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B. Definitions: The following definitions apply to the use of the terms within this paragraph:
<br /> Property is defined as the land and Buildings in which the Premises are located, including all Appurtenant Areas (e.g., parking areas to which the
<br /> Government is granted rights).
<br /> Real Estate Taxes are those taxes that are levied upon the owners of real property by a Taxing Authority(as hereinafter defined)of a state or local
<br /> Government on an ad valorem basis to raise general revenue for funding the provision of government services. The term excludes,without limitation,
<br /> special assessments for specific purposes,assessments for business improvement districts,and/or community development assessments.
<br /> Taxing Authority is a state,commonwealth,territory,county, city, parish,or political subdivision thereof,authorized by law to levy, assess,and collect
<br /> Real Estate Taxes.
<br /> Tax Year refers to the 12-month period adopted by a Taxing Authority as its fiscal year for assessing Real Estate Taxes on an annual basis.
<br /> Tax Abatement is an authorized reduction in the Lessor's liability for Real Estate Taxes below that determined by applying the generally applicable real
<br /> estate tax rate to the Fully Assessed(as hereinafter defined)valuation of the Property.
<br /> Unadjusted Real Estate Taxes are the full amount of Real Estate Taxes that would be assessed for the Property for one full Tax Year without regard to
<br /> the Lessor's entitlement to any Tax Abatements(except if such Tax Abatement came into effect after the date of award of the Lease),and not including
<br /> any late charges, interest or penalties. If a Tax Abatement comes into effect after the date of award of the Lease,"unadjusted Real Estate Taxes"are
<br /> the full amount of Real Estate Taxes assessed for the Property for one full Tax Year,less the amount of such Tax Abatement,and not including any late
<br /> charges,interest,or penalties.
<br /> Real Estate Tax Base is the unadjusted Real Estate Taxes for the first full Tax Year following the commencement of the Lease term. If the Real Estate
<br /> Taxes for that Tax Year are not based upon a Full Assessment of the Property, then the Real Estate Tax Base shall be the Unadjusted Real Estate
<br /> Taxes for the Property for the first full Tax Year for which the Real Estate Taxes are based upon a Full Assessment. Such first full Tax Year may be
<br /> hereinafter referred to as the Tax Base Year. Alternatively,the Real Estate Tax Base may be an amount negotiated by the parties that reflects an agreed
<br /> upon base for a Fully Assessed value of the Property.
<br /> The Property is deemed to be Fully Assessed (and Real Estate Taxes are deemed to be based on a Full Assessment)only when a Taxing Authority
<br /> has,for the purpose of determining the Lessor's liability for Real Estate Taxes, determined a value for the Property taking into account the value of all
<br /> improvements contemplated for the Property pursuant to the Lease,and issued to the Lessor a tax bill or other notice of levy wherein the Real Estate
<br /> Taxes for the full Tax Year are based upon such Full Assessment. At no time prior to the issuance of such a bill or notice shall the Property be deemed
<br /> Fully Assessed.
<br /> Percentage of Occupancy refers to that portion of the Property exclusively occupied or used by the Government pursuant to the Lease. For Buildings,
<br /> the Percentage of Occupancy is determined by calculating the ratio of the RSF occupied by the Government pursuant to the Lease to the total RSF in
<br /> the Building or Buildings so occupied,and shall not take into account the Government's ancillary rights including,but not limited to,parking or roof space
<br /> for antennas(unless facilities for such ancillary rights are separately assessed). This percentage shall be subject to adjustment to take into account
<br /> increases or decreases for Space leased by the Government or for rentable space on the Property.
<br /> C. Adjustment for changes in Real Estate Taxes. After the Property is Fully Assessed,the Government shall pay its share of any increases and
<br /> shall receive its share of any decreases in the Real Estate Taxes for the Property,such share of increases or decreases to be referred to herein as"tax
<br /> adjustment." The amount of the tax adjustment shall be determined by multiplying the Government's Percentage of Occupancy by the difference between
<br /> the current year Unadjusted Real Estate Taxes and the Real Estate Tax Base, less the portion of such difference not paid due to a Tax Abatement
<br /> (except if a Tax Abatement comes into effect after the date of award of the Lease). If a Tax Abatement comes into effect after the date of award of the
<br /> Lease,the amount of the tax adjustment shall be determined by multiplying the Government's Percentage of Occupancy by the difference between the
<br /> current year Unadjusted Real Estate Taxes and the Real Estate Tax Base. The Government shall pay the tax adjustment in a single annual lump sum
<br /> payment to the Lessor. In the event that this tax adjustment results in a credit owed to the Government,the Government may elect to receive payment
<br /> in the form of a rental credit or lump sum payment.
<br /> If the Property contains more than one separately assessed parcel,then more than one tax adjustment shall be determined based upon the Percentage
<br /> of Occupancy, Real Estate Tax Base,and Real Estate Taxes for each respective parcel.
<br /> After commencement of the Lease term,the Lessor shall provide to the LCO copies of all real estate tax bills for the Property,all documentation of Tax
<br /> Abatements, credits, or refunds, if any, and all notices which may affect the assessed valuation of the Property, for the Tax Year prior to the
<br /> commencement of the Lease Term, and all such documentation for every year following. Lessor acknowledges that the LCO shall rely on the
<br /> completeness and accuracy of these submissions in order to establish the Real Estate Tax Base and to determine tax adjustments. The LCO may
<br /> memorialize the establishment of the Real Estate Tax Base by issuing a unilateral administrative lease amendment indicating the base year,the amount
<br /> of the Real Estate Tax Base,and the Government's Percentage of Occupancy.
<br /> The Real Estate Tax Base is subject to adjustment when increases or decreases to Real Estate Taxes in any Tax Year are attributable to (a)
<br /> improvements or renovations to the Property not required by this Lease, or(b)changes in net operating income for the Property not derived from this
<br /> Lease. If either condition results in a change to the Real Estate Taxes,the LCO may re-establish the Real Estate Tax Base as the Unadjusted Real
<br /> Estate Taxes for the Tax Year the Property is reassessed under such condition,less the amount by which the Unadjusted Real Estate Taxes for the Tax
<br /> Year prior to reassessment exceeds the prior Real Estate Tax Base.
<br /> If this Lease includes any options to renew the term of the Lease,or be otherwise extended,the Real Estate Tax Base for determining tax adjustments
<br /> during the renewal term or extension shall be the last Real Estate Tax Base established during the base term of the Lease.
<br /> LEASE NO. 57-37135-21-FA, PAGE 12 LESSOR: GOVERNMENT: GSA TEMPLATE L100
<br /> REV(10/20)
<br /> FPAC V11.13.20
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