Common use of Calculation Methods and Adjustments Clause in Contracts

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.