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of this Lease) to reflect one hundred percent (100%) occupancy of the Rentable Area of the Project during such period. If during all or any part or
<br />any Expense Year, including (he Base Year, Landlord dues not provide any particular item of benefit, work or service (the cost of which Is a Variable
<br />Expense) to portions of the Project due to the fact that such item of benefit, work or service is not required or desired by the tenant orat, ell space, or
<br />such tenant is Itself obtaining and providing such item of benefit, work or service, or for any other reason, then for purposes of computing Vail able
<br />Expenses for such Expense Year, Operating Expenses, as applicable, shall be increased by on amount equal to the additional Variable Expenses
<br />which would have been paid or incurred by Landlord during such period IF![ had furnished such item of benefit, work or service to such portions of
<br />tine Project.
<br />2.2 Subject to the provisions of this Section 2 of (his Exhibit "E". all calculations, determinations, allocations and decisions to be
<br />made hereunder with respect to Operating Expenses and Property Taxes shall be made in accordance with the good faith determination of Landlord
<br />applying sound accounting and properly management principles consistently applied which are consistent with Institutional Owner Practices.
<br />Landlord shall have the right to equitably allocate some or all of Operating Expenses among particular classes or groups of tenants in the Building
<br />(for example, retail tenants) to reflect Landlord's good faith determination that measurably different amounts or types of services, work or benefits
<br />associated with Operating Expenses, as applicable, are being provided to or conferred upon such classes or groups. All discounts, reimbursements,
<br />rebates, refunds, or credits (collectively, Reimbursements") attributable to Operating Expenses or Property Taxes received by Landlord in a
<br />particular year shall be deducted from Operating Expenses or Property Taxes, as applicable, in the year the same are received; provided, however, if
<br />such practice is consistent with Institutional Owner Practices, Landlord may treat Reimbursements generally (or under particular circumstances) on a
<br />different basis. Landlord shall have the right to exclude from Base Year Operating Expenses the cost of items of service, work or benefits (i) not
<br />provided following the Base Year, (ii) incurred due to circumstances not applicable following the Base Year or due to market -wide labor -rate
<br />increases in Operating Expenses due to extraordinary circumstances, including, without limitation, boycotts, embargoes and strikes, and utility rate
<br />increases due to extraordinary circumstances, and (iii) amortized costs relating to capital improvements.
<br />2.3 if any Property Tax Reduction (defined below) applies with respect to any Expense Year (other than the Base Year), then for
<br />purposes of calculation of Excess Property Taxes for such Expense Year, Property Taxes allocable to the Base Year shall be reduced by an amount
<br />equal to the corresponding Base Year Tax Reduction. A "Properly Tax Reduction' means, with respect to any Expense Year (other than the Base
<br />Year) the amount (if any) by which Property Taxes are reduced 'as a result of any reassessment or under or as a result of application or operation of
<br />Proposition S or any other similar governmental act or Law. A "Base Year Tax Reduction" means, with respect any Expense Year to which a Tax
<br />Reduction applies, and with respect to any particular Property Tax Reduction, an amount equal to the Property Tax Reduction, minus, in die case of
<br />any Expense Year after the first year to which the applicable Tax Reduction applies, the cumulative amount by which Property Taxes have increased
<br />(following the first Expense Year to which the applicable Property Tax Reduction applied) as a result of application of tie annual percentage increase
<br />(presently up to 2.0%) in Property Taxes that is allowed under Proposition 13 (or any substitute therefor hereafter adopted).
<br />2.4 As of the dale of this Lease, Tenant pays Additional Rent under Section 4,2 of the Lease based on tie Operating Expenses and
<br />Property Taxes for the Project. If the Project at any Lillie contains more than one building (or one or more tax parcels), Landlord shall have Elie right,
<br />from time to time, to equitably allocate some or all of the Operating Expenses and/or Property Taxes for the buildings comprising tie Project among
<br />the Building and some or all of the other buildings of the Project. In such event, Landlord shall reasonably determine a method of allocating such
<br />Operating Expenses and/or Property 'faxes attributable to the Building (or the tax parcel on which the Building is located) and/or such other
<br />building(s) (orsuch other tax parcel(s)) of the Project to the Building (or tax parcel) and/or such other building(s) (or tax parcel(s)) and Tenant shall
<br />be responsible for paying its proportionate share of such Operating Expense and/or Property Taxes which are allocated to the Building (or the tax
<br />parcel on which it is located), landlord shall also have Elie right, from time to time, to require Tenant to pay Tenant's Percentage Share of Operating
<br />Expenses and Property Taxes based solely on the Operating Expense and Properly Taxes for the Building (and the tax parcel oh which it is located).
