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3.4 Late Charges and Penalties for Failure to Payor Report. If Tenant shall fail
to pay, within ten (10) days of the due date, any rent or other amounts or
charges required to be paid to Landlord hereunder, Landlord may, at its option,
assess a penalty to Tenant equal to one percent (l %) of the rent, amount, or
charge not timely paid for each day that the rent or other amount or charge is
late, up to five percent (5%) of each said delinquent payment. 3.5 Returned
Checks. If any check or bank draft tendered by Tenant to Landlord shall be
returned by a bank for, insufficient funds, Landlord may assess a penalty in the
amount of $25.00 for each such check against the Tenant. Such penalty shall be
deemed to be additional rent and subject to all conditions hereof relating to
the payment or nonpayment of rent. If two or more such checks or drafts of the
Tenant are so returned, then all rent and other amounts and charges to be paid
to Landlord by Tenant as provided in this Lease, shall thereafter be paid to the
Landlord by cashiers or certified check. ARTICLE 4: ADDITIONAL EXPENSES AND
CHARGES 4.1 Common Area Maintenance. Landlord agrees to pay each year the common
area maintenance expenses of the Space, the common area expenses to include,
without limitation, the operating, managing, equipping, lighting, repairing,
replacing, and maintaining of the Common Areas, specifically including
landscaping and gardening, the maintenance, repairing and replacing of the
parking lot, line painting, lighting, traffic control, if any, sanitary control,
removal of snow, trash, rubbish and garbage, the cost of personnel to implement
such services and to direct parking and to police the Common Areas, depreciation
of heating, ventilating and air conditioning equipment for the Common Areas and
the Retail Space roof and two percent (2%) of all the foregoing costs to cover
the administrative costs relative to the operation of the said Common Areas.
Within 30 (45) days after the end of each quarter, Landlord shall supply Tenant
with a statement covering with supporting documentation, all costs and
expenditures as enumerated in this paragraph. Tenant shall then pay Landlord its
pro rata share of such expenses based on the ratio the square footage of
Tenant's Premises bears to the square footage of all space in the Retail Space,
such share to be paid within thirty (30) days after Tenant's receipt of a
statement from Landlord. 4.2 Taxes. Landlord agrees to pay each year the annual
taxes due for the land and improvements constituting the Retail Space with the
Tenant to pay Landlord its pro rata share of such taxes based on the ratio the
square footage of its Premises bears to the square footage of all space in the
Retail Space. As soon as the share due from the Tenant has been ascertained,
Landlord shall notify Tenant in writing of such determination and said sum shall
be paid within thirty (30) days after written notice from Landlord. In the event
any tax shall be assessed upon rent by any governmental authority, said tax
shall be paid by Tenant as additional rent, in the same proportion as herein
before provided. In the event the method of taxation applicable to rental
property shall be modified, a modification agreement with respect to this
paragraph shall be executed by Landlord and Tenant to equitably apply to said
revised tax system. Tenant shall not be responsible for any of Landlord's
franchise or excise taxes. 4

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