Circuit City 2005 Annual Report Download - page 75

4. Base Rent
. Tenant shall pay to Landlord at the address set forth in Section 1(n), as base rent for the Demised
Premises, commencing on the Base Rent Commencement Date and continuing throughout the Term in lawful money of
the United States, the annual amount set forth in Section 1(d) payable in equal monthly installments as set forth in
Section 1(e) (the “Base Rent”), payable in advance, without demand and without abatement, reduction, set-off or
deduction, on the first day of each calendar month during the Term. If the Base Rent Commencement Date shall fall on
a day other than the first day of a calendar month, the Base Rent shall be apportioned pro rata on a per diem basis for
the resulting Fractional Month (which pro rata payment shall be due and payable on the Base Rent Commencement
Date). No payment by Tenant or receipt by Landlord of rent hereunder shall be deemed to be other than on account of
the amount due, and no endorsement or statement on any check or any letter accompanying any check or payment of
rent shall be deemed an accord and satisfaction, and Landlord may accept such check as payment without prejudice to
Landlord’
s right to recover the balance of such installment or payment of rent or pursue any other remedies available to
Landlord.
5. Reserved .
6. Operating Expenses and Additional Rent .
(a) Tenant agrees to pay as Additional Rent (as defined in Section 6(b) below) its proportionate share of
Operating Expenses (as hereinafter defined). “Operating Expenses” shall be defined as all reasonable expenses for
operation, repair, replacement and maintenance as necessary to keep the Building and the common areas, driveways,
and parking areas associated therewith (collectively, the “Building Common Area”) fully operational and in good
order, condition and repair, including but not limited to, utilities for the Building Common Area, expenses associated
with the driveways and parking areas (including sealing and restriping, and trash removal), security systems, fire
detection and prevention systems, lighting facilities, landscaped areas, walkways, painting and caulking, directional
signage, curbs, drainage strips, sewer lines, all charges assessed against or attributed to the Building pursuant to any
applicable easements, covenants, restrictions, agreements, declaration of protective covenants or development
standards, all real property taxes and special assessments imposed upon the Building, the Building Common Area and
the land on which the Building and the Building Common Area are constructed, all costs of insurance paid by Landlord
with respect to the Building and the Building Common Area (including, without limitation, commercially reasonable
deductibles), and costs of improvements to the Building and the Building Common Area required by any law,
ordinance or regulation applicable to the Building and the Building Common Area generally (and not because of the
particular use of the Building or the Building Common Area by a particular tenant), which cost shall be amortized on a
straight line basis over the useful life of such improvement, as reasonably determined by Landlord. Operating Expenses
shall not include expenses for the costs of any maintenance and repair required to be performed by Landlord at its own
expense under Section (10)(b). Further, Operating Expenses shall not include (i) property management fees or (ii) the
costs for capital improvements unless such costs are incurred for the purpose of causing a material decrease in the
Operating Expenses of the Building or the Building Common Area (in which case such costs shall be amortized on a
straight line basis over the useful life of such capital improvement, as reasonably determined by Landlord or are
incurred with respect to improvements made to comply with laws, ordinances or regulations as described above. The
proportionate share of Operating Expenses to be paid by Tenant shall be a percentage of the Operating Expenses based
upon the proportion that the square footage of the Demised Premises bears to the total square footage of the Building
(such figure referred to as “Tenant’s Operating Expense Percentage” and set forth in Section 1(j)); provided that, as to
management fees, Tenant shall pay Landlord the management fees directly attributable to the Rent (as hereinafter
defined) payable hereunder with respect to the Demised Premises, and not Tenant’s Operating Expense Percentage of
the management fees payable on the entire Building. Notwithstanding the foregoing, Landlord shall, in Landlord’s
reasonable discretion, have the right to adjust Tenant’s proportionate share of individual components of Operating
Expenses if Tenant’s Operating Expense Percentage thereof would not equitably allocate to Tenant its share of such
component of Operating Expenses in light of Tenant’s particular use of, manner of use of and/or level of tenant
improvements in the Demised Premises. Prior to or promptly after the beginning of each calendar year during the Term,
Landlord shall estimate the total amount of Operating Expenses to be paid by Tenant during each such calendar year
and Tenant shall pay to Landlord one-twelfth (1/12) of such sum on the first day of each calendar month during each
such calendar year, or part thereof, during the Term. Within a reasonable time after the end of each calendar year,
Landlord shall submit to Tenant an itemized statement of the actual amount of Operating Expenses for such calendar
year, and the actual amount owed by Tenant, and within thirty (30) days after receipt of such statement, Tenant shall
pay any deficiency between the actual amount owed and the estimates paid during such calendar year, or in the event of
overpayment, Landlord shall credit the amount of such overpayment toward the next installment of Operating Expenses