Common use of Common Area Charges Clause in Contracts

Common Area Charges. In addition to the rental and other charges herein provided to be paid by Lessee to Lessor, Lessee shall pay to Lessor, as additional rent and as Lessee’s share of the cost of maintaining, operating, repairing and managing the Project, Lessee’s proportionate share (as defined in Section 12) of the Total Common Area Charges (as hereinafter defined) for any calendar year during the Term (the “CAM Amount”). Lessee shall pay Lessor in advance its monthly estimated proportionate share (as described in Section 12) of the CAM Amount, together with all applicable rental taxes due thereon, within ten (10) days after receipt of an invoice from Lessor setting forth Lessor’s estimate of such amount. Within ninety (90) days following the end of each calendar year during the Term or as soon thereafter as is reasonably possible, Lessor shall furnish Lessee with a statement of all Total Common Area Charges for the Project for the previous calendar year indicating the computation of Lessee’s proportionate share of the CAM Amount for such calendar year and the payments made by Lessee during such calendar year. If Lessee’s aggregate estimated monthly payments actually paid to Lessor for the calendar year are greater than Lessee’s proportionate share of the CAM Amount for such calendar year, Lessor shall promptly pay the excess to Lessee or shall apply the excess to any past due amounts owing from Lessee to Lessor; if the payments made are less than Lessee’s proportionate share, Lessee shall pay the difference to Lessor within ten (10) days of its receipt of such statement. Total Common Area Charges shall consist of all costs and expenses of every type associated with the management, repair, maintenance, and insuring of the Common Areas including, without limitation, costs and expenses for the following: gardening and landscaping; utilities, water and sewer charges; premiums for liability, property damage and casualty insurance and ▇▇▇▇▇▇▇’▇ compensation insurance; all personal property taxes levied on or attributable to personal property used in connection with the Common Areas; straight line depreciation on personal property owned by Lessor which is consumed in the operation or maintenance of the Common Areas; rental or lease payments paid by Lessor for rented or leased personal property used in the operation or maintenance of Common Areas; fees for required licenses and permits; refuse disposal charges; repairing, resurfacing, repaving, maintaining, painting, lighting, cleaning, refuse removal, security and similar items; repair and maintenance of exterior roofs and reserves for roof replacement and exterior painting of the Project and other appropriate reserves; and fees paid to property managers. Said Total Common Area Charges shall further include all charges for semi-annual preventive maintenance service of mechanical equipment including, without limitation, heating, ventilating and air conditioning equipment, which is attributable to the Project, and the cost of lighting, maintenance and repair of the Project identification signs.

Common Area Charges. In addition to the rental above basic rent and other charges herein provided to be paid by Lessee to Lessoras additional rent, Lessee Tenant shall pay to LessorLandlord the sum of Thirty-six Thousand Nine Hundred Twelve Dollars ($36,912.00) on or before the first day of the first (1st) full calendar month of the Lease Term and on the first day of each and every successive calendar month, said sum representing Tenant’s payment of “common area charges”. Payment of common area charges for any partial month shall be payable in advance and shall be prorated at the rate of 1/30th of the monthly payment of common area charges per day. If Tenant vacates the Premises in its entirety prior to the expiration of the Lease Term, then Tenant shall have no further obligation for payment of common area charges for the remainder of the Lease Term, the common area charge for the calendar month in which Tenant vacates the Premises shall be prorated as additional rent specified above, and as LesseeLandlord shall return to Tenant any prorated portion of such common area charge applicable to the portion of such calendar month after the date of such vacation. As used in this Lease, “common area charges” shall mean Tenant’s contribution to the costs incurred by Landlord under Paragraphs 9 (Maintenance and Repair), 11 (Insurance), 12 (Utilities), 13 (Taxes) and 15 (Common area maintenance). Landlord and Tenant agree and acknowledge that the common area charges are a reasonable estimate of Tenant’s anticipated share of the cost of maintainingcommon area charges that will be incurred by Tenant on a monthly basis under this Lease, operating, repairing and managing that such monthly amount shall be binding on the Project, Lessee’s proportionate share (as defined in parties. Subject to Section 12) , Tenant’s sole obligation with respect to such common area charges shall be payment of the Total Common Area Charges (as hereinafter defined) for any calendar year during the Term (the “CAM Amount”monthly common area charge set forth in this Paragraph 4(b). Lessee , and Tenant shall pay Lessor in advance its monthly estimated proportionate share (as described in Section 12) of the CAM Amounthave no further obligation with respect to such charges, together with all applicable rental taxes due thereon, within ten (10) days after receipt of an invoice from Lessor setting forth Lessor’s estimate of such amount. Within ninety (90) days following the end of each calendar year during the Term or as soon thereafter as is