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following events, Tenants shall pay to Landlord the cost of any and all utility services provided
<br /> to the Demised Property in lieu of payment directly to the applicable service providers: (i)
<br /> delivery to Tenants of a written request therefor from Landlord, and (ii) any Default under this
<br /> Section 3.03d by Tenants, or any Event of Default. Funds paid by Tenants to Landlord pursuant
<br /> to the immediately preceding sentence shall be used only for the payment of the cost of utility
<br /> services to the Demised Property. If Tenants fail to pay the appropriate party (Landlord or the
<br /> service providers, as provided herein) all such costs when due hereunder, then Tenants shall,
<br /> without limiting any other remedies available to Landlord, reimburse Landlord for any and all
<br /> penalties or interest, or portion thereof, paid or incurred by Landlord as a result of such
<br /> nonpayment or late payment by Tenants.
<br /> (e) Without limiting any of Tenants' other obligations set forth in this Article,
<br /> Tenants shall pay to Landlord, with each payment due to Landlord hereunder (and as a part of
<br /> Rent due hereunderj, all sales and excise tax on rental income and all other similar taxes imposed
<br /> on Landlord with respect to rental or other payments under this Lease in the nature of a sales tax,
<br /> occupancy tax, commercial rents tax or the like, whether imposed by a federal, state or local
<br /> taxing authority. To the extent permitted by applicable Law, Tenants may pay any such tax
<br /> directly to the taxing authority, provided (i) Tenants establish such right to Landlord's
<br /> satisfaction prior to making any such payment, and (ii) Tenants, within ten (10) days after any
<br /> such payment, deliver to Landlord written evidence satisfactory to Landlord that such payment
<br /> has been made. For the avoidance of doubt, Tenants shall not be responsible for (i) any income
<br /> taxes imposed on Landlord, (ii) any franchise taxes of Landlord measured by net income or net
<br /> worth, or (iii) any transfer taxes imposed with respect to the sale, exchange or other disposition
<br /> by Landlord, in whole or in part, of the Demised Property or Landlord's interest in this Lease
<br /> (unless such sale, exchange or Other disposition by Landlord is to Tenants or an Affiliate of
<br /> Tenants, or is otherwise made at Tenants' request).
<br /> (f) Any indemnity payments due to Landlord from Tenants hereunder that are
<br /> attributable to liabilities, fixed or contingent, known or unknown (i) that existed as of the date
<br /> hereof, or relate to periods prior to and including the date hereof, or (ii) to which the Demised
<br /> Property were subject as of the date hereof, or that existed on the date hereof and ran with the
<br /> Demised Property and became a liability of the Landlord as the transferee or assignee of the
<br /> previous owner of the Demised Property, shall not be treated as additional rent or other gross
<br /> income of the Landlord for federal income tax purposes but as an adjustment to the Landlord's
<br /> adjusted basis in the Demised Property, which adjusted basis shall, prior to the receipt by
<br /> Landlord of such indemnity payments, be deemed to include the amount of such liabilities.
<br /> Tenants agree that it will take no position inconsistent herewith for federal income tax purposes.
<br /> Section 3.04 Security Deposit
<br /> Upon Execution of this Lease, Tenants shall pay to Landlord a Security Deposit of
<br /> $10,000.00. Said sum shall be held by Landlord as security for the faithful performance by
<br /> Tenants of all the terms, covenants and conditions of this Leas to be kept and performed by
<br /> Tenants during the term hereof. If Tenants default with respect to any provision of this Lease,
<br /> including, but not limited to provisions relating to the payment of Rent, taxes, performance of
<br /> repairs and maintenance or other payments required of Tenants, Landlord may, but shall not be
<br /> required to, use, apply or retain all or any part of this Security Deposit for the payment of any
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