Common use of Security Deposit Clause in Contracts

Security Deposit. 10.1 Tenant shall deposit with Landlord within five (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 3 contracts

Sources: Lease (NanoString Technologies Inc), Lease (NanoString Technologies Inc), Lease (NanoString Technologies Inc)

Security Deposit. 10.1 Tenant shall deposit with Landlord within five (5) days of the Execution Date If a security deposit in the amount set forth is specified in Section 2.8 (1.1 hereof, Tenant agrees that the “Security Deposit”)same will be paid upon execution and delivery of this Lease, which Security Deposit and that Landlord shall be held by Landlord hold the same throughout the Term of this Lease as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing obligations on the Execution Date and ending upon part of Tenant hereunder. Landlord shall have the expiration or termination of this Lease. If Tenant defaults with respect right from time to time, without prejudice to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then other remedy Landlord may (but shall not be required to) usehave on account thereof, to apply or retain all such deposit, or any part of the Security Deposit for the payment of any Rent or any other sum in defaultthereof, to Landlord’s damages arising from, or to compensate Landlord for cure, any other loss or damage that Landlord may suffer by reason Event of Tenant’s defaultDefault. If Landlord shall so apply any portion or all of the Security Deposit is so used or appliedsuch deposit, then Tenant shall, within ten (10) days following shall immediately upon demand therefor, increase deposit with Landlord the amount of so applied to be held as security hereunder. Landlord shall return the L/C Security deposit, or deposit cash so much thereof as shall not have theretofore been applied in accordance with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach terms of this Lease. The provisions of this Article 10 shall survive Section, to Tenant on the expiration or earlier termination of the Term of this Lease. 10.2 In Lease and surrender of possession of the event Premises by Tenant to Landlord at such time, provided that there is then existing no Event of bankruptcy Default (nor any circumstance which, with the passage of time or the giving of notice, or both, would constitute an Event of Default). While Landlord holds such deposit, Landlord shall have no obligation to pay interest on the same and shall have the right to commingle the same with Landlord’s other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due funds. If Landlord for all periods prior to the filing of such proceedings. 10.3 Landlord may deliver to any purchaser of conveys Landlord’s interest in under this Lease, the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereofpart thereof not previously applied, shall may be returned turned over by Landlord to Tenant (or, at Landlord’s optiongrantee, and, if so turned over, Tenant agrees to look solely to such grantee for proper application of the last assignee of Tenant’s interest hereunder) within thirty (30) days after deposit in accordance with the expiration or earlier termination terms of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant)Section, and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied return thereof in accordance with Section 10.1 hereof shall be held as herewith. The holder of a cash Security Deposit. (d) Tenant mortgage shall not seek be responsible to enjoin, prevent, Tenant for the return or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds application of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful drawsuch deposit, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing whether or not it succeeds to the issuer position of the L/C Security that Landlord’s draw was erroneousLandlord hereunder, unless such deposit shall have been received in hand by such holder. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 3 contracts

Sources: Lease (Enova International, Inc.), Lease Agreement (Howard Bancorp Inc), Lease Agreement (Enova International, Inc.)

Security Deposit. 10.1 11.1. Tenant shall deposit with Landlord within five (5) days of on or before the Execution Date a security deposit in the amount sum set forth in Section 2.8 2.6 (the “Security Deposit”), which Security Deposit sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of Tenant’s obligations under this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. TENANT HEREBY WAIVES THE REQUIREMENTS OF SECTION 1950.7 OF THE CALIFORNIA CIVIL CODE, AS THE SAME MAY BE AMENDED FROM TIME TO TIME. 10.2 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 11.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 11.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 11.5. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 11.6. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may may, at any time, except during Defaultwhen Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows.: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the TermTerm and until the date that is six (6) months after the then-current Term Expiration Date, a letter of credit in the form of Exhibit H E issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. Landlord may require the L/C Security to be re-issued by a different issuer at any time during the Term if Landlord reasonably believes that the issuing bank of the L/C Security is or may soon become insolvent; provided, however, Landlord shall return the existing L/C Security to the existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to Landlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires requires; and (iii) in such extended period, Landlord shall not unreasonably refuse to exceed 30 days)consent to an appropriate reduction of the L/C Security. Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension, not to exceed Two Thousand Five Hundred Dollars ($2,500.00). (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Lease (Ambit Biosciences Corp), Lease (Ambit Biosciences Corp)

Security Deposit. 10.1 Tenant shall deposit Lessee has deposited with Landlord within five (5) days of Lessor the Execution Date a security deposit in the amount sum set forth in Section 2.8 Article 1i. as the security deposit (the “Security Deposit”), which . The Security Deposit shall be held by Landlord Lessor as security for the faithful performance by Tenant Lessee of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant Lessee during the period commencing on the Execution Date and ending upon the expiration or termination of this LeaseTerm. If Tenant Lessee defaults with respect to any provision of this Lease, including, but not limited to, any provision to the provisions relating to the payment of RentRentals or the condition of the Premises at Lease Termination, then Landlord Lessor may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent Rentals or any other sum in default, or for the payment of any amount which Lessor may spend or become obligated to spend by reason of Lessee’s default, or to compensate Landlord Lessor for any other loss or damage that Landlord which Lessor may suffer by reason of TenantLessee’s default. If any portion of the Security Deposit is so used or applied, then Tenant shallLessee shall within five (5) business days after written demand therefore, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord Lessor in an amount sufficient to restore the Security Deposit to its required amount, original amount and TenantLessee’s failure to do so shall be a material breach of this Lease. The Lessor shall not be required to keep the Security Deposit separate from its general funds, and Lessee shall not be entitled to interest on the Security Deposit. Lessor is not a trustee of the Security Deposit and may use it in ordinary business, transfer it or assign it, or use it in any combination of such ways, subject to the provisions of this Article 10 shall survive Lease governing the expiration or earlier termination disposition of the Security Deposit. Provided there is no continuing default by Lessee of any of its obligations under this Lease, (i) then the monthly Base Rent for the months of July, August and September of 2012, and, if this Lease is not effectively terminated by Lessee pursuant to Article 3a. 10.2 In , an amount equal to $22,192.00 against the event monthly Base Rent for October of bankruptcy or other debtor-creditor proceedings against Tenant2013, shall be paid to Lessor from the Security Deposit shall be deemed to be applied first to in lieu of Lessee’s monthly Base Rent payments for the months of July, August and September of 2012 and such portion of the monthly Base Rent payment for the month of Rent and other charges due Landlord for all periods prior to the filing October of such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant2013, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision (ii) the remainder of this Lease to be performed by it, then the Security Deposit, less any portion of the Security Deposit that has or is to be used or retained by Lessor pursuant to any balance thereofprovision of this Lease, shall be returned to Tenant Lessee (or, at LandlordLessor’s option, to the last assignee of TenantLessee’s interest interests hereunder) within no later than thirty (30) days after the expiration date Lessor receives possession of the Premises, together with a written statement that details such use or earlier termination of this Lease. 10.5 The retention by Lessor. Lessee shall not transfer or encumber the Security Deposit nor shall Lessor be bound by Lessee’s attempt to do so. If Lessor’s interest in this Lease is transferred, Lessor may be transfer the Security Deposit to Lessor’s successor in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlordinterest, and maintain in full force upon such transfer Lessor shall be released from any liability to Lessee with respect to the Security Deposit and effect throughout Lessee shall look only to the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount transferee for any return of the Security Deposit, with an initial term of at least one yearDeposit to which Lessee may be entitled. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place Lessee hereby waives all rights Lessee may have under Section 1950.7 of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment California Civil Code or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions statute or common law principle of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Depositsimilar effect. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Lease Agreement (Asante Solutions, Inc.), Lease Agreement (Asante Solutions, Inc.)

Security Deposit. 10.1 9.1. Tenant shall deposit has deposited with Landlord within five (5) days of the Execution Date a security deposit in the amount sum set forth in Section 2.8 2.6 (the “Security Deposit”), which Security Deposit sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 9 shall survive the expiration or earlier termination of this Lease. TENANT HEREBY WAIVES THE REQUIREMENTS OF SECTION 1950.7 OF THE CALIFORNIA CIVIL CODE, AS THE SAME MAY BE AMENDED FROM TIME TO TIME. 10.2 9.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 9.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 9.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 9.5. Provided that Tenant is not then in default of its obligations under this Lease, upon the expiration of the thirty-sixth (36th) month of the Term, the Security Deposit requirement shall be reduced to $78,889.20 and (a) Landlord shall, on or before the end of the thirty-seventh (37th) month of the Term, refund to Tenant the amount of the Security Deposit held by Landlord in excess thereof or (b) the amount of the L/C Security (as defined below) shall be reduced accordingly, as applicable. 9.6. If the Security Deposit shall be in cash, Landlord shall deposit the Security Deposit into an interest-bearing account at a banking organization selected by Landlord. All interest and/or dividends, if any, accruing on the Security Deposit, less a one percent (1%) per annum charge on the Security Deposit for administrative expenses, shall be added to, held and included within the term Security Deposit and, provided that no Default shall have occurred and be continuing, shall accrue to the account of Tenant. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 9.7. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. Landlord hereby approves of Silicon Valley Bank as the issuer of Tenant’s L/C Security. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires requires; and (iii) in such extended period, Landlord shall not unreasonably refuse to exceed 30 days)consent to an appropriate reduction of the L/C Security. Tenant shall reimburse Landlord’s reasonable actual legal costs (as reasonably estimated calculated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 30 (thirty) days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that asks the issuer to confirm the current L/C Security expiry date (with a copy of such request to Tenant)date, and the issuer fails to do so within fifteen ten (1510) business days after Tenant and the issuer each receives such requestdays; (iv) Tenant fails to pay (when and as Landlord reasonably requires, provided that Tenant shall not be required to pay any such charges earlier than twenty (20) days following Landlord’s demand therefor) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security, and Tenant fails to obtain a replacement letter of credit conforming to the requirements of this Lease at least fifteen (15) business days prior to such cessation. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days five Business Days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Lease (Receptos, Inc.), Lease (Receptos, Inc.)

Security Deposit. 10.1 Concurrently with the commencement of this Lease, Tenant shall deposit with Landlord within five the Security Deposit (5) days as defined in Paragraph 12 of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord Summary) as security for the faithful performance by Tenant under this Lease. The Security Deposit shall be returned (without interest) to Tenant (or, at Landlord's option, to the last permitted assignee of all Tenant's interest under this Lease) after the expiration of the termsTerm, covenants and conditions or sooner termination of this Lease and delivery of possession of the Premises to Landlord in accordance with ARTICLE 23 if, at such time, Tenant is not in default under this Lease beyond the expiration of applicable notice and cure periods. If Landlord's interest in this Lease is conveyed, transferred or assigned, Landlord shall transfer or credit the Security Deposit to Landlord's successor in interest, and Landlord shall thereafter be released from any liability for the return of the Security Deposit. Landlord may intermingle the Security Deposit with Landlord's own funds and shall not be deemed to be kept and performed by Tenant during a trustee of the period commencing on the Execution Date and ending upon the expiration or termination of this LeaseSecurity Deposit. If Tenant defaults with respect fails to timely pay or perform any provision of obligation under this Lease, includingLandlord may, after the expiration of any applicable notice and cure periods but not limited prior to, concurrently with or subsequent to exercising any provision relating to the payment of Rentother right or remedy, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in defaultmonetary obligation due under this Lease, or to compensate Landlord for any other expense, loss or damage that which Landlord may suffer incur by reason of Tenant’s default's failure, including any damage or deficiency in the reletting of the Premises. If all or any portion of the Security Deposit is so used used, applied or appliedretained, then Tenant shall, shall within ten (10) days following demand therefor, increase the amount of the L/C Security or receiving notice of such action deposit cash with Landlord cash in an amount sufficient to restore the Security Deposit to its required the original amount, and . Landlord may withhold the Security Deposit after the expiration of the Term or sooner termination of this Lease until Tenant has paid the full Tenant’s failure to do so shall be a material breach share of any Impositions or any other amounts payable by Tenant under this Lease. The provisions of this Article 10 shall survive the expiration Security Deposit is not a limitation on Landlord's damages or earlier termination of other rights under this Lease. 10.2 , a payment of liquidated damages or prepaid Rent, and shall not be applied by Tenant to the Rent for the last (or any) month of the Term, or to any other amount due under this Lease. If this Lease is terminated due to any default of Tenant, any portion of the Security Deposit remaining at the time of such terminations shall immediately inure to the benefit of Landlord to the extent required to compensate Landlord for any unpaid rent or other costs and expenses incurred by Landlord in connection with this Lease as a result of such termination. In the event of bankruptcy or other debtor-/creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent rent and other charges due Landlord for all periods prior to the filing of such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Lease Agreement (Qualtrics International Inc.), Lease Agreement (Qualtrics International Inc.)

Security Deposit. 10.1 Tenant Upon the execution of this Agreement and the Sublease, Renter shall deposit with Landlord within five (5) days deliver to Ariba cash or irrevocable standby letter of credit subject to the terms of Paragraph 4 of the Execution Date a security deposit in Sublease, but Ariba and Renter hereby agree that the amount set forth in Section 2.8 reduction described therein shall not apply for the Term and Option Term, for Five Hundred Thousand (the “Security Deposit”), which Security Deposit shall be held by Landlord $500,000) as security for the faithful prompt and complete performance by Tenant Renter of all of the terms, covenants obligations and conditions terms of this Lease Agreement to be kept and performed by Tenant during Renter, and not as prepayment of Furniture Rent (the period commencing on "Security Deposit). Upon the Execution Date and ending upon occurrence of an event of default by Renter under the expiration or termination terms of this Lease. If Tenant defaults with respect Agreement, Ariba may deduct and apply the above Security Deposit, as is reasonably necessary, towards the following: (i) to remedy any provision of this Lease, including, but not limited to, any provision relating to default by Renter in the payment of RentFurniture Rent under this Agreement; (ii) to clean, then Landlord may restore and repair the Furniture following its surrender to Ariba, if not surrendered in the condition required pursuant to this Agreement, and (but iii) to remedy any other default of Renter hereunder. Ariba shall not be required to) use, apply or retain all or any part of limit the amounts deducted from the Security Deposit for to the payment of any Rent or any other sum in default, or amounts it reasonably deems necessary to compensate Landlord for any other loss or damage that Landlord may suffer cure defaults hereunder by reason of Tenant’s defaultRenter. If In the event any portion of the Security Deposit is so used or applieddrawn upon by Ariba, then Tenant Renter shall, within ten five (105) days following after demand thereforby Ariba shall deposit cash with Ariba in an amount that, increase when added to the amount of Security Deposit remaining, shall equal the L/C original amount of the Security or deposit cash with Landlord in an amount sufficient to restore Deposit. Ariba shall not be deemed a trustee of the Security Deposit. Ariba may use the Security Deposit in Ariba's ordinary business and shall not be required to its required amount, and Tenant’s failure to do so segregate it from Ariba's general accounts. Renter shall not be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver entitled to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then on the Security Deposit. The Security Deposit, or less any balance thereofportion thereof which Ariba is entitled to retain, shall be returned to Tenant Renter (or, or at Landlord’s option, Ariba's option to the last assignee assignee, if any, of Tenant’s Renter's interest hereunder) within thirty sixty (3060) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount later of the Security Deposit, with an initial term expiration of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated hereof or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in which Renter vacates the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Sublease Commencement Date Agreement (Ariba Inc), Sublease (Interwoven Inc)

Security Deposit. 10.1 Tenant shall deposit with Landlord within five Lessee further agrees to pay to Lessor Thirty-One Thousand Four Hundred Eighty-Three and 62/100 (5$31,483.62) days of the Execution Date Dollars as a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall to be held by Landlord Lessor as security for the faithful performance by Tenant Lessee of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant Lessee during the period commencing on the Execution Date and ending upon the expiration or termination of this Leaseterm hereof. If Tenant Lessee defaults with respect to any provision of this Lease, including, but not limited to, any provision to the provisions relating to the payment of Rentrent, then Landlord Lessor may (but shall not be required to) use, apply or retain all or any part of the Security Deposit this security deposit for the payment of any Rent rent or any other sum in default, or for the payment of any amount which Lessor may spend or become obligated to spend by reason of Lessee's default, or to compensate Landlord Lessor for any other loss or damage that Landlord which Lessor may suffer by reason of Tenant’s Lessee's default. If any portion of the Security Deposit said deposit is so used or applied, then Tenant shall, Lessee shall within ten (10) days following after written demand therefor, increase the amount of the L/C Security or deposit cash with Landlord Lessor in an amount sufficient to restore the Security Deposit security deposit to its required amount, original amount and Tenant’s Lessee's failure to do so shall be a material breach of this Lease. The provisions of Lessor shall not be required to keep this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenantsecurity deposit separate from its general funds, and thereupon Landlord Lessee shall not be discharged from any further liability with respect entitled to interest on such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant Lessee shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, security deposit or any balance thereof, thereof shall be returned to Tenant (Lessee or, at Landlord’s Lessee's option, to the last assignee of Tenant’s Lessee's interest hereunder) within thirty (30) days after hereunder at the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Depositterm. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant termination of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its Lessor's interest in the Premisesthis Lease, then Tenant Lessor shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment transfer said deposit to the L/C Security naming Landlord’s grantee as substitute beneficiaryLessor's successor-in-interest. If the required Security changes while L/C Security is in forcemonthly rent shall, then Tenant from time to time, increase during the term of this Lease, Lessee shall deliver (and, if thereupon deposit with Lessor additional security so that the issuer requires, Landlord amount of deposit held by Lessor shall consent to) a corresponding amendment at all times bear the same proportion to the L/C Securitythen current rent as the original security deposit bears to the original monthly rent set forth in paragraph 1, hereof.

Appears in 2 contracts

Sources: Modified Net Industrial Building Lease (Decrane Aircraft Holdings Inc), Modified Net Industrial Building Lease (Decrane Holdings Co)

Security Deposit. 10.1 On or before the Commencement Date, Tenant shall will deposit with Landlord within five a sum in an amount of THIRTY ONE THOUSAND SIX HUNDRED FOUR DOLLARS AND 8 CENTS (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”$31,604.08), which Security Deposit shall be held by Landlord as security for the full and faithful performance by Tenant of all of the terms, covenants and conditions every provision of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this LeaseTenant. If Tenant defaults with respect to any provision of this Lease, including, including but not limited to, any provision to the provisions relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit this security deposit for the payment of any Rent or any other sum in default, default or to compensate Landlord for the payment of any other loss or damage that amount which, Landlord may suffer spend or become obligated to spend by reason of Tenant’s default. If any portion of the Security Deposit said deposit is so to be used or applied, then Tenant shall, within ten five (105) days following after written demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit security deposit to its required amount, original amount and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall not, unless otherwise required by law, be discharged required to keep this security deposit separate from any further liability with respect to such depositits general funds. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, security deposit or any balance thereof, thereof shall be returned to Tenant (or, at Landlord’s option, to the last assignee transferee of Tenant’s interest hereunder) within thirty (30) days after at the expiration of the Lease term (or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable pursuant to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”Section 2 herein) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount upon Tenant’s vacation of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security DepositPremises. In the event of a wrongful drawthe Building is sold, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing security deposit will be transferred to the issuer of the L/C Security that Landlord’s draw was erroneousnew owner. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Lease Agreement (Columbia Care Inc.), Lease Agreement (Columbia Care Inc.)

Security Deposit. 10.1 11.1 Tenant shall deposit with Landlord within five (5) days of on or before the Execution Date a security deposit in the amount sum set forth in Section 2.8 2.6 (the “Security Deposit”), which Security Deposit sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Leasethe Term. If Tenant defaults Defaults (as defined below) with respect to any provision of this Lease, including, but not limited to, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. TENANT HEREBY WAIVES THE REQUIREMENTS OF SECTION 1950.7 OF THE CALIFORNIA CIVIL CODE, AS THE SAME MAY BE AMENDED FROM TIME TO TIME. 10.2 11.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 11.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 11.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 11.5 If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 11.6 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument proposed by Tenant that is acceptable to Landlord in its sole discretion. Tenant may at any time, except during Defaultwhen Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows.: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the TermTerm and until the date that is four (4) months after the then-current Term Expiration Date, a letter of credit in the form of Exhibit H E issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. Landlord may require the L/C Security to be re-issued by a different issuer at any time during the Term if Landlord reasonably believes that the issuing bank of the L/C Security is or may soon become insolvent; provided, however, Landlord shall return the existing L/C Security to the existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to Landlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: then (i) Landlord shall with reasonable diligence complete any necessary calculations; and , (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires and (iii) in such extended period, Landlord shall not unreasonably refuse to exceed 30 days)consent to an appropriate reduction of the L/C Security. Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension, not to exceed Five Thousand Dollars ($5,000) in any one instance. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Lease (Cue Health Inc.), Lease (Cue Health Inc.)

Security Deposit. 10.1 Tenant shall deposit with Landlord within five (5) days in advance upon Tenant’s execution of this Lease, for Landlord’s general account, the Execution Date a security deposit in the amount Security Deposit set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord 1.01.G hereof as security for the faithful performance by Tenant of all of the termseach and every term, covenants covenant, agreement and conditions condition of this Lease to be kept and performed by Tenant during Tenant. In the period commencing on the Execution Date and ending upon the expiration or termination event of this Lease. If Tenant defaults with respect to any provision of this Leasea Default, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply on Tenant’s behalf or retain (without liability for interest) during the Term all or any part of the Security Deposit to the extent required for the payment of any Rent or any other sum in defaultwhich may be owed hereunder, or to compensate Landlord for any other loss or damage that sum which Landlord may suffer by reason expend to cure any Default of Tenant’s default. If any portion After each application from the Security Deposit, Tenant shall, within five (5) business days of Notice from Landlord, restore said deposit to the amount set forth in Section 1.01.G hereof. The use, application or retention of the Security Deposit is so used by Landlord shall not be deemed a limitation on Landlord’s recovery in any case, or applieda waiver by Landlord of any Default, then nor shall it prevent Landlord from exercising any other right or remedy for a Default by Tenant. If Tenant shallhas complied with all the terms, within ten (10) days following demand thereforcovenants, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amountagreements, and Tenant’s failure to do so shall be a material breach conditions of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be (less any amount applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, as herein provided) shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s without interest hereunder) within thirty (30) days after the expiration or earlier termination Termination Date and after surrender of possession of the Leased Premises to Landlord in accordance with the terms of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Office Lease Agreement (SI-BONE, Inc.), Office Lease Agreement (SI-BONE, Inc.)

Security Deposit. 10.1 On or before the date of execution of the lease, Tenant shall will deposit with Landlord within five the total sum of Five thousand Dollars (5$5000.00) days (hereinafter referred to as "Security Deposit"). For the first three months the base rent will be free. The base rent, plus property taxes, fire insurance, and sales tax for the fourth month will be $5,846.62 due on the first day of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which second month. Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants covenants, and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Leaseterm hereof. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision to the provisions relating to the payment of Rentrent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit this security deposit for the payment of any Rent rent or any other sum in default, or for the payment of any amount which Landlord may spend or become obligated to spend by reason of Tenant's default, or to compensate Landlord for any other loss or damage that which Landlord may suffer by reason of Tenant’s 's default. If any portion of the Security Deposit said deposit is so used or applied, then applied Tenant shall, within ten five (105) days following after written demand therefor, increase the amount of the L/C Security or therefore deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, original amount and Tenant’s 's failure to do so shall be a material breach of default under this Lease. The provisions of Landlord shall not be required to keep this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenantsecurity deposit separate from its general funds, and thereupon Landlord Tenant shall not be discharged from any further liability with respect entitled to interest on such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, Deposit or any balance thereof, thereof shall be returned to Tenant (or, at Landlord’s 's option, to the last assignee of Tenant’s 's interest hereunder) within thirty TEN (3010) days after the following expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security DepositTerm. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant termination of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its 's interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requiresthis Lease, Landlord shall consent to) an amendment transfer said deposit to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is 's successor in force, then Tenant interest and shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Securityhave no further obligation with respect thereto.

