excess, as reasonably estimated by Landlord L▇▇▇▇▇▇▇ from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs Excess shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs Excess for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs Excess for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating CostsCosts Excess, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated. Landlord shall exercise commercially reasonable efforts to deliver to Tenant the annual reconciliation statement of Operating Costs Excess within one hundred eighty (180 days following the expiration of the applicable year. L▇▇▇▇▇▇▇’s delivery of an annual reconciliation statement shall not prejudice Landlord’s right thereafter to render a corrected Operating Cost annual statement for such year, except that Landlord shall in all events render any corrections thereto within three (3) years after the end of any year or Landlord shall be deemed to have waived its right to collect any underpayment from Tenant for the Operating Costs applicable to the period that would have been covered by such statement, provided, however, the foregoing 3-year period shall expressly not apply to any late b▇▇▇▇▇▇▇ or corrected b▇▇▇▇▇▇▇ received by any taxing authority or utility provider. This section shall survive the expiration or earlier termination of the Lease.

Operating Costs. A. Beginning on the Commencement Date, Tenant shall pay to Landlord at the same time as it is required to make payment of Base Rent, an amount (the “Operating Costs Payment”) equal to one twelfth (1/12th) of the estimated Tenant’s Percentage Share of Operating Costs attributable to the Project for any full or partial year during the Term. Tenant acknowledges that in connection with any particular Operating Cost, notwithstanding the fixed percentage interest of Tenant’s Share set forth in the Basic Lease Information, Landlord may fairly allocate such Operating Cost among the users of the Project if utilizing a particular user’s percentage share based on such user’s rentable square footage compared to the rentable square footage of the Project results in an inequitable allocation of such Operating Cost among the users of the Project. B. Based on Landlord’s current estimate of Operating Costs, Tenant’ initial monthly installment of the Operating Costs Payment on the Commencement Date shall be $22,923.86. Prior to any year (or as hereinafter definedsoon thereafter as is reasonably practicable) incurred and from time to time during any year, Landlord shall notify Tenant as to monthly installments of the Operating Costs Payment payable by Landlord in any calendar Tenant based on Landlord’s reasonable estimate of Operating Costs for such year. Until such time as Landlord notifies Tenant of such estimate, Tenant shall remit continue to Landlord, on make its Operating Costs Payment in the same monthly amount as the prior year. On the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar yearmonth following thirty (30) days after Tenant’s receipt of Landlord’s notice of any revised estimate in such installments, a sum equal Tenant shall pay to Landlord (in addition to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial revised monthly estimated payments shall be estimate) a lump sum payment in an amount so that Tenant’s total payments for the year will equal to 1/12th of the Initial Estimate Landlord’s revised estimate of Tenant’s Percentage aggregate Operating Costs Payment for such year. If such lump sum payment amount exceeds the amount of Tenant’s monthly payment for the immediately proceeding month, Tenant shall have an additional thirty (30) days to pay such amount. The Operating Costs Payment for the first calendar year in which the Term falls (if the Commencement Date is other than January 1) and the last calendar year in which the Term falls (if the Term ends on a date other than December 31) shall be prorated based upon the number of days in the Term falling within the year in question. C. After Landlord shall have ascertained the actual amount of Operating Costs for the Calendar Yearprior year but in any case within one hundred eighty (180) days of the end of such year (but subject to adjustment upon receipt of additional information within twelve [12] months following the end of any calendar year [an “Amended Notice”]), Landlord shall notify Tenant as to the amount of such Operating Costs and the Operating Costs Payment resulting therefrom (an “Annual Adjustment Notice”). IfIf the Operating Costs Payment actually due exceeds total estimated payments made by Tenant on account of Tenant’s Share of Operating Costs for such year, then Tenant shall pay Landlord the full amount of any such deficiency within thirty (30) days after receiving the Annual Adjustment Notice. If the Operating Costs Payment actually due is less than the total estimated payments made by Tenant on account of Tenant’s Share of Operating Costs for such year, then Landlord shall either credit any such excess to Rent next owing by Tenant or refund such excess to Tenant, provided, at the expiration end of the Term, Landlord shall refund such excess to Tenant. D. The provisions of this Section 6.1 shall survive the expiration or termination of this Lease. 6.2 If the Project is not fully occupied (meaning one-hundred percent (100%) of the Rentable Area of the Project) during any full or partial year in respect of which monthly installments of the Term, those Operating Costs which vary with the level of occupancy (including, but not limited to, utilities, janitorial costs and management fees) shall be adjusted for such year to an amount which Landlord reasonably estimates would have been made as aforesaid, incurred had the total Project been the greater of such monthly remittances is greater ninety-five percent (95%) occupied or the actual occupancy of the Project. In no event shall Landlord collect from the tenants of the Project more than the actual Operating Costs for such year. 6.3 Tenant shall have the right upon the delivery of written notice to Landlord (“Tenant’s Review Notice”) and at reasonable times to review the books and records of Landlord relating to Tenant’s Operating Costs Payment. Such review shall take place at the Project or the office of Landlord’s managing agent in the greater San Francisco Bay Area and shall be at Tenant’s sole cost and expense. Tenant must deliver Tenant’s Review Notice to Landlord within ninety (90) days after Tenant has received its Annual Adjustment Notice for the prior year and must complete its review with written notice to Landlord, specifying in detail the reasons for any discrepancy as to a particular item within forty-five (45) days after Landlord makes its books and records available to Tenant. Failure by Tenant to deliver Tenant’s Review Notice to Landlord within such ninety (90) day period or to perform its review and provide Landlord with such notice within such subsequent forty-five (45) day period shall constitute a waiver of Tenant’s rights to contest such Annual Adjustment Notice. Tenant shall pay the full amount of Tenant’s Operating Costs Payment shown to be due on the Annual Adjustment Notice without delay, but by doing so shall not, so long as it timely complies with the time periods set forth above, waive its rights to review Landlord’s books and records or to dispute the accuracy or appropriateness of any such Annual Adjustment Notice or any items thereon as provided in this Section 6.3. In the event Landlord provides an Amended Notice, Tenant shall have the same rights with respect to the Amended Notice as with the Annual Adjustment Notice as set forth in this Section 6.3. Tenant hereby agrees that all information disclosed in the books and records shall be kept confidential and shall not be disclosed to any other party, including, but not limited to, any other tenant in the Project. Tenant further agrees to cause any third party engaged by Tenant to review said books and records to execute and deliver a commercially reasonable confidentiality agreement prior to its performing any such review. Any accountant or professional retained by Tenant to perform such audit shall be paid by Tenant on a fixed hourly rate or flat-fee basis and not on a contingency fee based upon a percentage of the recovery of any discrepancy discovered. Tenant shall pay all costs associated with such review, unless it is finally determined that Landlord’s original determination of Tenant’s Operating Cost Payment was overstated by more than three percent (3%), in which event the Landlord shall pay the reasonable third party costs of such audit incurred by Tenant. If such review discloses a discrepancy in Landlord’s calculation of Tenant’s Operating Cost Payment, and Landlord agrees with such determination, Landlord shall promptly pay to Tenant the amount of any overpayment by Tenant or Tenant shall promptly pay to Landlord the amount of any underpayment by Tenant, as the case may be. If Landlord delivers notice to Tenant that Landlord does not agree with such determination of Operating Costs, Tenant’s accountant or credit other professional retained by Tenant to perform such audit and Landlord’s regular accountants shall select a third accounting firm from the “Big 4” accounting firms. If the two (2) accountants cannot agree on the selection of the third accountant within ten (10) days of their selection, then either party may request appointment of the third accountant by application to the JAMS. Once the third accountant has been selected as provided for above, then, as soon thereafter as practicable but in any case within fourteen (14) days, the third accountant shall make his/her determination of the actual Operating Costs in dispute and such determination shall be binding on both Landlord and Tenant. The parties shall share equally in the costs of the third accountant. Subject to Landlord’s obligations to pay Tenant’s third party costs as set forth herein, any fees of any accountant or professional engaged directly by Landlord or Tenant, however, shall be borne by the party retaining such accountant or professional. If Landlord discovers a discrepancy in Landlord’s calculation of Operating Costs and such discrepancy has resulted in Tenant’s overpayment Operating Costs, Landlord shall deliver an Amended Notice and refund to Tenant the amount of such overpayment by crediting the same against the next accruing payments Rent due under this Lease or, if the Term has expired or the Lease has terminated, by delivering such amount with the Amended Notice. 6.4 The parties hereto agree that the measurements set forth in the Basic Lease Information are, for the purposes of this Lease, correct and the parties will not remeasure the Project or the Premises. If during the Term any change occurs in either the number of square feet of the Rentable Area of the Premises (by virtue of the addition of space to the Premises or the reduction in the size of the Premises) or by addition to or subtraction from the Rentable Area of the Project, effective as of the date of any such change, the addition or subtraction of such Rentable Area of the Project or Rentable Area of the Premises shall be measured using the same method of measurement as the parties hereto used for the original measurement of the Premises, and Tenant’s Share shall be adjusted in accordance with such measurement. Landlord shall promptly notify Tenant in writing of such change and the reason therefor. Any changes made by Tenant pursuant to this subsection 4.2.3, Section 6.3 shall not alter the difference; if the total computation of such remittances is less than the Operating Costs as provided in this Article 6 or Taxes as provided in Article 5, but, on and after the date of any such change, Tenant’s Share of Operating Costs and Taxes shall be appropriately adjusted. If such estimated payments of Tenant’s Share are so adjusted during a year, a reconciliation payment for Tenant’s Share pursuant to this Article 6 for the calendar year in which such change occurs shall be computed pursuant to the method set forth in Sections 6.1 and 6.2, such computation to take into account the daily weighted average of Tenant’s Share of Operating Costs during such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

Operating Costs. (1) Landlord shall pay all Operating Costs (below defined) for the Project except that Tenant shall pay its proportionate share (below defined) of the amount equal to the difference between (x) the actual Operating Costs for the Project for the year in question, and (y) the actual Operating Costs for the calendar year 2000 (the "Base Year"). The Base Year calculation shall be --------- inclusive of a fully assessed building for tax purposes, such difference being referred to herein as the "Operating Costs Increase Expense." If the -------------------------------- Commencement Date is a date later an January 1, 2000, then "the actual Operating Costs for the calendar year 2000" shall be calculated as follows: The days elapsing from the Commencement Date through December 31,2000, shall be the "Actual Days". The actual Operating Costs for the Actual Days shall be the "Base ----------- ---- Operating Costs". Divide the Base Operating Costs by the number of Actual Days, --------------- and multiply the result by 365. By April 15 of each year from and after the Base Year, Landlord shall deliver to Tenant a good faith estimate of the Operating Costs Increase Expense and any Additional Rent to be paid by Tenant for each calendar year following the Base Year during the Term, and Tenant shall pay to Landlord, along with the Base Rent each month, an amount equal to one-twelfth of its estimated proportionate share for such calendar year or part thereof. From time to time Landlord may estimate and re-estimate the Operating Costs to be due from Tenant and deliver a copy of the estimate or re-estimate to Tenant’s Percentage . Thereafter, the monthly installments of Operating Costs (as hereinafter defined) incurred Increase Expense payable by Landlord in any calendar year. Tenant shall remit to Landlord, on be appropriately adjusted in accordance with the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlordestimation so that, by the end of the calendar yearyear in question, a sum equal to Tenant shall have paid all of its proportionate share of the estimated Operating Costs, as reasonably estimated by Landlord from time to timeCosts Increase Expense. The initial monthly estimated payments Any amounts paid based on such an estimate shall be in an amount equal subject to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made adjustment as aforesaid, the total of such monthly remittances is greater than OFFICE LEASE AGREEMENT - Page - 4 ---------------------- herein provided based on the actual Operating Costs for such each calendar year, . The Operating Costs Increase Expense shall be "Additional Rent" hereunder. The failure of Landlord shall promptly pay to Tenant, or credit against the next accruing payments exercise its rights hereunder to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than estimate the Operating Costs Increase Expense and require payment of same as Additional Rent shall not constitute a waiver of such rights which rights may be exercised from time to time at Landlord's discretion. (2) The term "Operating Costs" shall mean all expenses and --------------- disbursements (subject to the limitations set forth below) that Landlord incurs in connection with the ownership, operation, maintenance and repair of the Project (exclusive of such expenses and disbursements that are paid by Tenant or are Landlord's express responsibility hereunder), determined in accordance with sound accounting principles used in practice by accounting professionals consistently applied, including, but not limited to, the following costs: (A) wages and salaries (including management fees) of all employees engaged in the operation and maintenance of the Project, including taxes, insurance and benefits relating thereto which wages and salaries are prorated according to the percentage of time each employee spends in the operation and maintenance of the Project; (B) all supplies and materials used in the operation, maintenance, repair, and replacement of the Project; (C) costs for improvements made to the Project which, although capital in nature, are expected to reduce the normal operating costs of the Project, as well as capital improvements made in order to comply with any law hereafter promulgated by any governmental authority, as amortized over the useful economic life of such improvements as determined by Landlord in its reasonable discretion; (D) insurance expenses; (E) repairs, replacements, and general maintenance of the Project; (F) service or maintenance contracts with independent contractors for the operation, maintenance, repair, or replacement of the Building (including without limitation, alarm service, card entry system, window cleaning, landscaping service, and elevator maintenance); (G) all provided utilities, other than electricity, telephone and other telecommunications the cost of which are the responsibility of Tenant; (H) janitorial services (subject to Paragraph 8(c)(3) below); and (I) Taxes (defined ----------------- below). Operating Costs shall not include costs for (i) capital improvements made to the Building, other than capital improvements described above and except for items which are generally considered maintenance and repair items, such as painting of common areas, replacement of carpet in elevator lobbies, and the like; (ii) repair, replacements and general maintenance paid by proceeds of insurance or by Tenant or by other third parties; (iii) interest, amortization or other payments on loans to Landlord; (iv) depreciation, (v) leasing commissions; (vi) legal expenses for services in negotiation of this Lease; (viii) federal income taxes imposed on or measured by the income of Landlord from the operation of the Building, (viii) janitorial services paid directly by Tenant if Tenant so elects to provide its own services, (ix) electric, telephone, and other telecommunications costs attributable to the Project, (x) Landlord's obligations under Exhibit "B" hereto, (xi) overhead and profit ----------- increment paid to subsidiaries or affiliates of Landlord or its partners for services on or to the Project, to the extent that the costs of such services exceed competitive costs for such yearservices rendered by persons or entities of similar skill, competence and experience, other than a subsidiary or affiliate of Landlord or its partners; (xii) costs of Landlord's general overhead and general administrative expenses which would not be chargeable to operating expenses of the Project in accordance with sound accounting principles consistently applied; (xiii) rent, if any, incurred in OFFICE LEASE AGREEMENT - Page - 5 ---------------------- leasing air conditioning systems, elevators or other equipment ordinarily considered to be of a capital nature, except equipment which is used in providing janitorial services and which is not affixed to the Project; (xiv) all items and services for which Tenant reimburses Landlord (other than through Tenant paying Operating Costs Increase Expense) or for which Tenant pays third persons; (xv) any expenses relating to the structural integrity of the foundation, exterior walls, or roof of the Project, except as specifically provided for in this Lease; and (xvi) any fines, penalties, legal judgments or settlements of causes of action by or against Landlord unless caused by Tenant or Tenant's Representatives. Tenant acknowledges and agrees that other than Landlord's installation of the door card entry system as part of the Work and maintenance thereof as an Operating Cost, Tenant shall pay be wholly and solely responsible for all other matters of security for the difference to Landlord within twenty (20) days from the date Project, and Landlord shall furnish to Tenant an itemized statement have no responsibility or liability of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably proratedany kind therefor.

