Security Deposit and Letter of Credit. 7.1 Concurrently with the execution of this Lease, the Tenant has paid and deposited with Landlord the sum set forth in the Basic Lease Information as the Security Deposit for the full and faithful performance of every provision of this Lease to be performed by Tenant. If Tenant defaults with respect to any provision of this Lease, without waiving any of Landlord's other rights and remedies, Landlord may use, apply or retain all or any part of this Security Deposit for the payment of any Rent or any other sum in default, 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. If any portion of said Security Deposit is so used or applied, Tenant shall within ten (10) calendar days after written demand therefor deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount and Tenant's failure to do so shall be a material breach of this Lease. Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on such deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the Security Deposit or any balance thereof shall be returned to Tenant within fourteen (14) calendar days after termination of this Lease but only after delivery of possession of the entire Premises to Landlord and the performance by Tenant of all obligations required hereunder.
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Security Deposit and Letter of Credit. 7.1 Concurrently Concurrent with the Xxxxxx's execution of this Lease, the Tenant has paid and deposited shall deposit with Landlord a security deposit (the sum "SECURITY DEPOSIT") in the amount set forth in Section 8 of the Basic Lease Information as the Summary. The Security Deposit shall be held by Landlord as security for the full and faithful performance by Tenant of every provision all the terms, covenants, and conditions of this Lease to be kept and performed by TenantTenant during the Lease Term. If Tenant defaults with respect to any provision provisions of this Lease, without waiving any including, but not limited to, the provisions relating to the payment of Landlord's other rights and remediesRent, Landlord may may, but shall not be required to, use, apply or retain all or any part of this the Security Deposit for the payment of any Rent or any other sum in default, or for the payment of any other amount which that Landlord may spend or become obligated to spend by reason of Tenant's default default, or to compensate Landlord for any other loss or damage which that Landlord may suffer by reason of Tenant's default to the full extent permitted by lawdefault. If any portion of said the Security Deposit is so used or applied, Tenant shall shall, within ten five (105) calendar days after written demand therefor therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount amount, and TenantXxxxxx's failure to do so shall be a material breach of default under this Lease. Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on such deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the Security Deposit Deposit, or any balance thereof thereof, shall be returned to Tenant, or, at Landlord's option, to the last assignee of Xxxxxx's interest hereunder, within thirty (30) days following the expiration of the Lease Term. Tenant shall not be entitled to any interest on the Security Deposit. Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code, and all other provisions of law, now or hereafter in force, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Tenant or to clean the Premises, 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 acts or omissions of Tenant or any officer, employee, agent, contractor or invitee of Tenant. In addition to the Security Deposit, Tenant shall deliver to Landlord within ten (10) business days after Xxxxxx's execution of this Lease, an unconditional, clean, irrevocable demand letter of credit with a term of at least one (1) year (the "LC") in the amount specified in Section 12 of the Summary of Basic Lease Information (the "ORIGINAL AMOUNT"), which LC shall be issued by a money-center bank (a bank which accepts deposits, maintains accounts, has a local office which will negotiate a letter of credit, and whose deposits are insured by the FDIC) acceptable to Landlord, which LC shall be in a form and content as set forth in EXHIBIT F, attached hereto. Tenant shall pay all expenses, points and/or fees incurred by Tenant in obtaining the LC and in obtaining any replacement LC. The LC shall be transferable by Landlord at Tenant's sole cost and expense. The LC shall be held by Landlord as security for the faithful performance by Tenant of all the terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the Term. The LC shall not be mortgaged, assigned or encumbered in any manner whatsoever by Tenant without the prior written consent of Landlord. If Tenant defaults with respect to any provisions of this Lease, including, but not limited to the provisions relating to the payment of Rent, or if Tenant fails to renew the LC at least thirty (30) days before its expiration, Landlord may, but shall not be required to, draw upon that portion of the LC necessary for the payment of any Rent or any other sum in default, or for the payment of any amount that Landlord may spend or may 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 default; provided, however, that Landlord may draw upon all of the LC in the event that Tenant fails to renew the LC at least thirty (30) days before its expiration; provided further that Tenant may, within ninety (90) days of the date upon which Landlord draws upon the LC for the Tenant's failure to timely renew the LC, provide Landlord with a new LC, which LC