Operating Costs. Notwithstanding anything to the contrary contained in the Lease, effective as of the Third Amendment Commencement Date, # the Base Year shall be amended to be calendar year 2023, # Tenant shall not be responsible for Operating Costs Allocable to the Premises from the Third Amendment Commencement Date until January 31, 2024, and # for the period commencing on the Third Amendment Commencement Date and continuing until January 31, 2024 only, any increase of Property Taxes pursuant to Proposition 13 shall not be Tenant's responsibility. The provisions relating to Proposition 8 set forth in the Original Lease are hereby ratified and shall remain in full force and effect.

Operating Costs; Taxes. Operating Costs related to the operation, management, repair, replacement, and maintenance of the Parking Areas shall be excluded from the definition of Operating Costs. Notwithstanding the foregoing, insurance related to the Parking Areas shall not be excluded from the definition of Operating Costs. Real estate taxes and other taxes, levies and assessments imposed upon the Parking Areas shall not be excluded from the definition of Taxes.

Operating Costs. “Operating Costs” will mean all costs, charges, and expenses incurred by Landlord in connection with owning, operating, maintaining, repairing, insuring and managing the Project, computed on an accrual basis and including, without limitation, costs, charges and expenses incurred with respect to the items enumerated as “Operating Cost Examples” in Paragraph 2 of Exhibit C to this Lease. Operating Costs will not include those items enumerated as “Operating Cost Exclusions” in Paragraph 1 of Exhibit C to this Lease.

Operating Costs. Tenant shall pay the Operating Costs incurred during or attributable to the Lease Term as Additional Rent beginning on the Rent Commencement Date.

Operating Costs Cap. For purposes of calculating Additional Rent under Section 4.(b), the maximum increase in the amount of Controllable Operating Costs (defined below) that may be included in calculating such Additional Rent for each calendar year after the first lease year shall be limited to 6% per calendar year on a cumulative, compounded basis. "Controllable Operating Costs" means all Operating Costs excluding taxes, insurance, utilities, snow removal costs and other weather-related costs (including extraordinary landscape maintenance costs, such as those resulting from infestation, storms, drought, and other severe weather), and costs incurred to comply with governmental requirements enacted or reinterpreted following the Lease Date, and costs arising from force majeure.

In the event the total Operating Costs incurred by Landlord for the Building in any calendar year of Landlord during the term of this Lease increase for any reason above those incurred in the Operating Cost Base Year as set forth in the Reference Data (“Base Operating Costs”), Tenant shall pay to Landlord as Additional Rent hereunder Tenant’s Proportionate Share of such increase.

Operating Costs. Tenant shall reimburse Landlord for Tenant’s Percentage of Operating Costs.

Operating Costs. Tenant shall reimburse Landlord for Tenant’s Percentage of Operating Costs. Except as otherwise provided in the immediately following paragraph Tenant shall pay Tenant’s Percentage of Operating Costs 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 customs and practices of the real estate industry in the greater San Diego area, consistently applied. Any 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 Tenant shall contest any items therein by giving Landlord a Dispute Notice timely as hereinafter provided.

Total Operating Costs. During the Extended Term, and the Option Term (defined in Section 5) as the case may be, Tenant will reimburse Landlord for Tenant's proportionate share of Landlord's estimated Total Operating Costs in the amount of approximately $0.38 per square foot, per month, payable in advance on or before the fifth day of each calendar month during the Extended Term, and the Option Term as the case may be, in equal monthly installments of $14,883.00, each as otherwise provided in Section 7.3 of the Lease.