Operating Costs. Tenant shall pay to Landlord If, during the Tenant’s Percentage of term hereof, Operating Costs (as hereinafter defined) incurred by Landlord in any calendar yearyear shall exceed the Base Operating Costs, Tenant shall reimburse Landlord, as Additional Rent, for Tenant’s Percentage of any such excess (such amount being hereinafter referred to as the “Operating Costs Excess”). Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating CostsCosts Excess, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating CostsCosts Excess, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments time (it being understood that Tenant shall have at least ten [10] days’ prior notice before it shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage required pay any revised estimate of Operating Costs for the Calendar YearExcess). If, at the expiration of the year in respect of which monthly installments of Operating Costs Excess shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs Excess for such year, Landlord shall promptly pay to Tenant, or, if the term of this Lease has not expired or otherwise been terminated, credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs Excess for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating CostsCosts Excess, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

Operating Costs. Tenant shall pay to Landlord If, during the Tenant’s Percentage of term hereof, Operating Costs (as hereinafter defined) incurred by Landlord in any calendar yearyear shall exceed Base Operating Costs, Tenant shall reimburse Landlord, as additional rent, for Tenant's Percentage of any such excess (such amount being hereinafter referred to as the "Operating Costs Excess"). Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating CostsCosts Excess, such equal monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating CostsCosts Excess for such calendar year, as reasonably estimated by Landlord ▇▇▇▇▇▇▇▇ from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs Excess shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs Excess for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs Excess for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating CostsCosts Excess, which statement Landlord shall provide to Tenant within a reasonable period of time following the end of any calendar year (but in no event later than 12 months following the end of such calendar year), prepared, allocated and computed in accordance with generally accepted accounting principles, such statement setting forth in reasonable detail the basis for the computation of any increase in Operating Costs for such year. Tenant shall have the right, upon reasonable notice and during business hours, to examine, at Landlord's office, within six (6) months following receipt of a statement, Landlord's books and records respecting such statement. If such examination discloses any errors, appropriate adjustments shall be made. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

Operating Costs. A. Beginning on the Commencement Date, Tenant shall pay to Landlord at the same time as it is required to make payment of Base Rent, an amount (the “Operating Costs Payment”) equal to one twelfth (1/12th) of the estimated Tenant’s Percentage Share of Operating Costs attributable to the Project for any full or partial year during the Term. Tenant acknowledges that in connection with any particular Operating Cost, notwithstanding the fixed percentage interest of Tenant’s Share set forth in the Basic Lease Information, Landlord may fairly allocate such Operating Cost among the users of the Project if using such user’s share based on such user’s rentable square footage compared to the rentable square footage of the Project results in an inequitable allocation of such Operating Cost among the users of the Project. B. Prior to any year (or as hereinafter definedsoon thereafter as is reasonably practicable) incurred and from time to time during any year, Landlord shall notify Tenant as to monthly installments of the Operating Costs Payment payable by Landlord in any calendar Tenant based on Landlord’s reasonable estimate of Operating Costs for such year. Until such time as Landlord notifies Tenant of such estimate, Tenant shall remit continue to Landlord, on make its Operating Costs Payment in the same monthly amount as the prior year. On the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar yearmonth following thirty (30) days after Tenant’s receipt of Landlord’s notice of any revised estimate in such installments, a sum equal Tenant shall pay to Landlord (in addition to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial revised monthly estimated payments shall be estimate) a lump sum payment in an amount so that Tenant’s total payments for the year will equal to 1/12th of the Initial Estimate Landlord’s revised estimate of Tenant’s Percentage aggregate Operating Costs Payment for such year. If such lump sum payment amount exceeds the amount of Tenant’s monthly payment for the immediately proceeding month, Tenant shall have an additional thirty (30) days to pay such amount. The Operating Costs Payment for the first calendar year in which the Term falls (if the Commencement Date is other than January 1) and the last calendar year in which the Term falls (if the Term ends on a date other than December 31) shall be prorated based upon the number of days in the Term falling within the year in question. C. After Landlord shall have ascertained the actual amount of Operating Costs for the Calendar Yearprior year but in any case within one hundred eighty (180) days of the end of such year (but subject to adjustment upon receipt of additional information within twelve [12] months following the end of any calendar year [an “Amended Notice"]), Landlord shall notify Tenant as to the amount of such Operating Costs and the Operating Costs Payment resulting therefrom (an “Annual Adjustment Notice”). IfIf the Operating Costs Payment actually due exceeds total estimated payments made by Tenant on account of Tenant’s Share of Operating Costs for such year, then Tenant shall pay Landlord the full amount of any such deficiency within thirty (30) days after receiving the Annual Adjustment Notice. If the Operating Costs Payment actually due is less than the total estimated payments made by Tenant on account of Tenant’s Share of Operating Costs for such year, then Landlord shall, at its option, credit any such excess to Rent next owing by Tenant or refund such excess to Tenant, provided, at the expiration end of the Term, Landlord shall refund such excess to Tenant. The provisions of this Section 6.1 shall survive the expiration or termination of this Lease. 6.2 If the Project is not fully occupied (meaning one-hundred percent (100%) of the Rentable Area of the Project) during any full or partial year in respect of which monthly installments of the Term, those Operating Costs which vary with the level of occupancy shall be adjusted for such year to an amount which Landlord reasonably estimates would have been made as aforesaid, incurred had the total Project been the greater of such monthly remittances is greater ninety-five percent (95%) occupied or the actual occupancy of the Project. In no event shall Landlord collect from the tenants of the Project more than the actual Operating Costs for such year. 6.3 The parties hereto agree that the measurements set forth in the Basic Lease Information are, for the purposes of this Lease, correct and the parties will not remeasure the Project or the Premises. If during the Term any change occurs in either the number of square feet of the Rentable Area of the Premises (by virtue of the addition of space to the Premises or the reduction in the size of the Premises) or by addition to or subtraction from the Rentable Area of the Project, effective as of the date of any such change, the addition or subtraction of such Rentable Area of the Project or Rentable Area of the Premises shall be measured using the same method of measurement as the parties hereto used for the original measurement of the Premises as reasonably determined by Landlord and reasonably approved by Tenant, and Tenant’s Share shall be adjusted in accordance with such measurement. Landlord shall promptly pay to Tenant, or credit against notify Tenant in writing of such change and the next accruing payments to be reason therefor. Any changes made by Tenant pursuant to this subsection 4.2.3, Section 6.3 shall not alter the difference; if the total computation of such remittances is less than the Operating Costs as provided in this Article 6 or Taxes as provided in Article 5, but, on and after the date of any such change, Tenant’s Share of Operating Costs and Taxes shall be appropriately adjusted. If such estimated payments of Tenant’s Share are so adjusted during a year, a reconciliation payment for Tenant’s Share pursuant to this Article 6 for the calendar year in which such change occurs shall be computed pursuant to the method set forth in Sections 6.1 and 6.2, such computation to take into account the daily weighted average of Tenant’s Share of Operating Costs during such year, . 6.4 Tenant shall pay have the difference right upon the delivery of written notice to Landlord within twenty (20“Tenant’s Review Notice”) days from and at reasonable times to review the date Landlord shall furnish to Tenant an itemized statement books and records of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.Landlord

Operating Costs. Within a reasonable time after calendar year 2001, Landlord shall provide Tenant shall pay with an itemized statement of Base Operating Costs, together with copies of all bills issued by governmental authorities with respect to Landlord Taxes included in Base Operating Costs. If, during the Tenant’s Percentage of Term hereof, Operating Costs (as hereinafter defined) incurred by Landlord in any calendar yearyear shall exceed Base Operating Costs, Tenant shall reimburse Landlord, as Additional Rent, for Tenant's Percentage of any such excess (such amount being hereinafter referred to as the "Operating Costs Excess"). Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating CostsCosts Excess, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating CostsCosts Excess, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be time and set forth in an amount equal a statement delivered by Landlord to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs Excess shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs Excess for such year, as shown on the Annual Statement within thirty (30) days (as hereinafter defined) for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.34.2.2, the difference; if the total of such remittances is less than the Operating Costs Excess for such year, Tenant shall pay the difference to Landlord within twenty thirty (2030) days from the date of Tenant's receipt of the Annual Statement. Following each calendar year, Landlord shall furnish to Tenant an itemized statement statement, in reasonable detail, of the Operating CostsCosts Excess during such year (the "Annual Statement"), prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

Operating Costs. Tenant shall pay to Landlord If, during the Tenant’s Percentage of Term hereof, Operating Costs (as hereinafter defined) incurred by Landlord in any calendar yearyear shall exceed Base Operating Costs, Tenant shall reimburse Landlord, as Additional Rent, for Tenant’s Percentage of any such excess (such amount being hereinafter referred to as the “Operating Costs Excess”). Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating CostsCosts Excess, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating CostsCosts Excess, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs Excess shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs Excess for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs Excess for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating CostsCosts Excess, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated. Landlord shall use reasonable efforts to provide Tenant with any such reconciliation statement within one hundred and twenty (120) days following the expiration of any calendar year during the Term, such statement prepared, allocated and computed in accordance with generally accepted accounting principles. This section shall survive the expiration or earlier termination of the Lease.

Operating Costs. Tenant shall covenants to pay to Landlord the Tenant’s Percentage of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar yearfiscal year of Landlord (“Landlord’s Fiscal Year”). Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar yearLandlord’s Fiscal Year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant▇▇▇▇▇▇’s Percentage of Operating Costs for the Calendar Landlord’s Fiscal Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.. This section shall survive the expiration or earlier termination of the Lease. ​

Operating Costs. The Tenant shall pay to the Landlord the Tenant’s Percentage 's proportionate share of the annual Operating Costs, as hereinafter defined, for each month of the Term. The amount of Operating Costs payable to the Landlord may be estimated by the Landlord for such period as the Landlord determines from time to time (as hereinafter definednot to exceed twelve (12) incurred by months), and the Tenant agrees to pay to the Landlord the amounts so estimated in any calendar year. Tenant shall remit to Landlordequal installments, in advance, on the first day of each calendar monthmonth during such period. Notwithstanding the foregoing, when bills for all or any portion of Operating Costs so estimated are actually received by Landlord, the Landlord may ▇▇▇▇ the Tenant for the Tenant's proportionate share thereof, less any amount ================================================================================ Commercial Office Lease. The Grip Building page 5 of 28 pages previously paid by Tenant to Landlord on account of such item(s) by way of estimated Operating Costs payments. Within a reasonable period of time after the end of the period for which estimated payments have been made, the Landlord shall submit to the Tenant a statement from the Landlord setting forth the actual amounts payable by the Tenant based on account actual costs. If the amount the Tenant has paid based on estimates is less than the amount due based on actual costs, the Tenant shall pay such deficiency within five (5) days after submission of such statement. If the amount paid by the Tenant is greater than the amount actually due, the excess may be retained by the Landlord to be credited and applied by the Landlord to the next due installments of the Tenant's proportionate share of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal or as to the Operating Costsfinal Lease Year, as reasonably estimated by provided Tenant is not in default, Landlord from time will refund such excess to timeTenant. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage 's proportionate share of Operating Costs for the Calendar Year. If, at final estimated period of the Term of this Lease shall be due and payable even though it may not be finally calculated until after the expiration of the year in respect of which monthly installments of Operating Costs Term. Accordingly, Landlord shall have been made as aforesaid, the total right to continue to hold Tenant's security deposit following expiration of such monthly remittances is greater than the Term until Tenant's share of actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably proratedhas been paid.

Operating Costs. Tenant To the extent Seller, as landlord under the Leases, is currently collecting from tenants under the Leases additional rent (collectively, “Expense Reimbursements”) to cover taxes, insurance, utilities (to the extent not paid directly by tenants), common area maintenance and other operating costs and expenses (collectively, “Operating Costs”) in connection with the ownership, operation, maintenance and management of the Property, Seller and Buyer shall pay to Landlord each receive a debit or credit, as the Tenant’s Percentage of case may be, for the difference between each tenants’ current account balances for 2012 for Operating Costs and amount of their respective Operating Costs reimbursable to Seller; provided, however, that, except as specifically set forth herein, in no event shall either party be responsible for crediting the other for any uncollected Expense Reimbursements for any tenant and the same shall be treated in the same manner as uncollected rent is treated in Section 6.1(a). To the extent that the CAM Reconciliation (as hereinafter defineddefined below) incurred by Landlord in any for calendar year. Tenant shall remit to Landlordyear 2012 reveals that Seller has over-collected Expense Reimbursements such that, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by if the end of the calendar yearoperating expense year under the Leases were the Closing Date, a sum equal Seller would be obligated to refund money to the Tenants (an “Over Collection”), rather than collect additional money from the Tenants (an “Under Collection”), said Over Collection shall be paid by Seller to Buyer at the Closing as a settlement statement credit and Buyer shall pay said Over-Collection to the respective tenant within thirty (30) days or otherwise in compliance with the lease obligations; provided, in the event of an Under Collection, the amount of the Under Collection shall be paid by Buyer to Seller outside of escrow within five (5) business days after receipt from the applicable Tenant in connection with the year-end Operating CostsCosts reconciliation process subject to and in accordance with the terms of Section 6.1(a). Notwithstanding the foregoing, prior to Closing, Buyer and Seller shall agree to a reasonable estimate of 2012 Under Collection as of the time of Closing, and Buyer shall pay such amount to Seller at Closing. Operating Costs for 2012 shall be reasonably estimated by Landlord the parties if final bills are not available. At least five (5) business days prior to the Closing Date, Seller shall provide Buyer with a reasonably detailed reconciliation for each Tenant showing all Operating Costs incurred by Seller from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th the beginning of the Initial Estimate then-current calendar year (2012) through the Closing Date, and any Expense Reimbursements collected by Seller during the same period of time and relating to such Tenant’s Percentage of , all in the form customarily submitted to each Tenant (the “CAM Reconciliation”). Operating Costs that are payable by tenants directly to the applicable service providers shall not be prorated between Seller and Buyer. Prior to Closing, Seller shall reconcile with the tenants in place during the calendar year 2011, the Tenant Expense Reimbursements for the Calendar Year. If, at calendar year 2011 and Seller shall reimburse to the expiration respective tenant(s) any Over Collection of Expense Reimbursement for calendar year 2011 prior to the year in respect of which monthly installments of Operating Costs Closing and shall have been made the right to collect any Under Collection of Expense Reimbursement for calendar year 2011 for one hundred eighty (180) days following the Closing. To the extent Buyer receives any amounts from tenants for Under Collection of Expense Reimbursement for calendar year 2011 and which are identified as aforesaidsame, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant Buyer shall pay the difference such amount to Landlord Seller within twenty ten (2010) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorateddays.

