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f
<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 /> ivided by the commercial rentable square footage of the Building as
<br /> initially 6 , 000 RSF, d
<br /> defined in paragraph 1 (d) , as then configured, initially 19 , 346 RSF . Thus, the quotient is
<br /> ill be used to calculate Tenant ' s Proportionate Share of
<br /> initially 31 % . That percentage w
<br /> expenses including, but not limited to janitorial, electrical repair, flooring maintenance ,
<br /> HVAC repair, interior repairs , locks or door repair, property management fees , materials
<br /> and supplies , painting, pest control, plumbing repair, fees , security services , signs,
<br /> utilities, and window repair necessary for the operation of the Building .
<br /> The rentable square footage of the Demised Premises as then configured,
<br /> ivided by the commercial rentable square footage of the buildings
<br /> initially 6 , 000 RSF , d
<br /> on the Property as defined in paragraph 1 (f) , as then configured , initially 238 , 749 RSF .
<br /> Thus , the quotient is initially 2 . 51 % . 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 (1) : 7 , 350 - 7 ,200 = $ 150 x 3 1 % _ $46 . 50 .
<br /> If the property tax bill in Lease Year 1 for the Property is $ 52 , 300 and increased to $ 54 , 000 in Lease Year
<br /> 2 , the Tenant ' s proportional share of property taxes would be calculated using method (ii) : 5000 - 52 , 300
<br /> = 1 , 700 x 2 . 51 % _ $42 . 67 . The Tenant ' s Operating Expense Differential is the sum of the Tenant ' s share
<br /> 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 $ 10 ,000 in any calendar year, Tenant' s
<br /> share of the Operating Expense Differential shall be capped at $ 10 ,000 . 00 per year.
<br /> i
<br /> OCAC Lease Page 25
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