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or other charges due hereunder, an initial late fee of $50.00. Any dishonored and <br />returned checks shall be subject to a $35.00 penalty fee. <br />5. SECURITY DEPOSIT: <br />On signing this Agreement, Tenants understand the security deposit on file with the <br />current landlord in the amount of ZERO ($0.00) will be transferred into escrow and <br />held in a trust account as a deposit to secure Tenant's performance of the above <br />covenants contained herein. <br />All or any portion of the security deposit may be used, as reasonably necessary, to: <br />(i) cure Tenant's default in payment of Rent (which includes Late Charges, NSF fees <br />or other sums due); (ii) repair damage, excluding ordinary wear and tear, caused by <br />Tenant or by a guest or licensee of Tenant; (iii) clean Premises, if necessary, upon <br />termination of the tenancy; and (iv) replace or return personal property or <br />appurtenances. SECURITY DEPOSIT SHALL NOT BE USED BY TENANT IN LIEU OF <br />PAYMENT OF LAST MONTH'S RENT. If all or any portion of the security deposit is <br />used during the tenancy, Tenant agrees to reinstate the total security deposit within <br />five (5) days after written notice is delivered to Tenant. <br />Security deposit will not be returned until all Tenants have vacated the Premises <br />and all keys returned. No interest will be paid on security deposit unless required by <br />local law. <br />6. UTILITIES <br />Tenant shall pay directly for all utilities, services and charges provided to the <br />premises, including any and all deposits required, except for the following, which <br />shall be paid by Landlord: NONE <br />7. USE <br />Tenant shall use the Premises for Costume Rental purposes, and shall not use or <br />permit the Premises to be used for any other purpose without the prior written <br />consent of the Landlord. Tenant shall not use or allow activities in or about the <br />Premises for any improper, immoral, unlawful or objectionable purpose that may <br />cause, maintain or permit any nuisance or cause damages by misuse or negligence <br />of Tenant or their guests or invitees. <br />8. COMPLIANCE WITH LAW <br />Tenant shall not use the Premises, or permit activities on or about the Premises, <br />which will in any way conflict with any law, statute, ordinance or governmental rule or <br />regulation law in force or which may hereafter be enacted or promulgated. Tenant <br />shall comply with all governmental laws, building code, ordinances and regulations <br />applicable to the use of the Premises, and at Tenant's sole cost and expense, shall <br />promptly comply with all governmental orders and directives for the correction, <br />prevention and abatement of nuisances and other activities in or upon, connected <br />with or affecting the condition, use, or occupancy of the Premises. <br />Page 2 of 8 <br />