Appears in 2 contracts

Sources: Agreement and Plan of Reorganization (Biomira Inc), Commercial Lease Agreement (Biomira CORP)

Security Deposit. 10.1 Contemporaneously with the execution of this Lease, (i) Landlord shall retain and apply the Existing Security Deposit set forth in Section 2.2 above as part of the Security Deposit set forth in Section 10 of the Summary, and (ii) Tenant shall deposit with Landlord within five (5) days the balance of the Execution Date a security deposit such Security Deposit in the amount set forth in Section 2.8 of $38,898.28 (such amounts retained by Landlord and deposited by Tenant shall be collectively referred to herein as the “Security Deposit”"SECURITY DEPOSIT"), which . The Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants covenants, and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this LeaseLease Term. If Tenant defaults with respect to any provision provisions of this Lease, including, but not limited to, any provision the provisions relating to the payment of Rent, then Landlord may (may, but shall not be required to) , use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or for the payment of any amount that Landlord may spend or become obligated to spend by reason of Tenant's default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s 's default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following after written demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required original amount, and Tenant’s 's failure to do so shall be a material breach of default under this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (Tenant, or, at Landlord’s 's option, to the last assignee of Tenant’s 's interest hereunderin the Security Deposit, within thirty (30) days following the expiration (or earlier termination for any reason other than an event of default by Tenant) of the Lease Term. Tenant shall not be entitled to any interest on the Security Deposit, except to the extent Landlord fails to return the Security Deposit within thirty (30) days after expiration (or such earlier termination) of the Lease Term, in which case the Security Deposit shall accrue interest at the Interest Rate from and after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable such 30-day period until returned to Landlord in its sole discretionTenant. Tenant may at any time, except during Default, deliver a letter hereby waives the provisions of credit (Section 1950.7 of the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide LandlordCalifornia Civil Code, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any all other provisions of this Lease allowing law, now or hereafter in force, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw remedy defaults in the same manner and for the same purposes as a cash Security Deposit. In the event payment of a wrongful drawrent, the parties shall cooperate to allow repair damage caused by Tenant or to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in clean the Premises, then it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant shall at or any officer, employee, agent or invitee of Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Office Lease (Websense Inc), Office Lease (Websense Inc)

Security Deposit. 10.1 Upon execution of this lease Tenant shall will deposit with Landlord within the sum of One hundred and one thousand four hundred seventy seven dollars and twenty five cents (5$101,477.25) days of the Execution Date a as security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord as security ) for the full and faithful performance by Tenant of all of the terms, covenants and conditions every provision of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this LeaseTenant. If Tenant defaults is in Default with respect to any provision of this Lease, including, but not limited to, any provision the provisions relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit security deposit for the payment of any Rent or and any other sum with respect to which Tenant is in defaultDefault, or for the payment of any other amount which Landlord may spend or become obligated to spend by reason of Tenant’s Default or to compensate Landlord for any other loss or damage that which Landlord may suffer by reason of Tenant’s defaultDefault. If any portion of the Security Deposit security deposit is so to be used or applied, then Tenant shallTenant, within ten five (105) days following after written demand therefortherefore, increase the amount of the L/C Security or shall deposit cash with Landlord in an amount sufficient to restore the Security Deposit security deposit to its required amount, original amount and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 Landlord shall survive not be required to keep the expiration or earlier termination of this security deposit separate from its general funds and Tenant shall not be entitled to interest on any security deposit. Provided Tenant has not been in default under the Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall Deposit, will be deemed to be applied first to reduced by one (1) month following the payment completion of Rent and other charges due Landlord for all periods prior to every two (2) years of the filing of such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such depositLease. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform performs every provision of this Lease to be performed by it, then the Security Deposit, security deposit or any balance thereof, thereof shall be returned to Tenant (or, or at Landlord’s option, option to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse LandlordTenant’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place vacation of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously heldPremises. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Office Lease (ElectroCore, LLC), Office Lease (ElectroCore, LLC)

Security Deposit. 10.1 Tenant shall deposit with Landlord within five (5) days of the Execution Date a security deposit in the If an amount is set forth in Section 2.8 (the Basic Lease Provisions as the Security Deposit”), which upon execution of this Lease, Landlord acknowledges receipt of Tenant’s Security Deposit shall be held by Landlord as security for the full and faithful performance by Tenant of all of the terms, covenants and conditions terms of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the ▇▇▇▇▇▇. Such Security Deposit, or any balance thereof, Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in Lease provided ▇▇▇▇▇▇ has fully and faithfully carried out all of Tenant’s obligations hereunder, including the form payment of cash, a letter all amounts due to Landlord hereunder and the surrender of credit or any other security instrument acceptable the Premises to Landlord in its sole discretionthe condition required herein. Tenant may at any timeHowever, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, at ▇▇▇▇▇▇▇▇’s option, may apply such sum on account of the payment of the last month’s Minimum Monthly Rental hereunder. Said sum may be commingled with other funds of Landlord and maintain shall not bear interest. Notwithstanding the above, if ▇▇▇▇▇▇ becomes obligated to pay a Late Charge or upon the occurrence of any Event of Default described in paragraph 24 below, at Landlord’s option, the Security Deposit shall become immediately due and payable in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Depositto be applied against any Late Charge, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated damages or unpaid, then: (i) losses suffered by Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek result of ▇▇▇▇▇▇’s failure to enjoin, prevent, timely pay Rental or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds an Event of any draw in the same manner and for the same purposes as a cash Security DepositDefault. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant sale of the wrongfully drawn sumsBuilding subject to this Lease, Landlord shall transfer the Security Deposit to the purchaser to be held under the terms of this Lease, and Landlord shall upon request confirm in writing thereupon be released from all liability for the return of the Security Deposit; ▇▇▇▇▇▇ agrees to look solely to the issuer new Landlord for the return of the L/C Security that Landlord’s draw was erroneousDeposit. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Commercial Lease (Credence Systems Corp), Commercial Lease (Credence Systems Corp)

Security Deposit. 10.1 Concurrently with ▇▇▇▇▇▇'s delivery of this Lease, Tenant shall deposit with Landlord within five (5) days the sum, if any, stated in Item 9 of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall Basic Lease Provisions to be held by Landlord as security for the full and faithful performance by Tenant of all of the terms, covenants and conditions of Tenant's obligations under this Lease (the Security Deposit ). Upon any default by Tenant, including specifically Tenant's failure to be kept pay rent or to abide by its obligations under Sections 7.1 and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease15.3 below, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit as full or partial compensation for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten five (105) days following after written demand thereforby Landlord, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. Landlord shall not be required amount, to keep this Security Deposit separate from its general funds and Tenant’s failure Tenant shall not be entitled to do so shall be a material breach of interest on the Security Deposit. If Tenant fully performs its obligations under this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, thereof shall be returned to Tenant (or, or at Landlord’s option, 's option to the last assignee of Tenant’s 's interest hereunderin this Lease) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter provided that Landlord may retain the Security Deposit until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full. Provided Tenant has not been in default of credit in any provision of this Lease during the form of Exhibit H issued by an issuer reasonably satisfactory to LandlordTerm, in the amount one-third (1/3) of the Security Deposit, with an initial term Deposit will be returned to the Tenant during the twenty-fifth (25th) month of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: and one-third (i1/3) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. will be returned to the Tenant during the sixty-first (c61st) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as month of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security DepositTerm. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Assignment of Lease (NBC Internet Inc), Assignment of Lease (Xoom Inc)

Security Deposit. 10.1 Tenant shall deposit with Landlord within five (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord as As additional security for the faithful full and prompt performance by Tenant of all of the terms, terms and covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, includingTenant has deposited with Landlord a sum of Thirty Thousand Nine Hundred and Twenty Nine Dollars and seventeen cents ($28,525.00) at the time of lease execution, but not limited to, any provision relating to the payment of Rent, then Landlord may (but which shall not be required to) use, apply or retain all or constitute rent for any part month unless so applied by Landlord on account of Tenant's default. To the extent that Landlord has not applied the Security Deposit for the payment on account of any Rent or any other sum in a default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in . In the form event Tenant fails to take possession of cash, a letter of credit the Demised Premises on the Lease Commencement Date or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except vacates or abandons the Demised Premises during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter the Security Deposit shall not be deemed to be liquidated damages, and such application of credit the Security Deposit shall not preclude Landlord from recovering from Tenant all additional damages incurred by Landlord. If Tenant fails at any time to perform its obligations, Landlord may at its option apply said deposit, or so much thereof as is required, to cure Tenant's default, but if prior to the termination of this lease Landlord depletes said deposit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlordwhole or in part, in Tenant shall immediately restore the amount so used by Landlord. Following termination of this lease and satisfaction of all Tenant obligations thereunder, Landlord shall return to Tenant any unused portion of the Security Deposit. Upon execution of the Lease, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires also provide its first (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel1st) in handling Landlord’s acceptance of L/C Security or its replacement or extensionmonthly rental payment due hereunder. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Office Lease Agreement (Technest Holdings Inc), Office Lease Agreement (Technest Holdings Inc)

Security Deposit. 10.1 10.1. Tenant shall deposit in cash with Landlord within five (5) days of on or before the Execution Effective Date a security deposit in the amount sum set forth in Section 2.8 2.7 (the “Security Deposit”), which Security Deposit sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this LeaseTerm. If Tenant defaults Defaults with respect to any provision of this Lease, including, but not limited to, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 10.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 10.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 10.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit ; provided, however, that Landlord may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by retain an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term as it shall reasonably determine, to secure the payment of at least one year. Ifany Rent, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: amount of which Landlord is then unable to determine finally (i) and Landlord shall return any such retained amount to Tenant promptly following the final determination of such Rent amount and the full payment to Landlord of such Rent). 10.5. The Security Deposit shall not be deemed an advance payment of Rent or a measure of Landlord’s damages for any default under this Lease by Tenant, nor shall it be a bar or defense to any action that Landlord may at any time commence against Tenant. The Security Deposit shall be the property of Landlord and Landlord may commingle the Security Deposit with reasonable diligence complete any necessary calculations; other assets of Landlord or its affiliates and (ii) Tenant shall extend the expiry date of such L/C Security from time not be entitled to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as interest on the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Lease (Graybug Vision, Inc.), Lease (Graybug Vision, Inc.)

Security Deposit. 10.1 Tenant shall deposit has deposited with Landlord within five the sum of $3,000, (5Three Thousand Dollars) days of hereinafter referred to as "the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord as security for ," to secure the faithful performance by Tenant of all of the termseach term, covenants covenant, and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination condition of this Lease. If Tenant defaults with respect shall at any time fail to make any provision of payment or fail to keep or perform any term, covenant, and condition on its part to be made or performed or kept under this Lease, includingLandlord may, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) obligated to and without waiving or releasing Tenant from any obligation under this Lease, use, apply or retain all the whole or any part of the Security Deposit for (i) to the payment extent of any Rent sum due to Landlord; or (ii) to make any other sum in default, required payment on Tenant's behalf; or (iii) to compensate Landlord for any other loss loss, damage, attorneys fees, or damage that expense sustained by Landlord may suffer by reason of Tenant’s due to Tenants default. If any portion In such event, Tenant shall within 10 days of the Security Deposit is so used or appliedwritten demand by Landlord, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with remit to Landlord in an amount sufficient funds to restore the Security Deposit to its required amount, and original sum. Tenant’s 's failure to do so shall be a material breach of this Lease. The provisions of this Article 10 Landlord shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, not be required to keep the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenantseparate from its general funds, and thereupon Landlord Tenant shall not be discharged from any further liability with respect entitled to interest on such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Should Tenant shall fully comply with all of the terms, covenants, and faithfully perform every provision conditions of this Lease to be performed and at the end of the term of this Lease leave the Premises in the condition required by itthis Lease, then the Security Deposit, or less any balance thereofsums owing to Landlord, shall be returned to Tenant (or, at Landlord’s 's option, to the last first assignee of Tenant’s interest 's interests hereunder) within thirty (30) 30 days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, Lease and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount vacancy of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated Premises by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extensionTenant. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Lease Agreement, Lease Agreement

Security Deposit. 10.1 Tenant shall deposit with Landlord within five (5) days pay to Landlord, immediately upon execution of this Lease, the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this LeaseTerm hereof. If Tenant defaults with respect to any provision of this the Lease, including, including but not limited to, any provision the provisions relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or for the payment of any other amount which Landlord may spend or become obligated to spend by reason of Tenant's default or to compensate Landlord for any other loss or damage that Landlord which landlord may suffer by reason of Tenant’s 's default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following upon demand therefor, increase the amount of the L/C Security or deposit cash with Landlord cash, in an amount sufficient to restore the Security Deposit to its required amount, original amount and Tenant’s 's failure to do so shall be a material breach of this Lease. The provisions of this Article 10 Landlord shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, not be required to keep the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenantseparate from its general funds, and thereupon Landlord Tenant shall not be discharged from any further liability with respect entitled to such depositinterest on the Security Deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, Deposit or any balance thereof, thereof shall be returned to Tenant (or, or at Landlord’s option, 's option to the last assignee of Tenant’s 's interest hereunder) within thirty (30) days after the following expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of provided that Landlord may retain the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of Deposit until such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied due from Tenant in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Leasehas been determined paid in full. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.Initials /s/ EJC -------- Initials --------

Appears in 2 contracts

Sources: Lease Agreement (HNC Software Inc/De), Lease Agreement (Fair Isaac & Company Inc)

Security Deposit. 10.1 Tenant shall deposit with Landlord within five (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord as As security for the full and faithful payment of all sums due under this Lease and the full and faithful performance by Tenant of all of the terms, covenants every covenant and conditions condition of this Lease to be kept and performed by Tenant, Tenant during the period commencing on the Execution Date and ending agrees to pay to Landlord upon the expiration or termination execution of this LeaseLease the sum specified in the definition of the term Security Deposit. If Tenant defaults shall breach or default with respect to any provision payment obligation or other covenant or condition of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for to the payment of any Rent sum in default or any other sum in damage suffered by Landlord as a result of such breach or default, or to compensate and in such event, Tenant shall, upon demand by Landlord, deposit with Landlord for any other loss or damage the amount so applied so that Landlord may suffer by reason shall have the full amount of Tenant’s defaultthe Security Deposit on hand at all times during the Lease Term. If Landlord's use or application of all or any portion of the Security Deposit is so used shall not impair any other rights or appliedremedies provided under this Lease or under applicable law and shall not be construed as a payment of liquidated damages. If Tenant shall have fully complied with all of the covenants and conditions of this Lease, then Tenant shallthe Security Deposit shall be repaid to Tenant, without interest, within ten (10) days following demand therefor, increase Business Days after the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach expiration of this Lease. The provisions Tenant may not mortgage, assign, transfer or encumber the Security Deposit and any such act on the part of this Article 10 Tenant shall survive the expiration be without force or earlier termination of this Lease. 10.2 effect. In the event of bankruptcy any bankruptcy, insolvency, reorganization or other debtorcreditor-creditor debtor proceedings shall be instituted by or against Tenant, the Security Deposit shall be deemed to be applied first to the payment of 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 proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in proceedings and the Premises the funds deposited hereunder by Tenantbalance, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by itif any, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to retained by Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as followsand applied against Landlord's damages. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Lease (Integrated Information Systems Inc), Lease (Integrated Information Systems Inc)

Security Deposit. 10.1 Tenant shall has agreed to deposit with Landlord within five (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord as security for the faithful punctual performance by Tenant of all each and every obligation of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of it under this Lease. If Tenant defaults with respect to In the event of any provision of this Leasedefault by Tenant, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for to cure the payment of any Rent or any other sum in default, default or to compensate reimburse Landlord for any other loss or damage that sum which Landlord may suffer spend by reason of Tenant’s the default. If any portion In the case of every such application or retention, Tenant shall, on demand, pay to Landlord the sum so applied or retained which shall be added to the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase that the amount same shall be restored to its original amount. If at the end of the L/C Security or deposit cash with Term, Tenant shall not be in default under this Lease and shall have delivered to Landlord in an amount sufficient to restore the Security Deposit to its required amount, evidence of final utility service readings and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenantpayment thereof, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (orwithin [***] days. If Landlord shall sell the Shopping Center, at Landlord’s optionor shall lease the Shopping Center, in either case subject to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration this Lease, or earlier termination shall otherwise assign or dispose of this Lease. 10.5 The , Landlord may assign and turn over the Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable balance thereof to Landlord in its sole discretion. Tenant may at any timeLandlord's grantee, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlordlessee or assignee, and maintain in full force Tenant hereby releases and effect throughout relieves Landlord from any and all liability for the Termreturn of said deposit and shall look solely to said grantee, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory lessee or assignee; it being expressly agreed that this provision shall apply to Landlordeach and every sale, in the amount conveyance or lease of the Security Deposit, with an initial term Shopping Center or assignment or disposition of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold not be required to place the proceeds of any draw Security Deposit in the same manner an interest-bearing account and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties said fund shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return be returned to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiarywithout interest. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.---------- *** confidential treatment requested 8-4 46 ARTICLE 9

Appears in 2 contracts

Sources: Lease Agreement (Silicon Entertainment Inc /Ca/), Lease Agreement (Silicon Entertainment Inc /Ca/)

Security Deposit. 10.1 Tenant (a) Prior to the Commencement Date, Sublessee shall deposit with Landlord within five (5) days Sublessor the sum of the Execution Date a security deposit in the amount set forth in Section 2.8 $53,390 (the “Security Deposit”), ) which Security Deposit sum shall be held by Landlord Sublessor as security for the faithful performance by Tenant Sublessee of all of the terms, covenants and conditions of this Lease Sublease to be kept and performed by Tenant Sublessee during the period commencing on the Execution Commencement Date and ending upon the expiration or termination of Sublessee’s obligations under this LeaseSublease. If Tenant Sublessee is in monetary default or otherwise defaults with respect to any provision of this LeaseSublease, including, but not limited to, including any provision relating to the payment of Rent, in any case beyond applicable notice and cure periods, then Landlord Sublessor may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord Sublessor for any other loss or damage that Landlord Sublessor may suffer by reason of TenantSublessee’s default. If any portion of the Security Deposit is so used or applied, then Tenant Sublessee shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord Sublessor in an amount sufficient to restore the Security Deposit to its required original amount, and TenantSublessee’s failure to do so shall be a material breach of this LeaseSublease. The provisions of this Article 10 Section 14 shall survive the expiration or earlier termination of this LeaseSublease. 10.2 (b) In the event of bankruptcy or other debtor-creditor proceedings against TenantSublessee, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord Sublessor for all periods prior to the filing of such proceedings. 10.3 Landlord (c) Sublessor may deliver to any purchaser of LandlordSublessor’s interest in the Subleased Premises the funds deposited hereunder by TenantSublessee, and thereupon Landlord Sublessor shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 (d) If Tenant Sublessee shall fully and faithfully perform every provision of this Lease Sublease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant Sublessee (or, at LandlordSublessor’s option, to the last assignee of TenantSublessee’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this LeaseSublease. 10.5 (e) If the Security Deposit shall be in cash, Sublessor shall hold the Security Deposit in an account at a banking organization selected by Sublessor; provided, however, that Sublessor shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Sublessor. Sublessor shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Sublessor shall not be required to credit Sublessee with any interest for any period during which Sublessor does not receive interest on the Security Deposit. (f) The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord Sublessor in its sole discretion. Tenant Sublessee may at any time, except during Defaultwhen Sublessee is in default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows.: (ai) If Tenant Sublessee elects to deliver L/C Security, then Tenant Sublessee shall provide LandlordSublessor, and maintain in full force and effect throughout the Term and until the date that is thirty (30) days after the expiration or termination of the Term, a letter of credit in the form of Exhibit H reasonable acceptable to Sublessor issued by an issuer reasonably satisfactory to LandlordSublessor, in the amount of the Security Deposit, with an initial term of at least one year. If, at Sublessor may require the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security to be re-issued by a different issuer at any time during the Term if Sublessor reasonably believes that the issuing bank of the L/C Security is or may soon become insolvent; provided, however, Sublessor shall return the existing L/C Security to the existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Sublessee shall immediately deliver to Sublessor (without the requirement of notice from time Sublessor) either cash in the amount of the Security Deposit or substitute L/C Security issued by an issuer reasonably satisfactory to time Sublessor, and otherwise conforming to the requirements set forth in this Section 5, and Sublessor shall return the existing L/C Security to the existing issuer immediately upon receipt of the substitute L/C Security. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as Landlord reasonably requires made by such issuer’s primary bank regulator (not to exceed 30 daysi.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). Tenant Except with respect to the initial letter of credit delivered prior to the Commencement Date, Sublessee shall reimburse LandlordSublessor’s reasonable legal costs (as reasonably estimated by LandlordSublessor’s counsel) in handling LandlordSublessor’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Sublease (Spero Therapeutics, Inc.), Sublease (Spero Therapeutics, Inc.)

Security Deposit. 10.1 The Landlord acknowledges receipt from the Tenant shall deposit with Landlord within five (5) days of the Execution Date a security deposit Security Deposit in the amount set forth in Section 2.8 (1.1(h) and the “Security Deposit”), which Security Deposit shall be held by the Landlord as security without liability for the faithful performance by Tenant of all of the terms, covenants interest and conditions of this Lease to may be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then in the Landlord’s discretion, to remedy any default by the Tenant shallhereunder, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord whether in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first respect to the payment of Rent and or other charges payments due to the Landlord for all periods under the terms of this Lease. In the event the entire Security Deposit or any portion thereof is applied by the Landlord towards the payment of overdue Rent prior to the filing expiration of such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by itTerm, then the Security DepositTenant shall, or any balance thereofon written demand of the Landlord, shall be returned to Tenant (or, at Landlord’s option, forthwith remit to the last assignee of Tenant’s interest hereunder) within Landlord such sum as is sufficient to restore such Security Deposit to its original amount. Within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be the Term and subject to delivery of exclusive possession of the Premises by the Tenant to the Landlord in the form state of cashrepair required by the Tenant pursuant to Section 9.1 hereof, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Termwithout limiting any of its rights or remedies under this Lease or at law, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of shall return the Security Deposit, with an initial term of at least one year. Ifor so much thereof as has not been applied by the Landlord, as aforesaid, without interest to the Tenant, less all costs and expenses which the Landlord, at the Term Expiration DateLandlord’s option, any Rent remains uncalculated or unpaid, then: may incur (i) Landlord shall with reasonable diligence complete in correcting or satisfying any necessary calculations; and default, or any Rent owing by the Tenant, under this Lease, (ii) in returning the Premises to the state of repair required by the Tenant shall extend the expiry date of such L/C Security from time pursuant to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C SecuritySection 9.1 hereof, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) in employing security personnel to be on site during the L/C Tenant’s move from the Building at the expiration of the Term. The Landlord may deliver the Security provides for automatic renewals, Landlord requests that Deposit to any purchaser of the issuer confirm Landlord’s interest in the current L/C Security expiry date (with a copy of such request to Tenant), Building and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds thereby be discharged of any draw in the same manner and for the same purposes as a cash further liability with respect to such Security Deposit. In The Landlord may commingle the event of Security Deposit with its own funds and shall not hold the Security Deposit as a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneoustrustee. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Lease of Office Space (Zymeworks Inc.), Lease of Office Space (Zymeworks Inc.)

Security Deposit. 10.1 Tenant shall deposit has deposited with Landlord within five the sum of Thirty Six Thousand Seven Hundred Seventy and 00/100 Dollars (5) days of $36,770.00), which represents the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit . Said sum shall be held by Landlord as security for the Tenant’s faithful performance by Tenant of all of the terms, covenants covenants, and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, including, including but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or apply, and retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, for the payment of any amount which Landlord may spend or become obligated to spend by reason of Tenant’s default, to compensate Landlord for any other loss or damage that which Landlord may suffer by reason of Tenant’s defaultdefault (including without limitation damages for rent lost after the termination of this Lease and all other amounts recoverable under California Civil Code section 1951.2), or repair damage to the Premises caused by Tenant or for which Tenant is liable under this Lease, or to clean the Premises upon the termination of this Lease. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten five (105) days following after written demand therefor, increase the amount of the L/C Security or deposit cash with Landlord Landlord, in Immediate Funds, an amount sufficient to restore the Security Deposit to its required amount, original amount and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 Tenant shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, not be entitled to receive interest on the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall not be discharged from any further liability with respect required to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then segregate the Security Deposit, or any Deposit from its general funds. Landlord shall refund the unused balance thereof, shall be returned to Tenant (or, at Landlord’s option, to of the last assignee of Tenant’s interest hereunder) Security Deposit within thirty (30) days after the expiration later of Landlord’s recovery of possession of the Premises or earlier the termination of this Lease. 10.5 The Security Deposit may be in . Upon the form termination of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) interest in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Depositthis Lease, Landlord shall remit to Tenant any cash transfer the Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date ’s successor in interest. Tenant waives all rights under California Civil Code section 1950.7 to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (extent inconsistent with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Office and Warehouse Lease (Tilly's, Inc.), Office and Warehouse Lease (Tilly's, Inc.)

Security Deposit. 10.1 Tenant Concurrently with Subtenant’s execution of this Sublease, Subtenant shall deposit with Landlord within five provide to Sublandlord a cash Security Deposit (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”) in the amount of Fifty Two Thousand Five Hundred Forty and 4/100 U.S. Dollars ($52,540.04), which but in no event shall Subtenant enter the Subleased Premises until the Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Leasehas been delivered. If Tenant Subtenant fails to pay Rent or any other sums as and when due hereunder, or otherwise defaults with respect to any provision of this LeaseSublease, includingin each case beyond the applicable notice and cure period, but not limited to, any provision relating to the payment of Rent, then Landlord Sublandlord may (but shall not be required obligated to) use, apply or retain all or any part portion of the Security Deposit for the payment of any Rent sum for which Subtenant is obligated or any other sum in default, or to which will compensate Landlord Sublandlord for any other costs, loss or damage that Landlord which Sublandlord may suffer thereby. Any draw or partial draw of the Security Deposit shall not constitute a waiver by reason Sublandlord of Tenant’s defaultits right to enforce its other remedies hereunder, at law or in equity. If any portion of the Security Deposit is so used or applied, then Tenant Subtenant shall, within ten five (105) business days following after written demand therefor, increase the amount of the L/C Security or deposit cash with Landlord Sublandlord in an amount sufficient to restore the Security Deposit to its required original amount, and Tenant. Subtenant’s failure to do so shall be a material breach default of this LeaseSublease. Sublandlord shall not be required to keep the Security Deposit separate from its general funds, and Subtenant shall not be entitled to interest thereon. The Security Deposit or any remaining balance thereof shall be returned to Subtenant, or, at Sublandlord’s discretion, Subtenant’s last assignee, if applicable, within forty-five (45) days after the expiration of the Sublease Term and Subtenant’s vacation and surrender of the Subleased Premises in the condition required by the terms of this Sublease. Subtenant hereby waives the provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or California Civil Code Section 1950.7, other debtor-creditor proceedings against Tenantthan Paragraph 1950.7(b), and 1951.7 and agrees that the Security Deposit shall be deemed to be applied first to governed by the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security DepositSublease. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Sublease (Genomic Health Inc), Sublease (Acelrx Pharmaceuticals Inc)

Security Deposit. 10.1 Tenant shall will deposit with Landlord within five (5) days the sum of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), $0.00 which Security Deposit sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants covenants, and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Leaseterm hereof. If Tenant defaults with respect to any provision of this Lease, including, including but not limited to, any provision to the provisions relating to the payment of Monthly Base Rent or Additional Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit this security deposit for the payment of any Monthly Base Rent or Additional Rent or any other sum in default, or for the payment of any amount which Landlord may spend or become obligated to spend by reason of Tenant's default, or to compensate Landlord for any other loss or damage that which Landlord may suffer by reason of Tenant’s 's default. If any portion of the Security Deposit said security deposit-is so used or applied, then Tenant shall, within ten five (105) days following after written demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit security deposit to its required amount, original amount and Tenant’s 's failure to do so shall be a material breach of this Lease. The provisions of this Article 10 Tenant hereby waives any right, by statute or otherwise, to earn any interest on security deposits or any right to have any security deposits held in a separate account. Landlord shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall not be deemed required to be applied first to the payment of Rent keep any security deposits separate from its general funds and other charges due Landlord for all periods prior to the filing of such proceedings. 10.3 Landlord may deliver to commingle said security deposits with any purchaser other funds of Landlord’s . Tenant shall not be entitled to interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such depositon its security deposits. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by itTenant, then the Security Deposit, or balance of any balance thereof, security deposits made shall be returned to Tenant (or, at Landlord’s 's option, to the last assignee of Tenant’s 's interest hereunder) within thirty sixty (3060) days after the expiration or earlier termination of the term of the this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Office Lease Agreement (Claires Stores Inc), Office Lease Agreement (BMS Distributing Corp.)

