Agmt10 Kona Ventures, LLC - Laserfiche WebLink

Browse Search

(d) Utility Charges. Prepaid water, sewer, and other utility charges shall be credited to Owner, and unpaid water, sewer, and other utility charges accruing prior to the Closing shall be credited to Optionee. However, no such prorations shall be made to the extent any such utilities are contracted for and paid directly by the Tenant. Optionee shall credit to the account of Owner all refundable cash or other deposits posted by Owner with utility companies serving the Real Property or, at Optionee's option, Owner shall be entitled to receive and retain such refundable cash and deposits. (e) Tenant Deposits. All tenant security deposits made pursuant to the Lease ( "Security Deposits ") actually received by Owner (and interest thereon if required by law or contract to be earned thereon) and not previously applied to Tenant's obligations under the Lease shall be transferred or credited to Optionee at Closing. As of the Closing, Optionee shall assume Owner's obligations related to the Security Deposits. (f) Contracts. Any amounts owing under the Contracts that are assigned to and assumed by Optionee pursuant to Paragraph 15(a) shall be prorated as of the Closing Date. (g) Additional Deposits. Any Non - Applicable Deposits made by Optionee pursuant to Paragraph 2(b) shall not be prorated. By way of example, if pursuant to Paragraph 2(b) Optionee makes a Non - Applicable Deposit of Thirteen Thousand Five Hundred Dollars ($13,500) on February 1, 2011 (for the Extension Period ending on February 28, 2011), and if the Closing occurs on February 15, 2011, then there shall be no proration of such Non - Applicable Deposit notwithstanding that the Closing occurs prior to the expiration of the applicable Extension Period. The Applicable Deposits (together with the Initial Deposit and the Option Payment) shall be fully credited to the Purchase Price irrespective of when the Closing occurs. (h) Other Amounts. Any other operating expense or other items pertaining to the Real Property which are customarily prorated between buyers and sellers of real property in the County shall be prorated between Owner and Optionee in accordance with local custom. (i) Post - Closing Adjustments. Except as otherwise provided in this Agreement, any revenue or expense amount that cannot be ascertained with certainty as of the Closing Date shall be prorated on the basis of the parties' reasonable estimates of such amount, and shall be the subject of a final proration after the Closing. The parties acknowledge that Operating Expenses payable by the Tenant under the Lease are calculated and payable based upon estimates of Operating Expenses expected to be incurred, and such estimates are reconciled at the end of each year based upon actual expenses incurred for the year. Owner and Optionee agree that, to the extent items are prorated or adjusted at Closing on the basis of estimates, or are not prorated or adjusted at Closing pending actual receipt of funds or compilation of information upon which such prorations or adjustments are to be based, each of them will, upon a proper accounting, pay to the other such amounts as may be necessary such that Owner will receive the benefit of all income and will pay all expenses of the Property prior to the Closing Date and Optionee will receive all income and will pay all expenses of the Property after the Closing Date. Owner and Optionee agree that as soon as reasonably possible, but in no event later than April 15, 2012, the parties shall undertake a final master reconciliation of Operating Expenses, taxes and other pass - throughs and additional rent with respect to the Lease and the Property. Such Option Agreement 70 Chemical 10.05.2010 v.5 10