8x8 2016 Annual Report Download - page 109
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Please find page 109 of the 2016 8x8 annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.A. BooksandRecords.Withinonehundredeighty(180)daysafterreceivinganyAnnualStatement(the"ReviewNoticePeriod"),Tenant
maygiveLandlordNotice("ReviewNotice")statingthatTenantelectstoreviewLandlord'scalculationoftheOperatingExpensesforthe
calendaryeartowhichsuchAnnualStatementappliesandidentifying,withreasonablespecificity,thecomponents("Components")ofthe
OperatingExpenseswhichTenantwishestoreview,thereasonablegroundsTenanthasforbelievingthattheComponentsareoverstatedor
computedincorrectly,andtherecordsofLandlordreasonablyrelatingtotheComponentsthatTenantdesirestoreview.Withinareasonable
timeafterreceivingatimelyReviewNotice(and,atLandlord'soption,anexecutedcommerciallyreasonableconfidentialityagreementas
describedbelow),LandlordshalldelivertoTenant,ormakeavailableforinspectionatalocationreasonablydesignatedbyLandlord,copies
ofsuchrecords.LandlordshallmakeallpertinentrecordsavailableforinspectionthatarereasonablynecessaryforTenanttoconductits
review.Withinsixty(60)daysaftersuchrecordsaremadeavailabletoTenant(the"ObjectionPeriod"),TenantmaydelivertoLandlord
Notice(an"ObjectionNotice")statingwithreasonablespecificityanyobjectionstotheamountoforinclusionoftheComponentsinthe
AnnualStatement,inwhicheventLandlordandTenantshallworktogetheringoodfaithtoresolveTenant'sobjections.Tenantmaynot
delivermorethanoneReviewNoticeormorethanoneObjectionNoticewithrespecttoanyfiscalorcalendaryearusedbyLandlordfor
computingOperatingExpenses.IfTenantfailstogiveLandlordaReviewNoticebeforetheexpirationoftheReviewNoticePeriodorfailsto
giveLandlordanObjectionNoticebeforetheexpirationoftheObjectionPeriod,TenantshallbedeemedtohaveapprovedtheAnnual
Statement.IfTenantretainsanagenttoreviewLandlord'srecords,theagentmustbewithaCPAfirmlicensedtodobusinessintheStateof
Californiaanditsfeesshallnotbecontingent,inwholeorinpart,upontheoutcomeofthereview.Nosuchauditmaybeperformedbyany
personorentitywho,withinthelastfive(5)years,hasperformedanyrevieworauditofOperatingExpensesforanytenantinanypartofthe
Project.Tenantshallberesponsibleforallcostsofsuchreview.TherecordsandanyrelatedinformationobtainedfromLandlordshallbe
treatedasconfidential,andasapplicableonlytothePremises,byTenant,itsauditors,consultants,andanyotherpartiesreviewingthesame
onbehalfofTenant(collectively,"Tenant'sAuditors").Beforemakinganyrecordsavailableforreview,LandlordmayrequireTenantand
Tenant'sAuditorstoexecuteareasonableconfidentialityagreement,inwhicheventTenantshallcausethesametobeexecutedand
deliveredtoLandlordwithinthirty(30)daysafterreceivingitfromLandlord,andifTenantfailstodoso,theObjectionPeriodshallbereduced
byonedayforeachdaybywhichsuchexecutionanddeliveryfollowstheexpirationofsuchthirty(30)-dayperiod.Notwithstandingany
contraryprovisionhereof,Tenantmaynotgiveanynoticehereunder,examineLandlord'srecordsordisputeanyAnnualStatementifand
EventofDefaulthasoccurredandiscontinuinghereunder.If,foranyfiscalorcalendaryearusedbyLandlordforcomputingOperating
Expenses,LandlordandTenantdeterminethatthesumofTenant'sShareoftheComponentsislessormorethantheamountreported,
TenantshallreceiveacreditintheamountofitsoverpaymentagainstRentthenornextduehereunder,orshallpayLandlordtheamountof
itsunderpaymentwiththeRentnextduehereunder;provided,however,thatifthisLeasehasexpiredorterminatedandTenanthasvacated
thePremises,LandlordshallpayTenanttheamountofTenant'soverpayment(lessanyRentdue),orTenantshallpayLandlordtheamount
ofTenant'sunderpayment,withinthirty(30)daysaftersuchdetermination.Further,intheeventthatsuchexaminationrevealsthatTenant
wasover-chargedbymorethanfivepercent(5%)ofaggregateOperatingExpenses,thenLandlordshallalsopromptlyreimburseTenantfor
theactualcostofperformingtheaudit.TenantagreesthatTenant'ssolerighttoinspectLandlord'sbooksandrecordsandtocontestthe
amountofOperatingExpensespayablebyTenantshallbeassetforthinthisSection7.1(a)andTenantwaivesanyandallotherrightsto
inspectsuchbooksandrecordsand/ortocontesttheamountofOperatingExpensespayablebyTenant.
7.2DefinitionofTenant'sShare.Theterm"Tenant'sShare"meansthatportionofanOperatingExpensedeterminedbymultiplyingthecostof
suchitembyafraction,thenumeratorofwhichisthePremisesSquareFootageandthedenominatorofwhichisthetotalsquarefootageofthefloor
areaoftheBuildingortheProperty,dependingonthenatureoftheOperatingExpensetobecharged,asofthedateonwhichthecomputationis
made. A determination of Tenant's Share for various Operating Expenses for the Building is set forth in Item 16of the Basic LeaseProvisions.
TenantacknowledgesthatthetotalsquarefootageoftheBuildingorPropertymaychangefromtimetotime,andthatTenant'sShareunderanyor
alloftheforegoingcategoriesofOperatingExpensesmayvaryaccordingly,effectiveonthefirstdayofthemonthaftereachsuchchangeoccurs.A
determinationofTenant'sShareandBuildingsquarefootageasofthedatehereofissetforthinItems16and6,respectively,oftheBasicLease
Provisions.
7.3DefinitionofProjectCosts.Theterm"ProjectCosts"meansallcostsandexpensesincurredbyLandlordorLandlord'sAgentsinconnection
withtheoperationoftheBuilding,including,butnotlimitedto, thefollowing:repairandmaintenanceoftheroof,structuralframe, foundationand
exterior walls of the Building, periodic painting of the Building, periodic cleaning of the exterior windows of the Building, landscaping services,
outsidepestcontrol,normalmaintenanceandrepair ofthe HVACthroughmaintenancecontractsorotherwise,sweeping,maintenanceservices,
repairstoandreplacementofasphaltpaving,bumpers,striping,lightbulbs,lightstandards,monumentanddirectionalsignsandlightingsystems,
perimeterwalls,retainingwalls,sidewalks,planters,landscapingandsprinklersysteminplantingarea,anyandallassessmentsleviedagainstthe
Buildingpursuantto
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