In addition to the Rent and other charges prescribed in this Lease, Tenant shall pay to Landlord, as Additional Rent required pursuant to this Lease, Tenant's Proportionate Share of the actual cost of Landlord's management, operation and maintenance of the Common Area, as well as other shared costs of any kind which may be incurred by Landlord in its discretion in connection with the operation, cleaning, security, maintenance, ownership, management, and repair of the Building and the Project (collectively, the "Operating Costs"), all calculations, determinations, allocations, and decisions shall be made in accordance with GAAP, consistently applied, including, without limitation, all costs of the following: lighting, painting, cleaning, policing, inspecting, and repairing Common Area elements; trash removal (except as paid directly by Tenant or otherwise administered pursuant to [Section 10.4] of this Lease); insect and pest treatments and eradication (whether in the Common Area or for the Building or the Project); security (if and to the extent Landlord elects to provide security); roof repairs and maintenance; environmental protection improvements or devices and health and safety improvements and devices which may be required by applicable laws enacted or first enforced after the Commencement Date (including the maintenance, and repair of same); environmental monitoring programs and devices; wages and salaries of all employees, agents, consultants and others engaged in operation, cleaning maintenance, repair, replacement and security of the Project but not above the title of Project manager; charges and assessments paid by Landlord pursuant to any owner's association, reciprocal easement, covenants or comparable document affecting the Building or the Project; any fees which Landlord pays for the management or asset management of the Project (not to exceed three percent (3%) of the Base Rent); utilities; snow and ice removal; the foregoing notwithstanding, monthly amortization of only those capital expenses or capital improvements made # to effect a net reduction or prevent a net increase in Operating Costs after considering the cost of any such amortization or # to comply with laws promulgated or made applicable to the Project following the date of this Lease (such amortization to be calculated over the useful life of such improvement (as determined by Landlord in accordance with generally accepted accounting principles, consistently applied (“GAAP”)) at a rate of interest actual or imputed, at Landlord’s option, that Landlord would reasonably be required to pay to finance the cost of the item, applied on the unamortized balance (the “Permitted Capital Costs”); the cost of resurfacing and restriping parking areas and roadways; any other item stated in this Lease to be an Operating Cost, and the cost of any insurance for which Landlord is not reimbursed pursuant to [Section 6.2]. In addition, although the roof(s), canopies, sewer and water lines servicing the Project, fire-protection systems and devices, if any (such as sprinkler systems, if any), foundations and exterior surfaces of the building(s) in the Project are not literally part of the Common Area, Landlord and Tenant agree that all non-capital costs (other than Permitted Capital Costs) incurred by Landlord with respect to all Building sewer (including septic systems, if applicable) and water lines and other equipment (including maintenance, and repair of same), fire-protection equipment and devices (including maintenance, and repair of same), exterior painting and for roof and canopy maintenance, repair and replacement shall be included as Operating Costs pursuant to this [Section 7.4], to the extent not specifically allocated to Tenant under this Lease nor to another tenant pursuant to its lease. The charges contemplated in this [Section 7.4], however, shall not include any expenses paid or reimbursed by Tenant pursuant to Article VI of this Lease. Operating Costs shall expressly exclude: # costs of alterations of tenant spaces (including all tenant improvements to such spaces); # costs of capital improvements, capital repairs or capital replacements except for Permitted Capital Costs; # depreciation, interest and principal payments on mortgages, and other debt costs, if any; # real estate brokers' leasing commissions or compensation and advertising and other broker marketing expenses; # costs of other services or work performed for the singular benefit of another tenant or occupant (other than for Common Area); # legal, space planning, construction, and other expenses incurred in procuring tenants for the Building or renewing or amending leases with existing tenants or occupants of the Building (other than Tenant); # costs of advertising and public relations and promotional costs and attorneys' fees associated with the leasing of the Building; # any expense for which Landlord actually receives reimbursement from insurance, condemnation awards, other tenants, (other than through the payment of additional rent under such tenants' leases) or any other source; # costs incurred in connection with the sale, financing, refinancing, mortgaging, or other change of ownership of the Building; # Real Estate Charges or Insurance Expenses, which are passed through to Tenant separately; # costs, fines, interest, penalties, legal fees or costs of litigation incurred due to the late payments of utility bills and other costs incurred by Landlord's failure to make such payments when due unless caused by Tenant's failure to pay on time; # any attorneys' fees incurred by Landlord in connection with any lease or proposed lease at the Project; # reserves of any kind; # costs arising from Landlord's charitable or political contributions; # wages, salaries, benefits, or other costs of employees above the grade of building manager; and # any costs necessitated by or resulting from the gross negligence or willful misconduct of Landlord, or its agents, contractors, or employees.