OR
OPERATION OF THE PROPERTY, OR OF THE PERSONAL PROPERTY AND EQUIPMENT LOCATED
THEREIN OR USED IN CONNECTION THEREWITH, INCLUDING, WITHOUT LIMITATION, ANY
SALES OR USE TAXES ASSESSED BY GOVERNING MUNICIPAL OR STATE AUTHORITY AGAINST
TENANT'S PERSONAL PROPERTY; AND (II) ANY REASONABLE EXPENSES INCURRED BY
LANDLORD IN CONTESTING SUCH TAXES OR ASSESSMENTS AND/OR THE ASSESSED VALUE OF
THE PROPERTY.
FOR PURPOSES HEREOF, TENANT SHALL BE RESPONSIBLE FOR ANY TAXES
THAT ARE DUE AND PAYABLE AT ANY TIME OR FROM TIME TO TIME DURING THE TERM AND
FOR ANY TAXES THAT ARE ASSESSED, BECOME A LIEN, OR ACCRUE DURING ANY OPERATING
YEAR, WHICH OBLIGATION SHALL SURVIVE THE TERMINATION OR EXPIRATION OF THIS
LEASE.
TAXES SHALL NOT INCLUDE ANY CORPORATE FRANCHISE, OR ESTATE, INHERITANCE,
INCOME TAX, GIFT TAX, EXCESS PROFIT TAX, LATE PAYMENT CHARGES AND PENALTIES (TO
THE EXTENT ASSESSED DUE SOLELY TO LANDLORD'S ACTIONS OR INACTIONS), SPECIAL
ASSESSMENTS LEVIED AGAINST PROPERTY OTHER THAN REAL ESTATE (BUT ONLY TO THE
EXTENT THAT SUCH SPECIAL ASSESSMENTS DO NOT RELATE DIRECTLY TO TENANT AND MAY BE
PAID IN INSTALLMENTS, AND ONLY ANY INSTALLMENTS PAYABLE AFTER THE TERM OF THIS
LEASE SHALL BE EXCLUDED PURSUANT TO THIS PROVISION), EXCISE TAXES, GROSS
RECEIPTS TAXES, CAPITAL LEVIES OR TAX IMPOSED UPON ANY TRANSFER BY LANDLORD OF
ANY PORTION OF ITS INTEREST IN THIS LEASE OR THE PROPERTY OR BUILDING (OR THE
PROPERTY OR BUILDING ITSELF) OR ANY TAXES TO BE PAID DIRECTLY BY TENANT.
4
3.1.3
OPERATING YEAR.
THE TERM "OPERATING YEAR" SHALL MEAN THE CALENDAR
YEAR COMMENCING JANUARY 1ST OF EACH YEAR (INCLUDING THE CALENDAR YEAR WITHIN
WHICH THE COMMENCEMENT DATE OCCURS) DURING THE TERM.
3.2.
PAYMENT OF OPERATING EXPENSES.
TENANT SHALL PAY, AS ADDITIONAL
RENT AND IN ACCORDANCE WITH THE REQUIREMENTS OF SECTION 3.3, THE FULL AMOUNT OF
OPERATING EXPENSES AS SET FORTH IN SECTION 3.3; PROVIDED, HOWEVER, IN THE CASE
OF MULTIPLE-TENANT PROPERTIES, TENANT SHALL PAY A PERCENTAGE OF OPERATING
EXPENSES BASED ON THE SQUARE FOOTAGE OF THE APPLICABLE PREMISES COMPARED TO THE
SQUARE FOOTAGE OF THE ENTIRE BUILDING AS SPECIFIED IN SECTION 1.11.
ADDITIONAL
RENT COMMENCES TO ACCRUE UPON THE COMMENCEMENT DATE.
OPERATING EXPENSES PAYABLE
HEREUNDER FOR THE OPERATING YEARS IN WHICH THE TERM BEGINS AND ENDS SHALL BE
PRORATED TO CORRESPOND TO THAT PORTION OF SAID OPERATING YEARS OCCURRING WITHIN
THE TERM.
OPERATING EXPENSES AND ANY OTHER SUMS DUE AND PAYABLE UNDER THIS
LEASE SHALL BE ADJUSTED (AS SET FORTH IN SECTION 3.3) UPON RECEIPT OF THE ACTUAL
BILLS THEREFOR, AND THE OBLIGATIONS OF THIS SECTION 3 SHALL SURVIVE THE
TERMINATION OR EXPIRATION OF THE LEASE.
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 OPERATING EXPENSES
DIVIDED BY 12 (OR THE FRACTIONAL PORTION OF THE OPERATING YEAR REMAINING AT THE
TIME LANDLORD