Operating Costs. Tenant shall pay to Landlord the Tenant’s Percentage of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord ▇▇▇▇▇▇▇▇ from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant▇▇▇▇▇▇’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

Operating Costs. (1) Subject to the provisions of Paragraph (2) below, Tenant shall pay an amount (per each rentable square foot in the Premises) ("Additional Rent") equal to its Proportionate Share of the difference --------------- between the Operating Costs (defined below) for any calendar year after calendar year 1998 and the actual Operating Costs for the calendar year 1998 (the "Expense Stop"). Landlord may make a good faith estimate of the ------------ Additional Rent to be due by Tenant for calendar year 1999 and for any calendar year thereafter or part thereof during the Term, and Tenant shall pay to Landlord the Tenant’s Percentage of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on or after January 1, 1999, and on the first day of each calendar monthmonth thereafter, an amount equal to the estimated payments on account Additional Rent for such calendar year or part thereof divided by the number of Operating Costsmonths therein. From time to time, such monthly amounts Landlord may estimate and re-estimate the Additional Rent to be sufficient due by Tenant and deliver a copy of the estimate or re-estimate to provide LandlordTenant. Thereafter, the monthly installments of Additional Rent payable by Tenant shall be appropriately adjusted in accordance with the estimations so that, by the end of the calendar yearyear in question, a sum equal to Tenant shall have paid all of the Operating Costs, Additional Rent as reasonably estimated by Landlord from time to timeLandlord. The initial monthly estimated payments Any amounts paid based on such an estimate shall be in an amount equal subject to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made adjustment as aforesaid, the total of such monthly remittances is greater than the herein provided when actual Operating Costs are available for each calendar year. (2) Notwithstanding anything to the contrary contained herein, the Additional Rent due hereunder shall not increase by more than 5% over the Additional Rent that was payable in the previous calendar year for increases in Operating Costs that are "controllable expenses", such yearas janitorial services, Landlord security or maintenance; however, no such limit shall promptly pay apply to Tenantnon-controllable costs, such as utilities, insurance, charges promulgated by government authorities, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement any other cost or expense outside of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods control of less than twelve (12) months shall be equitably proratedLandlord.

Operating Costs. Tenant shall pay to Landlord If, during the Tenant’s Percentage of term hereof, Operating Costs (as hereinafter defined) incurred by Landlord in any calendar yearyear shall exceed Base Operating Costs, Tenant shall reimburse Landlord, as additional rent, for Tenant's Percentage of any such excess (such amount being hereinafter referred to as the "Operating Costs Excess"). Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating CostsCosts Excess, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating CostsCosts Excess, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs Excess shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs Excess for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs Excess for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating CostsCosts Excess, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

Operating Costs. Tenant shall pay to Landlord the Tenant’s Percentage of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord ▇▇▇▇▇▇▇▇ from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

Operating Costs. Tenant shall pay to Landlord Tenant's Share of the Increased Operating Costs as follows: (i) Landlord shall submit to Tenant, before January 1 of each Subsequent Year, or as soon thereafter as Landlord has sufficient data, a reasonably detailed statement showing the estimated Increased Operating Costs for such Subsequent Year, which determination shall be made by Landlord based upon experience with actual costs and projections. At the first monthly Base Rent Payment date following the submittal of such statement and at each succeeding monthly rent payment date thereafter during the Subsequent Year, Tenant shall pay to Landlord an amount equal to one-twelfth (1/12th) of the Increased Operating Costs. If Landlord does not submit said statement to Tenant prior to January 1 of any Subsequent Year, Tenant shall continue to pay Tenant's Share of the Increased Operating Costs at the then existing rate until such statement is submitted and, thereafter, at the monthly Base Rent payment date next following the submittal of such statement Tenant shall pay Tenant's Share of the Increased Operating Costs based on the rate set forth in such statement plus, if the new rate is greater than the old rate, the difference accrued from January 1 of such Subsequent Year. Landlord may revise such estimated Increased Operating Costs at the end of any calendar quarter. (ii) On or before March 31 of the second and each succeeding Subsequent Year or as soon thereafter as Landlord has sufficient data, Landlord shall submit to Tenant a reasonably detailed statement showing the actual Building Operating Costs paid or incurred by Landlord during the previous calendar year. If Tenant's Share of the actual Increased Operating Costs is less than the amount of Tenant's Share of the estimated Increased Operating Costs for the previous Subsequent Year theretofore paid by Tenant, Landlord shall credit such difference against the next Increased Operating Costs payments coming due. If Tenant's Share of the actual Increased Operating Costs is more than the amount of Tenant's Share of the estimated Increased Operating Costs for such previous Subsequent Year theretofore paid by Tenant, Tenant shall pay to Landlord the Tenant’s Percentage full amount of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, difference at the expiration of monthly Base Rent payment date next following the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total submittal of such monthly remittances statement to Tenants. (iii) If the Expiration Date or the date of earlier termination of this Lease is greater other than the actual Operating Costs for such yearDecember 31, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay both the difference to Landlord within twenty (20) days from Base Year and the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months last Subsequent Year shall be equitably proratedprorated based on what the number of days in the Term in the last Subsequent Year bears to 365; and any amounts owed or to be credited pursuant to Paragraph 4.3.2 shall be paid at the time in the last Subsequent Year, or in the calendar year immediately following the last Subsequent Year, that such amount is calculated pursuant to Paragraph 4.3(ii).

Operating Costs. With reference to the Operating Costs described in this Section 2.2, it is agreed as follows: a) The Tenant shall pay to Landlord the Tenant’s Percentage of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on as additional rent, monthly, in advance, during the first day of each calendar monthLease Term, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum installments equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th one-twelfth (1/12) Tenant's proportionate share of the Initial Estimate of Tenant’s Percentage of Estimated Excess Operating Costs for the Calendar Year. If, at the expiration Premises in Excess of the Operating Costs ("Excess Operating Costs") incurred in the operation of the Building and Lot in calendar year in respect of which monthly installments of 1996 ("Base Year") defined below. The Estimated Excess Operating Costs shall have been be determined by Landlord based on the prior year's actual Operating Costs in accordance with Section 2.2.5(b) below. After presentation to Tenant following each lease year of a statement in reasonable detail summarizing the Operating Costs for such lease year, an adjustment shall be made as aforesaid, the total of such monthly remittances is greater than the to account for actual Operating Costs for such lease year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if . If the total amount of such remittances is Estimated Excess Operating Costs actually received by the Landlord from the Tenant for any lease year shall be less than the Excess Operating Costs for such lease year, then the amount of such difference shall be payable by the Tenant shall pay the difference to Landlord within twenty (20) days of receipt of the annual statements summarizing Operating Costs. If the total amount of the Estimated Excess Operating Costs actually received by the Landlord from the date Tenant for any lease year shall be greater than the Excess Operating Costs for such lease year, then the Landlord shall furnish to Tenant an itemized statement shall, at its option, within twenty (20) days of delivery of the annual statements summarizing Operating Costs either pay to the Tenant the amount of such excess or credit an equal amount against the Tenant'srental obligations hereunder. b) As used herein, Estimated Excess Operating Costs means, with respect to the calendar year 1997, an amount equal to the product obtained by multiplying $.10 times the number of square feet of Rentable Area described on Page 1, and with respect to subsequent lease years an amount equal to 105% of the Excess Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement adjusted to reflect full occupancy for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.months, for the immediately preceding lease year, adjusted, if necessary, to reflect any changes in the Rentable Area, as set forth in Exhibit A.

Operating Costs. Tenant shall pay to Landlord the Tenant’s Percentage of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Yearcalendar year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than Tenant’s Percentage of the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than Tenant’s Percentage of the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

Operating Costs. The Tenant shall pay to Landlord the landlord the Tenant’s Percentage 's proportionate share of the amount by which the annual Operating Costs (Costs, as hereinafter defined, for each calendar year exceed the Operating Costs incurred during the Base Year specified in the Lease Summary but not to exceed five percent (5%) incurred per calendar year cumulative over the Base Year, excluding taxes, assessments, insurance, utilities and contracts which are based on increases in CPI or other increases beyond Landlord's control. Such excess is referred to for purposes of this Lease as the "Increased Operating Costs." Tenant's obligation to pay its proportionate share of Increased Operating Costs shall commence as of the beginning of the first full calendar year following the Base Year. The amount of Increased Operating Costs payable to the Landlord may be estimated by the Landlord for such period as the Landlord determines from time to time (not to exceed twelve (12) months), and the Tenant agrees to pay to the Landlord the amounts so estimated in any calendar year. Tenant shall remit to Landlordequal installments, in advance, on the first day of each calendar monthmonth during such period. Notwithstanding the foregoing, when ▇▇▇▇ for all or any portion of Increased Operating Costs so estimated payments are actually received by Landlord, the Landlord may ▇▇▇▇ the Tenant for the Tenant's proportionate share thereof, less any amount previously paid by Tenant to landlord on account of such item(s) by way of estimated Increased Operating Costs, such monthly amounts to be sufficient to provide Costs payments. Landlord, by at their sole discretion, may engage a security company to patrol the property during off hours and restrict access to the property during this time. The cost of such security shall be passed through as additional rent to all tenants and paid based on Tenant's pro-rata share of space. In the event Tenant hires their own security company or employees, then Tenant shall have the option of not participating in the property's pro-rata share of security costs except the cost of maintaining an access gate to the park. Within a reasonable period of time after the end of the calendar yearperiod for which estimated payments have been made, a sum equal the Landlord shall submit to the Tenant a statement from the Landlord setting forth the actual amounts payable by the Tenant based on actual costs. If the amount the Tenant has paid based on estimates is less than the amount due based on actual costs, the Tenant shall pay such deficiency within five (5) days after submission of such statement. If the amount paid by the Tenant is greater than the amount actually due, the excess may be retained by the Landlord to be credited and applied by the Landlord to the next due installments of the Tenant's proportionate share of Increased Operating Costs, or as reasonably estimated by to the final Lease Year, provided Tenant is not in default, Landlord from time will refund such excess to timeTenant. The initial monthly estimated payments shall be in an amount equal to 1/12th Tenant's proportionate share of the Initial Estimate of Tenant’s Percentage of actual Increased Operating Costs for the Calendar Year. If, at final estimate period of the Term of this Lease shall be due and payable even though it may not be finally calculated until after the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such yearTerm. Accordingly, Landlord shall promptly pay have the right to continue to hold Tenant, or credit against 's security deposit following expiration of the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total Term until Tenant's share of such remittances is less than the actual Increased Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably proratedhas been paid.

Operating Costs. Tenant LESSEE shall pay to Landlord LESSOR as additional rent a proportionate share (based on square footage leased by LESSEE compared with the Tenant’s Percentage square footage of all premises to which such costs and expenses are attributable) of any increase in (x) the aggregate of all costs and expenses incurred by LESSOR in connection with the operation, maintenance, insurance and management of the building of which the leased premises are a part (hereinafter the "Operating Costs Costs"), over (y) the "Base Operating Costs" (as hereinafter defined). Operating Costs shall include a reasonable annual charge-off of the cost of any capital repairs or improvements made by LESSOR for the building or the leased premises during the term of this lease and which are for the purpose of reducing Operating Costs, the schedule for which shall be based on the useful life (under generally accepted accounting principles, consistently applied) incurred by Landlord of the repair or improvement, provided that no such capital repairs or improvements made prior to the fifth anniversary of the Commencement Date shall be included in Operating Costs. In the event that during any calendar year (or part thereof) occurring during the Term, the building has an annual occupancy rate of less than one hundred percent (100%), for purposes hereof, any Operating Costs that vary with the level of occupancy of the building with respect to such calendar year (or part thereof) shall be extrapolated as though the annual occupancy rate were one hundred percent (100%) for such calendar year (or part thereof). LESSEE shall make payment within thirty (30) days of written notice from LESSOR that such increased Operating Costs are payable, and any additional rent shall be prorated should the lease terminate before the end of any calendar year. Tenant LESSEE shall remit to Landlord, on the first day of each calendar month, estimated make such payments on account of Operating Costs, such at the option of LESSOR, on a monthly basis on the days on which the rent under Paragraph 1 of this lease is payable, in amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time LESSOR. Notwithstanding anything to time. The initial monthly estimated payments shall be the contrary contained in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. Ifthis Section 5, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaidnot include any capital expenditures arising out of or resulting from (i) defective work, construction or materials by or on behalf of LESSOR, (ii) the total failure of such monthly remittances is greater than LESSOR to perform any scheduled maintenance or service, or (iii) the gross negligence or willful misconduct of LESSOR or its agents, employees, or contractors. Management fees incurred in favor of related entities shall not exceed market rates (and in no event exceed four percent (4%) of the actual gross rent from the building, whether or not such fee is actually paid), nor shall Operating Costs for such yearinclude the following: a) Costs billed to another tenant; b) Costs of repairs or replacements resulting from casualty losses that would be covered under a standard "all-risk" or "special form" policy of casualty insurance (but any deductible will be included, Landlord shall promptly pay up to Tenant$10,000), or credit against eminent domain takings, to the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement extent of the Operating Costssettlement or award proceeds; c) Depreciation or amortization of the building, preparedlot or any part thereof or improvements thereto; d) Principal or interest payments on loans secured by mortgages on the Property; e) Replacement or contingency reserves; f) Ground lease rents or payments of any fees relating to leasing, allocated financing or other services; g) Brokerage commissions and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and legal fees payable by Tenant LESSOR for or with respect to periods new leases for the Building; h) Legal or professional fees relating to new leasing or financing; i) Promotional, advertising or public relations expenses; j) Services provided for a particular tenant (other than LESSEE) and not tenants in general; k) Any costs or expenses relating to (1) any breach by LESSOR of less than twelve its obligations hereunder, or (122) months the compliance with any applicable laws, rules, orders, regulations, ordinances, permits or approvals in effect as of the date of this Lease; l) Any costs or expenses relating to environmental remediation unless the need for such remediation arose as a result of the negligent act or omission of LESSEE or LESSEE's agents, employees or contractors (in which case LESSEE shall be equitably proratedsolely liable for such costs or expenses); m) Any costs or expenses reimbursed to LESSOR by tenants or third parties, including without limitation, costs of convenience electricity (lights and plugs) supplied to other tenants of the Building; n) Any costs or expenses relating to any in-Building food service facilities; and o) Compensation, fringe benefits, insurance premiums and payroll taxes of any person not engaged in such operation, management or maintenance work at the Building on a full-time basis (but such expenses shall be ratably allocated to Operating Costs based on the time devoted to the Building) or other administrative overhead or profit increment fees and costs paid by LESSOR to itself (or to its affiliates or subsidiaries) except the management fee referred to herein.

