Common use of Tenant’s Share of Expenses Clause in Contracts

Tenant’s Share of Expenses. (a) In addition to the payment of annual minimum rent as provided herein, Tenant shall pay as additional rent hereunder its proportionate share (as defined in subparagraph 4(c)) of all Expenses as herein defined. Expenses shall include all real estate taxes assessed against the Building, janitorial services (if any) provided to Tenant, insurance premiums (other than Tenant’s liability insurance) on the Building, water and sewer costs of the Building as metered, trash removal costs pertaining to the Building, repair and maintenance of HVAC equipment relating to Premises, grass cutting and landscape bed maintenance of the area delineated on plan as Exhibit “A”, snow removal and parking lot repair, maintenance, repaving, cleaning and striping of the same defined area on Exhibit “A”, parking lot electric as determined by the “house meter” on the Building, and all other costs and Expenses incurred by Landlord in operating and maintaining the Building. Expenses shall also include expenses imposed or assessed against the Building and its owner(s) by The Owner’s Association of Wyomissing Professional Center, West Campus, Inc. consisting of costs of maintaining and repairing the main roadway through the Land. The Expenses shall be pre-paid on a monthly basis during each calendar year of the term of this Lease as provided herein. Attached hereto as Exhibit “B” and made a part hereof is the current budget estimate and operating expense description for the operation of the Building and the Land. All items on the budget shall be included as Expenses, but other Expenses may be incurred from time to time. (b) For purposes hereof, “Expenses” shall not include: (i) Costs for which Landlord is reimbursed or indemnified (either by an insurer, condemnor, tenant, warrantor or otherwise) or, in the event Landlord fails to properly insure the Building, then Expenses shall not include expenses for which Landlord would have been reimbursed if Landlord had adequately insured the Building. (ii) Expenses incurred in leasing or procuring tenants (including lease commissions, advertising expenses, management and leasing offices, lease negotiation and review, expenses of renovating space for tenants, and legal expenses incurred in enforcing the terms of any tenant leases). (iii) Interest or amortization payments on any mortgages. (iv) Costs representing an amount paid to an affiliate of Landlord which is in excess of the amount which would have been paid in the absence of such relationship. (v) Costs specially billed to and paid by specific tenants, including without limitation, expenses for work performed for other tenants in the Building and expenses to be billed to other tenants for excess utility use or other services that are beyond normal office use. There shall be no duplication of costs or reimbursement. (vi) Depreciation and costs incurred by Landlord for alterations that are considered capital improvements and replacements under generally accepted accounting principles consistently applied except that the annual amortization of these costs shall be included in the following two instances: (A) The annual amortization over its useful life (not to be less than ten (10) years) with a reasonable salvage value on a straight line basis of the cost of any improvement made by Landlord and required by any changes in applicable laws, rules, or regulations of any governmental authority enacted after the Building was fully assessed as a completed and occupied unit and the Lease was signed. (B) The annual amortization over its useful life (not to be less than ten (10) years) with a reasonable salvage value on a straight line basis of the cost of any equipment or capital improvements made by Landlord after the Building was fully assessed as a completed and occupied unit and the Lease was signed, as a labor-saving measure or to accomplish other savings in operating, repairing, managing, or maintaining of the Building or Land, but only to the extent of the savings realized. (vii) Salaries other than salary for a building manager. (viii) Landlord’s personal property and Landlord’s own occupancy costs, if any, in the Building. (c) The portion of Expenses which are applicable to the Premises (the “Premises Expenses”) shall be determined by multiplying the Expenses by a fraction, the numerator of which is the rentable floor area of the Premises (presently assumed to be 2,120 square feet), and the denominator of which is the aggregate number of rentable floor area in the Building (presently assumed to be 21,100 square feet), unless a direct billing relating to a cost of operating the Premises not the entire Building occurs, such as with janitorial or HVAC repair and maintenance, where Tenant would have responsibility for the entire amount. (d) During the first lease year of the term of this Lease, the Premises Expenses shall be an amount not greater than $3.25 per square foot of rentable floor area of the Premises, which shall