Security Deposit. 10.1 Prior to March 1, 2005, Tenant shall deposit with Landlord within five the sum of Seven Hundred Fifty One Thousand Eight Hundred Ninety Four and No/100 Dollars (5$751,894.00) days ("Security "Deposit"). Landlord shall not be deemed a trustee of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which may use the Security Deposit in business, and shall not be held by Landlord as security for the faithful performance by required to segregate it from its general accounts. Tenant of all of the terms, covenants and conditions of this Lease shall not be entitled to be kept and performed by Tenant during the period commencing interest on the Execution Date and ending upon the expiration or termination of this LeaseSecurity Deposit. If Tenant defaults with respect to any provision provisions of this the Lease, including but not limited to the provisions relating to payment of Base Monthly Rent or other charges, Landlord may, after the expiration of all applicable notice and cure periods, to the extent reasonably necessary to remedy Tenant's default, use any or all of the Security Deposit towards payment of the following: (i) Base Monthly Rent or other charges in default; (ii) any other amount which Landlord may spend or become obligated to spend by reason of Tenant's default including, but not limited to, any provision relating to Tenant's failure to restore or clean the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s defaultPremises following vacation thereof. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) business days following after written demand thereforfrom Landlord, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required full original amount, and Tenant’s failure shall pay to Landlord such other sums as necessary to reimburse Landlord for any sums paid by Landlord. If Tenant shall default more than three (3) times in any twelve (12) month period, irrespective of whether or not such default is cured, then the Security Deposit shall, within ten (10) days after demand by Landlord, be increased by Tenant to an amount equal to three (3) times the Base Monthly Rent. Tenant may not assign or encumber the Security Deposit without the consent of Landlord. Any attempt to do so shall be a material breach of this Leasevoid and shall not be binding on Landlord. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier Expiration Date and surrender of the Premises to Landlord, less any amount deducted in accordance with this Section, together with Landlord's written notice itemizing the amounts and purposes for such deduction. In the event of termination of Landlord's interest in this Lease. 10.5 The , Landlord may deliver or credit the Security Deposit may be to Landlord's successor in interest in the form Premises and thereupon be relieved of cashfurther responsibility with respect to the Security Deposit provided such successor assumes, in writing, Landlord's obligations with respect to such Security Deposit. Landlord agrees that in lieu of a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. cash Security Deposit, Tenant may at any time, except during Default, deliver deposit a letter of credit ("Letter of Credit") substantially in the “L/C Security”) form attached hereto as Exhibit "B". Landlord shall be entitled to draw against the entire Security Deposit, as follows. (a) If Letter of Credit at any time provided only that Landlord certifies to the issuer of the Letter of Credit that Tenant elects to deliver L/C Security, then is in default under the Lease. Tenant shall provide Landlord, and maintain in full force and effect throughout keep the Term, a letter of credit in effect during the form entire Lease Term, as the same may be extended, plus a period of Exhibit H four (4) weeks after expiration of the Lease Term. At least thirty (30) days prior to expiration of any Letter of Credit, the term thereof shall be renewed or extended for a period of at least one (1) year. Tenant's failure to so renew or extend the Letter of Credit shall be a material default of this Lease by Tenant. In the event Landlord draws against the Letter of Credit, Tenant shall replenish the existing Letter of Credit or cause a new Letter of Credit to be issued by an issuer reasonably satisfactory such that the aggregate amount of letters of credit available to Landlord, in Landlord at all times during the Lease Term is the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extensionDeposit originally required. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Lease Agreement (Broadcom Corp), Lease Agreement (Broadcom Corp)

Security Deposit. 10.1 Tenant shall agrees to deposit with Landlord within five (5) days Landlord, upon the execution of this Lease, the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord as security for the full and faithful performance by Tenant of all of the termseach and every term, covenants provision, covenant and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination condition of this Lease. If Tenant defaults with respect to any provision an Event of this LeaseDefault occurs, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all the whole or any part of the Security Deposit for the payment of any Rent sum then due hereunder or any other sum in default, or to compensate Landlord for any other loss or damage that which Landlord may suffer expend or be required to expend by reason of Tenant’s defaultbreach including, without limitation, any damages or deficiency in the reletting of the Premises, whether such damages or deficiency shall have accrued before or after re entry by Landlord. If any portion of the Security Deposit is shall be so used used, applied or appliedretained by Landlord at any time or from time to time, then Tenant shallshall promptly, in each such instance, within ten five (105) days following of written demand therefortherefor by Landlord, increase the amount of the L/C Security or deposit cash with pay to Landlord in an amount sufficient such additional sums as may be necessary to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach the original amount set forth in the first Section of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by itis terminated or expired and Tenant is not in default under this Lease at such time, then the Security Deposit, or any the balance thereof, shall be returned to Tenant after all of the following: (or, at Landlord’s option, to a) the last assignee of Tenant’s interest hereunder) within thirty (30) days after time fixed as the expiration or earlier termination of the Term of this Lease. 10.5 The Security Deposit may be in ; (b) the form removal of cash, a letter Tenant from the Premises; (c) the surrender of credit or any other security instrument acceptable the Premises by Tenant to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, accordance with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculationsthis Lease; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) final determination of all amounts payable by Tenant hereunder and payment of same. Except as otherwise required by law, Tenant shall not seek be entitled to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold any interest on the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event absence of a wrongful draw, the parties shall cooperate evidence satisfactory to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant Landlord of an assignment of the wrongfully drawn sumsright to receive the Security Deposit or the remaining balance thereof, and Landlord shall upon request confirm in writing may return the Security Deposit to the issuer original Tenant, regardless of the L/C Security that Landlord’s draw was erroneousone or more assignments of this Lease. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Industrial Building Lease (Power Solutions International, Inc.), Industrial Building Lease (Power Solutions International, Inc.)

Security Deposit. 10.1 Upon Tenant’s execution of this Lease, Tenant will pay to Landlord the sum set forth in Section 1(k) (the “Security Deposit”) as security for the full and faithful performance by Tenant of each and every term, covenant and condition of this Lease. The acceptance by Landlord of the Security Deposit paid by Tenant shall deposit not render this Lease effective unless and until Landlord shall have executed and delivered to Tenant a fully executed copy of this Lease. The Security Deposit may be commingled with Landlord’s other funds or held by Landlord in a separate interest bearing account, with interest paid to Landlord, as Landlord may elect. In the event that Tenant is in default under this Lease, Landlord may retain the Security Deposit for the payment of any sum due Landlord or which Landlord may expend or be required to expend by reason of Tenant’s default or failure to perform; provided, however, that any such retention by Landlord shall not be or be deemed to be an election of remedies by Landlord or viewed as liquidated damages, it being expressly understood and agreed that Landlord shall have the right to pursue any and all other remedies available to it under the terms of this Lease or otherwise. In the event all or any portion of the Security Deposit is so retained by Landlord, Tenant shall, within five (5) days of demand therefor from Landlord, replenish the Execution Date a security deposit in Security Deposit to the full amount set forth in Section 2.8 (1(k). In the “Security Deposit”), which Security Deposit event that Tenant shall be held by Landlord as security for the faithful performance by Tenant of comply with all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination later of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2b) the date one year after the then-current expiry date that Tenant delivers possession of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request Demised Premises to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant sale of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requiresBuilding, Landlord shall consent to) an amendment have the right to transfer the Security Deposit to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in forcepurchaser, then Tenant shall deliver (and, if the issuer requiresand upon acceptance by such purchaser, Landlord shall consent to) a corresponding amendment to be released from all liability for the L/C Securityreturn of the Security Deposit. Tenant shall not assign or encumber the money deposited as security, and neither Landlord nor its successors or assigns shall be bound by any such assignment or encumbrance.

Appears in 2 contracts

Sources: Industrial Lease Agreement (Tandy Brands Accessories Inc), Industrial Lease Agreement (NationsHealth, Inc.)

Security Deposit. 10.1 Tenant shall deposit has deposited with Landlord within five the sum of Three Thousand seven hundred thirty seven dollars and fifty cents Dollars (5$ 3,737.50) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord as security for the full and faithful performance by Tenant of all of the terms, covenants and conditions every provision of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this LeaseTenant. If Tenant defaults with respect to any provision of this Lease, including, including but not limited to, any provision to the provisions relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit this security deposit for the payment of any Rent or any other sum in default or for the payment of any other amount which Landlord may spend or become obligated to spend by reason of Tenant’s default, or to compensate Landlord for any other loss loss, cost or damage that Landlord which landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit said deposit is so used use or applied, then Tenant shall, within ten five (105) days following after written demand therefortherefore, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit security deposit to its required amount, original amount and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall not, unless otherwise required by law, be discharged required to keep this security deposit separate from any further liability with respect its general funds, nor pay interest to such depositTenant. This provision shall also apply If Landlord is required to any subsequent transfers. 10.4 maintain said deposit in an interest bearing account, Landlord will retain the maximum amount permitted under applicable law as a bookkeeping and administrative charge. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, security deposit or any balance thereof, thereof shall be returned to Tenant (or, at Landlord’s option, to the last assignee transferee of Tenant’s interest hereunder) within thirty (30) days after at the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial Lease term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlordupon Tenant’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place vacation of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security DepositPremises. In the event of a wrongful drawthe Building is sold, the parties shall cooperate security deposit will be transferred to allow Tenant to post replacement L/C Security simultaneously with the new owner and the new owner will be solely responsible for the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing security deposit to the issuer of the L/C Security that Landlord’s draw was erroneousTenant. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Office Lease (Alimera Sciences Inc), Office Lease (Alimera Sciences Inc)

Security Deposit. 10.1 12.1. Tenant shall deposit has deposited with Landlord within five (5) days of the Execution Date a security deposit in the amount sum set forth in Section 2.8 2.7 (the “Security Deposit”), which Security Deposit sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults Defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 12 shall survive the expiration or earlier termination of this Lease. TENANT HEREBY WAIVES THE REQUIREMENTS OF SECTION 1950.7 OF THE CALIFORNIA CIVIL CODE WITH RESPECT TO THE USES TO WHICH SECURITY DEPOSITS MAY BE APPLIED PURSUANT TO THIS LEASE AND SUCH SECTION, AS THE SAME MAY BE AMENDED FROM TIME TO TIME. 10.2 12.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 12.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, ; and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If 12.4. Provided Tenant shall fully and faithfully perform every provision of this Lease has surrendered the Premises to be performed by itLandlord, then the Security Deposit, or any balance thereofthereof (after Landlord has made appropriate deductions, if any, to restore the condition of the Premises to that required by the Lease and to cure any other defaults by Tenant under the Lease), shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 12.5. [Intentionally omitted] 12.6. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 12.7. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during DefaultDefault (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H E issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires requires, but no longer than ninety (90) days; and (iii) in such extended period, Landlord shall not unreasonably refuse to exceed 30 days)consent to an appropriate reduction of the L/C Security. Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension, not to exceed Five Hundred Dollars ($500) per occurrence. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. Tenant may at any time replace the L/C Security with a cash Security Deposit, at which time Landlord shall return the L/C Security to Tenant. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default (as defined below) exists; (ii) as of the date 45 thirty (30) days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (viv) provided the issuer will not accept draw requests by overnight courier, the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in within twenty (20) miles of the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Tenant acknowledges that the only effect of a wrongful draw would be to substitute a cash Security Deposit for L/C Security, causing Tenant no legally recognizable damage. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen five (155) business days Business Days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Lease (Ardelyx, Inc.), Lease (Ardelyx, Inc.)

Security Deposit. 10.1 (a) Concurrently with the execution and delivery of this Lease by ▇▇▇▇▇▇, Tenant shall deposit with Landlord within five a sum equal to three (53) days of the Execution Date month’s rent ($42,204.51) as a security deposit in the amount set forth in Section 2.8 (together with any additional security deposit as described below, the “Security Deposit”). Notwithstanding the foregoing, which if, as of July 1, 2024, there has not occurred a monetary or material non-monetary event of default beyond the period given to cure such default as set forth in paragraph 19(a) hereof provided, Landlord shall return to Tenant $ 14,068 of the Security Deposit within five (5) business days after such date. The Security Deposit shall be held by Landlord as security for the faithful performance and observance by Tenant of all of its obligations under the terms, conditions and covenants and conditions of this Lease to be kept and performed by Tenant during throughout the period commencing on the Execution Date and ending upon the expiration or termination Term of this Lease. If Tenant defaults with respect to any provision ▇▇▇▇▇▇ performs and observes all of the terms, conditions and covenants of this LeaseLease which are required to be performed and observed by it, includingLandlord shall return the Security Deposit, but not limited toor balance thereof then held by Landlord, any provision relating to Tenant within thirty (30) days after the Expiration Date or after ▇▇▇▇▇▇ surrenders possession of the Premises, whichever is later. In the event of a default by Tenant in the payment of Rentrent or the performance or observance of any of the other terms, conditions or covenants of this Lease beyond the period given to cure such default as set forth in paragraph 19(a) hereof, then Landlord may (but shall not be required to) usemay, at its option and without notice, apply or retain all or any part of the Security Deposit for the in payment of any Rent such rent or to cure any other sum in such default; and if Landlord does so, or to compensate Tenant shall, upon request, deposit with Landlord for any other loss or damage the amount so applied so that Landlord will have on hand at all times throughout the Term of this Lease the full amount of the Security Deposit. Landlord shall not be required to hold the Security Deposit as a separate account, but may suffer by reason of Tenantcommingle it with ▇▇▇▇▇▇▇▇’s defaultother funds. If any portion The use, application or retention of the Security Deposit is so used or applied, then Tenant shall, within ten any portion thereof by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by law (10it being intended that Landlord shall not first be required to proceed against the Security Deposit) days following demand therefor, increase and shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled. (b) In the amount event of a sale or any other transfer of the L/C Security or deposit cash with Building, Landlord in an amount sufficient shall have the right to restore transfer the Security Deposit to its required amount, purchaser and Tenant’s failure Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and ▇▇▇▇▇▇ agrees to do so shall be a material breach look solely to such purchaser for the return of this Leasesuch deposit. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenantan assignment of this Lease, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due held by Landlord for all periods prior to the filing of such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold deposit made by the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sumsassignee, and Landlord shall upon request confirm in writing have no further responsibility for the return of such deposit to the issuer of the L/C Security that Landlord’s draw was erroneousassignor. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Office Lease (MBX Biosciences, Inc.), Office Lease (MBX Biosciences, Inc.)

Security Deposit. 10.1 Concurrently with Tenant’s execution of this lease, Tenant shall deposit with Landlord within five the sum of Twenty-Two Thousand Seven Hundred and Forty-Nine and 30/100 Dollars (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”$22,749.30), which Security Deposit sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this LeaseTenant. If Tenant defaults with respect to any provision of this Leaselease, including, including but not limited to, any provision the provisions relating to the payment of Rentbasic rent and common area charges, then Landlord may (but shall not be required to) use, apply apply, or retain all or any part of the Security Deposit this security deposit for the payment of any Rent or any other sum in default, amount which Landlord may spend by reason of Tenant’s default or to compensate Landlord for any other loss or damage that which Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit said deposit is so used or appliedused, then Tenant shall, within ten (10) days following after written demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an the amount sufficient to restore the Security Deposit security deposit to its required original amount, and ; Tenant’s failure to do so shall be a material breach of this Leaselease. The provisions of Landlord shall not be required to keep this Article 10 security deposit separate from its general funds and Tenant shall survive not be entitled to interest on such deposit. If Tenant is not in default at the expiration or earlier termination of this Lease. 10.2 lease, the security deposit or any balance thereof shall be returned to Tenant after Tenant has vacated the Premises. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser termination of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Depositlease, Landlord shall remit transfer said deposit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C SecurityLandlord’s successor in interest, and hold and apply the proceeds in the same manner and Tenant agrees that Landlord shall thereupon be released from liability for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy return of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) deposit or any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Depositaccounting therefor. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Standard Industrial Lease (Southwall Technologies Inc /De/), Standard Industrial Lease (Southwall Technologies Inc /De/)

Security Deposit. 10.1 11.1. Tenant shall deposit with Landlord within on or before the date that is five (5) business days of after the Execution Date a security deposit in the amount sum set forth in Section 2.8 2.6 (the “Security Deposit”), which Security Deposit sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this LeaseTenant. If Tenant defaults Defaults (as defined below) with respect to any provision of this Lease, including, but not limited to, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 11.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If 11.4. So long as no Default exists, Tenant shall fully has not received written notice from Landlord that any failure of Tenant to act or any state of facts exists that (with the passage of time) could ripen into a Default, and faithfully perform every provision of Tenant surrenders the Premises to Landlord in the condition required by this Lease to be performed by itLease, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 11.5. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 11.6. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Defaultwhen Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows.: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the TermTerm and until the date that is six (6) months after the then-current Term Expiration Date, a letter of credit in the form of Exhibit H D issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. Landlord may require the L/C Security to be re-issued by a different issuer at any time during the Term if Landlord reasonably believes that the issuing bank of the L/C Security is or may soon become insolvent; provided, however, Landlord shall return the existing L/C Security to the existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to Landlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: then (i) Landlord shall with reasonable diligence complete any necessary calculations; and , (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires and (iii) in such extended period, Landlord shall not unreasonably refuse to exceed 30 days)consent to an appropriate reduction of the L/C Security. Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 2 contracts

Sources: Lease (Pandion Therapeutics Holdco LLC), Lease (Pandion Therapeutics Holdco LLC)

Security Deposit. 10.1 Concurrently with execution of this Lease, Tenant shall deposit with Landlord within five (5) days the sum of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”)$10,000.00, which Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Leaseterm hereof. If Tenant defaults with respect to any provision of this Lease, including, including but not limited to, any provision to the provisions relating to the payment of Rent, then Landlord may from time to time (but shall not be required to) use, apply or retain all or any part of the Security Deposit this security deposit for the payment of any Rent rent or any other sum in default, or for the payment of any amount which Landlord may spend or become obligated to spend by reason of Tenant’s default, or to compensate Landlord for any other loss or damage that which Landlord may suffer by reason of Tenant’s defaultdefault without any prejudice to any other remedy provided herein, Landlord’s Initials KW Tenant’s Initials MO or provided by law. If any portion of the Security Deposit such deposit is so used or applied, then applied Tenant shall, within ten five (105) days following after written demand therefortherefore, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit security deposit to its required amount, original amount and Tenant’s failure to do so shall be a material breach of default under this Lease. The provisions of Landlord shall not be required to keep this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenantsecurity deposit separate from its general funds, and thereupon Landlord Tenant shall not be discharged from any further liability with respect entitled to interest on such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, security deposit or any balance thereof, thereof shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty three (303) days after the months following expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security DepositTerm. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant termination of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requiresthis Lease, Landlord shall consent to) an amendment transfer the security deposit to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is successor in force, then interest and Landlord will have no further liability to Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Securitywith respect thereto.

Appears in 1 contract

Sources: Business Lease (VCG Holding Corp)

Security Deposit. 10.1 4.1 This Lease does not require any Security Deposit, provided that the Tenant is in good standing with all of the other provisions of this Lease. If the Tenant fails in any of their responsibilities outlined in this Lease, the Landlord can demand a Security Deposit of Three Thousand ($3,000.00) Dollars, which shall be returned to Tenant without interest within ten (l0) days after the expiration of term of this Lease (not with standing this Lease may be sooner terminated), provided, however that Tenant has fully and faithfully carried out all off the terms, covenants and conditions on its part to be performed. If a Security is made, the Landlord shall have the right to apply any part of said Security Deposit to cure any default of Tenant and if Landlord does so, Tenant shall, upon demand, deposit with Landlord the amount so applied so that Landlord shall have the full Security Deposit on hand at all times during the term of this Lease. Tenants failure to make such deposit within five (5) days after demand, Landlord shall at the option of the Execution Date Landlord constitute a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 4.2 In the event of bankruptcy or other debtordebt-creditor proceedings against Tenantagainst, the any Security Deposit shall be deemed to be applied first to the payment of Rent Minimum Guaranteed Rental and other charges due Landlord by Tenant for all periods prior to the filing of such proceedings. 10.3 4.3 In the event Tenant subleases, assigns or otherwise transfers its interest in this Lease, as more fully set forth in Article 17 of this Lease, Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, demand and thereupon Landlord Tenant shall be discharged from any further liability with respect obligated to pay upon such deposit. This provision shall also apply demand, a sum equal to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease the then current Minimum Guaranteed Rental, as additional Security Deposit to be performed held by it, then Landlord for the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to of the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination term of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease Agreement (Oleramma Inc)

Security Deposit. 10.1 Tenant Landlord shall deposit with Landlord within five hold the balance of proceeds remaining after a draw on the Letter of Credit (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (hereinafter referred to as the “Security Deposit”), which Security Deposit shall be held by Landlord ) as security for the faithful Tenant’s performance by Tenant of all its Lease obligations. After a monetary default or non-monetary Event of the terms, covenants and conditions Default of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of under this Lease, includingor upon the end of the Term if there remains any uncured default of which Tenant shall have received notice, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) useapply the Security Deposit, or any part thereof, to Landlord’s damages without prejudice to any other Landlord remedy. Should Landlord apply or retain all or any part portion of the Security Deposit for Deposit, Tenant shall, upon the payment written demand of any Rent Landlord, deliver cash in the amount applied, and ▇▇▇▇▇▇'s failure to do so within twenty (20) days after receipt of such written demand shall constitute an additional Event of Default hereunder without further notice or any other sum in defaultopportunity to cure. Additionally, if Landlord applies all or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or appliedas aforesaid, then Tenant shallshall have the right to deliver a replacement Letter of Credit in the form and amount required hereunder, within ten (10) days following demand thereforand upon receipt of such replacement Letter of Credit, increase Landlord shall return the amount of the L/C unapplied Security or deposit cash with Landlord in an amount sufficient Deposit to restore Tenant. ▇▇▇▇▇▇▇▇ has no obligation to pay interest on the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtormay co-creditor proceedings against Tenant, mingle the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of with Landlord’s funds. Provided that any uncured Event of Default does not then-exist, if Landlord conveys its interest in the Premises the funds deposited hereunder by Tenantunder this Lease, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereofpart not applied previously, shall be returned to Tenant (or, at Landlord’s option, turned over to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be grantee in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then which case Tenant shall provide Landlord, look solely to the grantee for the proper application and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount return of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease Agreement (Intellia Therapeutics, Inc.)

Security Deposit. 10.1 Tenant shall deposit (a) Concurrently with Landlord within five (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision execution of this Lease, including, but not limited to, any provision relating Tenant has delivered to Landlord cash in the amount of Ten Million Dollars ($10,000,000) (the "Security Deposit") which shall be deposited in a segregated interest-bearing account (the "Account") with a financial institution or institutions selected by Lender or Landlord. The Security Deposit shall secure the payment by Tenant of Rentthe Rent and all other charges or payments to be paid hereunder and the performance of the covenants and obligations contained herein. (b) If at any time an Event of Default shall have occurred and be continuing beyond the applicable grace period, then if any, Landlord may (but shall not be required to) useentitled, apply or retain all or at its sole discretion, at any part of time and from time to time, to withdraw the Security Deposit or any portion thereof from the Account and to apply the proceeds in payment of (i) any Rent or other charges for the payment of any Rent or any other sum which Tenant shall be in default, or to compensate (ii) any expense incurred by Landlord for in curing any default of Tenant, (iii) any other loss sums due to Landlord in connection with any default or damage that the curing thereof, including, without limitation, any damages incurred by Landlord may suffer by reason of Tenant’s such default, including maintenance expenses and management fees and/or (iv) the payment of leasing commissions and tenant improvements for any substitute tenant. If any portion of the Security Deposit is so used used, retained or appliedapplied by Landlord for any purpose set forth above, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from demand therefor is made by Landlord, deliver (and, if provide to Landlord cash which complies with the issuer requires, requirements of this Paragraph 37 so that the Security Deposit is in the original principal amount thereof. Landlord shall consent todeliver to Tenant copies of all statements regarding the account(s) an amendment in which the Security Deposit is held promptly after receipt thereof by Landlord. (c) So long as no Event of Default exists, at any time following the later to occur of payment in full of the L/C Initial Loan or the expiration of the tenth (10th) Lease Year, the balance of the Security naming Landlord’s grantee as substitute beneficiary. If Deposit shall be returned to Tenant upon the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment earlier to the L/C Security.occur of:

Appears in 1 contract

Sources: Lease Agreement (Corporate Property Associates 14 Inc)

Security Deposit. 10.1 Tenant shall deposit with Landlord within five (5) days upon the execution of this Lease, the Execution Date a security deposit in the amount sum set forth in herein under Section 2.8 1.01(j) (the “Security Deposit”), which Security Deposit shall be held by Landlord ) as security for the faithful performance and observance by Tenant of all of the terms, covenants provisions, and conditions of this Lease Lease. In the event Tenant fails to be kept and performed by Tenant during perform or observe any of the period commencing on the Execution Date and ending upon the expiration or termination provisions of this Lease. If Tenant defaults with respect to any provision Lease as required herein, then, at the option of this LeaseLandlord, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure obligated to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also so) apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall portion thereof as may be returned to Tenant (or, at Landlord’s optionnecessary, to remedy such default or to repair damages to the last assignee of Premises, the Building, and/or the Land caused by Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse pay Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from written demand for such payment by Landlord, deliver all monies necessary to restore the Security Deposit up to the original amount. The Security Deposit shall be returned to Tenant within forty-five (and45) days after the expiration of this Lease, if provided that Tenant has fully performed under this Lease. The Security Deposit will not, at any time, be considered rent except at the issuer requiresoption of Landlord. The Security Deposit may be commingled with other funds of Landlord and Landlord shall not be required to pay Tenant any interest on such Security Deposit. If Landlord sells or otherwise conveys the Premises, the Building, and/or the Land or any portion thereof, Landlord shall consent to) an amendment will deliver the Security Deposit or the unapplied portion thereof to the L/C new owner or transferee. ▇▇▇▇▇▇ agrees that if ▇▇▇▇▇▇▇▇ turns over the Security naming Landlord’s grantee as substitute beneficiary. If Deposit or the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment unapplied portion thereof to the L/C Securitynew owner or transferee, Tenant will look to the new owner or transferee only and not to Landlord for return of the Security Deposit upon the expiration or termination of the Lease.

Appears in 1 contract

Sources: Lease Agreement (Standard Dental Labs Inc.)

Security Deposit. 10.1 Tenant On the date of this Sublease being executed, Subtenant shall deposit with Landlord within Tenant seventeen thousand two hundred fifty-five dollars and fifty-four cents (5$17,255.54) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord as security for the full and faithful performance by Tenant of all of the terms, covenants and conditions every provision of this Lease Sublease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this LeaseSubtenant. If Tenant Subtenant defaults with respect to any provision of this LeaseSublease, including, including but not limited to, any provision the provisions relating to the payment of Rentrent, then Landlord Tenant may (but shall not be required to) use, apply or retain all or of any part of the Security Deposit said security deposit for the payment of any Rent or rent and any other sum in default, or for the payment of any other amount which Tenant may spend or become obligated to spend by reason of Subtenant’s default or to compensate Landlord Tenant for any other loss or damage that Landlord which Tenant may suffer by reason of TenantSubtenant’s default. If any portion of the Security Deposit said security deposit is so used or applied, then Tenant Subtenant shall, within ten five (105) days following after written demand therefortherefore, increase the amount of the L/C Security or deposit cash with Landlord Tenant in an amount sufficient to restore the Security Deposit security deposit to its required original amount, and TenantSubtenant’s failure to do so shall be a material breach of this LeaseSublease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first Except to the payment of Rent and other charges due Landlord for all periods prior extent required by law, Tenant shall not be required to the filing of such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenantkeep said security deposit separate from its general funds, and thereupon Landlord Subtenant shall not be discharged from entitled to interest on any further liability with respect to such security deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant Subtenant shall fully and faithfully perform every provision of this Lease Sublease to be performed by it, then the Security Deposit, said security deposit or any balance thereof, thereof shall be returned to Tenant Subtenant (or, at LandlordTenant’s option, to the last assignee of TenantSubtenant’s interest hereunder) within thirty sixty (3060) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may the term and Subtenant’s vacation of the Premises. Nothing herein shall be in construed to limit the form amount of cash, a letter of credit damages recoverable by Tenant or any other security instrument acceptable remedy to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extensionsecurity deposit. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Sublease Agreement (Lifevantage Corp)

Security Deposit. 10.1 39.1 Upon the Commencement Date, Tenant shall deposit with Landlord within five the sum of Fifty-Nine Thousand Fifteen 00/100 60 Dollars (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”$59,015.00), which Security Deposit shall be held by Landlord * as security for the faithful performance and observance by Tenant of all of the terms, covenants provisions and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Said sum shall be deposited in an interest bearing account, and the interest shall be paid annually to Tenant, provided that Tenant is not in material default hereunder beyond any applicable notice and grace periods. It is agreed that in the event Tenant defaults with beyond applicable grace periods in respect to of any provision of the terms, provisions and conditions of this Lease, including, but not limited to, any provision relating to the payment of Rentfixed annual rent and additional rent, then Landlord may (but shall not be required to) use, apply or retain all the whole or any part of the Security Deposit security so deposited to the extent required for the payment of any Rent rent and additional rent or any other sum as to which Tenant is in default, default or to compensate Landlord for any other loss or damage that sum which Landlord may suffer expend or may be required to expend by reason of Tenant’s default. If 's default in respect of any portion of the Security Deposit is so used or appliedterms, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, covenants and Tenant’s failure to do so shall be a material breach conditions of this Lease, including but not limited to, any damages or deficiency in the reletting of the demised premises, whether such damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If that Tenant shall fully and faithfully perform every provision comply with all of the terms, provisions, covenants and conditions of this Lease to be performed by itLease, then the Security Deposit, or any balance thereof, security shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease Agreement (Interliant Inc)

Security Deposit. 10.1 Tenant shall Tena▇▇ ▇▇▇ees to deposit with Land▇▇▇▇ ▇▇▇ultaneously with the execution of this Lease by Landlord within five (5) days of the Execution Date a security deposit (the "Security Deposit") securing Tena▇▇'▇ ▇aithful performance of all the terms, covenants and conditions hereunder in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all Item 6 of the termsFundamental Lease Provisions. In the event of any default ("Default") described in Section 11.1, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) from time to time, without any obligation to do so, use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in defaultDefault, or for the payment of any amount which Landlord may spend or become obligated to spend by reason of Tenant's Default, or to compensate Landlord for any other loss or damage that which Landlord may suffer by reason of Tenant’s default's Default. If any portion of the Security Deposit is so used or applied, then applied Tenant shall, within ten (10) five days following after written demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required original amount, and ; Tenant’s 's failure to do so shall be a material breach of Default under this Lease. The provisions of this Article 10 Landlord shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, not be required to keep the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenantseparate from its general funds, and thereupon Landlord Tenant shall not be discharged from any further liability with respect entitled to interest on such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, Deposit or any remaining balance thereof, shall be returned to Tenant (or, at Landlord’s 's option, to the last assignee of Tenant’s interest Tena▇▇'▇ ▇nterest hereunder) within thirty (30) 10 days after the following expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant termination of the wrongfully drawn sums, and Landlord shall upon request confirm Land▇▇▇▇'▇ ▇nterest in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requiresthis Lease, Landlord shall consent to) an amendment transfer the Security Deposit to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is 's successor in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Securityinterest.

