Common use of Estimated Operating Expenses Clause in Contracts

Estimated Operating Expenses. By April 1 of each year, Landlord shall send to Tenant a statement showing the Landlord’s estimated Operating Expenses for the then current year, and the Tenant’s share thereof, based upon its Proportionate Share. Tenant shall pay 1/12th of its Proportionate Share of the Operating Expenses with each monthly payment of Basic Rent during the year. The statement shall also show the actual Operating Expenses for the previous year, as compared to the amount of Operating Expenses which Xxxxxxxx had previously estimated for the year. If the statement shows that Tenant paid more than its Proportionate Share of the actual Operating Expenses for the preceding year, then Tenant shall receive a credit against its lease payment(s) next due and owing, until the excess is eliminated. If the statement shows that Tenant paid less than its Proportionate Share of the actual Operating Expenses for the preceding year, then Tenant shall pay the shortfall amount within twenty (20) days of the date of the statement, as Additional Rent. Following its receipt of the statement, Tenant shall (if it is not in default) have the option of auditing and/or inspecting Landlord’s books and records relating to Operating Expenses, upon prior notice to Property Manager and during ordinary business hours at the office where such records are kept. Tenant must give such a notice no later than June 15 of the year, and complete its audit and/or inspection by no later than August 15 of the same year. In lieu of permitting such an audit, Landlord may provide Tenant with an audit prepared by an independent qualified CPA. If Xxxxxx’s audit shows the Landlord’s calculation of Operating Expenses to be in error by less than five percent (5%), Landlord will adjust the amount owing from Tenant by the appropriate amount, but Tenant shall pay the costs of the audit and/or investigation. If the error is five percent (5%) or more, Landlord will adjust the amount owing from Tenant by the appropriate amount, but Landlord shall pay the costs of the audit and/or investigation. The audit rights set forth herein shall not apply to subTenants.

Estimated Operating Expenses. By April 1 (a) To implement Tenant's obligation to pay the Operating Expenses, Tenant shall pay Landlord on or before the first day of each year, Landlord shall send to Tenant a statement showing calendar month during the Landlord’s Term one-twelfth (1/12) of the amount of the estimated Operating Expenses for the then current year, and Lease Year ("Estimated Operating Expenses") which shall not exceed the Tenant’s share thereof, based upon its Proportionate Share. Tenant shall pay 1/12th greater of its Proportionate Share (i) 104% of the actual Operating ------- Expenses with each monthly payment of Basic Rent during for the year. The statement shall also show immediately preceding Lease Year, or (ii) that amount determined by applying to the actual Operating Expenses for the previous year, as compared to immediately preceding Lease Year the amount of percentage increase in Operating between such immediately preceding Lease Year and the next preceding Lease Year. Landlord's good faith initial Estimated Operating Expenses which Xxxxxxxx had previously estimated for the yearfirst Lease Year is $8.00 per Rentable Square Foot. If Landlord shall deliver to Tenant no later than the statement shows Actual Substantial Completion Date its revised estimate of that figure, together with all back-up documentation. There shall be an annual reconciliation between what Tenant paid more than its Proportionate Share and what Tenant should have paid, and Landlord shall deliver to Tenant a certified statement reflecting such reconciliation with a reasonably detailed statement of the actual Operating Expenses for the preceding yearLease Year, then with appropriate back-up data (together, the "Reconciliation Statement"), within ninety (90) days following the end of each Lease Year. Any amount paid by Tenant shall receive a credit against its lease payment(s) next due and owing, until the excess is eliminated. If the statement shows that Tenant paid less than its Proportionate Share of which exceeds the actual Operating Expenses for due shall be refunded to Tenant simultaneous with the preceding yeardelivery to Tenant of the Reconciliation Statement. If Tenant has paid less than the correct amount due, then Tenant shall pay the shortfall amount balance within twenty thirty (2030) days of the date of the statement, as Additional Rent. Following its receipt of the statement, Tenant shall (if it is not in default) have the option of auditing and/or inspecting written notice from Landlord’s books . Landlord's and records relating Tenant's obligation to Operating Expenses, upon prior notice to Property Manager and during ordinary business hours at the office where such records are kept. Tenant must give such a notice no later than June 15 of the year, and complete its audit and/or inspection by no later than August 15 of the same year. In lieu of permitting such an audit, Landlord may provide Tenant with an audit prepared by an independent qualified CPA. If Xxxxxx’s audit shows the Landlord’s calculation of Operating Expenses to be in error by less than five percent (5%), Landlord will adjust the amount owing from Tenant by the appropriate amount, but Tenant shall pay the costs of the audit and/or investigation. If the error is five percent (5%) or more, Landlord will adjust the amount owing from Tenant by the appropriate amount, but Landlord shall pay the costs of the audit and/or investigation. The audit rights set forth herein shall not apply to subTenants.the

Estimated Operating Expenses. By April 1 of each year, Landlord shall send to Tenant a statement showing the Landlord’s estimated Operating Expenses for the then current year, and the Tenant’s share thereof, based upon its Proportionate Share. Tenant shall pay 1/12th of its Proportionate Share of the Operating Expenses with each monthly payment of Basic Rent during the year. The statement shall also show the actual Operating Expenses for the previous year, as compared to the amount of Operating Expenses which Xxxxxxxx Landlord had previously estimated for the year. If the statement shows that Tenant paid more than its Proportionate Share of the actual Operating Expenses for the preceding year, then Tenant shall receive a credit against its lease payment(s) next due and owing, until the excess is eliminated. If the statement shows that Tenant paid less than its Proportionate Share of the actual Operating Expenses for the preceding year, then Tenant shall pay the shortfall amount within twenty (20) days of the date of the statement, as Additional Rent. Following its receipt of the statement, Tenant shall (if it is not in default) have the option of auditing and/or inspecting Landlord’s books and records relating to Operating Expenses, upon prior notice to Property Manager and during ordinary business hours at the office where such records are kept. Tenant must give such a notice no later than June 15 of the year, and complete its audit and/or inspection by no later than August 15 of the same year. In lieu of permitting such an audit, Landlord may provide Tenant with an audit prepared by an independent qualified CPA. If XxxxxxTenant’s audit shows the Landlord’s calculation of Operating Expenses to be in error by less than five percent (5%), Landlord will adjust the amount owing from Tenant by the appropriate amount, but Tenant shall pay the costs of the audit and/or investigation. If the error is five percent (5%) or more, Landlord will adjust the amount owing from Tenant by the appropriate amount, but Landlord shall pay the costs of the audit and/or investigation. The audit rights set forth herein shall not apply to subTenants.