Common use of OPERATING COSTS BUDGET Clause in Contracts

OPERATING COSTS BUDGET. Additional Rent shall be paid by Tenant to Landlord in accordance with this section. Prior to the Commencement Date, Landlord shall provide to Tenant an estimate of the total projected Operating Costs and Tenant’s Pro Rata Share thereof for the balance of the calendar year in which the Commencement Date occurs (estimated as of the date hereof to be $5.70 per rentable square foot). For each calendar year thereafter, Landlord shall deliver to Tenant not later than 30 days prior to the first day of each such calendar year, or as soon thereafter as is reasonably practicable, an estimate of the total projected Operating Costs and Tenant’s Pro Rata Share thereof for that calendar year. Tenant shall pay in advance on or before the first day of each calendar month during the Term at the time and in the manner of payment for the Base Rent described above, Tenant’s Pro Rata Share of such projected Operating Costs in equal monthly installments. Following the end of each calendar year but no later than 150 days after such calendar year (after which time, Landlord shall be deemed to have waived its right to recover additional actual Operating Costs due), Landlord shall prepare an accounting of the actual Operating Costs incurred for that year and shall deliver that accounting to Tenant. For purposes of reconciling the projected Operating Costs actually paid by Tenant versus the actual Operating Costs incurred by Landlord for each year which relate to the Leased Premises, if Tenant’s Pro Rata Share of such actual costs exceeds the amount paid by Tenant for Additional Rent pursuant to this section (the “Deficiency”), Tenant shall pay to Landlord the Deficiency within 30 days after notice from Landlord to Tenant detailing an accounting of the Deficiency and requesting payment of the Deficiency. In the event the amounts actually paid by Tenant for Additional Rent exceeds Tenant’s Pro Rata Share of such actual Operating Costs incurred by Landlord for that year which relate to the Leased Premises (the “Excess”), Landlord shall pay to Tenant the Excess within 30 days after completing such accounting. In no event shall either party be required to pay any interest on any over-payment or under-payment made under this section. Landlord’s and Tenant’s obligations under this section shall survive the expiration or termination of this lease. Tenant shall have the right to audit Landlord’s books and records relating to Landlord’s calculation of such Operating Costs for the prior year for a period of 150 days following Landlord’s determination of the Operating Costs for such year. In the event that such audit reveals that any Additional Rent and/or Operating Costs have been overbilled or overstated to Tenant by more than 6%, and Landlord confirms and agrees to the overcharge, acting in good faith and under commercially reasonable business and auditing practices, in addition to providing Tenant with a refund of such amounts, Landlord shall reimburse Tenant for its actual out-of-pocket expenses in connection with such audit, up to a maximum of $5,000 per occurrence.

OPERATING COSTS BUDGET. Additional Rent shall be paid by Tenant to Landlord in accordance with this section. Prior to the Commencement Date, Landlord shall provide to Tenant an estimate of the total projected Operating Costs and Tenant’s Pro Rata Share thereof for the balance of the calendar year in which the Commencement Date occurs (estimated as of the date hereof to be $5.70 per rentable square foot)occurs. For each calendar year thereafter, Landlord shall deliver to Tenant not later than 30 days prior to as soon as reasonably practical on or after the first (1st) day of each such calendar year, or as soon thereafter as is reasonably practicable, an estimate of the total projected Operating Costs and Tenant’s Pro Rata Share thereof for that Initial---Landlord: _____ Tenant: _____ calendar year. Tenant shall pay in advance on or before the first (1st) day of each calendar month during the Term of this Lease, and any extensions or renewals thereof, whether by operation of law or otherwise, at the time and in the manner of payment for the Base Rent described in Section 2 above, Tenant’s its Pro Rata Share of such projected Operating Costs in equal monthly installments. Following Within 120 days after the end of each calendar year but no later than 150 days after such year, Landlord shall furnish to Tenant a statement of the amount of Tenant’s Pro Rata Share of the Operating Costs actually incurred during the previous calendar year (after which time, Landlord shall be deemed to have waived its right to recover additional actual the “Annual Operating Costs dueStatement”), Landlord shall prepare an accounting of the actual Operating Costs incurred for that year and shall deliver that accounting to Tenant. For purposes of reconciling the projected Operating Costs actually paid by Tenant versus the actual Operating Costs incurred by Landlord for each year which relate to the Leased Premises, if Tenant’s Pro Rata Share of such actual costs exceeds the amount paid by Tenant for Additional Rent pursuant to this section (the “Deficiency”), Tenant shall pay to Landlord the Deficiency within 30 ten (10) days after notice from Landlord to Tenant detailing an accounting of the Deficiency and requesting payment of the Deficiency. In the event the amounts actually paid by Tenant for Additional Rent exceeds Tenant’s Pro Rata Share of such actual Operating Costs incurred by Landlord for that year year, which relate to the Leased Premises (the “Excess”), Landlord shall pay to Tenant the Excess within 30 days after completing such accountingthe first quarter of the calendar year following the yearly reconciliation. In no event shall either party be required to pay any interest on any over-payment or under-payment made under this section. Landlord’s and Tenant’s obligations under this section shall survive the expiration or termination of this lease. The Tenant shall have the right to audit request that the Landlord make available for Tenant’s inspection at Landlord’s books and office, during normal business hours, all records relating to Landlord’s calculation of such Operating Costs for the prior year for a period of 150 sixty (60) days following LandlordTenant’s determination receipt of the Annual Operating Costs Statement. Other than for this period of sixty (60) days, Tenant shall have no right to request and Landlord shall have no obligation to furnish records relating to the Operating Costs or any other charge set forth herein. Tenant shall pay to Landlord a charge of $500.00 for such year. In the event that each such audit reveals that any Additional Rent and/or Operating Costs have been overbilled or overstated in order to Tenant by more than 6%, reimburse Landlord for its time and Landlord confirms expense in compiling and agrees copying records relating to the overcharge, acting in good faith and under commercially reasonable business and auditing practices, in addition to providing Tenant with a refund of such amounts, Landlord shall reimburse Tenant for its actual out-of-pocket expenses in connection with such audit, up to a maximum of $5,000 per occurrenceOperating Costs.