Appears in 1 contract

Sources: Consent to Sublease (Universal Electronics Inc)

Security Deposit. 10.1 Prior to occupancy of the premises, Tenant shall deposit with Landlord within five (5) days Owner/Agent the SECURITY DEPOSIT, the primary function of which is to secure the performance of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord as security Rental Contract for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all premises or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amountthereof, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant deposit shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Depositconstitute pre-paid rent. In the event of a wrongful drawsale of the premises and/or change of management thereof, ▇▇▇▇▇▇ hereby agrees custody of the parties security deposit is transferred to the succeeding Owner/Agent. Upon such transfer, ▇▇▇▇▇▇ Management, Inc. shall cooperate be released from any and all liability for the security deposit. Agent may, but need not, apply all or portions of the Security Deposit to allow satisfy any defaults by Tenant. After expiration of this Rental Contract and any extension thereof, if Tenant has completely performed the Rental Contract obligations, then the unused portion of the security deposit less any move-out charges (if any) and utility bills, shall be refunded within sixty (60) days from the termination of this Lease, as defined in paragraph 19, “TERMINATION”. Tenant acknowledges and consents to post replacement Lthe fact that the security deposit is being held in an interest bearing account and that all interest income from such accounts shall be retained by ▇▇▇▇▇▇ Management, Inc. for purposes of offsetting expenses associated with maintenance or management of these accounts. Tenant will be responsible for providing Owner/C Security simultaneously Agent with the address to which the security deposit and any accounting for it will be sent, in writing. Tenant understands and agrees that the security deposit is made jointly as one deposit, even where there is more than one Tenant, and the entire amount shall be maintained by Owner/Agent until the Term, including any extensions, has ended, and the property has been returned to the Owner/Agent in the condition required by this Rental Contract. No partial return to Tenant of any portion of the wrongfully drawn sums, and Landlord shall upon request confirm in writing security deposit will be made to the issuer of the L/C Security that Landlord’s draw was erroneousany departing Tenant. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Rental Contract

Security Deposit. 10.1 As of the Effective Date and thereafter, the Tenant shall deposit with tender to the Landlord within five (5) days of and the Execution Date a security deposit in the amount set forth in Section 2.8 (Landlord shall hold the “Security Deposit”), which ” of Twenty-Two Thousand Six Hundred Thirty-Four and 42/100 Dollars ($22,634.42) and Landlord and Tenant agree that Landlord shall continue to hold this Security Deposit shall be held by Landlord as security for the faithful payment by Tenant of any and all present and future debts and liabilities of Tenant to Landlord under this Lease and for the performance by Tenant of all of its obligations hereunder (collectively, the terms“Debts, covenants Liabilities and conditions of this Lease to Obligations”), as may be kept and performed held, used and/or applied by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this LeaseLandlord hereunder. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of to keep the Security Deposit for separate from its general funds. In the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion event of the Security Deposit is so used or appliedLandlord disposing of its interest in this Lease, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore shall credit the Security Deposit to its required amount, successor and thereupon shall have no liability to the Tenant to repay the Security Deposit to the Tenant so long as such successor agrees to recognize such Security Deposit and Tenant’s failure right to do so shall be a material breach of collect the same from Landlord to the extent provided in this Lease. The provisions Subject to the foregoing, Landlord shall repay the Security Deposit to the Tenant without interest on the later of this Article 10 shall survive (i) at the expiration end of the Term or earlier sooner termination of this Lease. 10.2 In ; (ii) the event Tenant’s tender of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first Lease Premises to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises condition required by the funds deposited hereunder by Tenant, terms and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination conditions of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend following the expiry date Tenant’s cure of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) any breach or default of this Lease, including the payment in handling Landlord’s acceptance full of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place all Debts, Liabilities and Obligations of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously heldTenant. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease Agreement (Legalzoom Com Inc)

Security Deposit. 10.1 Tenant shall deposit Concurrently with ▇▇▇▇▇▇’s execution of this Lease, ▇▇▇▇▇▇ has deposited with Landlord within five (5) days of a sum equivalent to the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit first two months base rent. Said sum shall be held by Landlord ▇▇▇▇▇▇▇▇ as security for the faithful performance by Tenant of all of the terms, covenants covenants, and conditions of this Lease to be kept and performed by Tenant ▇▇▇▇▇▇ during the period commencing on the Execution Date and ending upon the expiration or termination of this Leaseterm hereof. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision to the provisions relating to the payment of Rentrent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit this security deposit for the payment of any Rent rent or any other sum in default, or for the payment of any amount which Landlord may spend or become obligated to spend by reason of Tenant’s default, or to compensate Landlord for any other loss or damage that which Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit said deposit is so used or applied, then applied Tenant shall, within ten five (105) days following after written demand therefortherefore, increase the amount of the L/C Security or deposit cash with Landlord landlord in an amount sufficient to restore the Security Deposit security deposit to its required amount, original amount and Tenant’s failure to do so shall be a material breach of default under this Lease. The provisions of Landlord shall not be required to keep this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenantsecurity deposit separate from its general funds, and thereupon Landlord Tenant shall not be discharged from any further liability with respect entitled to interest on such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, security deposit or any balance thereof, thereof shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant▇▇▇▇▇▇’s interest hereunder) within thirty ten (3010) days after the following expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Depositterm. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant termination of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord▇▇▇▇▇▇▇▇’s draw was erroneous. (e) If Landlord transfers its interest in the Premisesthis Lease, then Tenant ▇▇▇▇▇▇▇▇ shall at Tenanttransfer said deposit to ▇▇▇▇▇▇▇▇’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is successor in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Securityinterest.

Appears in 1 contract

Sources: Shopping Center Lease (La Rosa Holdings Corp.)

Security Deposit. 10.1 Upon execution of this Lease, Tenant shall deposit with Landlord the amount of the Security Deposit specified in Section 1 of this Lease. Provided that Tenant has paid all amounts due and has otherwise performed all obligations hereunder, the Security Deposit shall be returned to Tenant without interest within five sixty (560) days of the Execution Date a security deposit in expiration of the amount set forth in Section 2.8 (Term, further provided that Landlord may deduct from the “Security Deposit”), which Security Deposit shall be held by Landlord as security for the faithful performance prior to returning it any amounts owed by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this LeaseLandlord. If Tenant defaults with respect to under any provision of this Lease, includingLandlord may, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required obligated to) use, apply or retain all or any part of the Security Deposit for to cure the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of In the event Landlord elects to apply the Security Deposit is so used or appliedas provided for above, then Tenant shall, within five (5) business days after Landlord’s demand, restore the Security Deposit to the original amount. Furthermore, if Tenant defaults under this Lease more than two (2) times during any twelve (12) month period, irrespective of whether such default is cured, then, without limiting Landlord’s other rights and remedies, Landlord may, in Landlord’s sole discretion, modify the amount of the Security Deposit. Within ten (10) days following demand thereforafter notice of such modification, increase Tenant shall submit to Landlord the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, additional sums and Tenant’s failure to do so shall be a material breach constitute an Event of Default without further notice or right to cure, and Landlord shall have the right to exercise any remedy provided for in this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against TenantLandlord may, at its discretion, commingle the Security Deposit shall be deemed to be applied first to with its other funds. Upon any sale or other conveyance of the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by TenantBuilding, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then transfer the Security Deposit, Deposit (or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security DepositDeposit remaining) to a successor owner, with an initial term of at least one year. If, at and Tenant agrees to look solely to the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place successor owner for repayment of the entire Security Depositsame, Landlord shall remit to Tenant any cash if it was transferred. The Security Deposit Landlord previously held. (c) shall not operate as a limitation on any recovery to which Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Depositentitled. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease Agreement (JetPay Corp)

Security Deposit. 10.1 Section 31.01 Simultaneously with the execution and delivery of this Lease by Tenant, Tenant has deposited with Landlord a letter of credit (in the form required by Section 31.06 hereof) in the amount of $127,650.00, as security for the full and faithful performance by Tenant of each and every term, covenant, condition and agreement of this Lease or any renewals or extensions thereof on Tenant’s part to be performed; it being expressly understood and agreed that Tenant shall pay rent for the last calendar month of the term hereof or of any renewals or extensions thereof promptly on the first day of such month. If Tenant shall fail to perform or observe, or shall breach or violate, any of the terms, covenants, conditions or agreements of this Lease, including but not limited to the payment of Fixed Rent or additional rent or any other charges, Landlord may use, apply or retain the whole or any part of such deposit to the extent required for the payment of any such Fixed Rent or additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may expend or may be required to expend by reason of Tenant’s non-performance, non-observance, breach or violation of any of the terms, covenants, conditions or agreements of this Lease, including but not limited to, any damages or deficiency in the re-letting of the Premises, whether such damages or deficiency accrues before or after summary proceedings or other re-entry by Landlord. Section 31.02 Landlord shall not be required so to use, apply or retain the whole or any part of said deposit, but if the whole or any part thereof is so used, applied or retained, Tenant shall upon demand immediately deposit with Landlord within five (5) days a sum equal to the amount so used, applied or retained. If Tenant shall fully and faithfully comply with all the terms, covenants, conditions and agreements of this Lease, the deposit or any balance thereof remaining shall be returned to Tenant after the date fixed as the end of this Lease or of any renewal or extension thereof and after delivery of entire possession of the Execution Date Premises to Landlord. Landlord shall not be required to pay Tenant any interest on said security deposit. Section 31.03 In the event of a sale, transfer or lease of the parcel of Land or a sale, transfer or lease of Land and/or Building or a sale or transfer of any such lease, Landlord may transfer or assign the security so deposited or any balance thereof remaining to the vendee, transferee or lessee, as the case may be, and Landlord shall thereupon be released from all liability for the return of such security, and Tenant, in each such instance, shall look solely to each vendee, transferee or lessee, as the case may be, for the return of such security. It is further agreed that the provisions hereof shall apply to every such sale, transfer or lease and to every such transfer or assignment made of such security. Section 31.04 Tenant shall not assign or encumber or attempt to assign or encumber any security deposited hereunder and neither Landlord nor its successors or assigns shall be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance. Section 31.05 In no event shall the security deposited hereunder be construed as liquidated damages or in any way limit Landlord’s right to recover damages or any sum due Landlord hereunder or permitted by law. If this Lease shall be assigned, the security deposit shall be deemed assigned to the assignee, and Landlord shall have no liability to return the same to the assignor. Section 31.06 The letter of credit required by this Article 31 shall be an irrevocable commercial letter of credit in the aggregate amount set forth from time to time required in Section 2.8 31.01, which letter of credit shall be in the form attached hereto as Exhibit E and issued by a commercial bank acceptable to Landlord, payable upon the presentation by Landlord to such bank of one or more sight drafts in form acceptable to Landlord, without presentation of any other documents, statements or authorizations, which letter of credit shall provide (i) for the continuance of such credit for a period of at least one year from the date of its issuance, (ii) for the automatic extension of such letter of credit for additional periods of one year from the initial and each future expiration date thereof (the “Security Deposit”)last such extension to provide for the continuance of such letter of credit for at least three months beyond the end of the term of this Lease) unless such bank gives Landlord notice by certified mail, return receipt requested, postage prepaid, of its intention not to renew such letter of credit (which Security Deposit notice shall be addressed to Landlord as provided in this Lease) not less than 30 days prior to the initial or any future expiration date of such letter of credit and (iii) that in the event such notice is given by such bank, Landlord shall have the right to draw on such bank at sight for the balance remaining in such letter of credit and hold and apply the proceeds thereof in accordance with the provisions of this Article 31. Each letter of credit to be deposited and maintained with Landlord {or the proceeds thereof) shall be held by Landlord as security for the full and faithful performance and observance by Tenant of all of the termseach and every term, covenants covenant, condition and conditions agreement of this Lease as provided in this Article 31, and in the event that (a) Tenant is in default (x) in the performance or observance of any of the covenants, agreements, terms, provisions or conditions on its part to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of observed under this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to Lease (except the payment of Fixed Rent, then Landlord may additional rent or other charges due and payable under this Lease) beyond the applicable cure period or (but shall not be required toy) use, apply or retain all or any part of the Security Deposit for in the payment of any Rent Fixed Rent, additional rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due and payable under this Lease after the expiration of any applicable grace period, or (b) Landlord for all periods prior to the filing of such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s transfers its right, title and interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of under this Lease to be performed by ita third party and such letter of credit is not transferable to such third party, then the Security Deposit, or any balance thereof, without cost to Landlord (it being agreed that Tenant shall be returned responsible for all costs to Tenant transfer such letter of credit), five (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (305) days after Landlord’s request and to whom Landlord designates, or (c) notice is given by the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a bank issuing such letter of credit or that it does not intend to renew the same, then, in any other security instrument acceptable to such event, Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a draw on such letter of credit (and the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a proceeds of such letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlordshall then be held and applied as security (and be replenished, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (iiif necessary) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office provided in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security DepositArticle 31. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease (Hudson Holding Corp)

Security Deposit. 10.1 Tenant shall (a) Tenant, concurrently with the execution of this Lease, is obligated to deposit with Landlord within five Landlord, the sum of Forty Five Thousand Dollars (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”$45,000.00), which Security Deposit sum shall be retained by Landlord without interest and not in trust or in a separate account as security for the payment by Tenant of the rent herein agreed to be paid and for the faithful performance of the covenants contained in this Lease. If at any time Tenant shall be in default under any of the provisions of this Lease, Landlord shall be entitled, at its sole discretion to apply such security deposit (i) to payment of (A) any rent for the payment of which Tenant shall be in default as aforesaid, (B) any expense incurred by Landlord in curing any such default, and/or (C) any other sums due to Landlord in connection with such default or the curing thereof, including, without limitation, any damages incurred by Landlord by reason of such default; or (ii) to retain the same in liquidation of all or part of the damages suffered by Landlord by reason of such default. Any portion of such deposit which shall not be utilized for any such purpose shall be returned to Tenant following the expiration of this Lease and surrender of the entire Premises to Landlord. (b) In the event of a sale or transfer of Landlord's estate or interest in the Property, Landlord shall have the right to transfer the security deposit to the grantee or transferee, and Landlord shall be considered released by Tenant from all liability for the return of the security deposit, and Tenant shall look solely to the grantee or transferee for the return of the security deposit. It is agreed this shall apply to every transfer or assignment made of the security deposit to a new grantee or transferee, provided that Tenant receives from the new grantee or transferee a written acknowledgment of receipt of the transfer or assignment. (c) In the event of any assignment of this Lease by Tenant to which Landlord consents, the security deposit shall be deemed to be held by Landlord as security for a deposit made by the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, Assignee and Landlord shall upon request confirm in writing have no further liability for the return of the security deposit to the issuer of the L/C Security that Landlord’s draw was erroneousAssignor. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease Agreement (Animas Corp)

Security Deposit. 10.1 (a) Upon execution of this Contract by Tenant, Tenant shall deposit with deliver to Landlord within five (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which ) in the form of a cash deposit (cash or check) in the amount of as set forth in Article I. (b) The Landlord shall not be obligated to place such amounts in an interest bearing account. (c) The Security Deposit shall be held by Landlord as security for the payment by Tenant of the Rental or other amounts agreed to be paid pursuant to the Contract, as well as for the full and faithful performance by Tenant of all of the terms, covenants and conditions of other provisions contained in this Lease Contract. (d) Landlord shall be entitled at its sole discretion, to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the in payment of of: (a) any Rent Rental then due, (b) any expense incurred by Landlord in curing any default and (c) any damages, costs or any other sum in default, or expenses (including reasonable attorneys' fees) incurred by Landlord due to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. . (e) If Landlord draws uses or applies the Security Deposit, or any portion of thereof for the Security Deposit is so used or appliedpurposes permitted under this Section, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient shall be obligated to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach original amount within ten (10) days from receipt of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this LeaseLandlord's written demand. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the (f) Each Security Deposit shall be deemed to be applied first to for the payment benefit of Rent Landlord and other charges due Landlord for all periods prior to the filing of such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, its successors and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereofassigns, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as followsexpressly assignable. (ag) If Tenant elects to deliver L/C SecurityWithin 180 days following the latter of expiration of the Term or vacation of the Premises, then Tenant Landlord shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount return any unused portion of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit Deposit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, provided no Event of Default then exist and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts fully performed all material obligations under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security DepositContract. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Concession Agreement

Security Deposit. 10.1 Tenant shall deposit with Landlord within five upon execution hereof, the sum of Forty Thousand and 00/100 Dollars (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”$40,000.00), which Security Deposit shall be held by Landlord (hereinafter referred to as "Collateral"), as security for the prompt, full and faithful performance by Tenant of all obligations of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. hereunder. (a) If Tenant defaults with respect fails to perform any provision of this Leaseits material obligations hereunder, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all the whole or any part of the Security Deposit Collateral for the payment of (i) any Rent sum or other sums of money which Tenant may not have paid when due, (ii) any other sum expended which Landlord or Tenant's behalf in defaultaccordance with the provisions of this Lease, or to compensate Landlord for (iii) any other loss or damage that sum which Landlord may suffer expend or be required to expend by reason of Tenant’s 's default, including, without limitation, any damage or deficiency in or from the reletting of the Premises as provided in Paragraph 22. The use, application or retention of the Collateral, or any portion thereof, by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by law (it being intended that Landlord shall not first be required to proceed against the Collateral) and shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled. If any portion of the Security Deposit Collateral is so used used, applied or appliedretained by Landlord for the purposes set forth above, then Tenant shallagrees, within ten (10) days following after the written demand therefortherefor is made by Landlord, increase the amount of the L/C Security or to deposit cash with the Landlord in an amount sufficient to restore the Security Deposit Collateral to its required original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 (b) In no event shall the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be Collateral by deemed to be applied first to the an advance of payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedingsrent. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon (c) Landlord shall be discharged from have no obligation to pay any further liability with respect to such deposit. This provision shall also apply to any subsequent transfersinterest on the Collateral. 10.4 (d) If the Tenant shall fully and faithfully perform every provision comply with all of the provisions of this Lease to be performed by itLease, then the Security DepositCollateral, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s without interest hereunder) within thirty (30) days after the expiration of the Term or earlier termination upon any later date after which Tenant has vacated the premises. In the absence of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable evidence satisfactory to Landlord of any permitted assignment of the right to receive the Collateral, or of the remaining balance thereof, Landlord may return the same to the original Tenant, regardless of one or more assignments of Tenant's interest in its sole discretionthis Lease or the Collateral. Tenant may at any timeIn such event, except during Defaultupon the return of the Collateral, deliver a letter or the remaining balance thereof to the original Tenant, Landlord shall be completely relieved of credit (liability under this Paragraph 27 or otherwise with respect to the “L/C Security”) as the entire Security Deposit, as followsCollateral. (ae) If Tenant elects acknowledges that Landlord has the right to deliver L/C Securitytransfer its interest in the Land and Building and in this Lease and Tenant agrees that in the event of any such transfer, Landlord shall have the right to transfer the Collateral to the transferee. Upon the delivery by Landlord to Tenant of such transferee's written acknowledgement of its receipt of such Collateral, Landlord shall thereby be released by Tenant from all liability or obligation for the return of such Collateral and Tenant agrees to look solely to such transferee for the return of the Collateral. (f) The Collateral shall not be mortgaged, assigned or encumbered in any manner whatsoever by Tenant. (g) Provided that as of the date that Tenant has paid to Landlord its twenty-fourth (24th) installment of monthly Base Rent (i) Tenant is not then Tenant shall provide Landlord, in default of any of the terms and maintain conditions of this Lease and this Lease is then in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculationseffect; and (ii) Tenant has, through such date, timely paid all Base Rent and Additional Rent when due, then Landlord shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place return $20,000.00 of the entire Security Deposit, Landlord shall remit Collateral to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event form of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneouscredit against Base Rent next due. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Office Building Lease (Asset Acceptance Capital Corp)

Security Deposit. 10.1 (a) Tenant shall deposit has deposited with Landlord within five the sum of **Forty-four Thousand Eight Hundred Ninety-six dollars and 00/100** (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 $44,896.00)** (the "Security Deposit”), which Security Deposit shall be held by Landlord ") as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination provisions of this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the including payment of Rentthe Rent or the failure to exercise any one of the options to extend as provided in Section 6 hereof. Landlord may, then Landlord may (but shall not be required to) after expiration of any applicable notice and cure period, use, apply apply, draw upon or retain all or any part of the Security Deposit to the extent necessary for the payment of any Rent or any other sum in defaultRent, or to compensate Landlord for any other loss loss, cost or damage that which Landlord may suffer by reason of Tenant’s 's default. If any portion of the Security Deposit is so used or used, applied, then or drawn upon, Tenant shall, within ten (10) days following demand thereforafter notice thereof, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required original amount, and . Tenant’s 's failure to do so after notice from Landlord to Tenant, shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, Deposit or any balance thereof, thereof shall be returned to Tenant (or, at Landlord’s option, or to the last assignee transferee of Tenant’s 's interest hereunder) within thirty (30) 30 days after the expiration of the Term (or earlier sooner termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount upon Tenant's vacation of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied Premises in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. If the Building is sold, the Security Deposit shall be transferred to the new owner, and thereupon Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously be discharged from further liability with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneousrespect thereto. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Gross Lease (Startech Environmental Corp)

Security Deposit. 10.1 10.1. Tenant shall deposit with Landlord within five (5) days of on or before the Execution Date a security deposit in the amount sum set forth in Section 2.8 2.6 (the “Security Deposit”), which Security Deposit sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this LeaseTenant. If Tenant defaults Defaults (as defined below) with respect to any provision of this Lease, including, but not limited to, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 10.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 10.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 10.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty sixty (3060) days after the expiration or earlier termination of this Lease. 10.5 10.5. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 10.6. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Defaultwhen Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows.: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the TermTerm and until the date that is ninety (90) days after the then-current Term Expiration Date, a letter of credit in the form of Exhibit H E issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. Landlord may require the L/C Security to be re-issued by a different issuer at any time during the Term if Landlord reasonably believes that the issuing bank of the L/C Security is or may soon become insolvent; provided, however, Landlord shall return the existing L/C Security to the existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to Landlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” means the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: then (i) Landlord shall with reasonable diligence complete any necessary calculations; and , (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires and (iii) in such extended period, Landlord shall not unreasonably refuse to exceed 30 days)consent to an appropriate reduction of the L/C Security. Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease (PMV Pharmaceuticals, Inc.)

