PROPOSITION 8 REDUCTION SHALL NOT BE INCLUDED IN DIRECT EXPENSES FOR PURPOSES OF
THIS LEASE, AND (II) TAX REFUNDS UNDER PROPOSITION 8 SHALL NOT BE DEDUCTED FROM
TAX EXPENSES, BUT RATHER SHALL BE THE SOLE PROPERTY OF LANDLORD.
LANDLORD AND
TENANT ACKNOWLEDGE THAT THIS SECTION IS NOT INTENDED TO IN ANY WAY
AFFECT (A) THE INCLUSION IN TAX EXPENSES OF THE STATUTORY TWO PERCENT (2.0%)
ANNUAL INCREASE IN TAX EXPENSES (AS SUCH STATUTORY INCREASE MAY BE MODIFIED BY
SUBSEQUENT LEGISLATION), OR (B) THE INCLUSION OR EXCLUSION OF TAX EXPENSES
PURSUANT TO THE TERMS OF PROPOSITION 13, WHICH SHALL BE GOVERNED PURSUANT TO THE
TERMS OF SECTIONS THROUGH , ABOVE.
[***]
4.2.6
"TENANT'S SHARE" SHALL MEAN THE PERCENTAGE SET FORTH IN SECTION 6
OF THE SUMMARY.
TENANT'S SHARE WAS CALCULATED BY MULTIPLYING THE NUMBER OF
RENTABLE SQUARE FEET OF THE PREMISES, AS SET FORTH IN SECTION 2.2 OF THE
SUMMARY, BY 100, AND DIVIDING THE PRODUCT BY THE TOTAL NUMBER OF RENTABLE SQUARE
FEET IN THE BUILDING.
4.2.7
"UTILITIES COSTS" SHALL MEAN ALL ACTUAL CHARGES FOR UTILITIES FOR
THE BUILDING AND THE PROJECT WHICH LANDLORD SHALL PAY DURING ANY EXPENSE YEAR,
INCLUDING, BUT NOT LIMITED TO, THE COSTS OF WATER, SEWER AND ELECTRICITY, AND
THE COSTS OF HVAC (INCLUDING, UNLESS PAID BY TENANT PURSUANT TO SECTION 6.1.2
BELOW, THE COST OF ELECTRICITY TO OPERATE THE HVAC AIR HANDLERS) AND OTHER
UTILITIES (BUT EXCLUDING (I) THE COST OF ELECTRICITY CONSUMED IN THE PREMISES
AND THE PREMISES OF OTHER TENANTS OF THE BUILDING AND ANY OTHER BUILDINGS IN THE
PROJECT (SINCE TENANT IS SEPARATELY PAYING FOR THE COST OF ELECTRICITY PURSUANT
TO SECTION 6.1.2 BELOW) AND (II) THOSE CHARGES FOR WHICH TENANTS DIRECTLY
REIMBURSE LANDLORD OR OTHERWISE PAY DIRECTLY TO THE UTILITY COMPANY) AS WELL AS
RELATED FEES, ASSESSMENTS AND SURCHARGES.
UTILITIES COSTS SHALL BE CALCULATED
ASSUMING THE BUILDINGS (AND DURING THE PERIOD OF TIME WHEN ANY OTHER OFFICE
BUILDINGS ARE FULLY CONSTRUCTED AND READY FOR OCCUPANCY AND ARE INCLUDED BY
LANDLORD WITHIN THE PROJECT), ARE AT LEAST [***] PERCENT ([***]%) OCCUPIED.
IF,
DURING ALL OR ANY PART OF ANY EXPENSE YEAR, LANDLORD SHALL NOT PROVIDE ANY
UTILITIES OTHER THAN GAS AND ELECTRICITY (THE COST OF WHICH, IF PROVIDED BY
LANDLORD, WOULD BE INCLUDED IN UTILITIES COSTS) TO A TENANT (INCLUDING TENANT)
WHO HAS UNDERTAKEN TO PROVIDE THE SAME INSTEAD OF LANDLORD, UTILITIES COSTS
SHALL BE DEEMED TO BE INCREASED BY AN AMOUNT EQUAL TO THE ADDITIONAL UTILITIES
COSTS WHICH WOULD REASONABLY HAVE BEEN
20
*** CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND FILED
SEPARATELY WITH THE COMMISSION.
INCURRED DURING SUCH PERIOD BY LANDLORD IF LANDLORD HAD AT ITS OWN EXPENSE
PROVIDED SUCH UTILITIES TO SUCH TENANT.
UTILITIES COSTS SHALL INCLUDE ANY COSTS
OF UTILITIES WHICH ARE ALLOCATED TO THE REAL PROPERTY UNDER ANY DECLARATION,
RESTRICTIVE COVENANT, OR OTHER INSTRUMENT PERTAINING TO THE SHARING OF COSTS BY
THE REAL PROPERTY OR ANY PORTION THEREOF, INCLUDING ANY COVENANTS, CONDITIONS OR
RESTRICTIONS NOW OR HEREAFTER RECORDED AGAINST OR AFFECTING