Draft lease for 7 World Trade Center, March 1998

NYC 9/11 Public Portal Document

Within one-hundred twenty (120) days after the expiration of the Operating Expense Base Year, Landlord shall furnish to Tenant a schedule of Operating Expenses for said Operating Expense Base Year. Such schedule of Base Year Operating Expenses must be prepared in a format no less detailed than that shown in Exhibit B hereto.

Such schedule of Base Year Operating Expenses must include a statement signed by the chief executive, chief operating, or chief financial officer of Landlord that avers that there is complete and accurate documentation in Landlord’s files to support each and every charge included in Base Year Operating Expenses.

Landlord must have supporting documents for each and every Base Year Operating Expense or it will be disallowed.

Such schedule of Base Year Operating Expenses must be accompanied by a report of Landlord's Certified Public Accountant, which report must be based upon an audit conducted in accordance with generally accepted auditing standards and state whether the schedules of Base Year Operating Expenses present fairly the Base Year Operating Expenses of Landlord as defined in the Lease. Tenant approves the format of Exhibit B hereto and a; it said Exhibit B meets the requirements of the preceding sentence.

If Landlord fails to furnish any statements under this Article relating tijHBaSeYear Operating Expenses or Operating Expense Escalations under A.2. below within 180 days after the date due, Tenant may, upon thirty (30) days’ written notice, withhold all additional rent due and owing to Landlord for (Operating Expense Escalations under A.2. below, until Landlord furnishes the foregoing statements. Tenant's liability for Operating Expense Escalations due pursuant to this Article and/or Landlord's liability for refunding any overpayment shall survive the expiration of the Term hereof.

Pending any audit by the Tenant or Comptroller of the Operating Expense Base Year, Tenant shall pay Operating Expense Escalations pursuant to the foregoing provisions hereof for such year as billed by Landlord, provided, however, that Tenant shall have the right to withhold a disputed amount on account of Curating Expense Escalations until the dispute in question is resolved; and upon completion of such audit Tenant shall be allowed to deduct immediately overcharges detected upon audit from any installment of rent then becoming due , or if at the end of the Lease term Tenant shall be entitled to a payment from Landlord for such amounts within thirty (30) days of Lease termination or expiration.

Tenant shall have the right to copy, examine and audit Landlord's Base Year Operating Statement.

A. 2 LANDLORD’S STATEMENT OF OPERATING EXPENSE ESCALA-nONS

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