Common use of Lease Deposit Clause in Contracts

Lease Deposit. Tenant shall deposit with Landlord on the date ------------- Tenant executes and delivers this Lease to Landlord the cash sums set forth in the Schedule for both Prepaid Rent and Security Deposit, including any Letter of Credit (collectively, the "Lease Deposit"). Notwithstanding the foregoing, ------------- Landlord agrees that a portion of the Security Deposit not to exceed $422,393.00 may be in the form of a "Letter of Credit", provided that the Letter of Credit ---------------- shall (i) be in the form of an unconditional and irrevocable letter of credit which is acceptable to Landlord, (ii) name Landlord as beneficiary, (iii) expressly allow Landlord to draw upon it at any time from time to time by delivering to the issuer written certification that Landlord is entitled to draw thereunder as a result of Tenant's default hereunder. (iv) be drawable on an FDIC-insured financial institution satisfactory to Landlord. and (v) be redeemable in the state of California in one of the nine counties comprising the San Francisco-Oakland-San Xxxx (the "Bay Area"). As of the Commencement Date, -------- and at all times during the Term, the sum of the amount drawable under the Letter of Credit and the cash portion of the Security Deposit held by Landlord shall be equal or greater than the total amount of the Security Deposit as set forth in the Schedule (i.e., $509,037.80). If Tenant does not provide Landlord with a substitute Letter of Credit complying with all of the requirements hereof at least thirty (30) days before the stated expiration date of the current Letter of Credit, then Landlord shall have the right to draw upon the current Letter of Credit and hold the funds drawn as part of the Security Deposit. In the event Landlord notifies Tenant in writing that the bank which issued the Letter of Credit has become financially unacceptable (e.g., the bank is under investigation by governmental authorities, has filed bankruptcy or reorganization proceedings, or has closed two or more of its branches within the Bay Area), then Tenant shall have thirty (30) days to provide Landlord with a substitute Letter of Credit complying with all of the requirements hereof. The cash portion of the Security Deposit and the Letter of Credit are collectively referred to herein as the "Security Deposit". In the event Tenant initially pays ---------------- the entire Security Deposit to Landlord in cash, then Landlord agrees after its receives a Letter of Credit which satisfies the requirements set forth above to promptly refund to Tenant an amount equal to the lesser of: (i) the amount of the Letter of Credit, or (ii) $422,393.00.

Lease Deposit. A. Tenant shall deposit with Landlord on the date ------------- Tenant executes and delivers this Lease to Landlord the cash sums sum set forth in the Schedule for both Prepaid Rent and the Security Deposit. The Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all its obligations under this Lease. Tenant agrees that, including if Tenant fails to pay any Letter Rent, or otherwise defaults with respect to any provision of Credit this Lease, Landlord may (collectivelybut shall not be obligated to), the "Lease Deposit"). Notwithstanding the foregoingand without prejudice to any other remedy available to Landlord, ------------- Landlord agrees that a use, apply or retain all or any portion of the Security Deposit not for the payment of any Rent in default or for the payment of any other sum to exceed $422,393.00 which Landlord may be in the form of a "Letter of Credit", provided that the Letter of Credit ---------------- shall (i) be in the form of an unconditional and irrevocable letter of credit which is acceptable to Landlord, (ii) name Landlord as beneficiary, (iii) expressly allow Landlord to draw upon it at any time from time to time become obligated by delivering to the issuer written certification that Landlord is entitled to draw thereunder as a result reason of Tenant's default hereunder’s default, or to compensate Landlord for any loss or damage which Landlord may suffer thereby, including, without limitation, prospective damages and damages recoverable pursuant to California Civil Code Section 1951.2. (iv) be drawable on an FDIC-insured financial institution satisfactory to Tenant waives the provisions of California Civil Code Section 1950.7, and all other provisions of law now in force or that become in force after the date of execution of this Lease, that restrict the use or application of the Security Deposit by Landlord. and (v) be redeemable in the state of California in one of the nine counties comprising the San Francisco-Oakland-San Xxxx (the "Bay Area"). As of the Commencement Date, -------- and at If Landlord uses or applies all times during the Term, the sum of the amount drawable under the Letter of Credit and the cash or any portion of the Security Deposit held by as provided above, Tenant shall, within five (5) days after demand therefor, deposit cash with Landlord shall be equal or greater than the total in an amount of sufficient to restore the Security Deposit as set forth in to the Schedule (i.e.full amount thereof, $509,037.80)and Tenant’s failure to do so shall, at Landlord’s option, be a default under this Lease with no opportunity to cure. If Tenant does not provide Landlord with a substitute Letter of Credit complying with performs all of Tenant’s obligations hereunder, the requirements hereof Security Deposit, or so much thereof as has not theretofore been applied by Landlord, shall be returned to Tenant (or, at least Landlord’s option, to the last assignee, if any, of Tenant’s interest hereunder) within thirty (30) days before following the stated expiration date of the current Letter of CreditTerm and after Tenant has vacated the Premises; provided, then however, that if this Lease is terminated by Landlord pursuant to Section 13 above, or by Tenant in a bankruptcy proceeding pursuant to 11 U.S.C. §365, Landlord may retain the Security Deposit and apply the same against its damages recoverable pursuant to California Civil Code Section 1951.2. Landlord shall have the right not be deemed to draw upon the current Letter of Credit and hold the funds drawn as part of Security Deposit in trust nor be required to keep the Security Deposit separate from its general funds, and Tenant shall not be entitled to any interest on the Security Deposit. In The Security Deposit shall not be construed as an advance payment of Rent nor liquidated damages, and if Landlord’s claims hereunder exceed the event Landlord notifies Tenant in writing that the bank which issued the Letter of Credit has become financially unacceptable (e.g.Security Deposit, the bank is under investigation by governmental authorities, has filed bankruptcy or reorganization proceedings, or has closed two or more of its branches within the Bay Area), then Tenant shall have thirty (30) days to provide Landlord with a substitute Letter remain liable for the balance of Credit complying with all of the requirements hereof. The cash portion of the Security Deposit and the Letter of Credit are collectively referred to herein as the "Security Deposit". In the event Tenant initially pays ---------------- the entire Security Deposit to Landlord in cash, then Landlord agrees after its receives a Letter of Credit which satisfies the requirements set forth above to promptly refund to Tenant an amount equal to the lesser of: (i) the amount of the Letter of Credit, or (ii) $422,393.00such claims.

