Circuit City 1997 Annual Report Download - page 32

This PARAGRAPH 1 represents a summary of the basic terms of this lease. In the event of any inconsistency between the terms contained in
this PARAGRAPH 1 and any specific provision of this Lease, the terms of the more specific provision shall prevail.
2. PREMISES.
(a) Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the premises referenced in PARAGRAPH 1 and outlined in
EXHIBIT A (the "Premises"), consisting of that certain building (the "Building") AND THE EXCLUSIVE PARKING AND DELIVERY
AREAS APPURTENANT THERETO which is a part of the project described on EXHIBIT B (the "Project"). By entry on the Premises,
Tenant acknowledges that it has examined the Premises and accepts the Premises in their present condition, subject to any additional work
Landlord has agreed to perform pursuant to the provisions of this Lease.
(b) The parties agree that the letting and hiring of the Premises is upon and subject to the terms, covenants and conditions herein set forth and
Tenant covenants as a material part of the consideration for this Lease to keep and perform each and all of said terms, covenants and conditions
by it to be kept and performed and that this Lease is made upon the condition of such performance.
3. LEASE TERM.
The term of this Lease shall be for the period designated in Subparagraph 1(g) commencing on the commencement Date, and ending on the
Expiration Date as set forth in said Subparagraph 1(g), unless the term hereby demised shall be sooner terminated as herein provided ("Term").
Notwithstanding the foregoing, if the Commencement Date falls on any day other than the first day of a calendar month then the Term of this
Lease shall be measured from the first day of the month following the month in which the commencement Date occurs.
4. POSSESSION.
(a) DELIVERY OF POSSESSION. Landlord agrees to deliver possession of the Premises to Tenant upon the substantial completion of the
Tenant Improvements as determined by Landlord's architect or space planner in accordance with the terms of this Lease and the Work Letter
Agreement attached hereto as exhibit C. Notwithstanding the foregoing, Landlord shall not be obligated to deliver possession of the Premises
to Tenant until Landlord has received from Tenant all of the following: (i) the Security Deposit and first monthly installment of Annual Basis
Rent;
(ii) executed copies of policies of insurance of certificates thereof as required under Paragraph 18 of this Lease; (iii) copies of all governmental
permits and authorizations required in connection with Tenant's operation of its business upon the Premises; and (iv) an executed original of the
Hazardous Materials Questionnaire in the form attached hereto as Exhibit 1.
(b) CONDITION OF PREMISES. Prior to the Commencement Date and in accordance with the Work Schedule to be prepared by Landlord
and Tenant pursuant to the Work Letter Agreement attached hereto as Exhibit C, Landlord and Tenant shall jointly conduct a walk-through
inspection of the Premises and shall jointly prepare a list (the "Punch-List") of items needing additional work; provided, however, the Punch-
List shall be limited to items required to be installed by landlord under the Work Letter Agreement and the Punch-List will not include any
items of damage to the Premises caused by Tenant's move-in or early entry, if permitted. Damage caused by Tenant will be corrected or
repaired by Landlord, at Tenant's expense. Other than the items specified in the Punch-List, by taking possession of the Premises, Tenant will
be deemed to have accepted the Premises and the Building in their condition on the date of delivery of possession and to have acknowledged
that Landlord has installed the Tenant Improvements as required by the work Letter Agreement and that there are no additional items needing
work or repair. Landlord shall cause all items set forth in the Punch-List to be repaired or corrected within thirty (30) days following the
preparation of the Punch-List or as soon as reasonably practicable after the preparation of the Punch-List. Tenant acknowledges that neither
Landlord nor any agent of Landlord has made any representation or warranty with respect to the Premises, the Building, the Project or any
portions thereof or with respect to the suitability of same for the conduct of Tenant's business. Without limiting the foregoing, if the Building is
newly constructed or renovated, Tenant's execution of the Notice attached hereto as Exhibit D shall constitute a specific acknowledgment and
acceptance of the various start-up inconveniences that may be associated with the use of the Project and the Common Areas such as certain
construction obstacles including scaffolding, uneven air conditioning services and other typical conditions incident to recently constructed or
renovated buildings.
5. RENT.
(a) BASIC RENT. Tenant agrees to pay Landlord as Annual Basic Rent for the Premises the annual basic Rent designated in
SUBPARAGRAPH 1(I) (adjusted as hereinafter provided) in twelve (12) equal monthly installments as designated in Subparagraph 1(h), each
in advance on the first day of each and every calendar month during the Term, except that one month's rent shall be paid upon the execution of
this Lease. If the Term of this Lease commences on a day other than the first day of a calendar month or ends on a day other than the last day of
a calendar month, then the rent for such periods shall be prorated in the proportion that the number of days this Lease is in effect during such
periods bears to thirty days (30), and such rent shall b paid at the commencement of such period. In addition to the Annual Basic Rent, Tenant
agrees to pay additional rent as provided in PARAGRAPH 6 and the amount of all rental adjustments as and when hereinafter provided in this
Lease. The Annual Basic Rent, any additional rent payable pursuant to the provisions of this lease and any rental adjustments shall be paid to
Landlord, without any prior demand therefor, and without any deduction or offset whatsoever in lawful money of the United States of America,
which shall be legal tender at the time of payment, at the address of Landlord designated in SUBPARAGRAPH 1(C) or to such other person or
at such other place as Landlord may from time to time designate in writing. Further, all charges to be paid by Tenant hereunder, including,
without limitation, payments for real property taxes, insurance, repairs, and parking, if any, shall be considered additional rent for the purposes
of this Lease, and the word "rent" in this Lease shall include such additional rent unless the context specifically or clearly implies that only the