meets all of the criteria for the LC as set forth in this Paragraph 21, in the amount of the LC then due under the Lease, and upon Landlord's receipt of such new LC, Landlord shall promptly return the LC to the Tenant. Tenant shall have the right to exchange the LC at any time for a substitute letter of credit, provided that such substitute letter of credit meets all of the criteria for the LC as set forth in this Paragraph 21; provided further that the expiration date of the substitute letter of credit may be different from the expiration date of the LC so long as such substitute letter of credit in no way violates Tenant's obligation to renew the LC at least thirty (30) days before the LC's expiration. Such substitute letter of credit shall thereafter be referred to as the "LC" and, contemporaneously with Xxxxxxxx's receipt of such substitute LC, Landlord shall deliver to Tenant the original LC. The use, application, or retention of the LC, 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 LC and shall not operate a limitation on any recovery to which Landlord may otherwise be entitled. Any amount of the LC, which is drawn upon by Landlord, but is not used or applied by Landlord, shall be held by Landlord and deemed a security deposit (the "LC SECURITY DEPOSIT"). If any portion of the LC is drawn upon, Tenant shall, within five (5) days after written demand therefor, either (i) deposit cash with Landlord (which cash shall be applied by Landlord to the LC Security Deposit) in an amount sufficient to cause the sum of the LC Security Deposit and the amount of the remaining LC to be equivalent to the amount then required under this Lease or (ii) reinstate the LC to the amount then required under this Lease and Tenant's failure to do so shall be a default under this Lease. If any portion of the LC Security Deposit is used or applied, Tenant shall, within five (5) days after written demand therefor, deposit cash with Landlord (which cash shall be applied by Landlord to the LC Security Deposit) in an amount sufficient to restore the LC Security Deposit to the amount then required under this Lease, and Tenant's failure to do so shall be a default under this Lease. Tenant acknowledges that Landlord has the right to transfer or mortgage its interest in the Real Property and the Building in this Lease and Xxxxxx agrees that in the event of any such transfer or mortgage, Landlord shall have the right to transfer or assign the LC Security Deposit and/or the LC to the transferee or mortgagee, and in the event of such transfer, Tenant shall look solely to such transferee or mortgagee for the return of the LC Security Deposit and/or the LC. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the LC Security Deposit and/or the LC, or any balance thereof, shall be returned to Tenant within fourteen thirty (1430) calendar days after termination of this Lease but only after delivery of possession following the expiration of the entire Premises Term. Tenant shall have the right from time to time during the Term to deliver to Landlord a replacement LC in the Original Amount (less any Annual Reduction [as defined below], if any, theretofore available to Tenant) and otherwise in form and content and by an issuer required by this Exhibit. Contemporaneously with the performance delivery to Landlord of the replacement LC required by the immediately preceding sentence, Landlord shall deliver to Tenant of all obligations required hereunderthe LC then held by Landlord.
Appears in 1 contract
Security Deposit and Letter of Credit. 7.1 Concurrently with the execution To secure its obligations under this Lease, Tenant will, within three (3) business days after Tenant's receipt of a fully executed original copy of this Lease, the Tenant has paid and deposited with pay Landlord the sum set forth in the Basic Lease Information as the Security Deposit for and deliver to the full and faithful performance Letter of every provision Credit (the "Additional Security Deposit"). The effectiveness of this Lease to be performed by is conditioned upon Tenant's timely delivery of the Security Deposit and the Additional Security Deposit. If Tenant defaults with respect to any provision In the event of Tenant's Default as provided in Paragraph 18 of this Lease, without waiving any of Landlord's other rights and remediesLandlord may, Landlord may but shall not be required to, use, apply or retain all or any part of this the Security Deposit for and Additional Security Deposit, to the extent required to satisfy Tenant's obligations hereunder including without limitation the payment of any Rent Base Rent, Additional Rent, interest, late charges or any other sum 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 Default or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant's default Default, including, without limitation, costs and attorneys' fees incurred by Landlord to recover possession of the full extent permitted Premises following a Default by lawTenant hereunder, all without prejudice to any other right or remedy Landlord may have against Tenant. If any portion of said the Security Deposit, Additional Security Deposit is or any portions thereof are so used or appliedused, then Tenant shall within ten (10) calendar business days after its receipt of a written demand therefor from Landlord deposit cash with Landlord in an amount sufficient to restore the cash Security Deposit to its original sum and deposit cash or a new Letter of Credit in an amount sufficient to restore the Additional Security Deposit. Notwithstanding the foregoing or anything to the contrary contained in this Lease, Landlord shall look