Lease Deposit. Tenant shall deposit with Landlord on the date ------------- Tenant executes and delivers this Lease to Landlord Landlord, the cash sums set forth in the Schedule for both Prepaid Rent and Security Deposit, including any Letter of Credit Deposit (collectively, the "Lease Deposit"). Notwithstanding The Prepaid Rent shall be applied by Landlord against the foregoingfirst full month's Base Rent payment obligation hereunder. The Security Deposit shall be held by Landlord as security for the performance of all of its obligations in the amount set forth on the Schedule. If Tenant is in default under this Lease more than two (2) times within any Lease Year, ------------- irrespective of whether such default is cured, then, without limiting Landlord's other rights or remedies available under this Lease, at law or in equity, the Security Deposit shall automatically be increased by an amount equal to three (3) times the original Security Deposit. If Tenant defaults under this Lease, Landlord agrees that a may apply all or any part of the Lease Deposit for the payment of any Rent or other sum in default, the repair of any damage to the Premises caused by Tenant or 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 which Landlord may suffer by reason of Tenant's default to the full extent permitted by law. Tenant hereby waives any restriction on the use or application of the Security Deposit by Landlord as set forth in California Civil Code Section 1950.7. To the extent any portion of the Security Deposit not is used, Tenant shall within five (5) days after demand from Landlord restore the Security Deposit to exceed $422,393.00 may be in the form of a "Letter of Credit", provided that the Letter of Credit ---------------- shall (i) be in the form of an unconditional its full amount. No trust relationship is created herein between Landlord and irrevocable letter of credit which is acceptable to Landlord, (ii) name Landlord as beneficiary, (iii) expressly allow Landlord to draw upon it at any time from time to time by delivering Tenant with respect to the issuer written certification that security deposit. Landlord is entitled may keep the Security Deposit in its general funds and shall not be required to draw thereunder as a result pay interest to Tenant on the deposit amount. If Tenant shall perform all of Tenant's default hereunder. (iv) be drawable on an FDIC-insured financial institution satisfactory its obligations under this Lease and return the Premises to Landlord. and (v) be redeemable in Landlord at the state end of California in one of the nine counties comprising the San Francisco-Oakland-San Xxxx (the "Bay Area"). As of the Commencement Date, -------- and at all times during the Term, the sum of the amount drawable under the Letter of Credit and the cash portion of the Security Deposit held by Landlord shall be equal or greater than the total amount of the Security Deposit as set forth in the Schedule (i.e., $509,037.80). If Tenant does not provide Landlord with a substitute Letter of Credit complying with return all of the requirements hereof at least remaining Security Deposit to Tenant within thirty (30) days before after the stated expiration date end of the current Letter Term provided, however, that Landlord may retain the Security Deposit as security for the payment of Creditany adjustment in rent or additional rent following an expiration or termination of the Lease, then and, upon such adjustment apply the retained Security Deposit against the amount due Landlord. The Security Deposit shall not serve as an advance payment of Rent or a measure of Landlord's damages for any default under this Lease. If Landlord transfers its interest in the Project or this Lease, Landlord may transfer the Security Deposit to its transferee. Upon such transfer, Landlord shall have no further obligation to return the Security Deposit to Tenant, and Tenant's right to draw upon the current Letter of Credit and hold the funds drawn as part of the Security Deposit. In the event Landlord notifies Tenant in writing that the bank which issued the Letter of Credit has become financially unacceptable (e.g., the bank is under investigation by governmental authorities, has filed bankruptcy or reorganization proceedings, or has closed two or more of its branches within the Bay Area), then Tenant shall have thirty (30) days to provide Landlord with a substitute Letter of Credit complying with all of the requirements hereof. The cash portion return of the Security Deposit and the Letter of Credit are collectively referred to herein as the "Security Deposit". In the event Tenant initially pays ---------------- the entire Security Deposit to Landlord in cash, then Landlord agrees after its receives a Letter of Credit which satisfies the requirements set forth above to promptly refund to Tenant an amount equal to the lesser of: (i) the amount of the Letter of Credit, or (ii) $422,393.00shall apply solely against Landlord's transferee.