Security Deposit. 10.1 Tenant shall deposit has deposited with Landlord within five the sum of fifteen thousand (5$15,000) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”) as security for the full and faithful performance of each of the obligations and covenants imposed upon Tenant under this Lease. Notwithstanding the foregoing, if Tenant shall have fully and faithfully performed all of its obligations under this Lease as of the last day of each of the first four (4) lease years hereunder, Landlord shall credit against Tenant’s first payment of Base Rent due in the next succeeding lease year (i.e. the first payment in the second, third, fourth and fifth lease years), which an amount equal to five thousand dollars ($5,000) and the Security Deposit shall be held reduced by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Leaseany amount so credited. If Tenant defaults with respect to in the payment of Base Rent, Additional Rent or in the performance of any provision of the other covenants or obligations imposed upon Tenant under this Lease, includingthen Landlord, but not limited toat Landlord’s election, any provision relating without notice and without terminating this Lease, may apply the funds so deposited as security to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent due hereunder or to the remedy of any other sum in defaultdefault hereunder, or to compensate Landlord for any other loss or damage that Landlord may suffer terminate this Lease by reason of Tenantany such default and retain such funds as liquidated damages for any such default and not by way of penalty. Any action taken by Landlord pursuant to this Section 29 shall not be construed to be a waiver of any other rights or remedies of Landlord, or of any of Landlord’s rights to enforce any such right or remedy, in case of any subsequent default. If the security deposit or any portion of the Security Deposit part thereof is so used used, applied or appliedretained in curing any default, then Tenant shall, within ten (10) days following demand therefor10 business days, increase the amount of the L/C Security or deposit cash with Landlord in as additional security an amount sufficient in each case equal to restore the Security Deposit to its required amountamounts so used, applied or retained, and Tenant’s failure if Tenant shall fail to do so so, such failure shall be constitute a material breach of default under this Lease. The provisions of this Article 10 shall survive , affording Landlord the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the same rights and remedies as a default in payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedingsBase Rent. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease Agreement (Abakan, Inc)

Security Deposit. 10.1 Simultaneously with the execution and delivery of this Lease, Tenant shall deposit with deliver to Landlord within five an irrevocable standby letter of credit (5the “Letter of Credit”) days of the Execution Date a security deposit in the amount set forth of the Security Deposit Amount issued in Section 2.8 the form attached hereto as Exhibit L/C by Silicon Valley Bank or any other bank or trust company reasonably satisfactory to Landlord (the “Bank”). Landlord shall hold the Letter of Credit as security (the “Security Deposit”), which Security Deposit shall be held by Landlord as security ) for the faithful performance by Tenant of all obligations on the part of the terms, covenants and conditions of this Lease Tenant to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of under this Lease. If The Security Deposit may not be deemed by Tenant defaults with respect to constitute rent for any month. Landlord shall have the right, from time to time without prejudice to any provision other remedy Landlord may have on account thereof, to draw upon the Letter of Credit if a Default has occurred and is continuing (or as otherwise permitted pursuant to the last sentence of this Leaseparagraph) and apply such drawn funds to Landlord’s damages hereunder, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then which event Tenant shall, within ten (10) days of request by Landlord, restore the balance of the Letter of Credit to the Security Deposit Amount, by issuance of a replacement Letter of Credit. Tenant shall not have the right to call upon Landlord to apply all or any part of the Security Deposit to cure any defaults in respect of any of the terms, provisions, or conditions of this Lease where such default continues beyond the expiration of any applicable notice or cure period, but such use shall be solely in the discretion of Landlord. Tenant shall maintain the Letter of Credit, or a substitute Letter of Credit from the Bank (or another bank approved by Landlord and conforming to the requirements of this Section 17.15), in accordance with the terms hereof, in full force and effect at all times through the Term and for sixty (60) days thereafter. Notwithstanding anything to the contrary herein, Landlord shall have no right to use or apply any portion of the Letter of Credit unless a Default of Tenant has occurred and is continuing, or would have occurred with the giving of notice and passage of applicable cure periods, but transmittal of a default notice is stayed or barred by applicable bankruptcy or other similar law, or unless Landlord is entitled to do so under the following demand thereforparagraph. If the Letter of Credit will expire before the date that is sixty (60) days following the Expiration Date or earlier expiration of the Term, increase Tenant shall replace the Letter of Credit deposited with Landlord by providing Landlord with a substitute Letter of Credit at least thirty (30) days prior (each such 30th day prior being referred to herein as a “Change Date”) to the expiration date of the then effective Letter of Credit in the Security Deposit Amount. Any failure by Tenant to provide such a substitute Letter of Credit before any Change Date shall entitle Landlord to draw on all funds available under the Letter of Credit then being held by Landlord and hold the same as the Security Deposit. In such event, Landlord may require that Tenant replace such funds with a substitute Letter of Credit in the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit Amount by notice to its required amount, and Tenant. Tenant’s failure to do so shall be provide a material breach substitute Letter of this Lease. The provisions Credit within ten (10) days after the giving of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit such Landlord’s notice shall be deemed a Default under this Lease for which no further notice or grace period shall apply. Any Letter of Credit shall be freely transferable without cost to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of Landlord, any such proceedings. 10.3 Landlord may deliver to successor or any purchaser lender holding a collateral assignment of Landlord’s interest in the Premises Lease. If the funds deposited hereunder Bank that issued the Letter of Credit then held by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after is placed into receivership or conservatorship by the then-current Term Expiration Date Federal Deposit Insurance Corporation or any successor or similar entity, (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and meet the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.Minimum Rating

Appears in 1 contract

Sources: Lease Agreement (LogMeIn, Inc.)

Security Deposit. 10.1 ‌ The Tenant shall deposit provide to the Landlord concurrently with Landlord within the execution of this Lease the sum of five thousand dollars (5$5,000) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (plus applicable Sales Taxes) (the “Security Deposit”), which Security Deposit shall ) as a security deposit to be held by the Landlord throughout the Term (and any extensions or renewals thereof), without interest, as security for the faithful observance and performance by of the Tenant’s covenants and obligations hereunder. If the Tenant defaults in the performance of all any of the terms, covenants covenants, conditions and conditions provisions of this Lease as and when the same are due to be kept and performed by Tenant during the period commencing on Tenant, then the Execution Date Landlord, at its option and ending upon the expiration or termination of this Lease. If Tenant defaults with respect in addition to any provision of its other rights and remedies under this Lease, includingat law or in equity, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, appropriate and apply or retain all or any part of the Security Deposit for the payment on account of any Rent losses or any other sum in default, damages sustained by the Landlord as a result of such default or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s defaultbreach. If any portion of the Security Deposit is so used or applied, applied then the Tenant shallwill, within ten five (105) days following after demand thereforfrom the Landlord, increase pay to the Landlord a sufficient amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to the amount held by the Landlord prior to such application. Provided the Tenant has vacated the Premises in the manner provided for in this Lease and has otherwise observed and performed its required amountobligations hereunder and the Landlord, and Tenant’s failure in its sole discretion, considers that the Tenant has delivered up the Premises in acceptable condition, the Landlord will refund to do so shall be a material breach the Tenant any remaining portion of this Leasethe Security Deposit, without interest, within sixty (60) days following the end of the Term or any extension or renewal thereof. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, Landlord may deliver the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of the Landlord’s interest in the Premises or the funds deposited hereunder by TenantPark and if the purchaser agrees to assume the Landlord’s obligations hereunder, and thereupon the Landlord shall will thereafter be discharged from any relieved of all further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Request for Proposals

Security Deposit. 10.1 Tenant (a) Concurrently with its execution of this Sublease, Subtenant shall deposit with Landlord within five Sublandlord an amount equal to Forty-Four Thousand Six Hundred Twenty-Five Dollars (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”$44,625), which Security Deposit shall be held by Landlord in immediately available federal funds, as security for the full and faithful performance by Tenant of all of the terms, covenants and conditions every provision of this Lease Sublease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this LeaseSubtenant. If Tenant Subtenant defaults with respect to any provision of this LeaseSublease, including, but not limited to, any provision the provisions relating to the payment of Rentrent, then Landlord Sublandlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit said security deposit for the payment of any Rent or rent and any other sum in default, or for the payment of any other amount which Sublandlord may spend or become obligated to spend by reason of Subtenant’s default or to compensate Landlord Sublandlord for any other loss or damage that Landlord which Sublandlord may suffer by reason of TenantSubtenant’s default. If any portion of the Security Deposit said security deposit is so used or applied, then Tenant Subtenant shall, within ten five (105) days following after written demand therefor, increase the amount of the L/C Security or deposit cash with Landlord Sublandlord in an amount sufficient to restore the Security Deposit security deposit to its required original amount, and TenantSubtenant’s failure to do so shall be a material breach of this LeaseSublease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first Except to the payment of Rent and other charges due Landlord for all periods prior extent required by law, Sublandlord shall not be required to the filing of such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenantkeep said security deposit separate from its general funds, and thereupon Landlord Subtenant shall not be discharged from entitled to interest on any further liability with respect to such security deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant Subtenant shall fully and faithfully perform every provision of this Lease Sublease to be performed by it, then the Security Deposit, said security deposit or any balance thereof, thereof shall be returned to Tenant Subtenant (or, at LandlordSublandlord’s option, to the last assignee of TenantSubtenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may the term and Subtenant’s vacation of the Subleased Premises. Nothing herein shall be in construed to limit the form amount of cash, a letter of credit damages recoverable by Sublandlord or any other remedy to the security instrument acceptable to Landlord in its sole discretion. Tenant deposit. (b) At Subtenant’s election, the security deposit may at any timetake the form either of cash or of an unconditional, except during Default, deliver a irrevocable letter of credit (the “L/C SecurityLetter of Credit”) from a U.S. banking institution reasonably acceptable to Sublandlord, insured by a federal insurance agency (“Issuer”). The Letter of Credit shall (i) meet the requirements of the “Uniform Customs and Practice for Documentary Credits,” ICC No. 500 (1993 Edition), (ii) name Sublandlord as the entire Security Depositbeneficiary, as follows. (aiii) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, be in the amount of the Security Depositsecurity deposit required hereunder, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlordbe payable in full or partial draws against Sublandlord’s transfer of the L/C Security; or sight draft, (v) include an “evergreen” provision which provides that the issuer Letter of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof Credit shall be held as a cash Security Deposit. renewed automatically on an annual basis unless the Issuer delivers thirty (d30) Tenant shall not seek days prior written notice of cancellation to enjoinSublandlord, prevent(vi) have an initial expiration date no earlier than one year from the date of issue, or and (vii) otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw be in the same manner form and for the same purposes as a cash Security Depositsubstance satisfactory to Sublandlord. In the event the Letter of Credit is ever not renewed when required hereunder, Sublandlord shall have the right to draw upon the Letter of Credit and hold the proceeds thereof as a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneouscash security deposit. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Sublease Agreement (Capitalsource Inc)

Security Deposit. 10.1 12.1. Tenant shall deposit with Landlord within five (5) days of on or before the Execution Date a security deposit in the amount sum set forth in Section 2.8 2.6 (the “Security Deposit”), which Security Deposit sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 12 shall survive the expiration or earlier termination of this Lease. 10.2 12.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 12.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 12.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 12.5. [Intentionally omitted] 12.6. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 12.7. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during DefaultDefault (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the TermTerm and until the date that is sixty (60) days after the then current Term Expiration Date, a letter of credit in the form of Exhibit H E issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. Landlord may require the L/C Security to be re-issued by a different issuer at any time during the Term if Landlord reasonably believes that the issuing bank of the L/C Security is or may soon become insolvent; provided, however, Landlord shall return the existing L/C Security to the existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent, then Tenant shall immediately deliver to Landlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article 12. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires requires; and (iii) in such extended period, Landlord shall not unreasonably refuse to exceed 30 days)consent to an appropriate reduction of the L/C Security. Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease (Avi Biopharma Inc)

Security Deposit. 10.1 Concurrent with the execution of this Lease by Tenant, Tenant shall pay to Landlord the sum of Two Thousand Five Hundred Fifty and 83/100 Dollars ($2,550.83) of which Five Hundred Eighty One and 00/100 Dollars ($581.00) shall apply to OER and Six Hundred Ninety Four and 83/100 Dollars ($694.83) shall apply to Minimum Rent for the first full month of the Lease. The balance of One Thousand Two Hundred Seventy Five and 00/100 Dollars ($1,275.00) shall remain on deposit with Landlord within five (5) days Owner during the term of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord this Lease and any extensions as security for the payment of Rent and the full and faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to Lease. In the event of default, the sum shall be kept retained by Owner and performed by Tenant during may be applied toward damages arising from such default. Said deposit shall not be construed as liquidated damages. Within sixty (60) days after the period commencing on yielding of said premises at the Execution Date and ending upon the expiration or termination of this LeaseLease by Tenant, and providing no default has occurred, said sum shall be returned to Tenant. If any monies are withheld from the same, the Landlord shall provide a written accounting as to why the monies were withheld. No interest shall be payable on the deposit. It is understood that Owner shall always have the right to apply said deposit or portion thereof to the curing of any default that may exist. Should Owner convey its interest under this Lease, the deposit, or the part or portion thereof not previously applied, shall be turned over to Owner’s grantees or assignees; and, in the event of such a grant or assignment, Tenant defaults hereby releases Owner from any liability with respect to the deposit and Tenant agrees to look solely to such grantee or assignee and this provision shall further apply to any provision of this Leasesubsequent grantees or assigns. Tenant agrees it will not assign, includingpledge, but mortgage or otherwise hypothecate its interest in the security deposit. It is agreed that the sum is not limited to, any provision relating to the made in payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all is paid solely as security by Tenant for the full and faithful performance of the obligations and terms of the Lease. Should the entire deposit or any part of the Security Deposit portion thereof be appropriated and applied by Owner or Landlord for the payment of any overdue Rent or any other sum in default, or sums due and payable to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following upon written demand thereforby Landlord, increase the remit to Landlord for delivery to Owner a sufficient amount of the L/C Security or deposit in cash with Landlord in an amount sufficient to restore said security to the Security Deposit to its required amountoriginal sum deposited, and Tenant’s failure to do so within ten (10) days after receipt of such demand shall be constitute a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease Agreement

Security Deposit. 10.1 Tenant shall deposit has deposited with Landlord within five (5) days of the Execution Date a security deposit amount indicated in the amount set forth in Section 2.8 (the “Special Lease Terms as a Security Deposit”), which Security Deposit . Such sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants covenants, and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Leasecommits a Default, including, but not limited to, any provision the provisions relating to the payment of Rentrent, then and such Default is not cured within any applicable cure period, Landlord may (but shall not be required to) use, apply or retain all or any part of the this Security Deposit for the payment of any Rent rental or any other sum in default, or for the payment of any amount that Landlord may spend or become obligated to spend by reason of Tenant’s Default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s defaultDefault. If any portion of the said Security Deposit is so used or applied, then Tenant shall, shall within ten five (105) business days following after written demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of Landlord shall not be required to keep this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenantseparate from its general funds, and thereupon Landlord Tenant shall not be discharged from any further liability with respect entitled to interest on such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the The Security Deposit, Deposit or any balance thereofthereof after application as provided hereunder, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of successor to Tenant’s interest hereunder) within thirty forty-five (3045) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit Lease Term (including the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Extended Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 daysif applicable). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful drawtermination of Landlord’s interest in this Lease, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing transfer said deposit to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its successor in interest in the Premises, then Tenant shall at Tenant’s expenseand shall, within fifteen five (155) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then of such transfer provide Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Securitywith written notice thereof.

Appears in 1 contract

Sources: Lease Agreement (Skullcandy, Inc.)

Security Deposit. 10.1 Upon execution of this Lease, Tenant shall deposit with Landlord within five (5) days of the Execution Date a security deposit Security Deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Article I. The Security Deposit shall be held by Landlord as security for the full and faithful performance by Tenant of all of the terms, covenants and conditions provisions of this Lease to be kept and performed by Tenant during the period commencing term hereof. In no event shall Landlord be obligated to pay, or Tenant is entitled to receive, any interest or other earnings on the Execution Date security deposit. Landlord shall not be obligated to hold the Security Deposit in trust or in a separate account but may freely commingle the security deposit with Landlord’s other funds. In the event Tenant fails to keep and ending upon perform any of the expiration terms, covenants or termination of this Lease. If Tenant defaults with respect to any provision provisions of this Lease, includingthen Landlord, but not limited toat Landlord’s option, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, appropriate and apply or retain all or any part of the Security Deposit for the payment of Deposit, or. so much thereof as may be necessary to pay any Rent or any other sum sums due hereunder for which Tenant shall be in defaultdefault of payment. Tenant, or upon notice from Landlord, immediately shall remit to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the this Security Deposit to its the amount required amountto be maintained in accordance with this Article. Upon ▇▇▇▇▇▇’s full and complete performance and compliance with all of the terms, covenants and Tenantprovisions of this Lease during the lease term, upon the expiration of the term and within thirty (39) days following ▇▇▇▇▇▇’s failure to do so shall be a material breach surrender of the Premises in accordance with the terms of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed returned to be applied first to Tenant. In the payment event of Rent and other charges due Landlord for all periods prior to a sale of the filing of such proceedings. 10.3 Building, Landlord may deliver the Security Deposit to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenantpurchaser, and thereupon upon such delivery, Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Office Lease Agreement (Alpha Healthcare Acquisition Corp Iii)

Security Deposit. 10.1 Tenant shall deposit ▇. ▇▇▇▇▇▇ has deposited with Landlord within five (5) days the sum of the Execution Date a security deposit $140.000.0, either in the amount set forth cash or by Letter of Credit as provided in Section 2.8 (the “Security Deposit”)C hereof, which Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of performance, observance and compliance with all of the terms, covenants and conditions of this Lease lease on Tenant's part to be kept and performed by perform, observe or comply with. Tenant during agrees that, in the period commencing on the Execution Date and ending upon the expiration event that Tenant defaults in respect of any of such terms, covenants or termination conditions of this Lease. If Tenant defaults with respect to any provision of this Lease, lease (including, but not limited towithout limitation, any provision relating to the payment of Rentany installment of fixed rent or any amount of additional rent), then Landlord may (but shall not be required to) use, apply apply, or retain all the whole or any part of the Security Deposit cash security so deposited or may notify the Issuing Bank (as such term is defined in Section C hereof) and thereupon receive all of the monies represented by the said Letter of Credit and use, apply, or retain the whole or any part of such proceeds, or both, as the case may be, to the extent required for the payment of any Rent fixed rent, additional rent, or any other sum sums as to which Tenant is in default, or to compensate Landlord for any other loss or damage sum that Landlord may suffer expend or may be required to expend by reason of Tenant’s defaultany such default (including any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord). If In the event that Landlord applies or retains any portion or all of such cash security or proceeds of such Letter of Credit, or both, as the Security Deposit is case may be, the amount not so used used, applied or appliedretained shall continue to be treated as Tenant's security deposit, then and Tenant shall, shall restore the amount so applied or retained within ten five (105) days following after Landlord's demand therefor, increase so that, subject to the provisions of Section F, at all times, the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so deposited shall be a material breach of this Lease$140,000.00. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If that Tenant shall fully and faithfully perform every provision comply with all of the terms, provisions, covenants and conditions of this Lease to be performed by itlease, then that portion, if any, of the Security Depositcash security or Letter of Credit, or any balance thereofboth, as the case may be, not used, applied or retained shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination Expiration Date and after delivery of possession of the entire demised premises to Landlord, in accordance with, and subject to, the applicable provisions of this Leaselease. 10.5 The Security Deposit may B. To the extent Tenant has deposited with Landlord a cash security, ▇▇▇▇▇▇▇▇ agrees to deposit same into an interest bearing account in a bank or savings and loan association to be in the form of cashselected, a letter of credit or any other security instrument acceptable from time to time, by Landlord in its sole discretion. Tenant may at any time▇▇▇▇▇▇▇▇ agrees, except during Default, deliver a letter of credit (the “L/C Security”) as further to hold said security in such an account for the entire Security Depositterm of this lease, subject, however, to the terms of Section A above with respect to the use, application I:\DATA\WPDOCS\15255_00.015\RES_LEAL\97021622 1525500015 BES:PAL FIRST WILLOW, LLC OFFICE LEASE MANCHESTER 040297 052197 060497 061697 or retention of such security. To the extent permitted by law, ▇▇▇▇▇▇ agrees that Landlord shall be entitled to receive and retain, as follows. an administrative expense, a sum equal to one (a1%) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlordpercent per annum upon such security, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend have the expiry date of right to withdraw such L/C Security sum from time to time as Landlord reasonably requires (shall determine in is sole discretion. The balance of the interest earned on such security shall, provided Tenant is not then in default under this lease, and to exceed 30 days)the extent that same shall not be used, applied or retained pursuant to the terms of Section A above, be paid to Tenant upon the request of Tenant, but not more than once during any calendar year of the term of this lease. Tenant Unless and until such interest shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers be paid to Landlord satisfactory L/C Security in place of the entire Security Depositand Tenant as herein provided, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a part of the security deposited by Tenant, subject to, and in accordance with, the terms of Section A above. Landlord shall not be required to credit any security with the interest for any period during which Landlord does not receive interest thereon. C. In lieu of a cash Security Deposit.deposit, Tenant may deliver to Landlord as such security, a clean, irrevocable, transferable (without cost to Landlord) and unconditional Letter of Credit issued by and drawn upon any commercial bank reasonably acceptable to Landlord (hereinafter referred to as the "Issuing Bank") with offices for banking purposes in the City of New York and having a net worth of not less than One Hundred Million and 00/100 ($100,000,000.00) Dollars, which Letter of Credit shall have a term of not less than one year, be in form and content satisfactory to Landlord, be for the account of Landlord and, subject to the provisions of Section F, be in the amount of $140,000.00. The Letter of Credit shall provide that: (a) The Issuing Bank shall pay to Landlord or its duly authorized representative an amount up to the face amount of the Letter of Credit upon presentation of only the Letter of Credit and a sight draft in the amount to be drawn; (b) The Letter of Credit shall be deemed to be automatically renewed, without amendment, for consecutive periods of one year each, unless the Issuing Bank sends written notice (hereinafter referred to as the "Non-Renewal Notice") to Landlord by certified or registered mail, return receipt requested, not less than thirty (30) days next preceding the then expiration date of the Letter of Credit, that it elects not to have such Letter of Credit renewed; (c) Landlord, after its receipt of the Non-Renewal Notice, shall have the right, exercisable by a sight draft only, to receive the moneys represented by the Letter of Credit (which moneys shall be held by Landlord as a cash deposit pursuant to the terms of this Article pending the replacement of such Letter of Credit) (and Landlord shall have such right regardless of whether the Letter of Credit expressly gives Landlord such right); and I:\DATA\WPDOCS\15255_00.015\RES_LEAL\97021622 1525500015 BES:PAL FIRST WILLOW, LLC OFFICE LEASE MANCHESTER 040297 052197 060497 061697 (d) In the event of a sale or the transfer of the Land or the Building, or Landlord's interest in any of the foregoing, or a leasing by Landlord or any of the foregoing or Landlord's interest therein, the Letter of Credit shall be transferable by Landlord as provided in Section D below, at no cost or expense to Landlord and Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds be notified of any draw in the same manner and for the same purposes as a cash Security Depositsuch transfer. . In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant sale or transfer of the wrongfully drawn sumsland or the Building, or the then Landlord's interest in the land or the Building, or a leasing by the then Landlord of the land or the Building or of Landlord's interest therein, Landlord shall have the right, at no cost or expense to Landlord, to transfer or assign such cash security or Letter of Credit, or both, as the case may be, to the vendee, transferee or lessee, and Landlord shall upon request confirm notify Tenant, by certified mail, return receipt requested, of such sale, transfer or lease, together with the name and address of such vendee, transferee or lessee who shall acknowledge, in writing writing, receipt of such security, and Landlord shall thereupon be released by Tenant from all liability for the return of such cash security or Letter of Credit. In such event, ▇▇▇▇▇▇ agrees to look solely to the issuer new landlord for the return of said cash security or Letter of Credit. It is agreed that the L/C Security that provisions hereof shall apply to every transfer or assignment made of said cash security or Letter of Credit to a new Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Office Lease (Manchester Equipment Co Inc)

Security Deposit. 10.1 Tenant shall deposit (a) Concurrently with Landlord within five (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision execution of this Lease, including, but not limited to, any provision relating Tenant has delivered to Landlord cash in the amount of Ten Million Dollars ($10,000,000) (the "Security Deposit") which shall be deposited in a segregated interest- ---------------- bearing account (the "Account") with a financial institution or institutions ------- selected by Lender or Landlord. The Security Deposit shall secure the payment by Tenant of Rentthe Rent and all other charges or payments to be paid hereunder and the performance of the covenants and obligations contained herein. (b) If at any time an Event of Default shall have occurred and be continuing beyond the applicable grace period, then if any, Landlord may (but shall not be required to) useentitled, apply or retain all or at its sole discretion, at any part of time and from time to time, to withdraw the Security Deposit or any portion thereof from the Account and to apply the proceeds in payment of (i) any Rent or other charges for the payment of any Rent or any other sum which Tenant shall be in default, or to compensate (ii) any expense incurred by Landlord for in curing any default of Tenant, (iii) any other loss sums due to Landlord in connection with any default or damage that the curing thereof, including, without limitation, any damages incurred by Landlord may suffer by reason of Tenant’s such default, including maintenance expenses and management fees and/or (iv) the payment of leasing commissions and tenant improvements for any substitute tenant. If any portion of the Security Deposit is so used used, retained or appliedapplied by Landlord for any purpose set forth above, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from demand therefor is made by Landlord, provide to Landlord cash which complies with the requirements of this Paragraph 37 so that the Security Deposit is in the original principal amount thereof. Landlord shall deliver to Tenant copies of all statements regarding the account(s) in which the Security Deposit is held promptly after receipt thereof by Landlord. (andc) So long as no Event of Default exists, at any time following the later to occur of payment in full of the Initial Loan or the expiration of the tenth (10th) Lease Year, the balance of the Security Deposit shall be returned to Tenant upon the earlier to occur of: (i) the expiration of the Term or (ii) no later than fifteen (15) days after the date on which Tenant receives a rating ("Required Rating")on its publicly-traded unsecured senior debt of Baa3 or better from ▇▇▇▇▇'▇, provided that at the time of such rating Tenant has a rating from S&P of not less than BB+. (d) Notwithstanding the foregoing, if at any time or from time to time following the release of the Security Deposit pursuant to Subsection (ii) of this Paragraph 37(c) (A) Tenant's publicly-traded unsecured debt rating shall be downgraded to Ba1 or Ba2 from ▇▇▇▇▇'▇, and is BB or BB+ from S&P, Tenant shall redeposit with Landlord a security deposit in the amount of Five Million Dollars ($5,000,000) or (B) if such debt rating from ▇▇▇▇▇'▇ shall be less than Ba2 and from S&P shall be less than BB, Tenant shall redeposit with Landlord Ten Million Dollars ($10,000,000) (or if the deposit described in clause (A) has been made, Five Million Dollars $5,000,000). Any such amounts shall be deposited within fifteen (15) days following the downgrade of Tenant's rating and any amounts so deposited shall be considered the "Security Deposit" for the purposes of this Lease and shall thereafter be subject to the applicable provisions of this Lease, including this subparagraph (c). (e) At the request of Tenant (so long as no Event of Default exists) the Security Deposit shall be invested in: (i) securities issued or fully guaranteed or insured by the United States Government or any agency thereof having maturities of not more than 12 months from the date of acquisition; (ii) certificates of deposit, time deposits, Eurodollar time deposits, repurchase agreements, reverse repurchase agreements, or bankers' acceptances, having in each case a tenor of not more than 12 months, issued by any Bank, or by any U.S. commercial bank or any branch or agency of a non-U.S. bank licensed to conduct business in the U.S. having combined capital and surplus of not less than $100,000,000 and whose short-term securities are rated at least A-1 by S&P or at least P-1 by ▇▇▇▇▇'▇; (iii) taxable and tax-exempt commercial paper of an issuer requiresrated at least A-1 by S&P or at least P-1 by ▇▇▇▇▇'▇ and in either case having a tenor of not more than 270 days; (iv) medium term notes of an issuer rated at least AA by S&P or at lease Aa2 by ▇▇▇▇▇'▇ and having a remaining term of not more than 12 months after the date of acquisition by the Company or its Subsidiaries; (v) municipal notes and bonds which are rated at least SP-1 or AA by S&P or at least MIG-2 or Aa by ▇▇▇▇▇'▇ with tenors of not more than 12 months; (vi) investments in taxable or tax-exempt money market funds with assets greater than $500,000,000 and whose assets have average maturities less than or equal to 180 days and are rated at least A-1 by S&P or at least P-1 by ▇▇▇▇▇'▇; (vii) money market preferred instruments of an issuer rated at least A-1 by S&P or at least P-1 by ▇▇▇▇▇'▇ with tenors of not more than 12 months; or (viii) such other comparable investments as may be requested by Tenant and approved by Landlord and Lender, such approval not to be unreasonably withheld. (f) As long as no Event of Default exists, all interest accrued on the Security Deposit shall be paid to Tenant as and when such interest is received from the investment of the Security Deposit, but in no event more than once per calendar quarter. (g) Landlord shall consent to) an amendment have the right to designate Lender as the L/C holder of the Security naming Landlord’s grantee Deposit during the term of the applicable Loan in which event Lender shall have all of the rights of Landlord under this Paragraph 37. Tenant covenants and agrees to execute such agreements, consents and acknowledgments as substitute beneficiary. If may reasonably be requested by Landlord from time to time to change the required holder of the Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C SecurityDeposit as hereinabove provided.