OPERATING COSTS BUDGET. Additional Rent shall be paid by Tenant Lessee to Landlord Lessor in accordance with this sectionSection. Prior to the Commencement Date, Landlord Lessor shall provide to Tenant Lessee an estimate of the total projected Operating Costs and Tenant’s Lessee's Pro Rata Share thereof for the Building and Real Property for the balance of the calendar year in which the Commencement Date occurs (estimated as of the date hereof to be $5.70 per rentable square foot)occurs. For each calendar year thereafter, Landlord Lessor shall deliver to Tenant Lessee not later than 30 days prior to the first day of each such calendar year, or as soon thereafter as is reasonably practicable, year an estimate of the total projected Operating Costs and Tenant’s Lessee's Pro Rata Share thereof for the Building and Real Property for that calendar year. Tenant Lessee shall pay in advance on or before the first day of each calendar month during the Term term at the time and in the manner of payment for the Base Rent described above, Tenant’s its Pro Rata Share of such projected Operating Costs in equal monthly installments. Following Within 90 days following the end of each calendar year but no later than 150 days after such calendar year (after which timeyear, Landlord shall be deemed to have waived its right to recover additional actual Operating Costs due), Landlord Lessor shall prepare an accounting of the actual Operating Costs so incurred for that year and shall deliver that accounting to TenantLessee. Lessee may, upon reasonable notice to Lessor and during normal business hours, review the books and records of Lessor for the purpose of reviewing such Operating Costs. For purposes of reconciling the projected Operating Costs actually paid by Tenant Lessee versus the actual Operating Costs incurred by Landlord Lessor for each year which relate related to the Leased Premises, if Tenant’s Lessee's Pro Rata Share of such actual costs exceeds the amount paid by Tenant Lessee for Additional Rent pursuant to this section Section (the “"Deficiency”"), Tenant Lessee shall pay to Landlord Lessor the Deficiency within 30 days after notice from Landlord Lessor to Tenant Lessee detailing an accounting of the Deficiency and requesting payment of the Deficiency. In the event the amounts actually paid by Tenant Lessee for Additional Rent exceeds Tenant’s Lessee's Pro Rata Share of such actual Operating Costs incurred by Landlord Lessor for that year which relate to the Leased Premises (the “"Excess”"), Landlord Lessor shall pay to Tenant Lessee the Excess within 30 days after completing such accounting. In no event shall either party be required to pay any interest on any over-payment or under-payment made under this sectionSection. Landlord’s Lessor's and Tenant’s Lessee's obligations under this section Section shall survive the expiration or termination of this lease. Tenant shall have the right to audit Landlord’s books and records relating to Landlord’s calculation of such Operating Costs for the prior year for a period of 150 days following Landlord’s determination of the Operating Costs for such year. In the event that such audit reveals that any Additional Rent and/or Operating Costs have been overbilled or overstated to Tenant by more than 6%, and Landlord confirms and agrees to the overcharge, acting in good faith and under commercially reasonable business and auditing practices, in addition to providing Tenant with a refund of such amounts, Landlord shall reimburse Tenant for its actual out-of-pocket expenses in connection with such audit, up to a maximum of $5,000 per occurrenceLease.