Common use of Security Deposit Letter of Credit Clause in Contracts

Security Deposit Letter of Credit. A. Upon the execution of this Lease, Tenant shall deposit with Landlord the Security and Restoration Deposit. Said deposit shall be held by Landlord as security for the faithful performance by Tenant of all the terms of this Lease by said Tenant to be observed and performed. The Security and Restoration Deposit shall not be mortgaged, assigned, transferred or encumbered by Tenant without the written consent of Landlord and any such act on the part of Tenant shall be without force and effect and shall not be binding upon Landlord. If the Fixed Rent or Additional Rent or any other sum payable hereunder shall be overdue and unpaid or should Landlord make payments on behalf of the Tenant, or Tenant shall fail to perform any of the terms of this Lease, then Landlord may, at its option and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply said entire deposit or so much thereof as may be necessary to compensate Landlord toward the payment of Fixed Rent, Additional Rent or other sums or loss or damage sustained by Landlord due to such breach on the part of Tenant; and Tenant shall forthwith upon demand restore said security to the original sum deposited. Should Tenant comply with all of said terms and promptly pay all of the rentals as they fall due and all other sums payable by Tenant to Landlord, said deposit shall be returned in full to Tenant at the end of the term. In the event of bankruptcy or other creditor-debtor proceedings against Tenant, all securities shall be deemed to be applied first to the payment of rent and other charges due Landlord for all periods prior to the filing of such proceedings.

Security Deposit Letter of Credit. A. Upon Simultaneously with the execution and delivery of this Lease, Tenant shall deposit with deliver to Landlord a clean, irrevocable letter of credit in the Security Letter of Credit Amount (as defined in Article 1) in the form attached hereto as Exhibit I or otherwise satisfactory in form and Restoration Depositcontent to Landlord and issued by an FDIC insured bank reasonably satisfactory to Landlord in favor of Landlord. Said deposit During the Term hereof, including any extensions thereof, or for any period that Tenant remains in possession of the premises following the expiration of the term, or for any period Tenant has obligations hereunder to Landlord that remain unsatisfied following the expiration of the term (as may be extended), and for ninety (90) days after the latest to occur of the foregoing (i.e., the expiration of the term (as may be extended), the date on which Tenant vacates and yields up the premises, etc.), the letter of credit shall be held to ensure the full and timely performance of Tenant’s obligations under this Lease; which letter of credit may be drawn upon by Landlord as security for the faithful performance by after an Event of Default (provided, however, that delivery of a default notice to Tenant of all the terms of this Lease by said Tenant to be observed and performed. The Security and Restoration Deposit shall not be mortgaged, assigned, transferred or encumbered by Tenant without the written consent required for purposes of Landlord this Article 15 and any such act to draw on the part letter of credit if Landlord is prohibited from delivering same under applicable law, including, without limitation, all applicable bankruptcy insolvency laws) and applied from time to time against outstanding obligations of Tenant hereunder without notice or demand. Tenant shall have no right to require Landlord to so draw and apply the letter of credit, nor shall Tenant be without force and effect and entitled to credit the same against rents or other sums payable hereunder. During the entire Term hereof, including any extension thereof, Tenant shall not cause said letter of credit to be binding upon Landlordrenewed, in form reasonably acceptable to Landlord if different in form to that delivered hereunder, prior to the date of expiration of same. If the Fixed Rent or Additional Rent or Without limiting any other sum payable remedies of Landlord, in the event that Tenant fails to renew any letter of credit given hereunder shall be overdue and unpaid or should Landlord make payments on behalf prior to the date of the Tenant, or Tenant shall fail to perform any of the terms of this Leaseexpiration thereof, then Landlord mayshall have the right to draw down the