Common use of Operating Expense Escalation Clause in Contracts

Operating Expense Escalation. Commencing twelve (12) months following the Commencement Date, Subtenant shall pay Sublandlord an Operating Expense Escalation equal to two and one half percent (2.5%) per annum of the prior year’s Fixed Rent in lieu of any other payment on account of escalations in operating expenses for the Building, the Prime Lease Premises or the Premises, pursuant to the Prime Lease or otherwise (the “Operating Expense Escalation Payment”). For purposes of illustration, the Fixed Rent plus Operating Expense Escalation commencing twelve (12) months following the Commencement Date shall be as follows on a monthly and annual basis (it being understood that (i) the dates set forth below are based upon a Commencement Date of June 1, 2007 and in the event that the Commencement Date varies from that date, the dates set forth below shall vary accordingly) and (ii) if the final period is less than twelve (12) months, then the per annum sum of Fixed Rent plus Operating Expense Escalation for such period shall be prorated). June 1, 2007 – May 31, 2008 $ 2,626,920.00/annum $ 218,910.00/month June 1, 2008 – May 31, 2009 $ 2,692,593.00/annum $ 224,382.75/month June 1, 2009 – May 31, 2010 $ 2,759,907.80/annum $ 229,992.31/month June 1, 2010 – May 31, 2011 $ 2,828,905.52/annum $ 235,742.13/month June 1, 2011 – May 31, 2012 $ 2,899,628.47/annum $ 241,635.71/month June 1, 2012 – May 31, 2013 $ 2,972,119.18/annum $ 247,676.60/month June 1, 2013 – May 31, 2014 $ 3,046,422.16/annum $ 253,868.51/month June 1, 2014 – Expiration Date $ 3,122,582.71/annum $ 260,215.22/month

Operating Expense Escalation. Commencing twelve (12) months following the Rent Commencement Date, Subtenant shall pay Sublandlord an Operating Expense Escalation equal to two and one half percent (2.5%) per annum of the prior year’s Fixed Rent in lieu of any other payment on account of escalations in operating expenses for the Building, the Prime Lease Premises or the Premises, pursuant to the Prime Lease or otherwise (the “Operating Expense Escalation Payment”). For purposes of illustration, the Fixed Rent plus Operating Expense Escalation commencing twelve (12) months following the Rent Commencement Date shall be as follows on a monthly and annual basis (it being understood that (i) the dates set forth below are based upon a Rent Commencement Date of June November 1, 2007 and in the event that the Rent Commencement Date varies from that date, the dates set forth below shall vary accordingly) and (ii) if the final period is less than twelve (12) months, then the per annum sum of Fixed Rent plus Operating Expense Escalation for such period shall be prorated). June November 1, 2007 – May October 31, 2008 $ 2,626,920.00218,529.00/month $ 2,622,348.00/annum $ 218,910.00/month June November 1, 2008 – May October 31, 2009 $ 2,692,593.00223,992.23/month $ 2,687,906.76/annum $ 224,382.75/month June November 1, 2009 – May October 31, 2010 $ 2,759,907.80229,592.04/month $ 2,755,104.48/annum $ 229,992.31/month June November 1, 2010 – May October 31, 2011 $ 2,828,905.52235,331.84/month $ 2,823,982.08/annum $ 235,742.13/month June November 1, 2011 – May October 31, 2012 $ 2,899,628.47241,215.14/month $ 2,894,581.68/annum $ 241,635.71/month June November 1, 2012 – May October 31, 2013 $ 2,972,119.18247,245.52/month $ 2,966,946.24/annum $ 247,676.60/month June November 1, 2013 – May October 31, 2014 $ 3,046,422.16253,426.66/month $ 3,041,119.92/annum $ 253,868.51/month June November 1, 2014 – Expiration Date $ 3,122,582.71259,762.33/annum month $ 260,215.223,117,147.96/monthannum