reasonably possible, Lessor shall furnish Lessee with a statement of all Total Common Area Charges for the Project for the previous calendar year indicating the computation of Lessee’s proportionate share of the CAM Amount for such calendar year and the payments made by Lessee during such calendar year. If Lessee’s aggregate estimated monthly payments actually paid to Lessor for the calendar year are greater than Lessee’s proportionate share of the CAM Amount for such calendar year, Lessor shall promptly pay the excess to Lessee or shall apply the excess to any past due amounts owing from Lessee to Lessor; even if the payments made actual common area charges incurred by Landlord are less higher or lower than Lessee’s proportionate share, Lessee shall pay the difference to Lessor within ten (10) days of its receipt of such statement. Total Common Area Charges shall consist of all costs and expenses of every type associated with the management, repair, maintenance, and insuring of the Common Areas including, without limitation, costs and expenses for the following: gardening and landscaping; utilities, water and sewer charges; premiums for liability, property damage and casualty insurance and ▇▇▇▇▇▇▇’▇ compensation insurance; all personal property taxes levied on or attributable to personal property used monthly amount set forth in connection with the Common Areas; straight line depreciation on personal property owned by Lessor which is consumed in the operation or maintenance of the Common Areas; rental or lease payments paid by Lessor for rented or leased personal property used in the operation or maintenance of Common Areas; fees for required licenses and permits; refuse disposal charges; repairing, resurfacing, repaving, maintaining, painting, lighting, cleaning, refuse removal, security and similar items; repair and maintenance of exterior roofs and reserves for roof replacement and exterior painting of the Project and other appropriate reserves; and fees paid to property managers. Said Total Common Area Charges shall further include all charges for semi-annual preventive maintenance service of mechanical equipment including, without limitation, heating, ventilating and air conditioning equipment, which is attributable to the Project, and the cost of lighting, maintenance and repair of the Project identification signsthis Paragraph 4(b).

Common Area Charges. In addition to the rental and other charges herein provided to be paid by Lessee to LessorLessor for the Expansion Premises, Lessee shall pay to Lessor, as additional rent and as Lessee’s share of the cost of maintaining, operating, repairing and managing the Projectbuilding of which the Premises are a part, Lessee▇▇▇▇▇▇’s proportionate share (as defined in Section 12Paragraph 32) of the Total Common Area Charges (as hereinafter defined) for any calendar year during the Term (the “CAM Amount”) (as hereinafter defined). Lessee shall pay Lessor in advance its monthly estimated proportionate share (as described in Section 12Paragraph 32) of the CAM Amount, together with all applicable rental taxes due thereon, within ten (10) days after receipt of an invoice from Lessor setting forth Lessor’s estimate of such amount. Within ninety (90) days following the end of each calendar year during the Term or as soon thereafter as is reasonably possible, . Lessor shall furnish Lessee with a statement of all Total Common Area Charges for the Project for the previous calendar year indicating the computation of Lessee▇▇▇▇▇▇’s proportionate share of the CAM Amount for such calendar year and the payments made by Lessee during such calendar year. If Lessee▇▇▇▇▇▇’s aggregate estimated monthly payments actually paid to Lessor for the calendar year are greater than Lessee’s proportionate share of the CAM Amount for such calendar year, Lessor shall promptly pay the excess to Lessee or shall apply the excess to any past due amounts owing from Lessee to Lessor; , if the payments made are less than Lessee’s proportionate share, Lessee shall pay the difference to Lessor within ten (10) days of its receipt of such statement. Total Common Area Charges shall consist of all costs and expenses of every type associated with the management, repair, maintenance, and insuring of the Common Areas including, without limitation, costs and expenses for the following: gardening and landscaping; utilities, water and sewer charges; premiums for liability, property damage and casualty insurance and ▇▇▇▇▇▇▇’▇ compensation insurance; all personal property taxes levied on or attributable to personal property used in connection with the Common Areas; straight line depreciation on personal property owned by Lessor which is consumed in the operation or maintenance of the Common Areas; rental or lease payments paid by Lessor for rented or leased personal property used in the operation or maintenance of Common Areas; fees for required licenses and permits; refuse disposal charges; repairing, resurfacing, repavingrepaying, maintaining, painting, lighting, cleaning, refuse removal, security and similar items; repair and maintenance of exterior roofs and reserves for roof replacement and exterior painting of the Project and other appropriate reserves; and fees paid to property managers; and other similar costs and expenses relating to the Common Areas. Said Total Common Area Charges shall further include all charges for semi-annual preventive maintenance service of mechanical equipment including, without limitation, heating, ventilating and air conditioning equipment, which is attributable to the Project, and the cost of lighting, maintenance and repair of the Project identification signs.