to the cash portion of the Security Deposit and Additional Security Deposit, if any, before drawing on any Letter of Credit. If Tenant fails to maintain, renew or replace a Letter of Credit at least thirty (30) days before its expiration, Landlord may, without prejudice to any other right or remedy, draw upon the Letter of Credit. Any amount drawn on by the Landlord but not applied by Landlord to satisfy Tenant's obligations hereunder shall be held by Landlord as part of the Additional Security Deposit. Landlord may commingle the Security Deposit and cash portion of any Additional Security Deposit with Landlord's other funds. In the event of bankruptcy or other insolvency proceedings filed by or against Tenant, the Security Deposit and any cash portion of the Additional 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 effective date of such proceedings. The Letter of Credit shall permit full or partial draws by Landlord. Tenant shall pay all expenses, points or fees incurred by Tenant in obtaining, maintaining and renewing the Letter of Credit, provided Landlord shall be responsible for any fees relating to transferring or reissuing the Letter of Credit due to a loan by Landlord or Landlord's sale of the Premises. If Tenant has not been in Default at any time prior to or as of the end of the twenty-fourth (24th) full calendar month of the Term, then Landlord will surrender the existing Letter of Credit to Tenant. At the termination of this Lease, Landlord shall return any remaining Security Deposit and Additional Security Deposit, without interest, upon receipt of Tenant's forwarding address, or as provided by law, whichever is later (but in no event later than thirty (30) days after the date of termination of this Lease). Tenant shall not assign or encumber the Security Deposit or Additional Security Deposit, or attempt to do so, and Landlord shall not be bound by any such assignment or encumbrance. Landlord shall only draw upon the Letter of Credit following a Default and only to the extent required to cure the Default. In the event that Landlord draws upon the Letter of Credit solely due to Tenant's failure to do so shall be a material breach renew the Letter of this Lease. Landlord Credit at least thirty (30) days before its expiration (i) such failure to renew shall not be required to keep this Security Deposit separate from its general funds, constitute a Default hereunder and (ii) Tenant shall not at any time thereafter be entitled to interest on such deposit. If Tenant provide Landlord with a replacement Letter of Credit that satisfies the requirements hereunder, at which time Landlord shall fully and faithfully perform every provision of this Lease to be performed by it, return the Security Deposit or any balance thereof shall be returned to Tenant within fourteen (14) calendar days after termination of this Lease but only after delivery of possession unapplied cash proceeds of the entire Premises to Landlord and the performance original Letter of Credit drawn by Tenant of all obligations required hereunderLandlord.
Appears in 1 contract
Samples: McAfee Com Corp
Security Deposit and Letter of Credit. 7.1 Concurrently (a) Tenant concurrently with the execution of this Lease, the Tenant has paid and deposited with Landlord the sum set forth in the Basic Lease Information BASIC LEASE INFORMATION attached hereto, the receipt of which is hereby acknowledged by Landlord as the Security Deposit security for the full and faithful performance by Tenant of every provision all terms, covenants and conditions of this Lease. Tenant agrees that Landlord may apply the security deposit to remedy any failure by Tenant to repair or maintain the Premises or to perform any other terms, covenants and conditions contained herein or make any payment owing hereunder. If Xxxxxx has kept and performed all terms, covenants and conditions of this Lease to be performed by Tenant. If Tenant defaults with respect to any provision of this Lease, without waiving any of Landlord's other rights and remediesduring the Term, Landlord may usewill, apply within thirty (30) days after the expiration hereof, promptly return the security deposit to Tenant or retain all or any part the last permitted assignee of this Security Deposit for the payment of any Rent or any other sum in default, the payment of any other amount which Xxxxxx's interest hereunder. Should 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. If use any portion of said Security Deposit is so used or appliedthe security deposit to cure any default by Tenant hereunder, Tenant shall within ten (10) calendar days after written demand therefor forthwith replenish the security deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount and Tenant's failure to do so shall be a material breach of this Leaseamount. Landlord shall not be required to keep this Security Deposit the security deposit separate from its general funds, and Tenant shall not be entitled to interest on any such deposit. If Tenant shall fully and faithfully perform every provision Upon the occurrence of any Events of Default (as defined in Paragraph 18 of this Lease to be performed by it, Lease) the Security Deposit or any balance thereof security deposit shall be returned to Tenant within fourteen (14) calendar days after termination of this Lease but only after delivery of possession of the entire Premises become due and payable to Landlord and to the performance by Tenant extent required to compensate Landlord for damages incurred, or to reimburse Landlord as provided herein, in connection with any such Event of all obligations required hereunderDefault.
