2008/01/30 Council Agenda Packet

expenses incurred in the leasing to or procuring of other tenants (including without limitation, leasing commissions, legal expenses, expenses for the renovation of vacant suites for occupancy by new tenants); legal expenses arising out of disputes with other tenants or the enforcement of the provisions of any lease to another tenant of any portion of the Property; interest, amortization or principal payments on any mortgage or other indebtedness of Landlord; costs of any work or service performed for or facilities furnished to another tenant at the tenant's cost; the cost of correcting defects (latent or otherwise)in the construction of the building,except those conditions (not occasioned by construction defects resulting from wear and tear shall not be deemed defects; and costs of capital improvements and depreciation and amortization except as otherwise provided in this Section. d. Landlord and Tenant shall each from time to time upon request of the other sign a written memorandum confirming the amount of the Additional Rent as adjusted from time to time under this Lease. e. The cost of any capital repairs or replacements shall be amortized at the then current prime interest rate published by Bank of America or its successor over the useful life of such capital item. Tenant shall pay its pro rata share of the amortized portion of any such capital repair or replacement. 7B. Landlord shall submit to Tenant, at least annually,a statement of the anticipated monthly Additional Rent. Tenant shall pay Additional Rent or estimated Additional Rent at the same time that it pays Minimum Rent. Tenant shall continue to make said monthly payments of estimated Additional Rent until notified by Landlord of a change thereof. By October 15 of each year Landlord shall endeavor to give Tenant a statement showing the total Additional Rent for the Premises for the prior calendar year and Tenant's allocable share thereof,prorated from the lease commencement date. In the event the total of the estimated monthly payments which Tenant has made for the prior calendar year is less than the Tenant's actual share of such Additional Rent, then Tenant shall pay the difference in a lump sum within thirty(30) days after receipt of such statement from Landlord and shall also pay the difference in monthly payments made in the then current year which may be adjusted based on the prior years experience. Any overpayment by Tenant shall be credited towards the monthly Additional Rent next coming due. The actual Additional Rent for the prior year and Tenant's proportionate share of any property operating budget as specified under Section 7A shall be used for purposes of calculating the estimated monthly Additional Rent for the current year. Even after the term has expired and Tenant has vacated the Premises,when the final determination is made of Tenant's share of said Additional Rent for the year in which this Lease terminates, Tenant shall within thirty (30) days pay any difference in the actual amount due less the amount of estimated Additional Rent previously paid and received by Landlord. If after the Lease term has expired and Tenant has vacated the Premises, and the final determination shows Tenant has paid more estimated Additional Rent than is actually due,Landlord shall promptly refund the difference to Tenant. 8. USES PROHIBITED. Tenant shall not do or permit anything to be done in or about the Premises nor bring to or keep anything therein which will in any way increase the existing rate of or affect any fire or other insurance upon the Building or any of its contents,or cause a cancellation of any insurance policy covering said Building or any part thereof or any of its contents. Tenant shall not do permit anything to be done in or about the Premises which will in any way obstruct or interfere with the rights of Landlord or other tenants or occupants of the Property or injure or annoy them or use or allow the Premises to be used for any improper, immoral, unlawful or objectionable purpose, nor shall Tenant cause, maintain or permit any nuisance in, on or about the Premises. Tenant shall not commit or allow to be committed any waste in or upon the Premises. 9. COMPLIANCE WITH THE LAW. Tenant shall not use the Premises,or permit anything to be done in or about the Premises, which will in any way conflict with the law, statute, ordinance or governmental rule or regulation now in force or which may hereafter be enacted or promulgated. Tenant shall, at its sole cost and expense, promptly comply with all laws, statutes, ordinances and governmental 99999-6028/LE0AL13867066.1 7