Common Area Charges. In addition to the rental and other charges herein provided to be paid by Lessee to Lessor, Lessee Tenant shall pay to LessorLandlord, as additional rent and as Lessee’s share rent, within thirty (30) days after presentation of an invoice therefor, but not more often than once each calendar month, an amount equal to its Pro Rata Share of the cost of maintaining, operating, repairing and managing the Project, Lessee’s proportionate share (Common Area Charges as defined in Section 12Paragraphs 8.C, 9, and 11 of this Lease. Tenant acknowledges and agrees that the Common Area Charges shall include an additional five percent (5%) of the Total actual Common Area Charges (as hereinafter definedexcluding insurance premiums) in order to compensate Landlord for accounting, management and processing services. Provided Tenant gives Landlord not less than five (5) days prior written notice, Tenant shall have the right, not more often than twice during any calendar year during year, to inspect and make copies at Tenant's expense, of Landlord's books, records and invoices evidencing the Term (the “CAM Amount”). Lessee shall pay Lessor in advance its monthly estimated proportionate share (as described in Section 12) of the CAM Amount, together with all applicable rental taxes due thereon, within ten (10) days after receipt of an invoice from Lessor setting forth Lessor’s estimate of such amount. Within ninety (90) days following the end of each calendar year during the Term or as soon thereafter as is reasonably possible, Lessor shall furnish Lessee with a statement of all Total Common Area Charges for allocated to Tenant hereunder. Notwithstanding anything to the Project for contrary in the previous calendar year indicating the computation of Lessee’s proportionate share of the CAM Amount for such calendar year and the payments made by Lessee during such calendar year. If Lessee’s aggregate estimated monthly payments actually paid to Lessor for the calendar year are greater than Lessee’s proportionate share of the CAM Amount for such calendar yearLease, Lessor shall promptly pay the excess to Lessee or shall apply the excess to any past due amounts owing from Lessee to Lessor; if the payments made are less than Lessee’s proportionate share, Lessee shall pay the difference to Lessor within ten (10) days of its receipt of such statement. Total Common Area Charges shall consist of all costs and expenses of every type associated with the management, repair, maintenancenot include, and insuring Tenant shall have no liability for, the expense items listed below: (a) The costs of original construction, the Common Areas including, without limitation, costs and expenses for the following: gardening and landscaping; utilities, water and sewer charges; premiums for liability, property damage and casualty insurance and ▇▇▇▇▇▇▇’▇ compensation insurance; purchase price or any depreciation or all personal property taxes levied on or attributable to personal property used in connection with the Common Areas; straight line depreciation on personal property owned by Lessor which is consumed in the operation or maintenance any portion of the Common Areas; rental or lease payments paid by Lessor for rented or leased personal property used in the operation or maintenance of Common Areas; fees for required licenses and permits; refuse disposal charges; repairing, resurfacing, repaving, maintaining, painting, lighting, cleaning, refuse removal, security and similar items; repair and maintenance of exterior roofs and reserves for roof replacement and exterior painting of the Project and other appropriate reserves; and fees paid to property managers. Said Total Common Area Charges shall further include all charges for semi-annual preventive maintenance service of mechanical equipment including, without limitation, heating, ventilating and air conditioning equipment, which is attributable to the Project, and the cost of lightingcorrecting any building code violation existing as of the date of execution of the Lease. (b) Costs incurred for the repair, maintenance and repair replacement of the structural elements of the Project, including, without limitation, beams, columns, foundations, footings, loan bearing and exterior walls, structural slabs, and the roof support system (except where the same are required by law). (c) Costs incurred for the repair, maintenance or replacement of the Project identification signsor any portion thereof, to the extent: (i) of the proceeds of insurance which Landlord is required to maintain under the Lease or actually maintains (whichever is greater), (ii) of any reimbursement which Landlord receives therefor under any warranties or from any third party (other than on account of a tenant's pro rata share of the Common Area Charges, or (iii) caused by the negligence or willful misconduct of Landlord or Landlord's Agents. (d) Rentals and other payments by Landlord under any ground lease or other lease underlying this Lease; interest, principal, points, penalties and fees on any security instrument encumbering all or any portion of the Project; and any Property Taxes (provided, however, that Tenant is obligated to pay Tenant's Pro Rata Share of Property Taxes pursuant to Paragraph 7). (e) Expenses and penalties (including, without limitation, attorneys' fees) incurred due to Landlord's violation of any lease, deed of trust, mortgage, other security instrument, ground lease, law (including, without limitation, statutes, ordinances, rules, regulations, orders, judgments and decrees) or private restriction, unless such violation was caused by Tenant's or Tenant's agents', employees' or contractors' acts, negligence or willful misconduct or breach of this Lease. (f) Leasing commissions, attorneys' fees, tenant improvement costs and other costs and expenses incurred in connection with the leasing, or the improvement for leasing, of any premises. (g) Advertising, marketing, media and promotional expenditures regarding the Project or any portion thereof, and costs of signs in or on the Project identifying the owner, lender or any contractor. (h) The rental value of any management office, engineer's office, mechanical spaces, and Common Areas. (i) Costs incurred in connection with the presence, investigation, monitoring, release, removal