Operating Costs. Prior to the commencement of the term of this Lease and prior to March 1 of each calendar year thereafter, or as soon thereafter as practicable. Landlord shall furnish Tenant shall pay to Landlord with a written statement of the Tenant’s Percentage estimated operating costs per square foot of Operating Costs (as hereinafter defined) incurred by Landlord in any gross rentable area of the Building for such calendar year. Tenant shall remit to Landlord, on During the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total remainder of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such calendar year, Tenant shall pay Landlord at the difference times that the monthly Base Rent is due and payable hereunder an amount equal to Landlord one-twelfth (1/12) of the product of the number of gross square feet in the Premises times such estimate. If Tenant's monthly payment of estimated operating costs is greater than the monthly amount of operating expenses Tenant paid for the then elapsed calendar months of such calendar year, then, within twenty ten (2010) days from after such written estimate is given. Tenant shall also pay to a Landlord the date deficiency for said elapsed calendar months. After the expiration of each calendar year falling in whole or in part within the term hereof. Landlord shall furnish to Tenant an itemized with a written statement of the Operating Costsactual operating costs of the Project (and, preparedif applicable, allocated the Shared Parking Area) for the preceding calendar year, and computed in accordance with generally accepted accounting principles. Any reimbursement if such actual operating costs for Operating Costs due and payable by Tenant with respect to periods of such preceding calendar year are more or less than twelve (12) months the estimate, an appropriate adjustment shall be equitably proratedmade within ten (10) days after such written statement is furnished. For the purposes hereof, operating costs shall be deemed to mean all taxes (both general and special and whether now or hereafter enacted), assessments or governmental charges levied or assessed against the Project {and, if applicable, the Shared Parking Area) or any part thereof, and all costs which, for federal tax purposes, may be expensed rather than capitalized, and which Landlord will or does incur, pay or become obligated to pay in owning, maintaining, operating and leasing the Project (and, if applicable the Shared Parking Area) and appurtenances thereto, exclusive of interest and depreciation, Without limiting the generality of the fore going operating costs shall include personal property taxes, fees or permi1:s or licenses, a management fee or fees not to exceed five percent (5%) of the Base Rent, landscaping and gardening cleaning, painting, decorating, paving, lighting, security guards, leasing and maintenance of music and intercom system; If any, removal of snow, trash, garbage and other refuse, heating, ventilating and air-conditioning, costs and expenses in connection with meeting federal state, or local environmental energy standards, fire protection, water and sewage and other utility charges not separately metered and charged to particular Tenants, the cost of all types of insurance carried or paid for by Landlord, accounting costs, all costs of maintaining, repairing and replacing paving, curb, sidewalks, roadways, landscaping, drainage, lighting and utility systems, the cost of maintaining and repairing the walls, roof and other portions of the Building, the cost of maintaining and repairing all heating, ventilating and air-conditioning equipment and depreciation thereof, rental changes for machinery and equipment used in maintaining and operating the Project (and, if applicable, the Shared Parking Area), salaries and compensation of personnel connected with such operation and maintenance and deductible amounts payable under insurance policies. Landlord, in its reasonable discretion, shall from time to time determine the method of computing and operating costs, the allocation of operating costs to various types of space within the Building, and the extent of the appurtenances to the Project, and Tenant shall be bound thereby. Tenant's failure to pay Tenant's share of operating costs in the manner herein provided shall be treated hereunder in the same manner as a default in the payment of Base Rent.

Operating Costs. Tenant shall pay to Landlord the Landlord, as Additional Rent, amounts equal to ▇▇▇▇▇▇’s Share of Operating Costs. For purposes of determining Tenant’s Percentage Share of Operating Costs, for any calendar year during which the Building is less than 95% occupied, the Operating Costs shall be equitably adjusted, on an item-by-item basis, for such calendar year to reflect the amount which, in Landlord’s reasonable judgment exercised on a consistent basis from year to year, the Operating Costs would have been if the Building had been 95% occupied during the entire calendar year. Tenant’s Share of Operating Costs (as hereinafter defined) incurred shall be estimated in good faith by Landlord in any at the end of each calendar year. Tenant shall remit year based on the most recent cost data available to Landlord, and shall be payable in equal estimated monthly installments on the first day of each calendar monthmonth during the Lease Term, estimated payments on account subject to readjustment from time to time as determined by Landlord and also when actual Operating Costs are determined. After a readjustment, any shortage shall be due and payable by Tenant within 15 days of demand by Landlord and any excess shall, unless an Event of Default has occurred, be credited against future Additional Rent obligations, or refunded promptly if the Lease Term has ended and Tenant has no further obligations to Landlord. Landlord shall provide Tenant upon request with reasonable supporting documentation for the Operating Costs, Costs for the prior calendar year; provided that such monthly amounts to be sufficient to provide Landlord, request is received by Landlord within six months after the end of the calendar year, a sum equal year to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of which such Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably proratedrelate.

Operating Costs. The Tenant shall pay to the Landlord the Tenant’s Percentage 's proportionate share of the annual Operating Costs, as hereinafter defined, for each month of the Term. The amount of Operating Costs payable to the Landlord may be estimated by the Landlord for such period as the Landlord determines from time to time (as hereinafter definednot to exceed twelve (12) incurred by months), and the Tenant agrees to pay to the Landlord the amounts so estimated in any calendar year. Tenant shall remit to Landlordequal installments, in advance, on the first day of each calendar monthmonth during such period. Notwithstanding the foregoing, when bills for all or any portion of Operating Costs so estimated are actually received by Landlord, the Landlord may bill the Tenant for the Tenant's proportionate share there▇▇, less any amount ================================================================================ Commercial Office Lease. The Grip Building page 5 of 28 pages previously paid by Tenant to Landlord on account of such item(s) by way of estimated Operating Costs payments. Within a reasonable period of time after the end of the period for which estimated payments have been made, the Landlord shall submit to the Tenant a statement from the Landlord setting forth the actual amounts payable by the Tenant based on account actual costs. If the amount the Tenant has paid based on estimates is less than the amount due based on actual costs, the Tenant shall pay such deficiency within five (5) days after submission of such statement. If the amount paid by the Tenant is greater than the amount actually due, the excess may be retained by the Landlord to be credited and applied by the Landlord to the next due installments of the Tenant's proportionate share of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal or as to the Operating Costsfinal Lease Year, as reasonably estimated by provided Tenant is not in default, Landlord from time will refund such excess to timeTenant. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage 's proportionate share of Operating Costs for the Calendar Year. If, at final estimated period of the Term of this Lease shall be due and payable even though it may not be finally calculated until after the expiration of the year in respect of which monthly installments of Operating Costs Term. Accordingly, Landlord shall have been made as aforesaid, the total right to continue to hold Tenant's security deposit following expiration of such monthly remittances is greater than the Term until Tenant's share of actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably proratedhas been paid.

Operating Costs. Tenant shall pay to Landlord along with its monthly installment of Minimum Rent, as Additional Rent, Tenant's Proportionate Share of all costs incurred by Landlord in maintaining, lighting, repairing, replacing, operating, cleaning, painting, landscaping, securing, managing, and insuring the portions of the Shopping Center which are the responsibility of the Landlord hereunder (collectively the "Operating Costs"). By way of illustration, but not limitation, Operating Costs shall include the payment of all insurance premiums (including but not limited to Worker's Compensation, casualty, fire and rental insurance, salaries and fringe benefits for on-site employees, management fees in an amount up to three percent (3%) of the total Minimum Rent and Percentage Rent payable by all tenants of the Shopping Center, real estate taxes and assessments associated with the Shopping Center, trash removal (to the extent not paid pursuant to Section 3.3),utilities and other services benefitting or serving the Premises, sprinkler system repairs and maintenance, advertising, promotions Operating Costs shall also include real estate tax service and consulting cost and fees, and Tenant shall receive a credit equal to Tenant's Proportionate Share of any savings generated thereby. Tenant's monthly payments of Operating Costs shall be based on estimates calculated by Landlord, and such estimates shall be adjusted as necessary as determined by landlord. Each Year, Landlord shall furnish Tenant a statement setting forth the actual Operating Costs paid or payable by Landlord during the prior period. If the Operating Cost paid by Tenant pursuant to this Article are less than Landlord's actual Operating Costs, Tenant shall pay to Landlord the difference between the amount paid by Tenant and Tenant’s Percentage 's pro rata share of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the actual Operating Costs, as reasonably estimated calculated above, within thirty (30) days after notification by Landlord from time to timeLandlord. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, If the total of such monthly remittances the estimated payments is greater than the actual Operating Costs Additional Rent for such yearthe same period, Landlord Tenant shall promptly pay to Tenant, or receive a credit against the next accruing payments due payment of estimated Additional Rent. Landlord shall have the right, Yearly , to adjust the monthly deposit to be made paid by Tenant pursuant to this subsection 4.2.3, for the difference; if the total next period based upon Tenant's actual pro rata share of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably proratedpreceding period.

Operating Costs. Tenant shall pay to Landlord the Tenant’s Percentage of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Yearcalendar year. Following the end of each calendar year, including the first calendar year, Landlord shall deliver to Tenant a reasonably detailed statement of the Operating Costs payable under this Section 4.2.3 for such calendar year, prepared, allocated and computed in accordance with generally accepted accounting principles (the "Annual Operating Statement"). If, at the expiration of the calendar year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such calendar year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference, unless Tenant requests in writing that Landlord pay any such difference to Tenant; if the total of such remittances is less than the Operating Costs for such calendar year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish furnishes to Tenant an itemized statement of the Annual Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principlesStatement. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

Operating Costs. Within a reasonable time after calendar year 2018, Landlord shall provide Tenant shall pay with an itemized statement of Base Operating Costs, together with copies of all bills issued by governmental authorities with respect to Landlord Taxes included in Base Operating Costs. If, during the Tenant’s Percentage of Term hereof, Operating Costs (as hereinafter defined) incurred by Landlord in any calendar yearyear shall exceed Base Operating Costs, Tenant shall reimburse Landlord, as Additional Rent, for Tenant’s Percentage of any such excess (such amount being hereinafter referred to as the “Operating Costs Excess”). Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating CostsCosts Excess, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating CostsCosts Excess, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be time and set forth in an amount equal a statement delivered by Landlord to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs Excess shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs Excess for such year, as shown on the Annual Statement within thirty (30) days (as hereinafter defined) for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.34.2.2, the difference; if the total of such remittances is less than the Operating Costs Excess for such year, Tenant shall pay the difference to Landlord within twenty thirty (2030) days from the date of Tenant’s receipt of the Annual Statement. Following each calendar year, Landlord shall furnish to Tenant an itemized statement statement, in reasonable detail, of the Operating CostsCosts Excess during such year (the “Annual Statement”), prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

Operating Costs. Tenant During the term hereof, Subtenant shall pay to Landlord the Tenant’s Percentage Sublandlord its pro rata portion of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end all of the calendar year, a sum equal following costs incurred with respect to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total Master Lease Premises (all of such monthly remittances is greater than the actual Operating Costs for such year, Landlord costs shall promptly pay hereinafter be referred to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20as "Additional Rent") days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted the terms set forth herein: (i) Utilities, (ii) Common area Maintenance, Cleaning paid monthly. Insurance, Real and Personal Property Taxes, shall be calculated on a base year of 1999. Additional Rent shall be estimated (based upon past costs and apparent trends, if any) at the Commencement Date and again on each February 15 during the term hereof and shall be communicated to Subtenant in writing. Upon request, Sublandlord shall provide supporting documentation regarding the estimated Additional Rent to Subtenant. Upon receipt of such estimate and, if requested, supporting documentation, Subtenant shall pay to Sublandlord such estimated Additional Rent, in monthly installments along with the primary rent. On each February 15 during the term hereof and within forty-five (45) days after the expiration or sooner termination hereof, Sublandlord shall account for all such Additional Rent for the previous calendar year or portion thereof and promptly provide a reasonable itemization of such accounting principlesto Subtenant. Any reimbursement for Operating Costs due and payable by Tenant Within thirty (30) days after Subtenant's receipt of such itemization, a correcting payment shall be made between the parties to reconcile the estimated Additional Rent paid during the previous period to the actual Additional Rent incurred under the Master Lease with respect to periods of less than twelve (12) months shall be equitably proratedthe Premises.

