Common use of Security Deposit Clause in Contracts

Security Deposit. 6.01 Subject to the provisions of Section 6.02, Tenant shall have deposited with Landlord, on or before the date hereof the sum of $4,010,000.00. as security for the faithful performance and observance by Tenant of the terms, provisions and conditions of this lease; it is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00.

Appears in 1 contract

Sources: Lease Agreement (Bolt Inc)

Security Deposit. 6.01 Subject Subleasee has agreed to the provisions of Section 6.02, Tenant shall have deposited deposit with Landlord, on or before the date hereof the sum of $4,010,000.00. Supermarket as a security for the faithful Subleasee's performance and observance by Tenant of the termsterms and provisions hereto a sum which shall at all times be equivalent to two (2) times the monthly installment of Annual Rent required to be paid hereunder, provisions which sum shall be due and conditions payable at the time of this lease; it is agreed that in the execution of the Sublease. In the event Tenant defaults in respect of any of that the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's Subleasee shall default in respect of any of the terms, covenants and conditions of this leaseSublease, including but not limited to, Supermarket may apply or retain all or any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member portion of the New York Clearing House Association located in security deposit to cure the City default or to reimburse Supermarket for any cost which Supermarket may incur by reason of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodsuch default. In the event of every such application or retention, the Subleasee shall on demand pay to Supermarket the sums so applied or retained which shall be added to the security deposit so that Tenant the same shall fully and faithfully comply with all be restored to its original amount. No interest shall be payable to Subleasee on account of the termssecurity deposit, provisions, covenants and conditions Supermarket may commingle the security deposit with other of its funds. Within thirty (30) days following the end of the Term of this leaseSublease, providing the Subleasee shall not be in default hereunder and provided further that the security deposit had not otherwise been applied, the security deposit shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to LandlordSubleasee. In the event Landlord applies of an assignment thereof or retains other disposition of this Sublease, Supermarket may assign and turn over the security deposit to Supermarket's grantee, lessee or assignee, and Subleasee hereby releases and relieves Supermarket from any portion and all liability for the return of said deposit and shall look solely to Supermarket's grantee, lessee or all assignee therefore. In lieu of cash, Subleasee may deliver to Supermarket simultaneously with the execution of this Sublease an irrevocable negotiable letter of credit issued by and drawn on a bank or trust company reasonably acceptable to Supermarket, or by the Subleasee itself in form and content reasonably acceptable to Supermarket. for the account of Supermarket in the amount of the required security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited deposit. Said letter of credit shall be $4,010,000.00for one (1) yea and shall be renewed by Subleasee each year until the expiration of the Term of this Lease and shall be delivered to Supermarket thirty (30) days before the expiration of the current letter of credit. Failure to timely deliver such letter of credit shall constitute it material breach of the Sublease and Supermarket shall be entitled to present the existing letter of credit for payment.

Appears in 1 contract

Sources: Sublease Agreement (Skylands Financial Corp)

Security Deposit. 6.01 Subject Lessee shall provide Lessor with a security deposit in the aggregate amount of USD$ 150,000 (the "SECURITY DEPOSIT") to the provisions of Section 6.02, Tenant shall have deposited with Landlord, on or before the date hereof the sum of $4,010,000.00. be paid as set forth herein as security for the timely and faithful performance by Lessee of all of Lessee's obligations under this Lease. Prior to the execution of this Agreement, Lessee shall have provided to Lessor a good faith cash deposit in the amount of USD$ 50,000. On or prior to the Delivery Date (as defined in the Interim Lease), Lessee shall provide to Lessor an additional cash deposit of USD$ 100,000; PROVIDED, HOWEVER, that Lessee shall satisfy the requirement to deposit such $150,000 required hereby by the delivery thereof to Lessor at or prior to the Delivery Date (as defined in the Interim Lease), and observance by Tenant Lessee hereby authorizes and directs Lessor to retain such amount after the Expiration Date of the terms, provisions and conditions of this lease; it is agreed that Lease Term (as defined in the event Tenant defaults Interim Lease) as the Security Deposit under this Lease Agreement. Lessee hereby creates and grants to Lessor and to ING a lien on and security interest in respect all monies, securities, accounts, and investments from time to time comprising the Security Deposit, as security for the full and timely payment and performance of its obligations hereunder and under the other Lease Documents and the Other Leases. Lessee agrees to execute and file with the appropriate governmental entities any and all documents necessary or reasonably requested by Lessor to evidence and perfect such security assignment in favor of Lessor. If Lessee fails to pay Rent hereunder when due or to pay any other sums due or to perform any of the terms, other terms and provisions and conditions of this leaseLease, includingany other Lease Document or any Other Lease, but not limited toor is otherwise in default hereunder or thereunder, the payment of rent and additional rentin addition to all other rights Lessor or ING shall have hereunder or under applicable law, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord Lessor or ING may use, apply or retain the whole or all of any part portion of the security Security Deposit in partial payment for sums due to Lessor or ING by Lessee, to compensate Lessor or ING for any sums it may in its discretion advance as a result of a default by Lessee or to apply toward losses or expenses Lessor or ING may suffer or incur as a result of Lessee's default hereunder or otherwise in satisfaction of Lessee's obligations. If Lessor or ING uses or applies all of any portion of such Security Deposit, such application shall not be deemed a cure of any Defaults, and Lessee shall within five (5) days after written demand therefor provide ING with an additional cash deposit in an amount sufficient to restore the Security Deposit to USD$ 150,000 and otherwise issued on such terms as are approved by Lessor and failure of Lessee to do so deposited or shall be a material breach of this Lease by Lessee. Provided no Default shall have occurred, such Security Deposit, less only those costs directly incurred by Lessor in connection with the proceeds termination of the Letter Lease or return of Credit (as set forth in Section 6.02 hereof) to the extent required Aircraft, which cost by the terms hereof are the obligation of Lessee or for the payment account of any rent Lessee, shall be terminated and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend released by reason of TenantLessor upon Lessee's default in respect of any return of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member Aircraft at the end of the New York Clearing House Association located Lease Term in the City of New York selected by Landlord and compliance with Clause 15 hereof. Lessee shall not be entitled to any interest earned thereon (less on any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00Security Deposit.

Appears in 1 contract

Sources: Lease Agreement (Pan Am Corp /Fl/)

Security Deposit. 6.01 Subject to the provisions of Section 6.02, Tenant shall have has deposited with Landlord, on or before the date hereof Landlord the sum of $4,010,000.00. 750,000.00 (the “security deposit”), as security for the faithful performance and observance by Tenant of the terms, provisions and conditions of this lease; it is agreed that in the event Tenant defaults beyond any applicable notice and grace period in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure periodLease, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for beyond any sum which applicable notice and grace period. Landlord may reasonably expend or may be required to expend by reason of shall hold Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The ’s security shall be deposited deposit in a separate interest bearing account segregated from Landlord's funds, in (of which Tenant shall receive the interest) less a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any 1% administrative fee to which Landlord may be entitled pursuant to applicable law) and shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of commingle said deposit with any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodLandlord’s other monies. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date date fixed as the end of this lease and after delivery of entire possession of the Demised Premises to Landlord. In the event of a sale of the land and Building or leasing of the Building, Landlord applies shall have the right to transfer the security to the vendee or retains lessee and Landlord shall thereupon be released by Tenant from all liability for the return of such security. If, as a result of any portion application of all or all any part of the security depositeddeposit, the amount of the security deposit being held by Landlord shall be less than the amount required to be held hereunder, Tenant shall forthwith restore provide Landlord with additional funds in an amount equal to the deficiency. Notwithstanding the foregoing, Tenant shall have the right during the Demised Term to substitute the security deposit with an irrevocable letter of credit for the same amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00in form satisfactory to Landlord.

Appears in 1 contract

Sources: Lease Agreement (Falconstor Software Inc)

Security Deposit. 6.01 Subject Tenant agrees to the provisions of Section 6.02, Tenant shall have deposited deposit with Landlord, on or before upon the date hereof execution of this Lease, the sum of $4,010,000.00. set forth in Section 1(q) as security (the "Deposit") for the full and faithful performance and observance by Tenant of the termseach and every term, provisions provision, covenant, and conditions condition of this lease; it is agreed that in Lease. Landlord shall have no obligation to segregate the event amount so deposited from its other funds. If Tenant defaults in respect of to any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this leaseLease, including, but not limited to, payment of Rent, Landlord may use, apply, or retain the whole or any part of the Deposit for the payment of any such Rent in default, or for any other sum which Landlord may expend or be required to expend by reason of Tenant's default including, without limitation, any damages or deficiency in the reletting of the Premises, whether such damages or deficiency shall have occurred before or after any re-entry by Landlord. The use, application or retention of the Deposit, 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 Deposit) and shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled. If any of the Deposit shall be so used, applied or retained by Landlord at any time or from time to time, Tenant shall promptly in each such instance, on written demand therefor by Landlord, pay to Landlord such additional sum as may be necessary to restore the Deposit to the original amount set forth in the first sentence of this Section 8. If Tenant shall fully and faithfully comply with all the terms, provisions, covenants and conditions of this Lease, the security Deposit, or any balance thereof, shall be returned to Tenant after the later of: (a) within thirty (30) days following the Expiration Date; (b) within thirty (30) days following the date by which Tenant has vacated the Premises; (c) the time required for the escalation charges due pursuant to the Lease to have been computed by Landlord and paid by Tenant, provided that such charges shall be computed and forwarded to Tenant no later than ten thirty (1030) days after receipt of information needed by Landlord to compute such charges. Except as otherwise required by law, Tenant shall not be entitled to any interest on the Expiration Date and after delivery of entire possession of the Demised Premises to Landlordaforesaid Deposit. In the event absence of evidence satisfactory to Landlord applies or retains any portion or all of an assignment of the security depositedright to receive the Deposit or the remaining balance thereof, Tenant Landlord shall forthwith restore return the amount so applied Deposit to the original Tenant, regardless of one or retained so that at all times more assignments of this Lease in accordance with the amount deposited provisions hereof. Upon the return of the Deposit or the remaining balance thereof to the original Tenant, Landlord shall be $4,010,000.00completely relieved of liability under this Section 8 or otherwise with respect to the Deposit. If Tenant receives notice of sale of the Building and a notice to attorn to the new owner, it shall look solely to the new owner for return of the Deposit.

Appears in 1 contract

Sources: Office Lease (Immtech International Inc)

Security Deposit. 6.01 Subject Simultaneously with the execution and delivery of this Lease to the provisions of Section 6.02Landlord, Tenant shall have deposited deposit with LandlordLandlord an irrevocable standby Letter of Credit (as the same may be amended or replaced, on the “Letter of Credit”) with an effective date as of or before about the date hereof execution of this Lease, in the form attached to this Lease as Exhibit S and issued by a financial institution acceptable to Landlord and its lender, in the sum of Six Hundred Thousand Five Hundred Thirty-Four Dollars and Thirty Cents ($4,010,000.00. 600,534.30), to be held and, as applicable, presented, drawn upon and the proceeds thereof retained and applied by Landlord as security for the faithful payment, performance and observance by Tenant of the terms, provisions covenants, provisions, conditions and conditions agreement of Tenant under and pursuant to this lease; it Lease. It is agreed and understood that in the event Tenant defaults in respect of any of the termsoccurrence of an Event of Default of Tenant, provisions Landlord may present for payment and conditions draw upon the Letter of this lease, including, but not limited to, the payment of rent Credit and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of amounts available to be drawn under the Letter of Credit (as set forth in Section 6.02 hereof) only to the extent required for the payment of any rent Rent or Additional Rent not paid when due after the expiration of any notice and additional rent cure period or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required entitled to expend the payment of by reason of Tenant's default in respect any Event of Default of Tenant or any failure of the termsTenant to pay, covenants and conditions perform or observe any term, covenant, condition or provision of this leaseLease, including but not limited towithout limitation, any late charges, interest payments or any damages or deficiency accrued in the re-letting of the Premises whether said damages or deficiency occurred before or after summary proceedings or other re-entry by Landlord. The security If Landlord shall present, draw upon and apply or retain all or any portion of the amounts evidenced by the Letter of Credit, Tenant shall without undue delay replenish and reinstate the amount available to be drawn under the Letter of Credit or cause a substitute Letter of Credit in the form and amount required by this Lease to be re-issued so that at all times during the Term of this Lease, Landlord shall be deposited entitled to draw upon the entire dollar amount of the Letter of Credit in the amounts required hereunder notwithstanding any prior presentation and draw thereon. The Letter of Credit must at all times be an “irrevocable clean” commercial Letter of Credit in the amount required by this Lease and payable through a separate interest bank, acceptable to Landlord in Landlord’s reasonable discretion. In addition, the Letter of Credit shall be payable solely to the benefit of the Landlord from time to time under this Lease and shall be automatically renewable and, upon the direction of Landlord, transferable to and payable for the benefit of any successor Landlord under the Lease. The Letter of Credit shall be and remain presentable and payable for the time period beginning on the date of this Lease through and including the date which is the last to occur of (i) the date which is sixty (60) days after the last day of the Term of this Lease or (ii) sixty (60) days after the last of Tenant’s monetary obligations to Landlord under this Lease have been satisfied in full. Tenant shall bear all costs and expenses in connection with procuring the Letter of Credit and maintaining it in full force and effect for the time periods required hereunder. In the event of a sale or other transfer of the Building, Tenant shall, at its sole cost and expense, cause the Letter of Credit, in the form required hereunder, to be issued to and for the benefit of such transferee or purchaser, as designated by Landlord upon reasonable advanced written notice. The Landlord from time to time under this Lease, shall be entitled to receive thirty (30) days prior written notice of any cancellation of the Letter of Credit for any reason and the Letter of Credit shall not be cancelable unless and until Landlord shall have received such thirty (30) day advance written notice. Upon (i) receiving notice of cancellation of the Letter of Credit or (ii) failure of Tenant to deliver to Landlord a substitute Letter of Credit on or before the date which is thirty (30) days prior to any renewal date and whether or not Tenant shall then be in default in the payment, performance or observance of any term, covenant or provision of this Lease, Landlord shall be entitled to present, draw upon and retain the entire amount of the Letter of Credit and upon so doing, Landlord shall be entitled to hold, apply and retain the proceeds of such payment as if it were a cash Security Deposit under this Lease to be applied against Defaults of Tenant from time to time arising under this Lease. In the event that the security deposit shall be provided by Tenant in cash or otherwise converted to cash, it shall be placed in an interest-bearing account segregated carrying a commercially competitive interest rate. Tenant shall be entitled to receive from Landlord's funds, in a interest on the amount so held at the lesser of the prime rate from time to time quoted by Fleet Bank (or if it shall no longer exist, by the largest commercial bank which in Boston), minus one (1%) per cent, or the interest actually earned if the sum shall be segregated by Landlord; and so long as there is a member no Event of the New York Clearing House Association located in the City of New York selected Default by Landlord and any Tenant hereunder that remains uncured, such interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant semi-annually provided on February 1 and August 1, but until distributed to Tenant, such payment shall be part of the security deposit. It is agreed that if the security deposit is converted to cash, Landlord shall only use said deposit amounts for Events of Default as defined in this Lease. It is agreed and understood that any failure of Tenant is not then to perform, observe or comply with any term or provision contained in default in this Section XLIV to be performed or observed by Tenant shall entitle Landlord to the observance or performance of any of its obligations same rights and remedies under this lease which continues after notice Lease, as a failure by Tenant to pay Rent and the expiration of Additional Rent as and when same shall be due and payable. Landlord may apply all or any applicable cure period. In the event that Tenant shall fully and faithfully comply with all portion of the terms, provisions, covenants and conditions of this lease, security deposit to any damage to the security shall Premises or to the restoration thereof or to any Rent or Additional Rent which may be returned to due from Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event that Landlord applies shall so apply all or retains any portion of the said security deposit, Tenant shall immediately upon notice, restore the same to its full amount. All or all any portion of the security deposited, Tenant shall forthwith restore deposit remaining in cash or in the amount form of a Letter of Credit at the expiration or other termination of this Lease that has not been so applied or retained so that at all times the amount deposited shall be $4,010,000.00returned to Tenant upon such expiration or termination.

Appears in 1 contract

Sources: Lease Agreement (Ade Corp)

Security Deposit. 6.01 Subject Tenant agrees to the provisions of Section 6.02, Tenant shall have deposited deposit with Landlord, on or before upon the date hereof execution of this Lease, the sum of $4,010,000.00. Security Deposit as security for the full and faithful performance and observance by Tenant of the termseach and every term, provisions provision, covenant and conditions condition of this lease; it is agreed that in the event Lease. If Tenant defaults in respect of to any of the terms, provisions provisions, covenants and conditions of this lease, Lease including, but not limited to, the payment of rent all rental and additional rent, which default continues after any notice other sums required under this lease and the expiration of any applicable cure periodto be paid by Tenant hereunder, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any such rent and additional rent or any other sum as to which Tenant is in default or default, for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the termsincluding, covenants and conditions of this lease, including but not limited towithout limitation, any damages or deficiency in the reletting of the Premises, whether such damages or deficiency shall have accrued before or after summary proceedings or other re-entry by Landlord. The If any of the security deposit shall be deposited in a separate interest bearing account segregated so used, applied or retained by Landlord at any time or from Landlord's fundstime to time, Tenant shall promptly, in a commercial bank which is a member of each such instance, on written demand therefor by Landlord, pay to Landlord such additional sums as may be necessary to restore the New York Clearing House Association located security deposit to the original amount set forth in the City first sentence of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodsection. In the event that If Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this leaseLease, the security deposit, or the balance thereof, shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession following: (a) the time fixed as the expiration of the Demised Term of this Lease; (b) the removal of Tenant from the Premises; (c) the surrender of the Premises by Tenant to LandlordLandlord in accordance with this Lease; and (d) final determination of all amounts payable by Tenant hereunder and payment of same. Except as otherwise required by law, Tenant shall not be entitled to any interest on the aforesaid security deposit. In the absence of evidence satisfactory to Landlord of an assignment of the right to receive the security deposit o:(degree) the remaining balance thereof, Landlord may return the security deposit to the original Tenant, regardless of one or more assignments of this Lease. In the event Landlord applies or retains any portion or all of fails to return the security depositedSecurity Deposit to Tenant within forty-five (45) days from the time required under this Lease, Tenant then the Security Deposit shall forthwith restore bear interest thereafter until returned, at the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00Lease Interest Rate.

Appears in 1 contract

Sources: Industrial Building Lease (Eagle Test Systems, Inc.)

Security Deposit. 6.01 Subject to the provisions of Section 6.02, Tenant shall have Sublessee has deposited with Landlord, on or before Sublessor upon the date hereof execution of this Agreement of Sublease the sum of $4,010,000.00. 13,782.43 Dollars as security for the faithful performance and observance by Tenant of the terms, provisions and conditions of this lease; it is agreed that in the event Tenant defaults in respect Agreement of any of the terms, provisions and conditions of this lease, Sublease including, but not limited to, the payment of rent Base Rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord . Sublessor may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent Base Rent and additional rent or any other sum as to which Tenant Sublessee is in default or for any sum which Landlord Sublessor may reasonably expend or may be required to expend by reason of TenantSublessee's default in respect of any of the terms, covenants and conditions of this leaseAgreement of Sublease, including including, but not limited to, any damages or deficiency shall have accrued before or after summary proceedings or other re-entry by LandlordSublessor or Lessor. The security Sublessee agrees (a) to restore the Security Deposit to its initial full amount upon any application of any part or the whole thereof by Sublessor and (b) Sublessor's rights hereunder are non-exclusive and cumulative with all rights and remedies of Sublessor under applicable law and the Lease. Sublessor shall not be deposited in a separate required to segregate such Security Deposit nor pay interest bearing account segregated from Landlord's fundsthereon, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected unless required by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant If Sublessee shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this leasethe Agreement, the security Security Deposit shall be returned (within fifteen (15) days) to Tenant no later than ten (10) days Sublessee after the Expiration Date date fixed at the end of this Agreement of Sublease and after delivery of the entire possession of the Demised Subleased Premises to LandlordSublessor. In Sublessee further covenants that it will not assign or encumber or attempt to assign or encumber the event Landlord applies monies deposited herein as security and that neither Sublessor nor Sublessor's legal representatives, successors or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited assigns shall be $4,010,000.00bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance.

Appears in 1 contract

Sources: Sublease Agreement (Optium Corp)

Security Deposit. 6.01 Subject (a) On or prior to the provisions of Section 6.02date that Subtenant is no longer controlled by or under common control with Sublandlord, Tenant Subtenant shall have deposited deposit with Landlord, on or before the date hereof Sublandlord the sum of $4,010,000.00. 1,767,350.97 as security (the “Security Deposit”) for the faithful performance and observance by Tenant Subtenant of the terms, provisions covenants and conditions of this lease; it is agreed that in Sublease. Subtenant’s failure to timely deliver the event Tenant Security Deposit shall be a material default under this Sublease. If Subtenant defaults in respect of any of the terms, provisions and covenants or conditions of this leaseSublease, including, but not limited to, the payment of rent Fixed Rent and additional rentAdditional Rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord Sublandlord may use, apply or retain the whole or any part of the security Security Deposit so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent Fixed Rent and additional rent Additional Rent or any other sum as to which Tenant Subtenant is in default default, or for reimbursement of any sum which Landlord that Sublandlord may reasonably expend or may be required to expend by reason of Tenant's Subtenant’s default in respect of any of the terms, covenants and conditions of this leaseSublease, including including, but not limited to, any damages or deficiency in resubletting of the Subleased Premises, whether such damages or deficiency accrued before or after summary proceedings or other re-entry by LandlordSublandlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant If Subtenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this leaseSublease, the security Security Deposit (without interest) shall be returned to Tenant no later Subtenant after both the date fixed as the end of this Sublease and delivery of possession of the entire Subleased Premises to Sublandlord in the condition required hereunder. Subtenant further covenants that it will not assign or encumber or attempt to assign or encumber the Security Deposit, and that neither Sublandlord nor its successors or assigns shall be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance. In the event of any use, application or retention of the Security Deposit by Sublandlord, Subtenant shall, within five (5) days of demand, pay to Sublandlord the sum so used, applied or retained. (b) In lieu of the cash Security Deposit, Subtenant shall deliver to Sublandlord a clean, irrevocable and unconditional letter of credit (“Letter of Credit”) issued by and drawn upon a member of the Clearing House Association or another commercial bank reasonably satisfactory to Sublandlord (hereinafter referred to as the “Issuing Bank”) with offices for banking purposes in New York City, and having a Commercial Paper credit rating of A-1/P-l or better from Standard & Poor’s (the “Minimum Rating Requirement”), which Letter of Credit shall be payable in New York City, have a term of not less than ten one (101) year, be in a form that complies with requirements sets forth in Section 20(c) below and that is otherwise reasonably acceptable to Sublandlord, name Sublandlord as beneficiary, and be maintained in the amount of the Security Deposit for the entire Term plus a period of sixty (60) days thereafter. Notwithstanding the foregoing, the Letter of Credit may provide that it can be drawn upon the office of Issuing Bank located outside of New York City if the drawing thereon may be consummated by facsimile and/or reputable overnight courier. (c) The Letter of Credit shall provide that (i) the Issuing Bank shall pay to Sublandlord or its duly authorized representative an amount up to the face amount of the Letter of Credit upon presentation of the Letter of Credit and a sight draft in the amount to be drawn; and (ii) the Letter of Credit either shall be for a term ending sixty (60) days after the Expiration Date and after delivery of entire possession end of the Demised Premises Term or shall be deemed to Landlordbe automatically renewed, without amendment, for consecutive periods of one (1) year each during the Term of this Sublease, unless the Issuing Bank sends written notice to Sublandlord by certified or registered mail, return receipt requested, not less than sixty (60) days next preceding the then expiration date of the Letter of Credit, that it elects not to have such Letter of Credit renewed. (d) Notwithstanding anything to the contrary contained herein, Subtenant acknowledges that Subtenant is obligated to provide Sublandlord with Replacement Security (as hereinafter defined) within fifteen (15) days of notice from Sublandlord if any of the following events (each, a “Triggering Event”) occurs: (1) the Issuing Bank of the Letter of Credit is placed into receivership or conservatorship by the Federal Deposit Insurance Corporation or any successor or similar entity; or (2) the Issuing Bank of the Letter of Credit fails to meet the Minimum Rating Requirement. Within fifteen (15) days of Sublandlord’s notice to Subtenant of a Triggering Event, Subtenant shall replace the Letter of Credit with either a letter of credit issued by a commercial bank that satisfies the requirements set forth in Section 20(b) hereof or other security (the “Replacement Security”) acceptable to Sublandlord in its sole and absolute discretion. If Subtenant fails to provide the Replacement Security as aforesaid, then, notwithstanding anything in this Sublease to the contrary, (1) such failure shall constitute a default under this Sublease for which there shall be no notice or grace or cure periods being applicable thereto other than the aforesaid fifteen (15) day period and Sublandlord shall be entitled to exercise any and all rights and remedies provided under this Sublease, and (2) Sublandlord may immediately draw upon the Letter of Credit in whole or in part, and the proceeds thereof shall be held or applied, as applicable, pursuant to the terms of this Sublease. (e) In the event Landlord applies Sublandlord assigns or retains any portion otherwise transfers its interest in the Prime Lease, Sublandlord shall have the right to transfer (at no expense to it) the cash Security Deposit or all Letter of Credit, as the case may be, deposited hereunder to the transferee, and Sublandlord shall, after notice to Subtenant of such transfer, including the name and address of the security depositedtransferee, Tenant be released by Subtenant from all liability for the return of such cash Security Deposit or Letter of Credit. In such event, Subtenant agrees to look solely to the transferee for the return of said cash Security Deposit or Letter of Credit. Upon Sublandlord’s assignment or other transfer of its interest in the Prime Lease, Subtenant shall forthwith restore have its bank issue a new Letter of Credit on all the same terms and conditions and in the appropriate amount so applied to such transferee in exchange for the return of the then existing Letter of Credit and without charge to Sublandlord or retained so such transferee. It is agreed that the provisions hereof shall apply to every transfer or assignment made of said cash Security Deposit or Letter of Credit to a transferee. (f) Sublandlord may draw upon the Letter of Credit at all times the amount deposited shall be $4,010,000.00.following times: (i) at any time that Sublandlord is permitted to use or apply the Security Deposit pursuant to the terms hereof; (ii) upon any failure by Subtenant to renew, at least thirty (30) days in advance of expiration, a Letter of Credit that would otherwise expire prior to the date which is sixty (60) days after the end of the Term; or

Appears in 1 contract

Sources: Sublease (Sema4 Holdings Corp.)

Security Deposit. 6.01 Subject to the provisions Tenant shall, upon execution of Section 6.02this lease, Tenant shall have deposited deposit with Landlord, on or before the date hereof Landlord the sum of Forty Thousand Eight Hundred ($4,010,000.00. as 40,800) Dollars security for the faithful performance and observance by Tenant of the terms, provisions and conditions of this lease; it is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and fails to cure the expiration of same within any applicable cure periodgrace and/or notice periods, then, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency in the re-letting of the Demised Premises, whether such damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be promptly returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to LandlordTenant. In the event of a sale of the land and Building or leasing of the Building, of which the Demised Premises form a part, Landlord applies shall have the right to transfer the security to the vendee or retains any portion TENANT and Landlord shall thereupon be released by Tenant from all liability for the return of such security; and Tenant agrees to look to the new Landlord solely for the return of said security, and it is agreed that the provisions hereof shall apply to every transfer or all assignment made of the security deposited, to a new Landlord. Tenant shall forthwith restore further covenants that it will not assign or encumber or attempt to assign or encumber the amount so applied monies deposited herein as security and that neither Landlord nor its successors or retained so that at all times the amount deposited assigns shall be $4,010,000.00bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance.

Appears in 1 contract

Sources: Loft Lease (Sparta Commercial Services, Inc.)

Security Deposit. 6.01 Subject to the provisions of Section 6.02, Tenant shall have has deposited with Landlord, on or before the date hereof Landlord the sum of $4,010,000.0014,667.50 ("Security Deposit"). as The Security Deposit constitutes security for the faithful Tenant's satisfactory performance and observance by Tenant of the terms, provisions . covenants and conditions of this lease; it is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, Lease including the payment of rent Annual Gross Rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Additional Rent. (a) Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent Annual Gross Rent, Additional Rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this leaseLease, including but not limited to, any damages or deficiency accrued before or after summary proceedings in the re-letting of the Leased Premises or other re-entry reentry by Landlord. (b) If Landlord uses, applies or retains the whole or any part of the Security Deposit, Tenant shall replenish it to the sum provided in Section 1.7 within five (5) Business Days after being notified by the Landlord of the amount due. Tenant shall be in default of this Lease if the amount due is not paid within the required time period. (c) In the event of a sale or master leasing of the Building, or any part thereof, of which the Leased Premises form a part, Landlord shall have the right to transfer the security to the new landlord, and Landlord shall ipso facto be released by Tenant from all liability for the return of the Security Deposit. In such event, Tenant agrees to look solely to the new landlord for the return of the Security Deposit and it is agreed that the provisions hereof shall apply to every transfer or assignment made of the Security Deposit to a new landlord. (d) Tenant covenants that it shall not assign or encumber the Security Deposit given to Landlord pursuant to this Lease. Neither Landlord, its successors or assigns shall be bound by any such assignment or encumbrance or any attempted assignment or encumbrance. The security Security Deposit shall not be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member used as any part of the New York Clearing House Association located in Annual Gross Rent or Additional Rent by Tenant. Landlord will not be obligated to pay Tenant interest on the City of New York selected by Landlord and any interest earned thereon Security Deposit, nor to segregate the Security Deposit from Landlords other funds. (less any administrative fee to which Landlord may be entitled pursuant to applicable lawe) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this leaseLease, any part of the security Security Deposit not used or retained by Landlord shall be returned to Tenant no later than ten (10) days after the Expiration Date expiration of the Lease and after delivery of entire exclusive possession of the Demised Leased Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00.