or remediation of any Hazardous Materials on, under, in or about the Project (subject, however, to the requirements of Paragraph 39). (j) Any cost items that are not subject to apportionment among all tenants of the Project in proportion to the ratio of the total floor area of the premises leased by such tenants (with Landlord being considered the tenant of any unleased premises) to the total floor area of the Buildings (except as expressly provided above with respect to utilities provided to Building C). (k) Insurance premiums allocable to tenant improvements in Building B and costs incurred by Landlord, if any, to repair, maintain, insure, manage and operate the Building B Exclusive Areas. Common Area Charges shall also be subject to the following limitations: (l) Any management fee included in the Common Area Charge shall exclude: salaries, wages and benefits paid for or provided to persons not employed full-time in the management and operation of the Project; costs of automobiles and travel expenses; professional, civic or recreational memberships; costs of seminars, conventions, educational programs and the like; charitable contributions; and any other administrative cost or expense not directly related to the management and operation of the Project. (m) The rates paid by Landlord under landscape and parking lot maintenance contracts and other on-going service contracts for the Project shall not exceed rates customarily charged in Santa Clara County. (n) No fee shall be charged for the ▇▇▇ of the Project parking area or any other Common Area facility. (o) The aggregate sum of all Common Area charges allocated to tenants of the Project for any year upon which an allocation is made shall not exceed the aggregate sum of such Common Area Charges which were actually incurred by Landlord for the year in question. No cost item shall be included more than once or allocated under more that one expense category. No cost item shall be submitted for payment by Tenant before it is incurred by Landlord. (p) All expense items which are classified as capital expenditures, improvements or replacements under generally accepted accounting principles and which are permitted to be charged to Tenant hereunder shall be amortized on a monthly basis over their maximum estimated useful lives at the lesser of Landlord's cost of funds or the Bank of America prime rate plus two percent (2%) per annum. Only the monthly amortized portion of such expense which falls due during the Term shall be included as a Common Area Charge payable by Tenant hereunder.

Common Area Charges. In addition Certain of the Leases and Specialty License Agreements provide for reimbursement to the rental landlord thereunder of certain expenses relating to common areas ("COMMON AREA EXPENSES"), including, but without limitation, the expenses of operating and maintaining certain improvements located on the Real Property, including exterior parking, roadways, landscaping, sidewalks and other charges herein areas provided for the common use or benefit of Tenants, Parties to be paid by Lessee to Lessor, Lessee shall pay to LessorSpecialty License Agreements and their patrons, as additional rent well as insurance, real estate taxes, heating and cooling charges, and various services with respect thereto including the management and administration thereof, which may be computed as Lessee’s share a percentage of other costs of operating and maintaining the common areas (the "ADMINISTRATIVE FEES"). Common Area Expenses are determined on an annual basis, but the anticipated amount thereof may be estimated and paid in monthly or other installments of the cost of maintaining, operating, repairing and managing estimated amount during the Project, Lessee’s proportionate share (as defined in Section 12) course of the Total Common Area Charges (as hereinafter defined) for any calendar year during with a final adjustment made after the Term (the “CAM Amount”). Lessee shall pay Lessor in advance its monthly estimated proportionate share (as described in Section 12) close of the CAM Amount, together with all applicable rental taxes due thereon, within ten (10) days after receipt of an invoice from Lessor setting forth Lessor’s estimate of year when such amount. Within ninety (90) days following the end of each calendar year during the Term or as soon thereafter as is reasonably possible, Lessor shall furnish Lessee with a statement of all Total Common Area Charges for the Project for the previous calendar year indicating the computation of Lessee’s proportionate share of the CAM Amount for such calendar year and the payments made by Lessee during such calendar year. If Lessee’s aggregate estimated monthly payments actually paid to Lessor for the calendar year are greater than Lessee’s proportionate share of the CAM Amount for such calendar year, Lessor shall promptly pay the excess to Lessee or shall apply the excess to any past due amounts owing from Lessee to Lessor; if the payments made are less than Lessee’s proportionate share, Lessee shall pay the difference to Lessor within ten (10) days of its receipt of such statement. Total Common Area Charges shall consist of all costs and expenses of every type associated have been finally determined. Seller and Purchaser have agreed as follows with respect to Common Area Expenses: (i) Except as hereinafter provided, Seller shall be responsible for all Common Area Expenses through the management, repair, maintenanceCutoff Date, and insuring shall be entitled to retain reimbursements thereof collected through the Cutoff Date and to receive reimbursements therefor collected after the Cutoff Date, up to the aggregate amount of such Common Area Expenses for which Seller is responsible. Purchaser shall be responsible for all Common Area Expenses after the Cutoff Date and shall be entitled to receive and retain all remaining reimbursements of Common Area Expenses collected from Tenants or Parties to Specialty License Agreements with respect thereto after payment to Seller of reimbursements for periods prior to the Cutoff Date. (ii) Upon issuance of the Common Areas including, without limitation, costs and expenses for the following: gardening and landscaping; utilities, water and sewer charges; premiums for liability, property damage and