Appears in 1 contract
Samples: Lease (Embark Com Inc)
Security Deposit and Letter of Credit. 7.1 Concurrently As security for the ------------------------------------- performance of its obligations under this Lease (the "Security Deposit"), Tenant shall, within three (3) business days after the full execution of this Lease by both parties, deliver to Landlord an irrevocable, unconditional, transferable, standby letter of credit in favor of Landlord, as beneficiary, and issued for Tenant, as account party (the "Letter of Credit") issued by a national banking association. reasonably acceptable to Landlord, insured by the Federal Deposit Insurance Corporation, with offices located in San Francisco, California, and in form and content satisfactory to Landlord, in the amount of $307,796.10, representing the total cost of Tenant improvements made to the Premises, real estate commissions paid in connection with the Lease and two (2) months of rental payments under the Lease. In the event Tenant fails to deliver the Letter of Credit to Landlord within the three (3) business day period, Landlord may, until such time as the Letter of Credit is delivered to Landlord, at Landlord's sole option, postpone commencement of upfitting in the Premises or terminate the Lease by giving written notice thereof to Tenant, without prejudice to or in limitation of any other remedies Landlord may have for such failure on the part of Tenant. The Letter of Credit shall permit partial draws and have an expiration date of April 30, 2006. Landlord shall be permitted to draw upon the Letter of Credit to fund the performance of any obligation(s) of Tenant under the Lease beyond the expiration of any applicable notice and cure period under the Lease. The issuing bank shall be required (up to the face amount of the Letter of Credit) to disburse amounts to Landlord under the Letter of Credit based solely on the written statement of Landlord (i) certifying that Tenant is in default of the performance of its obligation(s) under the Lease beyond the expiration of any applicable notice and cure period (if any) pursuant to the Lease and (ii) certifying the amount due to Landlord as a result of such uncured default(s) (which shall be the amount payable, up to an aggregate ceiling amount equal to the face amount of the Letter of Credit, to Landlord under the Letter of Credit). If Landlord's interest in the Premises is sold or otherwise transferred, Landlord shall have the right to transfer the Letter of Credit to the new owner (and the Letter of Credit shall expressly permit such transfers), and Landlord shall thereupon be released from all liability for the safekeeping and administration of the Letter of Credit and Tenant shall thereafter look solely to such new owner for the safekeeping and administration of the Letter of Credit. The terms hereof shall apply to every transfer of the Letter of Credit. Said letter of credit must be payable in Charlotte, North Carolina, and no other requirements other than those set forth above shall be necessary for Landlord to collect on the same. Provided Tenant has not defaulted in the first two (2) years of the Lease term then as of the beginning of the third (3rd) year of the Lease term Tenant may substitute for the existing Letter of Credit a new Letter of Credit with the same terms and conditions as the then existing Letter of Credit, except that the amount thereof shall be reduced by twenty-five percent (25%) to $230,847.08. Upon completion of the third (3rd) year of the Lease term without any default by Tenant, Tenant may replace the then current Letter of Credit with a new Letter of Credit with the same terms and conditions as the existing Letter of Credit except that the amount thereof shall be reduced to $153,898.05. Upon completion of the fourth (4th) year of the Lease term without any default by Tenant, the then current Letter of Credit may be replaced by a new Letter of Credit with the same terms and conditions as the then existing Letter of Credit, except that the amount thereof shall be reduced to $76,949.03. Upon completion of the Lease term, provided Tenant has not been in default prior to the end of the Lease term, and upon the expiration of a period of sixty (60) days next following the end of the Lease term, the Letter of Credit then in effect will terminate unless Landlord has already received full payment thereon. In the event the original Letter of Credit remains in effect and is not replaced, the original Letter of Credit (or if replaced the then existing Letter of Credit) shall remain in force from the period beginning as of the execution of the Lease and extending through the sixtieth (60th) day next following the end of the term of the Lease.* Notwithstanding anything to the contrary contained in the Lease, in the event that during the term of the Lease if Tenant is then current with all monetary obligations under the Lease and is not otherwise in default thereof, and Tenant delivers evidence in form reasonably satisfactory to Landlord that Tenant has been profitable for four (4) consecutive quarters based on an Earnings Before Interest, Taxes and Depreciation/Amortization (EBITDA), and after Debt Service (principal and interest) test, and has a tangible net worth (excluding goodwill and other intangible assets) equal to or in excess of Fifty Million Dollars ($50,000,000), the required Security Deposit (or "deposit") may be reduced to an amount equal to one month of the then current Base Rent. In the event that Tenant satisfies the foregoing conditions and Landlord then holds the Security Deposit in the form of a Letter