Appears in 1 contract

Sources: Lease (Regeneration Technologies Inc)

Security Deposit. 6.01 Subject Notwithstanding any other provision of this Lease, the Lessee may on any date exercise its option to purchase the entire interest of the Lessor in the Leased Property by an irrevocable deposit by it with the Trustee of (i) an amount of cash which, together with amounts on deposit in the Lease Payment Fund, is sufficient to pay the Lessee’s unpaid Lease Payments, in accordance with the Lease Payment schedule set forth in Exhibit A hereto, or (ii) Defeasance Obligations together with cash, if required, in such amount as will, in the opinion of an independent certified public accountant (which opinion shall be addressed, delivered to the Trustee and acceptable to the Certificateholder), together with interest to accrue thereon, and money then on deposit in the Lease Payment Fund, together with interest thereon, be fully sufficient to pay all of the unpaid Lease Payments on the Lease Payment Dates or by prepayment thereof pursuant to Section 10.2 hereto, as the Lessee shall instruct at the time of said deposit and be sufficient to discharge the Certificates in accordance with the provisions of the Trust Agreement. In the event of a deposit pursuant to this Section 6.02, Tenant shall have deposited with Landlord, on (and provided that the Lessee has paid all Additional Payments due or before accrued through the date hereof the sum of $4,010,000.00. as security for the faithful performance and observance by Tenant such deposit), all obligations of the termsLessee under this Lease, and all security provided by this Lease for said obligations, shall cease and terminate, excepting only the obligation of the Lessee to make, or cause to be made, Lease Payments from the deposit made by the Lessee pursuant to this Section, and the entire interest of the Lessor in the Leased Property shall vest in the Lessee on the date of said deposit automatically and without further action by the Lessee or the Lessor (except as provided herein); provided, that vesting of title to the Leased Property in the Lessee shall be subject to the subsequent payment of Lease Payments made from said deposit in accordance with the provisions and conditions of this lease; it is agreed that in the event Tenant defaults in respect of any of the terms, provisions Lease. Said deposit shall be deemed to be and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required shall constitute a special fund for the payment of any rent the Lease Payments in accordance with the provisions of this Lease. The Lessor shall execute and additional rent or any other sum deliver such further instruments and take such further action as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend requested by reason of Tenant's default in respect of any the Lessee for carrying out the title transfer of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00Leased Property.

Appears in 1 contract

Sources: Lease Agreement

Security Deposit. 6.01 Subject Upon execution of this Lease, and in addition to payment of the provisions of Section 6.02first month's rent, Tenant shall have deposited with Landlordpay to Landlord an additional sum equal to Four Hundred Fifty Thousand Dollars ($450,000.00), on or before as a deposit to be held by Landlord in trust for the date hereof benefit of Landlord and Tenant (to the sum extent the deposit is ultimately refundable to Tenant) during the Term of $4,010,000.00. this Lease as security for the payment of all rent and any additional charges due hereunder, and for the faithful performance and observance by Tenant of all other obligations imposed upon Tenant under the terms, provisions and conditions terms of this lease; it is agreed that Lease. If Tenant fails to perform or defaults in the event Tenant defaults in respect performance of any of the terms, provisions and conditions terms of this leaseLease, including, but not limited towithout limitation, the payment of rent and additional any rent, additional charges or other sums due Landlord, then Landlord may, at its option, and without prejudice to any other remedy which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may usehave on account thereof, appropriate and apply the entire security deposit and any other monies of Tenant held by Landlord, or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (much thereof as set forth in Section 6.02 hereof) may be necessary to the extent required for compensate Landlord toward the payment of any rent and additional rent amounts then due from Tenant, or toward any other sum as to which Tenant is in loss, damage or expense sustained by Landlord resulting from such default or for any sum which Landlord may reasonably expend or may be required to expend by reason on the part of Tenant's , and in such event, Tenant shall forthwith, upon demand by Landlord, restore the security deposit to its original sum. The use of the security deposit by Landlord, as outlined herein, shall not take serve to take the Tenant out of default in respect of any of under the Lease and shall not limit or restrict the legal or equitable remedies available to Landlord otherwise available under this Lease. In the event Tenant shall fully and faithfully comply with all the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord Lease and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to promptly pay all Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this leasepayments as they fall due, the security shall deposit will be returned to Tenant no later promptly, but not more than ten thirty (1030) days days, after the Expiration Date expiration of the Term and after delivery of entire possession of Tenant vacates the Demised Premises Premises, as required herein. Landlord shall not be required to Landlord. In the event Landlord applies invest or retains any portion or all of otherwise retain the security depositeddeposit in any interest bearing account. Interest earned on such security deposit, Tenant if any, shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00remain with Landlord.

Appears in 1 contract

Sources: Lease Agreement (SLS International Inc)

Security Deposit. 6.01 Subject Resident has deposited with Landlord a security deposit (the “Deposit”) in the amount identified above to secure the Resident’s full and faithful performance of this Agreement. Upon termination of this Agreement by reason of Resident’s default hereunder or the expiration of the Term, Landlord may deduct from the Deposit an amount sufficient to pay: (a) any damages as a result of Resident’s non- payment of any portion of Total Rent or non-fulfillment of the Term of this Lease including Resident’s failure to enter into possession or abandonment of the Unit; (b) any damages to the provisions Unit, Apartment, or Community for which the Resident is responsible; (c) any unpaid bills which become due by virtue of Section 6.02Resident’s occupancy, Tenant or any utility expense that may be forwarded to Landlord due to Resident’s non-payment; (d) any costs of re-renting the Unit after a breach of this Agreement by Resident; (e) any repair work or cleaning contracted for by Resident with third parties; (f) any court costs incurred by Landlord in connection with terminating the tenancy; and (g) any other damages which Landlord may sustain which may then be permitted use of the Deposit under the applicable laws of the state in which the Community is located (the “State”). Application of the Deposit in order to satisfy all or part of Resident’s obligations shall not prevent Landlord from claiming damages in excess of the Deposit. Resident shall have deposited with Landlord, on or before no right to have the date hereof the sum Deposit applied to any portion of $4,010,000.00Total Rent which may become due under this Agreement. as security for the faithful performance Upon a sale and observance by Tenant conveyance of the termsCommunity, provisions Landlord may transfer the Deposit to the new owner and conditions upon such transfer, all of this lease; it is agreed that in the event Tenant defaults in respect of any of the terms, provisions Landlord’s liability for such Deposit shall terminate and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required Landlord shall have no further liability under this lease and for events occurring after such transfer. Upon termination of this Lease, Resident shall provide the expiration of any applicable cure period, Landlord may use, apply landlord in writing with a forwarding address or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as new address to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of amount due from the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant sent. If Resident fails to applicable law) provide such forwarding address, then the amount due to the Resident shall be paid sent to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all last known address of the terms, provisions, covenants and conditions of this lease, the security shall Resident. Any Security Deposits received at ▇▇▇▇▇▇▇ Coastal will be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00.held in an escrow account at:

Appears in 1 contract

Sources: Lease Agreement

Security Deposit. 6.01 Subject Upon the signing of this deed the Lessee will pay to the Lessor a security deposit in the amount (if any) stated in Item 6. At the expiration or sooner determination of this lease the Lessor shall be entitled to deduct from that deposit, or apply that deposit in or towards satisfaction of, any amount that may be or become payable by the Lessee to the Lessor pursuant to the provisions of Section 6.02, Tenant this lease. The base rent for each year or part of a year commencing on an anniversary of the commencing date of the term of this lease (appropriately apportioned if necessary to apply to the part of a year) shall have deposited with Landlord, on or before be the date hereof the sum of $4,010,000.00. as security base rent for the faithful performance and observance then previous year multiplied by Tenant the Consumer Price Index (Sydney - all groups) number for the last quarter before that anniversary divided by that Index number for the same quarter in the previous calendar year. By way of further rent the Lessee will pay to the Lessor on demand an amount equal to the percentage stated in Item 7 of the termsoutgoings (as defined in clause 25) (a) For the purposes of clause 24A or clause 24B, provisions whichever is applicable, "the outgoings" means all local council rates and conditions of this lease; it is agreed that charges, water sewerage and drainage rates and charges not referred to elsewhere in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, includingland tax as assessed, but and all insurance premiums payable, in relation to the premises (or if the premises are only part of a property then in relation to that property). (b) For the purposes of this clause 25 land tax shall be taken to be the tax which would have been payable if it had been assessed on the basis that (i) the premises (of if the premises are only part of a property then that property) were the only land owned by the Lessor and were not limited tosubject to a special trust (within the meaning of the Land Tax Management Act 1956), and (ii) the payment Lessor was not a company classified under Section 29 of rent and additional rent, which default continues after any notice required under that Act as a non-concessional company. If this lease is not renewed or if its term is not extended and if the Lessee holds over after the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part lease with the consent of the security so deposited or Lessor then the proceeds of Lessee will become a monthly tenant (the Letter of Credit (tenancy being terminable by one months written notice given by either party and expiring on any day) at the same rent per month as set forth in Section 6.02 hereof) to is then payable and on the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants same terms and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited as are contained in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall so far as they can be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00applied.

Appears in 1 contract

Sources: Lease of Commercial Premises

Security Deposit. 6.01 Subject The Landlord herewith acknowledges receipt of the Security Deposit in the amount stated in Section 1 hereof, which it is to the provisions of Section 6.02, Tenant shall have deposited with Landlord, on or before the date hereof the sum of $4,010,000.00. retain as security for the faithful performance of all covenants, conditions and observance agreements of this Lease. Landlord shall have the right (but not the obligation) to apply the Security Deposit upon Rent or other obligations in arrears or upon damages for the Tenant’s failure to perform the said covenants, conditions and agreements. Any such application by Tenant Landlord shall be credited to such obligations of Tenant, but shall not constitute a cure of Tenant’s Default barring Landlord from pursuing any other remedies available under this Lease or at law. Upon such application of the termsSecurity Deposit, provisions and conditions of this lease; it is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee obligated to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than replace such amounts so applied within ten (10) days after demand therefor by Landlord and, upon Landlord’s request, increase the Expiration Date and after delivery amount of entire such Security Deposit to an amount not greater than two hundred fifty (250%) percent of the original amount of the Security Deposit. Landlord’s right to the possession of the Demised Premises to Landlord. In the for non-payment of Rent or for any other reason shall not in any event Landlord applies or retains any portion or all be affected by reason of the security depositedfact that the Landlord holds or applies this Security Deposit. Upon the expiration of the Lease Term, surrender of possession of the Demised Premises by Tenant shall forthwith restore and Tenant’s full and complete performance of all the amount so applied or retained so that at all times terms and conditions of this Lease, the amount deposited Security Deposit shall be $4,010,000.00returned to the Tenant without interest. Landlord shall have the right to apply such Security Deposit to any liquidated damages calculated pursuant to Section 21.2 and any undisbursed portion of the Security Deposit may be retained by Landlord and applied to any obligations of Tenant or damages incurred by reason of Tenant’s subsequent Default or breach. The Landlord shall not be obliged to keep the Security Deposit as a separate fund or pay interest thereon but may commingle the Security Deposit with its own funds.

Appears in 1 contract

Sources: Lease (NightHawk Radiology Holdings Inc)

Security Deposit. 6.01 Subject to the provisions of Section 6.02, Tenant shall have deposited with Landlord, on On or before the date hereof thirtieth (30th) after the sum mutual execution of this Lease, Tenant will deliver a Security Deposit to Landlord in the form of an irrevocable letter of credit (the “Letter of Credit”), which Letter of Credit shall: (a) be in the initial amount of $4,010,000.00. as security for 2,000,000.00; (b) be issued on a commercially reasonable form of Letter of Credit that is reasonably acceptable to Landlord, Tenant and the faithful performance and observance by Tenant issuer of the terms, provisions Letter of Credit; (c) name Landlord as its beneficiary; and conditions (d) be drawn on an FDIC insured financial institution reasonably satisfactory to the Landlord. The Letter of this lease; it is agreed that in Credit (and any renewals or replacements thereof) shall be for a term of not less than 1 year (or such shorter period of time as may be required to accommodate the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and reductions provided below or the expiration of any applicable cure periodthe Term). Tenant agrees that it shall from time to time, as necessary, whether as a result of a draw on the Letter of Credit by Landlord may usepursuant to the terms hereof, apply or retain the whole or any part a reduction of the security so deposited or the proceeds amount of the Letter of Credit as permitted hereunder, or as a result of the expiration of the Letter of Credit then in effect, renew or replace the original and any subsequent Letter of Credit so that a Letter of Credit, in the amount required hereunder, as reduced if applicable, is in effect until a date which is at least 60 days after the earlier of (i) the date the required amount of the Letter of Credit is reduced to zero in accordance with the last full paragraph of this Section VI; or (ii) the date this Lease expires or terminates. If Tenant fails to furnish such renewal or replacement at least 60 days prior to the stated expiration date of the Letter of Credit then held by Landlord, Landlord may draw upon such Letter of Credit and hold the proceeds thereof (and such proceeds need not be segregated) as a Security Deposit pursuant to the terms of this Article VI. Any renewal or replacement of the original or any subsequent Letter of Credit shall meet the requirements for the original Letter of Credit as set forth above, except that such replacement or renewal shall be issued by an FDIC insured financial institution reasonable satisfactory to the Landlord at the time of the issuance thereof. If Landlord draws on the Letter of Credit as permitted in Section 6.02 hereof) this Lease or the Letter of Credit, such draw may be a full or partial draw and all funds obtained by Landlord shall be applied first to any past due payments of Rent. If and to the extent required that there are any drawn funds that remain after Landlord’s application to past due Rent payments (the “Excess Funds”), Landlord may elect to: (1) return the Excess Funds to Tenant, in which case Tenant shall promptly restore the Letter of Credit to the amount available immediately prior to the draw by Landlord; or (2) retain the Excess Funds as a cash security deposit, in which case, Tenant shall promptly restore the Security Deposit to the amount existing immediately prior to the draw by Landlord by providing Landlord with cash or an alternate Letter of Credit (in compliance with the requirements set forth in this Section VI) for the payment difference between the Excess Funds and the amount of the Security Deposit immediately prior to Landlord’s draw; provided, however, in no event will Landlord be entitled to a total security deposit in excess of $2,000,000 (as such amount may be reduced in accordance with the following paragraph). Any restored or alternate Letter of Credit provided by Tenant under this paragraph shall be in the proper amount provided for above in this paragraph and shall meet the other requirements for the original Letter of Credit pursuant to this Article VI. Subject to the remaining terms of this Article VI, and provided that there has been no Monetary Default during the ninety (90) days immediately preceding the effective date of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any reduction of the termsSecurity Deposit, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security Tenant shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member have the right to reduce the amount of the New York Clearing House Association located in Security Deposit (i.e., the City Letter of New York selected by Landlord Credit) so that the reduced Letter of Credit amounts will be as follows: (w) $1,500,000.00 effective as of June 1, 2017; (x) $1,000,000.00 effective as of June 1, 2018; (y) $500,000.00 effective as of June 1, 2019; and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable lawz) shall be paid to Tenant annually provided $0.00 effective as of June 1, 2020. If Tenant is not entitled to reduce the Security Deposit (i.e., the Letter of Credit) as of a particular reduction effective date due to the occurrence of a Monetary Default during the ninety (90) days immediately preceding the effective date of any reduction of the Security Deposit, then in default Tenant’s right to reduce the Security Deposit will be delayed until ninety (90) consecutive days have passed without the occurrence of a Monetary Default, plus three (3) additional days for each day of delay resulting from the occurrence of a Monetary Default during the ninety (90) day period preceding the scheduled Security Deposit reduction date. Any reduction in the observance or performance Letter of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security Credit shall be returned to accomplished by Tenant no later than ten (10) days after providing Landlord with a substitute letter of credit in the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00reduced amount.

Appears in 1 contract

Sources: Office Lease Agreement (Piper Jaffray Companies)

Security Deposit. 6.01 Subject to the provisions Upon its execution of Section 6.02this Lease, Tenant shall have deposited will deposit with Landlord, on or before the date hereof Landlord the sum of $4,010,000.00. set forth in Section 1.1 as security for the full and faithful performance and observance of every provision of this Lease to be performed by Tenant of the terms, provisions and conditions ("Security Deposit"). If Tenant Defaults with respect to any provision of this lease; it is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, Lease including, but not limited to, the provisions relating to the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure periodor other charges, Landlord may use, apply or retain the whole all or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required Security Deposit for the payment of any rent and additional rent or other charge in Default, or for the payment of any other sum as to which Tenant is in default or for any sum amount which Landlord may reasonably expend spend or may be required become obligated to expend spend by reason of Tenant's default in respect of Default, or to compensate Landlord for any of the terms, covenants and conditions of this lease, including but not limited to, any damages other loss or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to damage which Landlord may be entitled pursuant suffer by reason of Tenant's Default. If any portion of the Security Deposit is so used or applied, Tenant shall, within ten days after written demand therefor, deposit cash with Landlord in an amount sufficient to applicable law) restore the Security Deposit to the full amount originally deposited with Landlord, and Tenant's failure to do so shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance a material breach of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodLease. In the event that If Tenant shall fully and faithfully comply with all perform every provision of this Lease to be performed by it, the Security Deposit or so much thereof as has not theretofore been applied by Landlord, shall be returned, without payment of interest or other increment for its use, to Tenant (or, at Landlord's option, to the last assignee of Tenant's interest hereunder) at the expiration of the termsTerm. The making by Tenant of the Security Deposit, provisionsor the application thereof by Landlord in the manner originally deposited with Landlord, covenants and conditions shall not constitute nor be construed as a limitation upon the exercise by Landlord of any other rights or remedies provided to Landlord under the terns of this lease, Lease in the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery event of entire possession of the Demised Premises to LandlordTenant's Default. In the event Landlord applies sells the Center, then Landlord may assign the Security Deposit to the purchaser of Landlord's interest in the Premises without liability to Tenant. No trust relationship is created in this Lease between Landlord and Tenant with respect to the Security Deposit. Upon Tenant's written request, the Security Deposit shall be invested in a joint interest bearing account at The Bank of California or retains any other recognized financial institution selected by Landlord which is reasonably acceptable to Tenant. At Tenant's request it shall be held in a pass book account or such other form as will allow Landlord to draw all or any portion or all of the security depositedprincipal thereof from time to time or at any time in accordance with this Article. As long as Tenant is not in Default under this Lease, Tenant shall forthwith restore be entitled to receive, directly, any interest earned on the amount so applied or retained so that at all times the amount deposited Security Deposit, but only Landlord and not Tenant shall be $4,010,000.00entitled to withdraw principal. Any interest accruing during any period in which there exists an outstanding and uncured default of Tenant, as evidenced by a statement of such Default delivered to such financial institution by Landlord, and on which such financial institution shall be entitled to rely without further inquiry, shall be added to the principal amount of such Security Deposit. At the expiration of the fifth year of the Term if Tenant has not been in material Default under this Lease since the commencement of the Term the Security Deposit shall be returned to Tenant.

Appears in 1 contract

Sources: Industrial Building Lease (Celerity Group Inc)

Security Deposit. 6.01 Subject to the provisions Concurrently with Tenant's execution of Section 6.02this Lease, Tenant shall have deposited deposit with Landlord, on or before the date hereof Landlord the sum set forth in Section 6 of $4,010,000.00. Exhibit A, which sum shall be held by Landlord as security a "Security Deposit" for the faithful performance and observance by Tenant of Tenant's covenants and obligations under this Lease, it being expressly understood that the termsdeposit shall not be considered an advance payment of Rent or a measure of Landlord's damage in case of default by Tenant. If Tenant fully and faithfully performs its obligations under this Lease, provisions and conditions of this lease; it is agreed that in the event Tenant defaults in respect of any delivers possession of the termsPremises to Landlord, provisions and conditions of in accordance with this lease, including, but not limited toLease, the payment of rent and additional rentSecurity Deposit, which default continues after any notice required under this lease and or balance thereof then held by Landlord, shall be returned to Tenant at the expiration of any applicable the Term and after Tenant has delivered and surrendered to Landlord possession of the entire Premises and further provided that no default by Tenant under the Lease shall have occurred and be continuing without cure periodat such time. Landlord may, Landlord may usebut shall not be obligated to, use or apply or retain the whole all or any part of the security so deposited or the proceeds Security Deposit, as necessary, to cure any default of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodLease. In the event that all or any portion of the Security Deposit is applied by Landlord to cure any default or pay for any cost, expense, damage or loss pursuant to this Lease, Tenant shall, within five (5) days of Landlord's demand, deposit with Landlord such sums as may be necessary to restore the Security Deposit to its original amount. The failure of Tenant to restore the Security Deposit to its full amount shall fully and faithfully comply with entitle Landlord to all of the terms, provisions, covenants same rights and conditions remedies Landlord has for non-payment of this lease, the security Rent by Tenant. Landlord shall be returned free to Tenant no later than ten (10) days after commingle the Expiration Date and after delivery of entire possession of the Demised Premises to Security Deposit with Landlord's own funds. In the event of a transfer by Landlord applies or retains of Landlord's interest in the Premises, Landlord may deliver the Security Deposit to the transferee of Landlord and Landlord shall thereupon be discharged from any portion or all further liability to Tenant with respect to such Security Deposit, provided such transferee assumes Landlord's obligations with respect to such Security Deposit. In the event of an assignment of this Lease by Tenant, the security depositedSecurity Deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility for the return of such Security Deposit to the assignor. Tenant shall forthwith restore not assign or otherwise encumber or pledge the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00Security Deposit.

Appears in 1 contract

Sources: Lease Agreement (Affymetrix Inc)

Security Deposit. 6.01 Subject to the provisions of Section 6.02, (a) Tenant shall have deposited deposit concurrently with LandlordT▇▇▇▇▇'s execution of this Lease, on or before with Landlord the date hereof amount set forth in Article 1, in the sum form of $4,010,000.00a Letter of Credit (hereinafter defined). The Letter of Credit, is sometimes referred to herein as the "Security Deposit," and is security for the faithful performance and observance by Tenant of the terms, provisions and conditions terms of this lease; it is agreed that Lease to be performed by T▇▇▇▇▇, and not as prepayment of rent. Tenant hereby grants to Landlord a security interest in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this leaseSecurity Deposit, including but not limited to, any damages to replenishments thereof. Landlord may apply such portion or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member portions of the New York Clearing House Association located Security Deposit as are reasonably necessary for the following purposes: (i) to remedy any default by Tenant in the City payment of New York selected Base Monthly Rent or Additional Rent or a late charge or interest on defaulted rent, or any other monetary payment obligation of Tenant under this Lease (beyond applicable notice and cure periods); (ii) to repair damage to the Leased Premises, the Building or the Outside Areas caused by Tenant in violation of this Lease; (iii) to clean and restore and repair the Leased Premises, the Building or the Outside Areas following their surrender to Landlord if not surrendered in the condition required pursuant to the provisions of Article 2 and such condition requiring cleaning, restoration or repair is the responsibility of Tenant under the terms of this Lease, (iv) to remedy any interest earned thereon other default of Tenant (less beyond applicable notice and cure periods) including, without limitation, paying in full on Tenant's behalf any administrative fee sums claimed by materialmen or contractors of Tenant to be owing to them by Tenant for work done or improvements made at Tenant's request to the Leased Premises, and (v) to cover any other expense, loss or damage which Landlord may be entitled pursuant at any time suffer due to applicable law) shall be paid to Tenant annually provided Tenant is not then in Tenant's default in the observance or performance of any of its obligations under this lease which continues after Lease (beyond applicable notice and cure periods). In this regard, Tenant hereby waives any restriction on the expiration uses to which the Security Deposit may be applied as contained in Section 1950.7(c) of the California Civil Code and/or any applicable cure periodsuccessor statute. In the event that the Security Deposit or any portion thereof is so used, Tenant shall fully and faithfully comply with all of the termspay to Landlord, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than within ten (10) business days after written demand therefore, an amount in cash sufficient to restore the Expiration Date and after delivery of entire possession Security Deposit to the full original sum. Landlord shall not be deemed a trustee of the Demised Security Deposit. Landlord may use the Security Deposit in Landlord's ordinary business and shall not be required to segregate it from Landlord's general accounts. Tenant shall not be entitled to any interest on the Security Deposit. If Landlord transfers the Building or the Property during the Lease Term, Landlord shall transfer the Security Deposit to any subsequent owner in conformity with the provisions of Section 1950.7 of the California Civil Code and/or any successor statute, in which event the transferring landlord shall be released from all liability for the return of the Security Deposit. Tenant specifically grants to Landlord (and Tenant hereby waives the provisions of California Civil Code Section 1950.7 to the contrary) a period of sixty (60) days following a surrender of the Leased Premises by Tenant to LandlordLandlord within which to inspect the Leased Premises, make required restorations and repairs, receive and verify workmen's b▇▇▇▇▇▇▇ therefor, cure any other defaults (beyond applicable notice and cure periods) of Tenant under this Lease, deduct any damages, and prepare a final accounting with respect to the Security Deposit. In no event shall the event Landlord applies Security Deposit or retains any portion or all thereof, be considered prepaid rent. (b) The Letter of Credit shall comply with the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00.following terms:

Appears in 1 contract

Sources: Lease Agreement (EBR Systems, Inc.)

Security Deposit. 6.01 Subject Tenant will deposit with Lessor a security deposit of $ (the “Security Deposit”) to secure the provisions performance of Section 6.02Tenant’s obligations under this Lease, Tenant shall have deposited with Landlordincluding, without limitation, the full and timely payment of rent and other charges, performing repairs, and cleaning the Premises. Receipt is hereby acknowledged of deposit monies in the amount of $ , and the balance of the Security Deposit in the amount of $ is due on or before the date hereof lease commences or according to the sum following payment schedule: The Security Deposit may be used during the Term to repair any damages caused by the negligence or willful conduct of $4,010,000.00. as security for the faithful performance Tenant or its invitees, including any necessary maintenance, repair, and observance by Tenant replacement of the termsappliances, provisions improvements, fixtures, equipment, and conditions other systems constituting par t of, or otherwise serving, the Premises. Tenant shall replenish the Security Deposit within 7 days of this lease; it is agreed that in the event Tenant defaults in respect written notice from Lessor of any deductions taken from the Secu rity Deposit by Lessor pursuant to this Lease. Lessor shall not be required to keep this Security Deposit in a separate fund but may commingle the Security Deposit with its own fu nds. Lessor may transfer the Security Deposit to the owner of the termsPremises without notice to ▇▇▇▇▇▇, provisions provided that Tenant may request the name and conditions address of the owner at any time, provided such request is in writing and delivered to Lessor as allowed by this leaseLease. If at any time Tenant vacates or abandons the Premise s, including, but not limited toor if ▇▇▇▇▇▇’s right to possession of the Premises is terminated by the Lessor prior to the expiration of the Term, the entire amount of the Security Deposit, up to the remaining rent and ot her charges due hereunder, shall be deemed forfeited and transferred to the current holder of the Security Deposit. The transfer of any porti on of the Security Deposit to Lessor or owner shall be not deemed a payment in lieu of rent and additional rentTenant shall remain responsible for all obligations of Tenant hereunder. Te nant may also be liable to Lessor for damages and losses in excess of the Security Deposit, which default continues after and any notice required under transfer of the Security Deposit pursuant to this lease and section shall not be deemed a waiver of any right s or Lessor hereunder. No later than 60 days following the expiration of any applicable cure period, Landlord may use, apply the Term (or retain the whole or any part earlier termination of the security so deposited or Lease), the proceeds balance of the Letter of Credit (as set forth in Section 6.02 hereof) Security Deposit shall be returned to Tenant at its last known address, plus interest accruing on the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any balance of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry Security Deposit as required by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in municipal code for the City of New York selected by Landlord and any interest earned thereon (Boulder, less any administrative fee to which Landlord may be entitled pursuant to applicable law) unpaid rent, and less any unpaid late fees and other charges due under the terms of this Lease. If any deductions are taken from the Security Deposit, Lessor shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance provide a written accounting of any of its obligations under this lease which continues after notice such deductions and the expiration reasons for the same. Interest will only be earned on the Security Deposit if the Premises is a resid ential premises located within the City of any applicable cure periodBoulder. In the event that Tenant shall fully multiple Tenants are parties to this Lease, unless otherwi se agreed by Lessor in its sole discretion, (i) all Tenants agree and faithfully comply with all understand that only one check will be issued for the balance of the termsSecurity Deposit, provisions(ii) such check will have the names of all Tenants, covenants and conditions of this lease, the security shall be returned to Tenant (i ii) Lessor will have no later than ten (10) days after the Expiration Date and after delivery of entire possession responsibility for allocating any portion of the Demised Premises Security Deposit to Landlordany one Tenant, such allocation to be handled solely as between the Tenants, and (iv) the Security Deposit and the required notice hereunder will be mailed to the last known address of the first Tenant listed above, and if no such address was provided to Lessor, to the last known address of any Tenant supplying such information to Lessor. If Tenant fails to provide a last known address to Lessor, Tenant acknowledges that fees may be deducted from the Security Deposit if must reissue the refund check. In the event Landlord applies or retains any portion or all Lessor has agreed to allow Tenant to sublease the Premises, ▇▇▇▇▇▇ will retain the Security Deposit until the ex piration of the security deposited, Term of this Lease (or earlier termination of the Term pursuant to this Lease). Lessor will only return the balance of the Security Deposit to the Tenant shall forthwith restore (not the amount so applied or retained so that at all times subtenant) unless ▇▇▇▇▇▇ has recei ved written permission from the amount deposited shall be $4,010,000.00Tenant and the subtenant to do otherwise.

Appears in 1 contract

Sources: Lease Contract

Security Deposit. 6.01 Subject to Concurrently with the provisions execution of Section 6.02this Lease, Tenant shall have has deposited with Landlord, on or before the date hereof Owner the sum stated in the attached Article 1, receipt of $4,010,000.00. as security for which is hereby acknowledged, to secure the faithful performance and observance by Tenant of the terms, provisions and conditions of this lease; it is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the all terms, covenants and conditions of this leaseLease by Tenant to be kept and performed during the term hereof. Said sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the term hereof. If Tenant defaults with respect to any provision of this Lease, including but not limited to the provisions relating to the payment of rent, Landlord may (but shall not be required to) use, apply or retain all or any damages part of this security deposit for the payment of any rent or deficiency accrued before any other sum in default, or after summary proceedings for the payment of any other amount when Landlord may spend or become obligated to spend by reason of Tenant's default or to compensate Landlord for any other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to loss or damage which Landlord may suffer by reason of Tenant's default. If any portion of said deposit is so used or applied, Tenant shall, upon demand therefore, 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 pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodinterest on such deposit. In the event that If Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions perform every provision of this leaseLease to be performed by it, the security deposit or any balance thereof shall be returned to Tenant no later than ten (10or, at Landlord's option, to the last assignee of Tenant's interests hereunder) days after at the Expiration Date and after delivery of entire possession expiration of the Demised Premises to Landlord. In the event Lease term, provided that Landlord applies or retains any portion or all of may retain the security deposited, deposit until such time as any amount due from Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00in accordance with Articles 5 and 6 hereof has been determined and paid in full.

