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<br /> 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, HVAC 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
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