entire amount of said letter of credit and hold such sums as a cash deposit. If and to the extent that Landlord makes such use of the letter of credit, at its option and without prejudice to or any other remedy which Landlord may have on account part thereof, appropriate the sum so applied by Landlord (from cash or from a drawing on the letter of credit) shall be restored to the letter of credit (or by a new letter of credit equal to the difference) by Tenant forthwith upon notice from Landlord, and apply said entire deposit or failure to so much thereof as may restore (within the grace period applicable to Base Rent hereunder) shall be necessary a default hereunder giving rise to compensate Landlord toward all of Landlord’s rights and remedies applicable to a default in the payment of Fixed Rent, Additional Rent or other sums or loss or damage sustained by Landlord due to such breach on the part of Tenant; and Tenant shall forthwith upon demand restore said security to the original sum deposited. Should Tenant comply with all of said terms and promptly pay all of the rentals as they fall due and all other sums payable by Tenant to Landlord, said deposit shall be returned in full to Tenant at the end of the termrent. In the event of bankruptcy a change of circumstance relating to the bank issuing the letter of credit, or other creditor-debtor proceedings against Landlord otherwise reasonably believes the financial conditions of the issuing bank has been degraded, Landlord reserves the right to require Tenant to replace the letter of credit from time to time with a substitute similar letter of credit issued by another bank satisfactory to Landlord. Notwithstanding the foregoing, in the event Tenant fails to provide Landlord with evidence reasonably satisfactory to Landlord by the date that is two (2) months following the Term Commencement Date indicating that Tenant has closed on its second (2nd) tranche of financing in the amount of $3,000,000.00 (the “2nd Tranche”) Tenant shall increase the Letter of Credit Amount to $168,339.78 by providing Landlord with a substitute letter of credit in the increased amount in exchange for the existing letter of credit(s) which Landlord is then holding, or by an amendment to the existing letter of credit(s) then held by Landlord, in form and substance acceptable to Landlord, which is accepted by Landlord in writing. Provided that: (i) Tenant has not been in default of any of its obligations under this Lease after the giving of any applicable notice and the expiration of any applicable cure period prior to any Reduction Date, as hereinafter defined, in question, (ii) Tenant is, as of such Reduction Date, not in default of its obligation under the Lease (provided, however, that if there is no reduction of the security deposit based upon Tenant’s failure to satisfy the condition set forth in this clause (ii), all securities then Tenant may subsequently achieve a reduction in the security deposit pursuant to this sentence at such time as Tenant cures such default, so long as the Lease is then in full force and effect and Tenant is otherwise then in full compliance with its obligations under the Lease), and (iii) the Lease is then in full force and effect, Landlord shall refund to Tenant such portion of the letter of credit which it is then holding so as to cause the Letter of Credit Amount to be reduced as of each Reduction Date to the amount shown in the following schedule: Reduction Date New Reduced Letter of Credit Amount The date Tenant provides Landlord with evidence reasonably satisfactory to Landlord indicating that Tenant has closed on the 2nd Tranche $112,226.52 The date Tenant provides Landlord with evidence reasonably satisfactory to Landlord indicating that Tenant has closed on its third (3rd) tranche of financing in an amount of at least $3,000.000.00 $93,522.10 The last day of the third (3rd) Lease Year $74,817.68 The last day of the fourth (4th) Lease Year $37,408.84 Any reduction in the Letter of Credit Amount shall be deemed to be applied first accomplished by Tenant providing Landlord with a substitute letter of credit in the reduced amount in exchange for the existing letter of credit(s) which Landlord is then holding, or by an amendment to the payment existing letter of rent credit(s) then held by Landlord, in form and other charges due substance acceptable to Landlord, which is accepted by Landlord for all periods prior to the filing of such proceedingsin writing.