Appears in 1 contract

Sources: Office Space Lease (Acubid Com Inc)

Security Deposit. 6.01 Subject to On the provisions of Section 6.02Effective Date, Tenant shall have deposited deposit with Landlord, on or before Landlord the date hereof amount set forth in Section M of the sum of $4,010,000.00. Summary as security for the faithful performance and observance by Tenant of the terms, provisions and conditions of this lease; it is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease Lease, and not as prepayment of rent (the “Security Deposit”). Landlord may from time to time apply such portion of the Security Deposit as is reasonably necessary for the following purposes: (i) to remedy any Event of Tenant’s Default in the payment of rent; and (ii) to remedy any other Event of Tenant’s Default to the extent permitted by Law and, in this regard, Tenant hereby waives any restriction on the uses to which continues after notice and the expiration Security Deposit may be put contained in California Civil Code Section 1950.7, 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 act or omission of Tenant or any applicable cure periodofficer, employee, agent or invitee of Tenant. In the event that the Security Deposit or any portion thereof is so used, Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned agrees to Tenant no later than pay to Landlord within ten (10) days after its receipt of written demand an amount in cash sufficient to restore the Expiration Date and after delivery of entire possession Security Deposit to the full original amount. Landlord shall not be deemed a trustee of the Demised Security Deposit, may use the Security Deposit in business, and shall not be required to segregate it from its general accounts. Tenant shall not be entitled to any interest on the Security Deposit. If Landlord transfers the Premises during the Lease Term, Landlord shall pay the Security Deposit to any transferee of Landlord. In ’s interest in conformity with the provisions of California Civil Code Section 1950.7 and/or any successor statute, in which event the transferring Landlord applies or retains any portion or will be released from all liability for the return of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00Security Deposit.

Appears in 1 contract

Sources: Lease Agreement (Concentric Medical Inc)

Security Deposit. 6.01 Subject to the provisions Upon execution of Section 6.02this Lease, Tenant shall have deposited deposit with LandlordLandlord the Security Deposit, on or before as prescribed in the date hereof the sum of $4,010,000.00. foregoing Lease Declarations, as security for the faithful performance and observance by Tenant of the terms, provisions and conditions of this lease; it Lease. It is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum amount payable hereunder as to which Tenant is in default under this Lease, or for any sum which Landlord may reasonably expend expend, or may be required to expend expend, by reason of Tenant's ’s default in respect of any of the terms, covenants and conditions of this leaseLease, including including, but not limited to, any damages or deficiency in the re-letting of the Demised Premises, whether such damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The If Landlord uses, applies or retains any part or all of said security, as permitted hereunder, Tenant shall within five (5) days following written demand, deposit with Landlord such amount as is necessary to restore the security to the amount Tenant is required to deposit with Landlord under this Article and same shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure perioddeemed as additional rent hereunder. In the event that If Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this leaseLease, the security Landlord is then holding shall be returned to Tenant no on the later than ten to occur of: (10a) days the date fixed as the end of the Term hereof; (b) after the Expiration Date and after delivery ▇▇▇▇▇▇ delivers of entire possession of the Demised Premises to Landlord in the condition required under this Lease; or (c) sixty (60) days following the Expiration Date of the Term. If the Building is sold or leased, Landlord shall transfer the security to the purchaser or lessee for the benefit of Tenant and Landlord, after giving notice to Tenant, shall be deemed released by Tenant from all liability for the return of such security and Tenant shall look solely to the new owner or lessee for the return thereof. Tenant further covenants that it will not assign or encumber, or attempt to assign or encumber, the monies deposited herein as security, and that neither Landlord nor its successors or assigns shall be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance. Notwithstanding anything in this Article 3 to the contrary, in lieu of a cash deposit by Tenant for the Security Deposit, Tenant shall deposit with Landlord a clean, irrevocable and unconditional letter of credit (“Letter of Credit”) issued by and drawn upon by a member bank of the New York Clearing House Association, naming Landlord as beneficiary, in the full amount of the Security Deposit, in form reasonably acceptable to Landlord. At any time that Tenant is in default under this Lease beyond applicable notice and cure periods, including, among other things, the filing of a bankruptcy petition by or against Tenant, or if Landlord at any time receives notice that the Letter of Credit will not be renewed or will not otherwise extend for sixty (60) days beyond the Expiration Date of the Term, Landlord shall have the right to draw upon the Letter of Credit, without affirmative notice to Tenant, and apply the proceeds in accordance with the provisions of this Lease. If Landlord shall have drawn down the Letter of Credit and applied all or a portion thereof, then Tenant shall deposit with Landlord, within five (5) business days’ after written notice from Landlord, an amount of cash or an amendment to the Letter of Credit sufficient to bring the balance of the Security Deposit held by Landlord under this Article 3 to the full amount of Security Deposit required hereunder. The failure by Tenant to deposit such additional amount or provide such amendment within the foregoing time period shall be deemed a default pursuant to Article 28 of this Lease. For the avoidance of doubt and notwithstanding anything in the Lease to the contrary, Landlord shall be expressly allowed to apply proceeds of the Letter of Credit to any prepetition rent obligations, (including without limitation the repayment of the lease concessions described in Article 2 above), post-petition rent obligations, or rejection damages, irrespective of the claims cap provided in the Bankruptcy Code. Notwithstanding anything contained in this Lease to the contrary, provided that Tenant is not in default of this Lease beyond any applicable notice and cure periods, then Tenant may, upon written notice to Landlord, decrease the amount of the Security Deposit (in the form of a Letter of Credit) as follows: (i) to $2,244,165.00 upon the twelve (12) month anniversary of the Rent Commencement Date; (ii) to $1,632,120.00 upon the twenty-four (24) month anniversary of the Rent Commencement Date; and (iii) to $816,060.00 upon the thirty-six (36) month anniversary of the Rent Commencement Date. Such decreases in the Letter of Credit amount described above shall be accomplished by amendments to the then-existing Letter of Credit in a form that is reasonably satisfactory to Landlord and Landlord shall execute such documents as may be reasonably necessary to complete such reduction, as required by the issuing bank. Notwithstanding the foregoing, Tenant hereby acknowledges that as of the date of this Lease, Tenant is still in the process of obtaining the Letter of Credit, and Tenant may place the Security Deposit in the form of a “cash” security deposit upon execution of this Lease. In the event Landlord applies Tenant elects to place the Security Deposit in the form of Cash, then (i) Tenant shall, on or retains any portion or all before March 31, 2025, have the Letter of Credit delivered to Landlord, and (ii) within five (5) days after ▇▇▇▇▇▇▇▇’s receipt of the Letter of Credit, Landlord shall return the cash security depositeddeposit to Tenant. Tenant’s failure to provide Landlord with a Letter of Credit by the foregoing deadline shall constitute a material default hereunder following a five (5) business day notice and cure period, which notwithstanding anything to this Lease to the contrary may be sent solely via email to Tenant shall forthwith restore the amount so applied or retained so that at: ▇▇▇▇▇▇▇.▇▇▇▇@▇▇▇▇▇▇▇▇.▇▇▇, with a copy to ▇▇▇▇▇▇’s attorney at all times the amount deposited shall be $4,010,000.00▇▇▇▇▇▇▇▇▇▇▇@▇▇▇▇▇.▇▇▇.

Appears in 1 contract

Sources: Lease Agreement (BuzzFeed, Inc.)

Security Deposit. 6.01 Subject to the provisions Concurrently with SUBLESSEE's execution and delivery of Section 6.02this Sublease, Tenant SUBLESSEE shall have deposited deposit with Landlord, on or before the date hereof SUBLESSOR the sum of $4,010,000.004,054.00 (the "Deposit"). The Deposit shall be held by SUBLESSOR as security for the faithful performance and observance by Tenant SUBLESSEE of the terms, provisions and conditions of this lease; it Sublease. It is agreed that in the event Tenant SUBLESSEE defaults in with respect of to any of the terms, provisions and conditions of this leaseSublease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord SUBLESSOR may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) Deposit to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant SUBLESSEE is in default or for any sum which Landlord SUBLESSOR may reasonably expend or may be required to expend by reason of TenantSUBLESSEE's default in with respect of to any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodSublease. In the event that Tenant SUBLESSEE shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this leaseSublease, the security Deposit shall be returned to Tenant no later than ten (10) days SUBLESSEE after the Expiration Date date fixed as the end of this Sublease, and after delivery of entire possession of the Demised Premises demised premises to LandlordSUBLESSOR, except for any amounts that SUBLESSOR had deducted therefrom that are needed by SUBLESSOR to cure defaults of SUBLESSEE under this Sublease or to compensate SUBLESSOR for damages or which SUBLESSEE is liable pursuant to this Sublease. In If SUBLESSOR uses or applies all or a portion of the event Landlord applies or retains any portion or Deposit, SUBLESSEE shall within ten (10) days deposit cash with SUBLESSOR in an amount sufficient to restore the Deposit to the full amount and SUBLESSEE'S failure to do so shall be a breach of this Sublease. If SUBLESSEE performs all of SUBLESSEE's obligations hereunder, the security depositedDeposit, Tenant shall forthwith restore or the amount so balance not applied or retained so that at all times the amount deposited by SUBLESSOR, shall be $4,010,000.00returned, without interest, to SUBLESSEE following the expiration of the Term, and after SUBLESSEE has vacated the Premises.

Appears in 1 contract

Sources: Sublease Agreement (Broadview Networks Holdings Inc)

Security Deposit. 6.01 Subject to the provisions Upon execution of Section 6.02this Lease by ▇▇▇▇▇▇, Tenant shall have deposited deposit with Landlord, on or before Landlord the date hereof the sum of $4,010,000.00. Security Deposit as security for the faithful performance and observance by Tenant ▇▇▇▇▇▇ of the terms, provisions and conditions of this lease; it Lease. It is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure periodLease, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) Security Deposit to the extent required for the payment of any rent and additional rent Rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this leaseLease, including but not limited to, to any damages damage or deficiency accrued before or after summary proceedings or other re-entry reentry by Landlord, including the costs of such proceeding or reentry. The security It is agreed that Landlord shall be deposited in a separate interest bearing account segregated from Landlord's fundsalways have the right to apply the Security Deposit, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord or any part thereof, as aforesaid, without notice and without prejudice to any interest earned thereon (less any administrative fee to other remedy or remedies which Landlord may be entitled pursuant to applicable law) have, or Landlord may pursue any other such remedy or remedies in lieu of applying the Security Deposit or any part thereof. No interest shall be paid to Tenant annually provided Tenant is not then payable on the Security Deposit. If Landlord shall use, apply or retain the Security Deposit in default whole or in part and the Lease continues or Tenant's occupancy continues in the observance Premises, Tenant shall within ten (10) days after written notice from the Landlord make such further or performance other deposit of any monies as may be necessary to bring the balance of its obligations under this lease which continues after notice and the expiration of any applicable cure perioddeposit to the amount specified in Section 1.2 hereof . In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this leaseLease, the security Security Deposit shall be returned to Tenant no later than ten within ninety (1090) days after the Expiration Date date fixed as the end of the Lease and after delivery of entire possession of the Demised Premises to LandlordLandlord in accordance with the terms of this Lease. In the event Landlord applies of a sale or retains any portion or all other transfer of the security depositedBuilding, or leasing of the entire Building including the Premises subject to ▇▇▇▇▇▇'s tenancy hereunder, Landlord shall transfer the Security Deposit then remaining to the vendee or Tenant and Landlord shall forthwith restore thereupon be released from all liability for the amount so applied return of such Security Deposit to Tenant; and ▇▇▇▇▇▇ agrees to look solely to the new Landlord for the return of said Security Deposit then remaining. Tenant further covenants that it will not assign or retained so encumber or attempt to assign or encumber the Security Deposit and that at all times the amount deposited neither Landlord nor its successors or assigns shall be $4,010,000.00bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance.

Appears in 1 contract

Sources: Commercial Lease

Security Deposit. 6.01 Subject to Landlord acknowledges that it has received from Tenant the provisions of Section 6.02Security Deposit, Tenant shall have deposited with Landlord, on or before the date hereof the sum of $4,010,000.00. as security for the faithful payment of rents and the performance and observance by Tenant of the terms, provisions agreements and conditions of this lease; it is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and contained on the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) Tenant to the extent required for the payment of any rent be performed and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodobserved. In the event that of any default or defaults in such payment, performance or observance Landlord may apply said sum or any part thereof toward the curing of any such default or defaults and/or toward compensating Landlord for any loss or damage arising from any such default or defaults. Upon the yielding up of the demised premises at the expiration or other termination of the Term, if Tenant shall fully and faithfully comply with all of not then be in default or otherwise liable to Landlord, said sum or the terms, provisions, covenants and conditions of this lease, the security unapplied balance thereof shall be returned to Tenant no later than ten (10) days after Tenant. It is understood and agreed that Landlord shall always have the Expiration Date and after delivery of entire possession of the Demised Premises right to Landlord. In apply said sum, or any part thereof, as aforesaid in the event of any such default or defaults, without prejudice to any other remedy or remedies which Landlord applies may have, or retains Landlord may pursue any portion other such remedy or remedies in lieu of applying said sum or any part thereof. Landlord agrees that it shall place said sum in an interest bearing account of Landlord's choosing and all interest payable on said sum or any part thereof shall accrue for the benefit of the security depositedTenant. Tenant shall pay all taxes payable on said interest. If Landlord shall apply said sum or any part thereof as aforesaid, Tenant shall forthwith restore upon demand pay to Landlord the amount so applied by Landlord, to restore the security to its original amount. Whenever the holder of Landlord's interest in this lease, whether it be the Landlord named in this lease or retained so that at all times any transferee of said Landlord, immediate or remote, shall transfer its interest in this lease, said holder shall turn over to its transferee said sum or the amount deposited unapplied balance thereof, and thereafter such holder shall be $4,010,000.00released from any and all liability to Tenant with respect to said sum or its application or return, it being understood that Tenant shall thereafter look only to such transferee with respect to said sum, its application and return. The holder of any mortgage upon property which includes the demised premises shall never be responsible to Tenant for said sum or its application or return unless said sum shall actually have been received in hand by such holder.

Appears in 1 contract

Sources: Lease (Harvardnet Inc)

Security Deposit. 6.01 Subject to the provisions of Section 6.02, Tenant shall have deposited with Landlord, on or before the date hereof the sum of $4,010,000.00. as As security for the faithful performance and observance compliance by Tenant of the terms, provisions and conditions of this lease; it is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions hereof on Tenant's part to be performed and complied with, the Tenant shall, in connection with Tenant's execution of this leaseAgreement, including but deposit with Landlord the sum of $1,254,600.00 (The "Security Deposit"). Such Security Deposit shall not limited to, any damages be considered an advance payment of rental or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from measure of Landlord's fundsdamages in case of default by Tenant and in Landlord's sole discretion, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected may be held or invested by Landlord and any interest earned accruing thereon (less any administrative fee to which Landlord shall be the sole property of Landlord. Such Security Deposit may be entitled pursuant commingled by Landlord and held in any account of Landlord. Landlord shall have the right to applicable law) use the Security Deposit as it sees fit, including the right to apply any part or all of the Security Deposit to cure any default of the Tenant hereunder and if Landlord does so apply the Security Deposit against a default, Tenant shall, upon demand, deliver to and deposit with Landlord a sum of money equal to the amount so applied, so that Landlord shall be paid to Tenant annually provided Tenant is not then in default in have the observance or performance full Security Deposit on hand at all times during the Term of any of its obligations under this lease which continues after notice and Lease. Upon the expiration of the Term of this Lease, provided no Event of Default exists, the Security Deposit or the portion of such Security Deposit then in Landlord's possession after application of any applicable portion thereof to a default hereunder by Tenant, shall be returned to Tenant. The Landlord shall have the right to apply any part of the Security Deposit to cure periodany default of the Tenant without thereby waiving any of Landlord's rights hereunder with respect to a default by Tenant. In the event that of a sale, assignment, lease or hypothecation of the Leased Property subject to this Lease to a purchaser or assignee permitted herein, the Landlord shall have the right to transfer the Security Deposit to the purchaser or assignee and if such permitted purchaser or assignee expressly assumes Landlord's obligations under this Agreement, the Landlord shall thereupon be released by Tenant from all liability for the return of the Security Deposit and the Tenant shall fully and faithfully comply with all look solely to the purchaser or the assignee for the return of the termsSecurity Deposit, provisions, covenants and conditions of it is agreed that this lease, the security provision shall be returned apply to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession every transfer or assignment made of the Demised Premises Security Deposit to Landlordevery permitted purchaser or assignee. In The Security Deposit shall not be mortgaged, assigned, pledged or encumbered by the event Landlord applies or retains any portion or all Tenant, except Tenant's rights thereto may be assigned in connection with an assignment of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00Tenant's interest expressly permitted in this Agreement.

Appears in 1 contract

Sources: Lease Agreement (CNL Hospitality Properties Inc)

Security Deposit. 6.01 Subject to the provisions Upon execution of Section 6.02this Lease, Tenant shall have deposited with Landlord, on or before pay to Landlord the date hereof the sum of $4,010,000.00Security Deposit specified in Paragraph 2.d. above as security for Tenant's performance of all of Tenant's covenants and obligations under this Lease; provided, however, that the faithful performance Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord's damages upon Tenant's default. Landlord shall not be required to segregate the Security Deposit from its other funds and observance by no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant's failure to perform any of its covenants or obligations hereunder, it being understood that any use of the termsSecurity Deposit shall not constitute a bar or defense to any of Landlord's remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, provisions and conditions Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to an amount equal to one hundred ten percent (110%) of the amount specified in Paragraph 2.d. as the same may have been increased by prior applications of this leaseParagraph 6. Tenant's failure to make such payment to Landlord within five (5) days of Landlord's notice shall constitute an Event of Default. If Tenant is not in default at the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord; it is agreed provided, however, that in the no event shall any such return be construed as an admission by Landlord that Tenant defaults has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in respect of Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the termsReal Property or any portion thereof, provisions shall be responsible to Tenant for the Security Deposit unless and conditions only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of this leaseCalifornia Civil Code Section 1950.7, includingand, but not limited towithout limitation of the scope of such waiver, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, acknowledges that Landlord may use, apply or retain the whole use all or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) Security Deposit to the extent required compensate Landlord for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions damages resulting from termination of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice Lease and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the termstenancy created hereunder (including, provisionswithout limitation, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00damages recoverable under California Civil Code Section 1951.2).

Appears in 1 contract

Sources: Office Lease (Kitara Media Corp.)

Security Deposit. 6.01 Subject to the provisions Upon execution of Section 6.02this Lease by both parties, Tenant shall have deposited with Landlord, on or before the date hereof will pay to Landlord the sum set forth in l. (k) of $4,010,000.00. the Basic Lease Provisions as security for the full and faithful performance and observance by Tenant of the termseach and every term, provisions covenant and conditions condition of this lease; it is agreed that in Lease. In the event that Tenant defaults is in respect of default under this Lease, or fails to perform any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure periodLease, Landlord may use, apply apply, or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent sum due Landlord or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of the Tenant's default or failure to perform, including, but not limited to, any damages or deficiency in respect the reletting of the Demised Premises; provided. however, that any such use, application or retention by Landlord of the whole or any part of the security deposit shall not be or be deemed to be an election of remedies by Landlord or viewed as liquidated damages, it being expressly understood and ayreed that, notwithstanding such use, application or retention, Landlord shall have the r qlit to pursue any and all other remedies available to it under the terms of this Lease or ot@erwise. In the event that Tenant shall comply with all of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this leaseLease, the security deposit shall be returned to Tenant no later than ten within thirty (1030) days after the Expiration Date compliance has been ascertained by Landlord and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of a sale of the Building, Landlord shall have the right to transfer the security depositeddeposit to the purchaser, and Landlord shall thereupon be released from all liability for the return of such security deposit. Tenant shall forthwith restore look solely to the amount so applied new landlord for the return of such security deposit. Tenant shall not assign or retained so that at all times encumber the amount money deposited as security, and neither Landlord nor it's successors or assigns shall be $4,010,000.00bound by any such assignment or encumbrance.

Appears in 1 contract

Sources: Industrial Lease Agreement (Thrucomm Inc)

Security Deposit. 6.01 Subject to the provisions of Section 6.02, Tenant shall have deposited with Landlord, on or before the date hereof the sum of $4,010,000.00. as security for the faithful performance and observance by Tenant of the terms, provisions and conditions Notwithstanding any other provision of this lease; Lease, the Lessee may on any date exercise its option to prepay its obligations hereunder by an irrevocable deposit by it is agreed that with the Trustee of: (i) an amount of cash which, together with amounts on deposit in the event Tenant defaults in respect of any of Lease Payment Fund, is sufficient to pay the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as prepayment prices set forth in Section 6.02 hereof) 4.4 of the Trust Agreement (expressed as a percentage of the Principal Component of Certificates of the Series to be prepaid), plus accrued interest to the extent required date fixed for prepayment, or (ii) Federal Securities together with cash, if required, in such amount as will, in the opinion of an independent certified public accountant, together with interest to accrue thereon, and money then on deposit in the Lease Payment Fund relating to Series of Certificates to be prepaid, together with interest thereon, be fully sufficient to pay the prepayment prices set forth in Section 4.4 of the Trust Agreement (expressed as a percentage of the Principal Component of Certificates of the Series to be prepaid), plus accrued interest to the date fixed for prepayment, as the Lessee with respect to payments of Lease Payments shall instruct at the time of said deposit. In the event of a deposit pursuant to this Section, and provided that the Lessee has satisfied all requirements for defeasing the Certificates under Section 14.1 of the Trust Agreement, all obligations of the Lessee under this Lease, and all security provided by this Lease for said obligations, shall cease and terminate, excepting only the obligation of the Lessee to make, or cause to be made, Lease Payments from the deposit made by the Lessee pursuant to this Section, and satisfaction of all obligations to pay Additional Payments, and title to the Leased Premises shall vest in the Lessee on the date of said deposit automatically and without further action by the Lessee or the Lessor (except as provided herein). Said deposit shall be deemed to be and shall constitute a special fund for the payment of any rent the Lease Payments in accordance with the provisions of this Lease. The Lessor shall execute and additional rent or any other sum deliver such further instruments and take such further action as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend requested by reason of Tenant's default in respect of any the Lessee for carrying out the title transfer of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00Leased Premises.

Appears in 1 contract

Sources: Trust Agreement

Security Deposit. 6.01 Subject to (a) Concurrently with the provisions Tenant’s execution of Section 6.02this Lease, Tenant shall have deposited with Landlord, on or before the date hereof deliver to Landlord the sum of $4,010,000.00. specified as the Security Deposit in the Lease Summary, which amount shall be security for the full and faithful performance and observance by Tenant of its covenants and obligations under this Lease. No interest shall be payable on the termsSecurity Deposit, provisions and conditions of this lease; it is agreed and acknowledged by Tenant that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but Security Deposit is not limited to, the an advance payment of rent and additional rent, which default continues after any notice required or a measure of Landlord’s damages in the case of a Default by Tenant. Upon the occurrence of a Default under this lease and the expiration of any applicable cure periodLease, Landlord may use, apply apply, or retain the whole or any part of the security Security Deposit so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent Base Rental and additional rent Additional Rental or any other sum as to which Tenant is in default Default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect the payment of any other damage, injury, expense, or liability resulting from a Default. Following any such application of the termsSecurity Deposit, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security Tenant shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of pay to Landlord on demand the New York Clearing House Association located in amount necessary to restore the City of New York selected by Landlord and any interest earned thereon (less any administrative fee Security Deposit to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodoriginal amount. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, its covenants and conditions of obligations under this leaseLease, the security Security Deposit shall be returned to Tenant no later than ten within thirty (1030) days after the Expiration Date (or any permitted extensions thereof) and after delivery of entire possession of the Demised Premises to LandlordLandlord in accordance with the terms hereof. In the event of the sale or transfer of Landlord’s interest in the Building, Landlord applies shall transfer the Security Deposit to the purchaser or retains assignee of Landlord’s interest in the Building (or provide the purchaser or assignee an appropriate credit at closing), and upon notification of Tenant of such transfer Tenant shall look only to the new landlord for the return of the Security Deposit, and Landlord shall thereupon be released from all liability to Tenant for the return of the Security Deposit. The Security Deposit shall not be assigned or encumbered by Tenant without the written consent of Landlord and such assignment or encumbrance without Landlord’s consent shall be void. (b) In lieu of paying the Security Deposit in cash to Landlord, Tenant may, at Tenant’s sole option made prior to five (5) business days following the Effective Date, deliver the Security Deposit in the form of an unconditional, standby and irrevocable letter of credit in a form approved in advance by Landlord in its reasonable discretion and issued by the Bank (hereinafter defined) in the face amount of the Security Deposit hereunder (the “Letter of Credit”). As used herein, the term “Bank” means a federally-insured banking institution located in the Atlanta, Georgia metropolitan area and reasonably acceptable to Landlord, and having total assets of at least Three Billion Dollars ($3,000,000,000) and a Standard & Poor’s commercial paper rating of at least A-1. If Tenant elects to present the Security Deposit in the form of a Letter of Credit, Tenant shall pay all costs and expenses of the Letter of Credit, including without limitation, any fees charged by Bank in connection with any replacement or transfer of same. If the Letter of Credit (or any replacement thereof) is issued for an effective period of time less than the remaining Lease Term (or any renewal thereof), Tenant shall from time to time, and not later than thirty (30) days prior to the expiration of the Letter of Credit, replace each such expiring Letter of Credit with a new Letter of Credit in the same amount and upon the same terms. The Letter of Credit (and any replacement thereof) may be drawn upon by Landlord under the terms and conditions provided in this Lease. Failure of Tenant to renew the Letter of Credit at least thirty (30) days prior to its expiration shall constitute a Default under this Lease and shall entitle Landlord, in addition to the other remedies contained in this Lease, to draw upon the Letter of Credit. (c) Landlord (or the beneficiary under the Letter of Credit, if such beneficiary is not Landlord) shall have the right to draw upon the Letter of Credit in any of the following circumstances (in addition to any other right to draw on the Security Deposit that is set forth in this Lease): (i) if the total assets of the issuer of the Letter of Credit are at any time less than Three Billion Dollars ($3,000,000,000), or such issuer has a Standard & Poor’s commercial paper rating of less than A-1 (provided if at any time the current Standard & Poor’s commercial paper rating system is no longer in existence, a comparable rating of a comparable commercial paper rating system from a comparable company shall be selected by Landlord, in its reasonable discretion, for purposes of this Section 3.6), (ii) if the credit rating of the issuer of the Letter of Credit is downgraded from the credit rating of such issuer at the time of the issuance of the Letter of Credit, the issuer of the Letter of Credit shall enter into any supervisory agreement with any governmental authority, or the issuer of the Letter of Credit shall fail to meet any capital requirements imposed by applicable law, (iii) if Tenant fails to provide Landlord with any renewal or replacement Letter of Credit complying with the terms of this Lease at least thirty (30) days prior to expiration of the then-current Letter of Credit where the issuer of such Letter of Credit has advised Landlord of its intention not to renew the Letter of Credit, (iv) if Tenant fails to provide Landlord with any renewal or replacement Letter of Credit complying with the terms of this Lease at least thirty (30) days prior to the final expiration date (i.e., the date that, by the terms of the Letter of Credit, the Letter of Credit expires and is either not subject to any automatic renewal or extension or the conditions to such automatic renewal or extension have not then been satisfied) of the then-current Letter of Credit if such Letter of Credit expires prior to the date that is ninety (90) days after the end of the Lease Term, or (v) any voluntary or involuntary proceedings are filed by or against Tenant (or any guarantor of this Lease) under any bankruptcy, insolvency or similar laws. In the event the Letter of Credit is drawn upon due solely to the circumstances described in the foregoing clauses (i), (ii), (iii), (iv) or (v), the amount drawn shall be held by Landlord as a cash Security Deposit in accordance with the terms of this Lease, and shall be otherwise retained, expended or disbursed by Landlord for any amounts or sums due under this Lease to which the proceeds of the Letter of Credit could have been applied pursuant to this Lease, and Tenant shall be liable to Landlord for restoration, in cash or Letter of Credit complying with the terms of this Lease, of any amount so expended to the same extent as set forth in this Section 3.6. (d) Provided that (i) Tenant has not assigned its interest in this Lease or sublet all or any portion of the Premises, (ii) no Default shall have occurred during the Lease Term, (iii) Landlord has not provided written notice to Tenant regarding any non-payment of money required to be paid by Tenant hereunder which, if not paid by Tenant within the applicable cure period, will constitute a Default under the Lease, and (iv) there has been no material adverse change in the financial condition of Tenant from the financial condition of Tenant existing as of the Effective Date (collectively, the “Reduction Requirements”), then: (A) on or after the first day of the fifth Lease Year, Tenant may provide Landlord with a Reduction Request to reduce the Security Deposit to the sum of Two Hundred Fifty Thousand and 00/100 Dollars ($250,000.00), and (B) on or after the first day of the sixth Lease Year, Tenant may provide Landlord with a Reduction Request to reduce the Security Deposit to the sum of One Hundred Fifty Thousand and 00/100 Dollars ($150,000.00). As used herein, the term “Reduction Request” means a written notice from Tenant to Landlord in which Tenant requests a reduction of security permitted hereunder and certifies that, as of the date of such Reduction Request, all of the security depositedReduction Requirements are satisfied. Provided that the Reduction Requirements have been satisfied at the time Landlord receives the Reduction Request, Tenant Landlord shall forthwith restore reduce the amount so applied of the Security Deposit as follows: (i) if Landlord holds a cash Security Deposit, Landlord shall remit to Tenant the sum required to reduce the Security Deposit to the reduced Security Deposit amount set forth herein within thirty (30) days after Landlord’s receipt of the Reduction Request; or retained so that at (ii) if Landlord holds a Letter of Credit, Landlord shall return to Tenant the original Letter of Credit within thirty (30) days following Landlord’s receipt from Tenant of a replacement Letter of Credit in the face amount of the reduced Security Deposit amount set forth herein, which replacement Letter of Credit satisfies all times of the amount deposited requirements set forth herein. During the Lease Term, as extended (if applicable), in no event shall the Security Deposit be less than One Hundred Fifty Thousand and 00/100 Dollars ($4,010,000.00150,000.00).