Operating Costs. Along with Fixed Minimum Rent and as part of Additional Rent, Tenant shall covenants to pay it share of all increases in the costs of maintaining, repairing, operating and insuring the Common Areas and other portions of the Shopping Center which are the responsibility of the Landlord including management fees and an administrative cost equal to Landlord fifteen percent (15%) of the Tenant’s Percentage of Operating Costs foregoing costs, (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlordcollectively, on the first day of each calendar month, estimated payments on account of "Operating Costs, such monthly amounts to ") over the Base Expense Stop in the amount of $99,000.00. Increases shall not be sufficient to provide Landlord, by the end of the calendar greater than five percent (5%) per year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to timecumulative. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments 's share of Operating Costs shall have been made as aforesaid, be determined by the total following formula: $99,000.00 (Base 33,388 (Gross Leasable Area of Premises) X Operating Costs) ---------------------------------------- ---------------- 72,213 (Gross Leasable Area of Shopping Center) Tenant's pro rata share is 46.235% The gross leasable area of the Premises is measured from the center line of demising wall and to the exterior faces of exterior walls or windows. Landlord shall estimate these costs annually and Tenant covenants to pay one-twelfth (1/12th) of such estimated amount monthly, along with its monthly remittances is greater than the installment of Fixed Minimum Rent. Landlord shall provide to Tenant a written reconciliation of actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against payments received from Tenant by May 1 of the next accruing succeeding Lease Year. Any excess payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the shall be applied towards next month's (or months') Operating Costs for such year, Tenant and any shortage shall pay the difference be paid to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement with Tenant's next Rent payment. Tenant's share of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably proratedprorated for any Partial Lease Year hereunder. Failure of Landlord to provide the statement called for hereunder within the time of prescribed shall not relieve Tenant from its obligation hereunder. SEE SPECIAL STIPULATION RIDER #2.

Operating Costs. Tenant shall pay to Landlord the Tenant’s Percentage of Landlord, Operating Costs (as ---------------- hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord ▇▇▇▇▇▇▇▇ from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.34.2.4, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the such Operating Costs, prepared, allocated prepared and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

Operating Costs. The Tenant shall pay to the Landlord the Tenant’s Percentage 's proportionate share of the amount by which the annual "Operating Costs" (subsequently defined), for each calendar year exceed the Operating Costs incurred during the Base Year specified in the Lease . Summary (i.e. 1995). Such excess is referred to for purposes of this Lease as hereinafter definedthe "Increased Operating Costs." The Tenant's obligation to pay its proportionate share of Increased Operating Costs shall commence as of the beginning of the first full calendar year following the Base Year. The amount of Increased Operating Costs payable to the Landlord may be estimated by the Landlord for such period as the Landlord determines from time to time (not to exceed twelve (12) incurred by months), and the Tenant agrees to pay to the Landlord the amounts so estimated in any calendar year. Tenant shall remit to Landlordequal installments, in advance, on the first day of each calendar monthmonth during such period. Notwithstanding the foregoing, when bills for all or any portion of Increased Operating Costs so estimated payments are actually received by the Landlord, the Landlord may bill the Tenant for the Tenant's proportionate share thereof, less any amount previously paid by the Tenant to the Landlord on account of such item(s) by way of estimated Increased Operating Costs, such monthly amounts to be sufficient to provide Landlord, by Costs payments. Within a reasonable period of time after the end of the calendar yearperiod for which estimated payments have been made, a sum equal the Landlord shall submit to the Tenant a statement from the Landlord setting forth the actual amounts payable by the Tenant based on actual costs. If the amount the Tenant has paid based on estimates is less than the amount due based on actual costs, the Tenant shall pay such deficiency within ten (10) days after submission of such statement. If the amount paid by the Tenant is greater than the amount actually due, the excess may be retained by the Landlord to be credited and applied by the Landlord to the next due installments of the Tenant's proportionate share of Increased Operating Costs, or as reasonably estimated by to the final Lease Year, provided the Tenant is not in default, the Landlord from time will refund such excess to timethe Tenant. The initial monthly estimated payments shall be in an amount equal to 1/12th Tenant's proportionate share of the Initial Estimate of Tenant’s Percentage of actual Increased Operating Costs for the Calendar Year. If, at final estimate period of the Term of this Lease shall be due and payable even though it may not be finally calculated until after the expiration of the year in respect Term. Accordingly, the Landlord shall have the right to continue to hold the Tenant's security deposit following expiration of which monthly installments the Term until the Tenant's share of actual Increased Operating Costs shall have has been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably proratedpaid.

Operating Costs. (a) In addition to the Base Rent provided for in Paragraph 3 above, starting from the Commencement Date, Sublessee shall reimburse Ariba for all of the costs required to be paid by Ariba as the Tenant under the Master Lease, directly or indirectly, pursuant to Article 6 and Article 7 of the Master Lease (collectively, "Operating Costs"). (b) Sublessee shall pay to Landlord Ariba the Tenant’s Percentage of Operating Costs (as hereinafter defined) incurred by Landlord in on demand, at intervals not more frequent than monthly, less the amount of any calendar year. Tenant shall remit to Landlord, on the first day of each calendar month, monthly estimated payments on account thereof made by Sublessee pursuant to the requirements of Operating Costs, such monthly amounts subparagraph 4(c) below. Such demand shall include copies of any statements furnished to be sufficient to provide Landlord, Ariba by the end of Landlord. (c) Ariba shall have the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord right from time to timetime to prepare reasonable estimates of the Operating Costs payable by Sublessee hereunder and to require, by written notice to Sublessee, that Sublessee pay such estimated amounts to Ariba, in monthly installments, in advance, together with Sublessee's payments of Base Rent. The initial All such monthly estimated payments shall be in an amount equal credited against the Operating Costs payable by Sublessee for the calendar year to 1/12th which such monthly estimated payments pertain. In the event Sublessee's monthly estimated payments of Operating Costs for any calendar year are greater than the Initial Estimate of Tenant’s Percentage Operating Costs payable by Sublessee for such calendar year, Sublessee shall be entitled to credit the overpayment against any amounts next coming due from Sublessee hereunder, or, if such overpayment is of Operating Costs for the Calendar Year. If, at the expiration of the calendar year in respect of which the Term ends and no further estimated monthly installments payments of Operating Costs are due from Sublessee to Ariba, Ariba shall have been made as aforesaid, refund such overpayment to Sublessee within thirty (30) days after the total time at which the amount of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs payable by Sublessee for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably proratedfinal calendar year has been determined.

Operating Costs. Tenant shall pay to Landlord If, during the Tenant’s Percentage of Term hereof, Operating Costs (as hereinafter defined) paid or incurred by Landlord in any calendar year. twelve-(12)-month period established by Landlord (an “Operating Year”) shall exceed Base Operating Costs, Tenant shall remit reimburse Landlord for the Tenant’s Percentage of any such excess (such amount being hereinafter referred to as the “Operating Cost Excess”). Except as otherwise provided in the immediately following paragraph Tenant shall pay the Operating Cost Excess to Landlord within thirty (30) days from the date Landlord shall furnish to Tenant an itemized statement thereof, prepared, allocated and computed in accordance with then prevailing customs and practices of the real estate industry in the Market Area consistently applied. At the election of Landlord, Tenant shall pay to Landlord, as Additional Rent on the first day of each calendar monthmonth during the Term but otherwise in the manner provided for the payment of Annual Fixed Rent, estimated payments on account of Operating CostsCost Excess, such monthly amounts to be payable in equal installments (subject to the next following sentence) and sufficient to provide to Landlord, by the end of the calendar yeareach Operating Year, a sum equal to the Operating CostsCost Excess for such Operating Year, as reasonably estimated by Landlord from time to timetime during such Operating Year. The initial Notwithstanding the foregoing, if during any Operating Year, Landlord reasonably determines that the estimated monthly installments payable by Tenant are materially inaccurate, then Landlord shall have the right to revise the estimated payments shall be in an amount equal monthly installments payable by Tenant to 1/12th Landlord on account of the Initial Estimate Operating Cost Excess for such Operating Year; provided, however, that Landlord shall deliver written notice to Tenant of Tenant’s Percentage of such revision and Landlord shall not exercise its right hereunder more than once in any Operating Costs for the Calendar Year. If, at the expiration of the year each Operating Year in respect of which monthly installments of Operating Costs Cost Excess shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs Cost Excess for such yearOperating Year, Landlord shall credit such overpayment against Tenant’s subsequent obligations on account of Operating Costs (or promptly pay refund such overpayment if the Term of this Lease has ended and Tenant has no further obligation to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the differenceLandlord); if the total of such remittances is less than the Operating Costs Cost Excess for such yearOperating Year, Tenant shall pay the difference to Landlord within twenty ten (2010) days from after being so notified by Landlord. In no event shall Tenant be entitled to receive any reimbursement or credit if Operating Costs for any Operating Year are less than Base Operating Costs. The obligations of Landlord and Tenant pursuant to this Subsection 4.2.2 with respect to the date Landlord payment or credit of underpayments and overpayments shall furnish survive the termination of this Lease. In the event that the Commencement Date shall occur or the Term of this Lease shall expire or be terminated during any Operating Year or Tenant’s Percentage shall be modified during any Operating Year due to Tenant an itemized statement a change in the rentable area of the Building and/or the Premises or otherwise, as the case may be, then the amount of Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and Cost Excess which may be payable by Tenant with respect to periods of less than twelve (12) months as provided in this Subsection 4.2.2 shall be equitably proratedprorated on a daily basis based on a three-hundred-sixty-five-(365)-day Operating Year.

Operating Costs. Tenant shall pay to Landlord If, during the Tenant’s Percentage of Term hereof, Operating Costs (as hereinafter defined) incurred by Landlord in any calendar yearyear shall exceed Base Operating Costs, Tenant shall reimburse Landlord, as additional rent, for Tenant’s Percentage of any such excess (such amount being hereinafter referred to as the “Operating Costs Excess”). Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating CostsCosts Excess, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating CostsCosts Excess, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs Excess shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs Excess for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs Excess for such year, Tenant shall pay the difference to Landlord within twenty thirty (2030) days from after the date Tenant receives from Landlord shall furnish to Tenant an itemized statement of the Operating CostsCosts Excess, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated. This section shall survive the expiration or earlier termination of the Lease.

Operating Costs. (1) In addition to the fixed monthly rental set forth in paragraph A above, Tenant shall pay to Landlord throughout the Tenant’s Percentage term of this Lease, as additional rental, two percent (2%) (being the approximate and agreed upon proportion which the floor area of the demised premises [7,172] bears to the architectural and engineering (A&E) design figure for total area of the Building [296,733]) of the Actual Operating Expenses. Tenant shall receive an annual credit in the amount of $300 to be applied toward payment of Operating Costs Expenses. (as hereinafter defined2) incurred by The Projected Operating Expenses are estimated to be Four Dollars and Fifty Cents ($4.50) per square foot of total area of the Building for 1993. (3) Upon the Lease Commencement Date, and thereafter at the beginning of each calendar year during the term of this Lease, Landlord in any shall provide Tenant with a statement showing Landlord's Projected Operating Expenses for such calendar year. Tenant Tenant's proportionate share of the Projected Operating Expenses shall remit to Landlordbe due and payable, in equal monthly installments, in advance, on the first (1st) day of each and every calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total month of such monthly remittances is greater than year. (4) Within the actual Operating Costs for such yearperiod of ninety (90) days (or as soon thereafter as possible) after the close of each calendar year during the term of this Lease, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by give Tenant pursuant to this subsection 4.2.3, the difference; if the total a statement of such remittances is less than year's Actual Operating Expenses and a comparison of same with the Projected Operating Costs Expenses. Tenant's proportionate share of the amount by which the Actual Operating Expenses for such year, Tenant year exceeds the Projected Operating Expenses for such year shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs be due and payable by Tenant with respect within thirty (30) days of receipt of said statement. If any year-end statement provided by Landlord to periods of Tenant pursuant to this paragraph shows that the Actual Operating Expenses during the year covered by that statement was less than twelve (12) months the Projected Operating Expenses on which monthly payments were made for that year, ▇▇▇▇▇▇'s proportionate share of the overpayments for that year may be deducted by Tenant from its next payment or payments of fixed monthly rental. Any such overpayments by ▇▇▇▇▇▇ during the last calendar year of the term of this Lease shall be equitably proratedrefunded within ninety (90) days after the close of such calendar year, unless an event of default shall have occurred and shall be continuing.

Operating Costs. Tenant shall pay to Landlord If the Tenant’s Percentage of Operating Costs (as hereinafter defined) incurred by Landlord in during any calendar year. lease year exceed the Base Operating Costs, then Tenant shall remit pay to Landlord, on as additional rent, Tenant’s Proportionate Share of such excess (the first day of each calendar month, estimated payments “Operating Costs Excess”). The Tenant shall pay to Landlord pro rata monthly installments on account of the projected Operating Costs, such monthly Costs Excess for each lease year in amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord calculated from time to time. The initial monthly estimated payments shall be in time by Landlord, with an amount equal to 1/12th adjustment made after the close of the Initial Estimate of Tenant’s Percentage of lease year to account for the actual Operating Costs Excess for the Calendar Yearsuch lease year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, If the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable installments paid by Tenant with respect to periods any lease year is greater than Tenant’s Proportionate Share of the actual Operating Costs Excess for such lease year, then Tenant shall be entitled to a credit against Tenant’s monthly installments on account of projected Operating Costs Excess hereunder in the amount of such difference or, if the Lease Term has expired and Tenant has no outstanding monetary obligations to Landlord, then Landlord shall promptly pay such amount to Tenant. If the total of such monthly installments actually paid by Tenant is less than twelve Tenant’s Proportionate Share of the actual Operating Costs Excess for such lease year, then Tenant shall pay to Landlord the amount of such difference, as additional rent, within thirty (1230) months days after Tenant receives Landlord’s invoice therefor. As used in this Lease, the term “lease year” shall be equitably proratedmean each calendar year (or part thereof) in which any part of the Term occurs.

Operating Costs. Tenant shall covenants to pay to Landlord the Tenant’s Percentage of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated. This section shall survive the expiration or earlier termination of this Lease.

