Common use of Adjustments to Rent Clause in Contracts

Adjustments to Rent. Commencing at the end of the first full year of the original term of this Lease, the rental amount provided in Paragraph 2 above shall be adjusted annually in accordance with the Consumer Price Index as published by the Bureau of Labor Statistics of the U.S. Department of Labor. Such adjustment shall be computed as follows: (a) The percentage of which the Price Index available as of the commencement date of the year in which the annual adjustment is to be made differs from the Price Index as of the commencement date of the next preceding year shall be multiplied by the annual minimum rental rate for the lease year preceding the year in which the adjustment is to be made; the product shall be added to such preceding lease year’s annual minimum rental for the lease year in which such adjustment is to be made. (b) In no event shall the minimum rental for any calendar year be less than the annual minimum rental of the immediately preceding year. (c) The minimum rental as adjusted pursuant to the provisions of this paragraph shall be payable in equal monthly installments in advance on the first day of each month during the lease year or part thereof for which such adjustment was made. (d) In the event that there is any substantial change in the method by which the Price Index is computed, then, for the purposes of this Lease, the Price Index shall be adjusted to the figure which would have resulted had no change occurred in the manner in which such Price Index was computed. In the event such Price Index shall become unavailable, Landlord shall have the right to choose a substitute index which shall be reliable governmental or other nonpartisan publication evaluating substantially the same information as previously used in determining the Price Index.

Adjustments to Rent. Commencing at on January 1, 2002 and on each January 1st thereafter during the end remaining term of the first full year lease (each an "adjustment date") the minimum annual rent of the original term of this Lease, the rental amount provided in Paragraph 2 above $5,800,000,00 shall be adjusted annually in accordance with adjusted, as follows: a. The base for Computing the adjustment is the Consumer Price Index as Index, All Items, for the San Francisco-Oakland-San Xxxx consolidated Metropolitan Area published by the United States Department of Labor, Bureau of Labor Statistics of (82-84 = 100) ("Index"), which is published for the U.S. Department of Labormonth nearest the Commencement Date ("Beginning Index"). Such adjustment If the Index published nearest the Adjustment Date ("Extension Index" ) has increased over the Beginning Index, the Minimum Annual Rent for the following period (until the next rent adjustment) shall be computed as follows: (a) The percentage set by multiplying $5,800,000.00 by a fraction, the numerator of which is the Price Extension Index available as and the denominator of which is the commencement date of Beginning Index. Notwithstanding the year foregoing, in which the annual adjustment is to be made differs from the Price Index as of the commencement date of the next preceding year shall be multiplied by the annual minimum rental rate for the lease year preceding the year in which the adjustment is to be made; the product shall be added to such preceding lease year’s annual minimum rental for the lease year in which such adjustment is to be made. (b) In no event shall the minimum rental for any calendar year Minimum Annual Rent be less than the annual minimum rental of such rent as adjusted under this paragraph in effect for the immediately preceding year. (c) The minimum rental b. After the adjustment date of the Minimum Annual Rent as adjusted pursuant to the provisions of this paragraph shall be payable provided for in equal monthly installments in advance on the first day of each month during the lease year or part thereof for which such adjustment was made. (d) In the event that there is any substantial change in the method by which the Price Index is computed, then, for the purposes of this Lease, Lessor shall deliver to Lessee written notice stating the Price Index new Minimum Annual Rent. However, the adjustment of rent shall be adjusted to the figure which would have resulted had no change occurred in the manner in which such Price Index was computedbecome effective upon each adjustment date without notice or demand. In the event the information concerning the Extension Index is not readily available on an adjustment date, Lessee shall continue to pay rent at the rates for the previous period until such Price time as the Extension Index information is available, at which the Lessee shall pay any additional amounts due since the adjustment date and commence payment of the adjusted amount. Neither the failure of Lessor to give notice or demand of the adjustment, nor the acceptance by Lessor of rent in a different amount shall constitute a waiver of any adjustment or shall excuse the payment of any rent or adjustment. c. If the Index is changed so that the base year differs from that used as of the month immediately preceding the month in which the term commences, the Index shall become unavailablebe converted in accordance with tho conversion factor published by the United States Department of Labor, Landlord shall have Bureau of Labor Statistics. If the right to choose a substitute Index is discontinued or revised during the term, such other government index or computation with which it is replaced shall be reliable governmental or other nonpartisan publication evaluating used in order to obtain substantially the same information result as previously used in determining would be obtained if the Price IndexIndex had not been discontinued or revised.

