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39. <br />Landlord, Steven J. Keisar, hereby discloses that he is a licensed <br />Real Estate Salesman. Landlord warrants that there is no real estate <br />broker or agent who is entitled to a commission in connection with this <br />40. LIME <br />Time is of the assence of this Lease and each and all of its <br />provisions. <br />41. <br />The covenants and conditions contained in this Lease sha%1v subject <br />to the provisions as to assignment, apply to and bind the heirs, <br />successors, executors, administrators and assigns of the parties to this <br />Lease. <br />42. <br />(a) Wpan the beginning of the second year of the Lease term and upo; <br />the bsaginm6ng~of each subsequent year of the Lease term, Tenant shall pay <br />to Landlord, as additional rent* Tenant's pro-rata share of any increase 1/ <br />direct expenses, as hereinafter defined, for the operation and maintenance <br />costs and expenses attributable to the Building, over and above the direct <br />expenses actually incurred during the calendar year in which the Lease ter' <br />commenced. Tenant's pro-rata share of any such increase shall equal the <br />sum obtained by multiplying the increase in expenses times the percentage <br />obtained by dividing the total square footage contained in the Building <br />into the total square -footage of the Premises. Said percentage is hereby <br />agreed upon as _��OoLt— <br />of 410 W. 4th Street, Santa Ana T. The ter ldirLAct expenses" as used <br />herein shall inclu�e all di costs of operation and maintenance an <br />determined by standard accounting practicesq and shall include the <br />following costs by way of illustration but not by way of limitatiOn" <br />water, trash removal and sewer charges; utilities; property management; <br />common area maintenance (including maintaining and repairing heating and <br />air conditioning equipment); janitorial services; and supplies, "..°.e.^.^~, <br />equipment, and labor costs incurred in the maintenance and upkeep of all <br />1andscapimg* and repair or replacement of parking and common areas, <br />including monument signs and external lighting. The term "direct expenses <br />shall not include depreciation on the Building or equipment therein, <br />interest on debt secured by the building, or real estate broker's <br />commissions" <br />(b) Tenant shall pay to Landlord an amount estimated by Landlord tc <br />be Temant's monthly share of such increase in direct expenses (as defined <br />above), in advance, on them fipst day of each calendar month of the Lease <br />term commencing upon the beginning of the second year of the Lease term. <br />Landlord m'-v from time to time, adjust the amount of the estimated 6irec^ <br />wex�»emses may, <br />basis of Landlord's reasonably anticipated costs for the <br />tin~~' period. �m �ccoun��n� period is the calendar year except that <br />accounting p " the portion f the comlendAr year fro/ <br />the first accounting period shall be e p�r c» <br />o <br />the beginning of the first year of the Lease term to the end of that <br />calendar year, and the last accounting period shall he the portion of the <br />