Common use of Basic Rent and Additional Rent Clause in Contracts

Basic Rent and Additional Rent. (a) Starting on the first day of the thirteenth month from the Commencement Date and continuing through the fifth year following said date, Tenant shall pay as basic rent ("Basic Rent") the annual sum of TWO HUNDRED SIXTY-TWO THOUSAND EIGHT HUNDRED THIRTY-SEVEN AND 50/100 ($262,837.50) DOLLARS or $21.50 per square foot of rental space in equal monthly installments of TWENTY-ONE THOUSAND NINE HUNDRED THREE AND 13/100 DOLLARS ($21,903.13) on or before the first date of each month, in advance, to Landlord at the address of the Landlord above designated or such other place as shall be designated by Landlord. Landlord agrees to waive basic rental payments (with the exception of tenant electric) for the initial twelve (12) months of the lease term. (b) As additional consideration to the Tenant for the Tenant's entry into this lease transaction, and upon the condition that the Tenant is not in default of this Agreement of Lease, the Landlord shall pay to the Tenant the sum of $8,000. on August 1, 1988 and a similar sum on September 1, 1988, but such payment shall not be required at any other times. (c) Tenant shall also pay as Additional Rent any and all such other sums of money as shall become due to the Landlord pursuant to the terms and provisions hereof including but not limited to Tenant improvements authorized by and to be paid by Tenant, without demand therefor and without any abatement, counterclaim, deduction or setoff whatsoever except as provided herein. Basic Rent and Additional Rent is sometimes hereinafter collectively referred to as "Rent". (d) If Tenant shall fail to pay the Basic Rent and Additional Rent within ten (10) business days following the due date of any such payment, and if Landlord agrees to accept any such late payment, then in the event of such late payment, the Tenant agrees to pay to Landlord interest on any such sums at the rate of 5% of any such late installment of Rent or Additional Rent, as Additional Rent, or if said rate under the circumstances then prevailing shall not be lawful, then at the maximum lawful rate permitted. The foregoing shall be in addition to any other right or remedy which may be available to Landlord in the event of default by Tenant. (e) The Tenant agrees to deposit with the Landlord upon the execution date of this Lease the sum of $21,903.13 as security for the payment of Rent and/or Additional Rent hereunder and the full and faithful performance by the Tenant of the covenants and conditions on the part of the Tenant to be performed. Said sum shall be returned to the Tenant, without interest after the expiration of the term hereof, provided that the Tenant has fully and faithfully performed all such covenants and conditions and is not in arrears in Basic Rent and/or Additional Rent. During the term hereof the Landlord may, if the Landlord so elects, have recourse to such security, to make good any default by the Tenant, in which event the Tenant shall, on demand, promptly restore said security to its original amount. Liability to repay said security to the Tenant shall run with the reversion and title to the Leased Premises, whether any change in ownership thereof be by voluntary alienation or as the result of judicial sale, foreclosure or other proceedings, or the exercise of a right of taking or entry by any mortgages. The Landlord shall assign or transfer said security, for the benefit of the Tenant, to any subsequent owner or holder of the reversion of title to the Leased Premises, in which case the assignee shall become liable for the repayment thereof as herein provided, and the assignor shall be deemed to be released by the Tenant from all liability to return such security. This provision shall be applicable to every alienation or change in title and shall in no wise be deemed to permit the Landlord to retain the security after termination of the Landlord's ownership of the reversion or title. The Tenant shall not mortgage, encumber or assign said security without the written consent of the Landlord.