Common use of Nature of Letter of Credit Clause in Contracts

Nature of Letter of Credit. Sublandlord and Subtenant (i) acknowledge and agree that in no event or circumstance shall the Letter of Credit or any renewal thereof or substitute therefor or any proceeds thereof be deemed to be or treated as a “security deposit” under any law applicable to security deposits in the commercial context, including, but not limited to, Section 1950.7 of the California Civil Code, as such Section now exists or as it may be hereafter amended or succeeded (the “Security Deposit Laws”), (ii) acknowledge and agree that the Letter of Credit (including any renewal thereof or substitute therefor or any proceeds thereof) is not intended to serve as a security deposit, and the Security Deposit Laws shall have no applicability or relevancy thereto, and (iii) waive any and all rights, duties and obligations that any such party may now, or in the future will, have relating to or arising from the Security Deposit Laws. Without limiting the generality of the foregoing, Subtenant hereby agrees that Sublandlord may claim those sums specified in Section 17.2 above and/or those sums reasonably necessary to compensate Sublandlord for any loss or damage caused by the acts or omissions of Subtenant or Subtenant's breach of this Sublease, including any damages Sublandlord suffers following termination of this Sublease, and/or to compensate Sublandlord for any and all damages arising out of, or incurred in connection with, the termination of this Sublease, including, without limitation, those specifically identified in Section 1951.2 of the California Civil Code.

Nature of Letter of Credit. Sublandlord and Subtenant (i) acknowledge and agree that in no event or circumstance shall the Letter of Credit or any renewal thereof or thereof, any substitute therefor or any proceeds thereof be deemed to be or treated as a “security deposit” under California Civil Code § 1950.7, as it may be amended or succeeded, or any other law applicable to security deposits in the commercial context, including, but not limited to, Section 1950.7 of the California Civil Code, as such Section now exists or as it may be hereafter amended or succeeded context (the “Security Deposit Laws”), ; (ii) acknowledge and agree that the Letter of Credit (including any renewal thereof or thereof, any substitute therefor or any proceeds thereof) is not intended to serve as a security deposit, deposit and shall not be subject to the Security Deposit Laws Laws; (iii) any unused proceeds shall have no applicability or relevancy thereto, constitute the property of Sublandlord and need not be segregated from Sublandlord’s other assets; and (iiiiv) waive any and all rights, duties and obligations that any such either party may nownow or, or in the future willfuture, will have relating to or arising from the Security Deposit Laws. Without limiting the generality of the foregoing, Subtenant hereby agrees waives the provisions of California Civil Code § 1950.7 and all other provisions of law, now or hereafter in effect, which (A) establish the time frame by which Sublandlord must refund a security deposit under a lease, and/or (B) provide that Sublandlord may claim from the security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Subtenant or to clean the Premises, it being agreed that Sublandlord may, in addition, claim those sums specified above in this Section 17.2 above 4.5 and/or those sums reasonably necessary to compensate Sublandlord for any loss or damage caused by Subtenant’s breach of this Sublease or the acts or omissions omission of Subtenant or Subtenant's breach any of this Subleaseits employees, agents, contractors or invitees, including any damages Sublandlord suffers following termination of this Sublease, and/or to compensate Sublandlord for any and all damages arising out of, or incurred in connection with, the termination of this Sublease, including, without limitation, those specifically identified in Section 1951.2 of the California Civil Code.

Nature of Letter of Credit. Sublandlord and Subtenant (i1) acknowledge and agree that in no event or circumstance shall the Letter of Credit or any renewal thereof or substitute therefor or any proceeds thereof be deemed to be or treated as a “security deposit” under any law applicable to security deposits in the commercial context, including, but not limited to, Section 1950.7 of the California Civil Code, as such Section now exists or as it may be hereafter amended or succeeded (the “Security Deposit Laws”), (ii2) acknowledge and agree that the Letter of Credit (including any renewal thereof or substitute therefor or any proceeds thereof) is not intended to serve as a security deposit, and the Security Deposit Laws shall have no applicability or relevancy thereto, and (iii3) waive any and all rights, duties and obligations that any such party may now, or in the future will, have relating to or arising from the Security Deposit Laws. Without limiting the generality of the foregoing, Subtenant hereby agrees that Sublandlord may claim those sums specified in Section 17.2 above and/or those sums reasonably necessary to compensate Sublandlord for any loss or damage caused by the acts or omissions of Subtenant or Subtenant's breach of this Sublease, including any damages Sublandlord suffers following termination of this Sublease, and/or to compensate Sublandlord for any and all damages arising out of, or incurred in connection with, the termination of this Sublease, including, without limitation, those specifically identified in Section 1951.2 of the California Civil Code.

Nature of Letter of Credit. Sublandlord Sublessor and Subtenant Sublessee (i1) acknowledge and agree that in no event or circumstance shall the Letter of Credit or any renewal thereof or thereof, any substitute therefor or any proceeds thereof (including the LC Proceeds Account) be deemed to be or treated as a “"security deposit” " under California Civil Code § 1950.7, as it may be amended or succeeded, or any law other Law applicable to security deposits in the commercial context, including, but not limited to, Section 1950.7 of the California Civil Code, as such Section now exists or as it may be hereafter amended or succeeded context (the “Security "Deposit Laws”"), ; (ii2) acknowledge and agree that the Letter of Credit (including any renewal thereof or thereof, any substitute therefor or any proceeds thereof) is not intended to serve as a security deposit, deposit and shall not be subject to the Security Deposit Laws shall have no applicability or relevancy thereto, Laws; and (iii3) waive any and all rights, duties and obligations that any such either party may nownow or, or in the future willfuture, will have relating to or arising from the Security Deposit Laws. Without limiting Sublessee hereby waives the generality provisions of California Civil Code § 1950.7 and all other provisions of applicable Law, now or hereafter in effect, which (4) establish the foregoingtime frame by which Sublessor must refund a security deposit under a lease, Subtenant hereby agrees and/or (5) provide that Sublandlord Sublessor may claim from the security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Sublessee or to clean the Premises, it being agreed that Sublessor may, in addition, claim those sums specified above in Section 17.2 above this Paragraph 5 and/or those sums reasonably necessary to compensate Sublandlord Sublessor for any loss or damage caused by the acts or omissions of Subtenant or SubtenantSublessee's breach of this SubleaseSublease or the acts or omission of Sublessee or any of Sublessee’s agents, employees or contractors, including any damages Sublandlord Sublessor suffers following termination of this Sublease, and/or to compensate Sublandlord for any and all damages arising out of, or incurred in connection with, the termination of this Sublease, including, without limitation, those specifically identified in Section 1951.2 of the California Civil Code.