Appears in 1 contract

Sources: Lease Agreement (Advanced Micro Devices Inc)

Security Deposit. 10.1 (a) Upon execution and delivery of this Lease by Tenant, as security for performance by Tenant during the Lease Term of the terms of this Lease on the part of Tenant to be performed, Tenant shall deposit with Landlord the Security Deposit. Such amount shall be returned to Tenant, without interest, within forty-five (545) days after the expiration of the Execution Date Lease Term, provided Tenant has fully observed and performed all of the terms, covenants, agreements, warranties and conditions hereof on its part to be observed and performed. Landlord shall have the right, at any time, to apply all or any part of said Security Deposit toward the cure of any default of Tenant, the repair of any damage to the Premises or otherwise caused by Tenant, or the amount of any Rent owing under this Lease. No application of the Security Deposit shall be construed to limit Landlord’s right to recover additional sums from Tenant for damages to the Premises.- If any part of said Security Deposit is applied by Landlord, Tenant shall immediately pay to Landlord an amount sufficient to return said Security Deposit to the balance on deposit with Landlord prior to application. Landlord shall not be required to keep the Security Deposit separate from its general accounts. (b) Tenant shall not be entitled to apply the Security Deposit to Rent due hereunder. In an act of bankruptcy by or insolvency of Tenant, or the appointment of a security deposit receiver for Tenant or a general assignment for the benefit of Tenant’s creditors, then the Security Deposit shall be deemed immediately assigned to Landlord. The right to retain the Security Deposit shall be in addition and not alternative to Landlord’s other remedies under this Lease or as may be provided by law and shall not be affected by summary proceedings or other proceedings to recover possession of the Premises. (c) In a sale or transfer of Landlord’s interest in the amount set forth in Section 2.8 (Premises or the Building or a lease by Landlord of the Building, Landlord shall transfer the Security Deposit to the purchaser or lessee, as the case may be, and Landlord shall be relieved of liability to Tenant for the return of such Security Deposit”). Tenant shall look solely to the new owner or lessee for the return of said Security Deposit. The Security Deposit shall not be mortgaged, which assigned or encumbered by Tenant. In a permitted assignment or sublet under this Lease by Tenant, the Security Deposit shall be held by Landlord as security for a deposit made by the faithful performance by Tenant of all of the terms, covenants permitted assignee or subtenant and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any have no further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision the return of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The said Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease Agreement (Teavana Holdings Inc)

Security Deposit. 10.1 Concurrently with Tenant's execution of this Lease, ---------------- Tenant shall deposit with Landlord within five the sum of: FORTY TWO THOUSAND AND NO/100 ----------------------------- Dollars (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”$42,000.00), which Security Deposit . Said sum shall be held by Landlord as security a Security Deposit --------- for the faithful performance by Tenant of all of the terms, covenants covenants, and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Leaseterm hereof. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision to the provisions relating to the payment of Rentrent and any of the monetary sums due herewith, then Landlord may (but shall not be required to) use, apply or retain all or of any part of the this Security Deposit for the payment of any Rent or any other sum in default, amount which Landlord may spend by reason of Tenant's default or to compensate Landlord for * $21,000.00 Cash due upon Lease execution. $21,000.00 Promissory Note due October 1, 1998. Initials: /s/ M.H. ----------- Initials: /s/ ▇.▇. ----------- page 2 of 8 any other loss or damage that which Landlord may suffer by reason of Tenant’s 's default. If , if any portion of the Security said Deposit is so used or applied, then Tenant shall, within ten (10) days following after written demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an the amount sufficient to restore the Security Deposit to its required amount, and Tenant’s original amount Tenants failure to do so shall be a material breach of this Lease. The provisions of Landlord shall not be required to keep this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenantseparate from its general kinds, and thereupon Landlord Tenant shall not be discharged from any further liability with respect entitled to interest on such depositDeposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform performs every provision of this Lease to be performed by it, then the Security Deposit, Deposit or any balance thereof, thereof shall be returned to Tenant (or, or at Landlord’s 's option, to the last assignee of Tenant’s Tenants interest hereunder) within thirty (30) days after at the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial Lease term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending vacated the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security DepositPremises. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant termination of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its 's interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requiresthis Lease, Landlord shall consent to) an amendment transfer said Deposit to Landlord's successor in interest whereupon Tenant agrees to release Landlord from liability for the L/C Security naming Landlord’s grantee as substitute beneficiary. If return off such Deposit or the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Securityaccounting therefor.

Appears in 1 contract

Sources: Lease Agreement (Curon Medical Inc)

Security Deposit. 10.1 Upon Tenant's execution of this Lease, Tenant shall deposit with will deliver to Landlord within five an Irrevocable Letter of Credit (5the "Letter of Credit") days of the Execution Date a security deposit in the amount set forth in Section 2.8 (of the Security Deposit”), which Security Deposit in substantially the form attached hereto as Exhibit E and made a part hereof from a financial institution acceptable to Landlord. Tenant shall cause the Letter of Credit to be held by Landlord maintained in full force and effect throughout the Lease Term and during the sixty (60) day period after the later of (a) the expiration of the Lease Term or (b) the date that Tenant delivers possession of the Leased Premises to Landlord, as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of Tenant’s obligations contained in this Lease. If In the event that, during the Lease Term, Tenant defaults with respect fails to any provision deliver to Landlord a renewal or replacement to the Letter of Credit by a date no later than forty-five (45) days prior to its expiration date, Landlord shall have the right to demand and receive payment in full under the letter of credit and to hold the cash proceeds as the Security Deposit under this Lease. In the event of a default by Tenant, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent to cure all or any other sum in part of such default; provided, however, that any such application by Landlord shall not be or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment an election of Rent and other charges due remedies by Landlord for all periods prior to the filing of such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease or considered or deemed to be performed by itliquidated damages. Tenant agrees promptly, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s optionupon demand, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit deposit such additional sum with Landlord as may be in required to maintain the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) All sums held by Landlord pursuant to this Article 4 shall with reasonable diligence complete any necessary calculations; be without interest and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated may be commingled by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place . At the end of the entire Security DepositLease Term, provided that there is then no uncured default or any repairs required to be made by Tenant pursuant to Section 2.03 above or Section 7.03 below, Landlord shall remit to Tenant any cash return the Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Office Lease (Channeladvisor Corp)

Security Deposit. 10.1 Tenant shall deposit ▇▇▇▇▇▇, contemporaneously with the execution of this Lease, has deposited with Landlord within five Dollars (5$) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord ) as security for the full and faithful performance by Tenant of all of the terms, covenants and conditions of this Lease upon ▇▇▇▇▇▇’s part to be kept and performed by Tenant during performed. The Security Deposit, to the period commencing on the Execution Date and ending extent all or any portion thereof is remaining upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, shall be returned to Tenant after the time fixed as the expiration of the Term, provided ▇▇▇▇▇▇ has fully and faithfully carried out all of the terms, covenants and conditions on ▇▇▇▇▇▇'s part to be performed hereunder, including, without limitation, those relating to the condition in which the Premises are to be surrendered hereunder. Landlord shall have the right, but not limited tothe obligation, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for to cure any default of Tenant; and, if Landlord does so, Tenant shall, upon demand, deposit with Landlord the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage amount so applied so that Landlord may suffer by reason of shall have the full Security Deposit on hand at all times during the Term. Tenant’s default. If any portion of failure to pay to Landlord a sufficient amount to restore the Security Deposit is so used or applied, then Tenant shall, to the original sum deposited within ten (10) days following after receipt of demand therefor, increase therefor shall constitute a default hereunder. No interest shall be paid by Landlord to Tenant on the amount Security Deposit. In the absence of evidence satisfactory to Landlord of any assignment by ▇▇▇▇▇▇ of the L/C Security or deposit cash with Landlord in an amount sufficient right to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then receive the Security Deposit, or any the remaining balance thereof, shall be returned to Tenant (or, at Landlord’s option, Landlord may return the Security Deposit to the last assignee original Tenant regardless of Tenant’s interest hereunder) within thirty (30) days after the expiration one or earlier termination more assignments of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant sale or other transfer of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its 's interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment have the right to transfer the Security Deposit to the L/C transferee. No holder of a mortgage to which the Premises or any part thereof is subject shall be responsible in connection with the Security naming Deposit, by way of credit or payment of any rentals or otherwise, unless such mortgagee shall have actually received the Security Deposit. The Security Deposit may be commingled with other funds of Landlord’s grantee as substitute beneficiary. If It is expressly understood that the required Security changes while L/C Security is in force, then reentering of the Premises by Landlord for any default on the part of Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment prior to the L/C Securityexpiration of the Term shall not be deemed a termination of this Lease entitling Tenant to recover the Security Deposit.

Appears in 1 contract

Sources: Single Tenant Lease

Security Deposit. 10.1 Tenant shall deposit has deposited with Landlord within five (5) days the sum of the Execution Date a security deposit in the amount set forth in Section 2.8 Eight Hundred Ninety Dollars($890.00 )(the "Security Deposit”), ") which Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants covenants, and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this LeaseLease Term. If Tenant defaults with respect to any provision of this Lease, including, Lease including but not limited to, any to the provision relating to the payment of Rentrent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent rent or any other sum in default, or for the payment of any amount which Landlord may spend or become obligated to spend by reason of Tenants default, or to compensate Landlord for any other loss or damage that which Landlord may suffer by reason of Tenant’s Tenants default. If any portion of the Security Deposit is so used or applied, then Tenant shall, shall within ten (10) days following after written demand therefortherefore, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, original amount and Tenant’s Tenants failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, Deposit or any balance thereof, thereof shall be returned to Tenant (or, at Landlord’s 's option, to the last assignee of Tenant’s 's interest hereunder) within thirty (30) days after at the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one yearLease term. If, at the Term Expiration Date, any Rent remains uncalculated No interest shall accrue or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit be payable to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant termination of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its 's interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requiresthis Lease, Landlord shall consent to) an amendment transfer the Security Deposit to Landlord's successor in interest and Tenant shall look solely to such transferee with respect to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C SecurityDeposit.

Appears in 1 contract

Sources: Office Lease (Juina Mining Corp Inc)

Security Deposit. 10.1 Landlord hereby acknowledges that ▇▇▇▇▇▇ has deposited with Landlord the further sum of: $3,400.00 "Security Deposit" to secure the faithful performance by Tenant of each term, covenant and condition of this Lease for the entire term or any renewal hereof and for the cleaning of the Premises after surrender by ▇▇▇▇▇▇. If at anytime during the term of this Lease or following the expiration or earlier termination thereof, any of the rent or other sums overdue to Landlord remains unpaid, then Landlord may (at the option of Landlord) appropriate and apply all or any portion of the Security Deposit to the payment of such overdue rent or other sums, but by appropriating the Security Deposit, it is agreed that Landlord in no way waives, any of its rights to the balance of rent or other sums due under this Lease. If during the term hereof or an ensuing renewal period a part of or the whole deposit is appropriated and applied to sums due Landlord, then upon written notification, Tenant shall deposit with remit to Landlord a sufficient amount payable by check to the Landlord all sums due (if the Security Deposit was inadequate) and to restore the Security Deposit to the original sum stated. Tenant's failure to do so within five (5) days after receipt of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit such demand shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be constitute a material breach of this Lease. The provisions Provided all terms of this Article 10 shall survive Agreement have been met, within three (3) weeks from the expiration or earlier termination date Landlord receives possession of this Lease. 10.2 In the event Premises, the full amount of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed returned to be applied first Tenant, less only such amounts as are reasonably necessary (a) to remedy any defaults in the payment of Rent rent and other charges due Landlord for all periods prior to the filing of such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by from Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, ; or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant make any cash Security Deposit Landlord previously held. required payment on Tenant's behalf; or (c) Landlord may draw upon the L/C Securityto paint, clean carpet, draperies, appliances and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as interior of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C SecurityPremises; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.or

Appears in 1 contract

Sources: Lease Agreement

Security Deposit. 10.1 9.1. Tenant shall deposit has deposited with Landlord within five (5) days of the Execution Date a security deposit in the amount sum set forth in Section 2.8 2.11 (the “Security Deposit”), which Security Deposit sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Effective Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of Landlord shall not be required to keep this Article 10 Security Deposit separate from its general fund, and Tenant shall survive not be entitled to interest on the expiration or earlier termination of this LeaseSecurity Deposit. 10.2 9.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 9.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 9.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease (CardioVascular BioTherapeutics, Inc.)

Security Deposit. 10.1 Concurrently with Tenant's execution of this Lease, Tenant shall deposit with Landlord within five (5the additional sum of TWENTY FOUR THOUSAND NINE HUNDRED TWO & 00/100 Dollars $24,902.00) days of to be added to the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit held by Landlord under the terms of Section 6. of that certain Lease Agreement dated as of April 15, 1994 by and between Wolf▇ ▇▇▇d Investments No. 3, Landlord, and Aspec Technology, Inc., Tenant. Such total Security Deposit shall therefore be a sum equal to the last month's Basic Rent vis. THIRTY SIX THOUSAND TWO HUNDRED FIFTY & 00/100 Dollars ($36,250.00). Said sum shall be held by Landlord as security a Security Deposit for the full and faithful performance by Tenant of all of the terms, covenants covenants, and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Leaseterm hereof. If Tenant defaults with respect to any provision of this Lease, including, but not limited towithout limitation, any provision the provisions relating to the payment of Rentrent and any of the monetary sums due hereunder, then Landlord may (but shall not be required to) use, apply or retain all or any part of the this Security Deposit for the payment of any Rent or any other sum rent in default, or for any amount which Landlord may spend by reason of Tenant's default, of to compensate Landlord for any other loss loss, damage, liability or damage that expense which Landlord may suffer by reason of Tenant’s 's default. If any portion of the said Security Deposit is so used used, applied or appliedretained, then Tenant shall, within ten (10) days following after written demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an the amount sufficient to restore the Security Deposit to its required original amount, and . Tenant’s 's failure to do so shall be a material breach of this Lease. The provisions of Landlord shall not be required to keep this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenantseparate from its general funds, and thereupon Landlord Tenant shall not be discharged from any further liability with respect entitled to interest on such depositDeposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform performs and observes every provision of this Lease to be performed and observed by itTenant, then the Security Deposit, Deposit or any then unused balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.thereof shall

Appears in 1 contract

Sources: Lease Agreement (Aspec Technology Inc)

Security Deposit. 10.1 (a) Simultaneously with the execution of this Lease, Tenant shall deposit with Landlord within five the sum of FIVE HUNDRED TWENTY-SEVEN AND 63/100 DOLLARS (5$527.63) days of the Execution Date representing Two (2) Months’ Fixed Annual Rent in Lease Year Two (2), as a security deposit deposit. Landlord shall not be required to maintain the Security Deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which a separate account. The Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all of Tenant’s obligations, covenants, conditions and agreements under this Lease. (b) In the terms, covenants and conditions event of this Lease to be kept and performed any default by Tenant hereunder during the period commencing on Lease Term, Landlord shall have the Execution Date and ending upon right to use, apply or retain all or any portion of the expiration Security Deposit for (a) the payment of any rent, fees, charges or termination costs as to which Tenant is in default, or (b) the payment of any amount which Tenant may be obligated to pay to repair physical damage to the Premises or the Building pursuant to this Lease. If , or (c) the payment of any amount which Tenant defaults with respect may be obligated to pay for the compensation to Landlord for any provision losses incurred by reason of this LeaseTenant’s default, including, but not limited to, any provision relating to damage or deficiency arising in connection with the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part reletting of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s defaultPremises. If any portion of the Security Deposit is so used or applied, then within three (3) business days after written notice to Tenant shallof such use or application, within ten (10) days following demand therefor, increase the amount of the L/C Security or Tenant shall deposit cash with Landlord cash in an amount sufficient to restore the Security Deposit to its required original amount, and Tenant’s failure to do so shall be constitute a material breach of default under this Lease. The provisions Security Deposit is not a measure of this Article 10 shall survive the expiration or earlier termination damages, and Landlord’s use of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment is not a measure of Rent waiver of its other rights and other charges due Landlord for all periods prior to the filing of such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest remedies. Provided Tenant is not in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest default hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash return the Security Deposit to Tenant, less such portion thereof as Landlord previously held. shall have applied or be entitled to apply to satisfy any default by Tenant hereunder, within forty five (c45) Landlord may draw upon days following the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as later to occur of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after expiration of the Lease Term Expiration Date) or the vacating and surrendering of the Premises by Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease Agreement

Security Deposit. 10.1 Simultaneously with Tenant’s execution of this Lease, Tenant shall deposit with Landlord within five deliver the Security Deposit of Three-Hundred and Seventy-Five Thousand and No/100 Dollars (5$375,000.00) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which to Landlord. The Security Deposit shall be held by Landlord as security for secure the faithful performance by Tenant of all of the termsTenant’s obligations and liabilities under this Lease, covenants and conditions of this Lease shall be in addition to any and all remedies which may be kept and performed permitted by Tenant during the period commencing on the Execution Date and ending upon the expiration law or termination by other provisions of this Lease. If To the maximum extent permitted under applicable laws, Landlord may commingle the Security Deposit with its other funds. No interest shall be earned, paid, payable or owing to Tenant defaults with respect to the Security Deposit, and Landlord may retain all interest and other amounts generated thereby. Landlord may, from time to time and without prejudicing any provision of other remedy available under this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) useat law or in equity, apply the Security Deposit to: (i) pay any past due Rent; (ii) reimburse Landlord for any damages, injuries, expenses or retain all liabilities that it suffers or incurs as a result of Tenant’s default under this Lease; or (iii) cover the cost of curing any part Event of Default. Following any application of the Security Deposit for by Landlord, Tenant shall pay to Landlord, upon demand, the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion amount of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord applied in an amount sufficient order to restore the Security Deposit to its required original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, Although the Security Deposit 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. 10.3 Landlord may deliver to any purchaser property of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If if Tenant shall fully and faithfully perform every provision complies with all of this Lease to the terms hereof, any remaining balance of the same shall be performed reduced by itOne-Hundred and Eighty-Seven Thousand, then Five-Hundred and No/100 dollars ($187,500.00) upon the Security Depositearlier of either (a) Landlord obtaining permanent financing for the Building, or any balance thereof(b) at the end of the 2nd Lease Year, shall be returned payable to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days of Tenant’s written request to Landlord following the expiration of the 2nd Lease Year or the Landlord obtaining permanent financing on the Building. Although the Security Deposit shall be deemed the property of Landlord, any remaining balance of the same shall be returned to Tenant within sixty (60) days after the expiration or earlier later of the termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier all of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), ’s obligations and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts liabilities under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Leaseare satisfied. Landlord shall hold assign the proceeds of Security Deposit to any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security person or entity that acquires Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Leased Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, whereupon Landlord shall consent to) an amendment have no further liability or responsibility for its return to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C SecurityTenant.

Appears in 1 contract

Sources: Lease Agreement (Biomimetic Therapeutics, Inc.)

Security Deposit. 10.1 The Tenant shall deposit with and Landlord within five acknowledge that the sum of Eight Thousand One Hundred and Sixty-Two Dollars (5$8,162.00) days of paid by the Execution Date Tenant to the Landlord as a security deposit in the amount set forth in Section 2.8 (the "Security Deposit”), which Security Deposit shall ") pursuant to the Original Lease will continue to be held by the Landlord without liability or interest as security for the faithful performance by the Tenant of all the terms, covenants and conditions of this Lease by the Tenant to be kept, observed and performed. The Landlord shall not be required to keep the Security Deposit separate from its general funds. If at any time during the Term, the Rent or any other sums payable by the Tenant hereunder are overdue and unpaid, or if the Tenant fails to keep and perform any of the terms, covenants and conditions of this Lease to be kept kept, observed and performed by Tenant during the period commencing Tenant, the Landlord at its option may, in addition to any and all other rights and remedies provided for in this Lease or by law, appropriate and apply the entire Security Deposit, or so much thereof as is necessary to compensate the Landlord for loss or damage sustained or suffered by the Landlord due to such breach on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Tenant. If the entire Security Deposit Deposit, or any portion thereof is appropriated and applied by the Landlord for the payment of any overdue Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer sums due and payable by reason of Tenant’s default. If any portion of the Security Deposit is so used or appliedTenant hereunder, then the Tenant shall, within ten (10) days following upon written demand therefor, increase the amount of the L/C Security or deposit Landlord forthwith remit to the Landlord a sufficient amount in cash with Landlord in an amount sufficient to restore the Security Deposit to its required amountthe original sum deposited, and the Tenant’s 's failure to do so within five (5) days after receipt of such demand shall be constitute a material breach of this Lease. The provisions If the Tenant complies with all of this Article 10 shall survive the expiration or earlier termination terms, covenants and conditions and properly pays all of this Lease. 10.2 In the event of bankruptcy or Rent and any other debtor-creditor proceedings against sums herein provided and payable by the Tenant, the Security Deposit shall be deemed to be applied first returned in full to the payment Tenant without interest within sixty (60) days after the end of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 10.3 Term or any renewal thereof. The Landlord may deliver the Security Deposit to any purchaser of Landlord’s the landlord's interest in the Premises or in the funds deposited hereunder by TenantBuilding, if such interest is sold and thereupon Landlord the landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease (Acc Corp)

Security Deposit. 10.1 Tenant shall deposit with 10.1. Landlord within five (5) days acknowledges receipt of the Execution Date a security deposit in the amount sum set forth in Section 2.8 2.6 or a letter of credit in the amount of such sum (the “Security Deposit”), which Security Deposit sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of Tenant’s obligations under this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. TENANT HEREBY WAIVES THE REQUIREMENTS OF SECTION 1950.7 OF THE CALIFORNIA CIVIL CODE, AS THE SAME MAY BE AMENDED FROM TIME TO TIME. Notwithstanding anything to the contrary contained in this Article 10, Landlord acknowledges that it is presently in possession of a letter of credit issued by Silicon Valley Bank (as LOC No. SVBSF005422) in the sum of $300,000 (the “SVB L/C Security”), and that such letter of credit is acceptable (both as to the form of the letter of credit and the amount thereof) for satisfying Tenant’s obligations under this Section 10.1; provided, however, that, in the event Tenant obtains a new letter of credit to satisfy Tenant’s obligations pursuant to this Section 10.1, Landlord reserves the right to require that Tenant obtain such letter of credit in the form attached as Exhibit E to this Lease in accordance with the provisions of Section 10.6 below. 10.2 10.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 10.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 10.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 10.5. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 10.6. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Defaultwhen Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows.: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the TermTerm and until the date that is sixty (60) days after the then-current Term Expiration Date, a letter of credit in the form of Exhibit H E (other than as provided in Section 10.1 above with respect to the SVB L/C Security) issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. Landlord may require the L/C Security to be re-issued by a different issuer at any time during the Term if Landlord reasonably believes that the issuing bank of the L/C Security is or may soon become insolvent; provided, however, Landlord shall return the existing L/C Security to the existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall promptly deliver to Landlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires requires; and (iii) in such extended period, Landlord shall not unreasonably refuse to exceed 30 days)consent to an appropriate reduction of the L/C Security. Tenant shall reimburse Landlord’s reasonable out-of-pocket legal costs not to exceed the sum of Two Thousand Five Hundred Dollars ($2,500) (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease (Halozyme Therapeutics Inc)

Security Deposit. 10.1 Upon the execution of the Lease, Tenant shall deposit with Landlord within five the sum of six thousand two hundred fifty-four and 69/100 dollars (5$6,254.69) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall to be held by Landlord as security for the payment of any rentals and any other sums of money for which Tenant shall become liable to Landlord under this Lease, and for the faithful performance by Tenant of all other obligations hereunder. Under no circumstances may Tenant deem or seek to use the security deposit as payment for the rent or other sums due hereunder. Said security deposit (less any sums expended by Landlord to cure Tenant’s default), shall be returned to Tenant within sixty (60) days after the later to occur of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon (i) the expiration or sooner termination of the Term or (ii) Tenant’s surrender of possession of the Premises to Landlord in accordance with the terms of the Lease. Landlord shall not be required to keep the security deposit separate from its other accounts and no trust relationship is created with respect to the security deposit. Tenant shall not be entitled to interest on the security deposit. The security deposit may be used in whole or in part, by Landlord from time to time, to make any payments due to it from Tenant or to cure any default of Tenant hereunder, but such use shall not waive or release Tenant from any liability or obligation of Tenant under this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If uses any portion of the Security Deposit is so used or appliedsecurity deposit, then Tenant shall, shall within ten (10) days following after written demand thereforby Landlord, increase promptly reimburse Landlord for the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Depositused. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant sale of the wrongfully drawn sumsShopping Center, Landlord may transfer the security deposit to the purchaser, and Landlord shall upon request confirm in writing to be released from any liability for the issuer of the L/C Security that Landlord’s draw was erroneoussecurity deposit. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease Agreement (Old Line Bancshares Inc)

Security Deposit. 10.1 Except as otherwise set forth herein, Tenant shall deposit with Landlord within five no later than ninety (590) days prior to the expiration of the Execution Date a security deposit in Term the amount set forth in Section 2.8 (the “Security Deposit”)sum of $16,523.36, which Security Deposit sum Landlord shall be held by Landlord retain as security for the faithful performance by Tenant of all each of its obligations hereunder (the terms, covenants and conditions "Security Deposit"). Landlord shall provide written notice to Tenant of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating such obligation thirty (30) days prior to the payment due date of Rentsaid Security Deposit. The Security Deposit shall not bear interest. If, at any time, Tenant fails to perform its obligations, then Landlord may (but shall not be required to) usemay, at its option, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereofportion thereof required to cure Tenant's default; provided, shall be returned to Tenant (orhowever, at Landlord’s option, if prior to the last assignee Expiration Date or any termination of this Lease, Landlord depletes the Security Deposit, in whole or in part, then immediately following such depletion, Tenant shall restore the amount so used by Landlord. Landlord agrees to give Tenant notice of its inspection of the Premises, allow Tenant to be present thereat and to conduct same within seven (7) days of the Expiration Date, or any termination of this Lease. Unless Landlord uses the Security Deposit to cure a default of Tenant’s interest hereunder) , or to restore the Premises to the condition to which Tenant is required to leave the Premises upon the Expiration Date or any termination of the Lease, then Landlord shall, within thirty (30) days after the expiration Expiration Date or earlier any termination of this Lease. 10.5 The Security Deposit may be , refund to Tenant any funds remaining in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretionSecurity Deposit. Tenant may at any time, except during Default, deliver a letter of not credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of against or deduct the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, Deposit from any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extensionmonth's Rent. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease (Metavante Corp)

