SHALL BE REDUCED TO AN AMOUNT EQUAL TO ONE MONTH'S MONTHLY BASE RENT
AT THE RATE PAYABLE UNDER THIS LEASE DURING THE TENTH RENT YEAR (THE "REDUCED
SECURITY DEPOSIT AMOUNT"), AND LANDLORD SHALL PROMPTLY RETURN TO TENANT THE
BALANCE OF THE SECURITY DEPOSIT WHICH EXCEEDS THE REDUCED SECURITY DEPOSIT
AMOUNT UPON TENANT'S REQUEST THEREFOR; PROVIDED, HOWEVER, THAT IN NO EVENT SHALL
ANY SUCH RETURN BE CONSTRUED AS AN ADMISSION BY LANDLORD THAT TENANT HAS
PERFORMED ALL OF ITS COVENANTS AND OBLIGATIONS HEREUNDER.
(D)
LETTER OF CREDIT.
IN LIEU OF A CASH SECURITY DEPOSIT, THE
SECURITY DEPOSIT MAY BE DELIVERED BY TENANT TO LANDLORD IN THE FORM OF AN
IRREVOCABLE AND UNCONDITIONAL LETTER OF CREDIT (THE "LETTER OF CREDIT") GOVERNED
BY THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS (1993 REVISIONS),
INTERNATIONAL
14
CHAMBER OF COMMERCE PUBLICATION NO. 500, AS REVISED FROM TIME TO TIME IN FORM
AND SUBSTANCE REASONABLY SATISFACTORY TO LANDLORD.
THE LETTER OF CREDIT SHALL
BE HELD AND APPLIED BY LANDLORD IN THE SAME MANNER AS A CASH SECURITY DEPOSIT AS
PROVIDED ABOVE IN SECTION 4.7(A) ABOVE AND ON THE TERMS AND CONDITIONS OF THIS
SECTION 4.7(D). THE LETTER OF CREDIT MAY BE DRAWN UPON BY LANDLORD UPON
PRESENTATION OF LANDLORD'S SIGHT DRAFT ACCOMPANIED BY THE LETTER OF CREDIT AND
LANDLORD'S SIGNED STATEMENT THAT TENANT IS IN DEFAULT UNDER THE LEASE AND
LANDLORD IS ENTITLED TO DRAW ON THE LETTER OF CREDIT PURSUANT TO THIS LEASE, AND
WITH NO OTHER CONDITIONS.
TENANT SHALL MAINTAIN THE LETTER OF CREDIT THROUGH
THE DATE WHICH IS THIRTY (30) DAYS FOLLOWING THE EXPIRATION OF THE TERM
(INCLUDING ANY EXTENSION THEREOF).
THE LETTER OF CREDIT SHALL BE ISSUED BY A
MAJOR COMMERCIAL BANK REASONABLY ACCEPTABLE TO LANDLORD.
THE LETTER OF CREDIT
SHALL EXPRESSLY STATE THAT THE LETTER OF CREDIT AND THE RIGHT TO DRAW THEREUNDER
MAY BE TRANSFERRED OR ASSIGNED BY LANDLORD TO ANY SUCCESSOR OR ASSIGNEE OF
LANDLORD UNDER THE LEASE WITHOUT RECOURSE, AND IN NO EVENT SHALL LANDLORD BE
REQUIRED TO PAY ANY FEES OR CHARGES IN CONNECTION WITH ANY SUCH TRANSFER.
THE
LETTER OF CREDIT SHALL PERMIT PARTIAL AND MULTIPLE DRAWS.
THE LETTER OF CREDIT
SHALL HAVE A TERM OF NOT LESS THAN ONE (1) YEAR AND PROVIDE THAT IT WILL BE
AUTOMATICALLY RENEWED UNLESS THE ISSUER PROVIDES LANDLORD WITH WRITTEN NOTICE OF
NON-RENEWAL AT THE NOTICE ADDRESS HEREIN AT LEAST SIXTY (60) DAYS PRIOR TO THE
EXPIRATION THEREOF.
IF TENANT FAILS TO FURNISH LANDLORD WITH A REPLACEMENT
LETTER OF CREDIT PURSUANT TO THE TERMS AND CONDITIONS OF THIS SECTION BY THE
DATE WHICH IS THAN THIRTY (30) DAYS PRIOR TO THE EXPIRATION OF THE LETTER OF
CREDIT, THEN LANDLORD SHALL HAVE THE RIGHT TO DRAW THE FULL AMOUNT OF THE LETTER
OF CREDIT, BY SIGHT DRAFT, AND SHALL HOLD THE PROCEEDS OF THE LETTER OF CREDIT
AS A CASH SECURITY DEPOSIT PURSUANT TO THE TERMS AND CONDITIONS OF THIS
SECTION 4.7. ANY DRAW ON THE LETTER OF CREDIT SHALL NOT CONSTITUTE A WAIVER OF
ANY OTHER RIGHTS OF