equal Six Thousand Eight Hundred Ninety Dollars ($6,890) annually, and Five Hundred Seventy Four Dollars and Sixteen Cents ($574.16) monthly. After the first year of the term of this Lease Tenant shall pay actual Premises Expenses as defined above in 4(a), 4(b) and 4(c). (e) Tenant shall pay Landlord monthly, in advance, on the first day of each calendar month during the term of this Lease, and pro rata for the fraction of any month, the sum estimated by Landlord to be one-twelfth (1/12th) of Tenant’s share of all Premises Expenses. If at any time and from time to time it is determined by Landlord that Tenant’s estimated payments will be insufficient to pay Tenant’s share of such Premises Expenses, the Landlord shall have the right to adjust the amount of Tenant’s estimated payments upon thirty (30) days prior written notice, and Tenant agrees to thereafter pay the adjusted estimated payment on a monthly basis. (f) Within ninety (90) days after the end of each calendar year, Landlord shall deliver to Tenant (i) a written itemization of Expenses for the prior Lease year and (ii) an estimate of the then current Lease year’s Expenses and Tenant’s share of the Premises Expenses. An adjustment shall be made between the aggregate total of Tenant’s share of estimated Premises Expenses actually paid by Tenant during the prior Lease year, and Tenant’s share of Premises Expenses actually incurred during the prior Lease year, so that Landlord shall reimburse Tenant for any excess paid by Tenant, and Tenant shall pay any deficiency to Landlord within ten (10) days of demand. If Tenant disagrees with the accuracy of the Expenses as set forth in Landlord’s itemization statement, Tenant shall give written notice to Landlord to that effect, but shall nevertheless make payment in accordance with the terms of this Paragraph. (g) Landlord shall permit Tenant to inspect its records with respect to the Expenses at a mutually convenient time and place. Any information obtained by Tenant pursuant to the provisions of this Paragraph shall be treated as confidential, except in any litigation between the parties. (h) If due to a change in the laws presently governing taxation, any franchise tax or tax on income, profit, rentals or occupancies from or of the Premises shall be levied or imposed against the Landlord in lieu of any tax or assessment that would otherwise constitute a real estate tax, such franchise, income, profit tax or tax on rentals shall be deemed to be a real estate tax and included as part of the Expenses.

Tenant’s Share of Expenses. (a) In addition to the payment of annual minimum rent as provided herein, Tenant shall pay as additional rent hereunder its proportionate share (as defined in subparagraph 4(c)) of all Expenses as herein defined. Expenses shall include all real estate taxes assessed against the Building, janitorial services (if any) provided to Tenant, insurance premiums (other than Tenant’s liability insurance) on the Building, water and sewer costs of the Building as metered, trash removal costs pertaining to the Building, repair and maintenance of HVAC equipment relating to Premises, grass cutting and landscape bed maintenance of the area delineated on plan as Exhibit “A”, snow removal and parking lot repair, maintenance, repaving, cleaning and striping of the same defined area on Exhibit “A”, parking lot electric as determined by the “house meter” on the Building, and all other costs and Expenses incurred by Landlord in operating and maintaining the Building. Expenses shall also include expenses imposed or assessed against the Building and its owner(s) by The Owner’s Association of Wyomissing Professional Center, West Campus, Inc. consisting of costs of maintaining and repairing the main roadway through the Land. The Expenses shall be pre-paid on a monthly basis during each calendar year of the term of this Lease as provided herein. Attached hereto as Exhibit “B” and made a part hereof is the current budget estimate and operating expense description for the operation of the Building and the Land. All items on the budget shall be included as Expenses, but other Expenses may be incurred from time to time. (b) For purposes hereof, “Expenses” shall not include: (i) Costs for which Landlord is reimbursed or indemnified (either by an insurer, condemnor, tenant, warrantor or otherwise) or, in the event Landlord fails to properly insure the Building, then Expenses shall not include expenses for which Landlord would have been reimbursed if Landlord had adequately insured the Building. (ii) Expenses incurred in leasing or procuring tenants (including lease commissions, advertising expenses, management and leasing offices, lease negotiation and review, expenses of renovating space for tenants, and legal expenses incurred in enforcing the terms of any tenant leases). (iii) Interest or amortization payments on any mortgages. (iv) Costs representing an amount paid to an affiliate of Landlord which is in excess of the amount which would have been paid in the absence of such