Operating Costs. Tenant shall pay to Landlord the Landlord, as Additional Rent, an amount (“Tenant’s Operating Cost Share”) equal to Tenant’s Percentage of Operating Costs (as hereinafter defined) paid or incurred by Landlord in any calendar yeartwelve-month period established by Landlord (an “Operating Year”). Except as otherwise provided in the immediately following paragraph Tenant shall remit pay Tenant’s Operating Cost Share to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized year-end statement thereof, prepared, allocated and computed in accordance with then prevailing customs and practices of the real estate industry in the San Diego area, consistently applied. At the election of Landlord, Tenant shall pay to Landlord, as Additional Rent on the first day of each calendar monthmonth during the term but otherwise in the manner provided for the payment of Annual Fixed Rent, estimated payments on account of Tenant’s Operating CostsCost Share, such monthly amounts to be sufficient to provide to Landlord, by the end of the calendar yeareach Operating Year, a sum equal to the Tenant’s Operating CostsCost Share for such Operating Year, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of time during such Operating Costs for the Calendar Year. If, at the expiration of the year each Operating Year in respect of which monthly installments instalments of Tenant’s Operating Costs Cost Share shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Tenant’s Operating Costs Cost Share for such yearOperating Year, Landlord shall credit such overpayment against Tenant’s subsequent obligations on account of Operating Costs (or promptly pay refund such overpayment if the term of this Lease has ended and Tenant has no further obligation to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the differenceLandlord); if the total of such remittances is less than the Tenant’s Operating Costs Cost Share for such yearOperating Year, Tenant shall pay the difference to Landlord within twenty thirty (2030) days from after being so notified by Landlord and provided with the date Landlord shall furnish to Tenant an itemized year-end statement of the Operating Costs. In the event that the Rent Commencement Date shall occur or the term of this Lease shall expire or be terminated during any Operating Year or Tenant’s Percentage shall be modified during any Operating Year due to a change in the rentable area of the Building and/or the Premises or otherwise, preparedas the case may be, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for then the amount of Tenant’s Operating Costs due and Cost Share which may be payable by Tenant with respect to periods of less than twelve (12) months as provided in this Section 4.4 shall be equitably proratedpro rated on a daily basis based on a 365 day Operating Year.

Operating Costs. Subject to paragraph 4(b), above, Tenant shall pay to Landlord Landlord, as additional rent, the Tenant’s Percentage of Operating Costs (as hereinafter defined) total operating costs incurred by Landlord in any its ownership and operation of the Premises (including the Common Area) as defined below. Operating costs shall be paid by Tenant as follows: Tenant’s estimated monthly payment of operating costs payable by Tenant during the calendar yearyear in which the term commences is set forth in paragraph 4(b) of this Lease. Prior to the commencement of each succeeding calendar year of the term (or as soon as practicable thereafter), Landlord shall deliver to Tenant a written estimate of Tenant’s monthly payment of operating costs. Tenant shall remit to Landlordpay, as additional rent, on the first day of each month during the term in accordance with paragraph 4(b) of the lease, the monthly operating costs as estimated by Landlord. Within one hundred twenty (120) days of the end of each calendar monthyear and of the termination of the Lease (or as soon as practicable thereafter), estimated Landlord shall endeavor to deliver to Tenant a final statement of actual operating costs incurred for the preceding year, provided, however, Landlord’s right to recover Operating Costs shall not be lost if such statement is delivered after such one hundred twenty (120) day period. If such statement shows that Tenant has paid less than the actual operating costs then Tenant shall on demand pay to Landlord the amount of such deficiency. If Tenant fails to pay such deficiency due within ten (10) business days after demand, Tenant shall pay an additional ten percent (10%) of the amount due as a penalty. If such statement shows that Tenant has paid more than the actual operating costs then Landlord shall, at its option, promptly refund such excess to Tenant or credit the amount thereof to the operating costs next becoming due from Tenant. Landlord reserves the right to revise any estimate of operating costs if a total or projected operating costs show an increase or decrease in excess of 10% from any earlier estimate for the same period. In such event, Landlord shall deliver the revised estimate to Tenant, together with an explanation of the reasons therefore, and Tenant shall revise its payments on account of Operating Costs, such monthly amounts accordingly. Landlord’s and Tenant’s obligation with respect to be sufficient to provide Landlord, by adjustments at the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the term or earlier expiration of the year in respect of which monthly installments of Operating Costs this Lease shall have been made as aforesaid, the total of survive such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, termination or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably proratedexpiration.

Operating Costs. Tenant shall pay to Landlord the Landlord, as Additional Rent, Tenant’s Percentage of all Operating Costs (as hereinafter defined) paid or incurred by Landlord in any calendar yeartwelve-month period established by Landlord (an “Operating Year”) during the term of this Lease (Tenant’s Percentage of such Operating Costs being “Tenant’s Operating Cost Obligation”). Except as otherwise provided in the immediately following paragraph, Tenant shall pay Tenant’s Operating Cost Obligation to Landlord within thirty (30) days after the date on which Landlord delivers to Tenant an itemized statement thereof, prepared, allocated and computed in accordance with applicable generally accepted accounting principles (“GAAP”) consistently applied. Tenant shall remit pay to Landlord, as Additional Rent on the first day of each calendar monthmonth during the term but otherwise in the manner provided for the payment of Annual Fixed Rent, estimated payments on account of Tenant’s Operating CostsCost Obligation, such monthly amounts to be sufficient to provide to Landlord, by the end of the calendar yeareach Operating Year, a sum equal to the Tenant’s Operating CostsCost Obligation for such Operating Year, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments time during such Operating Year (provided that Landlord shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of not increase such estimate more than once during any Operating Costs for the Calendar Year). If, at the expiration of the year each Operating Year in respect of which monthly installments of Tenant’s Operating Costs Cost Obligation shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Tenant’s Operating Costs Cost Obligation for such yearOperating Year, Landlord shall credit such overpayment against Tenant’s subsequent obligations on account of Operating Costs (or promptly pay refund such overpayment if the amount exceeds one month’s Annual Fixed Rent or the term of this Lease has ended and Tenant has no further obligation to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the differenceLandlord); if the total of such remittances is less than the Tenant’s Operating Costs Cost Obligation for such yearOperating Year, Tenant shall pay the difference to Landlord within twenty thirty (2030) days from after being so notified by Landlord. If the Commencement Date shall occur or the term of this Lease shall end on any date Landlord shall furnish to Tenant other than the first or last day of an itemized statement Operating Year, then the amount of the Tenant’s Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and Cost Obligation which may be payable by Tenant with respect to periods of less than twelve (12) months as provided in this Subsection 4.2.3 shall be equitably proratedpro-rated on a daily basis based on a 365 day Operating Year.

Operating Costs. Tenant shall pay to Landlord Tenant's Share of the Increased Operating Costs as follows: (i) Landlord shall submit to Tenant, before January 1 of each Subsequent Year, or as soon thereafter as Landlord has sufficient data, a reasonably detailed statement showing the estimated Increased Operating Costs for such Subsequent Year, which determination shall be made by Landlord based upon experience with actual costs and projections. At the first monthly Base Rent payment date following the submittal of such statement and at each succeeding monthly rent payment date thereafter during the Subsequent Year, Tenant shall pay to Landlord an amount equal to one-twelfth (1/12th) of the Increased Operating Costs. If Landlord does not submit said statement to Tenant prior to January 1 of any Subsequent Year, Tenant shall continue to pay Tenant's Share of the Increased Operating Costs at the then existing rate until such statement is submitted and thereafter, at the monthly Base Rent payment date next following the submittal of such statement Tenant shall pay Tenant's Share of the Increased Operating Costs based on the rate set forth in such statement plus, if the new rate is greater than the old rate, the difference accrued from January 1 of such Subsequent Year. Landlord may revise such estimated Increased Operating Costs at the end of any calendar quarter. (ii) On or before March 31 of the second and each succeeding Subsequent Year or as soon thereafter as Landlord has sufficient data. Landlord shall submit to Tenant a reasonably detailed statement showing the actual Building Operating Costs paid or incurred by Landlord during the previous calendar year. If Tenant's Share of the actual Increased Operating Costs is less than the amount of Tenant's Share of the estimated Increased Operating Costs for the previous Subsequent Year theretofore paid by Tenant, Landlord shall credit such difference against the next Increased Operating Costs payments coming due. If Tenant's Share of the actual Increased Operating Costs is more than the amount of Tenant's Share of the estimated Increased Operating Costs for such previous Subsequent Year theretofore paid by Tenant. Tenant shall pay to Landlord the Tenant’s Percentage of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, full amount or such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, difference at the expiration of monthly Base Rent payment date next following the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total submittal of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay statement to Tenant. (iii) If the Expiration Date or the date of earlier termination of this Lease is other than December 31, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay both the difference to Landlord within twenty (20) days from Base Year and the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months last Subsequent Year shall be equitably proratedprorated based on what the number of days in the Term in the last subsequent Year bears to 365; and any amounts owed or to be credited pursuant to Paragraph 4.3.2 shall be paid at the time in the last Subsequent Year or in the calendar year immediately following the last Subsequent Year, that such amount is calculated pursuant to paragraph 4.3(ii).

Operating Costs. Tenant During the term of this Sublease, Subtenant shall pay to Sublandlord an amount equal to 72.11% of the payments required to be made to the Master Landlord the Tenant’s Percentage on account of Operating Costs (as hereinafter defineddefined in Section 5.2 of the Master Lease) incurred by Landlord in for any calendar yearperiod of time during the Sublease Term hereof. Tenant Subtenant shall remit to Landlord, on the first day of each calendar month, make estimated payments on account of Operating Costs, such monthly amounts Costs as reasonably estimated by Master Landlord for the period in question. Such payments shall be made in the fashion herein provided for the payment of Base Rent. The estimated payments on account of Operating Costs are intended to be sufficient to provide LandlordSublandlord, by the end of the calendar each year, a sum equal to Subtenant’s required payments for such year. At the commencement of the Term, and thereafter at the beginning of each calendar year, Sublandlord will deliver to Tenant an invoice showing the Sublandlord’s then good faith estimate of the monthly payments to be paid by Subtenant on account of Operating CostsCosts during such calendar year, as reasonably estimated based upon the estimates required by Master Landlord from (it being agreed that such invoice will be non-binding and without prejudice to any post-year end reconciliation provisions or obligations). Within a reasonable time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenantafter Sublandlord receives Master Landlord’s Percentage year-end statement of Operating Costs for the Calendar Year. Ifimmediately preceding year, at the expiration Sublandlord shall give Subtenant a notice of the amounts actually paid by Sublandlord for such year. If the sum of the estimated monthly payments already made by Subtenant for such preceding year in exceed Subtenant’s actual required payment, as reflected on Sublandlord’s notice, Sublandlord shall credit the amount of overpayment against subsequent obligations of Subtenant with respect of which monthly installments of to Operating Costs shall have been made as aforesaid, (or refund such overpayment if the total Term of this Sublease has ended and Subtenant has no further obligation to Sublandlord); but if Subtenant’s required payments for such monthly remittances is preceding year are greater than the actual Operating Costs estimated payments (if any) theretofore made on account thereof for such year, Landlord Subtenant shall promptly pay to TenantSublandlord the amount necessary within thirty (30) days after receipt of such. All obligations set forth herein shall survive the termination or expiration of the Sublease Term. Without limitation of any other rights hereunder, Subtenant shall have the right to require that Sublandlord commence and pursue an audit of Operating Costs as provided in Section 5.2(k) of the Master Lease. Subtenant shall reimburse Sublandlord the actual out-of-pocket expenses paid in connection with such contest, and any proceeds, rebates, refunds or credit against abatements shall be paid (i) first to Subtenant to reimburse any costs and expenses so paid to Sublandlord, and then (ii) to Subtenant and Sublandlord according to the next accruing payments to be made respective percentage shares initially paid by Tenant pursuant to this subsection 4.2.3each. Without limiting any other remedy, the difference; Subtenant shall have the right, subject to Section 2(d) above, to file and pursue such an audit in the name of Sublandlord’s name if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference Sublandlord fails to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorateddo so as provided herein.

Operating Costs. (a) Subject to Section 7.1 above, the Tenant shall pay the Landlord’s reasonable estimate (based upon actual tax bills and premium invoices, as reasonably adjusted) of Operating Costs for each calendar year of the Term (the “Estimated Payment”) in advance, in monthly installments, commencing on the first (1st) day of the month following the month in which the Landlord notifies the Tenant of the amount it is to pay hereunder and continuing until the first (1st) day of the month following the month in which the Landlord notifies the Tenant of any revised Estimated Payment. The Landlord shall estimate from time to time the amount of the Operating Costs for each calendar year of the Term, make an adjustment to the Estimated Payment due for such calendar year and notify the Tenant of the revised Estimated Payment in writing. Within ten (10) days after the Tenant’s Percentage receipt of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. notice of such adjustment and the revised Estimated Payment, the Tenant shall remit pay the Landlord a fraction of such revised Estimated Payment for such calendar year (reduced by any amounts paid pursuant to Landlord, on the first day sentence of each this Section 7.5(a). Such fraction shall have as its numerator the number of months which have elapsed in such calendar year to the date of such payment, both months inclusive, and shall have twelve (12) as its denominator. All subsequent payments by the Tenant for such calendar year shall be based upon such adjustment and the revised Estimated Payment. In the event of any fractional calendar month, estimated payments on account the Tenant shall pay for each day in such partial month a rental equal to 1/30 of the Estimated Payment. (b) The Landlord shall deliver to the Tenant within a reasonable period of time after the end of each Fiscal Year a written statement or statements (the “Statement”) setting out the actual amount of Operating Costs, together with reasonable evidence thereof, and such monthly amounts to be sufficient to provide Landlordother items of Additional Rent, by the end of the calendar year, a sum equal to the Operating Coststogether with reasonable evidence thereof, as reasonably the Landlord estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs advance for the Calendar such Fiscal Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than If the Operating Costs and other items of Additional Rent actually paid by the Tenant to the Landlord during such Fiscal Year differs from the amount of the Estimated Payment payable for such yearFiscal Year, the Tenant shall pay such difference or the difference to Landlord shall credit the Tenant’s account (as the case may be), without interest, within twenty thirty (2030) days from after the date Landlord shall furnish to Tenant an itemized statement of delivery of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principlesStatement. Any reimbursement for Operating Costs due and payable by Tenant Failure of the Landlord to render any Statement shall not prejudice the Landlord’s right to render such Statement thereafter or with respect to periods of less than twelve (12) months shall be equitably proratedany other Fiscal Year. The Landlord may render amended or corrected Statements.