Appears in 1 contract

Sources: Office Lease (Connecture Inc)

Security Deposit. 6.01 Subject to Owner shall transfer the provisions of Section 6.02, Tenant shall have deposited with Landlord, on or before security deposit in the date hereof the sum amount of $4,010,000.00. 4,133.00 that Owner is holding under the License Agreement, to hold as the security for required under this Lease (the "Security Deposit") in order to secure the faithful performance and observance by Tenant of the terms, provisions and conditions of this lease; it is agreed that in the event Tenant defaults in respect of any all of the termscovenants, provisions conditions and conditions of agreements set forth in this leaseLease to be performed by it, including, but not limited towithout limitation, foregoing such covenants, conditions and agreements in this Lease which become applicable upon its termination by re-entry or otherwise, Tenant has deposited with Owner the sum shown above as a "Security Deposit" on the understanding: (i) that the Security Deposit or any portion thereof may be applied to the curing of any default that may exist, without prejudice to any other remedy or remedies which the Owner may have on account thereof, and upon such application Tenant shall pay Owner on demand the amount so applied which shall be added to lie Security Deposit so the same will be restored to its original amount; (ii) that should the Premises be conveyed by Owner, the Security Deposit or any balance thereof may be turned over to the Owner's grantee, and if the same be turned over as aforesaid, Tenant hereby releases Owner from any and all liability with respect to the Security Deposit and its application or return, and Tenant agrees to look solely to such grantee for such application or return; (iii) that Owner shall not be roquired to keep the Security Deposit in a separate account for the benefit of Tenant but may commingle it with security deposits of all other tenants in the Building; (iv) that the Security Deposit shall not be considered as advance payment of rent Rent or a measure of damages for any default by Tenant, nor shall it he a bar or defense to any actions by Owner against Tenant; and (v) that if Tenant shall faithfully perform all of the covenants and additional rent, which default continues after any notice required under agreements contained in this lease and Lease on the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or Tenant to be performed, the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent Security Deposit or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the termsthen remaining balance thereof, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten Tenant, without interest, within thirty (1030) days after the Expiration Date and after delivery of entire possession expiration of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security depositedTerm, Tenant further covenants that it will not assign or encumber the money deposited herein as a Security Deposit and that neither Owner nor its successors or assigns shall forthwith restore the amount so applied he bound by any such assignment, encumbrance, attempted assignment or retained so that at all times the amount deposited shall be $4,010,000.00attempted encumbrance.

Appears in 1 contract

Sources: Lease Agreement (Photomedex Inc)

Security Deposit. 6.01 Subject to the provisions of Section 6.02, Tenant shall have Subtenant has deposited with LandlordSublandlord, on or before the date hereof the sum of $4,010,000.00. as security Security Amount for the faithful performance and observance by Tenant Subtenant of the terms, covenants, conditions, provisions and conditions agreements of this lease; it Sublease. The Security Amount shall not be required to be deposited in an interest bearing account. It is agreed that in the event Tenant Subtenant defaults in respect of any of the terms, covenants, conditions, provisions and conditions agreements of this leaseSublease, including, but not limited to, the payment of rent Base Rent and additional rentAdditional Rent, which default continues after beyond any and all applicable notice required under this lease and the expiration of any applicable cure periodgrace period(s), Landlord Sublandlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) Security Amount to the extent required for the payment of any rent Base Rent and additional rent Additional Rent or any other sum as to which Tenant Subtenant is in default or for any sum which Landlord Sublandlord may reasonably expend or may be required to expend by reason of Tenant's Subtenant’s default in respect of any of the terms, covenants covenants, conditions, provisions and conditions agreements of this leaseSublease beyond any applicable notice and grace period(s), including but not limited to, any damages or deficiency in the reletting of the Premises, whether such damages or deficiency accrued before or after summary proceedings or other re-entry by LandlordSublandlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member If Sublandlord so applies or retains any part of the New York Clearing House Association located in Security Amount, Subtenant shall, upon demand, promptly deposit with Sublandlord the City amount so applied or retained so that Sublandlord shall have the full Security Amount on hand at all times during the term of New York selected this Sublease. If there is no default by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not Subtenant at the Expiration Date or earlier termination of this Sublease, then in default in the observance Security Amount, or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all so much of the terms, provisions, covenants and conditions Security Amount which has not been expended as permitted in accordance with the terms of this leaseSublease, the security shall be returned to Tenant no later than ten Subtenant within thirty (1030) days after the Expiration Date expiration or earlier termination of this Sublease and after delivery of entire possession of the Demised Premises to LandlordSublandlord in the condition required to be delivered hereunder. In the event Landlord applies of an assignment by Sublandlord of its interest under the Prime Lease, Sublandlord shall have the right to transfer the Security Amount and Subtenant agrees to look to the new Sublandlord solely for the return of said Security Amount and it is agreed that the provisions hereof shall apply to every transfer or retains any portion or all assignment made of the Security Amount to a new Sublandlord. Subtenant further covenants that it shall not assign or encumber or attempt to assign or encumber the monies deposited herein as security deposited, Tenant shall forthwith restore the amount so applied and that neither Sublandlord nor its successors or retained so that at all times the amount deposited assigns shall be $4,010,000.00bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance. If Subtenant deposits the Security Amount with Sublandlord prior to receipt of the Sublease Consent, Sublandlord shall return the Security Amount to Subtenant immediately in the event Prime Landlord does not consent to this Sublease; this obligation shall survive the termination of this Sublease.

Appears in 1 contract

Sources: Sublease Agreement (Ophthotech Corp.)

Security Deposit. 6.01 Subject to Lessee shall deposit with Lessor and maintain during the provisions of Section 6.02, Tenant shall have deposited with Landlord, on or before Term the date hereof the cash sum of Twenty-five Thousand and 00/100 Dollars ($4,010,000.00. 25,000.00) as a security deposit (the “Security Deposit”) which Lessor shall hold as security for the full and faithful performance by Lessee of every term, provision, obligation and observance by Tenant of covenant under this Lease and subject to the terms, provisions terms and conditions of this lease; it is agreed that Lease. The Security Deposit shall be paid upon execution of this Lease. The Security Deposit may be deposited by Lessor into an interest-bearing account, which interest shall accrue for the sole benefit of Lessor and not Lessee. The Security Deposit shall not be considered an advance payment of Rent (or of any other sum payable by Lessee under this Lease) or a measure of Lessor’s damages in case of a default by Lessee. Lessor shall have no obligation to maintain the event Tenant Security Deposit separate and apart from Lessor’s general and/or other funds. If (i) Lessee defaults beyond the applicable notice and/or cure period in respect of any of the terms, provisions provisions, covenants and conditions of this lease, including, but not limited to, Lease or (ii) a Related Lease Affiliate defaults beyond the payment of rent and additional rent, which default continues after any applicable notice required under this lease and the expiration of any applicable and/or cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default period in respect of any of the terms, provisions, covenants and conditions of this leaseany Related Lease, Lessor may, but shall not be required to, in addition to and not in lieu of any other rights and remedies available to Lessor, apply all or any part of the Security Deposit to the payment of any sum in default, or any other sum that Lessor may expend or be required to expend by reason of such default, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlordin reletting the Premises. The security shall be deposited in a separate interest bearing account segregated from Landlord's fundsWhenever, in a commercial bank which is a member and as often as, Lessor has applied any portion of the New York Clearing House Association located Security Deposit to cure a default (as described in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the termspreceding sentence), provisionsLessee shall, covenants and conditions of this lease, the security shall be returned to Tenant no later than within ten (10) days after Notice from Lessor, deposit additional money with Lessor sufficient to restore the Expiration Date Security Deposit to the full amount then required to be deposited with Lessor, and after delivery Lessee’s failure to do so shall constitute an Event of entire Default without any further Notice. If Lessor transfers or assigns its interest under this Lease, Lessor shall assign the Security Deposit to the new lessor and thereafter Lessor shall have no further liability for the return of the Security Deposit, and Lessee agrees to look solely to the new lessor for the return of the Security Deposit. Lessee agrees that it will not assign or encumber or attempt to assign or encumber the Security Deposit and that Lessor, its successors and assigns may return the Security Deposit to the last lessee in possession of the Demised Premises to Landlord. In at the event Landlord applies last address for which Notice has given by such lessee and that Lessor thereafter shall be relieved of any liability therefor, regardless of one or retains more assignments of this Lease or any portion such actual or all attempted assignment or encumbrances of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited Security Deposit. The Security Deposit shall be $4,010,000.00returned by Lessor to the last lessee in possession of the Premises as required by applicable law following the Termination Date.

Appears in 1 contract

Sources: Lease Agreement (Adcare Health Systems, Inc)

Security Deposit. 6.01 Subject to the provisions of Section 6.02, Tenant shall have deposited with Landlord, will pay Landlord on or before the date hereof this Lease is executed by Tenant the sum Security Deposit set forth in Item 9 of $4,010,000.00. the Basic Lease Provisions as security for the faithful performance and observance by Tenant of the terms, provisions terms hereof by Tenant. Tenant shall not be entitled to interest thereon and conditions Landlord may commingle such Security Deposit with any other funds of Landlord. The Security Deposit shall not be considered an advance payment of rental or a measure of Landlord's damages in case of default by Tenant. If Tenant defaults with respect to any provision of this lease; it is agreed that in the event Tenant defaults in respect of any of the termsLease, provisions and conditions of this lease, includingLandlord may, but shall not limited be required to, the payment of rent and additional rentfrom time to time, which default continues after without prejudice to any notice required under this lease and the expiration of any applicable cure periodother remedy, Landlord may use, apply or retain the whole all or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required this Security Deposit for the payment of any rent and additional rent Rent or any other sum as to which Tenant is in default or for the payment of any sum other amount which Landlord may reasonably expend spend or may be required become obligated to expend spend by reason of Tenant's default in respect of or to compensate Landlord for any of the terms, covenants and conditions of this lease, including but not limited to, any damages other loss or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to damage which Landlord may be entitled pursuant suffer by reason of Tenant's default, including, without limitation, costs and reasonable attorneys' fees incurred by Landlord to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in recover possession of the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodPremises. In the event that If Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions perform every provision of this leaseLease to be performed by it, the security Security Deposit shall be returned to Tenant no later than ten within thirty (1030) days after the Expiration Date Date. Tenant agrees that it will not assign or encumber or attempt to assign or encumber the monies deposited herein as the Security Deposit and after delivery that Landlord and its successors and assigns shall not be bound by any such actual or attempted assignment or encumbrance. Regardless of entire possession any assignment of this Lease by Tenant, Landlord may return the Security Deposit to the original Tenant, in the absence of evidence satisfactory to Landlord of an assignment of the Demised Premises right to Landlord. In receive the event Landlord applies Security Deposit or retains any portion or all part of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00balance thereof.

Appears in 1 contract

Sources: Office Lease Agreement (American Physician Partners Inc)

Security Deposit. 6.01 Subject to Company shall deposit with TEDE upon execution of this Lease a Security Deposit in the provisions amount of Section 6.02, Tenant shall have deposited with Landlord, on or before the date hereof the sum of $4,010,000.00. the Improved Parcel A Rent plus the Parcel B Rent for one and a half months as security for the Company's faithful performance of Company's obligations hereunder with respect to Parcel A and observance by Tenant of the termsImprovements, provisions and conditions Parcel B, respectively. If Company fails to pay Rent or other charges due hereunder, or otherwise defaults with respect to any provision of this lease; it is agreed that in the event Tenant defaults in respect of any of the termsLease, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord TEDE may use, apply or retain the whole all or any part portion of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required Security Deposit for the payment of any rent and additional rent Rent or any other sum as to which Tenant is charge in default or for the payment of any other sum to which Landlord TEDE may reasonably expend or may be required to expend become obligated by reason of TenantCompany's default in default. At the Parcel B Termination Date, if Company has performed all of Company's obligations hereunder with respect of any to Parcel B, the portion of the termsSecurity Deposit attributable (on the basis of the relative amounts of Rent payable for Parcel B and for Parcel A and the Improvements, covenants and conditions of this leaseif any, including but at the Parcel B Termination Date) to Parcel B, or so much thereof as has not limited totherefore been applied by TEDE, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate returned, without payment of interest bearing account segregated from Landlordfor its use, to Company after Company has vacated Parcel B, and complied with all its obligations. At the Parcel A Termination Date, if Company has performed all of Company's fundsobligations hereunder with respect to Parcel A and the Improvements, in a commercial bank which is a member the portion of the New York Clearing House Association located Security Deposit attributable (in accordance with the City of New York selected preceding sentence) to Parcel A and the Improvements, or so much thereof as has not therefore been applied by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) TEDE, shall be paid returned, without payment of interest for its use, to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues Company after notice Company has vacated Parcel A and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00Improvements.

Appears in 1 contract

Sources: Lease Agreement (Calavo Growers Inc)

Security Deposit. 6.01 Subject to the provisions of Section 6.02, Tenant shall have deposited with Landlord, on or before pay to Landlord a security deposit in the date hereof amount of Twenty-Seven Thousand Two Hundred Dollars ($27,200.00) (the sum of $4,010,000.00. "SECURITY DEPOSIT") as security for the full and faithful performance and observance by Tenant of all of its obligations under this Lease contemporaneously with the terms, provisions and conditions execution of this lease; it is agreed that in Lease by Tenant. Landlord shall not be required to keep the event Security Deposit separate from its general funds and Tenant shall not be entitled to interest thereon. If Tenant defaults in with respect of to any of the terms, provisions and conditions provision of this leaseLease, including, including but not limited to, to the provisions relating to the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure periodRent, Landlord may may, but shall not be required to, use, apply or retain the whole all or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required Security Deposit for the payment of any rent and additional rent Rent or any other sum as to which Tenant is amount in default default, or for the payment of any sum which other amount that Landlord may reasonably expend expends or may be required incurs or becomes obligated to expend spend or incur 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, including without limitation, reasonable costs and attorneys' fees incurred by Landlord to recover possession of the Premises upon a default by Tenant hereunder. If any portion of the Security Deposit is so used or applied, Tenant shall, upon demand therefor, deposit cash with Landlord in respect an amount sufficient to restore the Security Deposit to its original amount and Tenant's failure to do so shall constitute a default hereunder by Tenant. Tenant acknowledges that Landlord has the right to transfer or mortgage its interest in the Premises and in this Lease, and Tenant agrees that in the event of any such transfer or mortgage, Landlord shall have the right to transfer or assign the Security Deposit to the transferee or mortgagee. Upon such transfer or assignment of the termsSecurity Deposit, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security Landlord shall be deposited in a separate interest bearing account segregated deemed released by Tenant from Landlord's funds, in a commercial bank which is a member all liability or obligation for the return of the New York Clearing House Association located in Security Deposit to the City extent such transferee or mortgage assumes such obligations, and Tenant shall look solely to such transferee or mortgagee for the return of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodSecurity Deposit. In the event that If Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions perform every provision of this leaseLease to be performed by it, the security Security Deposit or any balance thereof shall be returned to Tenant no later than ten within thirty (1030) days after following the Expiration Date later of expiration of the Term and after delivery surrender of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00.

Appears in 1 contract

Sources: Lease Agreement (Discovery Bancorp)

Security Deposit. 6.01 Subject to the provisions of Section 6.02, Tenant shall have deposited with Landlord, on or before the date hereof the sum of $4,010,000.00. as security for To secure the faithful performance by Subtenant of all the covenants, conditions and observance by Tenant of agreements in this Sublease set forth and contained on the terms, provisions and conditions of this lease; it is agreed that in part of (a) the event Tenant defaults in respect Security Deposit or any portion thereof may be applied to the curing of any default that may then exist, without prejudice to any other remedy or remedies which Sublandlord may have on account thereof, and upon such application Subtenant shall pay Sublandlord on demand the amount so applied which shall be added to the Security Deposit so the same may be restored to its original amount; (b) should the Master Sublease be assigned by Sublandlord, the Security Deposit or any portion thereof not previously applied shall be turned over to Sublandlord's assignee, and upon express assumption of Sublandlord's obligations under this Sublease Subtenant shall release Sublandlord from any and all liability with respect to the terms, provisions and conditions of this lease, includingSecurity Deposit and/or its application or return; (c) Sublandlord or its successor shall not be obligated to hold the Security Deposit as a separate fund, but on the contrary may commingle the same with its other funds; (d) the sum deposited or the portion thereof not limited topreviously applied, the payment of rent and additional rent, which default continues after any notice required under this lease and shall be returned to Subtenant without interest following the expiration of any applicable cure period, Landlord may use, apply or retain the whole Term of this Sublease or any part of the security so deposited renewal or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) extension thereof, except to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend cure any breach by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance Subtenant of any of its obligations under this lease which continues after notice hereunder and provided that Subtenant has vacated the Sublease Premises and surrendered possession thereof to Sublandlord at the expiration of the Term or any applicable cure period. In extension or renewal thereof as provided herein; (e) in the event that Tenant Sublandlord terminates this Sublease or Subtenant's right to possession by reason of an Event of Default by Subtenant, Sublandlord may apply the Security Deposit against damages suffered to the date of such termination and/or may retain the Security Deposit to apply against such damages as may be suffered or shall fully accrue thereafter by reason of Subtenant's default; (f) in the event any bankruptcy, insolvency, reorganization or other creditor-debtor proceedings shall be instituted by or against Subtenant, or its successors or assigns, the Security Deposit shall be deemed to be applied first to the payment of any Rent due Sublandlord for all periods prior to the institution of such proceedings, and faithfully comply with all the balance, if any, of the termsSecurity Deposit may be retained or paid to Sublandlord in partial liquidation of Sublandlord's damages. If Subtenant elects to deposit the Security Deposit by a letter of credit, provisionssuch letter of credit shall be an irrevocable, covenants unconditional, standby letter of credit in a form substantially similar to the form attached hereto as Exhibit D and conditions incorporated herein (such letter of credit, together with any renewal or replacement letters of credit delivered or to be delivered by Subtenant under this leaseSection, shall be referred to herein collectively as the "Letter of Credit"). The Letter of Credit shall be issued by a national money center bank with an office in San Francisco, California (the "Issuer"). The final form of the Letter of Credit, the security identity of the Issuer, and the form of any replacement Letter of Credit shall be returned acceptable to Tenant no later Sublandlord in its sole discretion. The Letter of Credit shall be for an initial term of not less than ten twelve (1012) days after the Expiration Date months and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that be maintained in force at all times from issuance through sixty (60) days following the amount deposited shall be $4,010,000.00.expiration or earlier termination of this Sublease. If Subtenant

Appears in 1 contract

Sources: Sub Sublease Agreement (Remedy Corp)

Security Deposit. 6.01 Subject to A deposit (the provisions “Security Deposit”) in the amount set forth in Section H on page 2 shall be paid by Tenant upon execution of Section 6.02, Tenant this Lease and shall have deposited with Landlord, on or before the date hereof the sum of $4,010,000.00. be held by Landlord without liability for interest and as security for the faithful performance and observance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the termsSecurity Deposit shall not be considered an advance payment of rent or a measure of Landlord’s damages in case of default by Tenant. Upon the occurrence of any breach or default under this Lease by Tenant, provisions and conditions Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit or any portion thereof to the extent necessary to make good any arrearages of this lease; it is agreed that in rent or any other damage, injury, expense, or liability caused to Landlord by such breach or default. Following any application of the Security Deposit, Tenant shall pay to Landlord on demand an amount to restore the Security Deposit to its original amount. In the event Tenant defaults in respect of any of bankruptcy or other debtor relief proceedings by or against Tenant, the terms, provisions and conditions of this lease, including, but not limited to, Security Deposit shall be deemed to be applied first to the payment of rent and additional rentother charges due Landlord, which default continues after any notice required under this lease and in the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional order that such rent or any other sum as charges became due and owing, for all periods prior to which Tenant is in default or for any sum which filing of such proceedings. Landlord may reasonably expend or may shall not be required to expend keep the Security Deposit separate from its general funds. Upon termination of this Lease any remaining balance of the Security Deposit shall be returned by reason Landlord to Tenant within fourteen (14) days after termination of Tenant's default in respect ’s tenancy. Tenant also shall obtain and maintain during the period set forth below, at Lessee’s expense, an irrevocable standby letter of any of credit (the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry “LC”) issued by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's fundsreputable bank acceptable to Landlord it its reasonable discretion, in a commercial bank which is a member favor of the New York Clearing House Association located Landlord and presentable for collection in the City of New York selected Los Angeles which may be drawn upon by Landlord upon written demand on sight delivered by Landlord to the issuer thereof stating that a material default has occurred hereunder which has not been cured within the applicable notice and cure periods provided for in this Lease, in the event that Tenant materially breaches this Lease and thereby fails to reimburse Landlord for the unrecovered portion of real estate brokers’ commissions and tenant improvement costs incurred by Landlord in respect of this Lease, within any applicable notice and cure periods provided therefor. The LC shall be in the initial principal amount of $900,000, which automatically is renewed annually at the commencement of each Lease Year during the initial term of this Lease. The principal amount of the LC, if not previously drawn thereon by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided so Iong as Tenant is not then in default in of this Lease, shall be reduced by $360,000 at the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all beginning of the termsthird Lease year, provisions, covenants another $270,000 at the beginning of the fifth Lease year. From and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security depositedseventh Lease Year, Tenant shall forthwith restore no longer required to obtain and maintain the amount so applied or retained so that LC, and at all times the amount deposited commencement of the seventh Lease Year, Landlord shall return the original LC if and to the extent the same has not previously been drawn upon. The LC shall be $4,010,000.00.substantially in the form attached hereto as Exhibit G.

Appears in 1 contract

Sources: Lease (Equinix Inc)

Security Deposit. 6.01 Subject Concurrent with the execution of this Lease, Tenant shall deposit with Landlord the amount set forth in Article 1 as the "Security Deposit" as security for the performance by Tenant of the terms of this Lease to be performed by Tenant, and not as prepayment of rent, Landlord may apply such portion or portions of the Security Deposit as are reasonably necessary for the following purposes: (i) to remedy any default by Tenant, in the payment of Base Monthly Rent or Additional Rent or a late charge or interest on defaulted rent; (ii) to repair damage to the Leased Premises, the Building or the Outside Areas caused by Tenant; (iii) to clean and repair the Leased Premises, the Building or the Outside Areas following their surrender to Landlord if not surrendered in the condition required pursuant to the provisions of Section 6.02, Article 2; and (iv) to remedy any other default of Tenant shall have deposited with Landlord, on or before to the date hereof the sum of $4,010,000.00. as security for the faithful performance and observance extent permitted by Tenant of the terms, provisions and conditions of this lease; it is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this leaseLaw, including, but not limited towithout limitation, paying in full on Tenant's behalf any sums claimed by materialmen or contractors of Tenant to be owing to them by Tenant for work done or improvements made at Tenant's request to the payment of rent and additional rentLeased Premises. In this regard, Tenant hereby waives any restriction on the uses to which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord Security Deposit may use, apply or retain the whole or any part be applied as contained in Section 1950.7(c) of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of California Civil Code and/or any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodsuccessor statute. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies Security Deposit or retains any portion or all of the security depositedthereof is so used, Tenant shall forthwith pay to Landlord, promptly upon demand, an amount in cash sufficient to restore the amount so applied or retained so that at all times Security Deposit to the full original sum. If Tenant fails to promptly restore the Security Deposit and if Tenant shall have paid to Landlord any sums as "Last Month's Prepaid Rent," Landlord may, in addition to any other remedy Landlord may have under this Lease, reduce the amount deposited of Tenant's Last Month's Prepaid Rent by transferring all or portions of such Last Month's Prepaid Rent to Tenant's Security Deposit until such Security Deposit is restored to the amount set forth in Article 1. Landlord shall not be deemed a trustee of the Security Deposit. Landlord may use the Security Deposit in Landlord's ordinary business and shall not be required to segregate it from its general accounts. Tenant shall not be entitled to any interest on the Security Deposit. If Landlord transfers the Building or the Property during the Lease Term, Landlord may pay the Security Deposit to any subsequent owner in conformity with the provisions of Section 1950.7 of the California Civil Code and/or any successor statute, in which event the transferring landlord shall be $4,010,000.00released from all liability for the return of the Security Deposit. Tenant specifically grants to Landlord (and Tenant hereby waives the provisions of California Civil Code Section 1950.7 to the contrary) a period of sixty days following a surrender of the Leased Premises by Tenant to Landlord within which to return the Security Deposit (less permitted deductions) to Tenant, it being agreed between Landlord and Tenant that sixty days is a reasonable period of time within which to inspect the Leased Premises, make required repairs, receive and verify workmen's ▇▇▇▇▇▇▇▇ therefor, and prepare a final accounting with respect to such deposit. In no event shall the Security Deposit, or any portion thereof, be considered prepaid rent.

Appears in 1 contract

Sources: Industrial Space Lease (Mattson Technology Inc)

Security Deposit. 6.01 Subject to the provisions Upon execution of Section 6.02this Lease, Tenant shall have deposited with Landlord, on or before pay to Landlord the date hereof the sum of $4,010,000.00. Security Deposit specified in Paragraph 1.7 above as security for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the faithful performance Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and observance by no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the termsSecurity Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, provisions and conditions Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to an amount equal to one hundred ten percent (110%) of the amount specified in Paragraph 1.7 as the same may have been increased by prior applications of this leaseParagraph 5. Tenant’s failure to make such payment to Landlord within five (5) business days of Landlord’s notice shall constitute an Event of Event of Default. If Tenant is not in default at the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord; it is agreed provided, however, that in the no event shall any such return be construed as an admission by Landlord that Tenant defaults has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in respect of Paragraph 16.8 below), nor any purchaser at any judicial or private foreclosure sale of the termsIndustrial Center or any portion thereof, provisions shall be responsible to Tenant for the Security Deposit unless and conditions only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of this leaseCalifornia Civil Code Section 1950.7, includingand, but not limited towithout limitation of the scope of such waiver, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, acknowledges that Landlord may use, apply or retain the whole use all or any part of the security so deposited or Security Deposit to compensate Landlord for damages resulting from termination of this Lease and the proceeds tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2). Notwithstanding anything to the contrary above, if additional space is added to the Premises after the date hereof, then the amount of the Letter Security Deposit provided for above shall, effective as of Credit (the Lease commencement date as set forth in Section 6.02 hereof) to the extent required for subject additional space, be increased so that, based on the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any new total rentable square footage of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member Premises (with the additional space added thereto) the amount of the New York Clearing House Association located in Security Deposit is the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all same amount per rentable square foot of the terms, provisions, covenants and conditions of this lease, Premises that was in effect on the security shall be returned date immediately prior to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of date the Demised Premises subject additional space was added to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00Premises.

Appears in 1 contract

Sources: Industrial Lease (Aviragen Therapeutics, Inc.)

Security Deposit. 6.01 Subject (a) The sum set forth in Section 1.04, which Tenant is required to the provisions of Section 6.02, Tenant shall have deposited deposit with Landlord, on or before the date hereof the sum of $4,010,000.00. as is security for the full and faithful performance and observance by Tenant of the terms, provisions and conditions all of this lease; it is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required its obligations under this lease and the expiration Lease or in connection with this Lease. If an Event of any applicable cure periodDefault (as herein defined) has occurred, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required Security Deposit for the payment of any rent and additional rent (i) Rent or any other sum as to sums of money which Tenant is may not have paid or which may become due after the occurrence of the Event of Default; (ii) any sum expended by Landlord on Tenant's behalf in default accordance with the provisions of this Lease; or for (iii) any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect such Event of any of the terms, covenants and conditions of this leaseDefault, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other in the re-entry by Landlordletting of the Demised Premises in connection with Article XVI hereof. In the case of every such application, or retention during the Lease Term, Tenant shall, on demand, pay to Landlord a sum equal to that so applied or retained, which shall be added to the Security Deposit so that the same shall be restored to its original amount. Landlord may use, apply or retain the whole or any part of the Security Deposit for the repair of damage to the Demised Premises upon Tenant's surrender of the Demised Premises on Expiration Date. The security shall be deposited in a separate interest bearing account segregated from Landlord's fundsuse, in a commercial bank which is a member application or retention of the New York Clearing House Association located in the City of New York selected Security Deposit or portion thereof by Landlord and shall not prevent Landlord from exercising any interest earned thereon (less other right or remedy provided for hereunder or at law shall not operate as a limitation on any administrative fee recovery to which Landlord may otherwise be entitled. (b) The Security Deposit shall bear no interest; and if legally permissible, Landlord shall be entitled pursuant to applicable lawcommingle the Security Deposit with Landlord's other funds. (c) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that If Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions provisions of this leaseLease, the security Security Deposit or any balance thereof shall be returned to Tenant no later than ten within sixty (1060) days after the Expiration Date and or upon any later date after delivery of entire possession of which Tenant has vacated the Demised Premises to LandlordPremises. In the event absence of evidence satisfactory to Landlord applies or retains of any portion or all assignment of the security depositedright to receive the Security Deposit or the remaining balance thereof, Landlord may return the Security Deposit to the original Tenant shall forthwith restore regardless of one or more assignments of Tenant's interest in such Security Deposit. In such event, upon the amount so applied return of such Security Deposit or retained so that at all times balance thereof to the amount deposited original Tenant, Landlord shall be $4,010,000.00completely relieved of liability hereunder. (d) Tenant covenants and agrees that it shall not assign, pledge, hypothecate, mortgage or otherwise encumber the Security Deposit during the Term of the Lease. (e) The Security Deposit may be transferred to any purchaser of Landlord's interest in the Building or the Real Estate, provided as a condition of such transfer, the transferee assumes, in writing, the obligation to hold the same pursuant to this Section 5.05 and upon such transfer, Landlord shall be relieved of any obligation with respect thereto.

Appears in 1 contract

Sources: Lease Agreement (Edge Therapeutics, Inc.)

Security Deposit. 6.01 Subject to Simultaneously with Subtenant's execution hereof, Subtenant shall place with Sublandlord a security deposit in the provisions of Section 6.02, Tenant shall have deposited with Landlord, on or before the date hereof the sum amount of $4,010,000.00131,404. Such security deposit shall bear simple interest at the rate of five percent (5%) per annum and shall be considered as security for the faithful payment and performance by Subtenant of all of Subtenant's obligations, covenants, conditions and observance by Tenant of the terms, provisions and conditions of this lease; it is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required agreements under this lease Sublease. Upon condition that W Subtenant has not previously defaulted any payment obligation under this Sublease (even though such default may have been cured within the applicable grace period) , and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereofii) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant Subtenant is not then in default under the provisions hereof, Sublandlord shall return such security deposit, together with interest thereon, to Subtenant on June 1, 1999. If such security deposit is not returned to Subtenant on June 1, 1999 because of a failure of a condition set forth in either clause W or (ii) of the observance or performance of any of its obligations under this lease which continues after notice and previous sentence, upon the expiration of the term of this Sublease, Sublandlord shall (provided that Subtenant is not then in default under the provisions hereof), return such security deposit (plus interest thereon) to Subtenant, less such portion thereof as Sublandlord shall have retained to make good any applicable cure perioddefault by Subtenant with respect to any of Subtenant's aforesaid obligations, covenants, conditions or agreements. In the event that Tenant of any default by Subtenant hereunder, Sublandlord shall fully and faithfully comply with have the right, but shall not be obligated, to apply all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security depositeddeposit to compensate Sublandlord (whether in whole or in part) for such default, Tenant in which event, within fifteen (15) days thereafter, Subtenant shall forthwith be obligated to deposit with Sublandlord the amount necessary to restore the amount so applied security deposit to its original amount; provided, however, neither the application of the security deposit as set forth above nor the payment by Subtenant to restore such security deposit shall operate to cure such default or retained so that at all times the amount deposited shall to estop Sublandlord from pursuing any remedy to which Sublandlord would otherwise be $4,010,000.00entitled.