<br />3. Payment Procedure. Estimates. During each Expense Year, Landlord may elect to give Tenant written notice of its estimate of any
<br />amounts payable under Section 4.2 of the Lease ("Section 4.2 Additional Rent") for that Expense Year, On or before the first day of each calendar
<br />month during such Expense Year, Tenant shall pay to Landlord one -Twelfth (1/12th) oFsuch estimated amounts; provided, however, that, not more
<br />often than quarterly, Landlord may, by written notice to Tenant, revise its estimate for such Expense Year, and all subsequent payments under this
<br />Section 3 of (his Exhibit "E" by Tenant for such Expense Year shall be based upon such revised estimate. Landlord shall endeavor to deliver to
<br />Tenant within one hundred fifty (150) days after tic close oreach Expense Year or as soon thereafter as is practicable, a statement of that year's
<br />Property Taxes, Operating Expenses, and the amount of Section 4.2 Additional Rent for such Expense Year, as determined by Landlord (the
<br />"Landlord's Statement'), and such Landlord's Statement shall be binding upon Landlord and 'tenant, except as provided in Section 4 or this
<br />Exhibit " ". If the Landlord's Statement indicates that (or if it is finally determined pursuant to Section 4 of this Exhibit "E" dint) the amount of
<br />Section 4.2 Additional Rent payable with respect to any Expense Year. a) is more than (lie estimated payments orSection 4.2 Additional Rent made
<br />by Temuu with respect to such Expense Year, Tenant shall pay the deficiency to Landlord upon receipt orl-andlord's Statement or(b) is less Uhun the
<br />estimated payments or Section 4.2 Additional Rent made by Tenant with respect to such Expense Year, such excess payments shall be credited
<br />against Rent next payable by Tenant under this Lease (or, ifthe Term of [his Lease has expired, shall be paid to Tenant), Amounts payable by Tenant
<br />as Secaoli 4.2 Additional Rent with respect to any Expense Year that includes less than an entire calendar year shall be prorated on the basis that the
<br />number of days in such Expense Ymr bears to 305. 'rile expiration or early termination of this lease shall not affect the obligations of Londlord and
<br />Tenant pursuant to this Section 3 of this Exhibit "E" to lie perfomhed after such expiration orearly termination.
<br />4. Review or Lar lard's Statement. Provided that Tenant is not (hen in default with respect to its obligations under this Lease and provided
<br />further that Tenant strictly complies with the provisions of this Section 4 of this Exhibit "E" Tenant shall have the right, it'I cnanl's sale cost and
<br />expense, to reasonably review Landlord's supporting books and records (at Landlord's manager's corporate offices) for any portion urthe PruperLy
<br />Taxes or Operating Expenses for a particular Expense Year covered by Landlord's Statement, in accordance with the procedures set forth in this
<br />Section 4 of this Ex iibit "E Tenant shall. within sixty (60) days after Env such Landlord's Statement is delivered to Tenant, deliver u written notice
<br />(a "Dispute Notice") to landlord specifying the items described in (he Landlord's Statement that are claimed to be incorrect; and 'reliant shall
<br />simultaneously pay to Landlord all anhounLs spccitied in the applicrhble Landlord's Statement (to die extent not previously paid). The right of Tenant
<br />under this Section orlhis Exhibit "E" may Only be exercised mice till each Expense Year covered by any Landlord's- Statement, and if Tenum fails
<br />to deliver a Dispute Notice within the sixty (00) day period lcscrihed above or fails to nicer any of the other above conditions of exercise or such
<br />right. the right ofTenanl to MnrL a par athu landlord's Statement (and all ofTcnani's rights to make any claim relating therein) under this Section 4
<br />301 R'Civic Center Or— C'ipy afSrnrtd Ina Leave .3- Exhibit E
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