relationship. (v) Costs specially billed to and paid by specific tenants, including without limitation, expenses for work performed for other tenants in the Building and expenses to be billed to other tenants for excess utility use or other services that are beyond normal office use. There shall be no duplication of costs or reimbursement. (vi) Depreciation and costs incurred by Landlord for alterations that are considered capital improvements and replacements under generally accepted accounting principles consistently applied except that the annual amortization of these costs shall be included in the following two instances: (A) The annual amortization over its useful life (not to be less than ten (10) years) with a reasonable salvage value on a straight line basis of the cost of any improvement made by Landlord and required by any changes in applicable laws, rules, or regulations of any governmental authority enacted after the Building was fully assessed as a completed and occupied unit and the Lease was signed. (B) The annual amortization over its useful life (not to be less than ten (10) years) with a reasonable salvage value on a straight line basis of the cost of any equipment or capital improvements made by Landlord after the Building was fully assessed as a completed and occupied unit and the Lease was signed, as a labor-saving measure or to accomplish other savings in operating, repairing, managing, or maintaining of the Building or Land, but only to the extent of the savings realized. (vii) Salaries other than salary for a building manager. (viii) Landlord’s personal property and LandlordXxxxxxxx’s own occupancy costs, if any, in the Building. (c) The portion of Expenses which are applicable to the Premises (the “Premises Expenses”) shall be determined by multiplying the Expenses by a fraction, the numerator of which is the rentable floor area of the Premises (presently assumed to be 2,120 square feet), and the denominator of which is the aggregate number of rentable floor area in the Building (presently assumed to be 21,100 square feet), unless a direct billing relating to a cost of operating the Premises not the entire Building occurs, such as with janitorial or HVAC repair and maintenance, where Tenant would have responsibility for the entire amount. (d) During the first lease year of the term of this Lease, the Premises Expenses shall be an amount not greater than $3.25 per square foot of rentable floor area of the Premises, which shall equal Six Thousand Eight Hundred Ninety Dollars ($6,890) annually, and Five Hundred Seventy Four Dollars and Sixteen Cents ($574.16) monthly. After the first year of the term of this Lease Tenant shall pay actual Premises Expenses as defined above in 4(a), 4(b) and 4(c). (e) Tenant shall pay Landlord monthly, in advance, on the first day of each calendar month during the term of this Lease, and pro rata for the fraction of any month, the sum estimated by Landlord to be one-twelfth (1/12th) of Tenant’s share of all Premises Expenses. If at any time and from time to time it is determined by Landlord that TenantXxxxxx’s estimated payments will be insufficient to pay Tenant’s share of such Premises Expenses, the Landlord shall have the right to adjust the amount of Tenant’s estimated payments upon thirty (30) days prior written notice, and Tenant Xxxxxx agrees to thereafter pay the adjusted estimated payment on a monthly basis. (f) Within ninety (90) days after the end of each calendar year, Landlord shall deliver to Tenant (i) a written itemization of Expenses for the prior Lease year and (ii) an estimate of the then current Lease year’s Expenses and Tenant’s share of the Premises Expenses. An adjustment shall be made between the aggregate total of Tenant’s share of estimated Premises Expenses actually paid by Tenant Xxxxxx during the prior Lease year, and TenantXxxxxx’s share of Premises Expenses actually incurred during the prior Lease year, so that Landlord shall reimburse Tenant for any excess paid by TenantXxxxxx, and Tenant shall pay any deficiency to Landlord within ten (10) days of demand. If Tenant disagrees with the accuracy of the Expenses as set forth in Landlord’s itemization statement, Tenant shall give written notice to Landlord to that effect, but shall nevertheless make payment in accordance with the terms of this Paragraph. (g) Landlord shall permit Tenant to inspect its records with respect to the Expenses at a mutually convenient time and place. Any information obtained by Tenant pursuant to the provisions of this Paragraph shall be treated as confidential, except in any litigation between the parties. (h) If due to a change in the laws presently governing taxation, any franchise tax or tax on income, profit, rentals or occupancies from or of the Premises shall be levied or imposed against the Landlord in lieu of any tax or assessment that would otherwise constitute a real estate tax, such franchise, income, profit tax or tax on rentals shall be deemed to be a real estate tax and included as part of the Expenses.

