Circuit City 2005 Annual Report Download - page 132

(c) Special Abatement Period . Provided no default by Tenant exists under this Lease, Base Rent for the first
ninety (90) days of the Initial Term shall be abated and in lieu thereof Tenant shall pay to Landlord monthly Base Rent
in the amount of $81,207.33 per month.
(d) Determining Fair Market Base Rent .
Adjustment Percentage, which increases shall be compounded. The increased annual Base Rent shall constitute
the annual Base Rent due and payable until the next Adjustment Date throughout the First Renewal Term.
(v) Second Renewal Term . In the event that Tenant elects to renew the term of this Lease for the
Second Renewal Term, then during the Second Renewal Term, the Base Rent shall be equal to the greater of (A)
Fair Market Base Rent or (B) the then-current annual Base Rent payable immediately prior to the Second
Renewal Term increased by two and one-half percent (2.5%). Base Rent payable during the Second Renewal
Term shall be increased annually on each Adjustment Date by an amount equal to the product of the then-current
Base Rent being paid times the Adjustment Percentage, which increases shall be compounded. The increased
annual Base Rent shall constitute the annual Base Rent due and payable until the next Adjustment Date
throughout the Second Renewal Term.
(b) For purposes of this Article, the following definitions shall apply:
“Adjustment Date” shall mean the first anniversary of the Expansion Commencement Date and each
subsequent anniversary thereafter, including any Renewal Terms if Tenant exercises its option to renew pursuant
to Section 1.5.
“Adjustment Percentage”
shall mean the lesser of (A) the increase in the Consumer Price Index for the then
current Adjustment Date over the immediately preceding year, expressed as a percentage or (B) two and one-half
percent (2.5%) per annum; provided, however, the Adjustment Percentage shall not be less than zero.
“Consumer Price Index” shall mean the Revised Consumer Price Index for Urban Wage Earners and
Clerical Workers, All Items (base index year 1982-84=100), for Chicago, Gary, Lake County, IL-IN-WI, as
published by the United States Department of Labor, Bureau of Labor Statistics. If the manner in which the
Consumer Price Index is determined by the Bureau of Labor Statistics shall be substantially revised, including,
without limitation, a change in the base index year, an adjustment shall be made by Landlord in such revised
index which would produce results equivalent, as nearly as possible, to those which would have been obtained if
such Consumer Price Index had not been so revised. If the Consumer Price Index shall become unavailable to the
public because publication is discontinued, or otherwise, or if equivalent data is not readily available to enable
Landlord to make the adjustment referred to in the preceding sentence, then Landlord will substitute therefor a
comparable index based upon changes in the cost of living or purchasing power of the consumer dollar published
by any other governmental agency or, if no such index shall be available, then a comparable index published by a
major bank or other financial institution or by a university or a recognized financial publication.
(i) Landlord Proposal. In the event that Tenant has delivered a Renewal Notice, then, not later than
eleven (11) months prior to the last day of the Initial Term or the last day of the First Renewal Term,
as applicable, Landlord shall notify Tenant, in writing, of Landlord’s determination of Fair Market
Base Rent for the Demised Premises for the succeeding Renewal Term (“Landlord’s Fair Market
Rent Determination”). Within ten (10) days at the receipt of Landlord’s Fair Market Rent
Determination, Tenant shall advise Landlord, in writing, either that (A) Tenant accepts Landlord’s
Fair Market Rent Determination; or (B) Tenant chooses to have the Fair Market Base Rent for the
Demised Premises to be determined by appraisal. If Tenant accepts Landlord’s Fair Market Rent
Determination, the Fair Market Base Rent for the Demised Premises to be used in calculating Base
Rent during the succeeding Renewal Term shall be that set forth in Landlord’s Fair Market Rent
Determination. If Tenant fails so to notify Landlord within such ten (10)-day period, then Tenant
shall be deemed to have accepted Landlord’s Fair Market Rent Determination. However, if Tenant
does not accept (or is not deemed to have accepted) Landlord’s Fair Market Rent Determination, the
terms, provisions and conditions of Section 3.1 (d)(ii) hereof shall apply.
(ii) Appraisal . Subject to this Section 3.1(d)(ii), if Tenant does not accept (or is not deemed to have