Appears in 1 contract

Sources: Sublease (Hagler Bailly Inc)

Security Deposit. 6.01 Subject to the provisions Tenant shall, upon execution of this Sublease, deposit with Landlord a security deposit as set forth in Section 6.02, Tenant shall have deposited with Landlord, on or before the date 1(g) hereof the sum of $4,010,000.00. as security for the full and faithful performance and observance by Tenant of the terms, provisions and conditions every provision of this lease; it is agreed that in the event Sublease to be performed by Tenant. If Tenant defaults in with respect of to any of the terms, provisions and conditions provision of this lease, including, but not limited to, the payment of rent Sublease after notice and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, including but not limited to the provisions relating to the payment of rent, Landlord may use, apply apply, or retain the whole all or any part of the this security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) deposit to the extent required compensate Landlord for the payment of any rent and additional rent or any other sum as to which Tenant is in default loss, cost or for any sum damage which Landlord may reasonably expend or may be required to expend suffer by reason of Tenant's default ’s default. If any portion of said deposit is so used or applied, Tenant shall, within ten (10) business days after written demand therefor deposit cash with Landlord in respect 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 any this Sublease. Tenant hereby waives the provisions of Section 1950.7 of the termsCalifornia Civil Code, covenants and conditions all provisions of this leaselaw, including but not limited tonow or hereafter enforced, any damages 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 deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's fundsto clean the Premises, it being agreed that Landlord may, in a commercial bank which is a member addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage foreseeable or unforeseeable, caused by the act or omission of the New York Clearing House Association located in the City of New York selected by Tenant. Landlord shall not be required to keep this security deposit separate from its general funds and any interest earned thereon (less any administrative fee to which Landlord may Tenant shall not be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodinterest on such deposit. In the event that If Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions perform every provision of this leaseSublease to be performed by it, the security deposit or any balance thereof shall be returned to Tenant no later than ten (10or, at Landlord’s option, to the last transferee of Tenant’s interest hereunder) within thirty (30) days after both the Expiration Date expiration of the Sublease term and after Tenant’s delivery of entire the Premises to Landlord, provided, however, that Landlord may use all or any portion of the deposit to repair any damages to the Premises for which Tenant is responsible hereunder or to clean the Premises after Landlord has received possession of the Demised Premises to Landlord(normal wear and tear excepted), and further provided that Landlord may retain the security deposit until such time as any amount due from Tenant in accordance with Section 5 hereof has been determined and paid in full. Tenant shall not assign or encumber its contingent rights in the security deposit, and neither shall Landlord nor its successors or assigns be bound by any purported assignment or encumbrance. In the event Landlord applies of the termination of any ground or retains underlying Sublease or foreclosure of any portion mortgage or all trust deed now or hereafter affecting the Premises, Building or land upon which the same are located, Tenant shall only look to the new landlord for return of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00deposit if such deposit is actually transferred to said new landlord.

Appears in 1 contract

Sources: Sublease Agreement (Imarx Therapeutics Inc)

Security Deposit. 6.01 Subject to Lessee shall deposit with Lessor upon the provisions execution of Section 6.02, Tenant shall have deposited with Landlord, on or before this Lease a cash security deposit (the date hereof “Security Deposit”) in the sum amount of $4,010,000.00. two (2) times the monthly Base Rent applicable during the first year as security for the faithful performance and observance by Tenant ▇▇▇▇▇▇ of the terms, conditions, covenants and provisions and conditions of this lease; it is agreed that in Lease, including without limitation the event Tenant defaults in respect surrender of any possession of the termsUNH Premises to Lessor as herein provided. The Security Deposit shall be held in a segregated account for ▇▇▇▇▇▇’s benefit and may be applied by Lessor for the purpose of curing any default or defaults of the Lessee hereunder, provisions and conditions in which event Lessee will replenish the Security Deposit in full by promptly paying to Lessor on demand the amount so applied. Lessor will not pay any interest on the Security Deposit. The Security Deposit shall not be mortgaged, assigned, transferred or encumbered by ▇▇▇▇▇▇ without the prior written consent of this lease, including, but not limited to, the payment of rent and additional rentLessor, which default continues after consent may be withheld or conditioned in Lessor’s sole discretion, and any notice required under this lease and such act on the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds Lessee without Lessor’s prior written consent shall be without force and effect and shall not be binding upon Lessor. If any item of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent Rent herein reserved or any other sum as payable by Lessee to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security Lessor shall be deposited in a separate interest bearing account segregated from Landlord's fundsoverdue and unpaid, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period, or if Lessor shall make payments on behalf of Lessee in accordance with the provisions of this Lease or if Lessee fails to perform any of the terms and conditions of this Lease, after notice and the expiration of any applicable cure period, then Lessor may, at its sole option and without prejudice to any other remedy which Lessor may have on account thereof, appropriate and apply the Security Deposit (or so much thereof as may be necessary) to compensate Lessor toward the payment of the Rent or any other sum payable by Lessee to Lessor or loss or damage sustained by Lessor due to such breach on the part of Lessee, as the case may be, and Lessee shall, within five (5) calendar days after written demand therefor, restore the Security Deposit to the original sum deposited. In the event that Tenant If ▇▇▇▇▇▇ shall fully and faithfully comply with all of the terms, provisions, covenants terms and conditions of this leaseLease, the security Security Deposit shall be returned in full to Tenant no later than ten Lessee within ninety (1090) days after the Expiration Date and after delivery end of entire the Lease Term of this Lease when ▇▇▇▇▇▇ has surrendered possession of the Demised UNH Premises to LandlordLessor in accordance with the terms and conditions contained herein. In the event Landlord applies of bankruptcy or retains any portion or all other creditor-debtor proceedings against ▇▇▇▇▇▇, the Security Deposit shall be deemed to be applied first to the payment of the security depositedRent and other charges due Lessor for all periods prior to the filing of such proceedings. The Security Deposit shall not constitute liquidated damages. Lessor, Tenant shall forthwith restore and its successors and assigns, may deliver the amount so applied or retained so Security Deposit to any purchaser of Lessor’s interest in the UNH Premises in the event that at all times the amount deposited ▇▇▇▇▇▇’s interest is sold, and thereupon Lessor shall be $4,010,000.00discharged from any further liability with respect to the Security Deposit, and Lessee shall look solely to such purchaser for the return of the Security Deposit.

Appears in 1 contract

Sources: Lease

Security Deposit. 6.01 Subject to A deposit in the provisions of Section 6.02, Tenant shall have deposited with Landlord, on or before the date hereof the sum amount of $4,010,000.0037,000.00 (the “Security Deposit”) shall be paid by Tenant to Landlord together with the first monthly installment of Annual Basic Rental. The Security Deposit shall be held by Landlord as security for the full and faithful performance and observance by Tenant of all the terms, provisions covenants and conditions of this lease; it is agreed Lease by Tenant to be kept and performed, provided that in the event Tenant defaults in respect shall not be excused from payment of any Rental or any other charge herein provided. If an Event of Default occurs with respect to any provision of this Lease, Landlord may, at its election, use or apply all or any part of the termsSecurity Deposit to compensate Landlord for any obligation of Tenant or loss or damage reasonably suffered by Landlord as a result of such Event of Default, provisions and conditions of this lease, including, including but not limited to, the payment of rent Rental or other sums due hereunder, the reimbursement of amounts Landlord spends by reason of such Event of Default, and additional rentcompensation to Landlord for any other loss or damage that Landlord may reasonably suffer by reason of the Event of Default. If any portion is so used or applied, which default continues Tenant, upon demand, will deposit with Landlord an amount sufficient to restore the Security Deposit to its original amount. Landlord shall be required to keep the Security Deposit separate from its general funds and shall invest the Security Deposit in a federally insured deposit account or other account approved by Tenant, and Tenant shall be entitled to all interest earned thereon. If Tenant materially performs every provision of this Lease, the Security Deposit or the balance thereof will be returned to Tenant within thirty (30) days after the later of (i) the expiration of this Lease or any notice Renewal Terms of this Lease and (ii) delivery of possession of the Premises to Landlord in the condition required under this lease and Lease. In no event will Tenant have the expiration of any applicable cure period, Landlord may use, right to apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) Security Deposit to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings Rental or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations amount payable under this lease which continues after notice and the expiration of any applicable cure periodLease. In the event of sale or transfer of the Premises, if Landlord transfers the Security Deposit to the vendee or transferee, or if such vendee or transferee assumes in writing liability with respect to such Security Deposit, Landlord shall be considered released by Tenant from all liability for the return of such Security Deposit, and Tenant agrees to look solely to such vendee or transferee for the return of the Security Deposit. Tenant agrees that this Section 5.4 shall apply to every transfer or assignment to all subsequent vendees or transferees. The Security Deposit shall not be assigned, transferred or encumbered by Tenant, and any attempt to do so by Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall not be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to binding upon Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00.

Appears in 1 contract

Sources: Lease Agreement (Boston Gear LLC)

Security Deposit. 6.01 Subject Tenant has deposited or shall deposit concurrently with Tenant's execution of this Lease, with Landlord the amount set forth in Article 1 as the "Security Deposit" (less any unapplied security deposit held by Landlord under the Original Lease, which shall be applied to the provisions amount of Section 6.02, Tenant shall have deposited with Landlord, on or before the date hereof the sum of $4,010,000.00. Security Deposit) as security for the faithful performance and observance by Tenant of the terms, provisions and conditions terms of this lease; it is agreed that Lease to be performed by Tenant, and not as prepayment of rent. Tenant hereby grants to Landlord a security interest in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this leaseSecurity Deposit, including but not limited to, any damages to replenishments thereof. Landlord may apply such portion or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member portions of the New York Clearing House Association located Security Deposit as are reasonably necessary for the following purposes: (i) to remedy any default by Tenant in the City payment of New York selected Base Monthly Rent or Additional Rent or a late charge or interest on defaulted rent, or any other monetary payment obligation of Tenant under this Lease; (ii) to repair damage to the Leased Premises, the Building or the Outside Areas caused or permitted to occur by Tenant; (iii) to clean and restore and repair the Leased Premises, the Building or the Outside Areas following their surrender to Landlord if not surrendered in the condition required pursuant to the provisions of Article 2, and (iv) to remedy any interest earned thereon (less other default of Tenant to the extent permitted by Law including, without limitation, paying in full on Tenant's behalf any administrative fee sums claimed by materialmen or contractors of Tenant to be owing to them by Tenant for work done or improvements made at Tenant's request to the Leased Premises. In this regard, Tenant hereby waives any restriction on the uses to which Landlord the Security Deposit may be entitled pursuant to applicable lawapplied as contained in Section 1950.7(c) shall be paid to Tenant annually provided Tenant is not then in default in of the observance or performance of California Civil Code and/or any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodsuccessor statute. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies Security Deposit or retains any portion or all of the security depositedthereof is so used, Tenant shall forthwith pay to Landlord, promptly upon demand, an amount in cash sufficient to restore the amount so applied or retained so that at all times Security Deposit to the full original sum. If Tenant fails to promptly restore the Security Deposit and if Tenant shall have paid to Landlord any sums as "Last Month's Prepaid Rent," Landlord may, in addition to any other remedy Landlord may have under this Lease, reduce the amount deposited of Tenant's Last Month's Prepaid Rent by transferring all or portions of such Last Month's Prepaid Rent to Tenant's Security Deposit until such Security Deposit is restored to the amount set forth in Article 1. Landlord shall not be deemed a trustee of the Security Deposit. Landlord may use the Security Deposit in Landlord's ordinary business and shall not be required to segregate it from Landlord's general accounts. Tenant shall not be entitled to any interest on the Security Deposit. If Landlord transfers the Building or the Property during the Lease Term, Landlord may pay the Security Deposit to any subsequent owner in conformity with the provisions of Section 1950.7 of the California Civil Code and/or any successor statute, in which event the transferring landlord shall be $4,010,000.00released from all liability for the return of the Security Deposit. Tenant specifically grants to Landlord (and Tenant hereby waives the provisions of California Civil Code Section 1950.7 to the contrary) a period of ninety days following a surrender of the Leased Premises by Tenant to Landlord within which to inspect the Leased Lremises, make required restorations and repairs, receive and verify workmen's ▇▇▇▇▇▇▇▇ therefor, and prepare a final accounting with respect to the Security Deposit. In no event shall the Security Deposit or any portion thereof, be considered prepaid rent.

Appears in 1 contract

Sources: Lease Agreement (Digital Microwave Corp /De/)

Security Deposit. 6.01 Subject to the provisions of Section 6.02, Tenant shall have (a) Licensee has deposited with Landlord, on or before the date hereof the sum of $4,010,000.00. 7,997.00 with Licensor as security for the faithful full and punctual performance and observance by Tenant Licensee of all of the terms, provisions and conditions terms of this lease; it is agreed that Agreement, to be deposited by Licensor in an interest-bearing account of Licensor's choosing. In the event Licensee defaults in the event Tenant defaults in respect performance of any of the terms, provisions and conditions terms of this leaseAgreement, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord Licensor may use, apply use or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default fees or for any sum which Landlord that Licensor may reasonably expend or may be required to expend by reason of TenantLicense's default in respect of any of the terms, covenants and conditions of this leasedefault, including but not limited to, any damages or deficiency accrued in the relicensing or letting of the Licensed Space, whether accruing before or after summary proceedings or other re-entry by LandlordLicensor. The security In the case of every such use or retention, Licensee shall, on demand, pay to Licensor the sum so used or retained which sum shall be added to the security deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of so that the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) same shall be paid replenished to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodformer amount. In the event that Tenant any bankruptcy, insolvency, reorganization or other creditor-debtor proceedings shall be instituted by or against Licensee, or its successors or assigns, the security deposited shall be deemed to be applied first to the payment of such fees due Licensor for all periods to the institution of such proceedings and the balance, if any, of the security deposited may be retained by Licensor in partial liquidation of Licensor's damages. If Licensee shall fully and faithfully punctually comply with all of the terms, provisions, covenants and conditions terms of this leaseAgreement, the security deposited plus any accrued interest thereon (less an amount equal to one percent per annum on the security deposited not to exceed the amount of any interest earned on the security deposited for Licensee's administrative costs in connection with the security deposited) shall be returned to Tenant no later than ten (10) days Licensee after the Expiration Date termination of this Agreement and after delivery of entire exclusive possession of the Demised Premises Licensed Space to LandlordLicensor in compliance with the provisions of this Agreement. (b) Any interest accrued with respect to the security deposited shall be added to and constitute a part of the security deposited to be held and disposed of by Licensor in accordance with the terms of this Paragraph 21. Licensor shall not be liable to Licensee for any interest except for such interest as is actually accrued. (c) Licensee shall, concurrently with the execution and delivery of this Agreement, and thereafter at any time upon request by Licensor, deliver to Licensor a fully completed Form W-9 (Request for Taxpayer Identification Number and Certification). (d) Licensee shall not assign or encumber or attempt to assign or encumber the security deposited and neither Licensor nor its successors or assigns shall be bound by any such assignment, encumbrance or attempted assignment or encumbrance. (e) In the event Landlord applies of a sale or retains any portion lease of the Building, Licensor shall have the right to transfer the security deposited to the vendee or lessee and Licensor shall ipso facto be released by Licensee from all liability for the return of the security deposited and Licensee shall look solely to the new licensor for the return of the security deposited. The provisions hereof shall apply to every transfer or assignment made of the security deposited to a new licensor. (f) In the event that the License Fee shall increase pursuant to the terms of this Agreement, Tenant shall forthwith restore the amount so applied or retained of security deposited shall be increased so that at all times the security deposited (exclusive of interest) shall equal one-sixth of the current annual License Fee. Licensee shall immediately deposit with Licensor the difference between the amount required to be deposited shall be $4,010,000.00.pursuant to this Subparagraph 21(f)/

Appears in 1 contract

Sources: License Agreement (Neurologix Inc/De)

Security Deposit. 6.01 Subject The parties acknowledge that Landlord is not requiring Tenant to deliver a security deposit upon execution of this Lease. Notwithstanding the provisions foregoing, if Tenant fails to pay Base Rent and/or Additional Rent within the time frames prescribed above on more than two (2) occasions in any twelve (12) month period, Landlord hereby reserves its rights to require Tenant to deliver a security deposit to Landlord in an amount not to exceed one (1) month of Section 6.02, Base Rent. Such sum shall be held by Landlord as a security deposit during the term of this Lease. If Tenant shall have deposited with Landlord, on or before the date hereof the sum of $4,010,000.00. as security for the faithful performance performs and observance by Tenant observes all of the terms, provisions conditions and conditions covenants of this lease; it Lease which are required to be performed and observed by it, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within sixty (60) days after the expiration of this Lease or after Tenant surrenders possession of the Premises, whichever is agreed that later. In the event of a default by Tenant in the event Tenant defaults in respect payment of rent or the performance or observance of any of the other terms, provisions and conditions conditions, or covenants of this leaseLease, includingthen Landlord may, but not limited to, the payment of rent at its option and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may usewithout notice, apply or retain the whole all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, within five (5) days after Landlord’s demand therefor, deposit with Landlord the amount so deposited or applied so that Landlord will have on hand at all times during the proceeds term of this Lease the full amount of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which security deposit. Landlord may reasonably expend or may shall not be required to expend by reason of Tenant's default in respect of any of hold the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in deposit as a separate interest bearing account segregated from account, but may commingle it with Landlord's ’s other funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of a sale of the termsBuilding, provisions, covenants and conditions of this lease, Landlord shall have the right to transfer the security deposit to its purchaser, and Landlord shall thereupon be returned released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to Tenant no later than ten (10) days after look solely to the Expiration Date and after delivery new purchaser for the return of entire possession of the Demised Premises to Landlordsuch deposit. In the event Landlord applies or retains any portion or all of an assignment of this Lease by Tenant, the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited deposit shall be $4,010,000.00deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility for the return of such deposit to the assignor.

Appears in 1 contract

Sources: Lease Agreement (First Indiana Corp)

Security Deposit. 6.01 Subject to the provisions of Section 6.02, (a) Tenant shall have deposited deposit with LandlordLandlord the Security Deposit, on or before the date hereof the sum of $4,010,000.00. as security for the prompt, full and faithful performance and observance by Tenant of the terms, provisions each and conditions every provision of this lease; it is agreed that Lease and of all obligations of Tenant hereunder. The Security Deposit shall be in the event Tenant defaults form of cash or, at Tenant's option, an irrevocable letter of credit (the "Security Deposit L/C"). If the Security Deposit is in respect the form of any a letter of credit, the Security Deposit L/C shall be delivered to Landlord at Tenant's sole cost and expense. The Security Deposit L/C shall be issued by and drawn on a bank reasonably acceptable to Landlord, in Landlord's sole but reasonable discretion, and shall name Landlord as Beneficiary. If the maturity date of the termsSecurity Deposit L/C is prior to the end of the Term of the Lease, provisions Tenant shall renew the Security Deposit L/C as often as is necessary with the same bank or financial institution (or a similar bank or financial institution reasonably acceptable to Landlord) and conditions upon the same terms and conditions, not less than thirty (30) days prior to the purported expiration date of this leasethe Security Deposit L/C. In the event that Tenant fails to timely renew the Security Deposit L/C as aforesaid, including, but not limited to, Landlord shall be entitled to draw against the payment entire amount of rent the Security Deposit L/C. The Security Deposit L/C shall be assignable by Landlord and additional rent, which default continues after upon such assignment to any notice required party assuming in writing the landlord interest and obligations under this lease Lease, and the expiration this Landlord shall be relieved from all liability to Tenant therefor. If an Event of any applicable cure periodDefault occurs, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required Security Deposit for the payment of (i) any rent and additional rent Basic Rent or Additional Charges which Tenant shall not have paid or which may become due after the occurrence of such Event of Default, (ii) any sum expended by Landlord on Tenant's behalf in accordance with the provisions of this Lease or (iii) any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this leasedefault, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlordin the reletting of the Leased Premises as provided in Section 11 hereof. The security shall be deposited in a separate interest bearing account segregated from Landlord's fundsuse, in a commercial bank which is a member application or retention of the New York Clearing House Association located in the City of New York selected Security Deposit, or any portion thereof, by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by law and shall not operate as a limitation on any interest earned thereon (less any administrative fee recovery to which Landlord may otherwise be entitled pursuant entitled. If any portion of the Security Deposit is used, applied or retained by Landlord for the purposes set forth above, Tenant agrees, within ten (10) days after a written demand therefor is made by Landlord, to applicable law) shall be paid deposit cash or a new Security Deposit L/C meeting the criteria referenced in this Section 14, with Landlord in an amount sufficient to Tenant annually provided Tenant is not then in default in restore the observance or performance of any of Security Deposit to its obligations under this lease which continues after notice and the expiration of any applicable cure periodoriginal amount. In the event that If Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions provisions of this leaseLease, the security Security Deposit, or any balance thereof, shall be returned to Tenant no later than within ten (10) business days after the Expiration Date and after delivery of entire possession expiration of the Demised Premises Term, with interest. In the absence of evidence satisfactory to LandlordLandlord of any permitted assignment of the right to receive the Security Deposit, or the remaining balance thereof, Landlord may return the same to Tenant, regardless of one or more assignments of Tenant's interest in this Lease or the Security Deposit. In such event, upon the return of the Security Deposit (or balance thereof) to Tenant, Landlord shall be completely relieved of liability under this Section 14. In the event of a transfer of Landlord's interest in the Leased Premises, Landlord applies shall have the right to transfer the Security Deposit to the transferee thereof. In such event, upon the delivery by Landlord to Tenant of such transferee's written acknowledgment of its receipt of such Security Deposit and its agreement to comply with the provisions of this Lease, Landlord shall be deemed to have been released by Tenant from all liability or retains any portion or all obligation for the return of such Security Deposit, and Tenant agrees to look solely to such transferee for the return of the security depositedSecurity Deposit and the transferee shall be bound by all provisions of this Lease relating to the return of the Security Deposit. The Security Deposit shall not be mortgaged, assigned or encumbered in any manner whatsoever by Tenant shall forthwith restore without the prior written consent of Landlord. (b) Notwithstanding anything to the contrary in this Section 14, and provided that Tenant is not in monetary default beyond any applicable notice and cure periods under the Lease at the time of each reduction, the amount so applied or retained so that at all times of the amount deposited Security Deposit L/C OR THE CASH SECURITY DEPOSIT, AS APPLICABLE, shall be reduced by Seventeen Thousand Five Hundred Five and 76/100 Dollars ($4,010,000.0017,505.76)) on each anniversary of the Lease Commencement Date.

Appears in 1 contract

Sources: Deed of Lease (Apache Medical Systems Inc)

Security Deposit. 6.01 Subject to the provisions of Section 6.02, Landlord acknowledges that it has received from Tenant shall have deposited with Landlord, on or before the date hereof the sum of Eighty Thousand Dollars ($4,010,000.00. 80,000), as security for the faithful payment of rents and the performance and observance by Tenant of the terms, provisions agreements and conditions of in this lease; it is agreed that in Lease contained on the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) Tenant to the extent required for the payment of any rent be performed and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodobserved. In the event of any default or defaults in such payment, performance or observance, Landlord may apply said sum or any part thereof towards the curing of any such default or defaults and/or towards compensating Landlord for any loss or damage arising from any such default or defaults. Commencing on the first day of the twenty-fifth (25th) month of the Term of this Lease and continuing on the first day of each month thereafter until the balance of the security deposited has been refunded in full, Landlord shall remit to Tenant on a monthly basis the lesser of $4,000 or the then remaining balance of the security deposit. It is understood and agreed that Landlord shall always have the right to apply the then remaining balance of the security deposit, or any part thereof, in the event of any such default or defaults (beyond any applicable curative period), without prejudice to any other remedy or remedies which Landlord may have, or Landlord may pursue any other such remedy or remedies in lieu of applying the security deposit or any part thereof. No interest shall be payable on the security deposit or any part thereof. If Landlord shall apply any portion of the security deposit as aforesaid, Tenant shall upon demand pay to Landlord such amount as shall be required to restore the security deposit to the aforesaid $80,000. Whenever the holder of Landlord's interest in this Lease, whether it be the Landlord named in this Lease or any transferee of said Landlord, immediate or remote, shall transfer its interest in this Lease, said holder shall turn over to its transferee the then balance of the security deposit, and thereafter following such tranferee's acknowledgment in writing to Tenant of receit of the then remaining security deposit and such transferee's agreement to apply and/or return said remaining security deposit in accordance with the provisions of this Lease, such holder shall be released from any and all liability to Tenant with respect to said sum or its application or return, it being understood that Tenant shall fully thereafter look only to such transferee with respect to said sum, its application and faithfully comply with all return. The holder of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of any mortgage upon property which includes the Demised Premises shall never be responsible to Landlord. In the event Landlord applies Tenant for said sum or retains any portion its application or all of the security deposited, Tenant return unless said sum shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00actually have been received in hand by such holder.

Appears in 1 contract

Sources: Lease Agreement (International Integration Inc)

Security Deposit. 6.01 Subject to the provisions Upon execution of Section 6.02this Sublease, Tenant shall have deposited deposit with Landlord, on or before Landlord an amount equal to $45,263.35 (the date hereof the sum of $4,010,000.00“Security Deposit”). The Security Deposit shall be held by Landlord as security for the faithful performance of all the terms of this Sublease to be observed and observance performed by ▇▇▇▇▇▇. The Security Deposit shall not be mortgaged, assigned, transferred or encumbered by Tenant and any such act on the part of Tenant shall be without force and effect and shall not be binding upon Landlord. Tenant shall cause the Security Deposit to be maintained throughout the term in the amount set forth above. If the Rent or Additional Rent payable hereunder shall be overdue and unpaid or should Landlord make any payment on behalf of the termsTenant, provisions and conditions of this lease; it is agreed that in the event or Tenant defaults in respect of shall fail to perform any of the terms, provisions and conditions terms of this leaseSublease, includingthen Landlord may, but not limited to, the payment of rent at its option and additional rent, which default continues after any without notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) prejudice to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum remedy which Landlord may reasonably expend have on account thereof, appropriate and apply the entire Security Deposit or so much thereof as may be required necessary to expend compensate Landlord toward the - 2 - 4933-0091-4457, v.9 payment of Rent, Additional Rent or other sums or loss or damage sustained by reason Landlord due to such material breach by Tenant; and Tenant shall forthwith upon demand restore the Security Deposit to the amount stated above. Notwithstanding the foregoing, upon the application by Landlord of Tenant's default in respect of all or any portion of the termsSecurity Deposit (with or without notice thereof to Tenant) to compensate Landlord for a failure by Tenant to pay any Rent or Additional Rent when due or to perform any other material obligation hereunder, covenants and conditions of this leaseuntil Tenant shall have restored the Security Deposit to the amount required hereby, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security Tenant shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee deemed to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance payment of any Additional Rent for purposes of Section 14(i) hereof. So long as Tenant shall not be in default of its material obligations under this lease which continues after notice Sublease, Landlord shall return the Security Deposit, or so much thereof as shall have not theretofore been applied in accordance with the terms of this Section 5, to Tenant promptly following the expiration or earlier termination of the term of this Sublease and the expiration surrender of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises by Tenant to LandlordLandlord in accordance with the terms hereof. In While Landlord holds the event Security Deposit, Landlord applies or retains any portion or all of shall have no obligation to pay interest on the security depositedsame, Tenant and shall forthwith restore have the amount so applied or retained so that at all times right to commingle the amount deposited shall be $4,010,000.00same with ▇▇▇▇▇▇▇▇’s other funds.

Appears in 1 contract

Sources: Sublease Agreement (Bicara Therapeutics Inc.)

Security Deposit. 6.01 Subject If Tenant shall fail to remove its trade fixtures or other property at the termination of this Lease or within Ten (10) days thereafter, such fixtures and other property not removed by Tenant shall be deemed abandoned by Tenant, and, at the option of Landlord, shall become the property of Landlord. Notwithstanding any provision of this Lease seemingly to the provisions of Section 6.02contrary, Tenant shall never, under any circumstances, have deposited with Landlordthe power to subject the interest of Landlord in the Premises to any mechanics' or materialmen's liens or liens of any kind, on nor shall any provision contained in this Lease ever be construed as empowering the Tenant to encumber or before cause the date hereof Landlord to encumber the sum title or interest of $4,010,000.00Landlord in the Premises. Tenant hereby expressly acknowledges and agrees that no alterations, additions, repairs or improvements to the Premises of any kind are required or contemplated to be performed as security a prerequisite to the execution of this Lease and the effectiveness thereof according to its terms or in order to place the Premises in a condition necessary for use of the Premises for the faithful performance purposes set forth in this Lease, that the Premises are presently complete and observance by usable for the purposes set forth in this Lease and that this Lease is in no way conditioned on Tenant making or being able to make alterations, additions, repairs or improvements to the Premises, unless otherwise specified under the Special Provisions section of the termsDefinitions, provisions notwithstanding the fact that alterations, repairs, additions or improvements may be made by Tenant, for Tenant's convenience or for Tenant's purposes, subject to Landlord's prior written consent, at Tenant's sole cost and conditions expense. Landlord and Tenant expressly acknowledge and agree that neither the Tenant nor any one claiming by, through or under the Tenant, including without limitation contractors, sub-contractors, materialmen, mechanics and laborers, shall have any right to file or place any mechanics' or materialmen's liens of any kind whatsoever upon the Premises nor upon any building or improvement thereon; on the contrary, any such liens are specifically prohibited. All parties with whom the Tenant may deal are hereby put on notice that the Tenant has no power to subject the Landlord's interest in the Premises to any claim or lien of any kind or character and any persons dealing with the Tenant must look solely to the credit of the Tenant for payment and not to the Landlord's interest in the Premises or otherwise. Any lien filed against the Premises in violation of this lease; it is agreed that paragraph shall be null and void and of no force or effect. In addition, Tenant shall cause any lien filed against the Premises in the event Tenant defaults in respect of any of the terms, provisions and conditions violation of this leaseparagraph to be cancelled, released, discharged and extinguished within fifteen (15) days from and against any such lien and any costs, damages, charges and expenses, including, but not limited to, the payment of rent and additional rent, which default continues after attorneys' fees incurred in connection with or with respect to any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00such lien.