Adjustments to Rent. Commencing at The Annual Base Rent shall be adjusted from time to time in accordance with this section to reflect increases in the end Expenses of operating the Building, as defined in Section 4.3, and increases in Taxes on the Property or the Building, as defined in Section 4.4. The Annual Base Rent including the adjustments made pursuant to this section and the rent for the Storage Space referred to in Section 23.32 is referred to in this Lease as the "Rent". As used herein ("Tenant's Proportionate Share") shall be a fraction, the numerator of which is the rentable area of the first full Premises and the denominator of which is the total rentable area of the Building. If the Expenses in any period during the Term commencing after December 31, 1999 exceed the Expense Stop Amount, Annual Base Rent shall be adjusted to include Tenant's Proportionate Share of the amount Expenses that exceed the Expense Stop Amount. If the Taxes in any period during the Term commencing after December 31, 1999 exceed the Tax Expense Stop Amount, Annual Base Rent shall be adjusted to include Tenant's Proportionate Share of such excess. Tenant shall not be responsible for any payment of Expenses pursuant to this Article 4 during 1999, and Tenant shall not be responsible for any payment of Taxes pursuant to this Article 4 during 1999. For 1999 and for each year of the original term of this LeaseTerm thereafter, the rental amount provided in Paragraph 2 above Expenses shall be adjusted annually calculated in accordance with consistently applied accounting practices on a grossed-up basis reflecting the Consumer Price Index as published by the Bureau of Labor Statistics variable Expenses of the U.S. Department Building (including the gross revenue component of Laborthe management fee) for each calendar year as if the Building was the greater of (i) the actual percentage of occupancy of the Building (calculated on a weighted average using the average monthly occupancy for each month of the calendar year) or (ii) ninety five percent (95%) occupied; provided, however, if the gross-up percentage for any calendar year, other than 1999, is as set forth in (i) above, for each calendar year in which such percentage is used, such percentage shall also be used to gross-up retroactively Expenses for 1999. Such adjustment shall Only those component Expenses that are affected by variations in occupancy levels may be computed as follows:so adjusted. (a) The percentage of which the Price Index available as adjustment to Annual Base Rent of the commencement date previous calendar year after credit for any estimated payments which Tenant has made pursuant to this section; and (b) an estimated adjustment to Annual Base Rent for the months which have elapsed in the current calendar year based on the previous calendar year's increase in Expenses and/or Taxes and Landlord's good faith projection of the increase in Expenses and/or Taxes during the current calendar year after credit for any estimated payments made by Tenant pursuant to this section. Commencing with the month following the month in which the annual adjustment Statement is dated and continuing until such time as Tenant receives Landlord's next Statement, the Monthly Base Rent Installments shall be adjusted to be made differs from the Price Index as include Tenant's Proportionate Share of any Expenses and/or taxes in excess of the commencement date Expense Stop Amount based on Expenses for the previous year and taxes in excess of the next preceding Tax Expense Stop Amount based on Taxes for the previous year and Landlord's good faith projection of the increase in Expenses and Taxes for the current calendar year. The adjusted portion of the payments of Annual Base Rent as so adjusted with respect to Expenses shall be multiplied by credited against the annual minimum rental rate for actual Expenses as shown in Landlord's next Statement. Similarly, the lease year preceding adjusted portion of the year in which the adjustment is payments of Annual Base Rent as so adjusted with respect to be made; the product Taxes shall be added credited against the actual Taxes as shown in Landlord's next Statement. If the next Statement shows that Tenant has overpaid and if Tenant is not then in default, Landlord shall credit such overpayment against the next accruing payments of Rent until the overpayment is reduced to such preceding lease year’s annual minimum rental for zero. The obligation to pay the lease year adjustments to Annual Base Rent shall survive any termination of the Term. Notwithstanding anything contained in which such adjustment is to be made. (b) In this Section 4.2, the Annual Base Rent payable by Tenant shall in no event shall the minimum rental for at any calendar year time be less than the annual minimum rental of the immediately preceding year. (c) Annual Base Rent specified in Article 1 hereof. The minimum rental as adjusted pursuant adjustment to the provisions of Annual Base Rent payable under this paragraph section shall be payable in equal monthly installments in advance on the first day respect of each month all periods during the lease year or part thereof for which such adjustment was made. (d) In Term, including any portion of the event that there is any substantial change in the method by which the Price Index is computed, then, for the purposes of this Lease, the Price Index shall be adjusted Term prior to the figure which would have resulted had no change occurred in the manner in which such Price Index was computed. In the event such Price Index shall become unavailable, Landlord shall have the right to choose a substitute index which shall be reliable governmental or other nonpartisan publication evaluating substantially the same information as previously used in determining the Price IndexRent Commencement Date.