Security Deposit Letter of Credit. A. (a) Upon the execution of this LeaseSublease, Tenant Sublessee shall deliver to Sublessor a clean, unconditional, irrevocable, transferable letter of credit in the amount of Six Hundred Ninety-Four Thousand Thirty-Four Dollars and Ninety-Seven Cents ($694,034.97). (the “Letter of Credit”), in form and issued by a financial institution (“Issuer”) satisfactory to Sublessor in its sole discretion, which Letter of Credit (and all sums drawn by Sublessor thereunder) shall constitute a security deposit with Landlord to secure Sublessse’s obligations under this Sublease and the other Subleases (the “Security Deposit”). Sublessee hereby grants to Sublessor a security interest in the Letter of Credit and Restoration Depositall proceeds, replacements and modifications thereof to secure Sublessee’s obligations herein, including without limitation, the obligation to pay Rent, perform its insurance and indemnity obligation and to maintain and restore the Subleased Premises. Said deposit The Letter of Credit shall permit partial draws, and provide that draws thereunder will be held honored upon receipt by Landlord as security for Issuer (at its offices in San Francisco, California or such other location that Sublessor shall approve in its sole discretion) of the faithful performance original or a certified copy of the Letter of Credit accompanied by Tenant a written statement signed by Sublessor or its authorized agent stating that Sublessor is entitled to draw on the Letter of all Credit pursuant to the terms of this Lease by said Tenant to be observed and performedSublease. The Security and Restoration Deposit Letter of Credit shall have an expiration period of one (1) year from the date of issuance but shall provide that it will automatically renew by its terms to a date which is sixty (60) days following the Expiration Date of the Building 6 Sublease unless affirmatively cancelled by Issuer following not be mortgaged, assigned, transferred fewer than sixty (60) days prior written notice of such expiration or encumbered by Tenant without the written consent of Landlord and any such act on the part of Tenant cancellation from Issuer to Sublessor. Sublessor shall be without force entitled to draw the Letter of Credit in part or in full. All costs and effect and shall not be binding upon Landlord. If expenses related to the Fixed Rent or Additional Rent or Letter of Credit, including any other sum payable hereunder transfer fees, shall be overdue and unpaid or should Landlord make payments on behalf of the Tenant, or Tenant shall fail to perform any of the terms of this Lease, then Landlord may, at its option and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply said entire deposit or so much thereof as may be necessary to compensate Landlord toward the payment of Fixed Rent, Additional Rent or other sums or loss or damage sustained paid by Landlord due to such breach on the part of Tenant; and Tenant shall forthwith upon demand restore said security to the original sum deposited. Should Tenant comply with all of said terms and promptly pay all of the rentals as they fall due and all other sums payable by Tenant to Landlord, said deposit shall be returned in full to Tenant at the end of the term. In the event of bankruptcy or other creditor-debtor proceedings against Tenant, all securities shall be deemed to be applied first to the payment of rent and other charges due Landlord for all periods prior to the filing of such proceedingsSublessee.

Security Deposit Letter of Credit. A. Upon the execution To secure payment and performance of Tenant's obligations under this Lease, Tenant shall deposit with cause an irrevocable, unconditional Letter of Credit (the "Letter of Credit") in an amount equal to Five Hundred Seventy-Four Thousand Nine Hundred Thirteen and 72/100 Dollars ($574,913.72) in form and substance satisfactory to Landlord from a financial institution acceptable to Landlord in its discretion to be issued to and naming Landlord as the Security beneficiary within five (5) days of the execution date of this Lease. Tenant's failure to deliver the Letter of Credit as provided above shall, at Landlord's election, cause this Lease to terminate and Restoration Depositneither Landlord nor Tenant shall have any further obligations hereunder; it being understood that the construction contemplated in the Work Letter, and any preparation therefor on Landlord's part, will not commence until Landlord has received such Letter of Credit. Said deposit The initial term of the Letter of Credit shall be held by Landlord as security for the faithful period commencing on the execution date of this Lease and expiring on the first (1st) anniversary of such execution date. Thereafter, the Letter of Credit shall be automatically extended, with notice thereof forwarded to Landlord by the issuer of such Letter of Credit no less than twenty (20) days prior to the scheduled expiration date for such Letter of Credit, for two (2) successive one (1) year terms. Landlord shall have the right to immediately present the Letter of Credit for payment upon an Event of Default or in the event the original Letter of Credit or the first renewal thereof are not automatically renewed on or before twenty (20) days from their respective expiration dates. Notwithstanding anything contained herein to the contrary, Tenant shall be entitled to request that Landlord substitute a new letter of credit for the existing Letter of Credit from time to time but not