Common use of Prepaid Rent and Security Deposit Clause in Contracts

Prepaid Rent and Security Deposit. A. The parties acknowledge that Landlord now holds the Security Deposit as security, to be applied pursuant to the provisions of the Lease Transaction Documents. Assignor releases all claims to that sum, and such sum shall be held by Landlord for the benefit of Assignee, subject to provisions of the Lease Transaction Documents. Assignor agrees to execute such documents as are reasonably requested by Assignee to implement the provisions of this Section 10A. Notwithstanding anything contained herein, if Landlord exercises its right to terminate the Lease as a result of this Assignment pursuant to Section 19 of the Lease, then to the extent the Landlord is obligated to return any part of the Security Deposit to the Tenant under the Lease, Assignor shall be entitled thereto. B. The parties acknowledge that Landlord now holds the sum of $363,387.50 as prepaid rent, for application against the Basic Rent for the first lease month of the term, as provided in Section 4(d) entitled "First Month's Rent" of the Lease. Assignor releases all claims to such prepaid rent, and such sum shall be held by Landlord for the benefit of Assignee, subject to the provisions of the Lease Transaction Documents. The release of such amount by Assignor for the benefit of Assignee is in consideration of the agreement of Assignee to enter into this Assignment, particularly with regard to the agreement of Assignee to assume all issues related to the status of the development of plans for the Shell Improvements and the Tenant Improvements and the consequences of all existing Tenant Caused Delay resulting from the actions of Assignor. C. At such time as the Security Deposit is fully disbursed to pay for Tenant Improvement Costs or to satisfy obligations of the Tenant under the Lease or is returned to Assignee pursuant to the provisions of the Lease, Assignee shall pay to Assignor an amount equal to the product of (i) $25 per square foot, times (ii) the area that the Premises is reduced by the exercise of Landlord's restaurant option pursuant to Section 58 of the Lease (expressed in square feet).

Prepaid Rent and Security Deposit. A. The parties acknowledge that On the execution and delivery of this Lease by Tenant, Tenant shall pay to Landlord now holds the Security Deposit as securitysum stated in Section 1.1(l), to be applied pursuant to the provisions first accruing monthly installments of Rent. On the Lease Transaction Documents. Assignor releases all claims date of this Lease, Tenant shall pay to that sum, and such Landlord the Security Deposit sum shall stated in Section 1.1(m) to be held by Landlord without interest as security for the benefit performance by Tenant of Assignee, subject to provisions of the Lease Transaction Documents. Assignor agrees to execute such documents as are reasonably requested by Assignee to implement the provisions of Tenant's covenants and obligations under this Section 10A. Notwithstanding anything contained herein, if Landlord exercises its right to terminate the Lease as a result of this Assignment pursuant to Section 19 of the Lease, then it being expressly understood that such Security Deposit is not an advance payment of Rent or a measure of Landlord's damages in case of default by Tenant. Landlord may commingle any such Security Deposit with such other funds as Landlord in its sole discretion may determine. Upon the occurrence of any event of default by Tenant, Landlord may, from time to time, without prejudice to any other remedy provided herein or provided by law, use such fund to the extent necessary to make good any arrearages of Rent and any other damage, injury, expense or liability caused to Landlord by such event of default. Following any such application of the Security Deposit, Tenant shall pay to Landlord is obligated on demand the amount so applied in order to return any part of restore the Security Deposit to the Tenant under the Lease, Assignor shall be entitled thereto. B. The parties acknowledge that Landlord now holds the sum of $363,387.50 as prepaid rent, for application against the Basic Rent for the first lease month of the term, as provided in Section 4(d) entitled "First Month's Rent" of the Leaseits original amount. Assignor releases all claims to such prepaid rent, and such sum shall be held by Landlord for the benefit of Assignee, subject to the provisions Upon expiration of the Lease Transaction Documents. The release term, if Tenant is not then in default hereunder, and if it is not necessary to repair any damage or injury to the Demised Premises caused by Tenant or any subtenant, concessionaire or licenses of Tenant (excepting reasonable wear and tear), any remaining balance of such amount by Assignor for the benefit of Assignee is in consideration of the agreement of Assignee to enter into this Assignment, particularly with regard to the agreement of Assignee to assume all issues related to the status of the development of plans for the Shell Improvements and the Tenant Improvements and the consequences of all existing Tenant Caused Delay resulting from the actions of Assignor. C. At such time as the Security Deposit is fully disbursed shall be returned by Landlord to pay for Tenant Improvement Costs or to satisfy obligations of the Tenant under the Lease or is returned to Assignee pursuant to the provisions of the Lease, Assignee shall pay to Assignor an amount equal to the product of (i) $25 per square foot, times (ii) the area that the Premises is reduced by the exercise of Landlord's restaurant option pursuant to Section 58 of the Lease (expressed in square feet)Tenant.