Security Deposit. 10.1 The security deposit set forth in Item 15 of the Schedule (the "Security Deposit"), shall be deposited and maintained with Landlord as follows: (a) upon full execution hereof Tenant shall deposit with Landlord within five (5) days deliver a letter of the Execution Date a security deposit credit in the amount set forth of $500,000, drawable on a national bank headquartered in Section 2.8 Boston, Massachusetts and in all other respects acceptable to Landlord (the “Security Deposit”"LC"); (b) in the event Tenant shall elect to receive any Tenant Improvement Advance from Landlord, Tenant shall, on January 1, 2000, and again, on September 1, 2000 (if additional Tenant Improvement Advances have been made), which cause the amount of the LC to be increased to an amount equal to (i) $500,000, plus (ii) the amount of all such Tenant Improvement Advance amounts advanced to Tenant prior to such date, and (c) so long as no Default has occurred under the Lease, Tenant shall be entitled to reduce the amount of the Security Deposit evidenced by the LC by $100,000 per year, beginning on September 1, 2001, and on each anniversary thereof, until the face amount of the LC equals $100,000. In no event shall the amount of the Security Deposit be held by Landlord as reduced below $100,000. The Security Deposit is security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of Tenant's obligations under this Lease. If Tenant defaults with respect to any provision Upon the occurrence of this Leasea Default, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain use all or any part of the Security Deposit for the payment of any Rent or for the payment of any other sum in defaultamount which Landlord may pay or become obligated to pay by reason of such Default, or to compensate Landlord for any other loss or damage that which Landlord may suffer by reason of Tenant’s defaultsuch Default. If any portion of the Security Deposit is so used or appliedused, then Tenant shall, shall within ten five (105) days following after written demand therefor, increase the amount of the L/C Security or therefor deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. Landlord shall not be required amountto keep the Security Deposit separate from its general funds, and Tenant’s failure Tenant shall not be entitled to do so interest on the Security Deposit. In no event shall the Security Deposit be a material breach considered an advanced payment of this LeaseRent, and in no event shall Tenant be entitled to use the Security Deposit for the payment of Rent. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against TenantIf no default by Tenant exists hereunder, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, thereof shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The the Term and vacation of the Premises by Tenant. Landlord shall have the right to transfer the Security Deposit may be in to any purchaser of the form of cashBuilding. Upon such transfer, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory look solely to Landlord, in the amount such purchaser for return of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) ; and Landlord shall be relieved of any liability with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time respect to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease (Convergent Networks Inc)

Security Deposit. 10.1 As security for its full and faithful performance of this Lease, Tenant shall deposit with pay Landlord within five (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 of Nine Thousand Two Hundred and No/100 Dollars (the “Security Deposit”), which Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending $9,200.00) upon the expiration or termination execution of this Lease. If Tenant defaults with respect to any provision covenant or condition of this Lease, including, including but not limited to, any provision relating to the payment of Rent, additional rent or any other payment due under this Lease, and the obligation of Tenant to maintain the premises and deliver possession thereof back to Landlord at the expiration or earlier termination of the Lease Term in the condition required herein, then Landlord may (but shall not be required towithout any waiver of Tenant's default being deemed to have occurred) use, apply or retain all or any part of the Security Deposit for security deposit to the payment of any Rent sum in default or any other sum in default, or to compensate Landlord for any other loss or damage that which Landlord may suffer be required or deem necessary to spend or incur by reason of Tenant’s 's default. If any portion of the Security Deposit is so used or appliedIn such event, then Tenant shall, within ten (10) days following demand thereforupon demand, increase deposit with Landlord the amount so applied to replenish the security deposit. If Tenant shall have fully complied with all of the covenants and conditions of this Lease, but not otherwise, the amount of the L/C Security or security deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder then held by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned repaid to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier sooner termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful drawsale or transfer of Landlord's estate or interest in the Building, Landlord shall have the parties shall cooperate right to allow Tenant transfer the security deposit to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sumspurchaser or transferee, and Landlord shall upon request confirm in writing to be considered released by Tenant from all liability for the issuer return of the L/C Security that Landlord’s draw was erroneoussecurity deposit. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease Agreement (Sequoia Software Corp)

Security Deposit. 10.1 6.1 Tenant shall deposit with Landlord within five on or before the January 3, 1997 the sum of One Hundred Fifty-Five Thousand, Five Hundred, Sixty-Eight Dollars and 80/100 (5$155,568.80) days ("Initial Security Deposit"),based on the following schedule: DATE: AMOUNT: Lease Execution $50,000.00 December 15, 1996 $75,000.00 January 3, 1997 $30,568.80 Landlord shall transfer the Security Deposit of $29,620.80 and last month's rent of $14,810.40 from the Lease dated May 23, 1996 between the parties, to this Security Deposit. Upon Commencement of the Execution Date Lease, Landlord shall have a security deposit in the amount set forth in Section 2.8 (the “$200,000.00 Security Deposit. This sum, or as adjusted as provided for herein ("Security Deposit"), which Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this LeaseTenant. If Tenant defaults with respect to any provision of this Lease, including, including but not limited to, any provision to the provisions relating to the payment of Rentrent, then Landlord may (may, but shall not be required to) , use, apply or retain all or any part of the Security Deposit for the payment of any Rent rent or any other sum in default, or for payment of any other amount which Landlord may spend or become obligated to spend by reason of Tenant's default, or to compensate Landlord for any other loss or damage that which Landlord may suffer by reason of Tenant’s 's default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand thereforupon demand, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its the amount held by Landlord immediately prior to Landlord's use or application. Landlord shall not be required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, keep the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenantseparate from its general funds, and thereupon Landlord Tenant shall not be discharged from any further liability with respect entitled to such depositinterest on the Security Deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by itLease, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s 's option, to the last assignee of Tenant’s interest 's interests hereunder) within thirty ), provided that Landlord may retain the Security Deposit until such time as any amounts due from Tenant under this Lease have been determined and paid in full including, but not limited to, any sums due pursuant to Articles 3, 4 and 5, such refund of the Security Deposit shall be returned in (30) days after pursuant to this paragraph. Provided Tenant is not in default of the expiration or earlier termination of this Lease. 10.5 The , the Security Deposit may shall be in reduced by crediting the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, monthly Base Rent as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.MONTH AMOUNT ----- ------ 25 $37,339.50 26 $ 7,104.50 37 $39,602.50 38 $ 4,841.50 49 $39,602.50 50 $ 4,841.50

Appears in 1 contract

Sources: Office Lease (Retix)

Security Deposit. 10.1 Concurrently with the execution and delivery of this Lease by Tenant, Tenant shall deposit with Landlord within five a sum equal to Seventy-Five Thousand Two Hundred Eight Dollars (5$75,208.00) days of the Execution Date as a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which . The Security Deposit shall be held by Landlord as security for the faithful performance and observance by Tenant of all of its obligations under the terms, conditions and covenants and conditions of this Lease to be kept and performed by Tenant during throughout the period commencing on the Execution Date and ending upon the expiration or termination Term of this Lease. If Tenant defaults with respect performs and observes all of the terms, conditions and covenants of this Lease which are required to be performed and observed by it, Landlord shall return the Security Deposit, or balance thereof then held by Landlord, to Tenant after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant in the payment of rent or the performance or observance of any provision of the other terms, conditions or covenants of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) usemay, at its option and without notice, apply or retain all or any part of the Security Deposit for the in payment of any Rent such rent or to cure any other sum in such default; and if Landlord does so, or to compensate Tenant shall, upon request, deposit with Landlord for any other loss or damage the amount so applied so that Landlord will have on hand at all times throughout the Term of this Lease the full amount of the Security Deposit. Landlord shall not be required to hold the Security Deposit as a separate account, but may suffer by reason of Tenantcommingle it with Landlord’s defaultother funds. If any portion The use, application or retention of the Security Deposit is so used or applied, then Tenant shall, within ten any portion thereof by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by law (10it being intended that Landlord shall not first be required to proceed against the Security Deposit) days following demand therefor, increase and shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled. In the amount event of a sale or any other transfer of the L/C Security or deposit cash with Building, Landlord in an amount sufficient shall have the right to restore transfer the Security Deposit to its required amount, purchaser and Tenant’s failure Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to do so shall be a material breach look solely to such purchaser for the return of this Leasesuch deposit. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenantan assignment of this Lease, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due held by Landlord for all periods prior to the filing of such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold deposit made by the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sumsassignee, and Landlord shall upon request confirm in writing have no further responsibility for the return of such deposit to the issuer of the L/C Security that Landlord’s draw was erroneousassignor. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease Agreement (REGENXBIO Inc.)

Security Deposit. 10.1 Tenant shall deposit Resident has deposited with Landlord within five (5) days of the Execution Date a security deposit (the “Deposit”) in the amount set forth identified above to secure the Resident’s full and faithful performance of this Agreement. Upon termination of this Agreement by reason of Resident’s default hereunder or the expiration of the Term, Landlord may deduct from the Deposit an amount sufficient to pay: (a) any damages as a result of Resident’s non- payment of any portion of Total Rent or non-fulfillment of the Term of this Lease including Resident’s failure to enter into possession or abandonment of the Unit; (b) any damages to the Unit, Apartment, or Community for which the Resident is responsible; (c) any unpaid bills which become due by virtue of Resident’s occupancy, or any utility expense that may be forwarded to Landlord due to Resident’s non-payment; (d) any costs of re-renting the Unit after a breach of this Agreement by Resident; (e) any repair work or cleaning contracted for by Resident with third parties; (f) any court costs incurred by Landlord in Section 2.8 connection with terminating the tenancy; and (g) any other damages which Landlord may sustain which may then be permitted use of the Deposit under the applicable laws of the state in which the Community is located (the “Security DepositState”). Application of the Deposit in order to satisfy all or part of Resident’s obligations shall not prevent Landlord from claiming damages in excess of the Deposit. Resident shall have no right to have the Deposit applied to any portion of Total Rent which may become due under this Agreement. Upon a sale and conveyance of the Community, which Security Landlord may transfer the Deposit to the new owner and upon such transfer, all of Landlord’s liability for such Deposit shall be held by terminate and Landlord as security shall have no further liability under this lease for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or events occurring after such transfer. Upon termination of this Lease, Resident shall provide the landlord in writing with a forwarding address or new address to which any amount due from the Landlord may be sent. If Tenant defaults with respect Resident fails to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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 provide such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by itforwarding address, then the Security Deposit, or any balance thereof, amount due to the Resident shall be returned to Tenant (or, at Landlord’s option, sent to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount known address of the Resident. Any Security Deposit, with an initial term of Deposits received at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it ▇▇▇▇▇▇▇ Coastal will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.escrow account at:

Appears in 1 contract

Sources: Lease Agreement

Security Deposit. 10.1 6.01 Tenant shall deposit has deposited with Landlord within five the sum of $4,000,000.00 by Letter of Credit (5as hereinafter defined) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of performance, observance and compliance with all of the terms, covenants and conditions of this Lease lease on Tenant's part to be kept and performed by Tenant during perform, observe or comply with. In the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If event that Tenant defaults under any of the terms, covenants or conditions in this lease on Tenant's part to observe, perform or comply with respect to any provision of this Lease, (including, but not limited towithout limitation, any provision relating to the payment of Rentany installment of fixed rent or any amount of additional rent), then and fails to cure such default after the giving of any required notice and the expiration of any applicable cure period, then, to the extent required for the payment of any fixed rent, additional rent, or any other sums as to which Tenant is in default, or for any sum that Landlord may (but shall not reasonably expend or may be required toto expend by reason of any such default (including any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord), (a) Landlord may notify the Issuing Bank (as such term is defined in Section 6.03 hereof) and thereupon receive all of the monies represented by the said Letter of Credit and use, apply apply, or retain all the whole or any part of such proceeds, or (b) in the event that Landlord is holding a cash security pursuant to Section 6.03 below, Landlord may use, apply, or retain the whole or any part of the Security Deposit for cash security. In the payment event that Landlord applies or retains any portion or all of any Rent such cash security or any other sum in defaultproceeds of such Letter of Credit, or both, as the case may be, the amount not so used, applied or retained shall continue to compensate Landlord for any other loss be treated as Tenant's security deposit, and Tenant shall restore the amount so applied or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, retained within ten seven (107) days following after Landlord's demand therefor, so that, at all times, the amount deposited shall be $4,000,000.00, subject to increase and/or reduction as hereinafter provided. On or before the Phase III Effective Date, the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so Letter of Credit shall be a material breach increased by $1,000,000.00 and on or before the Phase IV Effective Date, the Letter of this LeaseCredit shall be increased by an additional $1,000,000.00. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If that Tenant shall fully and faithfully perform every provision comply with all of the material terms, provisions, covenants and conditions of this Lease to be performed by itlease, then that portion, if any, of the Security Depositcash security or Letter of Credit, or any balance thereofboth, as the case may be, not used, applied or retained shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination Expiration Date and after delivery of possession of the entire Demised Premises to Landlord, in accordance with, and subject to, the applicable provisions of this Leaselease. 10.5 The Security Deposit may 6.02 To the extent that the security deposited under this Article is a cash security deposit, Landlord agrees to deposit same into an interest bearing account in a bank or savings and loan association to be in the form of cashselected, a letter of credit or any other security instrument acceptable from time to time, by Landlord in its sole discretion. Tenant may at any timeLandlord agrees, except during Default, deliver a letter of credit (the “L/C Security”) as further to hold said security in such an account for the entire Security Depositterm of this lease, subject, however, to the terms of Section 6.01 above with respect to the use, application or retention of such security. To the extent permitted by law, Tenant agrees that Landlord shall be entitled to receive and retain, as follows. an administrative expense, a sum equal to one (a1%) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlordpercent per annum upon such security, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend have the expiry date of right to withdraw such L/C Security sum from time to time as Landlord reasonably requires shall determine in is sole discretion. The balance of the interest earned on such security shall, provided Tenant is not then in default under this lease, and to the extent that same shall not be used, applied or retained pursuant to the terms of Section 6.01 above, be paid to Tenant upon the request of Tenant, but not more than once during any calendar year of the term of this lease. Unless and until such interest shall be paid to Landlord and Tenant as herein provided, the same shall be held as a part of the security deposited by Tenant, subject to, and in accordance with, the terms of Section 6.01 above. Landlord shall not be required to credit any security with the interest for any period during which Landlord does not receive interest thereon. (a) Any letter of credit (the "LETTER OF Credit") to be delivered as security under this Article shall be a clean, irrevocable and unconditional letter of credit issued by and drawn upon a commercial bank (hereinafter referred to as the "ISSUING BANK") with offices for banking purposes in the City of New York which is a member of the New York Clearinghouse Association (or any successor thereto) or which is approved by Landlord, which Letter of Credit shall have a term of not less than one year, be in form and content satisfactory to Landlord, be for the account of Landlord and be in the amount of $4,000,000.00, subject to the increase in such amount as provided in Section 6.01 hereof or the reduction in such amount as provided in Sections 6.07 - 6.10 hereof. The Letter of Credit shall provide that: (i) The Issuing Bank shall pay to Landlord or its duly authorized representative an amount up to the face amount of the Letter of Credit upon presentation of only the Letter of Credit and a sight draft in the amount to be drawn; (ii) The Letter of Credit shall be deemed to be automatically renewed, without amendment, for consecutive periods of one year each, unless the Issuing Bank sends written notice (hereinafter called the "NON-RENEWAL NOTICE") to Landlord by certified or registered mail, return receipt requested, not less than thirty (30) days next preceding the then expiration date of the Letter of Credit, that it elects not to exceed 30 days). Tenant have such Letter of Credit renewed; and (iii) The Letter of Credit shall reimburse Landlord’s reasonable legal costs (be transferable by the beneficiary thereof, without charge to the beneficiary, and that any failure to pay the transfer charges shall not affect the beneficiary's ability to transfer the Letter of Credit; the Letter of Credit may be transferred as reasonably estimated aforesaid from time to time, by Landlord’s counsel) the then beneficiary under the Letter of Credit; to effectuate a transfer under the Letter of Credit, the beneficiary must notify the Issuing Bank in handling Landlord’s acceptance a writing signed by an authorized signatory of Lbeneficiary, of the name and address of the transferee and of the effective date of the transfer; and upon the Issuing Bank's receipt of such writing, the Issuing Bank will issue an amendment to the Letter Credit that changes the name and address of the beneficiary hereof and shall deliver the original of such amendment to the new beneficiary/C Security or its replacement or extensiontransferee and a copy thereof to the prior beneficiary/transferor. (b) If Tenant delivers to Landlord satisfactory L/C Security in place Landlord, after its receipt of the entire Security DepositNon-Renewal Notice, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon have the L/C Securityright, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with exercisable by a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will ceasesight draft only, to maintain an office in receive the city where Landlord may present drafts under moneys represented by the L/C Security. This paragraph does not limit any other provisions Letter of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/CCredit, any amount that is not applied in accordance with Section 10.1 hereof which moneys shall be held by Landlord as a cash Security Depositdeposit pursuant to the terms of this Article pending the replacement of such Letter of Credit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. 6.04 In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant sale or transfer of the wrongfully drawn sumsLand or the Building, or the then Landlord's interest in the Land or the Building, or a leasing by the then Landlord of the Land or the Building or of Landlord's interest therein, Landlord shall, at no cost or expense to Landlord, transfer or assign such cash security or Letter of Credit, or both, as the case may be, to the vendee, transferee or lessee, and Landlord shall upon request confirm notify Tenant, by certified mail, return receipt requested, of such sale, transfer or lease, together with the name and address of such vendee, transferee or lessee, and, in writing accordance with Section 7-105 of the New York General Obligations Law, Landlord shall thereupon be released by Tenant from all liability for the return of such cash security or Letter of Credit. In such event, Tenant agrees to look solely to the issuer new Landlord for the return of said cash security or Letter of Credit. It is agreed that the provisions hereof shall apply to every transfer or assignment made of said cash security or Letter of Credit to a new Landlord. In connection with the foregoing, Tenant, at no cost to Landlord, shall reasonably cooperate with Landlord and such vendee, transferee or lessee in connection with the transfer or assignment of such security or Letter of Credit, including, without limitation, executing and delivering, within ten (10) days after demand therefor, any and all instruments, certificates, agreements or other documents that Landlord, such vendee, transferee or lessee, the bank with which such security is deposited or the Issuing Bank may require. 6.05 Tenant covenants that it will not assign or encumber, or attempt to assign or encumber, such cash security or Letter of Credit, and that neither Landlord nor its successors or assigns shall be bound by any such assignment, encumbrance, attempted assignment, or attempted encumbrance. 6.06 In the event that at any time during the term of this lease Landlord, in Landlord's reasonable opinion, believes that circumstances have occurred indicating that the Issuing Bank may be incapable of, unable to, or prohibited from honoring the then existing Letter of Credit (hereinafter referred to as the "EXISTING L/C") in accordance with the terms thereof, then, upon the happening of either of the foregoing, Landlord may send written notice to Tenant (hereinafter referred to as the "REPLACEMENT NOTICE") requiring Tenant within forty-five (45) days to replace the Existing L/C Security with a new letter of credit (hereinafter referred to as the "REPLACEMENT L/C") from an Issuing Bank meeting the qualifications described in Section 6.03. Upon receipt of a Replacement L/C meeting the qualifications of Section 6.03, Landlord shall forthwith return the Existing L/C to Tenant. In the event that Landlord’s draw was erroneous(a) a Replacement L/C meeting the qualifications of Section 6.03 is not received by Landlord within the time specified or (b) Landlord reasonably believes an emergency exists, then in either event, the Existing L/C may be presented for payment by Landlord and the proceeds thereof shall be held by Landlord in accordance with Sections 6.01 and 6.02 subject, however, to Tenant's right, at any time thereafter prior to a Tenant's default hereunder, to replace such cash security with a new letter of credit meeting the qualifications of Section 6.03. 6.07 Tenant may, at any time after the four (4) year period commencing on the Rent Commencement Date, request Landlord to reduce the amount of the security deposit being held by Landlord under this Article to $5,000,000.00, in which event, provided that at the time of such request (a) this lease is in full force and effect, (b) Tenant has paid the fixed rent and additional rent for such period, (c) no Event of Default then exists, (d) no Event of Default occurred during the one (1) year period ending on the date that Tenant makes such request, and (e) If the amount of security then being held by Landlord transfers its interest under this Article is at least $6,000,000.00, Landlord shall either return to Tenant from the security deposit being held by Landlord under this Article the difference between the amount of the security deposit being so held by Landlord and $5,000,000.00, or, if such security is in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving form of a request from Landlord, deliver (and, if the issuer requiresLetter of Credit, Landlord shall consent in writing to, and, at no cost to Landlord, (A) accept from the Issuing Bank, an amendment to the L/C Security naming Letter of Credit which reduces the amount thereof to $5,000,000.00 but which does not otherwise amend or modify same, and (B) if requested by the Issuing Bank, execute and deliver to the Issuing Bank such instruments required by the Issuing Bank to effectuate such reduction; or accept from the Issuing Bank a replacement Letter of Credit in the amount of $5,000,000.00, but which is otherwise substantially identical to the Letter of Credit then on deposit with Landlord’s grantee as substitute beneficiary. If , Landlord agreeing that upon its receipt of said replacement Letter of Credit it shall return the required Security changes while L/C Security Letter of Credit then on deposit with Landlord to Tenant or to the Issuing Bank. 6.08 Tenant may, at any time after the five (5) year period commencing on the Rent Commencement Date, request Landlord to reduce further the amount of the security deposit being held by Landlord under this Article to $4,000,000.00, in which event, provided that at the time of such request (a) this lease is in forcefull force and effect, (b) Tenant has paid the fixed rent and additional rent for such period, (c) no Event of Default then exists, (d) no Event of Default occurred during the one (1) year period ending on the date that Tenant makes such request, and (e) the amount of security then being held by Landlord under this Article is at least $5,000,000.00, Landlord shall deliver (andeither return to Tenant from the security deposit being held by Landlord under this Article the difference between the amount of the security deposit being so held by Landlord and $4,000,000.00, or, if such security is in the issuer requiresform of a Letter of Credit, Landlord shall consent in writing to, and, at no cost to Landlord, (A) a corresponding accept from the Issuing Bank, an amendment to the L/C SecurityLetter of Credit which reduces the amount thereof to $4,000,000.00 but which does not otherwise amend or modify same, and (B) if requested by the Issuing Bank, execute and deliver to the Issuing Bank such instruments required by the Issuing Bank to effectuate such reduction; or accept from the Issuing Bank a replacement Letter of Credit in the amount of $4,000,000.00, but which is otherwise substantially identical to the Letter of Credit then on deposit with Landlord, Landlord agreeing that upon its receipt of said replacement Letter of Credit it shall return the Letter of Credit then on deposit with Landlord to Tenant or to the Issuing Bank. 6.09 Tenant may, at any time after the six (6) year period commencing on the Rent Commencement Date, request Landlord to reduce further the amount of the security deposit being held by Landlord under this Article to $3,000,000.00, in which event, provided that at the time of such request (a) this lease is in full force and effect, (b) Tenant has paid the fixed rent and additional rent for such period, (c) no Event of Default then exists, (d) no Event of Default occurred during the one (1) year period ending on the date that Tenant makes such request, and (e) the amount of security then being held by Landlord under this Article is at least $4,000,000.00, Landlord shall either return to Tenant from the security deposit being held by Landlord under this Article the difference between the amount of the security deposit being so held by Landlord and $3,000,000.00, or, if such security is in the form of a Letter of Credit, Landlord shall consent in writing to, and, at no cost to Landlord, (A) accept from the Issuing Bank, an amendment to the Letter of Credit which reduces the amount thereof to $3,000,000.00 but which does not otherwise amend or modify same, and (B) if requested by the Issuing Bank, execute and deliver to the Issuing Bank such instruments required by the Issuing Bank to effectuate such reduction; or accept from the Issuing Bank a replacement Letter of Credit in the amount of $3,000,000.00, but which is otherwise substantially identical to the Letter of Credit then on deposit with Landlord, Landlord agreeing that upon its receipt of said replacement Letter of Credit it shall return the Letter of Credit then on deposit with Landlord to Tenant or to the Issuing Bank. 6.10 Tenant may, at any time after the seven (7) year period commencing on the Rent Commencement Date, request Landlord to reduce further the amount of the security deposit being held by Landlord under this Article to $2,000,000.00, in which event, provided that at the time of such request (a) this lease is in full force and effect, (b) Tenant has paid the fixed rent and additional rent for such period, (c) no Event of Default then exists, (d) no Event of Default occurred during the one (1) year period ending on the date that Tenant makes such request, and (e) the amount of security then being held by Landlord under this Article is at least $3,000,000.00, Landlord shall either return to Tenant from the security deposit being held by Landlord under this Article the difference between the amount of the security deposit being so held by Landlord and $2,000,000.00, or, if such security is in the form of a Letter of Credit, Landlord shall consent in writing to, and, at no cost to Landlord, (A) accept from t

Appears in 1 contract

Sources: Lease Agreement (About Com Inc)

Security Deposit. 10.1 Tenant shall deposit with Landlord within five (5) days Prior to ▇▇▇▇▇▇'s occupancy of the Execution Date Premises, Lessee shall pay to Lessor a security deposit in the amount set forth in Section 2.8 sum equal to four (the “Security Deposit”), which Security Deposit shall be held by Landlord 4) months' rent as security for for, and to be returned to Lessee only after, the full, prompt and faithful performance by Tenant Lessee of all of the terms, covenants covenants, and conditions herein provided to be kept and observed by ▇▇▇▇▇▇; provided. however, that the security deposit shall be increased to a sum equal to six (6) months if at any time during the term of the Lease the average balance in Lessee's bank account for any month is less than $2 million. Prior to occupancy and within ten (10) days after each calendar month during the term of this Lease, Lessee shall deliver to Lessor a copy of Lessee's bank statement for the preceding month. If, from time to time during the term of the Lease, the Security Deposit is increased to six months' rent and the average balance in ▇▇▇▇▇▇'s bank account subsequently exceeds $2 million, the excess security deposit shall be applied to rent next falling due. Lessor may pursue any remedy or combination of remedies under this Lease without first resorting to or exhausting the security or any of it. In the event of the failure of Lessee to keep and perform any of the terms, covenants, and conditions of this Lease to be kept and performed by Tenant during ▇▇▇▇▇▇, then Lessor at its option may appropriate and apply said entire deposit, or so much thereof as may be necessary, to compensate the period commencing Lessor for all loss or damage sustained or suffered by Lessor due to such breach on the Execution Date and ending upon the expiration or termination part of this LeaseLessee. If Tenant defaults with respect to any provision of this LeaseThe entire deposit, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit portion thereof, may be appropriated and applied by Lessor for the payment of any Rent overdue rent or any other sums due and payable to Lessor by ▇▇▇▇▇▇ hereunder, and ▇▇▇▇▇▇ shall, upon the written demand of Lessor, thereafter forthwith remit to Lessor a sufficient sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore said security to the Security Deposit to its required amountoriginal sum deposited, and Tenant’s ▇▇▇▇▇▇'s failure to do so within five (5) days after receipt of such demand shall be constitute a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Office Lease (Ants Software Com Inc)

Security Deposit. 10.1 Upon execution of this Lease, Tenant shall deposit with Landlord the sum of $23,326.00, hereinafter referred to as "the Security Deposit," to secure the faithful performance by Tenant of each term, covenant, and condition of this Lease. If Tenant shall at any time fail to make any payment or fail to keep or perform any term, covenant, and condition on its part to be made or performed or kept under this Lease, Landlord may, but shall not be obligated to and without waiving or releasing Tenant from any obligation under this Lease, use, apply or retain the whole or any part of the Security Deposit (i) to the extent of any sum due to Landlord; or (ii) to make any required payment on Tenant's behalf; or (iii) to compensate Landlord for any loss, damage, attorneys' fees, or expense sustained by Landlord due to Tenant's default. In such event, Tenant shall, within five (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”)written demand by Landlord, which Security Deposit shall be held by remit to Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient funds to restore the Security Deposit to its required amount, and original sum; Tenant’s 's failure to do so shall be a material breach of this Lease. The provisions of this Article 10 Landlord shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, not be required to keep the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenantseparate from its general funds, and thereupon Landlord Tenant shall not be discharged from any further liability with respect entitled to interest on such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Should Tenant shall fully comply with all of the terms, covenants, and faithfully perform every provision conditions of this Lease to be performed and at the end of the term of this Lease leave the Premises in the condition required by itthis Lease, then the Security Deposit, or less any balance thereofsums owing to Landlord, shall be returned to Tenant (or, at Landlord’s 's option, to the last assignee of Tenant’s interest 's interests hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, Lease and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount vacancy of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated Premises by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extensionTenant. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease (Labtec Inc /Ma)

Security Deposit. 10.1 Tenant shall deposit with Landlord within five (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 Article 1 (the “"Security Deposit"), which upon Tenant's execution and submission of this Lease. The Security Deposit shall be held by Landlord serve as security for the prompt, full and faithful performance by Tenant of all of the terms, covenants terms and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination provisions of this Lease. If Tenant defaults with respect commits a Default, or owes any amounts to any provision Landlord upon the expiration or earlier termination of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, use or apply or retain all the whole or any part of the Security Deposit for the payment of any Rent Tenant's obligations hereunder. The use or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion application of the Security Deposit or any portion thereof shall not prevent Landlord from exercising any other right or remedy provided hereunder or under any Law and shall not be construed as liquidated damages. In the event the Security Deposit is so used reduced by such use or appliedapplication, then Tenant shall, shall deposit with Landlord within ten (10) days following demand thereforafter notice, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the full amount of the Security Deposit Deposit. Landlord shall not be required to its required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, keep the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of separate from Landlord’s 's general funds or pay interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then on the Security Deposit, or any balance thereof, . Any remaining portion of the Security Deposit shall be returned to Tenant (or, at Landlord’s 's option, to the last assignee of Tenant’s 's interest hereunderin this Lease) within thirty sixty (3060) days after Tenant (or such assignee) has vacated the expiration or earlier termination of this Lease. 10.5 The Security Deposit may Premises in accordance with Article 23. If the Premises shall be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may expanded at any time, except during Defaultor if the Term shall be extended at an increased rate of Rent, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord Deposit shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days)thereupon be proportionately increased. Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) not assign, pledge or otherwise transfer any interest in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit except as part of an assignment of this Lease approved by Landlord previously held. (c) Landlord may draw upon the L/C Securityunder Article 13, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails attempt to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Depositnull and void. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Office Lease (Ydi Wireless Inc)

Security Deposit. 10.1 11.1. Tenant shall deposit with Landlord within five (5) days of Business Days after the Execution Date a security deposit in the amount sum set forth in Section 2.8 2.6 (the “Security Deposit”), which Security Deposit sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this LeaseTerm. If Tenant defaults Defaults (as defined below) with respect to any provision of this Lease, including, but not limited to, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following written demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 11.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 11.4. If Tenant shall fully and faithfully perform every provision is not in default at the end of thirty (30) days following the expiration or earlier termination of this Lease to be performed by itLease, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 11.5. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 11.6. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Defaultwhen Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows.: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the TermTerm and until the date that is three (3) months after the then-current Term Expiration Date, a letter of credit in the form of Exhibit H E issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at Landlord may require the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from to be re-issued by a different issuer at any time to time as during the Term if Landlord reasonably requires believes that the issuing bank of the L/C Security is or may soon become insolvent; provided, however, Landlord shall return the existing L/C Security to the existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to Landlord (not without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to exceed 30 daysLandlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease (Omega Therapeutics, Inc.)

