(HEREINAFTER DEFINED)
PAYABLE BY TENANT IN ACCORDANCE WITH PARAGRAPH 3 BELOW, (V) THE COST OF ANY
REPAIR, REPLACEMENT, OR CAPITAL EXPENDITURES REQUIRED UNDER ANY GOVERNMENTAL LAW
OR REGULATION THAT WAS NOT APPLICABLE IN THE BUILDING AT TIME OF ORIGINAL
CONSTRUCTION, AND (VI) REPLACEMENT RESERVES FOR CAPITAL ITEMS AND OTHER
OPERATING EXPENSES REQUIRED BY THIS LEASE.
DURING EACH MONTH OF THE TERM OF
THIS LEASE, ON THE SAME DAY THAT BASE RENT IS DUE HEREUNDER.
TENANT SHALL
ESCROW WITH LANDLORD AN AMOUNT EQUAL TO 1/12TH OF THE TENANT'S PROPORTIONATE
SHARE OF SUCH REIMBURSABLE EXPENSES AS ESTIMATED BY LANDLORD IN GOOD FAITH.
TENANT AUTHORIZES LANDLORD TO USE THE FUNDS DEPOSITED WITH LANDLORD UNDER THIS
PARAGRAPH 2C TO PAY SUCH REIMBURSABLE EXPENSES.
LANDLORD SHALL BE ENTITLED TO
REVISE ITS PROJECTION IN GOOD FAITH OF SUCH REIMBURSABLE EXPENSES AT ANY TIME
AND IF LANDLORD SO REVISES SUCH PROJECTION, TENANT SHALL PAY TO LANDLORD, ON THE
SAME DAY AS BASE RENT IS DUE HEREUNDER, AN AMOUNT EQUAL TO 1/12TH OF TENANT'S
PROPORTIONATE SHARE OF SUCH REIMBURSABLE EXPENSES PURSUANT TO LANDLORD'S GOOD
FAITH REVISED ESTIMATE THEREOF.
BY APRIL 30 OF EACH CALENDAR YEAR (OR AS SOON
THEREAFTER AS MAY BE PRACTICABLE) DURING THE TERM HEREOF LANDLORD SHALL
DETERMINE THE ACTUAL REIMBURSABLE EXPENSES FOR THE PRECEDING CALENDAR YEAR AND
SHALL NOTIFY TENANT THEREOF AND PROVIDE TENANT WITH A COPY OF THE ACCOUNTING AND
DETAIL OF THE REIMBURSABLE EXPENSES.
IF TENANT'S TOTAL ESCROW PAYMENTS ARE LESS
THAN TENANT'S ACTUAL PROPORTIONATE SHARE OF ALL SUCH REIMBURSABLE EXPENSES,
TENANT SHALL PAY THE DIFFERENCE TO LANDLORD WITHIN TWENTY (20) DAYS AFTER
DEMAND.
IF THE TOTAL ESCROW PAYMENTS OF TENANT ARE MORE THAN TENANT'S ACTUAL
PROPORTIONATE SHARE OF ALL SUCH REIMBURSABLE EXPENSES, LANDLORD SHALL RETAIN
SUCH EXCESS AND CREDIT IT AGAINST TENANT'S NEXT ANNUAL ESCROW PAYMENTS.
3.
COMMON AREA CHARGES.
A.
IN ADDITION TO OTHER AMOUNTS REQUIRED TO BE PAID BY TENANT
HEREUNDER, TENANT SHALL PAY TO LANDLORD TENANT'S PROPORTIONATE SHARE OF THE
FOLLOWING COSTS AND EXPENSES (COLLECTIVELY, THE "COMMON AREA CHARGES"):
I.
THE COST OF REPAIR, MAINTENANCE AND REPLACEMENT OF: (I) THE
EXTERIOR OF THE BUILDING (INCLUDING PAINTING), OTHER THAN THOSE STRUCTURAL
REPAIRS AND REPLACEMENTS FOR WHICH LANDLORD IS RESPONSIBLE PURSUANT TO
PARAGRAPH 5; (II) ALL MECHANICAL, ELECTRICAL,
3
PLUMBING, SEWER, SPRINKLER AND OTHER LIFE-SAFETY EQUIPMENT AND SYSTEMS FORMING A
PART OF THE BUILDING OR THE PROJECT OF WHICH THE BUILDING FORMS A PART (OTHER
THAN THE COST OF REPAIR, REPLACEMENT AND MAINTENANCE OF THE ITEMS WHICH ARE THE
TENANT'S RESPONSIBILITY PURSUANT TO PARAGRAPH 6 WHICH SHALL BE PAID ENTIRELY BY
TENANT AS PROVIDED IN PARAGRAPH 6); AND (III) ALL OTHER COMMON AREAS AND
FACILITIES CONSTITUTING A PART OF THE BUILDING OR THE PROJECT OF WHICH THE
BUILDING FORMS A PART (INCLUDING, BUT NOT LIMITED TO, ALL PAVED AREAS IN AND
ABOUT THE BUILDING).
II.
THE COST OF MAINTENANCE AND REPLACEMENT OF THE GRASS, SHRUBBERY
AND OTHER LANDSCAPING IN AND ABOUT THE BUILDING AND/OR THE PROJECT.
III.
THE COST OF OPERATING AND MAINTAINING IN A GOOD, NEAT, CLEAN AND
SANITARY