Operating Costs. Tenant shall pay to Landlord the Tenant’s 's Percentage (as defined in Article 1 hereof) of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s 's Percentage of Operating Costs for the Calendar Yearcalendar year. Following the end of each calendar year, including the first calendar year, Landlord shall deliver to Tenant a reasonably detailed statement of the Operating Costs payable under this Section 4.2.3 for such calendar year, prepared, allocated and computed in accordance with generally accepted accounting principles (the "Annual Operating Statement"). If, at the expiration of the calendar year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such calendar year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference, unless Tenant requests in writing that Landlord pay any such difference to Tenant; if the total of such remittances is less than the Operating Costs for such calendar year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish furnishes to Tenant an itemized statement of the Annual Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principlesStatement. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

Operating Costs. With reference to the Operating Costs described in this Section 2.2, it is agreed as follows: a) Commencing on the date hereof, Tenant shall pay to Landlord the Landlord, as additional rent, monthly, in advance, during the first lease year, one-twelfth (1/12) of Tenant’s Percentage 's proportionate share, of Landlord's good faith estimate of calendar year 1995 actual (adjusted to reflect a full year's operations) Controlled Operating Costs (for the Property, but in no event more than $2.82 per rentable square foot for calendar year 1995. Commencing January 1, 1996, Tenant shall pay to Landlord, as hereinafter defined) incurred by Landlord additional rent, monthly, in any calendar advance, during the balance of the lease term, 1/12 of Tenant's proportionate share of Landlord's good faith estimate of the Controlled Operating Costs for the Property for such lease year. Tenant shall remit to Landlord, on receive by March 31 following each lease year a statement summarizing the first day actual Controlled Operating Costs in reasonable detail for such lease year. If the total amount of each calendar month, estimated payments on account of Controlled Operating Costs, such monthly amounts to be sufficient to provide Landlord, Costs actually received by the end Landlord from the Tenant for any lease year shall be less than Tenant's proportionate share of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Controlled Operating Costs for such lease year, Landlord shall promptly pay to Tenant, or credit against then the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total amount of such remittances is less than difference shall be payable by the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days of receipt of the annual statement summarizing Operating Costs. If the total amount of the estimated Controlled Operating Costs actually received by the Landlord from the date Tenant for any lease year shall be greater than Tenant's proportionate share of the actual Controlled Operating Costs for such lease year, then the Landlord shall furnish pay to the Tenant an itemized within twenty (20) days following receipt by Tenant of such statement the amount of the Operating Costs, prepared, allocated such excess. The obligations of Landlord and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods the adjustment of Controlled Operating Costs shall survive the termination or expiration of the term. b) Commencing on the date hereof, Tenant shall pay to the Landlord as additional rent, monthly, in advance, during the Lease term, installments of Landlord's good faith estimate of Uncontrolled Operating Costs equal to one-twelfth (1/12) of Tenant's proportionate share of such estimated Uncontrolled Operating Costs for such year. Tenant shall receive by March 31 following each lease year a statement summarizing the actual Uncontrolled Operating Costs in reasonable detail for such lease year. If the total amount of estimated Uncontrolled Operating Costs actually received by the Landlord from the Tenant for any lease year shall be less than Tenant's proportionate share of the actual Uncontrolled Operating Costs for such lease year, then the amount of such difference shall be payable by the Tenant within twenty (20) days of receipt of the annual statement summarizing actual Uncontrolled Operating Costs. If the total amount of the estimated Uncontrolled Operating Costs actually received by the Landlord from the Tenant for any lease year shall be greater than Tenant's proportionate share of actual Uncontrolled Operating Costs for such lease year, then the Landlord shall pay to the Tenant within twenty (20) days following receipt by Tenant of such statement the amount of such excess. The obligations of Landlord and Tenant with respect to the adjustment of Uncontrolled Operating Costs shall survive the termination or expiration of the term. c) As used herein, estimated Controlled Operating Costs and estimated Uncontrolled Operating Costs shall be adjusted to reflect 100% occupancy for twelve (12) months shall be equitably proratedmonths, for the immediately preceding lease year. d) For the purposes of this Article,

Operating Costs. (a) If for any calendar year during the Term the Operating Costs exceed the Base Operating Costs, then Tenant shall pay to Landlord the reimburse Landlord, as Additional Rent, for Tenant’s Office Percentage of such excess (the “Operating Costs (as hereinafter defined) incurred by Landlord in any calendar yearExcess”). Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of the Operating CostsCosts Excess, such in monthly amounts reasonably estimated by Landlord from time-to-time to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating CostsCosts Excess for such calendar year. Without limiting the foregoing, as reasonably estimated by Landlord from time to time. The initial monthly shall, promptly after the commencement of each Lease Year, provide Tenant with a statement setting forth Tenant’s estimated payments shall be in an amount equal to 1/12th for such Lease Year on account of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar YearExcess. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaidrespective calendar year, the total of such monthly remittances payments made by Tenant is greater than the actual Operating Costs Excess for such year, then promptly after the expiration of such calendar year and the determination of the actual amount of Operating Costs Excess, Landlord shall promptly pay the excess amount to Tenant, Tenant or credit the excess amount against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if . If the total of such remittances payments is less than the actual Operating Costs Excess for such year, then Tenant shall pay the difference to Landlord within twenty not more than ten (2010) days from after the date Landlord shall furnish furnishes to Tenant an itemized statement of the actual Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principlesCosts Excess. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

Operating Costs. Tenant shall pay to Landlord If, during the Tenant’s Percentage of term hereof, Operating Costs (as --------------- hereinafter defined) incurred by Landlord in any calendar yearyear shall exceed Base Operating Costs, Tenant shall reimburse Landlord, as additional rent, for Tenant's Percentage of any such excess (such amount being hereinafter referred to as the "Operating Costs Excess"). Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating CostsCosts Excess, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating CostsCosts Excess, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be , but in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Yearno event more than two times in any calendar year. If, at the expiration of the year in respect of which monthly installments of Operating Costs Excess shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs Excess for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs Excess for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating CostsCosts Excess, showing all Operating Costs in reasonable detail and the computation of the Operating Costs Excess, prepared, allocated and computed in accordance with generally accepted accounting principles. Tenant shall have the right, upon reasonable notice and during business hours, to examine at ▇▇▇▇▇▇▇▇'s office, within six (6) months following receipt of a statement of Operating Costs Excess, ▇▇▇▇▇▇▇▇'s books and records respecting such statement. If such examination discloses any errors, appropriate adjustments shall be made. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

Operating Costs. Tenant shall pay to Landlord, as Additional Rent, Tenant’s Percentage of all Operating Costs, as hereinafter defined, paid or incurred by Landlord in any twelve-month period established by Landlord (an “Operating Year”) during the term of this Lease. Tenant shall pay Tenant’s Percentage of Operating Costs for each Operating Year (“Tenant’s Operating Cost Obligation”) to Landlord as provided in the following paragraph. Landlord shall use reasonable efforts to furnish to Tenant an itemized year-end statement of Tenant’s Operating Cost Obligation, prepared, allocated and computed in accordance with then prevailing customs and practices of the real estate industry in the Rental Market, consistently applied, not later than one hundred twenty (120) days after the end of the Operating Year covered by such year-end statement. Each such year-end statement by Landlord relating to Operating Costs (other than an invoice for a monthly estimate) shall be final and binding upon Tenant unless it shall give Landlord a timely Dispute Notice as hereinafter defined) incurred by Landlord in any calendar yearprovided. Tenant shall remit pay to Landlord, as Additional Rent on the first day of each calendar monthmonth during the term but otherwise in the manner provided for the payment of Annual Fixed Rent, estimated payments on account of Tenant’s Operating CostsCost Obligation, such monthly amounts to be sufficient to provide to Landlord, by the end of the calendar yeareach Operating Year, a sum equal to the Tenant’s Operating CostsCost Obligation for such Operating Year, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of time during such Operating Costs for the Calendar Year. If, at the expiration of the year each Operating Year in respect of which monthly installments of Operating Costs Cost Obligation shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Tenant’s Operating Costs Cost Obligation for such yearOperating Year, Landlord shall credit such overpayment against Tenant’s subsequent obligations on account of Operating Costs (or promptly pay refund such overpayment if the term of this Lease has ended and Tenant has no further obligation to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the differenceLandlord); if the total of such remittances is less than the Operating Costs Cost Obligation for such yearOperating Year, Tenant shall pay the difference to Landlord within twenty thirty (2030) days from after being so notified by Landlord. In the date Landlord event that the Commencement Date shall furnish occur or the term of this Lease shall expire or be terminated during any Operating Year or Tenant’s Percentage shall be modified during any Operating Year due to Tenant an itemized statement a change in the rentable area of the Building and/or the Premises or otherwise, as the case may be, then the amount of Tenant’s Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and Cost Obligation which may be payable by Tenant with respect to periods of less than twelve (12) months as provided in this subsection 4.2.2 shall be equitably proratedpro-rated on a daily basis based on a 360 day Operating Year.

Operating Costs. Tenant shall pay to Landlord Tenant's Share of the Increased Operating Costs as follows: (i) Landlord shall submit to Tenant, before January 1 of each Subsequent Year, or as soon thereafter as Landlord has sufficient data, a reasonably detailed statement showing the estimated Increased Operating Costs for such Subsequent Year, which determination shall be made by Landlord based upon experience with actual costs and projections. At the first monthly Base Rent payment date following the submittal of such statement and at each succeeding monthly rent payment date thereafter during the Subsequent Year, Tenant shall pay to Landlord an amount equal to one-twelfth (1/12th) of the Increased Operating Costs. If Landlord does not submit said statement to Tenant prior to January 1 of any Subsequent Year, Tenant shall continue to pay Tenant's Share of the Increased Operating Costs at the then existing rate until such statement is submitted and, thereafter, at the monthly Base Rent payment date next following the submittal of such statement Tenant shall pay Tenant's Share of the Increased Operating Costs based on the rate set forth in such statement plus, if the new rate is greater than the old rate, the difference accrued from January 1 of such Subsequent Year. Landlord may revise such estimated Increased Operating Costs at the end of any calendar quarter. (ii) On or before March 31 of the second and each succeeding Subsequent Year or as soon thereafter as Landlord has sufficient data, Landlord shall submit to Tenant a reasonably detailed statement showing the actual Building Operating Costs paid or incurred by Landlord during the previous calendar year. If Tenant's Share of the actual Increased Operating Costs is less than the amount of Tenant's Share of the estimated Increased Operating Costs for the previous Subsequent Year theretofore paid by Tenant, Landlord shall credit such difference against the next increased Operating Costs payments coming due. If Tenant's Share of the actual Increased Operating Costs is more than the amount of Tenant's Share of the estimated Increased Operating Costs for such previous Subsequent Year theretofore paid by Tenant, Tenant shall pay to Landlord the Tenant’s Percentage full amount of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, difference at the expiration of monthly Base Rent payment date next following the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total submittal of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay statement to Tenant, . (iii) If the Expiration Date or credit against the next accruing payments to be made by Tenant pursuant to date of earlier termination of this subsection 4.2.3, the difference; if the total of such remittances Lease is less other than December 31 the Operating Costs for such year, Tenant shall pay both the difference to Landlord within twenty (20) days from Base Year and the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months last Subsequent Year shall be equitably proratedprorated based on what the number of days in the Term in the last Subsequent Year bears to 365; and any amounts owed or to be credited pursuant to Paragraph 4.3.2 shall be paid at the time in the last Subsequent Year, or in the calendar year immediately following the last Subsequent Year, that such amount is calculated pursuant to Paragraph 4.3(ii).

Operating Costs. Tenant shall covenants to pay to Landlord the Tenant’s Percentage of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. fiscal year of Landlord (meaning October – September) Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar fiscal year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Yearfiscal year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated. This section shall survive the expiration or earlier termination of this Lease.

Operating Costs. Tenant shall pay to reimburse Landlord the for Tenant’s Percentage of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar yearCosts. Tenant shall remit pay to Landlord, as Additional Rent on the first day of each calendar monthmonth during the term commencing on the Rent Commencement Date but otherwise in the manner provided for the payment of Fixed Rent, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide to Landlord, by the end of the each calendar year, a sum equal to the Operating CostsCosts for such year, as reasonably estimated by Landlord. Landlord from time shall give Tenant notice of such estimated amounts promptly following its determination thereof for each Lease Year, which notice Landlord will use reasonable efforts to time. The initial monthly estimated payments shall be in an amount equal provide to 1/12th Tenant at least thirty (30) days prior to the beginning of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar each Lease Year. If, at the expiration of the each year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall credit such overpayment against Tenant’s subsequent obligations on account of Taxes and Operating Costs (or promptly pay refund such overpayment if the term of this Lease has ended) or, if Tenant shall so request, against any installment of Annual Fixed Rent due not earlier than thirty (30) days prior to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the differencesuch request; if the total of such remittances is less than the actual Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty thirty (2030) days from after being so notified by Landlord. In the date Landlord event that the Rent Commencement Date shall furnish to Tenant an itemized statement occur or the term of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement this Lease shall expire or be terminated during any calendar year for which Operating Costs due and are being computed, then the amount of Operating Costs which may be payable by Tenant with respect to periods of less than twelve (12) months as provided in this subsection 4.2.2 shall be equitably proratedpro-rated on a daily basis based on a 360 day year.

Operating Costs. Tenant shall pay to Landlord, as Additional Rent, Tenant's Percentage of all costs and expenses of every kind and nature paid or incurred by Landlord with respect to the Property in any twelve-month period established by Landlord (an "OPERATING YEAR") during the term of this Lease (such costs and expenses being "OPERATING COSTS", as hereinafter more fully described). Except as otherwise provided in the immediately following paragraph Tenant shall pay Tenant’s 's Percentage of Operating Costs (as hereinafter defined"TENANT'S OPERATING COST OBLIGATION") incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Coststhereof, prepared, allocated and computed in accordance with generally accepted accounting principlesthen prevailing customs and practices of the real estate industry in the greater Austin area, consistently applied. Any reimbursement for year-end statement by Landlord relating to Operating Costs (other than an invoice for a monthly estimate) shall be final and binding upon Landlord and Tenant unless either party within 30 days after Tenant's receipt thereof, shall contest any items therein by giving notice to the other specifying each items contested and the reasons therefor. Tenant shall pay to Landlord, as Additional Rent on the first day of each calendar month during the term but otherwise in the manner provided for the payment of Annual Fixed Rent, estimated payments on account of Tenant's Operating Cost Obligation, such monthly amounts to be sufficient to provide to Landlord, by the end of each Operating Year, a sum equal to Tenant's Operating Cost Obligation for such Operating Year, as estimated by Landlord from time to time during such Operating Year. If, at the expiration of each Operating Year in respect of which monthly installments of Tenant's Operating Cost Obligation shall have been made as aforesaid, the total of such monthly remittances is greater than Tenant's Operating Cost Obligation for such Operating Year, Landlord shall credit such overpayment against Tenant's subsequent obligations on account of Operating Costs (or promptly refund such overpayment if the term of this Lease has ended and Tenant has no further obligation to Landlord); if the total of such remittances is less than Tenant's Operating Cost Obligation for such Operating Year, Tenant shall pay the difference to Landlord within thirty (30) days after being so notified by Landlord. In the event that the Commencement Date shall occur or the term of this Lease shall expire or be terminated during any Operating Year or Tenant's Percentage shall be modified during any Operating Year due and to a change in the rentable area of the Building and/or the Premises or otherwise, as the case may be, then the amount of Tenant's Operating Cost Obligation which may be payable by Tenant with respect to periods of less than twelve (12) months as provided in this subsection 4.2.2 shall be equitably proratedappropriately apportioned and adjusted.

