Security Deposit; Condition Precedent Clause Samples

Security Deposit; Condition Precedent a. The security deposit for this Lease shall be in the form of cash or a site-draft Irrevocable Letter of Credit from a reputable bank in a reasonably acceptable form in the amount of Nine Hundred Seventy Eight Thousand Dollars ($978,000.00), (the “Security Deposit”) as such amount may be adjusted as set forth below. The Letter of Credit must provide that it may be presented for payment at a bank office in ▇▇▇▇▇▇▇▇▇▇ County, PA. Said Security Deposit shall be provided to Lessor by Lessee on or before the Commencement Date of the Term and renewals thereof, as appropriate, shall be provided no later than thirty days before the commencement of each Lease Year. All bank charges associated with maintaining the Irrevocable Letter of Credit, if any, shall be paid by Lessee; provided, however, Lessee shall only be obligated to pay the costs incurred with respect to an assignment of the Letter of Credit to a successor Lessor one time during the Term hereof. Failure to provide the Letter of Credit or renewals on a timely basis shall be an event of default under this Lease Agreement. b. In the event the Security Deposit is in the form of cash deposited by Lessee, Lessor shall deposit same in a separate interest bearing money market escrow account with a nationally recognized financial institution bearing interest (interest to follow the Security Deposit). Lessor shall provide to Lessee in writing the name of such institution and the account number and all interest accruing thereon shall be deemed a part of the Security Deposit. (i) Throughout the Term of this Lease and prior to its commencement, the principal amount of the Security Deposit shall be increased to cover the cost of restoring the Demised Premises to its condition on the date of execution of the CI Sublease. The amount of the Security Deposit shall be increased each time Lessee is required to obtain a permit or approval for any improvements or renovations to the Demised Premises. Said increased amount (“Restoration Deposit”) shall be added to and made a part of the Security Deposit and shall be determined within ninety (90) days following the date of approval of final construction drawings for Tengion’s initial improvements to the Demised Premises, as described in the CI Sublease, which CI Sublease shall be for a term expiring on the Commencement Date of the Term of this Lease, and thereafter as additional improvements requiring a permit or approval, if any, are made. If the parties hereto are unable to a...