more often than once per month, which new letter of credit shall be in form and substance satisfactory to Landlord from a financial institution acceptable to Landlord in its discretion and expiring on the same date as the Letter of Credit. The aggregate amount of the new letter of credit may be decreased by an amount equal to Twenty-Five Thousand Dollars ($25,000.00) per month for each month (commencing with the Commencement Date until the date of the delivery of the new letter of credit) that no Event of Default has occurred under this Lease. Tenant covenants and agrees that no less than sixty (60) days prior to the third (3rd) anniversary of the execution date hereof, Tenant shall deliver a cash security deposit in an amount equal to Fifty Thousand Eight Hundred Thirty-Five Dollars ($50,835.00) as a Security Deposit for the full and timely payment and performance by Tenant of its obligations under this Lease. Landlord may apply any or all of the terms Security Deposit towards the payment of this Lease by said Any sum or the performance of any obligation which Tenant was obligated, but failed, to be observed and performedpay or perform hereunder. The Security and Restoration Deposit shall not be mortgaged, assigned, transferred or encumbered considered an advance payment of Rent by Tenant without the written consent or a measure of Landlord and any such act on the part of Tenant shall be without force and effect and shall not be binding upon Landlord. If the Fixed Rent or Additional Rent or any other sum payable hereunder shall be overdue and unpaid or should Landlord make payments on behalf of the Tenant, or Tenant shall fail to perform any of the terms of this Lease, then Landlord may, at its option and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply said entire deposit or so much thereof as may be necessary to compensate Landlord toward the payment of Fixed Rent, Additional Rent or other sums or loss or damage sustained by Landlord due to such breach on the part of Tenant; and Tenant shall forthwith upon demand restore said security to the original sum deposited. Should Tenant comply with all of said terms and promptly pay all of the rentals as they fall due and all other sums payable by Tenant a limit to Landlord, said deposit shall be returned in full to Tenant at the end 's damages upon an Event of the term. In the event of bankruptcy or other creditor-debtor proceedings against Tenant, all securities shall be deemed to be applied first to the payment of rent and other charges due Landlord for all periods prior to the filing of such proceedingsDefault.

Security Deposit Letter of Credit. A. Upon 32.1 Tenant shall, upon the execution of this LeaseLease by Tenant, Tenant shall deposit with deliver to Landlord a letter of credit (the "LETTER OF CREDIT") issued in favor of the Landlord in the sum of the Security and Restoration Deposit. Said deposit shall be held by Landlord Deposit ($35,127.00), as security for the faithful performance and observance by Tenant of all the terms terms, conditions and provisions of this Lease by said Tenant to be observed and performed. The Security and Restoration Deposit shall not be mortgagedLease, assigned, transferred or encumbered by Tenant including without limitation the written consent surrender of Landlord and any such act on the part of Tenant shall be without force and effect and shall not be binding upon Landlord. If the Fixed Rent or Additional Rent or any other sum payable hereunder shall be overdue and unpaid or should Landlord make payments on behalf possession of the Tenant, or Premises to Landlord as herein provided. In the event Tenant shall fail to perform defaults in respect of any of the terms of this LeaseLease including, then but not limited to, the payment of Rent and additional rent after notice and the expiration of any applicable cure period, Landlord may, at its option and without prejudice may draw upon the Letter of Credit to the extent required for the payment of any other remedy sum as to which Tenant is in default or for any sum which Landlord may have on account thereof, appropriate and apply said entire deposit expended or so much thereof as may be necessary required to expend by reason of Tenant's default, including any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. In addition, Landlord may draw upon the Letter of Credit to the extent required to compensate Landlord toward for the payment of Fixed Rent, Additional Rent or other sums or loss or damage sustained actual costs incurred by Landlord due to such breach on in leasing the part Premises, including, without limitation, the unamortized portion of Tenant; and Tenant shall forthwith upon demand restore said security to the original sum deposited. Should Tenant comply with all of said terms and promptly pay all of the rentals as they fall due and all other sums payable by Tenant to Landlord's free rent period, said deposit shall be returned in full to Tenant at the end of the termif any. In the event Landlord draws upon the Letter of bankruptcy Credit and applies or other creditor-debtor proceedings against Tenantretains any portion or all of the sum received upon such draw, Tenant shall forthwith take such action as is necessary to restore the face amount of the Letter of Credit so that at all securities times the amount of the Letter of Credit shall be deemed to be applied first equal to the payment of rent and other charges due Landlord for all periods prior to the filing of such proceedingsSecurity Deposit.

