Calculation Methods and Adjustments Clause Samples
Calculation Methods and Adjustments. 6.2.1. Subject to the provisions of this Section 6.2, all calculations, determinations, allocations and decisions to be made hereunder with respect to Operating Expenses and Real Property Taxes shall be made on a triple net basis in accordance with the good faith determination of Landlord applying sound accounting and property management principles consistently applied which are consistent with Institutional Owner Practices. Landlord shall have the right to equitably allocate some or all Operating Expenses among particular classes or groups of tenants in the Project or Building (for example, retail tenants) to reflect Landlord’s good faith determination that measurably different amounts or types of services, work or benefits associated with Operating Expenses, as applicable, are being provided to or conferred upon such classes or groups. All discounts, reimbursements, rebates, refunds, or credits (collectively, “Reimbursements”) attributable to Operating Expenses or Real Property Taxes received by Landlord in a particular year shall be deducted from Operating Expenses or Real Property Taxes, as applicable, in the year the same are received; provided, however, if such practice is consistent with Institutional Owner Practices, Landlord may treat Reimbursements generally (or under particular circumstances) on a different basis.
6.2.2. As of the date of this Lease, Tenant shall pay Additional Rent under this Article 6 based on the Operating Expenses and Real Property Taxes for the Project. If the Project at any time contains more than one building, Landlord shall have the right, from time to time, to equitably allocate some or all of the Operating Expenses and/or Real Property Taxes for the buildings comprising the Project among the Building and some or all of the other buildings of the Project. In such event, Landlord shall reasonably determine a method of allocating such Operating Expenses and/or Real Property Taxes attributable to the Building and/or such other building(s) of the Project to the Building and/or such other building(s) and Tenant shall be responsible for paying its proportionate share of such expense(s) which are allocated to the Building. Landlord shall also have the right, from time to time, to require Tenant to pay Tenant’s Percentage of Operating Expenses and Real Property Taxes based solely on the Operating Expenses and Real Property Taxes for the Building.
Calculation Methods and Adjustments. 4.3.1 The variable components of Operating Expenses (“Variable Expenses”) for all or any portion of any Expense Year during which actual occupancy of the Building and/or the Project is less than one hundred percent (100%) of the Rentable Area of the Building and/or the Project with all tenants paying full rent as contrasted with free rent, half rent and the like shall be adjusted by Landlord, as determined in good faith by Landlord applying sound accounting and property management principles (and the provisions of this Lease) to reflect one hundred percent (100%) occupancy of the Rentable Area of the Building and/or the Project during such period with all tenants paying full rent as contrasted with free rent, half rent and the like. If during all or any part of any Expense Year, Landlord does not provide any particular Item of benefit, work or service (the cost of which is a Variable Expense) to portions of the Building and/or the Project due to the fact that such Item of benefit, work or service is not required or desired by the tenant of such space, or such tenant is itself obtaining and providing such Item of benefit, work or service, or for any other reason, then for purposes of computing Variable Expenses for such Expense Year, Operating Expenses shall be increased by an amount equal to the additional Variable Expenses which would have been paid or incurred by Landlord during such period if it had furnished such Item of benefit, work or service to such portions of the Building and/or the Project.
4.3.2 Subject to the provisions of this Section 4.3, all calculations, determinations, allocations and decisions to be made hereunder with respect to Operating Expenses or Property Taxes shall be made in accordance with the good faith determination of Landlord applying sound accounting and property management principles consistently applied which are consistent with the practices of the majority of the institutional owners of institutional grade first-class office projects in Los Angeles County, California (“Institutional Owner Practices”). Landlord shall have the right to equitably allocate some or all of Operating Expenses among particular classes or groups of tenants in the Building and/or the Project to reflect Landlord’s good faith determination that measurably different amounts or types of services, work or benefits associated with Operating Expenses are being provided to or conferred upon such classes or groups. Subject to the provisions of this Sectio...
Calculation Methods and Adjustments. 6.2.1 For purposes of calculating the Operating Expenses for any Expense Year during which the Project and/or Building is less than ninety-five percent (95%) leased, the components of Operating Expenses that vary with the leasing of the Project and/or Building (“Variable Expenses”) shall be adjusted by Landlord to reflect ninety-five percent (95%) leasing of the Rentable Square Feet of the Project and Building during such period. In addition, if during all or any part of any Expense Year Landlord does not provide any particular item of benefit, work or service (the cost of which is a Variable Expense) to portions of the Project or Building because such item of benefit, work or service is not required or desired by the tenant of the applicable space, or such tenant is itself obtaining and providing such item of benefit, work or service, or for any other reason, then for purposes of computing Variable Expenses for such year, Operating Expenses, shall be increased by an amount equal to the additional Variable Expenses which would have been paid or incurred by Landlord during such period if it had furnished such item of benefit, work or service to the applicable portions of the Project. Operating Expenses for the Base Year shall include market-wide cost increases due to extraordinary circumstances, including, but not limited to, Force Majeure, boycotts, strikes, conservation surcharges, embargoes or shortages, or amortized costs relating to Capital Items (such items to be known collectively as “Increases”); provided, however, that at such time as any such particular Increases are no longer included in Operating Expenses, such Increases shall be excluded from the Base Year calculation of Operating Expenses. In no event shall the components of Direct Expenses for any Expense Year related to Project insurance, security or utility costs be less than the components of Direct Expenses related to Project insurance, security or utility costs, respectively, in the Base Year.
Calculation Methods and Adjustments. 4.3.1 Variable Expenses (defined below) for all or any portion of any Expense Year (including the Base Year) during which actual occupancy of the Building or the Project, as applicable, is less than one hundred percent (100%) of the Rentable Area of the Building or the Project, as applicable, shall be adjusted by Landlord, as determined in good faith by Landlord applying sound accounting and property management principles (and the provisions of this Lease) to reflect one hundred percent (100%) occupancy of the Rentable Area of the Building or the Project, as applicable, during such period. If during all or any part of any Expense Year, including the Base Year, any particular item of benefit, work or service (the cost of which is a Variable Expense) is not provided to portions of the Building or the Project, as applicable, due to the fact that such item of benefit, work or service is not required or desired by the tenant of such space, or such tenant is itself obtaining and providing such item of benefit, work or service, or for any other reason, then for purposes of computing Variable Expenses for such Expense Year, Operating Expenses or Utility Costs, as applicable, shall be increased by an amount equal to the additional Variable Expenses which would have been paid or incurred during such period if such item of benefit, work or service had been provided to such portions of the Building or the Project, as applicable. "Variable Expenses" means the components of Operating Expenses and Utility Costs that vary based on the level of occupancy of the Building or Project, as applicable. [DBL:dblfMaguire Properties - SDrc - YoNaturals Lease/I 064.002] -5-