Common use of Variable Rent Clause in Contracts

Variable Rent. In addition to the Fixed Rent payable hereunder, Lessee agrees to pay the Lessor “Variable Rent” (plus all applicable sales tax). Variable Rent shall consist of those charges allocable to the Premises such as real estate taxes, casualty, liability and loss of rent insurance, common area maintenance expenses, common area utilities, landscape maintenance and pest control, Variable Rent shall be calculated based on a calendar year provided that if a lease year begins other than on January 1 and ends other than December 31, then said first or last lease year, as the may be, shall be prorated accordingly with respect to determining the amount of Variable Rent payable for said partial lease year. During each lease year, Lessee shall pay to Lessor on the first day of each calendar month thereof, together with the monthly installment of Fixed Rent, an amount equal to 1/12 of the estimated amount of Variable Rent. The estimate for 2005 shall be based on the information shown in Exhibit “C” attached hereto and made a part hereof. As soon after the end of said calendar year as practical, Lessor shall deliver to the Lessee a statement showing the actual amount paid by the Lessor for the expenses included in Variable Rent and, to the extent that said actual amount of Variable Rent apply to Lessee, Lessee shall pay, within ten days after receipt of said statement, the excess amount of Variable Rent due Lessor. In the event that Lessee’s estimated payments exceed the actual amount of Variable Rent, then Lessor shall grant the Lessee a credit equal to said excess to be applied against the next payment of Lessee’s monthly payment of Fixed and Variable Rent. Lessee’s estimated monthly payments of Variable Rent shall be adjusted as of January 1 of each year to reflect an amount equal to 1/12 of the actual Variable Rent payable by Lessee to Lessor pursuant to the provisions hereof for the preceding calendar year adjusted by any increases or decreases in said expenses which can be definitely ascertained for the succeeding year. Lessee’s obligation to pay Variable Rent hereunder shall be treated with the same dignity as Lessee’s obligation to pay Fixed Rent hereunder and Lessor shall have all rights and remedies provided for in this Lease in the event Lessee fails to pay the Variable Rent.

Variable Rent. In addition to the Fixed Rent payable hereunder, Lessee agrees to pay the Lessor “Variable Rent” (plus all applicable sales tax). i) The Variable Rent shall consist of those charges allocable to the Premises such as real estate taxes, casualty, liability and loss of rent insurance, common area maintenance expenses, common area utilities, landscape maintenance and pest control, Variable Rent shall be calculated based on a calendar year provided that if a lease year begins other than on January 1 and ends other than December 31, then said first or last lease year, as the may be, shall be prorated accordingly with respect to determining the amount of Variable Rent payable for said partial lease year. During each lease year, Lessee shall pay to Lessor on the first day of each calendar month thereof, together with the monthly installment of Fixed Rent, an amount equal to 1/12 of the estimated amount of Variable Rent. The estimate for 2005 Leased System shall be based on the information shown in Exhibit “C” attached hereto and Key Cards delivered for use with respect to the Leased System. The Variable Rent shall be equal to $25 for each BriteSmile Procedure that would be able to be performed on such System by fully using all Key Cards delivered during the preceding month for use with such System or $125 for each standard 5-Procedure Key Card that is delivered. Payment of such Variable Rent shall be made a part hereof. As soon after on the 40/th/ day following the end of said calendar year as practical, Lessor shall deliver to the Lessee a statement showing month in which delivery of such Key Cards occurred. (ii) Notwithstanding the actual amount paid by the Lessor for the expenses included in Variable Rent and, to the extent that said actual amount of Variable Rent apply to Lessee, Lessee shall pay, within ten days after receipt of said statementforegoing, the excess amount payment of Variable Rent due Lessorwith respect to Key Cards delivered in any month during the calendar year 2002 shall not be made on the 40/th/ day following the end of the month in which delivery of the Key Cards occurred. In the event that Lessee’s estimated payments exceed the actual amount of Variable Rent, then Lessor shall grant the Lessee a credit equal to said excess to be applied against the next Instead payment of Lessee’s monthly payment of Fixed and Variable Rent. Lessee’s estimated monthly payments of such Variable Rent shall be adjusted as deferred, and payment of January 1 the aggregate amount of the Variable Rent due with respect to all Key Cards delivered in all months during the calendar year 2002 (the "Total Deferred 2002 Variable Rent") shall be made in twelve equal monthly installments on the 9/th/ day of each month during the calendar year 2003, commencing with January 9, 2003. (iii) In addition to reflect an amount equal the payments required to 1/12 be made under Section 4(c)(ii), BriteSmile shall pay EVL interest at the Prescribed Rate, as hereinafter defined, on so much of the actual Total Deferred 2002 Variable Rent payable by Lessee as has accrued and remains due but unpaid from time to Lessor pursuant to time from and after March 12, 2002. For the provisions hereof for purposes of the preceding calendar year adjusted by any increases or decreases in said expenses which can be definitely ascertained for the succeeding year. Lessee’s obligation to pay interest calculations under this subsection (iii), Variable Rent hereunder included in Total Deferred 2002 Variable Rent shall be treated deemed to accrue on the date that payment of such Variable Rent would be required to be made under Section 4(c)(i) without giving effect to Section 4(c)(ii). All such interest that accrues from March 12, 2002 to January 8, 2003 shall be paid on January 9, 2003. Thereafter such accrued interest shall be payable on the 9/th/ day of each month together with the same dignity payments of Total Deferred 2002 Variable Rent as Lessee’s obligation to pay Fixed Rent hereunder and Lessor shall have all rights and remedies provided for in this Lease in the event Lessee fails to pay the Variable RentSection 4(c)(ii).