Security Deposit Letter of Credit. A. Upon the execution of this Lease, Tenant shall deposit with Landlord and shall maintain at all times on deposit with Landlord and keep whole and unencumbered an irrevocable, assignable, non-documentary standby letter of credit in form, and issued by, a financial institution acceptable to Landlord in the Security and Restoration Deposit. Said deposit shall be held by Landlord amount of Thirty-three Thousand Dollars ($33,000.00), as security for the faithful performance by Tenant of every term and condition of this Lease, it being expressly understood and agreed that Tenant may not direct Landlord to apply said security in payment of Rent for any month during the Lease Term. If there shall be a breach or default by Tenant in respect of any term or condition of this Lease, and such breach or default is not cured within the applicable cure period, if any, Landlord may draw upon all or any part of the terms letter of credit to perform the same for the account of Tenant, or for any damages, whether such damages or default accrue before or after summary proceedings or re-entry by Landlord. Landlord shall not be required so to use, apply or retain the whole or any part of said security nor shall the provisions herein contained limit the rights and remedies of Landlord under this Lease. If Tenant shall fully and faithfully comply with all of the provisions of this Lease, then, upon the termination or expiration of this Lease by lapse of time or otherwise and Tenant’s surrender of the Premises in the condition required under this Lease, said security or any balance thereof remaining, shall be returned to Tenant within 30 days after such termination or expiration and surrender, as applicable. In the event of any sale, transfer or assignment of Landlord’s interest under this Lease, Landlord may transfer or assign said security to the transferee, and Landlord thereupon shall be observed released from all liability with respect to said security provided that the transferee accepts responsibility for said security. Without affecting the non-documentary status of the letter of credit and performed. The Security and Restoration Deposit without involving the issuer of the letter of credit in any matters affecting this Lease, Landlord shall not be mortgaged, assigned, transferred or encumbered by Tenant without present a draft under the written consent letter of Landlord and any such act credit for payment unless (1) a default exists on the part of Tenant shall be without force beyond any applicable notice and effect cure period or (2) the letter is scheduled to expire before the time specified above for the return of the security to Tenant, and at least 20 days before the expiration of the letter of credit a renewal letter of credit shall not be binding upon have been delivered to Landlord. If Tenant agrees to keep renewing the Fixed Rent or Additional Rent or any other sum payable hereunder shall be overdue and unpaid or should Landlord make payments on behalf letter of credit until the time specified above for the return of the security to Tenant, or Tenant shall fail to perform without any of the terms of this Lease, then Landlord may, at its option and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply said entire deposit or so much thereof as may be necessary to compensate Landlord toward the payment of Fixed Rent, Additional Rent or other sums or loss or damage sustained by Landlord due to such breach need on the part of Tenant; and Landlord to give Tenant shall forthwith upon demand restore said security any notice that it is in default in supplying that renewal, any provision of this Lease as to notice of default to Tenant to the original sum depositedcontrary notwithstanding. Should The employment of a letter of credit is an accommodation to Tenant comply and the object of this Section is to preserve Landlord’s rights to deal with all of said terms and promptly pay all the security as if it were cash. Without limiting the foregoing, the issuer of the rentals as they fall due letter of credit has no interest in, or concern with, this Lease or the performance under it by either party. The issuer’s sole obligation is to honor a sight draft timely drawn and all other sums payable by Tenant to Landlord, said deposit shall be returned in full to Tenant at the end of the term. In the event of bankruptcy or other creditor-debtor proceedings against Tenant, all securities shall be deemed to be applied first to the payment of rent and other charges due Landlord for all periods prior to the filing of such proceedingspresented.

