OF TENANT'S SHARE OF THE
ANNUAL AMOUNT THEREOF.
ALL ADDITIONAL RENT WHICH IS PAYABLE TO LANDLORD SHALL
BE PAID AT THE TIME AND PLACE THAT BASE RENT IS PAID.
FOR THE AVOIDANCE OF
DOUBT, LANDLORD WILL DRAW UPON THE LETTER OF CREDIT EACH MONTH ON THE SAME DAY
THAT BASE RENT IS DRAWN IN AN AMOUNT EQUAL TO THE ADDITIONAL RENT THEN DUE
(INCLUDING, IF APPLICABLE, THE 2004 PAYMENT AND THE 2005 PAYMENT), PROVIDED THAT
IF LANDLORD DELIVERS THE NOTICE DESCRIBED IN SECTION 4.2(A), TENANT SHALL PAY
THE ADDITIONAL RENT TO LANDLORD IN THE SAME MANNER AS BASE RENT.
LANDLORD WILL
HAVE THE SAME REMEDIES FOR A DEFAULT IN THE PAYMENT OF ANY ADDITIONAL RENT AS
FOR A DEFAULT IN THE PAYMENT OF BASE RENT.
TOGETHER, BASE RENT AND ADDITIONAL
RENT ARE SOMETIMES REFERRED TO IN THIS LEASE AS "RENT".
THERE SHALL BE NO
9
ABATEMENT OF, DEDUCTION FROM, COUNTERCLAIM OR SETOFF AGAINST RENT EXCEPT AS
OTHERWISE SPECIFICALLY PROVIDED IN THIS LEASE.
4.5
LATE PAYMENT.
ANY UNPAID RENT SHALL BEAR
INTEREST FROM THE DATE DUE UNTIL PAID AT THE LESSER OF (I) FIFTEEN PERCENT (15%)
PER ANNUM OR (II) THE MAXIMUM INTEREST RATE ALLOWED BY LAW (THE "INTEREST
RATE").
TENANT AGREES THAT THE INTEREST CHARGE PROVIDED FOR HEREIN IS EQUAL TO
OR LESS THAN A REASONABLE ESTIMATE OF THE ADDITIONAL ADMINISTRATIVE COSTS AND
DETRIMENT THAT WILL BE INCURRED BY LANDLORD AS A RESULT OF THE FAILURE BY TENANT
TO PAY RENT IN A TIMELY MANNER.
IN THE EVENT OF NONPAYMENT OF INTEREST ON
OVERDUE RENT, LANDLORD SHALL HAVE, IN ADDITION TO ALL OTHER RIGHTS AND REMEDIES,
THE RIGHTS AND REMEDIES PROVIDED IN THIS LEASE AND BY LAW FOR NONPAYMENT OF
RENT.
4.6
COVENANT.
TENANT COVENANTS TO PAY (A) RENT
WHEN DUE AND (B) OBSERVE AND PERFORM AND NOT TO SUFFER OR PERMIT ANY VIOLATION
OF TENANT'S OBLIGATIONS UNDER THIS LEASE.
4.7
CREDIT ENHANCEMENT.
(A)
ON OR PRIOR TO THE
COMMENCEMENT DATE, TENANT SHALL DELIVER TO LANDLORD A LETTER OF CREDIT AS
SECURITY FOR THE FULL AND PUNCTUAL PERFORMANCE BY TENANT OF ALL OF THE TERMS OF
THIS LEASE.
FOR SO LONG AS THE LETTER OF CREDIT IS IN EFFECT AND SUFFICIENT
FUNDS THEREUNDER SHALL BE AVAILABLE FOR DRAW, LANDLORD SHALL BE ENTITLED TO DRAW
SUCH LETTER OF CREDIT EACH MONTH FOR PAYMENT OF BASE RENT AND ADDITIONAL RENT.
IN ADDITION, IF LANDLORD SHALL BE ENTITLED TO DRAW THE LETTER OF CREDIT IN WHOLE
OR IN PART PURSUANT TO THE OTHER PROVISIONS OF THIS LEASE, LANDLORD SHALL HAVE
THE RIGHT, AT ITS OPTION, EITHER TO DEPOSIT THE CASH PROCEEDS OF ANY SUCH DRAW
UPON THE LETTER OF CREDIT INTO A CASH COLLATERAL ACCOUNT (THE "CASH COLLATERAL
ACCOUNT") ESTABLISHED IN LANDLORD'S NAME AND MAINTAINED BY LANDLORD OR TO APPLY
THE PROCEEDS TO THE OBLIGATIONS OF TENANT DUE OR TO BECOME DUE HEREUNDER.
THE
CASH COLLATERAL ACCOUNT SHALL BE UNDER THE SOLE DOMINION AND CONTROL OF LANDLORD
AND LANDLORD SHALL HAVE THE SOLE RIGHT TO MAKE WITHDRAWALS FROM THE CASH
COLLATERAL ACCOUNT