casualty insurance and ▇▇▇▇▇▇▇’▇ compensation insurance; all personal property taxes levied on or attributable Final Proration Statement referred to personal property used in connection with the Common Areas; straight line depreciation on personal property owned by Lessor which is consumed in the operation or maintenance of the Common Areas; rental or lease payments paid by Lessor for rented or leased personal property used in the operation or maintenance of Common Areas; fees for required licenses and permits; refuse disposal charges; repairing, resurfacing, repaving, maintaining, painting, lighting, cleaning, refuse removal, security and similar items; repair and maintenance of exterior roofs and reserves for roof replacement and exterior painting of the Project and other appropriate reserves; and fees paid to property managers. Said Total Common Area Charges shall further include all charges for semi-annual preventive maintenance service of mechanical equipment including, without limitation, heating, ventilating and air conditioning equipment, which is attributable to the Project, and the cost of lighting, maintenance and repair of the Project identification signs.Section 7.4(b) hereof:

Common Area Charges. In addition to the rental and other charges herein provided to be paid by Lessee to Lessor, Lessee Tenant shall pay to Lessor, as additional rent and as Lessee’s its pro rata share of all common area charges for the cost of maintaining, operating, repairing maintenance and managing the Project, Lessee’s proportionate share (as defined in Section 12) upkeep of the Total Common Area Charges (common areas, such as hereinafter defined) for any calendar year during the Term (the “CAM Amount”)parking lots, security, landscaping and lighting. Lessee Such common area charges shall pay Lessor in advance its monthly estimated proportionate share (as described in Section 12) of the CAM Amountinclude, together with all applicable rental taxes due thereon, within ten (10) days after receipt of an invoice from Lessor setting forth Lessor’s estimate of such amount. Within ninety (90) days following the end of each calendar year during the Term or as soon thereafter as is reasonably possible, Lessor but shall furnish Lessee with a statement of all Total Common Area Charges for the Project for the previous calendar year indicating the computation of Lessee’s proportionate share of the CAM Amount for such calendar year and the payments made by Lessee during such calendar year. If Lessee’s aggregate estimated monthly payments actually paid to Lessor for the calendar year are greater than Lessee’s proportionate share of the CAM Amount for such calendar year, Lessor shall promptly pay the excess to Lessee or shall apply the excess to any past due amounts owing from Lessee to Lessor; if the payments made are less than Lessee’s proportionate share, Lessee shall pay the difference to Lessor within ten (10) days of its receipt of such statement. Total Common Area Charges shall consist of all costs and expenses of every type associated with the management, repair, maintenance, and insuring of the Common Areas including, without limitation, costs and expenses for the following: gardening and landscaping; utilitiesnot be limited to, water and sewer charges; premiums for liability, property damage utilities and casualty utility system installation charges, maintenance and repairs, insurance premiums, taxes and ▇▇▇▇▇▇▇’▇ compensation insurance; all personal property taxes levied on or attributable to personal property used in connection with the Common Areas; straight line assessments, licenses, permits, management fees, and reasonable depreciation on personal property owned by Lessor which is consumed in the operation or maintenance of the Common Areas; rental or lease payments paid by Lessor for rented or leased personal property equipment used in the operation or maintenance of Common Areas; fees for required licenses and permits; refuse disposal charges; repairing, resurfacing, repaving, maintaining, painting, lighting, cleaning, refuse removal, security and similar items; repair and maintenance of exterior roofs and reserves for roof replacement and exterior painting of the Project common areas; provided, however, costs of equipment properly chargeable to capital account and other appropriate reserves; depreciation of the original cost of constructing the common areas shall be excluded. Landlord shall be entitled to estimate the amount payable by Tenant pursuant to this Section 3.5 so long as said amount is based on the ratio of the square footage of the Premises to the total leasable square footage of the Resort (which shall be deemed to be the total square footage of the Resort, including space occupied by Landlord, that, under commercially reasonable terms, conditions and fees circumstances, could be leased to a tenant). The amounts so estimated shall be payable by Tenant in equal monthly installments in advance over the period covered by the estimate and each such installment shall be paid by Tenant together with the monthly installments of Rent. From time to property managerstime, Landlord may reasonably re-estimate the amount payable under this Section 3.5 and the monthly installments paid by Tenant hereunder shall be adjusted accordingly. Said Total Common Area Charges Tenant shall further include all be directly responsible for any expenses relating to the use of the common areas by Tenant, its employees, agents and invitees. Notwithstanding anything contained in this Lease to the contrary, in no event shall Tenant be required to pay an amount of common area charges for semi-annual preventive maintenance service of mechanical equipment including, without limitation, heating, ventilating and air conditioning equipment, per square foot which is attributable greater than any other occupant of the Resort. Within sixty (60) days after the end of each accounting year, the parties shall determine if the estimated common area charges paid by Tenant resulted in overpayment or underpayment of the amount due. Any amounts underpaid shall be immediately paid by Tenant to the ProjectLandlord, and the cost of lighting, maintenance and repair of the Project identification signsany amounts overpaid shall be immediately reimbursed by Landlord to Tenant.