Tenant’s Share of Expenses. (a) In addition to the payment of annual minimum rent as provided hereinBase Rent and the other amounts payable by Tenant under this Lease, Tenant shall pay as additional rent hereunder Landlord an amount equal to Tenant’s share of the Operating Expenses during any calendar year in excess of the Base Year’s Operating Expense (“Tenant’s Cost Allocation”). (As an example, if Tenant’s Base Year Operating Expenses are $6.35 per rentable foot and the next year expenses run $6.45 per rentable foot, Tenant will be billed $.10 per rentable foot for its proportionate share of expenses. ) For any calendar year, Landlord may, at its option, either: (as defined i) maintain a single set of books for the Project, in subparagraph 4(c)which case the Operating Expenses related to the Project shall be aggregated; or (ii) maintain a separate set of all Expenses as herein defined. Expenses shall include all real estate taxes assessed against books for the Building, janitorial services (if any) provided in which case Landlord shall separate the Operating Expenses related to Tenantthe Building from the Operating Expenses related to the other buildings forming a part of the Project. If Landlord maintains a single set of books for the Project during any calendar year, insurance premiums (other than then Tenant’s liability insuranceCost Allocation for such year shall be the product obtained by multiplying: (i) on the Operating Expenses related to the entire Project for such calendar year in excess of the Base Year’s Operating Expenses for the entire Project, by (ii) a fraction whose numerator is the rentable area of the Premises and whose denominator is the total rentable area of the buildings forming a part of the Project. If Landlord maintains a separate set of books for the Building during any calendar year, then Tenant’s Cost Allocation for such year shall be an amount equal to the product obtained by multiplying (i) the Operating Expenses related to the Building for such calendar year in excess of the Base Year’s Operating Expenses for the Building, water and sewer costs by (ii) a fraction whose numerator is the rentable area of the Premises and whose denominator is the total rentable area of Building. In the event Landlord maintains a separate set of books for the Building as meteredduring any calendar year, trash removal costs pertaining Landlord may allocate a portion of the Operating Expenses related to the Building, repair and maintenance of HVAC equipment relating Common Areas to Premises, grass cutting and landscape bed maintenance of the area delineated on plan as Exhibit “A”, snow removal and parking lot repair, maintenance, repaving, cleaning and striping of the same defined area on Exhibit “A”, parking lot electric as determined by the “house meter” on the Building, and all other costs and Expenses incurred by Landlord in operating and maintaining the Building. Expenses shall also include expenses imposed or assessed against the Building and include such amount in the Building’s Operating Expenses when calculating Tenant’s Cost Allocation. Operating Expenses related to the Common Areas may be allocated to the Building based on the percentage of the Project’s rentable area located within the Building or utilizing such other method as Landlord deems appropriate, in its owner(s) by The Ownerreasonable judgment. If Landlord maintains a single set of books for the entire Project during the Base Year, then the Base Year’s Association of Wyomissing Professional Center, West Campus, Inc. consisting of costs of maintaining and repairing Operating Expenses for the main roadway through the Land. The Expenses Building shall be pre-paid on an amount equal to the product obtained by multiplying the Base Year’s Operating Expenses for the Project by a monthly basis during each calendar year of the term of this Lease as provided herein. Attached hereto as Exhibit “B” and made a part hereof fraction whose numerator is the current budget estimate and operating expense description for the operation rentable area of the Building and whose denominator is the Landtotal rentable area of all the buildings forming a part of the Project. All items Landlord will provide a 6% annual cap on the budget shall Controllable Expenses increases that can be included passed on to Tenant as Expenses, but other Expenses may be incurred from time to timea part of Tenant’s Cost Allocation. (b) For purposes hereof, “Expenses” shall not include: (i) Costs for which Landlord is reimbursed or indemnified (either by an insurer, condemnor, tenant, warrantor or otherwise) or, in the event Landlord fails to properly insure the Building, then Expenses shall not include expenses for which Landlord would have been reimbursed if Landlord had adequately insured the Building. (ii) Expenses incurred in leasing or procuring tenants (including lease commissions, advertising expenses, management and leasing offices, lease negotiation and review, expenses of renovating space for tenants, and legal expenses incurred in enforcing the terms of any tenant leases). (iii) Interest or amortization payments on any mortgages. (iv) Costs representing an amount paid to an affiliate of Landlord which is in excess of the amount which would have been paid in the absence of such relationship. (v) Costs specially billed to and paid by specific tenants, including without limitation, expenses for work performed for other tenants in the Building and expenses to be billed to other tenants for excess utility use or other services that are beyond normal office use. There shall be no duplication of costs or reimbursement. (vi) Depreciation and costs incurred by Landlord for alterations that are considered capital improvements and replacements under generally accepted accounting principles consistently applied except that the annual amortization of these costs shall be included in the following two instances: (A) The annual amortization over its useful life (not to be less than ten (10) years) with a reasonable salvage value on a straight line basis of the cost of