Security Deposit Letter of Credit. A. 5.1 Upon the execution hereof, and prior to the commencement of this Leasethe lease term under Article II hereof, Tenant shall pay to and deposit with Landlord the Security and Restoration Deposit. Said deposit shall be held by Landlord sum of Five Thousand Dollars ($5,000), as security for the full and faithful performance by Tenant of all the terms of this Lease required to be performed by said Tenant, including, but not limited to, the obligations of Tenant under Section 8.5 of this Lease. Landlord may use, apply, or retain the whole or any part of the money deposited as security hereunder to the extent required for the payment of any rent and additional rent or other sum(s) as to which Tenant is in default or for any sum(s) which Landlord may expend or may be required to expend by reason of Tenant's default in respect of any of the conditions of this Lease, including, but not limited to, any damages or deficiency in reletting of the Leased Premises whether such damages or deficiency accrued before or after summary proceedings or other reentry by Landlord or the failure of Tenant to comply with the provision of Section 8.5 of this Lease. In the event of Landlord's sale or lease of the Leased Premises of which the Leased Premises forms a part, Landlord shall have the right to transfer said security deposit to the purchaser or lessee, and Landlord shall thereupon be observed and performedreleased from all liability for the return of such security deposit. The Security and Restoration Deposit In the event of such a transfer, Tenant shall look solely to said transferee for the return of said security deposit. Tenant shall not be mortgaged, assigned, transferred assign or encumbered by Tenant encumber the money deposited as security without the prior written consent of Landlord, and Tenant agrees that neither Landlord nor its successors and assigns shall be bound by any such act on assignment or encumbrance. Tenant agrees that the part money deposited as security hereunder will not be used to pay the Rent for the last month of the term hereof without the prior written consent of Landlord. Tenant shall be without force and effect and shall not be binding upon Landlordentitled to interest at money market rates on the money deposited as security hereunder. If Subject to the Fixed Rent or Additional Rent or any other sum payable hereunder shall be overdue and unpaid or should Landlord make payments on behalf terms of this Section, in the Tenant, or event that Tenant shall fail to perform any comply with all of the terms of this Lease, then Landlord may, at its option and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply said entire deposit or so much thereof the money deposited as may be necessary to compensate Landlord toward the payment of Fixed Rent, Additional Rent or other sums or loss or damage sustained by Landlord due to such breach on the part of Tenant; and Tenant shall forthwith upon demand restore said security to the original sum deposited. Should Tenant comply with all of said terms and promptly pay all of the rentals as they fall due and all other sums payable by Tenant to Landlord, said deposit shall hereunder will be returned in full to Tenant at the end expiration of the term. In term hereof and after delivery of possession of the event of bankruptcy or other creditor-debtor proceedings against Tenant, all securities shall be deemed Leased Premises to be applied first to the payment of rent and other charges due Landlord for all periods prior to the filing of such proceedingsLandlord.

Security Deposit Letter of Credit. A. Upon the 21.1 Security Deposit Concurrent with Tenant's execution of this Lease, ---------------- Tenant shall deposit with Landlord a security deposit (the "Security and Restoration Deposit") in the amount set forth in Section 11 of the Summary. Said deposit The Security Deposit shall ---------- be held by Landlord as security for the faithful performance by Tenant of all the terms terms, covenants, and conditions of this Lease by said Tenant to be observed kept and performedperformed by Tenant during the Lease Term. The Security and Restoration Deposit If Tenant defaults with respect to any provisions of this Lease, including, but not limited to, the provisions relating to the payment of Rent, Landlord may, but shall not be mortgagedrequired to, assigneduse, transferred apply or encumbered by Tenant without the written consent of Landlord and retain all or any such act on the part of Tenant shall be without force and effect and shall not be binding upon Landlord. If the Fixed Rent or Additional Security Deposit for the payment of any Rent or any other sum payable hereunder shall be overdue and unpaid or should Landlord make payments on behalf of the Tenantin default, or Tenant shall fail to perform for the payment of any of the terms of this Lease, then Landlord may, at its option and without prejudice to any other remedy which amount that Landlord may have on account thereofspend or become obligated to spend by reason of Tenant's default, appropriate and apply said entire deposit or so much thereof as may be necessary to compensate Landlord toward the payment of Fixed Rent, Additional Rent or for any other sums or loss or damage sustained that Landlord may suffer by Landlord due to such breach on the part reason of Tenant; 's default. If any portion of the Security Deposit is so used or applied, Tenant shall, within five (5) days after written demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant's failure to do so shall be a default under this Lease. If Tenant shall forthwith upon demand restore said security fully and faithfully perform every provision of this Lease to be performed by it, the original sum deposited. Should Tenant comply with all of said terms and promptly pay all of the rentals as they fall due and all other sums payable by Tenant to LandlordSecurity Deposit, said deposit or any balance thereof, shall be returned in full to Tenant Tenant, or, at Landlord's option, to the end last assignee of Tenant's interest hereunder, within thirty (30) days following the expiration of the termLease Term. In Tenant shall not be entitled to any interest on the event of bankruptcy or other creditor-debtor proceedings against Tenant, all securities shall be deemed to be applied first to the payment of rent and other charges due Landlord for all periods prior to the filing of such proceedingsSecurity Deposit.