Prepaid Rent and Security Deposit. A. On the execution of this Lease Agreement by Lessee, Lessee shall be required to pay Lessor the sum of $141,949.44 (hereinafter referred to as "Prepaid Rent"), which sum shall be applied against the initial eighteen (18) month's Base Rental due hereunder. Lessee hereby agrees that said Prepaid Rent shall be paid as an inducement for Lessor to enter into this Lease Agreement with Lessee. The parties acknowledge total amount of Prepaid Rent in addition to the Prepaid Additional Construction Allowance described in Exhibit "F" Section 2. of this Lease Agreement is equivalent to the majority of Lessor's up front lease cost Lessor has incurred in conjunction with this Lease Agreement. In the event Lessee should default in, or fail to timely perform any of its obligations contained in this Lease Agreement, or breach any of the terms, covenants, conditions or agreements herein contained prior to the expiration of the eighteenth (18th) month of the Lease Term, Lessee hereby agrees that Landlord now holds the then unearned portion of said Prepaid Rent and Prepaid Additional Construction Allowance shall be retained by Lessor as a credit against any claims for damages Lessor may have against Lessee as described in Section 25. of this Lease Agreement. In addition, Lessee shall deposit, on the date hereof, the sum of $7,886.08 (the "Security Deposit") as security for Lessee's faithful performance of Lessee's obligations herein contained. If Lessee defaults in any manner (including the payment of any rents or other sums due hereunder) in the performance of Lessee's obligations herein contained, Lessor may use, apply or retain all or any portion of the Security Deposit for the payment of any rent or other sum in default or for the payment of any other sum or expense to which Lessee may become obligated by reason of such default, or to compensate Lessor for any loss or damage which Lessor may suffer thereby. Lessor and Lessee agree that the Security Deposit shall not be an advance payment of rent or other sums due hereunder, or a measure of Lessor's damages in case of Lessee's default. If Lessor shall use or apply any or all of the Security Deposit as securityherein provided, to be applied pursuant to Lessee shall, on demand, deposit with Lessor the provisions of the Lease Transaction Documents. Assignor releases all claims to that sum, and such sum shall be held by Landlord for the benefit of Assignee, subject to provisions of the Lease Transaction Documents. Assignor agrees to execute such documents as are reasonably requested by Assignee to implement the provisions of this Section 10A. Notwithstanding anything contained herein, if Landlord exercises its right to terminate the Lease as a result of this Assignment pursuant to Section 19 of the Lease, then to the extent the Landlord is obligated to return any part amount of the Security Deposit to so used or applied by Lessor so that Lessor shall have the Tenant under full Security Deposit on hand during the Lease, Assignor shall be entitled thereto. B. The parties acknowledge that Landlord now holds the sum entire term of $363,387.50 as prepaid rent, for application against the Basic Rent for the first lease month of the term, as provided in Section 4(d) entitled "First Month's Rent" of the this Lease. Assignor releases all claims Lessor shall not be required to such prepaid rent, and such sum shall be held by Landlord separately account for the benefit of Assignee, subject to the provisions of the Lease Transaction Documents. The release of such amount by Assignor for the benefit of Assignee is in consideration of the agreement of Assignee to enter into this Assignment, particularly with regard to the agreement of Assignee to assume all issues related to the status of the development of plans for the Shell Improvements and the Tenant Improvements and the consequences of all existing Tenant Caused Delay resulting from the actions of Assignor. C. At such time as the Security Deposit is fully disbursed nor to pay maintain an escrow or separate account therefor. If Lessee performs all of Lessee's obligations hereunder, the Security Deposit, or so much thereof as has not theretofore been applied by Lessor, shall be returned, without payment of interest or other increment for Tenant Improvement Costs or its use, to satisfy obligations Lessee (or, at Lessee's option, the last assignee, if any, of Lessee's interest hereunder) within sixty (60) days of the Tenant under the Lease or is returned to Assignee pursuant to the provisions expiration of the Leaseterm hereto, Assignee and after Lessee has vacated the Leased Premises. Lessor's right to so apply the Security Deposit shall pay to Assignor an amount equal to the product in no manner limit, impair or otherwise affect any of (i) $25 per square foot, times (ii) the area that the Premises is reduced by the exercise of LandlordLessor's restaurant option pursuant to Section 58 of the Lease (expressed in square feet)remedies set forth herein.