Appears in 1 contract

Sources: Warehouse Lease (Maxxis Group Inc)

Security Deposit. 6.01 Subject to the provisions Upon execution of Section 6.02this Lease, Tenant shall have deposited deposit with Landlord, on or before the date hereof the sum of Eight Hundred Sixty Eight and 15/100 Dollars ($4,010,000.00. 868.15) ("Security Deposit") as security for the faithful its prompt and proper performance and observance by Tenant of the terms, provisions and conditions of this lease; it is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of all the terms, covenants and conditions agreements contained in this Lease. Tenant understands, acknowledges and agrees (i) that the Security Deposit is not a prepayment of this leaserent; (ii) that Landlord shall not be obligated to apply the Security Deposit to any unpaid Rent or portion thereof, including but although it may do so at its option; (iii) that the Security Deposit does not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall constitute a trust fund; (iv) that the Security Deposit may be deposited in a separate any account including an interest bearing account segregated from maintained by Landlord, in any bank or depository selected by Landlord, and commingled with Landlord's other funds; and (v) that Landlord shall have no obligation to pay interest on the Security Deposit and Tenant shall have no right to recover from Landlord and Landlord shall have no obligation to account to Tenant for any interest, earnings or other increments which may accrue during the time the Security Deposit is held by Landlord, except as otherwise specifically provided in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected this Lease. The Security Deposit shall be held by Landlord as security for the performance by Tenant of all of Tenant's covenants and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and Lease. Landlord may, from time to time, without prejudice to any other remedy, use the expiration Security Deposit to the extent necessary to make good any arrearage of Rent or to satisfy any applicable cure period. In the event that Tenant shall fully and faithfully comply with all other covenant or obligation of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession hereunder. Following any such application of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security depositedSecurity Deposit, Tenant shall forthwith restore pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. If Tenant is not in default at the termination of this Lease and has paid in full all Rent and prorations and assuming Landlord is not required to make repairs to the Leased Premises caused by Tenant's vacating or retained so that at all times by extraordinary wear and tear, or remove any then existing leasehold improvements, then the amount deposited balance of the Security Deposit remaining after any such application shall be $4,010,000.00returned by Landlord to Tenant. If Landlord transfers its interest in the Leased Premises during the term of this Lease, Landlord may assign the Security Deposit to the transferee and thereafter shall have no further liability for the return of such Security Deposit.

Appears in 1 contract

Sources: Sublease (National Information Consortium)

Security Deposit. 6.01 Subject to the provisions Upon execution of Section 6.02this Lease, Tenant shall have deposited deposit the Security Deposit Amount with the Landlord or a letter of credit in the same amount in a form acceptable to Landlord in Landlord, on or before the date hereof the sum of $4,010,000.00's reasonable discretion. as security for the faithful performance and observance by Tenant The issuer of the terms, provisions Letter of Credit shall be a banking institution with at least a rating of A and conditions otherwise reasonably acceptable to Landlord. Although Landlord shall only have the right to draw under the Letter of this lease; it is agreed that Credit in the event Tenant defaults in respect of any a default as set forth herein, under the terms of the termsLetter of Credit, provisions and conditions the sole condition to Landlord's draw upon the Letter of Credit shall be presentment to the issuer thereof, prior to or on the expiration date, of a demand for payment. The Letter of Credit shall be self-renewing from year to year during the term of this leaseLease so as to expire no earlier than thirty (30) days following the Lease expiration date and shall contain such other customary terms as Landlord requires in its reasonable discretion, including, but not limited to, a provision that the payment Letter of rent Credit is transferable to Landlord's successors and additional rent, which default continues after any notice required under this lease assigns. For and during the expiration of any applicable cure periodTerm, Landlord shall have the irrevocable right, without further notice or approval of Tenant but not the obligation from time to time without prejudice to any other remedy Landlord may usehave on account thereof, to apply the Security Deposit or retain any portion thereof or interest thereon, to Landlord's damage resulting from any default after applicable grace and cure periods by Tenant. On termination of the whole Term, the Security Deposit, or the portion thereof then held by Landlord shall be returned to Tenant, beyond the amount necessary to cure the breach of an provision of this Lease by Tenant. If all or any part of the security so deposited or the proceeds Security Deposit is applied to an obligation of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security depositedhereunder, Tenant shall forthwith immediately upon request by Landlord restore the amount so applied Security Deposit to its original amount. Tenant shall not have the right to call upon Landlord to apply all or retained so that at all times any part of the amount deposited Security Deposit to cure any default or fulfill any obligation of Tenant, but such use shall be $4,010,000.00solely in the discretion of Landlord. Upon any conveyance by Landlord of its interest under this Lease, the Security Deposit shall be delivered by Landlord to Landlord's grantee or transferee. Upon any such delivery, Tenant hereby releases Landlord herein named of any and all liability with respect to the Security Deposit, its application and return, and Tenant agrees to look solely to such grantee or transferee. It is further understood that this provision shall also apply to subsequent grantees and transferees.

Appears in 1 contract

Sources: Lease Agreement (Curis Inc)

Security Deposit. 6.01 Subject to the provisions of Section 6.02If a security deposit is specified in SECTION 1.1 hereof, Tenant agrees that the same will be paid upon execution and delivery of this Lease, and that Landlord shall have deposited with Landlord, on or before hold the date hereof same throughout the sum Term of $4,010,000.00. this Lease as security for the faithful performance and observance by Tenant of all obligations on the termspart of Tenant hereunder. Landlord shall have the right from time to time, provisions and conditions of this lease; it is agreed that in the event Tenant defaults in respect of without prejudice to any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, other remedy Landlord may usehave on account thereof, to apply or retain the whole such deposit, or any part of the security so deposited thereof, to Landlord's damages arising from, or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited tocure, any damages or deficiency accrued before or after summary proceedings or other re-entry by LandlordEvent of Default. The security If Landlord shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and so apply any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security depositedsuch deposit, Tenant shall forthwith restore immediately upon demand deposit with Landlord the amount so applied to be held as security hereunder. Landlord shall return the deposit, or retained so much thereof as shall not have theretofore been applied in accordance with the terms of this Section, to Tenant on the expiration or earlier termination of the Term of this Lease and surrender of possession of the Premises by Tenant to Landlord at such time, provided that at all times there is then existing no Event of Default (nor any circumstance which, with the amount deposited passage of time or the giving of notice, or both, would constitute an Event of Default). While Landlord holds such deposit, Landlord shall have no obligation to pay interest on the same and shall have the right to commingle the same with Landlord's other funds. If Landlord conveys Landlord's interest under this Lease, the deposit, or any part thereof not previously applied, may be $4,010,000.00turned over by Landlord to Landlord's grantee, and, if so turned over, Tenant agrees to look solely to such grantee for proper application of the deposit in accordance with the terms of this Section, and the return thereof in accordance herewith. The holder of a mortgage shall not be responsible to Tenant for the return or application of any such deposit, whether or not it succeeds to the position of Landlord hereunder, unless such deposit shall have been received in hand by such holder.

Appears in 1 contract

Sources: Lease (Compbenefits Corp)

Security Deposit. 6.01 Subject Lessor hereby acknowledges Beneficiaries' receipt from Lessee of the Security Deposit subject to the provisions Security Deposit Adjustment. In the event that the transactions contemplated by this Lease are not consummated (other than due to the fault of Lessee or the occurrence of an Event of Default), Lessor shall cause the Beneficiary to refund the Security Deposit (so long as no Default or Event of Default has occurred, without deducting any costs incurred by any Beneficiary or Lessor in connection with the proposed leasing of the Aircraft hereunder but after deducting the break funding costs incurred by the Beneficiaries and specified in Section 6.0220(h), Tenant shall have deposited with Landlord, on if any) to Lessee. The Security Deposit is received by Lessor or before the date hereof the sum of $4,010,000.00. Beneficiaries as security for the timely and faithful performance by Lessee of all of Lessee's obligations under this Lease, and observance Lessee hereby grants Lessor a security interest therein and in all other sums deposited under this Section 21(a). Lessee agrees to execute and file with the appropriate Governmental Entities any and all documents necessary or reasonably requested by Tenant Lessor or any Beneficiary to evidence and perfect such security assignment in favor of the terms, provisions and conditions of this lease; it is agreed that in the event Tenant defaults in respect of Lessor. If Lessee fails to pay Rent hereunder when due or to pay any other sums due or to perform any of the terms, other terms and provisions and conditions of this leaseLease or is otherwise in Default hereunder, includingin addition to all other rights Lessor shall have under the New York Uniform Commercial Code as a secured party, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord Lessor may use, apply or retain the whole all or any part portion of the security Security Deposit in partial payment for sums due to Lessor by Lessee, to compensate Lessor for any sums it may in its discretion advance as a result of a Default by Lessee or to apply toward losses or expenses Lessor may suffer or incur as a result of Lessee's Default hereunder. If Lessor uses or applies all or any portion of such Security Deposit, such application shall not be deemed a cure of any Defaults, and Lessee shall within five (5) days after written demand therefor deposit with Lessor in cash an amount sufficient to restore the Security Deposit to the aggregate amount of such Security Deposit prior to Lessor's use or application and the failure of Lessee to do so deposited or shall be a material breach of this Lease by Lessee. Provided Lessee is not in Default under this Lease, such Security Deposit, less any costs incurred by Lessor in connection with the proceeds termination of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent Lease or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any return of the termsAircraft, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days Lessee promptly after the Expiration Date and after delivery of entire possession Lessee's return of the Demised Premises Aircraft in compliance with Section 16 hereof. Lessee shall not be entitled to Landlord. In any interest earned on the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00Security Deposit.

Appears in 1 contract

Sources: Aircraft Lease Agreement (Turn Works Acquisition Iii Sub a Inc)

Security Deposit. 6.01 Subject to Concurrently with the provisions execution of Section 6.02this Lease, Tenant shall have deposited with Landlord, on or before deliver to Landlord the date hereof Security Deposit described in Article 1 in the sum form of $4,010,000.00a letter of credit. The Security Deposit shall be payable upon any of the occurrences described in this Section. The Security Deposit shall be held by Landlord as security for the faithful performance and observance of this Lease by Tenant of the terms, provisions and conditions of this lease; it is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any all of the terms, covenants and conditions of this lease, Lease. (a) If there is an Event of Default by Tenant with respect to any provisions of this Lease (including but not limited toto the payment of Rent); if Tenant files a petition in bankruptcy, insolvency, reorganization, dissolution or liquidation under any damages law; makes an assignment for the benefit of its creditors; consents to or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located acquiesces in the City appointment of New York selected a receiver of itself or the Premises, or if a court of competent jurisdiction enters an order or judgment appointing a receiver of Tenant or the Premises; or if a court of competent jurisdiction enters an order or judgment approving a petition filed against Tenant under any bankruptcy, insolvency or liquidation law, then in any such case Landlord may, without waiving any of Landlord’s other rights or remedies under this Lease, apply the Security Deposit in whole or in part to remedy any failure by Tenant to pay any sums due under this Lease, to repair or maintain the Premises, to perform any other terms, covenants or conditions contained in this Lease, to compensate Landlord and for any interest earned thereon (less loss or damages which Landlord may suffer as a result thereof, including without limitation any administrative fee lost rent to which Landlord may be is entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance event the Lease terminates or performance is rejected as a result of any of its obligations under this lease which continues after notice and the expiration foregoing. Should Landlord so apply any portion of any applicable cure period. In the event that Security Deposit, Tenant shall replenish the Security Deposit to the original amount within ten (10) days after written demand by Landlord. (b) Landlord shall not be required to keep the Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. If Tenant has fully and faithfully comply complied with all of the terms, provisions, covenants and conditions of this leaseLease, the security Security Deposit (less any amount previously refunded or applied to cleaning, repairing damage to the Premises caused by Tenant or otherwise applied in accordance with the provisions of this Lease) shall be returned to Tenant no later than ten within thirty (1030) days after the Expiration Date and after delivery of entire possession of the Demised Premises to LandlordLandlord in the manner required by this Lease. In the event of any Assignment of this Lease by Tenant, such Assignment shall be deemed to include an assignment of Tenant’s rights to recover the Security Deposit, and Landlord’s agreement to return the Security Deposit shall run only to Tenant’s assignee and not to the original Tenant. Tenant hereby expressly waives the provisions of California Civil Code Section 1950.7 except for 1950.7(b) or under any similar law, statute or ordinance now or hereafter in effect. (c) The letter of credit that Tenant uses as the Security Deposit shall be issued by a money-center bank (a solvent, nationally recognized bank with a long term rating of BBB, or higher, under the supervision of the Superintendent of Banks of the State of California, or a national banking association, which accepts deposits, maintains accounts, has a local California office which will negotiate a letter of credit, and whose deposits are insured by the FDIC) reasonably approved by Landlord applies (the “L-C Bank”) and shall be in a form that is acceptable to Landlord in Landlord’s reasonable discretion. The L-C Bank shall be a bank that accepts deposits, maintains accounts, has a local Santa ▇▇▇▇▇ County office that will negotiate the letter of credit, or retains any portion if no local office then the letter of credit shall provide for draws by Landlord upon delivery of the written draw request by courier or by fax (to be confirmed by telephone and with original to follow within three (3) Business Days) and payment to be made by wire transfer to Landlord’s account as directed by Landlord upon receipt of the original or fax request. If Landlord notifies Tenant in writing that the L-C Bank that issued the letter of credit has become financially unacceptable, then Tenant shall have thirty (30) days to provide Landlord with a substitute letter of credit complying with all of the security depositedrequirements hereof and issued by a L-C Bank reasonably approved by Landlord. In addition, if the L-C Bank is declared insolvent by the FDIC or otherwise closes, Tenant shall forthwith restore immediately provide Landlord with cash in the amount of the Security Deposit or a substitute letter of credit complying with all of the requirements hereof and issued by a L-C Bank reasonably approved by Landlord. If Tenant does not so applied or retained so that at all times provide Landlord with cash in the amount deposited of the Security Deposit or a substitute letter of credit within the applicable time period, such failure shall constitute an Event of Default hereunder and, in addition to any other rights or remedies available hereunder, Landlord shall have the right to draw upon the current letter of credit. Tenant shall pay all expenses, points, or fees incurred by Tenant in obtaining or extending the letter of credit. The letter of credit shall be available by draft at sight, subject only to receipt by the L-C Bank of a statement from Landlord certifying that an Event of Default or other matter allowing Landlord to draw upon the Security Deposit under the terms of this Lease has occurred. The letter of credit shall: (i) name Landlord as beneficiary; (ii) allow Landlord to make partial and multiple draws thereunder up to the face amount, as determined by Landlord in its sole discretion; and (iii) provide that Landlord can freely transfer it upon an assignment or other transfer of its interest in the Lease to the assignee or transferee, without charge to Landlord and without recourse, and without having to obtain the consent of Tenant or the L-C Bank. If transfer fees are assessed as a result of any transfer of the letter of credit by Landlord, Tenant shall pay such fees. Tenant shall cause the letter of credit to be transferred to Landlord’s assignee or transferee within ten (10) Business Days after Landlord’s written request, subject to Landlord surrendering the original letter of credit if a replacement letter of credit will need to be obtained. The letter of credit shall by its terms expire not less than one (1) year from the date issued, and shall provide for automatic one (1) year extensions unless Landlord is notified in writing not less than sixty (60) days prior to such expiration from the L-C Bank that the letter of credit will not be extended. In any event, unless Tenant deposits with Landlord a comparable cash Security Deposit or a replacement letter of credit, said letter of credit shall be renewed by Tenant for successive periods of not less than one (1) year throughout the Term. The letter of credit shall be maintained in effect, whether through renewal or extension, for the period from the Commencement Date and continuing until the date that is thirty (30) days after the Expiration Date. Tenant’s failure to so deliver, renew (including specifically but not limited to the delivery to Landlord of such renewal not less than thirty (30) days prior to expiration of the letter of credit) and maintain such letter of credit, shall be an Event of Default and shall entitle Landlord to draw upon such letter of credit. If any portion of the letter of credit is drawn upon, Tenant shall, within ten (10) days after written demand therefor from Landlord, reinstate the letter of credit to the amount then required under this Lease, and Tenant’s failure to do so shall be an Event of Default. The letter of credit shall not be mortgaged, assigned or encumbered in any manner whatsoever by Tenant without the prior written consent of Landlord. (d) If Tenant receives a written commitment letter from the United States Department of Energy for funding under its Advanced Technology Vehicle Manufacturing Loan Program for the power train facility and production of EV power train components in an amount no less than Seventy-Five Million Dollars ($4,010,000.0075,000,000, and Landlord receives the Rent owed by Tenant under this Lease for the nineteenth (19th) month of the Term, the Security Deposit shall be reduced to One Hundred Sixty-Five Thousand Dollars ($165,000). Landlord acknowledges that the loan will be funded based upon costs incurred and will have a draw down period of approximately three years.

Appears in 1 contract

Sources: Commercial Lease (Tesla Motors Inc)

Security Deposit. 6.01 Subject to On the provisions execution of Section 6.02this Lease, Tenant shall have deposited with Landlord, on or before the date hereof the sum of $4,010,000.00. pay to Landlord as a security deposit for the faithful performance and observance by Tenant of the terms, provisions and conditions obligations of this lease; it is agreed that Tenant hereunder any amount specified therefor in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the Article 1. Said security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or deposit may be required to expend by reason mingled with other funds of Tenant's default in respect of any of the terms, covenants Landlord and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security no fiduciary relationship shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee created with respect to which Landlord may be entitled pursuant such deposit. If Tenant shall fail to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of perform any of its obligations under this lease which continues Lease, Landlord may, but shall not be obliged to, apply the security deposit to the extent necessary to cure the default, and Tenant shall be obliged to reinstate such security deposit to the original amount thereof upon demand. Within thirty (30) days after the expiration or sooner termination of the Term the security deposit, to the extent not applied, shall be returned to the Tenant with interest at a rate equal to the yield on 10-year U.S. Treasury notes with a maturity date nearest the expiration date of the Initial Term as reported in the Wall Street Journal or, if it ceases to be published, a national financial publication reasonably selected by Landlord. In lieu of a cash security deposit pursuant to the immediately preceding paragraph, on - 47 - the execution on this Lease, Tenant may elect to deliver to Landlord as security for the performance of the obligations of Tenant hereunder a letter of credit in the initial amount specified therefor in Article 1 in accordance with the terms set forth in this Section (as renewed, replaced, and/or reduced pursuant to this Section, the "LETTER OF CREDIT"), such Letter of Credit to be in the form attached hereto as Exhibit C, or such other form as is reasonably approved by Landlord in accordance with the provisions of this paragraph. The Letter of Credit (i) shall be irrevocable and shall be issued by a commercial bank reasonably acceptable to Landlord that has an office in Boston or Cambridge, Massachusetts, (ii) shall require only the presentation to the issuer of a certificate of the holder of the Letter of Credit stating that Landlord is entitled to draw upon the Letter of Credit pursuant to the terms of the Lease or that a petition has been filed by Tenant (or any Transferee) for insolvency or for appointment of a receiver, trustee or assignee or for adjudication, reorganization or arrangement under any bankruptcy act and such petition filed has not dismissed within thirty (30) days thereafter, (iii) shall be payable to Landlord and its successors in interest as the Landlord and shall be freely transferable without cost to any such successor or any lender holding a collateral assignment of Landlord's interest in the Lease, (iv) shall be for an initial term of not less than one year and contain a provision that such term shall be automatically renewed for successive one-year periods unless the issuer shall, at least forty-five (45) days prior to the scheduled expiration date, give Landlord notice of such nonrenewable, and (v) shall otherwise be in form and substance reasonably acceptable to Landlord. Notwithstanding the foregoing, the term of the Letter of Credit for the final period of the Term shall be for a term ending not earlier than the date sixty (60) days after the last day of the Term. Landlord shall be entitled to draw upon the Letter of Credit for its full amount (i) if Tenant shall be in default under the Lease, after the expiration of any applicable notice or cure period (or if transmittal of a default notice is barred by applicable law), or (ii) if, not less than thirty (30) days before the scheduled expiration of the Letter of Credit, Tenant has not delivered to Landlord a new Letter of Credit in accordance with this Section (which failure shall be deemed a default without notice or cure period). Landlord may, but shall not be obligated to, apply the amount so drawn to the extent necessary to cure Tenant's default under the Lease. Any amount drawn in excess of the amount applied by Landlord to cure any such default shall be held by Landlord as a security deposit for the performance by Tenant of its obligations hereunder pursuant to the terms set forth in the first paragraph of this Section 15.01. After any such application by Landlord of the Letter of Credit, Tenant shall reinstate the Letter of Credit to the amount originally required to be maintained hereunder, upon demand. Within sixty (60) days after the expiration or sooner termination of the Term the Letter of Credit, to the extent not applied, shall be returned to the Tenant. In the event that Tenant shall fully and faithfully comply with all of a sale of the terms, provisions, covenants and conditions of this Building or lease, conveyance or transfer of the Building, Landlord shall have the right to transfer the security shall be returned to the transferee, and upon notice to Tenant no later than ten (10) days after of such transfer, Landlord shall thereupon be released by Tenant from all liability for the Expiration Date return of such security; and after delivery subject to Section 10.02(b), Tenant agrees to look to the transferee solely for the return of entire possession of the Demised Premises said security. The provisions hereof shall apply to Landlord. In the event Landlord applies every transfer or retains any portion or all assignment made of the security depositedto such a transferee. Tenant further covenants that it will not assign or encumber or attempt to assign or encumber the Letter of Credit or the monies deposited herein as security, Tenant shall forthwith restore the amount so applied and that neither Landlord nor its successors or retained so that at all times the amount deposited assigns shall be $4,010,000.00bound by any assignment, encumbrance, attempted assignment or attempted encumbrance.

Appears in 1 contract

Sources: Lease Agreement (Metabolix, Inc.)

Security Deposit. 6.01 Subject Tenant hereby agrees to pay to Landlord a security deposit of nine thousand four hundred fifty-three dollars and no cents ($9,453.00), which is equal to first month’s Base Rental, on the day this Lease is executed by Tenant (the “Security Deposit”). Upon the occurrence of any Event of Default by Tenant, Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the provisions extent necessary to make good any arrears of Section 6.02, Tenant shall have deposited with Landlord, on Base Rental or before the date hereof the sum of $4,010,000.00. as security for the faithful performance and observance by Tenant of the terms, provisions and conditions of this lease; it is agreed that in the event Tenant defaults in respect of Additional Rental or any of the terms, provisions and conditions of this leaseother payment obligation hereunder, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration cost of any applicable cure perioddamage, Landlord may useinjury, apply expense, or retain the whole or liability caused by any part Event of Default by Tenant hereunder. Any remaining balance of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security Security Deposit shall be returned by Landlord to Tenant no later than ten (10) days within a reasonable period of time after the Expiration Date termination or expiration of this Lease and after delivery the satisfaction of entire possession Tenant’s obligations hereunder. The Security Deposit shall not be considered an advance payment of rental or a measure of Landlord's damages in case of default by Tenant. Tenant shall not be entitled to receive and shall not receive any interest on the Demised Premises to Security Deposit, and Landlord may commingle the same with other monies of Landlord. In the event Landlord applies the Security Deposit or retains any portion or all thereof to the payment of the security depositedany sum described above and this Lease is not terminated, Tenant shall forthwith restore immediately deposit with Landlord an amount of money equal to the amount so applied or retained so that at all times the applied, and such amount deposited shall be $4,010,000.00deemed to be part of the Security Deposit. In the event of a sale or transfer of Landlord’s interest in the Premises, Landlord shall have the right to transfer the Security Deposit to the purchaser or lessor, as the case may be, and upon any such transfer and acknowledgement of receipt of Security Deposit by such transferee, Landlord shall be relieved of all liability to Tenant for the return of the Security Deposit, and Tenant shall look solely to the new owner or lessor for the return of the Security Deposit.

Appears in 1 contract

Sources: Triple Net Office Lease Agreement (Franklin Financial Network Inc.)

Security Deposit. 6.01 Subject to the provisions of Section 6.02, Tenant shall have has deposited with Landlord, on or before the date hereof Landlord the sum of $4,010,000.00. as security for the faithful performance and observance by Tenant The Landlord hereby acknowledges receipt of the terms, provisions Deposit and conditions shall deposit said funds within thirty (30) days after receipt in an interest bearing escrow account devoted exclusively to security deposits(s) in a federally insured banking or savings institution which does business within the State of this lease; it is agreed Maryland. Simple interest shall accrue at six (6) month intervals from the date the Landlord deposits such funds at a rate of not less than that in the event Tenant defaults in respect of any required by Section 8 of the terms, provisions and conditions Real Property Article of this lease, including, but the Annotated Code of Maryland. Tenant may not limited to, utilize the payment Deposit as rent nor shall he/she require the Landlord to indemnify himself/herself from said sum of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole money or any part of the security so deposited thereof with respect to any particular violation or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period▇▇▇▇▇▇. In the event that any part of the said Deposit shall have been utilized by Landlord in accordance with the terms hereof or applicable law the Tenant shall fully upon the delivery of notice of same immediately deposit with the Landlord the amount so applied by Landlord so that the Landlord shall have the full Deposit on hand at all times during the term of this Lease, and faithfully comply with all any renewal term hereof or holding over period, subject to the payment provisions set forth. In the event of the termssale of the property upon which the Premises are situated, provisions, covenants and conditions or the transfer or assignment by the Landlord of this leaseLease, the security Landlord shall have the right to transfer said Deposit to the transferee and Landlord shall be returned to Tenant no later than ten (10) days after considered released from all liability for the Expiration Date and after delivery of entire possession return of the Demised Premises Deposit, if hereinafter required, and the Tenant shall look solely to the new Landlord for the return of his Deposit. It is agreed that the foregoing shall apply to every transfer or assignment of the Deposit to a new Landlord. In the event of any rightful or permitted assignment of this Lease by the Tenant to any assignee or sub- lessee, the Landlord applies shall be deemed to hold the Deposit as a deposit made by the assignee or retains any portion or all sub-lessee, and Landlord shall have no further liability with respect to the return of such Deposit to the Tenant assignor. Within forty-five (45) days after the end of the security depositedtenancy, the Landlord shall return the Deposit to the Tenant (via first class or regular mail, they cannot be picked up at the office); together with simple interest earned thereon, less any damages rightfully withheld. If deductions are made for damages, Landlord shall provide a written list of the damages, and costs. The Landlord shall determine damages, if any, by conducting an inspection on the Premises within five (5) days after they are vacated by the Tenant. Tenant has the right to be present at the time of inspection to determine if any damages were done to the Premises if, and only if, within fifteen (15) days prior to date of moving, Tenant notifies Landlord by certified mail of (i) his intention to move, (ii) the date of moving, (iii) the Tenant’s new address. Upon receipt of such notice, Landlord shall forthwith restore notify Tenant by certified mail of the amount so applied time and date of inspection, which date shall occur within five (5) days before or retained so five (5) days after date of moving as designated in Tenant’s notice, such date of inspection to be at the sole discretion of the Landlord. Should Tenant request an additional inspection, the Tenant would be responsible for a fee of $100 per additional inspection. ▇▇▇▇▇▇ acknowledges that at all times this paragraph constitutes written notice of his/her rights under subsection 8-203 of the amount deposited shall be $4,010,000.00Real Property Article of Annotated Code of Maryland, as amended from time to time.

Appears in 1 contract

Sources: Residential Lease

Security Deposit. 6.01 Subject to the provisions Upon its execution of Section 6.02this Lease, Tenant shall have deposited deposit with Landlord the Security Deposit designated in the Basic Lease Provisions. The Security Deposit shall be held by Landlord, on or before the date hereof the sum of $4,010,000.00. without liability for interest, as partial security for the full and faithful performance and observance by Tenant of all the terms, provisions covenants, and conditions of this lease; it is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this leaseLease to be performed by Tenant, including, but not limited towithout limitation, those relating to the payment of rent and additional rent, which default continues after any notice required under this lease repairing the Premises (other than normal wear and tear) and cleaning the expiration Premises upon termination of any applicable cure period, the Term. Landlord may use, apply or retain commingle the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent Security Deposit and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may shall not be required to expend keep it separate from its general funds. In the event of the failure of Tenant to abide by reason of Tenant's default in respect of any of the terms, covenants and conditions of this leaseLease, including but not limited towithout limitation those relating to rent, repairs and cleaning as stated above, then Landlord at its option, may use any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member amount of the New York Clearing House Association located Security Deposit to pay any overdue rent or to compensate Landlord for any loss or damage sustained or suffered due to such failure by Tenant. Tenant shall, upon the written demand of Landlord LANDLORD'S INITIALS: TENANT'S INITIALS: /s/ [ILLEGIBLE] /s/ [ILLEGIBLE] --------------------- --------------------- immediately remit to Landlord a sufficient amount in the City form of New York selected by Landlord and any interest earned thereon a cashier's check to restore the Security Deposit to the original sum deposited. Failure to do so within five (less any administrative fee to which Landlord may be entitled pursuant to applicable law5) days after such demand shall be paid to Tenant annually provided constitute a material breach of this Lease. Provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and Lease, within thirty (30) days following the later to occur of (i) the expiration of the term of this Lease or (ii) the date on which Landlord receives possession of the Premises, Landlord shall return to Tenant (or at Landlord's option to any applicable cure periodassignee of Tenant's interest under this Lease) any unused portion of the Security Deposit. In the event that Tenant of a transfer or assignment of Landlord's title or interests in the Premises, Landlord shall fully and faithfully comply with all deliver to the transferee or assignee (in cash or by credit) any unused portion of the termsSecurity Deposit then held by Landlord, provisions, covenants and conditions of this lease, the security thereupon Landlord shall be returned relieved of any further liability to Tenant no later than ten (10) days after with respect to the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00Security Deposit.