Variable Rent. In addition to the Fixed Rent payable hereunder, Lessee agrees to pay the Lessor “Variable Rent” (plus all applicable sales tax). i) The Variable Rent shall consist of those charges allocable to the Premises such as real estate taxes, casualty, liability and loss of rent insurance, common area maintenance expenses, common area utilities, landscape maintenance and pest control, Variable Rent shall be calculated based on a calendar year provided that if a lease year begins other than on January 1 and ends other than December 31, then said first or last lease year, as the may be, shall be prorated accordingly with respect to determining the amount of Variable Rent payable for said partial lease year. During each lease year, Lessee shall pay to Lessor on the first day of each calendar month thereof, together with the monthly installment of Fixed Rent, an amount equal to 1/12 of the estimated amount of Variable Rent. The estimate for 2005 Leased System shall be based on the information shown in Exhibit “C” attached hereto and Key Cards delivered for use with respect to the Leased System. The Variable Rent shall be equal to $25 for each BriteSmile Procedure that would be able to be performed on such System by fully using all Key Cards delivered during the preceding month for use with such System or $125 for each standard 5-Procedure Key Card that is delivered. Payment of such Variable Rent shall be made a part hereof. As soon after on the 40th day following the end of said calendar year as practical, Lessor shall deliver to the Lessee a statement showing month in which delivery of such Key Cards occurred. (ii) Notwithstanding the actual amount paid by the Lessor for the expenses included in Variable Rent and, to the extent that said actual amount of Variable Rent apply to Lessee, Lessee shall pay, within ten days after receipt of said statementforegoing, the excess amount payment of Variable Rent due Lessorwith respect to Key Cards delivered in any month during the calendar years 2002 and 2003 shall not be made on the 40th day following the end of the month in which delivery of the Key Cards occurred. In the event that Lessee’s estimated payments exceed the actual amount of Variable Rent, then Lessor shall grant the Lessee a credit equal to said excess to be applied against the next Instead payment of Lessee’s monthly payment of Fixed and Variable Rent. Lessee’s estimated monthly payments of such Variable Rent shall be adjusted deferred, and payment of the aggregate amount of the Variable Rent due with respect to all Key Cards delivered in all months during the calendar year 2002 (the "Total Deferred 2002 Variable Rent") and in all months during the calendar year 2003 (the "Total Deferred 2003 Variable Rent") shall be made on January 1, 2004. (iii) In addition to the payments required to be made under Section 4(c)(ii), BriteSmile shall pay EVL interest at the Prescribed Rate, as hereinafter defined, on so much of the Total Deferred 2002 Variable Rent and on so much of the Total Deferred 2003 Variable Rent as has accrued and remains due but unpaid from time to time from and after March 12, 2002, in the case of Total 2002 Variable Rent, and March 12, 2003, in the case of Total 2003 Variable Rent. For the purposes of the interest calculations under this subsection (iii), Variable Rent included in Total Deferred 2002 Variable Rent and in Total Deferred 2003 Variable Rent shall be deemed to accrue on the date that payment of such Variable Rent would be required to be made under Section 4(c)(i) without giving effect to Section 4(c)(ii). All such interest that accrues from March 12, 2002 to January 1 8, 2003 on account of Total Deferred 2002 Variable Rent shall be paid on January 9, 2003. Thereafter such accrued interest on account of Total Deferred 2002 Variable Rent shall be payable on the 9th day of each year to reflect an amount equal to 1/12 month through December 9, 2003 and on January 1, 2004. All such interest that accrues on account of the actual Total Deferred 2003 Variable Rent payable by Lessee to Lessor pursuant to the provisions hereof for the preceding calendar year adjusted by any increases or decreases in said expenses which can be definitely ascertained for the succeeding year. Lessee’s obligation to pay Variable Rent hereunder shall be treated with paid on the same dignity as Lessee’s obligation to pay Fixed Rent hereunder 9th day of each month commencing April 9, 2003 through December 9, 2003 and Lessor shall have all rights and remedies provided for in this Lease in the event Lessee fails to pay the Variable Renton January 1, 2004.