Common Area Charges. In addition to the rental and other charges herein provided to be paid by Lessee to Lessor, Lessee shall pay to Lessor, as additional rent and as Lessee’s 's share of the cost of maintaining, operating, repairing re▇▇▇▇▇▇g and managing the Project, Lessee’s 's proportionate share (as defined in Section PARAGRAPH 12) of the ▇▇ ▇▇e Total Common Area Charges (as hereinafter defined) for any calendar year during the Term (the “"CAM Amount”"). Lessee shall pay Lessor in advance its monthly estimated proportionate share (as described in Section PARAGRAPH 12) of the CAM AmountTotal Common Area Charges, together with all applicable rental taxes due thereon, within ten (10) days after receipt of an invoice from Lessor setting forth Lessor’s 's reasonable estimate of such amount. Within ninety (90) days following the end of each calendar year during the Term or as soon thereafter as is reasonably possible, Lessor shall furnish Lessee with a statement of all actual Total Common Area Charges for the Project for the previous calendar year indicating the computation of Lessee’s 's proportionate share of the CAM Amount Total Common Area Charges for such calendar year and the payments made by Lessee during such calendar year. If Lessee’s 's aggregate estimated monthly payments actually paid to Lessor pai▇ ▇▇ ▇essor for the calendar year are greater than Lessee’s 's proportionate share of the CAM Amount Total Common Area Charges for such calendar year, Lessor shall shall, at Lessee's option, promptly pay the excess to Lessee or shall apply the excess to any past due amounts owing from Lessee to Lessor; if the payments made are less than Lessee’s 's proportionate share, Lessee shall pay the difference to Lessor within ten (10) days of its receipt of such statement. Total Common Area Charges shall consist of all costs and expenses of every type associated with the management, repair, maintenance, and insuring maintenance of the Common Areas including, without limitation, costs and expenses for the following: gardening and landscaping; utilities, water and sewer charges; premiums for liability, property damage and casualty insurance and ▇▇▇▇▇▇▇’▇ workman's compensation insurance; all personal property taxes levied on ▇▇▇▇▇▇ ▇▇ or attributable to personal property used in connection with the Common Areas; straight line depreciation on personal property owned by Lessor which is consumed in the operation or maintenance of the Common Areas; rental or lease payments paid by Lessor for rented or leased personal property used in the operation or maintenance of Common Areas; fees for required licenses and permits; refuse disposal charges; repairing, resurfacing, repaving, maintaining, painting, lighting, cleaning, refuse removal, security and similar items; exterior painting of the Project; fees Please Initial Lessor G Lessee G paid to property managers which fee shall not exceed rates paid to comparable property managers by other landlords to manage comparable properties in the Tucson, Arizona area (including, without limitation, an amount equal to the fair rental value of any on-site manager's office); amortization of capital expenses, including financing costs at then market rates if (i) required by a governmental entity for energy conservation, life safety, ADA or environmental purposes, or (ii) such capital expenses reduce Total Common Area Charges; compensation (including employment taxes) of all persons who perform duties connected with the operation, maintenance, or repair of the Project, but only to the extent of the time performed working on the Project; repair and maintenance of exterior roofs roofs; and reserves for roof replacement, including the repair and replacement and exterior painting of the Project coating, membrane, and other appropriate reserves; and fees paid to property managersdecking of the roof, but excluding any costs incurred in connection with any repairs or improvements with the roof structure. Said Total Common Area Charges shall further include all charges for semi-annual utilities supplied to the Premises and to other tenants of the Project which are not separately metered, all charges for regular preventive maintenance service of mechanical equipment including, without limitation, heating, ventilating and air conditioning equipment, which is attributable to serves the ProjectCommon Areas, and the cost of lighting, maintenance and repair of the Project identification signs, all charges for repair and maintenance of mechanical equipment, including, without limitation, heating, ventilating and air conditioning equipment which is attributable to the Project, and the cost of repairing and maintaining the plumbing, electrical and other off-Premises facilities serving the Premises or the Project. The Total Common Area Charges that vary with occupancy and that are attributable to any part of the Term in which less than ninety-five percent (95%) of the rentable area of the Project is occupied by tenants will be adjusted by Lessor to the amount that Lessor reasonably believes they would have been if ninety-five percent (95%) of the rentable area of the Project had been so occupied. Notwithstanding any provision to the contrary contained in this Lease, during the initial Term of this Lease (excluding however any Extension Term), that portion of the CAM Amount that is within the reasonable control of Lessor (the "Controllable CAM Amount") for a calendar year shall not increase by more than seven and seventy seven hundredths percent (7.77%) over the Controllable CAM Amount for the previous calendar year during the years 2000, 2001, and 2002 and shall not increase by more than ten percent (10%) over the Controllable CAM Amount for the previous calendar year during the years 2003, 2004 and January and February of the year 2005. Notwithstanding the foregoing, the CAM Amount shall not include: (a) any leasing or brokerage commissions; (b) expenses which relate to preparation of rental space for a tenant; (c) legal fees and disbursements relating to other tenants; (d) costs of repair to the extent actually reimbursed by payment received by Lessor of insurance proceeds; (e) interest and pr▇▇▇▇▇▇l upon loans to Lessor or secured by mortgages or deeds of trust covering the Project or a portion thereof; (f) salaries of executive officers of Lessor; (g) depreciation claimed by Lessor for