WITH THE OWNERSHIP, LEASING, OR
OPERATION OF THE PROPERTY, OR OF THE PERSONAL PROPERTY AND EQUIPMENT LOCATED
THEREIN OR USED IN CONNECTION THEREWITH; AND (II) ANY REASONABLE EXPENSES
INCURRED BY LANDLORD IN CONTESTING SUCH TAXES OR ASSESSMENTS AND/OR THE ASSESSED
VALUE OF THE PROPERTY.
TAXES SHALL NOT INCLUDE ANY INTEREST, FINE OR PENALTY
FOR LATE PAYMENT OR NONPAYMENT FROM LANDLORD OF ANY TAXES.
FOR PURPOSES HEREOF,
TAXES FOR ANY YEAR SHALL BE TAXES THAT ARE DUE FOR PAYMENT OR PAID IN THAT YEAR
RATHER THAN TAXES THAT ARE ASSESSED, BECOME A LIEN, OR ACCRUE DURING SUCH YEAR.
LANDLORD SHALL BE DEEMED TO HAVE ELECTED TO PAY ANY SPECIAL ASSESSMENT BY
INSTALLMENTS OVER THE LONGEST PERIOD PERMITTED BY THE APPLICABLE TAXING
AUTHORITY, , AND IN SUCH EVENT TAXES SHALL INCLUDE SUCH INSTALLMENTS AND
INTEREST PAID TO THE MUNICIPALITY OR TAXING AUTHORITY ON THE UNPAID BALANCE OF
THE ASSESSMENT.
TAXES THAT ARE BEING CONTESTED BY LANDLORD SHALL NEVERTHELESS
BE INCLUDED FOR PURPOSES OF THE COMPUTATION OF THE ESTIMATED LIABILITY OF TENANT
TO THE EXTENT LANDLORD IS REQUIRED TO PAY THE TAXES PENDING SUCH CONTEST.
5
3.1.3.
INTENTIONALLY OMITTED
3.1.4.
OPERATING YEAR.
THE TERM "OPERATING YEAR" SHALL MEAN EACH CALENDAR
YEAR COMMENCING ON JANUARY 1ST OF EACH YEAR AFTER THE COMMENCEMENT DATE (AS
HEREINAFTER DEFINED).
3.2.
OBLIGATIONS OF ADDITIONAL RENT.
TENANT SHALL PAY AS ADDITIONAL
RENT ("ADDITIONAL RENT") IN ACCORDANCE WITH THE REQUIREMENTS OF SECTION 3.3, ITS
PROPORTIONATE SHARE OF OPERATING EXPENSES FOR EACH OPERATING YEAR.
THE
ADDITIONAL RENT PAYABLE ON ACCOUNT OF OPERATING EXPENSES COMMENCES TO ACCRUE ON
AND AFTER 11/15/06.
THE ADDITIONAL RENT PAYABLE HEREUNDER FOR THE OPERATING
YEAR IN WHICH THE TERM ENDS SHALL BE PRORATED TO CORRESPOND TO THAT PORTION OF
SAID OPERATING YEAR OCCURRING WITHIN THE TERM.
ADDITIONAL RENT AND ANY OTHER
SUMS DUE AND PAYABLE UNDER THIS LEASE SHALL BE ADJUSTED UPON RECEIPT OF THE
ACTUAL BILLS THEREFOR AND THE OBLIGATIONS OF THIS SECTION 3 SHALL SURVIVE THE
TERMINATION OR EXPIRATION OF THE LEASE.
WITH THE EXCEPTION THAT DURING THE
FIRST TWELVE (12) MONTHS OF THE LEASE TERM TENANT SHALL ONLY BE RESPONSIBLE FOR
FIFTY PERCENT (50%) OF THE ADDITIONAL RENT.
3.3.
PAYMENT OF ADDITIONAL RENT.
LANDLORD SHALL HAVE THE RIGHT TO
REASONABLY ESTIMATE THE OPERATING EXPENSES FOR EACH OPERATING YEAR.
UPON
LANDLORD'S OR AGENT'S NOTICE TO TENANT OF SUCH ESTIMATED AMOUNT, TENANT SHALL
PAY, ON THE FIRST DAY OF EACH MONTH DURING THAT OPERATING YEAR, AN AMOUNT (THE
"ESTIMATED ADDITIONAL RENT") EQUAL TO THE ESTIMATE OF THE TENANT'S SHARE OF
OPERATING EXPENSES DIVIDED BY 12 (OR THE FRACTIONAL PORTION OF THE OPERATING
YEAR REMAINING AT THE TIME LANDLORD DELIVERS ITS NOTICE OF ESTIMATED OPERATING
EXPENSES DUE FROM TENANT FOR THAT OPERATING YEAR). WITHIN NINETY (90) DAYS AFTER
THE END OF EACH OPERATING YEAR, LANDLORD SHALL DELIVER TO TENANT AN ANNUAL
STATEMENT (THE "ANNUAL STATEMENT") OF THE ADDITIONAL RENT PAYABLE UNDER SECTION
3.2 FOR SUCH OPERATING YEAR.
IF THE ANNUAL STATEMENT SHOWS THAT TENANT'S
PAYMENTS OF ESTIMATED ADDITIONAL RENT FOR SUCH OPERATING YEAR EXCEEDED TENANT'S
OBLIGATIONS