any improvement made by Landlord and required by any changes in applicable laws, rules, or regulations of any governmental authority enacted after the Building was fully assessed as a completed and occupied unit and the Lease was signed. (B) The annual amortization over its useful life (not to be less than ten (10) years) with a reasonable salvage value on a straight line basis of the cost of any equipment or capital improvements made by Landlord after the Building was fully assessed as a completed and occupied unit and the Lease was signed, as a labor-saving measure or to accomplish other savings in operating, repairing, managing, or maintaining of the Building or Land, but only to the extent of the savings realized. (vii) Salaries other than salary for a building manager. (viii) Landlord’s personal property and Landlord’s own occupancy costs, if any, in the Building. (c) The portion of Expenses which are applicable to the Premises (the “Premises Expenses”) shall be determined by multiplying the Expenses by a fraction, the numerator of which is the rentable floor area of the Premises (presently assumed to be 2,120 square feet), and the denominator of which is the aggregate number of rentable floor area in the Building (presently assumed to be 21,100 square feet), unless a direct billing relating to a cost of operating the Premises not the entire Building occurs, such as with janitorial or HVAC repair and maintenance, where Tenant would have responsibility for the entire amount. (d) During the first lease year of the term of this Lease, the Premises Expenses shall be an amount not greater than $3.25 per square foot of rentable floor area of the Premises, which shall equal Six Thousand Eight Hundred Ninety Dollars ($6,890) annually, and Five Hundred Seventy Four Dollars and Sixteen Cents ($574.16) monthly. After the first year of the term of this Lease Tenant shall pay actual Premises Expenses as defined above in 4(a), 4(b) and 4(c). (e) Tenant shall pay Landlord monthly, in advance, on the first day of each calendar month during the term of this Lease, and pro rata for the fraction of any month, the sum estimated by Landlord to be one-twelfth (1/12th) of Landlord’s reasonable estimate of Tenant’s share Cost Allocation for each calendar year after the Base Year (the “Estimated Payments”) on or before the first (1st) day of all Premises Expenseseach month during such calendar year. If at any time and from time it appears to time it is determined by Landlord that Tenant’s estimated payments Cost Allocation for the current calendar year will be insufficient to pay Tenantvary from Landlord’s share initial estimate of such Premises Expensesthe same, the Landlord shall have the right to adjust revise the Estimated Payments for such calendar year, and subsequent Estimated Payments by Tenant for such calendar year shall be based upon Landlord’s revised estimate of Tenant’s Cost Allocation. Following the end of each calendar year within the Term, Landlord shall furnish Tenant with a final statement (the “Expense Statement”) showing the calculation of Tenant’s Cost Allocation for such calendar year. If the Estimated Payments made by Tenant are not sufficient to cover the actual amount of Tenant’s estimated payments upon Cost Allocation for any calendar year, then Tenant shall pay Landlord the deficiency within thirty (30) days prior written noticeafter Tenant’s receipt of the Expense Statement for such calendar year. If the Estimated Payments made by Tenant exceed the actual amount of Tenant’s Cost Allocation for any calendar year, then the excess shall be credited against future amounts Tenant owes under this section; provided any such excess existing at the end of the Term shall be refunded to Tenant once all of Tenant’s obligations and liabilities under this Lease are satisfied. If Tenant agrees to thereafter pay does not dispute any item or items included in the adjusted estimated payment on a monthly basis. calculation of the Tenant’s Cost Allocation for any calendar year within thirty (f) Within ninety (9030) days after the end of each calendar year, Landlord shall deliver to Tenant (i) a written itemization of Expenses for the prior Lease year and (ii) an estimate Tenant’s receipt of the then current Lease year’s Expenses and Tenant’s share of the Premises Expenses. An adjustment shall be made between the aggregate total of Tenant’s share of estimated Premises Expenses actually paid by Tenant during the prior Lease year, and Tenant’s share of Premises Expenses actually incurred during the prior Lease year, so that Landlord shall reimburse Tenant Expense Statement for any excess paid by Tenant, and Tenant shall pay any deficiency such calendar year was delivered to Landlord within ten (10) days of demand. If Tenant disagrees with the accuracy of the Expenses as set forth in Landlord’s itemization statementit, Tenant shall give written notice to Landlord to that effect, but shall nevertheless make payment in accordance with the terms of this Paragraph. (g) Landlord shall permit Tenant to inspect its records with respect to the Expenses at a mutually convenient time and place. Any information obtained by Tenant pursuant to the provisions of this Paragraph shall be treated as confidential, except in any litigation between the parties. (h) If due to a change in the laws presently governing taxation, any franchise tax or tax on income, profit, rentals or occupancies from or of the Premises shall be levied or imposed against the Landlord in lieu of any tax or assessment that would otherwise constitute a real estate tax, such franchise, income, profit tax or tax on rentals shall be deemed to have approved such statement and shall have no right to contest the same. Tenant shall not employ any person or entity to inspect and audit any Expense Statement (and the records related thereto) whose compensation is based, in whole or in part, on the results of such inspection and audit. Tenant’s Cost Allocation shall be a real estate tax and included as part of prorated for any partial month falling within the ExpensesTerm.