of Credit, Tenant shall replace the Letter of Credit with cash in an amount equal to one month of the then current Base Rent. Upon receipt of the cash Security Deposit, provided Tenant is current with all monetary obligations under the Lease and not otherwise in default thereof, Landlord shall return the Letter of Credit to Tenant. THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK * The language of page 13a is inserted above. However, the Letter of Credit may provide that it be in force for successive periods of one (1) year each (except for the last period which shall begin on the relevant anniversary of the execution of this LeaseLease and extend through the sixtieth (60th ) day next following the end of the Lease term), beginning upon the Tenant has paid and deposited with Landlord the sum set forth in the Basic Lease Information as the Security Deposit for the full and faithful performance of every provision execution of this Lease and provide for automatic successive renewals upon each anniversary of the effective date thereof, unless the Bank gives written notice to be performed by Tenant. If Landlord and Tenant defaults at least sixty (60) days prior to the relevant anniversary and renewal thereof, that it will not renew the Letter of Credit, in which case, Tenant shall have thirty (30) days after the beginning of such sixty (60) day period within which to provide Landlord with respect to a new Letter of Credit which complies with this Section 14.24 that is effective as of the expiration of the prior Letter of Credit, and if Tenant does not provide such substitute Letter of Credit within such thirty (30) day period, then notwithstanding any other provision of this Lease, without waiving and any of Landlord's other rights and remedies, Landlord may use, apply or retain all or any part of this Security Deposit for the payment of any Rent or any other sum in default, 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. If any portion of said Security Deposit is so used or appliedcure period provided herein, Tenant shall within ten (10) calendar days after written demand therefor deposit cash with be deemed immediately in default without any requirement of notice from Landlord in an amount sufficient to restore the Security Deposit to its original amount and Tenant's failure to do so shall be a material breach of this Lease. Landlord shall not be required have the right to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest collect on the then existing Letter of Credit based on such deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the Security Deposit or any balance thereof shall be returned to Tenant within fourteen (14) calendar days after termination of this Lease but only after delivery of possession of the entire Premises to Landlord and the performance by Tenant of all obligations required hereunderdefault.
Appears in 1 contract
Samples: Smartage Corp
Security Deposit and Letter of Credit. 7.1 Concurrently Tenant concurrently with the execution of this Lease, the Tenant has paid and deposited with Landlord the sum set forth in the Basic Lease Information attached hereto, the receipt of which is hereby acknowledged by Landlord as the Security Deposit security for the full and faithful performance by Tenant of every provision all terms, covenants and conditions of this Lease. Tenant agrees that Landlord may apply the security deposit, after the lapse of any applicable cure period, to remedy any failure by Tenant to repair or maintain the Premises or to perform any other terms, covenants and conditions contained herein or make any payment owing hereunder. If Tenant has kept and performed all terms, covenants and conditions of this Lease to be performed by Tenant. If Tenant defaults with respect to any provision of this Lease, without waiving any of Landlord's other rights and remediesduring the Term, Landlord may usewill, apply within thirty (30) days after the expiration hereof, promptly return the security deposit to Tenant or retain all or any part of this Security Deposit for the payment of any Rent or any other sum in default, the payment of any other amount which Landlord may spend or become obligated to spend by reason last permitted assignee of Tenant's default or to compensate interest hereunder. Should Landlord for any other loss or damage which Landlord may suffer by reason of Tenant's default to the full extent permitted by law. If use any portion of said Security Deposit is so used or appliedthe security deposit to cure any default by Tenant hereunder, Tenant shall within ten (10) calendar days after written demand therefor forthwith replenish the security deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount and Tenant's failure to do so shall be a material breach of this Leaseamount. Landlord shall not be required to keep this Security Deposit the security deposit separate from its general funds, and Tenant shall not be entitled to interest on any such deposit. If Tenant shall fully and faithfully perform every provision Upon the occurrence of any Events of Default (as defined in Paragraph 18 of this Lease to be performed by it, Lease) the Security Deposit or any balance thereof security deposit shall be returned to Tenant within fourteen (14) calendar days after termination of this Lease but only after delivery of possession of the entire Premises become due and payable to Landlord and to the performance by Tenant extent required to compensate Landlord for damages incurred, or to reimburse Landlord as provided herein, in connection with any such Event of all obligations required hereunderDefault.