Prepaid Rent and Security Deposit. A. Prepaid rent and a security deposit in the amounts set forth in the Summary shall be delivered by Tenant to Landlord at the time the Lease is executed. The parties acknowledge Landlord shall retain the security deposit as security for Tenant’s performance of all the covenants, conditions and agreements of this Lease. In no event shall the Landlord be obliged to apply the security deposit upon rents or other charges in arrears or upon damages for the Tenant’s failure to perform such covenants, conditions, and agreements; the Landlord may so apply the security deposit, at its option toward any obligation of Tenant to Landlord; and the Landlord’s right to the possession of the Premises for nonpayment of rents or for other reasons shall not in any event be affected by reason of the fact that the Landlord now holds the Security Deposit security deposit. If all or part of the security deposit is applied toward the payment of rents in arrears or toward the payment of damages suffered by the Landlord by reason of the Tenant’s default under this Lease, then Tenant shall restore the security deposit to its full original balance within five days after written notice from Landlord, which notice shall state the items to which the security deposit has been applied. If not so applied, the security deposit is to be returned to Tenant without interest when this Lease is terminated, according to these terms, and in no event is the security deposit to be returned until Tenant has vacated the Premises and delivered possession to the Landlord in compliance with this Lease. In the event that the Landlord repossesses the Premises because of the Tenant’s default or because of the Tenant’s failure to carry out the covenants, conditions, and agreements of this Lease, Landlord may apply the security deposit toward damages as securitymay be suffered or shall accrue by reason of the Tenant’s default or breach. In the event of bankruptcy or other debtor-creditor proceedings by or against Tenant, the security deposit shall be deemed to be applied pursuant first to the provisions payment of the Lease Transaction Documents. Assignor releases all claims to that sum, rents and such sum shall be held by other charges due Landlord for the benefit earliest possible periods prior to the filing of Assignee, subject such proceedings which would not cause the payments to provisions of be recoverable by the Lease Transaction Documents. Assignor agrees to execute such documents as are reasonably requested by Assignee to implement the provisions of this Section 10A. Notwithstanding anything contained herein, if Landlord exercises its right to terminate the Lease bankruptcy trustee or debtor in possession as a result of this Assignment pursuant preferential transfer. The Landlord shall not be obliged to Section 19 of keep the Leasesecurity deposit as a separate fund, then but may mix it with its own funds. Landlord may deliver the security deposit to the extent purchaser or assignee of Landlord’s interest in the Premises and upon doing so Landlord is obligated to return shall be discharged from any part of the Security Deposit further liability with respect to the Tenant under the Lease, Assignor security deposit. This provision shall be entitled thereto. B. The parties acknowledge that Landlord now holds the sum of $363,387.50 as prepaid rent, for application against the Basic Rent for the first lease month of the term, as provided in Section 4(d) entitled "First Month's Rent" of the Lease. Assignor releases all claims also apply to such prepaid rent, and such sum shall be held by Landlord for the benefit of Assignee, subject to the provisions of the Lease Transaction Documents. The release of such amount by Assignor for the benefit of Assignee is in consideration of the agreement of Assignee to enter into this Assignment, particularly with regard to the agreement of Assignee to assume all issues related to the status of the development of plans for the Shell Improvements and the Tenant Improvements and the consequences of all existing Tenant Caused Delay resulting from the actions of Assignor. C. At such time as the Security Deposit is fully disbursed to pay for Tenant Improvement Costs or to satisfy obligations of the Tenant under the Lease or is returned to Assignee pursuant to the provisions of the Lease, Assignee shall pay to Assignor an amount equal to the product of (i) $25 per square foot, times (ii) the area that the Premises is reduced by the exercise any subsequent transfers of Landlord's restaurant option pursuant to Section 58 of ’s interest in the Lease (expressed in square feet)Premises.

