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 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)
PURSUANT TO THE ORIGINAL LEASE, TENANT
DELIVERED 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
9
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 AND TO EXERCISE ALL RIGHTS WITH RESPECT TO THE AMOUNTS
DEPOSITED IN THE CASH COLLATERAL ACCOUNT.
(B)
THE INITIAL LETTER OF CREDIT AND ANY REPLACEMENT LETTER OF CREDIT
ISSUED TO LANDLORD SHALL SATISFY THE REQUIREMENTS SET FORTH IN THIS SECTION 4.7
(EACH, A "LETTER OF CREDIT").
EACH LETTER OF CREDIT SHALL BE A CLEAN,
IRREVOCABLE, NON-DOCUMENTARY AND UNCONDITIONAL LETTER OF CREDIT ISSUED BY AND
DRAWABLE UPON ANY COMMERCIAL BANK, TRUST COMPANY, NATIONAL BANKING ASSOCIATION
OR SAVINGS AND LOAN ASSOCIATION WITH OFFICES FOR BANKING AND DRAWING PURPOSES IN
THE CITY OF SAN FRANCISCO OR THE CITY OF NEW YORK (THE "ISSUING BANK"), WHICH
HAS OUTSTANDING,