Security Deposit. 10.1 Landlord and Tenant acknowledge that Landlord has in its possession a security deposit in an amount equal to Fifty-Seven Thousand Dollars ($57,000) as security for performance of all the obligations of Tenant under this Lease, including, without limitation, the payment of all rent and other charges due Landlord under this Lease. In addition to the rights and remedies of Landlord set forth elsewhere in this Lease or otherwise available to Landlord under applicable law, in the event of any default by Tenant under this Lease that remains uncured after written notice and the passing of all applicable cure periods, Landlord shall be entitled to apply said deposit to the obligations of Tenant under this Lease or shall be entitled to expend said security deposit toward the out of pocket costs and expenses incurred by Landlord in connection with remedying any such default by Tenant capable of being remedied by the expenditure of money. Should Landlord so pay or apply said deposit, Tenant shall deposit with Landlord within five (5) business days of its receipt of Landlord’s written demand, deposit such additional sums with Landlord as may be necessary to restore said deposit to Fifty-Seven Thousand Dollars ($57,000). At the Execution Date a security deposit end of the Lease term, provided Tenant is not then in default according to the amount terms and provisions of 3 2.1 Section 22 of the Prior Lease. The Prior Lease is amended by deleting Section 22 in its entirety and inserting in its place and stead the following: “If Tenant shall hold over after expiration of the term of this Lease for any cause, Tenant shall be liable for one and one-half times the base rent payable hereunder for the first three (3) months following the end of the Lease term, and double the base rent payable hereunder for the remainder of any such holdover period and shall otherwise be upon the applicable terms and conditions set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease Amendment (Beyond Meat, Inc.)

Security Deposit. 10.1 11.1. Tenant shall deposit with Landlord within five Landlord, on or before the date that is fourteen (514) days of after the Execution Date a security deposit in Date, the amount sum set forth in Section 2.8 2.6 (the “Security Deposit”), which Security Deposit sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of Tenant’s obligations under this Lease. If Tenant defaults Defaults (as defined below) with respect to any provision of this Lease, including, but not limited to, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. TENANT HEREBY WAIVES THE REQUIREMENTS OF SECTION 1950.7 OF THE CALIFORNIA CIVIL CODE, AS THE SAME MAY BE AMENDED FROM TIME TO TIME. 10.2 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 11.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 11.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 11.5. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 11.6. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Defaultwhen Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows.: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the TermTerm and until the date that is four (4) months after the then-current Term Expiration Date, a letter of credit in the form of Exhibit H E issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. Landlord may require the L/C Security to be re-issued by a different issuer at any time during the Term if Landlord reasonably believes that the issuing bank of the L/C Security is or may soon become insolvent; provided, however, Landlord shall return the existing L/C Security to the existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to Landlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: then (i) Landlord shall with reasonable diligence complete any necessary calculations; and , (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires and (iii) in such extended period, Landlord shall not unreasonably refuse to exceed 30 days)consent to an appropriate reduction of the L/C Security. Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel, but not to exceed $2,500 in any one instance) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease (Unity Biotechnology, Inc.)

Security Deposit. 10.1 Concurrently with ▇▇▇▇▇▇’s execution and delivery of this Lease to Landlord, Tenant shall deposit with Landlord within five (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 equal to Four Hundred Seventy-Five Thousand and No/100 Dollars (the $475,000.00) (“Security Deposit”), which . The Security Deposit shall be held by Landlord as security for the full and faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this LeaseTerm. If Tenant defaults with respect to any provision of its obligations under this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Base Rent, Additional Rent or any other sum in default, or to compensate Landlord for the payment of any other amount, loss or damage that which Landlord may spend, incur or suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following after demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. Landlord shall not be required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, keep the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenantseparate from its general funds, and thereupon Landlord Tenant shall not be discharged from any further liability with respect entitled to such depositinterest on the Security Deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, Deposit or any balance thereof, thereof shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after following the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of provided that Landlord may retain the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of Deposit until such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). any amount due from Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (accordance with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstanceshas been determined and paid in full. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers sells its interest in the PremisesProperty during the Term and if Landlord deposits with or credits to the purchaser the Security Deposit (or balance thereof), then Tenant shall at Tenant’s expensethen, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requiresupon such sale, Landlord shall consent to) an amendment be discharged from any further liability with respect to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C SecurityDeposit.

Appears in 1 contract

Sources: Lease Agreement

Security Deposit. 10.1 Concurrently with the execution of this Lease, Tenant shall deposit with pay to Landlord within five (5) days the sum of $6,360, of which amount $2,120 shall be applied by Landlord as the base rent for the first calendar month of the Execution Date a security deposit in Lease term; the remaining $4,240 such amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants covenants, conditions and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination agreements of this Lease, Landlord shall not be required to separate such security from Landlord's general funds. If In the event Tenant defaults with respect to should default in any provision of this Leasesuch terms, covenants, conditions, provisions or agreements, including, but not limited to, any provision relating to the payment of Rentrent, then Landlord may (but shall not be required to) use, apply or retain all the whole or any part of the Security Deposit security required for the payment of any Rent rent or any other sum in default, or to compensate expended by Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s 's default. If Tenant, within five (5) days after written demand by Landlord, shall replenish the security or any portion of the Security Deposit is thereof so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient applied by Landlord; Tenant's failure to restore the Security Deposit to its required amount, and Tenant’s failure to do so such security shall be constitute a material breach of this Lease. The If Tenant shall faithfully comply with all terms, covenants, conditions, provisions and agreements of this Article 10 Lease, any balance of the security deposit then due shall survive the expiration or earlier be returned within fourteen (14) days after termination of this Lease. 10.2 In the event Lease but only after delivery of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment entire possession of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after performance by Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Depositall obligations required hereunder. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant sale of the wrongfully drawn sumsPremises, Building or land upon which the same are located or of a sale of Landlord's interest in this Lease, Landlord shall have the right to transfer the security deposit to its transferee, and Landlord shall upon request confirm in writing thereupon be released by Tenant from all liability with regard thereto, Tenant looking solely to the issuer new landlord for the return of said security. Tenant shall not assign or encumber its contingent rights in the security deposit, and neither Landlord nor its successors or assigns shall be bound by any such assignment or encumbrance. In the event of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in termination of any ground or underlying lease or foreclosure of any mortgage or trust deed now or hereafter affecting the Premises, then Building or land upon which the same are located, Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment only look to the L/C Security naming Landlord’s grantee as substitute beneficiary. If new landlord for return of the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Securitysecurity deposit.

Appears in 1 contract

Sources: Office Lease (Globalbot Corp)

Security Deposit. 10.1 Tenant The Contractor shall deposit with Landlord deliver to the City within five (5) business days after execution of this Contract, as a security deposit, a sum equal to the amount of the Execution Date a Contractor’s deductible under the commercial general liability insurance required of the Contractor under this Contract. Said security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord the City as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord deductible sums payable by the Contractor where a payment is made by the insurer under the Contractor’s commercial general liability insurance. The City may (but shall not be required to) use, apply or retain all or any part of the Security Deposit this security deposit for the payment of damages due to any Rent person or any other sum in defaultentity under the Contractor’s commercial general liability insurance where the Contractor fails, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s defaultreason, to make such payment. If any portion of the Security Deposit said security deposit is so used or applied, then Tenant shallthe Contractor, within ten seven (107) calendars days following demand thereforafter the date of notice thereof, increase shall deliver to the amount of City additional cash in the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit security deposit to its required amount, and Tenant’s failure to do so shall be a material breach of this Leasethe amount specified herein. The provisions of this Article 10 City shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenantnot be required to keep such security deposit separate from its general funds. The Contractor shall not be entitled to interest on such deposit, the Security Deposit shall be deemed to but interest earned may be applied first to by the payment of Rent and other charges due Landlord for all periods prior to the filing City as if it were a portion of such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such security deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant the Contractor shall fully and faithfully perform every provision of this Lease to be performed by itContract, then the Security Deposit, security deposit or any balance thereof, there of after deduction by the City hereunder shall be returned to Tenant the Contractor within forty-five (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (3045) days after the expiration or earlier termination of this Lease. 10.5 Contract. The Security Deposit may payment to, withdrawal of, or use or application by the City of any portion of such security deposit shall not be in contested by the form Contractor at the time of cashthe City’s taking such action; provided, that nothing herein shall prejudice the Contractor’s right to demand through arbitration or litigation the return of such portion. The Contractor waives prior notice and opportunity for a letter hearing on any use, application, or retention by the City of credit such security deposit or any other security instrument acceptable portion hereof pursuant to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as followsthis subsection. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Towing Services Agreement

Security Deposit. 10.1 (a) Upon execution of this Lease, the Tenant shall deposit with the Landlord within five a cash deposit (5the "Security Deposit") days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which of $12,000.00. The Security Deposit shall be held by Landlord as security the Landlord, without interest due to the Tenant, for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision term of this Lease, includingand until all of the Tenant's monetary obligations under this Lease have been paid in full and Tenant has performed all of its obligations under this Lease. (b) If, but not limited toat any time during the term of this Lease, any provision relating to the payment of Monthly Rent, then Additional Rent or other cost is not paid by Tenant when due, or if the Tenant fails to perform any of its obligations under this Lease, the Landlord may (but shall not be required to) usemay, at its option, apply or retain all or any part of the Security Deposit for to (1) the payment of any such Monthly Rent, Additional Rent or any other sum in defaultcost, or to compensate and/or (2) reimburse the Landlord for any other loss or damage that sustained as a result of the Tenant's failure to perform its obligations, and/or (3) reimburse the Landlord may suffer for the expenses incurred in performing obligations which were the responsibility of the Tenant. (c) If the Security Deposit, or any part thereof, is applied by reason the Landlord as provided in Section 5(b), upon written demand by the Landlord, the Tenant shall pay to the Landlord forthwith an amount equal to the amount necessary to restore the Security Deposit to the original amount set forth in Section 5(a). At the termination of this Lease, if all the Tenant’s default. If 's monetary obligations have been paid in full and Tenant has performed all of its obligations under this Lease, the Landlord shall return to the Tenant the Security Deposit or any lesser amount remaining after application of all or any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord as provided in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this LeaseSection 5(b). 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease Agreement (Insmed Inc)

Security Deposit. 10.1 Prior to occupancy of the premises, Tenant shall deposit with Landlord within five (5) days Owner/Agent the SECURITY DEPOSIT, the primary function of which is to secure the performance of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”), which Security Deposit shall be held by Landlord as security Rental Contract for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all premises or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amountthereof, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant deposit shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Depositconstitute pre-paid rent. In the event of a wrongful drawsale of the premises and/or change of management thereof, Tenant hereby agrees custody of the parties security deposit is transferred to the succeeding Owner/Agent. Upon such transfer, ▇▇▇▇▇▇ Management, Inc. shall cooperate be released from any and all liability for the security deposit. Agent may, but need not, apply all or portions of the Security Deposit to allow satisfy any defaults by Tenant. After expiration of this Rental Contract and any extension thereof, if Tenant has completely performed the Rental Contract obligations, then the unused portion of the security deposit less any move-out charges (if any) and utility bills, shall be refunded within sixty (60) days from the termination of this Lease, as defined in paragraph 19, “TERMINATION”. Tenant acknowledges and consents to post replacement Lthe fact that the security deposit is being held in an interest bearing account and that all interest income from such accounts shall be retained by ▇▇▇▇▇▇ Management, Inc. for purposes of offsetting expenses associated with maintenance or management of these accounts. Tenant will be responsible for providing Owner/C Security simultaneously Agent with the address to which the security deposit and any accounting for it will be sent, in writing. Tenant understands and agrees that the security deposit is made jointly as one deposit, even where there is more than one Tenant, and the entire amount shall be maintained by Owner/Agent until the Term, including any extensions, has ended, and the property has been returned to the Owner/Agent in the condition required by this Rental Contract. No partial return to Tenant of any portion of the wrongfully drawn sums, and Landlord shall upon request confirm in writing security deposit will be made to the issuer of the L/C Security that Landlord’s draw was erroneousany departing Tenant. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Rental Contract

Security Deposit. 10.1 Tenant shall deposit Lessee has deposited with Landlord within five Lessor on the date hereof SevenThousand One Hundred fifty eight and No/100 dollars (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”$7,158.00), which Security Deposit . Said sum shall be held by Landlord Lessor as security for the faithful performance by Tenant Lessee of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant Lessee during the period commencing on the Execution Date and ending upon the expiration or termination of this Leaseentire Term hereof. If Tenant Lessee defaults with respect to any provision of this Lease, including, but not limited to, any provision the provisions relating to the payment of RentRent or other charges or sums due under this Lease, then Landlord Lessor may (but shall not be required to) use, apply or retain all or any part of the Security Deposit security deposit for the payment of any Rent or other charges or sums due under this Lease or any other sum in default, or for the payment of any amount which Lessor may spend or become obligated to spend by reason of Lessee's default, or to compensate Landlord Lessor for any other loss loss, damage, cost or damage that Landlord expense (including attorneys' fees) which Lessor may suffer or incur by reason of Tenant’s Lessee's default. If any portion of the Security Deposit said security deposit is so used or applied, then Tenant Lessee shall, within ten five (105) days following after written demand therefor, increase the amount of the L/C Security deposit a certified or deposit cash cashier's check with Landlord Lessor in an amount sufficient to restore the Security Deposit security deposit to its required amount, original amount and Tenant’s Lessee's failure to do so shall be a material breach of default under this Lease. The provisions of this Article 10 Lessor shall survive not be required to keep the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit security deposit separate from its general funds and Lessee shall not be deemed entitled to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to on such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant Lessee shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, security deposit or any balance thereof, thereof after deduction hereunder by Lessor shall be returned to Tenant Lessee (or, at Landlord’s Lessor's option, to the last assignee of Tenant’s Lessee's interest hereunder) within thirty (30) days after following expiration of the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be Lease Term; provided, that in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (event this Lease shall be terminated upon the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount default of the Security DepositLessee, with an initial term the security deposit shall be retained by Lessor and all of at least one year. If, at Lessee's interest therein shall terminate and the Term Expiration Date, security deposit any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place portion of the entire Security Deposit, Landlord shall remit Premises to Tenant be occupied or used in such a manner or for any cash Security Deposit Landlord previously held. (c) Landlord may draw purpose which would increase the cost of insurance coverage upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to building or the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Securitycontents thereof.

Appears in 1 contract

Sources: Industrial Lease (Rolltech Inc)

Security Deposit. 10.1 Tenant shall deposit the Security Deposit with Landlord within five (5) days of the Execution Date a security deposit in the amount set forth amounts and at such times as specified in Section 2.8 (the “Security Deposit”1.1(o), which Security Deposit and it shall be a Default under this Lease for Tenant to fail to make such timely payments. Said sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration not as an advance rental deposit or termination as a measure of this LeaseLandlord’s damage in case of Tenant’s default. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or use any part of the Security Deposit for the payment of any Rent rent or any other sum in default, or for the payment of any amount which Landlord may spend or become obligated to spend by reason of Tenant’s default, or to compensate Landlord for any other loss or damage that which Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or appliedused, then Tenant shall, shall within ten five (105) business days following after written demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, original amount and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 Except to such extent, if any, as shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenantbe required by law, Landlord shall not be required to keep the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenantseparate from its general funds, and thereupon Landlord Tenant shall not be discharged from any further liability with respect entitled to interest on such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, Deposit or any balance thereof, thereof shall be returned to Tenant within sixty (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (3060) days after the expiration or earlier termination of this the Lease. 10.5 The Security Deposit may be in . Notwithstanding the form foregoing, provided that there has been no prior Default (beyond any applicable notice and cure period therefor) upon written request by Tenant to Landlord, effective as of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the first day of the twenty-fourth (24th) Month of the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory Security Deposit will be reduced to Landlord, in $801,557; (b) the amount first day of the thirty-sixth (36th) Month of the Term, the Security DepositDeposit will be reduced to $667,964; (c) the first day of the forty-eighth (48th) Month of the Term, with an initial term the Security Deposit will be reduced to $534,371; (d) the first day of at least one year. Ifthe sixtieth (60th) Month of the Term, at the Term Expiration DateSecurity Deposit will be reduced to $400,778; (e) the first day of the seventy-second (72nd), any Rent remains uncalculated or unpaidMonth of the Term, then: (i) Landlord shall with reasonable diligence complete any necessary calculationsthe Security Deposit will be reduced to $267,185; and (iif) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place first day of the entire Security Depositeighty-fourth (84th) Month of the Term, Landlord shall remit to Tenant any cash the Security Deposit Landlord previously heldwill be reduced to $133,592. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Office Lease (Hippo Holdings Inc.)

Security Deposit. 10.1 11.1. Tenant shall deposit with Landlord within five on or before (5a) days of the Execution Date a security deposit in Date, the amount Initial Security Deposit set forth in Section 2.8 2.6 and (b) thirty (30) days following the closing of Tenant’s Series B financing or other financing in which no less than Ten Million and 00/100 Dollars ($10,000,000.00) is raised, but in no event later than March 31, 2013, the Additional Security Deposit set forth in Section 2.6 (collectively, (a) and (b), the “Security Deposit”), which Security Deposit sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of Tenant’s obligations under this Lease. If Tenant defaults Defaults with respect to any provision of this Lease, including, but not limited to, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 11.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 11.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 11.5. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 11.6. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Defaultwhen Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows.: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the TermTerm and until the date that is sixty (60) days after the then-current Term Expiration Date, a letter of credit in the form of Exhibit H E issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. Landlord agrees that, as of the Execution Date, Comercia N.A. is an acceptable issuer of the L/C Security. Landlord may require the L/C Security to be re-issued by a different issuer at any time during the Term if Landlord reasonably believes that the issuing bank of the L/C Security is or may soon become insolvent; provided, however, Landlord shall return the existing L/C Security to the existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to Landlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires requires; and (iii) in such extended period, Landlord shall not unreasonably refuse to exceed 30 days)consent to an appropriate reduction of the L/C Security. Except with respect to the Initial Security Deposit and the Additional Security Deposit delivered at the times set forth in Section 11.1, Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Lease (Organovo Holdings, Inc.)

Security Deposit. 10.1 Tenant shall deposit Lessee has deposited with Landlord within five Lessor on the date hereof Fourteen Thousand One Hundred Seventy-Six and No/100 dollars (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”$14,176.00), which Security Deposit . Said sum shall be held by Landlord Lessor as security for the faithful performance by Tenant Lessee of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant Lessee during the period commencing on the Execution Date and ending upon the expiration or termination of this Leaseentire Term hereof. If Tenant Lessee defaults with respect to any provision of this Lease, including, but not limited to, any provision the provisions relating to the payment of RentRent or other charges or sums due under this Lease, then Landlord Lessor may (but shall not be required to) use, apply or retain all or any part of the Security Deposit security deposit for the payment of any Rent or other charges or sums due under this Lease or any other sum in default, or for the payment of any amount which Lessor may spend or become obligated to spend by reason of Lessee's default, or to compensate Landlord Lessor for any other loss loss, damage, cost or damage that Landlord expense (including reasonable attorneys' fees) which Lessor may suffer or incur by reason of Tenant’s Lessee's default. If any portion of the Security Deposit said security deposit is so used or applied, then Tenant Lessee shall, within ten five (105) days following after written demand therefor, increase the amount of the L/C Security deposit a certified or deposit cash cashier's check with Landlord Lessor in an amount sufficient to restore the Security Deposit security deposit to its required amount, original amount and Tenant’s Lessee's failure to do so shall be a material breach of default under this Lease. The provisions of this Article 10 Lessor shall survive not be required to keep the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit security deposit separate from its general funds and Lessee shall not be deemed entitled to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to on such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant Lessee shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, security deposit or any balance thereof, thereof after deduction hereunder by Lessor shall be returned to Tenant Lessee (or, at Landlord’s Lessor's option, to the last assignee of Tenant’s Lessee's interest hereunder) within thirty (30) days after following expiration of the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be Lease Term; provided, that in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (event this Lease shall be terminated upon the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount default of the Security DepositLessee, with an initial term the security deposit shall be retained by Lessor and all of at least one year. If, at Lessee's interest therein shall terminate and the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend security deposit will be applied against the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated damages suffered by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place Lessor by reason of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security DepositLessee's default. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant termination of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its Lessor's interest in the Premisesthis Lease, then Tenant Lessor shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment transfer said deposit to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is Lessor's successor in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Securityinterest.

Appears in 1 contract

Sources: Industrial Lease (Icos Corp / De)

Security Deposit. 10.1 Tenant Concurrently with Tenant's execution of this Le▇▇▇, ▇enant shall deposit with Landlord within five the sum of NONE (5) days of the Execution Date a security deposit in the amount set forth in Section 2.8 (the “Security Deposit”$0.00), which Security Deposit . Said sum shall be held by Landlord as security a Security Deposit for the faithful performance by Tenant of all of the terms, covenants covenants, and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Leaseterm hereof. If Tenant ▇▇ ▇enant defaults with respect to any provision of this Lease, including, including but not limited to, any provision to the provisions relating to the payment of Rentrent and any of the monetary sums due herewith, then Landlord may (but shall not be required to) use, apply or retain all or any part of the this Security Deposit for the payment of any Rent or any other sum in default, amount which Landlord may spend by reason of Tenant's default or to compensate Landlord for any other loss or damage that which Landlord may suffer by reason of Tenant’s 's default. If any portion of the Security said Deposit is so used or applied, then Tenant shall, within ten (10) days following after written demand therefortherefore, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required original amount, and ; Tenant’s 's failure to do so shall be a material breach of this Lease. The provisions of Landlord shall not be required to keep this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenantseparate from its general funds, and thereupon Landlord Tenant shall not be discharged from any further liability with respect entitled to interest on such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, Deposit or any balance thereof, thereof shall be returned to Tenant (or, at Landlord’s 's option, to the last assignee of Tenant’s 's interest hereunder) within thirty (30) days after at the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial Lease term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending vacated the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C SecurityPremis▇▇. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In ▇▇ the event of a wrongful drawtermination of Landlord's interest in this L▇▇▇▇, the parties ▇▇ndlord shall cooperate transfer said ▇▇▇▇▇▇▇ to allow Landlord's successor in inter▇▇▇ ▇▇▇▇eupon Tenant agrees to post replacement L/C Security simultaneously with release Land▇▇▇▇ ▇rom liability for the return to Tenant of such Deposit or the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneousaccounting therefore. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Appears in 1 contract

Sources: Office Building Lease (North Valley Bancorp)

Security Deposit. 10.1 On December 2, 2013, Tenant shall deposit with Landlord within five (5) days cause to be paid by ACH to Landlord, in lawful money of the Execution Date a security deposit United States of America to such place as Landlord may designate in writing, the amount of $13,050.00, being Basic Monthly Rent for the first month of the Initial Term in the amount set forth of $4,350.00, as the same may be prorated, and the amount of $4,350.00 for the Basic Monthly Rent for the last month of the Initial Term, and an additional amount of $4,350.00 as security as specified in Section 2.8 Paragraph 7 of the Basic Lease Provisions (collectively, the “Security Deposit”). Upon Tenant’s exercise of its Termination right provided in paragraph 10 of the Basic Lease Provisions above, which the Security Deposit shall be returned to the Tenant in the event Tenant fails to obtain a license from the Commonwealth of Massachusetts to operate a marijuana dispensary following its Phase 2 application on November 21, 2013 or obtain any permits necessary to operate such dispensary from the City of ▇▇▇▇▇▇. The Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of under this Lease, includingfollowing any applicable grace and cure periods, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that which Landlord may suffer by reason of Tenant’s defaultthereby. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following after demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its the full amount thereof. Landlord shall not be required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, maintain the Security Deposit 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. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged separate from any further liability with respect to such depositits general accounts. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the The Security Deposit, or any balance thereofthereof that has not theretofore been applied by Landlord, shall be returned to Tenant (or, at Landlord’s option, applied to the Basic Monthly Rent for the last assignee month of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is not applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Depositapplicable. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant assignment of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requiresthis Lease, Landlord shall consent to) an amendment transfer the Security Deposit to Landlord’s successor in interest whereupon Landlord shall be released from all liability for the return or accounting therefor. No trust relationship is created herein between Landlord and Tenant with respect to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C SecurityDeposit.

Appears in 1 contract

Sources: Lease Agreement (Columbia Care Inc.)