tax purposes; (h) the costs of any service provided to any other tenant or occupant of the Project which either (1) is not supplied or furnished to Lessee or (2) is supplied or furnished to Lessee pursuant to the terms of this Lease for a separate or additional charge; (i) payments made to Lessor or a company or other entity affiliated with Lessor for goods and services to the extent that such payments exceed the amounts that would have been paid to independent third parties for goods and services of like kind in connection with the repair, cleaning, maintenance and security of the Project; (j) the costs of any addition to the Project; (k) the costs of any sale, financing, or refinancing of the Project; (l) fines or penalties incurred due to a violation by Lessor of any governmental law, rule or regulation or due to the gross negligence of Lessor or any of its agents, representatives; Please Initial Lessor G Lessee G (m) capital costs incurred by Lessor to comply with any government laws, rules and regulations, unless such capital costs arise from Lessee's particular use of the Premises or are Lessee's responsibility pursuant to PARAGRAPH 6.2(a) or unless such capital costs are specifically included in this PARAGRAPH 11; (n) except as expressly permitted above in this PARAGRAPH 11, costs for off-site management and overhead; (o) costs which are covered by and reimbursable under any contractor, manufacturer or supplier warranty of service contracts; (p) except for reserves for the repair and maintenance of the roof as expressly permitted above in this PARAGRAPH 11, reserves of any kind, including, but not limited to, replacement reserves, reserves for bad debts or lost rent or any similar charge not involving the payment of money to third parties; (q) any tax or assessment expense: (1) in excess of the amount which would be payable if such tax or assessment expense (including carrying costs) were paid in installments over the longest permitted term without becoming delinquent; (2) imposed on land and improvements other than the Project; (3) occasioned by Lessor's failure to pay timely or perform any obligation of Lessor except to the extent such delay is attributable to Lessee; or (4) consisting of a tax or assessment for the investigation, remediation or removal of any Hazardous Material attributable to another tenant of the Project and/or existing prior to Lessee taking possession of the Premises; (r) the costs, including, without limitation, of repairs, maintenance, improvements, replacements, premiums, claims, losses, fees, commissions, charges, disbursements, attorneys' fees, experts' fees, costs and expenses (collectively, the "Costs"): (1) occasioned by fire or other casualty, or by the exercise of the power of eminent domain, but only to the extent covered and paid for by insurance or condemnation proceeds; (2) for which Lessor is actually reimbursed from other tenants of the Project; or Costs which Lessee pays directly to a third person; (3) incurred in connection with any tenant improvement, alteration or redecorating of space leased or held for lease in the Project; (4) to the extent arising from the materially disproportionate use of any utility or service supplied by Lessor to any other occupant of the Project or associated with separately metered utilities to another occupant of the Premises or with utilities and services to another occupant of the Project of a type not provided to Lessee; (5) arising from any remediation of any Hazardous Material in the Projet which is required to be remediated under applicable law; (6) arising from the abatement of asbestos containing material in the Project; and (7) of any mortgage or debt secured by the Project, including, without limitation, interest, principal, charges and fees, and any rent under ground leases; (s) costs of advertising and public relations and promotions associated with the promotion or leasing of the Project and costs of signs in or on the Project identifying the owners of the Project or any tenant of the Project; (t) costs incurred in connection with disputes with tenants, other occupants, or prospective tenants, or costs and expenses incurred in connection with negotiations or disputes with employees, management agents, leasing agents, purchasers or mortgagees of the Project; (u) costs of repairing, replacing or otherwise correcting defects (including latent defects) in or inadequacies of (excluding, however, the costs of ordinary and customary maintenance and repair) the initial design or construction of the Project or the costs of repairing, replacing or correcting defects in the initial design or construction of any tenant improvements originally constructed by Lessor ; (v) increased insurance premiums caused by Lessor's or any other tenant's hazardous acts; (w) costs of overtime HVAC service provided to any other tenant of the Project and, to the extent Lessor has billed Lessee directly for such costs separate from the CAM Amount, to Lessee; (x) fees for management of the Project in excess of the management fees provided for hereinabove; (y) the cost of any judgment, settlement, or arbitration award resulting from any liability of Lessor; Please Initial Lessor G Lessee G (z) the cost of providing any service customarily provided by a managing agent and the cost of which is customarily included in management fees (e.g., bookkeeping and accounting costs); (aa) the cost of any separate electrical meter cost or any survey Lessor may provide to any other tenant in the Project; (bb) costs relating to withdrawal liability or unfunded pension liability under the Multi-Employer Pension Plan Act or similar law; (cc) amounts payable pursuant to any operating agreement or reciprocal easement agreement (excluding, however, any amounts or assessments payable pursuant to the covenants, conditions and restrictions (as may be amended or supplemented) of Butterfield Business Center which currently affects the Project); (dd) any costs arising from any charitable or political contributions; (ee) the entertainment and travel expenses of Lessor, its employees, agents, officers, directors, partners and affiliates; (ff) any costs, fees, dues, contributions or similar expenses for industry associations or similar organizations in which the Project is a member; and (gg) any cost expressly excluded from the CAM Amount elsewhere in this Lease.

