|
was in effect during such calendar year bears to 365 . Landlord ' s right to recover Tenant ' s Proportionate
<br /> Share of the Operating Expenses Differential shall survive the expiration or prior termination of this Lease .
<br /> (c) The "Tenant 's Proportional Share " is the percentage that will be used to calculate the
<br /> Tenant ' s share of the Operating Expenses that are incurred during a calendar year . The amount of the
<br /> Tenant ' s share of an expense is dependent on the type of expense category, and the share will be
<br /> calculated using two methods :
<br /> ( i) The rentable square footage of the Demised Premises as then configured,
<br /> initially 2 , 970 RSF , divided by the commercial rentable square footage of the Building as
<br /> defined in paragraph 1 (d) , as then configured, initially 19 , 346 RSF . Thus , the quotient is
<br /> initially 15 . 35 % . That percentage will be used to calculate Tenant ' s Proportionate Share
<br /> of expenses including, but not limited to janitorial , electrical repair, flooring
<br /> maintenance, FIVAC repair, interior repairs, locks or door repair, property management
<br /> fees , materials and supplies , painting, pest control, plumbing repair, fees , security
<br /> services, signs, utilities , and window repair necessary for the operation of the Building .
<br /> (ii) The rentable square footage of the Demised Premises as then configured,
<br /> initially 2 , 970 RSF , divided by the commercial rentable square footage of the buildings
<br /> on the Property as defined in paragraph 1 (f) , as then configured, initially 238 , 749 RSF .
<br /> Thus , the quotient is initially 1 . 24 % . That percentage will be used to calculate Tenant' s
<br /> Proportionate Share of expenses including, but not limited to parking lot repairs , property
<br /> taxes , trash removal , landscaping, snow/ice removal , sprinkler services necessary to the
<br /> operation of the Property .
<br /> By way of hypothetical example , if the cost incurred in the Lease Year 1 for the janitorial services
<br /> to the Common Areas of the Building is $ 7 , 200 , and that cost increased to $ 7 , 350 in Lease Year 2 , the
<br /> Tenant' s proportional share would be calculated using method (i) * 7 , 350 - 7 , 200 = $ 150 x 15 . 35 % _
<br /> $23 . 03 . If the property tax bill in Lease Year 1 for the Property is $ 52 , 300 and increased to $ 54 , 000 in
<br /> Lease Year 2 , the Tenant ' s proportional share of property taxes would be calculated using method (ii) .
<br /> 54 , 000 - 52 , 300 = 1 , 700 x 1 . 24 % _ $21 . 08 , The Tenant ' s Operating Expense Differential is the sum of the
<br /> Tenant ' s share of the expenses in excess of the prior year ' s Operating Expenses .
<br /> The Operating Expense Differential shall be calculated by subtracting the prior calendar year ' s
<br /> Operating Expenses from the current calendar year ' s Operating Expenses . Notwithstanding the
<br /> foregoing, should the Operating Expense Differential exceed $ 5 ,000 in any calendar year, Tenant ' s
<br /> share of the Operating Expense Differential shall be capped at $ 5 ,000 . 00 per year.
<br /> OCAC Lease Page 26
<br />
|