Circuit City 1997 Annual Report Download - page 33

Annual Basic Rent is referenced. Annual Basic Rent shall be adjusted as provided in SUBPARAGRAPH 1(I).
(b) LATE PAYMENTS. Tenant acknowledges that late payment by Tenant to Landlord of any rent or other sums due under this Lease will
cause Landlord to incur costs not contemplated by this Lease, the exact amount of such costs being extremely difficult and impracticable to
ascertain. Such costs include, without limitation, processing and accounting charges and late charges and late charges that may be imposed on
Landlord by the terms of any encumbrance or note secured by the Premises. Therefore, if any rent or other sum due from Tenant is not received
WITHIN FIVE (5) BUSINESS DAYS OF THE DATE when due, Tenant shall pay to landlord immediately thereafter an additional sum equal
to FIVE PERCENT (5%) of such overdue payment. Landlord and Tenant hereby agree that such late charge represents a fair and reasonable
estimate of the costs that Landlord will incur by reason of any such late payment. Additionally, all such delinquent rent or other sums, plus this
late charge, shall bear interest at the then maximum lawful rate permitted to be charged by Landlord. Any payments of any kind returned for
insufficient funds will be subject to an additional handling charge of $25.00.
(c) COST OF LIVING RENT ADJUSTMENT. Annual Basic Rent, including all prior adjustments, shall be increased (but never decreased)
effective each thirty (30) month anniversary of the Commencement Date of this Lease or each anniversary of the first day of the month
immediately following the month in which the Commencement Date occurs if the Commencement date occurs other than on the first day of a
month ("Adjustment Date"), in accordance with the percentage increase, if any, in the Index described in SUBPARAGRAPH 1(L)1 as
published by the United States Department of Labor, Bureau of Labor Statistics ("Bureau"). The Index most recently published prior to the
Adjustment date shall be compared with the Index for the same month of the preceding period and the Annual Basic Rent shall be increased in
accordance with the percentage increase, if any, between such Indices. Should the Bureau discontinue the publication of the Index, or publish
the same less frequently, or alter the same in some other manner, Landlord, in its discretion, shall adopt a substitute index or procedure with
reasonably reflects and monitors consumer prices.
6. PREPAID RENT.
Upon execution of this Lease, Tenant shall pay to Landlord the Prepaid Rent set forth in SUBPARAGRAPH 1(K), and if Tenant is not in
default of any provisions of this Lease, such Prepaid Rent shall be applied toward the rent due for the FIRST month of the Term. Landlord's
obligation with respect to the Prepaid Rent are those of a debtor and not of a trustee, and Landlord can commingle the Prepaid Rent with
Landlord's general funds. Landlord shall not be required to pay Tenant interest on the Prepaid Rent. Landlord shall be entitled to immediately
endorse and cash Tenant's Prepaid Rent; however, such endorsement and cashing shall not constitute Landlord's acceptance of this Lease. In
the event Landlord does not accept this Lease, Landlord shall return said Prepaid Rent. If Landlord sells the Premises and deposits with the
purchaser the Prepaid Rent, landlord shall be discharged from any further liability with respect to the Prepaid Rent.
7. SECURITY DEPOSIT.
Upon execution of this Lease, Tenant shall deposit the Security Deposit set forth in SUBPARAGRAPH 1(L) with Landlord, as security for the
performance by Tenant of the provisions of this Lease. If Tenant is in default, regardless if such default is monetary or non-
monetary. Landlord
can use the Security Deposit or any portion of it to cure the default or to compensate Landlord for any damages sustained by Landlord resulting
from Tenant's default. Upon demand, Tenant shall immediately pay to Landlord a sum equal to the portion of the Security Deposit expended or
applied by Landlord to maintain the Security Deposit in the amount initially deposited with Landlord. If Tenant is not in default at the
expiration or termination of this Lease, Landlord shall return the entire Security Deposit to Tenant. Landlord's obligations with respect to the
Security Deposit are those of a debtor and not a trustee, and Landlord can commingle the Security Deposit with landlord's general funds.
Landlord shall not be required to pay Tenant interest on the Security Deposit. Landlord shall be entitled to immediately endorse and cash
Tenant's Security Deposit; however, such endorsement and cashing shall not constitute landlord's acceptance of this Lease. In the event
Landlord does not accept this Lease, Landlord shall return said Security Deposit. If Landlord sells the Premises and deposits with the purchaser
the then amount of the Security Deposit, Landlord shall be discharged from any further liability with respect to the Security Deposit.
8. USE OF PREMISES AND PROJECT FACILITIES.
(a) TENANT'S USE OF THE PREMISES. Tenant shall use the Premises for the use or uses set forth in SUBPARAGRAPH 1(D) above, and
shall not use or permit the Premises to be used for any other purpose without the prior written consent of Landlord, which consent Landlord
may withhold in its sole and absolute discretion. Nothing contained herein shall be deemed to give Tenant any exclusive right to such use in the
Project.
(b) COMPLIANCE. At Tenant's sole cost and expense, Tenant shall procure, maintain and hold available for Landlord's inspection, all
governmental licenses and permits required for the proper and lawful conduct of Tenant's business from and at the Premises. Tenant shall
maintain the Premises in compliance with any and all CC&Rs and all laws, statutes, zoning restrictions, ordinances or governmental laws,
rules, regulations or requirements of any duly constituted public authority having jurisdiction over the Premises now or hereafter in force, the
requirements of the Board of Fire Underwriters or any other similar body now or hereafter constituted, or of the Certificate of Occupancy
issued for the Building. Tenant shall not use or occupy the Premises in violation of any of the foregoing. Tenant shall, upon written notice from
landlord, discontinue any use of the Premises which is declared by any authority having jurisdiction over the Premises, governmental or
otherwise, to be a violation of law or of said Certificate of Occupancy. NOTWITHSTANDING THE FOREGOING, TENANT
SHALL HAVE THE RIGHT TO CONTEST SUCH DECLARATION SO LONG AS SAME SHALL STAY THE ENFORCEMENT OF ANY
PROCEEDING AND NOT RESULT IN ANY PECUNIARY LOSS TO LANDLORD. Tenant shall comply with all rules, orders, regulations
and requirements of any insurance authority having jurisdiction over the Project or any present or future insurer relating to the Premises or the
Project. Tenant shall promptly, upon demand, reimburse Landlord for any additional premium charged for any existing insurance policy or