Common use of Calculation of Excess Operating Costs Clause in Contracts

Calculation of Excess Operating Costs. Tenant shall pay, as Additional Rent, Tenant’s Pro Rata Share of Excess Operating Costs incurred by Landlord on behalf of the Project. As used herein, “Excess Operating Costs” are the actual Operating Costs (as defined below) per rentable square foot minus the Operating Costs per rentable square foot for the Base Year. For each calendar year of the Term after the Base BIOCENTER LEASE AGREEMENT – SUITES 226 AND 227 PAGE 7 Year, Landlord will provide Tenant a written good faith estimate of the Tenant’s Pro Rata Share of Excess Operating Costs for such calendar year, in accordance with Section 3.04(b), below. (In the event that Landlord does not give Tenant a good faith estimate of Tenant’s Pro Rata Share of Excess Operating Costs prior to January 1 of the calendar year, Tenant’s Pro Rata Share of Operating Expenses shall be deemed to be same as for the prior calendar year until such time as Landlord delivers its estimate of the Excess Operating Costs, following which delivery a reconciliation of the payments of Excess Operating Costs made by Tenant and the amounts actually owing by Tenant shall be made in accordance with Section 3.04(c), below.) Tenant shall pay to Landlord, on the first day of each calendar month thereafter, an amount equal to 1/12 of Tenant’s Pro Rata Share of the estimated Excess Operating Costs for such year. From time to time during any calendar year, Landlord may re-estimate the Excess Operating Costs for that calendar year in accordance with Section 3.04(c), in which event the estimated Excess Operating Costs paid by Tenant shall be adjusted pursuant to paragraph (c) of this Section 3.04. In addition, Landlord shall have the right, from time to time, to equitably allocate and prorate some or all of the Operating Costs among different tenants and/or different portions of the building(s) in the Project, adjusting Tenant’s Proportionate Share as to each of the separately allocated costs based on the ratio of the rentable square feet in the Premises to the rentable square feet of all of the premises to which such costs are allocated.