Operating Costs. Tenant shall pay to Landlord the Tenant’s 's Percentage of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord ▇▇▇▇▇▇▇▇ from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s ▇▇▇▇▇▇'s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

Operating Costs. Tenant shall pay to Landlord the Landlord, as additional rent, Tenant’s Percentage percentage share, equal to fifty-five and fifty-two one hundredth percent (55.52%), of Operating Costs the total operating costs as defined below. Tenant’s percentage share of operating costs shall be paid by Tenant as follows: Tenant’s estimated monthly payment of operating costs payable by Tenant during the calendar year in which the term commences is set forth in paragraph 4(b) of this lease. Prior to the commencement of each succeeding calendar year of the term (or as hereinafter defined) incurred by soon as practicable thereafter), Landlord in any calendar yearshall deliver to Tenant a written estimate of Tenant’s monthly payment of operating costs. Tenant shall remit to Landlordpay, as additional rent, on the first day of each month during the term in accordance with paragraph 4(b) of the lease, its monthly share of operating costs as estimated by Landlord. Within one hundred twenty (120) days of the end of each calendar monthyear and of the termination of this lease (or as soon as practicable thereafter), estimated Landlord shall deliver to Tenant a statement of actual operating costs incurred for the preceding year. If such statement shows that Tenant has paid less than its actual percentage then Tenant shall on demand pay to Landlord the amount of such deficiency. If Tenant fails to pay such deficiency due within ten (10) days after demand, Tenant shall pay an additional ten percent (10%) of the amount due as a penalty. If such statement shows that Tenant has paid more than its actual percentage share then Landlord shall, at its option, promptly refund such excess to Tenant or credit the amount thereof to the operating costs next becoming due from Tenant. Landlord reserves the right to revise any estimate of operating costs if actual or projected operating costs show an increase or decrease in excess of 10% from any earlier estimate for the same period; provided, however, Landlord shall make no more than two (2) such adjustments per calendar year. In such event, Landlord shall deliver the revised estimate to Tenant, together with an explanation of the reasons therefor, and Tenant shall revise its payments on account of Operating Costs, such monthly amounts accordingly. Landlord’s and Tenant’s obligation with respect to be sufficient to provide Landlord, by adjustments at the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the term or earlier expiration of the year in respect of which monthly installments of Operating Costs this lease shall have been made as aforesaid, the total of survive such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, termination or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably proratedexpiration.

Operating Costs. Within a reasonable time after calendar year 2014, Landlord shall provide Tenant shall pay with an itemized statement of Base Operating Costs, together with copies of all bills issued by governmental authorities with respect to Landlord Taxes included in Base Operating Costs. If, during the Tenant’s Percentage of Term hereof, Operating Costs (as hereinafter defined) incurred by Landlord in any calendar yearyear shall exceed Base Operating Costs, Tenant shall reimburse Landlord, as Additional Rent, for Tenant’s Percentage of any such excess (such amount being hereinafter referred to as the “Operating Costs Excess”). Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating CostsCosts Excess, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating CostsCosts Excess, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be time and set forth in an amount equal a statement delivered by Landlord to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs Excess shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs Excess for such year, as shown on the Annual Statement within thirty (30) days (as hereinafter defined) for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.34.2.2, the difference; if the total of such remittances is less than the Operating Costs Excess for such year, Tenant shall pay the difference to Landlord within twenty thirty (2030) days from the date of Tenant’s receipt of the Annual Statement. Following each calendar year, Landlord shall furnish to Tenant an itemized statement statement, in reasonable detail, of the Operating CostsCosts Excess during such year (the “Annual Statement”), prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

Operating Costs. (1) Tenant shall pay an amount (per each rentable square foot in the Premises) ("ADDITIONAL RENT") equal to the difference between the Operating Costs (defined below) per rentable square foot in the Building and the actual Operating Costs for the calendar year 1997 (the "EXPENSE STOP"). Landlord may collect such amount in a lump sum, which shall be due within 30 days after Landlord furnishes to Tenant the Operating Costs and Tax Statement (defined below). Alternatively, Landlord may make a good faith estimate of the Additional Rent to be due by Tenant for any calendar year or part thereof during the Term, and Tenant shall pay to Landlord the Tenant’s Percentage of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the Commencement Date and on the first day of each calendar monthmonth thereafter, an amount equal to the estimated payments on account Additional Rent for such calendar year or part thereof divided by the number of Operating Costsmonths therein. From time to time, such monthly amounts Landlord may estimate and re-estimate the Additional Rent to be sufficient due by Tenant and deliver a copy of the estimate or re-estimate to provide Tenant. Thereafter, but no sooner than 30 days after Landlord's delivery of Landlord's estimate or re-estimate of the Additional Rent, the monthly installments of Additional Rent payable by Tenant shall be appropriately adjusted in accordance with the estimations so that, by the end of the calendar yearyear in question, a sum equal to Tenant shall have paid all of the Operating Costs, Additional Rent as reasonably estimated by Landlord from time to timeLandlord. The initial monthly estimated payments Any amounts paid based on such an estimate shall be in an amount equal subject to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made adjustment as aforesaid, the total of such monthly remittances is greater than the herein provided when actual Operating Costs are available for such each calendar year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

Operating Costs. Tenant shall pay to Landlord ▇▇▇▇▇▇'s proportionate share of the Tenant’s Percentage of amount by which the annual Operating Costs (Costs, as hereinafter defined) , for each calendar year exceed the Operating Costs incurred during the Base Year specified in the Lease Summary. Such excess is referred to for purposes of this Lease as the "Increased Operating Costs." Tenant's obligation to pay its proportionate share of Increased Operating Costs shall commence as of the beginning of the first full calendar year following the Base Year. The amount of Increased Operating Costs payable to Landlord may be estimated by Landlord for such period as Landlord determines from time to time (not to exceed twelve (12) months), and ▇▇▇▇▇▇ agrees to pay to Landlord the amounts so estimated in any calendar year. Tenant shall remit to Landlordequal installments, in advance, on the first day of each calendar monthmonth during such period. Notwithstanding the foregoing, when bills for all or any portion of Increased Operating Costs so estimated payments are actually received by Landlord, Landlord may bill Tenant for Tenant's proportionate share thereof, less any amount previously paid by Tenant to Landlord on account of such item(s) by way of estimated Increased Operating Costs, such monthly amounts to be sufficient to provide Landlord, by Costs payments. Within a reasonable period of time after the end of the calendar yearperiod for which estimated payments have been made, Landlord shall submit to Tenant a sum equal statement from Landlord setting forth the actual amounts payable by Tenant based on actual costs. If the amount Tenant has paid based on estimates is less than the amount due based on actual costs, Tenant shall pay such deficiency within five (5) days after submission of such statement. If the amount paid by ▇▇▇▇▇▇ is greater than the amount actually due, the excess may be retained by Landlord to be credited and applied by Landlord to the next due installments of Tenant's proportionate share of Increased Operating Costs, or as reasonably estimated by to the final Lease Year, provided Tenant is not in default, Landlord from time will refund such excess to timeTenant. The initial monthly estimated payments shall be in an amount equal to 1/12th Tenant's proportionate share of the Initial Estimate of Tenant’s Percentage of actual Increased Operating Costs for the Calendar Year. If, at final estimate period of the Term of this Lease shall be due and payable even though it may not be finally calculated until after the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such yearTerm. Accordingly, Landlord shall promptly pay have the right to Tenant, or credit against continue to hold ▇▇▇▇▇▇'s security deposit following expiration of the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total Term until ▇▇▇▇▇▇'s share of such remittances is less than the actual Increased Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably proratedhas been paid.

Operating Costs. During each calendar year or portion thereof during the Term, Tenant shall pay as Additional Rent to Landlord the TenantLandlord, without diminution, set-off or deduction, ▇▇▇▇▇▇’s Percentage Share of Operating Costs incurred during such calendar year (as hereinafter defined) incurred “Tenant’s Share of Operating Costs”). “Tenant’s Share” shall mean a percentage determined by Landlord in any calendar yeara fraction, the numerator of which is the square footage of the Premises and the denominator of which is the square footage within the Building. As of the date hereof, ▇▇▇▇▇▇’s Share is approximately 12.41%. Tenant shall remit to make monthly installment payments toward ▇▇▇▇▇▇’s Share of Operating Costs on an estimated basis, based on Landlord, ’s reasonable estimate of Operating Costs for such calendar year or portion thereof. Such payments shall commence on at the commencement of the Extended Term and shall be made on the first day of each calendar monthmonth thereafter throughout the Term, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th one-twelfth (1/12th) of the Initial Estimate Landlord’s estimate of Tenant’s Percentage Share of Operating Costs for the Calendar Yearthen-current calendar year or portion thereof. IfIf at any time or times during such calendar year, at the expiration of the year in respect of which monthly installments it appears to Landlord that ▇▇▇▇▇▇’s Share of Operating Costs for such calendar year will vary from Landlord’s estimate by more than five percent (5%) on an annualized basis, Landlord may, by written notice to Tenant, revise its estimate for such calendar year and ▇▇▇▇▇▇’s estimated payments hereunder for such calendar year shall have been made as aforesaidthereupon be based on such revised estimate. Landlord shall use good faith efforts to provide, within one hundred twenty (120) days after the end of each calendar year, a statement (the “Operating Costs Expense Statement”) setting forth the total of such monthly remittances is greater than the actual Operating Costs for such calendar year and ▇▇▇▇▇▇’s Share of Operating Costs for such calendar year. Within fifteen (15) days after the delivery of such Operating Costs Expense Statement, Tenant shall pay to Landlord any deficiency between the amount shown as the actual Tenant’s Share of Operating Costs payable by Tenant for such calendar year and the estimated payments made by Tenant toward such amount in accordance with this Section 10. In the case of excess estimated payments, the excess shall be applied against estimated payments of Tenant’s Share of Operating Costs and/or Tenant’s Share of Taxes for the subsequent calendar year, unless the Lease shall have expired, in which event Landlord shall promptly pay refund such excess to Tenant, without interest, with the delivery of the Operating Costs Expense Statement (provided that all of Tenant’s obligations under this Lease have been satisfied). The term “Operating Costs” means all costs and expenses incurred by Landlord with respect to the ownership, maintenance, administration, accounting, and operation of the Premises including, but not limited to costs of: Common Area utilities; maintenance, repair and replacement of all portions of the Premises, including without limitation, paving and parking areas, roads, roofs (except that Landlord is responsible for replacement of the roof as provided in Section 31(a)(i), Tenant being responsible only for Tenant’s Share of the cost of roof repairs; it being understood that costs and expenses covered by any warranties shall not be included in Operating Costs), roof membrane, alleys, and driveways; mowing, snow removal, landscaping, and exterior painting; the cost of maintaining utility lines, fire sprinklers and fire protection systems, exterior lighting and mechanical and building systems serving the Building; amounts paid to contractors and subcontractors for work or credit against services performed in connection with any of the next accruing foregoing; fees payable to tax consultants and attorneys for consultation and contesting taxes; property management fees in an amount not to exceed three percent (3%) of the annual gross revenue of the Property; any and all condo fees, association changes, or similar such charges (if any) chargeable by any common association of which the Property (or any part thereof) is a part, salaries of or payments to building managers, engineers, technicians, or similarly situated individuals along with the expenses for any tools, machinery, travel expenses, or technology or communications expenses used or useful in the operation of the Building; the cost of any insurance deductibles for insurance required to be maintained by Landlord hereunder (which deductibles are required to be paid in order for Landlord to receive insurance proceeds); security services, if any; additions or alterations made by Landlord to the Building in order to comply with applicable laws which were not applicable to the Building or the Premises, as the case may be, at the time the same was constructed (other than those expressly required herein to be made by Tenant pursuant to this subsection 4.2.3Tenant), provided that the difference; if the total cost of such remittances is less than additions or alterations that are required to be capitalized for federal income tax purposes shall be amortized on a straight line basis over a period equal to the useful life thereof for federal income tax purposes and included in Operating Costs for such year, Tenant shall pay only to the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement extent of the Operating Costsamortized amount for the respective calendar year; and costs for capital expenditures (meaning those expenditures which, prepared, allocated and computed in accordance with generally accepted accepting accounting principles. Any reimbursement for , are not fully chargeable to current expense in the year the expenditure is incurred), provided that capital expenditures may only be passed through to Tenant if such expenditures are required by applicable laws or are reasonably calculated to reduce Operating Costs due and payable by Tenant with respect chargeable to periods Tenant, the costs of less than twelve (12) months which shall be equitably proratedamortized on a straight line basis over a period equal to the useful life thereof for federal income tax purposes and included in Operating Costs only to the extent of the amortized amount for the respective calendar year. In addition, Operating Costs shall include (i) Real Estate Taxes (hereinafter defined) for each calendar year during the Lease term, and (ii) the cost of insurance maintained by Landlord for the Premises for each calendar year during the Lease term. The cost incurred in connection with any exterior painting shall be billed as part of Operating Costs in the calendar year in which such costs are incurred.

Operating Costs. (a) Tenant shall covenants to pay to Landlord the Tenant’s Building Percentage Share and Tenant’s Premises Percentage Share, as applicable, of Operating Costs (as the term “Operating Costs” is hereinafter defined) incurred by Landlord in any calendar year. Commencing as of the Rent Commencement Date, Tenant shall remit to Landlord, on or before the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be based on Tenant’s Building Percentage Share and Tenant’s Premises Percentage Share, as applicable, sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to timetime (provided that Landlord shall not make further adjustments after the initial estimate is made for the applicable year). The Landlord shall notify Tenant of the initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Yearcalendar year prior to the Rent Commencement Date. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection Section 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty thirty (2030) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably proratedprorated on the basis of a 365-day calendar year.

Operating Costs. Tenant shall covenants to pay to Landlord the Tenant’s Percentage of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar yearfiscal year of Landlord (“Landlord’s Fiscal Year”). Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar yearLandlord’s Fiscal Year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Landlord’s Fiscal Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated. This section shall survive the expiration or earlier termination of the Lease.