Fill and Sign the Rise of the Lease Auditccim Institute Form

19.03[5]a Sample Tenant Audit Provision (Pro-Tenant Perspective)AUDIT BY TENANT (Pro-Tenant Perspective) (a) Landlord shall provide to Tenant in substantial detail each year the calculations performed to determine the Building Operating Costs in accordance with the applicable provisions of the Lease. Landlord shall show by account the total operating costs for the Building and all adjustments corresponding to the requirements as set forth herein. Landlord shall provide in reasonable detail its calculation of Tenant's pro rata share of Building Operating Costs by setting forth the ratio of Premises rentable square feet to Building rentable square feet. Landlord shall also provide the average Building occupancy for such year. (b) Tenant shall have the right, at its own cost and expense (without requirement that Tenant pay Landlord's costs of complying with this provision), to audit or inspect Landlord's detailed records each year with respect to Building Operating Costs, as well as all other additional rent payable by Tenant pursuant to the Lease for any Lease Year (not to exceed one time per year). Landlord shall utilize, and cause to be utilized, accounting records and procedures for each Lease Year conforming to generally accepted accounting principles, consistently applied, with respect to all of the Building Operating Costs for such Lease Year, including without limitation, all payments for Building Operating Costs, to facilitate Tenant's audit or inspection. Pursuant to the foregoing, Landlord shall be obligated to keep such records for all Lease Years associated with this Lease until two (2) years following the termination of the Lease, including any Lease Year prior to Landlord's ownership of the Building. Within fifteen (15) business days of Tenant's written notice to Landlord of its desire to review Landlord's books and records, Landlord shall forward to Tenant or Tenant's authorized representative, full and complete copies of the Building's general ledger, all escalation worksheets and their supporting documentation for each Lease Year being reviewed. General ledgers shall be the type printed from Landlord's particular computerized accounting system reflecting: (1) the full year's listing of expenses with such expenses of course listed under its applicable account (which account has its name and number clearly specified) and with each account's expenses summarized via account balances, (2) for each expense, the date of the expense, the payee/vendor, the amount (including debits and credits), and the transaction description (reflecting an explanation of what the expense was for), and (3) the various income accounts indicating the income items which were received and applied during the year. If after the review of such documentation, Tenant desires to perform a complete audit of Landlord's books and records, Tenant shall give Landlord not less than ten (10) business days prior written notice of its intention to conduct any such audit. Landlord shall cooperate with Tenant during the course of such audit, making all pertinent records available to Tenant, Tenant's employees and agents for inspection during normal business hours in Landlord's Building management office. Landlord agrees to make such personnel available to Tenant as is reasonably necessary for Tenant, Tenant's employees and agents, to conduct such audit. Tenant, Tenant's employees and agents, shall be entitled to make photostatic copies of such records, provided Tenant bears the expense of such copying, and further provided that Tenant keeps such copies in a confidential manner and does not show or distribute such copies to any other third party. (c) The results of such audit, as reasonably determined by both parties, shall be binding upon Landlord and Tenant. If such audit discloses that the amount paid by Tenant as Tenant's Share of Building Operating Costs, or of other additional rental payable pursuant to the Lease, has been overstated by more than three percent (3%), then, in addition to immediately repaying such overpayment and associated interest to Tenant, Landlord shall also pay the costs incurred by Tenant in connection with such audit (which costs shall not exceed the amount repaid or credited to Tenant).