Appears in 1 contract

Sources: Office Lease Agreement (Newgen Results Corp)

Security Deposit. 6.01 Subject to the provisions of Section 6.02, Tenant shall have deposited hereby deposits with Landlord, on or before the date hereof Landlord the sum of $4,010,000.00. referred to in Article I hereof as security for the faithful performance and observance by Tenant of the terms, provisions every term and conditions condition of this lease; it is agreed that in Lease. If any of the event rents herein reserved or any other sum payable by Tenant defaults to Landlord 38 shall be overdue or unpaid, or if Landlord makes any payment on behalf of Tenant or if there shall be a breach or default by Tenant in respect of any of the terms, provisions and conditions term or condition of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure periodLease, Landlord may use, apply or retain the whole use all or any part of the security so deposited or to perform the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required same for the payment account of any rent and additional rent or any other sum as to which Tenant is in default Tenant, or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued in the re-letting of the Premises, whether such damages or default accrue before or after summary proceedings or other re-re- entry by Landlord. The provisions herein contained do not limit the rights of Landlord pursuant to the terms of Article XXIV of this Lease. It is understood that no interest on said security shall will be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected paid by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodTenant. In the event that Tenant shall fully and faithfully comply with all of any sale, transfer or assignment of the termsLandlord's interest under this Lease, provisionsLandlord may transfer or assign said security to the vendee, covenants transferee or assignee, as the case may be, and conditions of this lease, the security Landlord thereupon shall be returned released from all liability for the repayment of said security, and Tenant, in each instance, shall look solely to Tenant no later than ten (10) days after such vendee, transferee or assignee, as the Expiration Date case may be, for repayment of said security. The provisions hereof shall apply to each such sale, transfer or assignment and after delivery to each such transfer or assignment of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00such security.

Appears in 1 contract

Sources: Lease Agreement (Famous Dave S of America Inc)

Security Deposit. 6.01 Subject to the provisions Concurrently with Tenant's execution of Section 6.02this Lease, Tenant shall have deposited deposit with Landlord, on or before the date hereof Landlord the sum of $4,010,000.00specified in Paragraph 1.1 hereof as a "Security Deposit". Said sum shall be held by Landlord as a security deposit for the faithful performance and observance by Tenant of all of the terms, provisions covenants, and conditions of this lease; it is agreed that Lease to be kept and performed by Tenant during the Lease Term, and shall not in the any event be used or applied by Tenant as "last month's rent." If Tenant defaults in with respect of to any of the terms, provisions and conditions provision of this leaseLease, including, but not limited to, the provision relating to the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure periodRent, Landlord may (but shall not be required to) use, apply or retain the whole all or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required Security Deposit for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum amount which Landlord may reasonably expend or may be required to expend spend by reason of Tenant's default in respect of or to compensate Landlord for any of the terms, covenants and conditions of this lease, including but not limited to, any damages other loss or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to damage which Landlord may be entitled pursuant to applicable law) shall be paid to suffer by reason of Tenant's default. If any portion of said Security Deposit is so used or applied, Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the termsshall, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than within ten (10) days after written demand therefor, deposit cash with Landlord in the Expiration Date amount sufficient to restore the Security Deposit to its original amount. 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 Security Deposit. If Tenant fully and faithfully performs every provision of this Lease to be performed by it, the Security Deposit or any balance thereof shall be returned to Tenant (or at Landlord's option, to the last assignee of Tenant's interest hereunder) at the expiration of the Lease Term and after delivery of entire possession of Tenant has vacated the Demised Premises to LandlordPremises. In the event of termination of Landlord's interest in this Lease, Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited transfer said Security Deposit to Landlord's successor in interest whereupon Landlord shall be $4,010,000.00released from liability for the return of such Security Deposit or any accounting therefor.

Appears in 1 contract

Sources: Lease Agreement (3dfx Interactive Inc)

Security Deposit. 6.01 Subject to On the provisions date of Section 6.02execution of this Lease, Tenant shall have deposited with Landlord, on or before the date hereof pay Landlord the sum of Twenty Five Thousand Five Hundred Twenty and 83/100 Dollars ($4,010,000.0025,520.83) (hereinafter referred to as “Security Deposit”) as evidence of good faith on the part of Tenant in the fulfillment of the terms of this Lease, which shall be held by the Landlord during the Term of this Lease, or any renewal thereof. Under no circumstances will Tenant be entitled to any interest on the Security Deposit. The Security Deposit may be used by Landlord, at its discretion, to apply to any amount owing to Landlord hereunder, or to pay the expenses of repairing any damage to the Premises, except natural wear and tear occurring from normal use of the Premises, which exists on the day Tenant vacates the Premises, but this right shall not be construed to limit Landlord’s right to recover additional sums from Tenant for damages to the Premises. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand, in immediately available funds, the amount so applied in order to restore the Security Deposit to its original amount. In addition to any other rights available to Landlord hereunder, the Security Deposit shall be forfeited in any event if Tenant fails to occupy the Premises as security Tenant for the faithful performance and observance full original term of this Lease, or if this Lease should for any reason whatsoever be terminated prior to the normal Expiration Date of the original term, or of any renewal thereof. If there are no payments to be made from the Security Deposit as set out in this paragraph, or if there is any balance of the Security Deposit remaining after all payments have been made, the Security Deposit, or such balance thereof remaining, will be refunded to the Tenant within thirty (30) days after fulfillment by Tenant of all obligations hereunder. In no event shall Tenant be entitled to apply the terms, provisions and conditions of this lease; it is agreed that in Security Deposit to any Rent due hereunder. In the event of an act of bankruptcy by or insolvency of Tenant, or the appointment of a receiver for Tenant defaults or a general assignment for the benefit of Tenant’s creditors, then the Security Deposit shall be deemed immediately assigned to Landlord. The right to retain the Security Deposit shall be in respect of any of the terms, provisions addition and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required alternative to Landlord’s other remedies under this lease and the expiration of any applicable cure period, Landlord may use, apply Lease or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend provided by reason of Tenant's default in respect of any of the terms, covenants law and conditions of this lease, including but shall not limited to, any damages or deficiency accrued before or after be affected by summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee proceedings to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire recover possession of the Demised Premises to LandlordPremises. In the event Landlord applies Upon sale or retains any portion or all conveyance of the security depositedBuilding, Tenant Landlord may transfer or assign the Security Deposit to any new owner of the Premises, and upon such transfer, and so long as the new owner has assumed liability for the Security Deposit in writing, all liability of Landlord for the Security Deposit shall forthwith restore the amount so applied or retained so that at all times the amount deposited terminate. Landlord shall be $4,010,000.00entitled to commingle the Security Deposit with its other funds.

Appears in 1 contract

Sources: Lease Agreement (Wells Real Estate Fund Iii L P)

Security Deposit. 6.01 Subject (a) ▇▇▇▇▇▇ agrees to the provisions of Section 6.02, Tenant shall have deposited with Landlord, on or before the date hereof the sum of $4,010,000.00. pay Manager as a security deposit for the faithful performance fulfillment of Tenant’s obligations under the terms of this Lease. The security deposit only will be returned without interest within one (1) month after the termination of this Lease, or the surrender and observance by Tenant acceptance of the termsProperty, provisions unless retained by the Manager for such causes as provided in this Lease. (b) ▇▇▇▇▇▇ acknowledges and conditions of this lease; it is agreed agrees that said security deposit may be placed in an interest-bearing account and that Manager will retain the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord interest (c) Manager may use, apply or retain the whole all or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) deposit to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default owes to Manager herein, or for any sum which Landlord Manager (or the owner) may reasonably expend for actual damages (normal wear and tear excepted) arising out of or may be required related to expend ▇▇▇▇▇▇’s abandonment of the Property or default in respect to any of the terms or provisions of the Lease, (provided that Manager attempts to mitigate said actual damages), and including, but not limited to any repair, replacement, cleaning or painting of the Property rendered necessary or desirable by reason of the negligence, carelessness, accident or abuse by Tenant or the invitees, guests, or members of Tenant's default in respect of ’s household beyond ordinary wear and tear, or to pay (or apply against) any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry amounts owed by Landlord. Tenants to Manager as permitted by law. (d) The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all application of the security deposited, Tenant deposit shall forthwith restore the amount so applied or retained so that at all times be at the amount deposited sole discretion of Manager in accordance with this Lease and the law. The appropriation of all or part of this security deposit shall not be an exclusive remedy for Manager, but shall be $4,010,000.00cumulative and in addition to all other remedies of Manager at law or under this Lease. (e) Notwithstanding the above, if there is a bonafide dispute over the security deposit, Manager may, upon notice to all parties having interest in the security deposit, interplead the funds into a court of competent jurisdiction. ▇▇▇▇▇▇ agrees to indemnify and hold Manager harmless from and against all claims, suits and damages arising out of or related to the actions by Manager of its duties hereunder regarding the handling of the Tenant’s security deposit. This security deposit may not be applied by Tenant to rent under any circumstances.

Appears in 1 contract

Sources: Residential Rental Agreement

Security Deposit. 6.01 Subject to Concurrent with the provisions full execution and delivery of Section 6.02this Lease, Tenant shall have deposited deposit with Landlord, on or before Landlord a security deposit (the date hereof “SECURITY DEPOSIT”) in the sum amount set forth in Section 10 of $4,010,000.00the Summary. The Security Deposit shall be held by Landlord as security for the faithful performance and observance by Tenant of all the terms, provisions covenants, and conditions of this lease; it is agreed that Lease to be kept and performed by Tenant during the Lease Term. The Security Deposit shall not be mortgaged, assigned or encumbered in any manner whatsoever by either party without the event prior written consent of the other. If Tenant defaults in with respect of to any of the terms, provisions and conditions of this leaseLease, includingLandlord may, but shall not limited be required to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole all or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required Security Deposit for the payment of any rent and additional rent Rent or any other sum as to which Tenant is in default default, or for the payment of any sum which amount that Landlord may reasonably expend spend or may be required become obligated to expend spend by reason of Tenant's default in respect ’s default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the termsSecurity Deposit is so used or applied, covenants Tenant shall, within five (5) days after written demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and conditions of Tenant’s failure to do so shall be a default under this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by LandlordLease. The security shall be deposited in a separate interest bearing account segregated from Landlord's fundsuse, in a commercial bank which is a member application or retention of the New York Clearing House Association located in the City of New York selected Security Deposit, or any portion thereof, by Landlord and shall not (a) prevent Landlord from exercising any interest earned thereon 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 Security Deposit, nor (less b) operate as a limitation on any administrative fee recovery to which Landlord may otherwise be entitled pursuant entitled. Tenant acknowledges that Landlord has the right to applicable law) shall be paid to Tenant annually provided Tenant is not then in default transfer or mortgage its interest in the observance or performance Real Property and the Building and in this Lease and Tenant agrees that in the event of any such transfer or mortgage, Landlord shall have the right to transfer or assign the Security Deposit to the transferee or mortgagee. Upon such transfer or assignment of its obligations under this lease the Security Deposit, provided that the transferee acknowledges receipt of the Security Deposit, Landlord shall thereby be released by Tenant from all liability or obligation for the return of such Security Deposit and Tenant shall took solely to such transferee or mortgagee for the return of the Security Deposit. Tenant shall earn interest on the unapplied Security Deposit at the rate of 6% per annum; provided that, at Landlord’s option, Landlord may elect (which continues election must be made, if at all, within thirty (30) business days after notice Landlord’s receipt of the Security Deposit) to deposit the Security Deposit in a bank and account mutually acceptable to Landlord and Tenant, in which case the Security Deposit shall earn interest at the rate earned in such account. Within thirty (30) days after the expiration or earlier termination of this Lease, any applicable cure period. In the event that Tenant shall fully and faithfully comply with all unapplied portion of the terms, provisions, covenants and conditions of this lease, the security Security Deposit plus accrued interest shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00Tenant.

Appears in 1 contract

Sources: Office Lease (Wh Holdings Cayman Islands LTD)

Security Deposit. 6.01 Subject to Concurrently with the provisions execution of Section 6.02this Sublease, Tenant shall have ▇▇▇▇▇▇ has deposited with Landlord, on or before the date hereof Landlord the sum of $4,010,000.00____________________________________ ("Security Deposit"), which shall not exceed one month's rental. The Security Deposit shall be retained by Landlord as security for the faithful performance and observance payment by Tenant of the terms, provisions rents herein agreed upon for the faithful performance by Tenant of the terms and conditions of this lease; it Lease, and to cover any damage to the Premises or to fixtures and equipment therein for which Tenant is agreed that in liable. Landlord may apply the event Tenant defaults in respect of total Security Deposit, or any portion thereof, towards the payment of the termsrents and all other sums payable by Tenant under this Sublease. Tenant shall remain liable for any amount by which the Security Deposit shall be insufficient. Landlord may pursue any other appropriate legal or equitable rights and remedies. Any portion of the Security Deposit (including any interest which may be due under applicable law or regulations) which is not applied as aforesaid shall be refunded to the Tenant within forty-five (45) days after Tenant has vacated the Premises (or as otherwise may be required by applicable law or regulations). If there is found to be damage which the Security Deposit would properly defray, provisions Landlord shall notify Tenant, in writing, or otherwise as required by law, of Landlord's intention to withhold a specified amount of the Security Deposit to defray expenses of correcting the damage. Landlord shall provide Tenant with an itemized statement of repairs and conditions other uses to which the Security Deposit is to be applied. Security Deposit funds received by Landlord shall be deposited promptly upon receipt in a banking or savings institution within the District of this lease, including, but Columbia in an account which shall be devoted exclusively to security deposits and which shall accrue interest at a rate not limited to, less than that required by the Housing Regulations of the District of Columbia. Tenant shall not apply the Security Deposit or any portion of it towards the payment of rent and additional rent, which default continues after for any notice required under month during the term of this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole Sublease or any part renewals or extensions thereof. If ▇▇▇▇▇▇ withdraws from this Sublease prior to approval of the security so deposited or the proceeds Board of Directors of the Letter Cooperative or prior to the commencement of Credit (as set forth in Section 6.02 hereof) the Term of this Sublease, the Security Deposit shall be used, to the extent required for necessary, to cover costs incurred or damages sustained by the payment of any rent and additional rent or any other sum as to which Tenant is Landlord in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of connection with the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00withdrawal.

Appears in 1 contract

Sources: Sublease Agreement

Security Deposit. 6.01 Subject to the provisions of Section 6.02, Tenant shall have has deposited with Landlord, on or before the date hereof Landlord the sum of Ten Thousand and No/100 Dollars ("$4,010,000.00. 10,000.00") (the "Security Deposit") as security for the full and faithful performance and observance by Tenant of the terms, provisions and conditions all of this lease; it is agreed that Tenant's obligations hereunder. Tenant grants to Landlord a security interest in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required such security deposit to secure Tenant's obligations under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of Lease. No interest shall be paid upon the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which deposit nor shall Landlord may reasonably expend or may be required to expend maintain the deposit in a segregated account, unless required by reason of Tenant's default applicable law in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlordwhich event Landlord will comply with such legal requirement. The security deposit shall not be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodconstrued as prepaid rent. In the event that Tenant shall default in the full and faithful performance of any of the terms hereof, then Landlord may, without notice, either retain the security deposit as liquidated damages, or Landlord may retain the same and apply it toward any damages sustained by Landlord, including but not limited to actual, consequential or other direct or indirect damages sustained by the Landlord by reason of the default of Tenant, including but not limited to any past due rent. In the event of bankruptcy or other debtor-creditor proceedings, either voluntarily or involuntarily instituted by or against Tenant, the security deposit shall be deemed to be applied in the following order: to damages, obligations and other charges, including any damages sustained by Landlord, other than unpaid rent, due to Landlord for all periods prior to the filing of such proceedings; to accrued and unpaid rent prior to the filing of such proceeding; and thereafter to actual damages, obligations, other charges and damages sustained by Landlord and rent due the Landlord for all periods subsequent to such filing. In the event of a sale of the Leased Premises or all or any portion of the Building, Landlord shall have the right to transfer the security deposit to the buyer, and Landlord shall thereupon be relieved of all obligations to return the security deposit to Tenant, and Tenant agrees to look solely to the buyer for the return of the security deposit. If Tenant fully and faithfully comply complies with all of the terms, provisions, covenants and conditions of this leaseterms hereof, the security deposit or any balance thereof shall be returned to Tenant no later than ten within thirty (1030) days after the Expiration Date and after delivery expiration of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains this Lease, including any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00renewal thereof.

Appears in 1 contract

Sources: Lease Agreement (Biomimetic Therapeutics, Inc.)

Security Deposit. 6.01 Subject As caution and guarantee of performance related to the provisions obligations of Section 6.02any nature resulting from this Lease, Tenant and to be assumed by Lessee, and in particular as caution and guarantee of timely payment of rents, reimbursable charges and taxes, occupancy allowances, charges, work, penalties, compensations, without limitation, Lessee shall pay to Lessor upon the Effective Date [_____]. This amount paid as security deposit shall be increased or decreased at the same time and in the same proportions as the rent, each time said rent is subject to indexation or modification, the difference being paid with the first modified amount, [_____]. Lessor shall have deposited with Landlord, on the option at any time to use without further formalities all or before the date hereof the sum of $4,010,000.00. as security for the faithful performance and observance by Tenant of the terms, provisions and conditions of this lease; it is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or deposit for the proceeds compensatory payment of amounts due pursuant to this Lease and to its renewals, if any. In this event, Lessee will need to replenish said security deposit, in its totality, upon first request from Lessor, subject to the application of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required termination clause, at Lessor’s discretion. Such amount will be retained by Lessor for the payment entire duration of the Lease and its renewals, and shall be reimbursed to Lessee upon termination of occupancy, following Lessee’s move, return of the keys, and performance of any rent and additional rent or restoration of the Leased Premises, including the deduction of any amount owed to Lessor for any reason. Such amount shall be retained by Lessor in lieu of damages, without prejudice of any other sum as to which Tenant is amounts, in default or for any sum which Landlord may reasonably expend or may be required to expend the event of termination of this Lease because of non-performance by reason of Tenant's default in respect Lessee of any of Lessee’s obligations. This security deposit shall not be interest-bearing for the terms, covenants and conditions benefit of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodLessee. In no event will Lessee have the event that Tenant shall fully right to pay the last rent and faithfully comply with all of charges by using the terms, provisions, covenants and conditions of this leasesecurity deposit. If the Leased Premises must be sold, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all amount of the security deposited, Tenant shall forthwith restore the amount so applied or deposit retained so that at all times the amount deposited by Lessor shall be $4,010,000.00transferred to the new lessor upon simple notification sent to Lessee. Lessee shall expressly acknowledge the transfer, such that Lessee may not file any reimbursement claim for the security deposit against Lessor, Lessee’s credit for restitution of the security deposit, if any, being then retained against the new lessor.

Appears in 1 contract

Sources: Commercial Lease (Inter Parfums Inc)

Security Deposit. 6.01 Subject to the provisions of (a) The sum which is set forth in Section 6.02, 1.04 which Tenant shall have has deposited with Landlord, on or before the date hereof the sum of $4,010,000.00. as Landlord is security for the full and faithful performance and observance by Tenant of the terms, provisions and conditions of this lease; it is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required all its obligations under this lease and the expiration Lease or in connection with this Lease. If an Event of any applicable cure periodDefault (as herein defined) has occurred, Landlord may use, apply or retain the whole or any part of the security so deposited or Security Deposit (following notice to Tenant except in the proceeds event of the Letter of Credit (a monetary default in which event no notice shall be required) in such order and in such combination as set forth in Section 6.02 hereof) to the extent required Landlord elects, for the payment of any rent and additional rent (i) Rent or any other sum as to sums of money which Tenant is may not have paid or which may become due after the occurrence of the Event of Default; (ii) any sum expended by Landlord on Tenant's behalf in default accordance with the provisions of this Lease; or for (iii) any sum which the Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect such Event of any of the terms, covenants and conditions of this leaseDefault, including but not limited to, any damages or deficiency accrued before in the reletting of the Demised Premises in connection with Article XVI hereof. In the case of every such application or after summary proceedings retention during the Lease Term, Tenant shall, on demand, pay to Landlord a sum equal to that so applied or other re-entry by Landlordretained, which shall be added to the Security Deposit so that the same shall be restored to its original amount. Landlord may use, apply or retain the whole or any part of the Security Deposit for the repair of damage to the Demised Premises upon Tenant's surrender of the Demised Premises on the Expiration Date, provided Landlord has given prior notice and Tenant has failed to correct or repair said damage. The security shall be deposited in a separate interest bearing account segregated from Landlord's fundsuse, in a commercial bank which is a member application or retention of the New York Clearing House Association located in the City of New York selected Security Deposit or portion thereof by Landlord shall not prevent Landlord from exercising any other right or remedy provided for hereunder or at law and shall not operate as a limitation on any interest earned thereon (less any administrative fee recovery to which Landlord may otherwise be entitled. (b) The Security Deposit shall bear no interest; and if legally permissible, Landlord shall be entitled pursuant to applicable lawcommingle the Security Deposit with Landlord's other funds. (c) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that If Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions provisions of this leaseLease, the security Security Deposit or any balance thereof shall be returned to Tenant no later than ten within thirty (1030) days after the Expiration Date and or upon any later date after delivery of entire possession of which Tenant has vacated the Demised Premises to LandlordPremises. In the event absence of evidence satisfactory to Landlord applies or retains of any portion or all assignment of the security depositedright to receive the Security Deposit or the remaining balance thereof, Landlord may return the Security Deposit to the original Tenant regardless of one or more assignments of Tenant's interest in such Security Deposit. In such event, upon the return of such Security Deposit or balance thereof to the original Tenant, Landlord shall be completely relieved of liability hereunder. (d) Tenant covenants and agrees that it shall not assign, pledge, hypothecate, mortgage or otherwise encumber the Security Deposit during the term of the Lease. (e) The Security Deposit may be transferred to any purchaser of Landlord's interest in the Building or the Real Estate, and upon such transfer and notice of same to Tenant, Landlord shall be relieved of any obligation with respect thereto. (f) Tenant shall forthwith restore have the amount so applied right to substitute an irrevocable letter of credit ("Letter of Credit") for the cash security deposit, subject to Landlord's approval of (i) the institution or retained so that at all times bank issuing said Letter of Credit, and (ii) the amount deposited shall be $4,010,000.00form of the Letter of Credit.

Appears in 1 contract

Sources: Lease Agreement (Cover All Technologies Inc)

Security Deposit. 6.01 Subject Tenant shall provide Landlord a Security Deposit of $124,045.20, which Security Deposit Tenant shall deliver to Landlord at or prior to the provisions time of Section 6.02Tenant’s execution of this Lease, by cashier’s check, wire transfer or other method of payment acceptable to Landlord; provided, however, that Tenant may, at its option, provide a clean, renewable, standby letter of credit to Landlord in lieu of a cash security deposit on a form reasonably acceptable to Landlord and issued by a financial institution reasonably acceptable to Landlord. If Tenant elects to post a letter of credit then such letter of credit shall have deposited with be provided to Landlord within 5 business days following Prime Landlord’s consent to this Lease. In the event of any breach, on default or before the date hereof the sum of $4,010,000.00. as security for the faithful performance and observance other failure by Tenant of the terms, provisions and conditions with respect to any term or condition of this lease; it is agreed that in the event Tenant defaults in respect of any of the termsLease, provisions and conditions of this lease, including, including but not limited to, to the payment of rent and additional rentRent, which default continues after any notice required under this lease and the expiration of beyond any applicable notice and cure period, Landlord may use, apply or retain the whole all or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) Security Deposit to the extent required for the payment of any rent and additional rent sum in default, or any other sum as which Landlord may be required to which Tenant is in default spend or for incur by reason of Tenant’s failure, or any other sum which Landlord may reasonably expend in its reasonable discretion deem necessary to spend or may be required to expend incur on Tenant’s behalf or by reason of Tenant's default ’s failure. (Nothing in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security Lease shall be deposited in a separate interest bearing account segregated construed to create or imply an obligation on the part of Landlord to pay or incur any amount on Tenant’s behalf or by reason of Tenant’s failure.) In such event, Tenant shall within 5 days after demand deposit with Landlord such amount as is required to replace all funds removed from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected Security Deposit by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided in accordance with this paragraph. If Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues Lease, the amount of the Security Deposit then held by Landlord shall be repaid to Tenant within 30 days after notice and the expiration or sooner termination of any applicable cure periodthis Lease. In the event that of any breach, default or other failure by Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions respect to any term or condition of this leaseLease, Landlord’s right to retain the security Security shall be returned deemed to Tenant no later than ten (10) days after the Expiration Date be in addition to any and after delivery of entire possession of the Demised Premises all other rights and remedies available to Landlord. In the event Landlord applies under this Lease, at law or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00in equity.

Appears in 1 contract

Sources: Office Sublease (Ooma Inc)

Security Deposit. 6.01 Subject 29.1 Tenant has deposited with Landlord that sum of money equal to three (3) months of Fixed Rent (the "Security Deposit") as security for the full, faithful and punctual performance by Tenant of all of the terms of this Lease. In the event the annual Fixed Rent payable under Article 3 of this Lease shall increase at any time, and from time to time, pursuant to the provisions of Section 6.02said Article 3, Tenant shall have deposited with Landlordshall, on or before the date hereof same day that any such increase in the annual Fixed Rent shall be effective, deposit with Landlord a sum sufficient to increase the then current Security Deposit to an amount equal to three (3) months of $4,010,000.00annual Fixed Rent then payable hereunder, as so increased pursuant to Article 3 hereof. as security for the faithful performance and observance by Tenant of the terms, provisions and conditions of this lease; it is agreed that in In the event Tenant defaults in respect the performance of any of the terms, provisions and conditions terms of this leaseLease, including, but not limited to, including the payment of rent and additional rent, which default continues after any notice required under this lease and or in the expiration event of any applicable cure perioda Bankruptcy Event, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) Security Deposit to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions terms of this leaseLease, including but not limited to, any damages or deficiency accrued in the re-letting of the Demised Premises, whether accruing before or after summary proceedings or other re-entry by Landlord. The security In the case of every such use, application or retention, Tenant shall, on demand, pay to Landlord the sum so used, applied or retained which shall be added to the Security Deposit so that the same shall be replenished to its former amount. If Tenant shall fully and punctually comply with all of the terms of this Lease, the Security Deposit, without interest, shall be returned to Tenant promptly after the termination of this Lease and delivery of exclusive possession of the Demised Premises to Landlord. In the event of a sale or lease of the Building, Landlord shall have the right to transfer the Security Deposit to the vendee or lessee and Landlord shall immediately be released by Tenant from all liability for the return of the Security Deposit; and Tenant agrees to look solely to the new owner or landlord for the return of the Security Deposit; and it is agreed that the provisions hereof shall apply to every transfer or assignment made of the Security Deposit to a new owner or landlord. Tenant shall not assign or encumber or attempt to assign or encumber the monies deposited in herein as security and neither Landlord nor its successors or assigns shall be bound by any such assignment, encumbrance, attempted assignment or encumbrance. 29.2 In lieu of a separate interest bearing account segregated from Landlord's fundscash deposit, in Tenant may deliver to Landlord a clean, irrevocable and unconditional Letter of Credit (the "Letter of Credit") issued by and drawn upon any commercial bank which is a member of the New York Clearing House Association located (hereinafter referred to as the "Issuing Bank") with offices for banking purposes in the City of New York selected and having a net worth of not less than One Billion and 00/100 ($1,000,000,000.00) Dollars, which Letter of Credit shall have a term of not less than one year, be in the form attached hereto as Exhibit F, be for the account of Landlord and be in the amount of the Security Deposit. The Letter of Credit shall provide that: (i) The Issuing Bank shall pay to Landlord or its duly authorized representative an amount up to the face amount of the Letter of Credit upon presentation of the Letter of Credit and a sight draft in the amount to be drawn; (ii) The Letter of Credit shall be deemed to be automatically renewed, without amendment, for consecutive periods of one year each during the term of this Lease, unless the Issuing Bank sends written notice (hereinafter referred to as the "Non-Renewal Notice") to Landlord by certified or registered mail, return receipt requested, not less than thirty (30) days next preceding the then expiration date of the Letter of Credit, that it elects not to have such Letter of Credit renewed; (iii) Landlord, within twenty (20) days of its receipt of the Non-Renewal Notice, shall have the right, exercisable by a sight draft, to receive the monies represented by the Letter of Credit (which monies shall be held by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled as a cash deposit pursuant to the terms of this Article 29 pending the replacement of such Letter of Credit or Tenant's default after notice and the expiration of any applicable lawcure period hereunder); (iv) Upon Landlord's sale of Landlord's interest in the land and the Building, the Letter of Credit shall be paid transferable, without charge, by Landlord, as provided in Section 29.3 hereof; and (v) If a Bankruptcy Event occurs, Landlord shall have the right, exercisable by a sight draft, to receive monies represented by the Letter of Credit. 29.3 In the event of a sale of Landlord's interest in the land and the Building, Landlord shall have the right to transfer (at no expense to Landlord) the cash security or Letter of Credit, as the case may be, deposited hereunder to the vendee or lessee, and Landlord shall, after notice to Tenant annually provided of such transfer, sent by certified mail, return receipt requested, including the name and address of the transferee, be released by Tenant from all liability for the return of such cash security or Letter of Credit. In such event, Tenant agrees to look solely to the new landlord for the return of said cash security or Letter of Credit. It is agreed that the provisions hereof shall apply to every transfer or assignment made of said cash security or Letter of Credit to a new landlord. 29.4 Tenant covenants that it will not then in default assign or encumber, or attempt to assign or encumber, the monies or Letter of Credit deposited hereunder as security, and that neither Landlord nor its successors or assigns shall be bound by any such assignment, encumbrance, attempted assignment, or attempted encumbrance. 29.5 Landlord agrees that it will not draw down the proceeds of the Letter of Credit except in the observance or performance event of any of its obligations under this lease which continues a default, after notice and the expiration of any applicable cure period, by Tenant hereunder or a Bankruptcy Event or the non-renewal of such Letter of Credit by the Issuing Bank. 29.6 In the event that at any time during the term of this lease, Landlord, in Landlord's reasonable opinion, believes (a) that the net worth of the Issuing Bank shall be less than the minimum amount specified in Section 29.2 hereof, or (b) that circumstances have occurred indicating that the Issuing Bank may be incapable of, unable to, or prohibited from honoring the then existing Letter of Credit (hereinafter referred to as the "Existing L/C") in accordance with the terms thereof, then, upon the happening of either of the foregoing, Landlord may send written notice to Tenant (hereinafter referred to as the "Replacement Notice") requiring Tenant within ten (10) days to replace the Existing L/C with a new letter of credit (hereinafter referred to as the "Replacement L/C") from an Issuing Bank meeting the qualifications described in Section 29.2 hereof. Upon receipt of a Replacement L/C meeting the qualifications of Section 29.2 hereof, Landlord shall forthwith return the Existing L/C to Tenant. In the event that Tenant shall fully and faithfully comply with all (i) a Replacement L/C meeting the qualifications of Section 29.2 hereof is not received by Landlord within the termstime specified, provisionsor (ii) Landlord reasonably believes an emergency exists, covenants and conditions of this leasethen in either event, the security Existing L/C may be presented for payment by Landlord and the proceeds thereof shall be returned held by Landlord in accordance with Section 29.1 hereof, subject, however, to Tenant no later than ten (10) days after Tenant's right, at any time thereafter prior to a Tenant's default hereunder, to replace such cash security with a new letter of credit meeting the Expiration Date and after delivery qualifications of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00Section 29.2 hereof.

