CompUSA 2014 Annual Report Download - page 77

4.
Base Rent
. Tenant shall pay Base Rent in the amount set forth on Page 1 of this Lease. The first month's Base Rent, the
Final
Month Gross Rent Deposit (the “Final Deposit”) ,
and the first monthly installment of estimated Operating Expenses (as hereafter defined) shall
be due and payable on the date hereof, and Tenant promises to pay to Landlord in advance, without demand, deduction or set-
off (except as may
be expressly provided in this Lease), monthly installments of Base Rent on or before the first day of each calendar month succeeding the
Commencement Date. For clarification purposes, payment of the first month’
s Base Rent payable on the date hereof shall be credited against the
first full monthly installment of Base Rent due and payable under this Lease after the Commencement Date and free Base Rent period(s)
.
Payments of Base Rent for any fractional calendar month shall be prorated. All payments required to be made by Tenant to Landlord hereunder
(or to such other party as Landlord may from time to time specify in writing) shall be made by check or by Electronic Fund Transfer (“EFT”)
of
immediately available federal funds before 11:00 a.m., Eastern Time at such place, within the continental United States, as Landlord may from
time to time designate to Tenant in writing
. The obligation of Tenant to pay Base Rent and other sums to Landlord and the obligations of
Landlord under this Lease are independent obligations. Tenant shall have no right at any time to abate, reduce, or set-
off any rent due hereunder
except as may be expressly provided in this Lease. If Tenant is delinquent in any monthly installment of Base Rent or of Operating Expenses
beyond 5 business days after the due date thereof, and after notice as provided below, Tenant shall pay to Landlord on demand a late charge
equal to 5 percent of such delinquent sum. Tenant shall not be obligated to pay the late charge until Landlord has given Tenant 5 business days
written notice of the delinquent payment (which may be given at any time during the delinquency); provided, however, that such notice shall not
be required more than once in any 12-
month period. The provision for such late charge shall be in addition to all of Landlord's other rights and
remedies hereunder or at law and shall not be construed as a penalty or as limiting Landlord's remedies in any manner.
5.
Final Deposit
. The Final Deposit shall be held by Landlord as security for the performance of Tenant's obligations under this
Lease. Upon each occurrence of an Event of Default (hereinafter defined), Landlord may use all or part of the Final Deposit to pay delinquent
payments due under this Lease, and the cost of any damage, injury, expense or liability caused by such Event of Default, without prejudice to
any other remedy provided herein or provided by law. Tenant shall pay Landlord on demand the amount that will restore the Final Deposit to its
original amount. No interest shall accrue on the Final Deposit. Landlord shall not be required to keep all or any part of the Final Deposit
separate from its general accounts. Landlord shall be released from any obligation with respect to the Final Deposit upon transfer of this Lease,
the Final Deposit, and the Premises to a person or entity assuming Landlord's obligations under this Paragraph 5.
6.
Operating Expense Payments
. During each month of the Lease Term, on the same date that Base Rent is due, Tenant shall pay
Landlord an amount equal to 1/12 of the annual cost, as estimated by Landlord from time to time, of Tenant's Proportionate Share (hereinafter
defined) of Operating Expenses for the Project. Payments thereof for any fractional calendar month shall be prorated. The term "Operating
Expenses" means all costs and expenses incurred by Landlord with respect to the ownership, maintenance, and operation of the Project
including, but not limited to costs of: Taxes (hereinafter defined) and reasonable fees payable to tax consultants and attorneys for consultation
and contesting taxes; insurance; utilities; maintenance, repair and replacement of all portions of the Project, including without limitation, paving
and parking areas, roads, non-structural components of the roofs
(including the roof membrane but subject to the Roof Warranty defined in
Paragraph 2 of this Lease)
, alleys, and driveways, mowing, landscaping, exterior painting, utility lines, heating, ventilation and air conditioning
systems, lighting, electrical systems and other mechanical and building systems; amounts paid to contractors and subcontractors for work or
services performed in connection with any of the foregoing; charges or assessments of any association to which the Project is subject; property
management fees payable to a property manager, including any affiliate of Landlord, or if there is no property manager, an administration fee of
10 percent of Operating Expenses payable to Landlord (provided, however, Tenant’
s Proportionate Share of property management fees or
administration fees, as the case may be, shall not exceed 2.25 percent of gross rent (Base Rent plus Operating Expenses) payable by Tenant);
security services, if any; trash collection, sweeping and removal; and additions or alterations made by Landlord to the Project or the Building in
order to comply with Legal Requirements (other than those expressly required herein to be made by Tenant) or that are appropriate to the
continued operation of the Project or the Building as a bulk warehouse facility in the market area, provided that the cost of additions or
alterations that are required to be capitalized for federal income tax purposes shall be amortized on a straight line basis over a period equal to the
lesser of the useful life thereof for federal income tax purposes or 10 years. Operating Expenses do not include costs, expenses, depreciation or
amortization for capital repairs and capital replacements required to be made by Landlord under Paragraph 10 of this Lease, debt service under
mortgages or ground rent under ground leases, costs of restoration to the extent of net insurance proceeds received by Landlord with respect
thereto, leasing commissions, the costs of renovating space for tenants (including, without limitation, Tenant), any costs covered by the Roof
Warranty, any costs incurred by Landlord to correct latent defects arising from the initial construction of the Building, or any amount paid by
Landlord or to the parent organization or a subsidiary or affiliate of Landlord for supplies and/or services in the Project to the extent the same
exceeds the cost of such supplies and/or services rendered by qualified, first class unaffiliated third parties on a competitive basis.
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