Common use of OPERATING EXPENSE ADJUSTMENTS Clause in Contracts

OPERATING EXPENSE ADJUSTMENTS. Notwithstanding any other provision to the contrary, it is agreed that if the Building is less than one-hundred percent (100%) occupied during any calendar year, an adjustment shall be made by Landlord with respect to such Operating Expenses that vary with occupancy for such year so that Tenant’s Share of Operating Expenses shall be equivalent to the Operating Expenses calculated as though the Building had been one hundred percent (100%) occupied during such year. In addition, if the Operating Expenses in any year other than the Base Year increase due to a change of policy or practice in operating the Building, such as a determination to carry earthquake insurance or provide 24-hour security guard service, such increase shall be included in Operating Expenses only to the extent of the increase in cost over the projected costs that would have been included in Operating Expenses for the Base Year if such policy or practice had been in effect during the entire Base Year. Conversely, if the Operating Expenses in any year other than the Base Year decrease due to an elimination of the service underlying the Operating Expense, then the cost of such service shall be deleted from the Base Year Operating Expenses for purposes of determining the Operating Expenses payable for subsequent years that the service is not included; provided, however, in no event shall the amount payable by Tenant as an Expense Increase attributable to Operating Expenses decrease below zero. Adjustments to Operating Expenses and Property Taxes shall be determined separately, and a reduction in the aggregate amount of Operating Expenses or Property Taxes in any calendar year shall not be applied to reduce any increase otherwise applicable to the other category. Tenant shall not be entitled to any reduction, refund, offset, allowance or rebate in Base Rent due hereunder if Operating Expenses or Property Taxes for any calendar year following the applicable Base Year are less than Operating Expenses and Property Taxes incurred relating to Operating Expenses and/or Property Taxes, as applicable, during the applicable Base Year.

OPERATING EXPENSE ADJUSTMENTS. If less than ninety-five percent (95%) of the Building's Rentable Square Feet shall have been occupied by tenants at any time during the Base Year or any Adjustment Year, as the case may be, then Landlord shall make an appropriate adjustment of Operating Expenses for such Base Year or Adjustment Year, as applicable, employing sound accounting and management principles, to determine the Operating Expenses that would have been paid or incurred by Landlord had the Building been ninety-five percent (95%) rented and occupied for the entire Base Year or Adjustment Year, as the case may be, and the amount determined shall be deemed to have been the Operating Expenses for such Base Year or Adjustment Year. If Landlord is not furnishing any particular work or service (the cost of which if performed by Landlord would constitute an Operating Expense) to a tenant who has, with the prior written consent of Landlord, undertaken to perform such work or service in lieu of the performance thereof by Landlord for all or any portion of a Base Year or Adjustment Year, Operating Expenses for such Base Year or Adjustment Year, as applicable, shall be deemed to be increased by an amount equal to the additional Operating Expenses which reasonably would have been incurred during such Base Year or Adjustment Year by Landlord if it had, at its own expense, furnished such work or service to such tenant. Notwithstanding any other provision anything contained herein to the contrary, it is agreed that if the Building is less than one-hundred percent (100%) occupied during any calendar year, an adjustment shall be made by Landlord provisions of this Section with respect to such Operating Expenses that vary with occupancy for such year so that Tenant’s Share adjustment of Operating Expenses shall be equivalent to the Operating Expenses calculated as though the Building had been one hundred percent (100%) occupied during such year. In addition, if the Operating Expenses in any year other than the Base Year increase due to a change of policy for vacancy or practice in operating the Building, such as a determination to carry earthquake insurance or provide 24-hour security guard service, such increase shall be included in Operating Expenses only to the extent result of the increase in cost over the projected costs that would have been included in Operating Expenses for the Base Year if such policy or practice had been in effect during the entire Base Year. Conversely, if the Operating Expenses in any year other than the Base Year decrease due to an elimination performance by tenants of the service underlying the Operating Expense, then the cost of such service certain services shall be deleted from the Base Year Operating Expenses for purposes of determining the Operating Expenses payable for subsequent years that the service is not included; provided, however, in no event shall the amount payable by Tenant as an Expense Increase attributable apply only to Operating Expenses decrease below zero. Adjustments which are variable and which increase as occupancy in the Building increases and shall not apply to any Operating Expenses and Property Taxes shall be determined separately, and a reduction which do not vary with the amount of occupancy in the aggregate amount of Operating Expenses or Property Taxes in any calendar year shall not be applied to reduce any increase otherwise applicable to the other category. Tenant shall not be entitled to any reduction, refund, offset, allowance or rebate in Base Rent due hereunder if Operating Expenses or Property Taxes for any calendar year following the applicable Base Year are less than Operating Expenses and Property Taxes incurred relating to Operating Expenses and/or Property Taxes, as applicable, during the applicable Base YearBuilding.