Security Deposit Letter of Credit. A. Upon 3.3.1 As security for the full and faithful payment of all sums due under this Lease and the full and faithful performance of every covenant and condition of this Lease to be performed by Tenant, Tenant agrees to pay to Landlord upon execution of this Lease the sum specified in the definition of the term Security Deposit. If Tenant shall breach or default with respect to any payment obligation or other covenant or condition of this Lease, Landlord may apply all or any part of the Security Deposit to the payment of any sum in default or any damage suffered by Landlord as a result of such breach or default, and in such event, Tenant shall shall, upon demand by Landlord, deposit with Landlord the amount so applied so that Landlord shall have the full Security and Restoration DepositDeposit on hand at all times during the Lease Term. Said deposit shall be held by Landlord as security for the faithful performance by Tenant Landlord's use or application of all or any portion of the terms of this Lease by said Tenant to be observed and performed. The Security and Restoration Deposit shall not impair any other rights or remedies provided under this Lease or under applicable law and shall not be mortgagedconstrued as a payment of liquidated damages. If Tenant shall have fully complied with all of the covenants and conditions of this Lease, assignedthe Security Deposit shall be repaid to Tenant, transferred without interest, within ten (10) calendar days after the expiration of this Lease. Tenant may not mortgage, assign, transfer or encumbered by Tenant without encumber the written consent of Landlord Security Deposit and any such act on the part of Tenant shall be without force and effect and shall not be binding upon Landlord. If the Fixed Rent or Additional Rent or any other sum payable hereunder shall be overdue and unpaid or should Landlord make payments on behalf of the Tenant, or Tenant shall fail to perform any of the terms of this Lease, then Landlord may, at its option and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply said entire deposit or so much thereof as may be necessary to compensate Landlord toward the payment of Fixed Rent, Additional Rent or other sums or loss or damage sustained by Landlord due to such breach on the part of Tenant; and Tenant shall forthwith upon demand restore said security to the original sum deposited. Should Tenant comply with all of said terms and promptly pay all of the rentals as they fall due and all other sums payable by Tenant to Landlord, said deposit shall be returned in full to Tenant at the end of the termeffect. In the event of bankruptcy any bankruptcy, insolvency, reorganization or other creditor-debtor proceedings shall be instituted by or against Tenant, all securities the Security Deposit shall be deemed to be applied first to the payment of rent Base Rent, Additional Rent and all other charges due sums payable under this Lease to Landlord for all periods prior to the filing institution of such proceedingsproceedings and the balance, if any, may be retained by Landlord and applied against Landlord's damages. If at any time or times the amount of the Base Rent is increased during the Lease Term above that set forth in subpart (a) of the definition of Base Rent, whether pursuant to the terms of this Lease or otherwise, then the required Security Deposit amount shall be proportionately increased; and Tenant shall pay to Landlord such additional Security Deposit within ten (10) calendar days after the effective date of the increase in the Base Rent.