Prepaid Rent and Security Deposit. A. The parties acknowledge that As partial consideration for Landlord’s execution of this Lease, on execution of this Lease, Tenant shall deposit with Landlord now holds the Prepaid Rent, as monthly rent for the first full month of the Term for which Rent is payable, and the Security Deposit, as a Security Deposit as security, to be applied pursuant to the provisions of the Lease Transaction Documents. Assignor releases all claims to that sum, and such sum shall be held by Landlord for the benefit performance by Tenant of Assignee, subject to provisions of the Lease Transaction Documents. Assignor agrees to execute such documents as are reasonably requested by Assignee to implement the provisions of this Section 10A. Notwithstanding anything contained hereinLease. If Tenant is in default, if Landlord exercises its right may use the Security Deposit, or any portion of it, to terminate cure the Lease as default, including without limitation, paying for the cost of any work necessary to restore the Premises, the Tenant improvements and any alterations to good condition or to compensate Landlord for all damage sustained by Landlord resulting from Tenant’s default. Tenant shall within five (5) days of demand pay to Landlord a result of this Assignment pursuant to Section 19 of the Lease, then sum equal to the extent the Landlord is obligated to return any part portion of the Security Deposit expended or applied by Landlord as provided in this Section so as to maintain the Tenant under the Lease, Assignor shall be entitled thereto. B. The parties acknowledge that Landlord now holds Security Deposit in the sum initially deposited with Landlord. If Tenant has not been and is not then in default as of $363,387.50 as prepaid rentthe thirtieth (30th) month of the Term including without limitation, for application against in default in payment of the Basic Rent for the first lease thirtieth (30th) month of the termTerm, as provided in Section 4(d) entitled "First Month's Rent" then Landlord shall return one half of the LeaseSecurity Deposit, without Interest, to Tenant. Assignor releases all claims to such prepaid rentIf Tenant is not in default as of the expiration or termination of the Term, and such sum shall be held by Landlord including without limitation, in default in payment of the Rent for the benefit of Assignee, subject to the provisions last month of the Lease Transaction Documents. The release of such amount by Assignor for Term, then Landlord shall return the benefit of Assignee is in consideration balance of the agreement Security Deposit, without interest, to Tenant within a reasonable period of Assignee time not to enter into this Assignment, particularly with regard to exceed thirty (30) days after the agreement of Assignee to assume all issues related to the status expiration or termination of the development of plans for the Shell Improvements and the Tenant Improvements and the consequences of all existing Tenant Caused Delay resulting from the actions of Assignor. C. At such time as Term. Landlord’s obligations with respect to the Security Deposit is fully disbursed to pay for Tenant Improvement Costs or to satisfy obligations are those of a debtor and not a trustee. Landlord may commingle the Tenant under the Lease or is returned to Assignee pursuant to the provisions of the Lease, Assignee shall pay to Assignor an amount equal to the product of (i) $25 per square foot, times (ii) the area that the Premises is reduced by the exercise of Security Deposit with Landlord's restaurant option pursuant to Section 58 of the Lease (expressed in square feet)’s general and other funds.