be prorated and
(ii) no Base Rent is due during the first three months of the Term.
B.
IN ADDITION, TENANT AGREES TO DEPOSIT WITH LANDLORD ON THE DATE
HEREOF (I) THE SUM OF FIFTY-THREE THOUSAND EIGHT HUNDRED SEVENTEEN AND 91/100
DOLLARS ($53,817.91) IN CASH ("CASH SECURITY DEPOSIT"), AND (II) A LETTER OF
CREDIT ("LETTER OF CREDIT") IN THE SUM OF ONE HUNDRED SEVENTY-FIVE THOUSAND AND
00/100 DOLLARS ($175,000.00) AND IN THE FORM ATTACHED HERETO AS EXHIBIT "I" AND
MADE A PART HEREOF ISSUED BY A FINANCIAL INSTITUTION REASONABLY ACCEPTABLE TO
LANDLORD, PROVIDED THE LETTER OF CREDIT IS PAYABLE UPON PRESENTATION FOR
COLLECTION AT A BRANCH LOCATION WITHIN THE CONTINENTAL UNITED STATES.
A LETTER
OF CREDIT SHALL BE MAINTAINED IN FULL FORCE AND EFFECT AT ALL TIMES DURING THE
TERM OF THIS LEASE.
THE LETTER OF CREDIT SHALL HAVE AN EXPIRATION DATE NO
EARLIER THAN THE LAST DAY OF THE TWELFTH (12TH) FULL MONTH FOLLOWING THE
COMMENCEMENT DATE AND SHALL BE RENEWED FOR SUCCESSIVE ONE-YEAR TERMS DURING THE
TERM OF THIS LEASE.
ALL RENEWALS OF THE LETTER OF CREDIT MUST BE DELIVERED TO
LANDLORD AT LEAST THIRTY (30) DAYS PRIOR TO THE EXPIRATION OF THE LETTER OF
CREDIT THEN IN EFFECT AND, IF SUCH RENEWALS ARE NOT SO TIMELY
2
DELIVERED TO LANDLORD, LANDLORD SHALL HAVE THE RIGHT TO PRESENT AND RECEIVE
PAYMENT ON THE THEN CURRENT LETTER OF CREDIT.
THE CASH SECURITY DEPOSIT AND THE
LETTER OF CREDIT ARE COLLECTIVELY REFERRED TO HEREIN AS THE "SECURITY DEPOSIT".
THE SECURITY DEPOSIT SHALL BE HELD BY LANDLORD AS SECURITY FOR THE PERFORMANCE
OF TENANT'S OBLIGATIONS UNDER THIS LEASE, IT BEING EXPRESSLY UNDERSTOOD AND
AGREED THAT THIS SECURITY DEPOSIT IS NOT AN ADVANCE RENTAL DEPOSIT OR A MEASURE
OF LANDLORD'S DAMAGES IN CASE OF TENANT'S DEFAULT.
UPON EACH OCCURRENCE OF AN
EVENT OF DEFAULT (HEREINAFTER DEFINED), LANDLORD MAY DRAW UPON THE LETTER OF
CREDIT AND USE ALL OR PART OF THE PROCEEDS THEREOF AND/OR USE ANY PORTION OF THE
CASH SECURITY DEPOSIT TO PAY PAST DUE RENT OR OTHER PAYMENTS DUE LANDLORD UNDER
THIS LEASE, AND THE COST OF ANY OTHER DAMAGE, INJURY, EXPENSE OR LIABILITY
CAUSED BY SUCH EVENT OF DEFAULT WITHOUT PREJUDICE IN ANY OTHER REMEDY PROVIDED
HEREIN OR PROVIDED BY LAW.
ON DEMAND, TENANT SHALL PAY LANDLORD THE AMOUNT THAT
WILL RESTORE THE SECURITY DEPOSIT TO ITS ORIGINAL AMOUNT.
THE SECURITY DEPOSIT
SHALL BE DEEMED THE PROPERTY OF LANDLORD, BUT ANY REMAINING BALANCE OF SUCH
SECURITY DEPOSIT SHALL BE RETURNED BY LANDLORD TO TENANT WHEN TENANT'S
OBLIGATIONS UNDER THIS LEASE HAVE BEEN FULFILLED.
C.
IN ADDITION TO BASE RENT AND TENANT'S OTHER OBLIGATIONS HEREUNDER,
TENANT AGREES TO PAY ITS PROPORTIONATE SHARE (AS DEFINED IN THE BASIC LEASE
INFORMATION) OF THE FOLLOWING COSTS AND EXPENSES (COLLECTIVELY, THE
"REIMBURSABLE EXPENSES"):
(I) TAXES (HEREINAFTER DEFINED) PAYABLE BY LANDLORD
PURSUANT TO PARAGRAPH 4A BELOW, (II) THE COST OF JOINTLY METERED UTILITIES
PAYABLE PURSUANT TO PARAGRAPH 9 BELOW, (III) THE COST OF MAINTAINING INSURANCE
PURSUANT TO PARAGRAPH 10A BELOW, (IV) COMMON AREA CHARGES