Appears in 1 contract
Samples: Lease (Linkshare Corp)
Security Deposit and Letter of Credit. 7.1 Concurrently Sublessee shall deposit with the ------------------------------------- Sublessor upon execution of this LeaseSublease, the Tenant has paid and deposited with Landlord sum of twenty three thousand one hundred ($23,100.00) dollars (the sum set forth "Security Deposit"), in the Basic Lease Information cash, as the Security Deposit security for the full performance by Sublessee of the terms and faithful performance of every provision conditions of this Lease to be performed by TenantSublease. If Tenant Sublessee fails to pay rent or other charges due hereunder or otherwise defaults with respect to any provision of this LeaseSublease, without waiving any of Landlord's other rights and remediesthen Sublessor may draw upon, Landlord may use, apply or retain all or any part portion of this the Security Deposit for the payment of any Rent rent or any other sum charge in defaultdefault or breach, for the payment of any other amount sum which Landlord may spend or Sublessor has become obligated to spend pay by reason of TenantSublessee's default default, or to compensate Landlord Sublessor for any other loss or damage which Landlord may suffer by reason of Tenant's default to the full extent permitted by lawSublessor has suffered thereby. If Sublessor so uses or applies all or any portion of said the Security Deposit is so used or appliedDeposit, Tenant shall then Sublessee, within ten (10) calendar days after written demand therefor therefor, shall deposit cash with Landlord Sublessor in an the amount sufficient required to restore the Security Deposit to its original the full amount stated above, and Tenant's failure by Sublessee to do so shall be constitute a material default and breach of under this LeaseSublease. Landlord Sublessor shall not be required to keep this the Security Deposit separate from form its general fundsaccounts, and Tenant shall not be entitled to have no obligation or liability for payment of interest on such depositthe Security Deposit. In the event Sublessor assigns its interest in this Sublease, Sublessor shall deliver to its assignee so much of the Security Deposit as is then held by Sublessor. Upon the expiration or earlier termination of this Sublease, if Sublessee is not in default, Sublessor shall return to Sublessee so much of the Security Deposit as has not been applied by Sublessor pursuant to this paragraph, or which is not otherwise required to cure Sublessee's defaults. Additionally, in the event that Sublessee's cash and securities, as reported in Sublessee's quarterly and annual filings with the Securities and Exchange Commission ("SEC") on forms 10-QSB and 10-KSB (the "Forms") respectively, shall fall below one million five hundred thousand ($1,500,000.00) dollars Sublessee shall obtain and keep current throughout the remaining lease term a letter of credit in favor of Sublessor, from a reputable bank or financial institution, in the amount of two hundred thirty-two thousand one hundred thousand ($232,100.00) dollars ("Letter of Credit"), subject to annual review of Sublessee's credit. Sublessee shall provide copies of the Forms to Sublessor within five days (5) days of filing the Forms with the SEC. If Tenant shall fully and faithfully perform every after drawing upon the Security Deposit, Sublessee still fails to pay rent or other charges due hereunder or otherwise defaults with respect to any provision of this Lease to be performed by itSublease, the Security Deposit then Sublessor may draw upon, use, apply or retain all or any balance thereof shall be returned to Tenant within fourteen (14) calendar days after termination of this Lease but only after delivery of possession portion of the entire Premises Letter of Credit for the payment of any rent or other charge in default or breach, for the payment of any other sum which Sublessor has become obligated to Landlord and the performance pay by Tenant reason of all obligations required hereunderSublessee's default, or to compensate Sublessor for any loss or damage which Sublessor has suffered thereby.
Appears in 1 contract
Samples: Depomed Inc