Common Area Charges. In addition to Commencing with the rental Rental Commencement Date and other charges herein provided to be paid by Lessee to Lessorthereafter during the Term hereof, Lessee shall will pay to Lessor, as additional rent and as Lessee’s share rent, an annual amount, without deduction or setoff, equal to such proportion of "Lessor's Operating Cost of the cost Common Areas" as the Floor Area of maintainingthe Demised Premises bears to total floor space leasable in the Shopping Center. For the purposes of this Section 2.7, operating"Lessor's Operating Cost of the Common Areas" is defined as including all of Lessor's costs and expenses of operating and maintaining the Common Areas in the Shopping Center, repairing and managing the Projectshall be deemed to include, Lessee’s proportionate share without limitation, landscaping, sanitary control, cleaning, utilities, snow removal, resurfacing, painting, fire protection, security, traffic control, repairs, policing and Lessor's overhead expenses for administering same in an amount not to exceed fifteen percent (as defined in Section 1215%) of the Total Common Area Charges total of such costs. The annual charge shall be computed on the basis of periods of twelve (12) consecutive calendar months as hereinafter defined) for designated by Lessor, and shall be paid by Lessee in equal installments in advance on the first day of each calendar month in an amount reasonably estimated by Lessor. For any calendar year during period within the Term which is less than a full year, the annual charge shall be appropriately prorated. Within sixty (60) days after the “CAM Amount”)end of each such twelve (12) month period, Lessor will furnish to Lessee a statement showing in reasonable detail the amount of Lessor's operating costs for the preceding period, any necessary adjustments shall thereupon be made, and the monthly payments to be made by Lessee for the ensuing year shall be estimated accordingly. Changes in applicable Floor Areas shall result in corresponding pro rata adjustments. Subject to adjustment as herein contemplated, Lessee shall pay Lessor in advance its monthly estimated proportionate share (as described in Section 12) of on the CAM Amount, together with all applicable rental taxes due thereon, within ten (10) days after receipt of an invoice from Lessor setting forth Lessor’s estimate of such amount. Within ninety (90) days following the end first day of each calendar year during the Term or month as soon thereafter as is reasonably possible, Lessor shall furnish Lessee with a statement an initial estimate of all Total Lessee's share of Common Area Charges for charges the Project for amount equal to 1/12 of an amount computed by multiplying the previous calendar year indicating annual rate of approximately eighty cents ($0.80) times the computation total square feet of Lessee’s proportionate share Floor Area of the CAM Amount for such calendar year and the payments made by Lessee during such calendar year. If Lessee’s aggregate estimated monthly payments actually paid to Lessor for the calendar year are greater than Lessee’s proportionate share of the CAM Amount for such calendar year, Lessor shall promptly pay the excess to Lessee or shall apply the excess to any past due amounts owing from Lessee to Lessor; if the payments made are less than Lessee’s proportionate share, Lessee shall pay the difference to Lessor within ten (10) days of its receipt of such statement. Total Common Area Charges shall consist of all costs and expenses of every type associated with the management, repair, maintenance, and insuring of the Common Areas including, without limitation, costs and expenses for the following: gardening and landscaping; utilities, water and sewer charges; premiums for liability, property damage and casualty insurance and ▇▇▇▇▇▇▇’▇ compensation insurance; all personal property taxes levied on or attributable to personal property used in connection with the Common Areas; straight line depreciation on personal property owned by Lessor which is consumed in the operation or maintenance of the Common Areas; rental or lease payments paid by Lessor for rented or leased personal property used in the operation or maintenance of Common Areas; fees for required licenses and permits; refuse disposal charges; repairing, resurfacing, repaving, maintaining, painting, lighting, cleaning, refuse removal, security and similar items; repair and maintenance of exterior roofs and reserves for roof replacement and exterior painting of the Project and other appropriate reserves; and fees paid to property managers. Said Total Common Area Charges shall further include all charges for semi-annual preventive maintenance service of mechanical equipment including, without limitation, heating, ventilating and air conditioning equipment, which is attributable to the Project, and the cost of lighting, maintenance and repair of the Project identification signsDemised Premises.