Appears in 1 contract

Sources: Lease Agreement (American Home Mortgage Holdings Inc)

Security Deposit. 6.01 Subject Tenant agrees to the provisions of Section 6.02, Tenant shall have deposited deposit with Landlord, on or before upon the date hereof execution of this Lease, the sum of $4,010,000.00. 22,295.59 as security for the full and faithful performance and observance by Tenant of the termseach and every term, provisions provision, covenant and conditions condition of this lease; it is agreed that in the event Lease. If Tenant defaults in respect of to any of the terms, provisions provisions, covenants and conditions of this lease, Lease including, but not limited to, the payment of rent the Base Rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure periodRent Adjustments, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any such rent and additional rent in default, or for any other sum as to which Tenant is in default or for any sum which the Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the termsincluding, covenants and conditions of this lease, including but not limited towithout limitation, any damages or deficiencies in the reletting of the demised premises, whether such damages or deficiency shall have accrued before or after summary proceedings or other any re-entry by Landlord. The If any of the security shall be deposited in a separate interest bearing account segregated so used, applied or retained by Landlord at any time or from Landlord's fundstime to time, Tenant shall promptly, in a commercial bank which is a member of each such instance, on written demand therefor by Landlord, pay to Landlord such additional sum as may be necessary to restore the New York Clearing House Association located security to the original amount set forth in the City first sentence of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodparagraph. In the event that If Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this leaseLease, the security security, or any balance thereof, shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession following: (a) the time fixed as the expiration of the Demised Premises term of this Lease; (b) the removal of Tenant and its property from the demised premises; (c) the surrender of the demised premises by Tenant to LandlordLandlord in accordance with this Lease; and (d) the time required for the Rent Adjustment due pursuant to the Lease to have been computed by Landlord and paid by Tenant. Except as otherwise required by law, Tenant shall not be entitled to any interest on the aforesaid security. In the event absence of evidence satisfactory to Landlord applies or retains any portion or all of an assignment of the right to receive the security depositedor the remaining balance thereof, Landlord may return the security to the original Tenant, regardless of one or more assignments of this Lease. Upon the transfer of Landlord's interest under this Lease, Landlord's obligation to Tenant with respect to the security deposit shall forthwith restore terminate upon assumption of such obligation by the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00transferee.

Appears in 1 contract

Sources: Lease (Option Care Inc/De)

Security Deposit. 6.01 Subject (a) On or prior to the provisions of Section 6.02date that Subtenant is no longer controlled by or under common control with Sublandlord, Tenant Subtenant shall have deposited deposit with Landlord, on or before the date hereof Sublandlord the sum of TWO HUNDRED SEVENTY-ONE THOUSAND SIX HUNDRED THIRTY-FIVE and 00/100 ($4,010,000.00. 271,635.00) Dollars as security (the “Security Deposit”) for the faithful performance and observance by Tenant Subtenant of the terms, provisions covenants and conditions of this lease; it is agreed that in Sublease. Subtenant’s failure to timely deliver the event Tenant Security Deposit shall be a material default under this Sublease. If Subtenant defaults in respect of any of the terms, provisions and covenants or conditions of this leaseSublease, including, but not limited to, the payment of rent Fixed Rent and additional rentAdditional Rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord Sublandlord may use, apply or retain the whole or any part of the security Security Deposit so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent Fixed Rent and additional rent Additional Rent or any other sum as to which Tenant Subtenant is in default default, or for reimbursement of any sum which Landlord that Sublandlord may reasonably expend or may be required to expend by reason of Tenant's Subtenant’s default in respect of any of the terms, covenants and conditions of this leaseSublease, including including, but not limited to, any damages or deficiency in resubletting of the Subleased Premises, whether such damages or deficiency accrued before or after summary proceedings or other re-entry by LandlordSublandlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant If Subtenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this leaseSublease, the security Security Deposit (without interest) shall be returned to Tenant no later Subtenant after both the date fixed as the end of this Sublease and delivery of possession of the entire Subleased Premises to Sublandlord in the condition required hereunder. Subtenant further covenants that it will not assign or encumber or attempt to assign or encumber the Security Deposit, and that neither Sublandlord nor its successors or assigns shall be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance. In the event of any use, application or retention of the Security Deposit by Sublandlord, Subtenant shall, within five (5) days of demand, pay to Sublandlord the sum so used, applied or retained. (b) In lieu of the cash Security Deposit, Subtenant shall deliver to Sublandlord a clean, irrevocable and unconditional letter of credit (“Letter of Credit”) issued by and drawn upon a member of the Clearing House Association or another commercial bank reasonably satisfactory to Sublandlord (hereinafter referred to as the “Issuing Bank”) with offices for banking purposes in New York City, and having a Commercial Paper credit rating of A-1/P-1 or better from Standard & Poor’s (the “Minimum Rating Requirement”), which Letter of Credit shall be payable in New York City, have a term of not less than ten one (101) year, be in a form that complies with requirements sets forth in Section 20(c) below and that is otherwise reasonably acceptable to Sublandlord, name Sublandlord as beneficiary, and be maintained in the amount of the Security Deposit for the entire Term plus a period of sixty (60) days thereafter. Notwithstanding the foregoing, the Letter of Credit may provide that it can be drawn upon the office of Issuing Bank located outside of New York City if the drawing thereon may be consummated by facsimile and/or reputable overnight courier. (c) The Letter of Credit shall provide that (i) the Issuing Bank shall pay to Sublandlord or its duly authorized representative an amount up to the face amount of the Letter of Credit upon presentation of the Letter of Credit and a sight draft in the amount to be drawn; and (ii) the Letter of Credit either shall be for a term ending sixty (60) days after the Expiration Date and after delivery of entire possession end of the Demised Premises Term or shall be deemed to Landlordbe automatically renewed, without amendment, for consecutive periods of one (1) year each during the Term of this Sublease, unless the Issuing Bank sends written notice to Sublandlord by certified or registered mail, return receipt requested, not less than sixty (60) days next preceding the then expiration date of the Letter of Credit, that it elects not to have such Letter of Credit renewed. (d) Notwithstanding anything to the contrary contained herein, Subtenant acknowledges that Subtenant is obligated to provide Sublandlord with Replacement Security (as hereinafter defined) within fifteen (15) days of notice from Sublandlord if any of the following events (each, a “Triggering Event”) occurs: (1) the Issuing Bank of the Letter of Credit is placed into receivership or conservatorship by the Federal Deposit Insurance Corporation or any successor or similar entity; or (2) the Issuing Bank of the Letter of Credit fails to meet the Minimum Rating Requirement. Within fifteen (15) days of Sublandlord’s notice to Subtenant of a Triggering Event, Subtenant shall replace the Letter of Credit with either a letter of credit issued by a commercial bank that satisfies the requirements set forth in Section 20(b) hereof or other security (the “Replacement Security”) acceptable to Sublandlord in its sole and absolute discretion. If Subtenant fails to provide the Replacement Security as aforesaid, then, notwithstanding anything in this Sublease to the contrary, (1) such failure shall constitute a default under this Sublease for which there shall be no notice or grace or cure periods being applicable thereto other than the aforesaid fifteen (15) day period and Sublandlord shall be entitled to exercise any and all rights and remedies provided under this Sublease, and (2) Sublandlord may immediately draw upon the Letter of Credit in whole or in part, and the proceeds thereof shall be held or applied, as applicable, pursuant to the terms of this Sublease. (e) In the event Landlord applies Sublandlord assigns or retains any portion otherwise transfers its interest in the Prime Lease, Sublandlord shall have the right to transfer (at no expense to it) the cash Security Deposit or all Letter of Credit, as the case may be, deposited hereunder to the transferee, and Sublandlord shall, after notice to Subtenant of such transfer, including the name and address of the security depositedtransferee, Tenant be released by Subtenant from all liability for the return of such cash Security Deposit or Letter of Credit. In such event, Subtenant agrees to look solely to the transferee for the return of said cash Security Deposit or Letter of Credit. Upon Sublandlord’s assignment or other transfer of its interest in the Prime Lease, Subtenant shall forthwith restore have its bank issue a new Letter of Credit on all the same terms and conditions and in the appropriate amount so applied to such transferee in exchange for the return of the then existing Letter of Credit and without charge to Sublandlord or retained so such transferee. It is agreed that the provisions hereof shall apply to every transfer or assignment made of said cash Security Deposit or Letter of Credit to a transferee. (f) Sublandlord may draw upon the Letter of Credit at all times the amount deposited following times: (i) at any time that Sublandlord is permitted to use or apply the Security Deposit pursuant to the terms hereof; (ii) upon any failure by Subtenant to renew, at least thirty (30) days in advance of expiration, a Letter of Credit that would otherwise expire prior to the date which is sixty (60) days after the end of the Term; or (iii) as set forth in Section 20(d) above. Amounts drawn by Sublandlord under this subparagraph shall be $4,010,000.00held by Sublandlord as cash security pursuant to the terms of this Section 20.

Appears in 1 contract

Sources: Sublease (Sema4 Holdings Corp.)

Security Deposit. 6.01 Subject to the provisions terms of Section 6.0222.00 in the Addendum attached hereto, Tenant shall have deposited with Landlord, on or before the date hereof the sum of $4,010,000.00. as security for to secure the faithful performance and observance by Tenant of all the termscovenants, provisions conditions, and conditions of agreements in this lease; it is agreed that in Lease set forth and contained on the event Tenant defaults in respect of any part of the termsTenant to be fulfilled, provisions kept, observed and conditions of this leaseperformed, including, but without limiting the generality of the foregoing, such covenants, conditions and agreements in this Lease which become applicable upon the expiration or termination of the same or upon termination of Tenant's right to possession pursuant to Section 18.0 of the Lease, Tenant has deposited herewith the Security Deposit with Agent on the understanding: (a) that the Security Deposit or any portion thereof not limited topreviously applied, or from time to time such other portions thereof, may be applied to the curing of any default that may then exist, without prejudice to any other remedy or remedies which the Landlord may have on account thereof, and upon such application Tenant shall pay Agent on demand the amount so applied which shall be added to the Security Deposit so the same may be restored to its original amount; (b) that should the Leased Premises be conveyed by Landlord or should Agent cease to be the agent of the beneficiary or beneficiaries of Landlord, the payment Security Deposit or any portion thereof not previously applied may be turned over to Landlord's grantee or the new agent, as the case may be, and if the same be turned over as aforesaid, the Tenant hereby releases Landlord and Agent from any and all liability with respect to the Security Deposit and/or its application or return, and the Tenant agrees to look to such grantee or agent, as the case may be, for such application or return; (c) that Landlord shall have no personal liability with respect to said sum and Tenant shall look exclusively to Agent or its successors pursuant to subsection (b) hereof for return of rent and additional rent, which default continues after any notice required under this lease and said sum on the expiration of any applicable cure periodthis Lease; (d) that Agent or its successor shall not be obligated to hold said Security Deposit as a separate fund, Landlord but on the contrary may usecommingle the same with its other funds; (e) that if Tenant shall faithfully fulfill, apply or retain keep, perform and observe all of the whole or any covenants, conditions, and agreements in this Lease set forth and contained on the part of the security so Tenant to be fulfilled, kept, performed and observed, the sum deposited or the proceeds part or portion thereof not previously applied shall be returned to the Tenant without interest no later than thirty (30) days after the expiration of the Letter term of Credit (as set forth in Section 6.02 hereof) this Lease or any renewal or extension thereof, provided Tenant has vacated the Leased Premises and surrendered possession thereof to the extent required for Landlord at the payment expiration of any rent and additional rent said term or any other sum extension or renewal thereof as provided herein and Tenant has paid all amounts due or to which Tenant is become due under this Lease; (f) in default the event that Landlord terminates the Lease or for any sum which Landlord Tenant's right to possession pursuant to Section 18.0 of this Lease, Agent may reasonably expend or apply the Security Deposit against all damages suffered to the date of such termination and/or may retain the Security Deposit to apply against such damages as may be required to expend suffered or shall accrue thereafter by reason of Tenant's default default; and (g) in respect the event any bankruptcy, insolvency, reorganization or other credit-debtor proceedings shall be instituted by or against Tenant, or its successors or assigns, the Security Deposit shall be deemed to be applied first to the payment of any rents and/or other charges due Landlord for all periods prior to the institution of such proceedings, and the balance, if any, of the terms, covenants and conditions Security Deposit may be retained or paid to Landlord in partial liquidation of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00damages.

Appears in 1 contract

Sources: Industrial Space Lease (Tekgraf Inc)

Security Deposit. 6.01 Subject to the provisions of Section 6.02, 32.1 Tenant shall have has deposited with Landlord, on or before the date hereof Landlord the sum of Five Million and 00/100 Dollars ($4,010,000.00. 5,000,000.00) as security for the full and faithful performance and observance of every provision of this Lease to be performed by Tenant (all or any part of such amount, the terms, provisions and conditions "Security Deposit"). If an Event of Default shall have occurred with respect to any provision of this lease; it is agreed that in the event Tenant defaults in respect of any of the termsLease, provisions and conditions of this lease, including, including but not limited to, to (i) the provisions relating to the payment of rent Fixed Rent and additional rentAdditional Rent, which or (ii) any default continues after any beyond applicable notice required and grace periods under this lease and the expiration of any applicable cure period, Tenant's Other Lease; then Landlord may use, apply or retain the whole all or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required Security Deposit for the payment of any rent and additional rent Fixed or Additional Rent or any other sum as to which Tenant is in default or for the payment of any sum other amount which Landlord may reasonably expend spend or may become obligated to spend by reason of such Event of Default, or to compensate Landlord for any other loss, cost or damage to which Landlord is entitled pursuant to this Lease by reason of such Event of Default. Landlord shall give Tenant notice contemporaneously with such use or application of any portion of the Security Deposit. Tenant shall, within five (5) days after the giving of such notice, deposit with Landlord cash in an amount sufficient to restore the Security Deposit to the amount then required pursuant to the terms of this Article 32 (Tenant's obligation to make such payment shall be deemed a requirement that Tenant pay an item of Additional Rent) and Tenant's failure to do so shall be a breach of this Lease. Landlord shall deposit the Security Deposit, if in cash, in an interest-bearing account in a bank with a branch in New York State; however, Landlord shall not, unless otherwise required by Legal Requirements, pay interest to Tenant on the Security Deposit, and if Landlord is required to maintain the Security Deposit in an interest bearing account, Landlord will retain the maximum amount permitted under Legal Requirements as a bookkeeping and administrative charge. Tenant shall not assign or encumber any part of the Security Deposit, and no assignment or encumbrance by Tenant of all of any part of the Security Deposit shall be binding upon Landlord, whether made prior to, during, or after the Term. Landlord shall not be required to expend exhaust its remedies against Tenant or against the Security Deposit before having recourse to any other form of security held by reason Landlord and recourse by Landlord to any Security Deposit shall not affect any remedies of Landlord which are provided in this Lease or which are available to Landlord in law or in equity. If Tenant shall fully and faithfully perform every covenant and provision of this Lease to be performed and observed by Tenant, the Security Deposit or any balance thereof shall be returned to Tenant within thirty (30) days after the expiration or sooner termination (other than a termination pursuant to Article 16) of the Term and Tenant's default surrender to Landlord of the Premises. In the event the Building is sold, Landlord shall transfer the Security Deposit to the new owner and Landlord shall thereupon be released by Tenant from all liability for the return of said Security Deposit; and Tenant agrees to look to the new owner solely for the return of the Security Deposit. A lease of the entire Building shall be deemed a transfer within the meaning of the foregoing sentence. Landlord shall use reasonable efforts to notify or cause Tenant to be notified in respect the event of any transfer of the termsBuilding. Section 32.2 In lieu of a cash deposit, covenants Tenant may deliver to Landlord a clean, irrevocable, non-documentary and conditions unconditional letter of this leasecredit (the "Letter of Credit") issued by and drawn upon any commercial bank, including but not limited totrust company, any damages national banking association or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited savings and loan association having offices for banking purposes in a separate interest bearing account segregated from Landlord's funds, in a commercial bank the City of New York and which is a member of the New York Clearing House Clearinghouse Association located in (the City "Issuing Bank") and which (or the parent company of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable lawwhich) shall be paid have outstanding unsecured, uninsured and unguaranteed indebtedness, or shall have issued a letter of credit or other credit facility that constitutes the primary security for any outstanding indebtedness (which is otherwise uninsured and unguaranteed), that is then rated, without regard to Tenant annually provided Tenant is not then in default in the observance qualification of such rating by symbols such as "+" or performance of any of its obligations under this lease which continues after notice "-" or numerical notation, "Aa" or better by ▇▇▇▇▇'▇ Investors Service and the expiration of any applicable cure period. In the event that Tenant shall fully "AA" or better by Standard & Poor's Corporation, and faithfully comply with all of the termshas combined capital, provisions, covenants surplus and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00.undivided profits

Appears in 1 contract

Sources: Lease Agreement (Barnesandnoble Com Inc)

Security Deposit. 6.01 Subject to Upon Tenant's execution of the provisions of Section 6.02Lease, Tenant shall have deposited deposit with Landlord, on or before the date hereof Landlord the sum of $4,010,000.0011,118.60. Said sum shall be held by Landlord as security for the faithful performance and observance by Tenant of the terms, provisions and conditions all of Tenant's obligations hereunder. If Tenant defaults with respect to any provision of this lease; it is agreed that in the event Tenant defaults in respect of any of the termsLease, provisions and conditions of this lease, including, including but not limited to, to the provisions relating to the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may (but shall not be required to) use, apply or retain the whole all or any part of the this security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required deposit for the payment of any rent and additional rent or any other sum as to which Tenant is in default default, or for the payment of any sum other amount which Landlord may reasonably expend spend or may be required become obligated to expend spend by reason of Tenant's default in respect of or to compensate Landlord for any of the terms, covenants and conditions of this lease, including but not limited to, any damages other loss or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to damage which Landlord may suffer by reason of Tenant's default. If any portion of the deposit is so used or applied, Tenant shall, upon demand, deposit cash with Landlord in an amount sufficient to restore the security deposit to its original amount. 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 pursuant to applicable law) interest on such deposit. If Tenant shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any fully and faithfully perform all of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this leaseLease, the security deposit or any balance thereof shall be returned to Tenant no later than ten (10or, at Landlord's option, to the last assignee of Tenant's interests hereunder) days after at the Expiration Date and after delivery of entire possession expiration of the Demised Premises to Landlord. In the event Lease term, provided that Landlord applies or retains any portion or all of may retain the security depositeddeposit until such time as any amount due from Tenant in accordance with Article 4 hereof has been determined and paid in full. PROVIDED THAT TENANT IS NOT IN DEFAULT UNDER THIS LEASE, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00THE SECURITY DEPOSIT SHALL BE REDUCED BY APPLYING AMOUNTS TO BASIC RENT DUE FOR THE 13TH AND 25TH MONTHS OF THE LEASE.

Appears in 1 contract

Sources: Office Lease (Childrens Internet Inc)

Security Deposit. 6.01 Subject to 40.1 On the provisions of Section 6.02respective dates specified in the Fundamental Lease Provisions, Tenant shall have deposited deposit with Landlord, on or before Landlord the date hereof two installments of the sum of $4,010,000.00. Security Deposit in the amounts specified in the Fundamental Lease Provisions which shall be held by Landlord as security for the faithful performance and observance by Tenant of the terms, conditions and provisions and conditions of this lease; it Lease, including without limitation, the surrender of possession of the Premises to Landlord as herein provided. Failure by Tenant to deposit the Security Deposits in two installments on the dates specified in the Fundamental Lease Provisions shall be deemed a material breach of this Lease. The Security Deposit shall be in the form of U.S. dollars or, at Tenant's election, a letter of credit issued on the account of Tenant by a New York Clearinghouse member bank. If the Security Deposit is in the form of U.S. dollars, the same shall be deposited by Landlord in an account designated by Landlord. The letter of credit and the issuer bank must be reasonably acceptable to Landlord in all material respects and the letter of credit must provide for partial draws and that the same may be drawn upon by Landlord pursuant to the provisions of this Section. It is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this leaseLease, including, but not limited to, the payment of rent and additional rentBase Rent or Additional Rent, which default continues after any notice required under this lease and the expiration then while there exists an Event of any applicable cure period, Default hereunder Landlord may use, apply or retain the whole or any part of the security Security Deposit so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent Base Rent and additional rent Additional Rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, Lease. If Landlord applies or retains any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member part of the New York Clearing House Association located in Security Deposit so deposited, Tenant, upon demand, shall deposit with Landlord the City of New York selected by amount so applied or retained so that Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in have the observance or performance of any of its obligations under this lease which continues after notice and full Security Deposit on hand at all times during the expiration of any applicable cure periodTerm. In the event that If Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this leaseLease, the security Security Deposit shall be returned to Tenant no later than ten (10) days promptly after the Expiration Date and after delivery of the entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of a sale of the security depositedLand or the Building or leasing of the Building, Landlord shall have the right to transfer, at Tenant's expense, the Security Deposit to the vendee or lessee, whereupon and upon acknowledgement of receipt by such vendee or lessee to or for the benefit of Tenant, Landlord shall be released by Tenant from all liability for the return of the Security Deposit; and Tenant shall forthwith restore look solely to the amount so applied new landlord for the return of the Security Deposit; it being agreed that the provisions hereof shall apply to every transfer or retained so assignment made of the Security Deposit to a new landlord. Tenant further covenants that at all times it will not assign or encumber or attempt to assign or encumber the amount deposited Security Deposit and that neither Landlord nor its successors or assigns shall be $4,010,000.00bound by any such assignment or encumbrance.

Appears in 1 contract

Sources: Lease (Franklin Credit Management Corp/De/)

Security Deposit. 6.01 Subject to the provisions of Section 6.02Concurrently with execution hereof, Tenant shall have deposited with Landlord, on or before has paid to Landlord the date hereof Security Deposit specified in the sum of $4,010,000.00. Basic Lease Information as security for the full and faithful performance of Tenant’s obligations under this Lease. If Tenant fails to pay Monthly Base Rent, Additional Charges for Expenses and observance Taxes, or other Rent or charges due hereunder, or otherwise Defaults with respect to any provision of this Lease, Landlord may use all or any portion of the Security Deposit for the payment of any Rent due hereunder, to pay any other sum to which Landlord may become obligated by reason of Tenant’s Default, or to compensate Landlord for any loss or damages which Landlord may suffer as a result of such Default (including, without limitation, amounts which Landlord may be entitled to recover pursuant to Section 1951.2 of the California Civil Code). Landlord may in its sole discretion (but shall not be required to) use the Security Deposit or any portion thereof to cure any failure by Tenant to perform any of its obligations hereunder or to compensate Landlord for any damages Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. Upon application of any part of the Security Deposit by Landlord, Landlord may, at its election, inform Tenant in writing of the amount applied and request that Tenant pay to Landlord a sum sufficient to return the Security Deposit to one hundred ten percent (110%) of the amount specified in the Basic Lease Information as the same may have been increased by prior applications of this Paragraph 32. Within five (5) business days of the receipt by Tenant of such a notice from Landlord, Tenant shall pay to Landlord in cash or immediately available funds the termssum so requested, provisions and conditions the sum so paid by Tenant shall be held by Landlord as a part of the Security Deposit. Tenant’s failure to make such payment within such time period shall constitute a Default under this Lease without the necessity of further notice or opportunity to cure, and shall accrue interest at the Default Rate pursuant to Paragraph 3(d) of the Lease. Tenant hereby acknowledges that attachment will be a proper remedy by which Landlord may seek to recover the amount that Tenant has then failed to pay. Upon expiration of the Term or earlier termination of this lease; it is agreed that in the event Tenant defaults in respect of Lease, any portion of the termsSecurity Deposit then held by Landlord shall be returned to Tenant, provisions and conditions reduced by those amounts that may be required by Landlord to remedy Defaults on the part of this lease, including, but not limited to, Tenant in the payment of rent and additional rent, which default continues after to repair damages to the Premises caused by Tenant and to clean the Premises; provided, however, that (i) Landlord shall not be obligated to return the Security Deposit or any notice required part thereof until all breaches by Tenant of its obligations under this lease Lease have been cured and the expiration of any applicable cure period, all damages which Landlord may usesuffer in connection with any such breach have been ascertained in amount and paid in full; and (ii) in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. Landlord shall have no obligation to segregate the Security Deposit from its general funds or to pay interest thereon. If Landlord conveys or transfers its interest in the Leased Premises, apply and as a part of such conveyance or retain transfer, assigns its interest in this Lease and Security Deposit, or any portion thereof not previously applied, the whole Security Deposit shall be transferred to Landlord’s successor and Landlord shall be released and discharged from any further liability to Tenant with respect to such Security Deposit. In no event shall any mortgagee or beneficiary under a mortgage or deed of trust encumbering all or any portion of the Project, or any purchaser of all or any portion of the Project at a public or private foreclosure sale under such mortgage or deed of trust, have any liability or obligation whatsoever to Tenant or Tenant’s successors or assigns for the return of all or any part of the security so deposited Security Deposit in the event any such mortgagee, beneficiary or purchaser becomes a mortgagee in possession or succeeds to the proceeds interest of the Letter of Credit (as set forth in Section 6.02 hereof) Landlord under this Lease unless, and then only to the extent required for the payment of any rent and additional rent that, such mortgagee, beneficiary or purchaser has received all or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any part of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00Security Deposit.

Appears in 1 contract

Sources: Lease Agreement (Aruba Networks, Inc.)

Security Deposit. 6.01 Subject to the provisions (a) Upon execution of Section 6.02this Sublease, Tenant Subtenant shall have deposited either deposit with Landlord, on or before the date hereof Sublandlord the sum of $4,010,000.00. 11,302.06 ("Security Deposit") which Security Deposit shall be held by Sublandlord, without obligation for interest, as security for the faithful performance obligations hereinafter set forth; it being expressly understood and observance by Tenant agreed that such Security Deposit is not an advance rental deposit or a measure of Sublandlord Sublandlord’s damages in case of Subtenant’s default. The purposes of the terms, provisions and conditions of this lease; it is agreed that Security Deposit are (a) to remedy any defaults by Subtenant in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rentRent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereofb) to repair damages to the extent required for Sublet Premises or caused by Subtenant, its employees, invitees, contractors, subcontractors, licensees, Subtenants or agents, and (c) to otherwise secure the payment faithful performance by Subtenant of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this leaseSublease to be kept and performed by Subtenant, during the security Sublease Term or any extension thereof. (b) If at any time during the term of this Sublease, (i) Subtenant should default in the payment of Rent or (ii) Subtenant should otherwise fail to keep and perform any of the provisions, covenants and conditions of this Sublease or Prime Lease to be kept and performed by Subtenant, Sublandlord, at its option, may, in addition to all other rights and remedies which it may have, utilize all or any part of the Security Deposit toward the payment of any cost, expense or damage incurred or sustained by Sublandlord directly arising out of such default by Subtenant or for payment of Sublease Rent (but Sublandlord shall not be required to do so). If Sublandlord elects to utilize the Security Deposit as aforesaid, Subtenant shall, within fifteen (15) days after written demand therefor, deposit cash with Sublandlord in an amount sufficient to restore the Security Deposit to its original amount or have issued a letter of credit in form and substance satisfactory to the Sublandlord in an amount sufficient to restore the Security Deposit to its original amount. The parties agree that the provisions of this Paragraph 4 shall not operate as a limitation upon the amount of damage to which Sublandlord is entitled by virtue of any default by Subtenant or failure by Subtenant to perform all of the provisions, covenants, conditions and agreements of this Sublease. Sublandlord shall not be required to pay Subtenant interest on the Security Deposit except as required by law. Sublandlord 's obligations with respect to the Security Deposit are those of a debtor and not trustee. Sublandlord shall have the right to commingle the Security Deposit with Sublandlord 's general and other funds, to the extent permitted by law. The Security Deposit or any balance thereof shall be returned to Tenant no later than ten Subtenant within thirty (1030) days after of (i) the Expiration Date and after delivery of entire possession expiration of the Demised Premises to Landlord. In Sublease Term, or (ii) the event Landlord applies or retains any portion or all earlier termination of this Sublease and Subtenant's vacation of the security depositedSublet Premises. (c) In case of an assignment of Sublandlord’s interest in the Sublet Premises, Tenant Sublandlord shall forthwith restore pay over any unapplied part of the amount so applied or retained so that at all times the amount deposited Security Deposit to Sublandlord 's successor, and Sublandlord shall be $4,010,000.00relieved of all liability with respect thereto so long as Sublandlord provides Subtenant with written notification of such transfer with acknowledgement of recipient's acceptance of same. The provisions of the preceding sentence shall apply to every subsequent transfer of the Sublandlord’s interest under the Prime Lease.

Appears in 1 contract

Sources: Sublease Agreement (Nabriva Therapeutics PLC)

Security Deposit. 6.01 Subject Within ten (10) days of the date of this Sublease, Subtenant shall pay to Sublessor a sum equal to the provisions of Section 6.02, Tenant shall have deposited with Landlord, on or before the date hereof the sum of $4,010,000.00. first three (3) month’s minimum rent due under this Sublease as security for the faithful payment of all rents and the performance and observance by Tenant of all agreements and conditions in this Sublease contained on the part of Subtenant to be performed or observed. In the event of any default or defaults in any such payment, performance or observance after the passage of any applicable notice and cure periods, Sublessor may apply said sum or the applicable part thereof, as the case may be, towards the curing of any such default or defaults and/or towards compensating Sublessor for any loss or damage arising from any such default or defaults. Upon the yielding up of the terms, provisions and conditions Demised Premises at the expiration or other termination of the term of this lease; it Sublease, provided there is agreed that then no ongoing default by Subtenant, any remaining amount of the security deposit not applied to cure any default shall be returned to Subtenant. Sublessor shall always have the right to apply said sum, or any part thereof, as aforesaid, in the event Tenant defaults in respect of any default or defaults if not cured during any applicable notice and cure periods, without prejudice to any other remedy or remedies which Sublessor may have, or Sublessor may pursue any other such remedy or remedies in lieu of applying said sum or any part thereof. No interest shall be payable on the termssecurity deposit or any part thereof. If Sublessor shall apply said sum or any part thereof, provisions and conditions as aforesaid, Subtenant shall upon demand pay to Sublessor the amount so applied by Sublessor, to restore the security to the amount required under the first sentence of this leaseSection. Whenever the holder of Sublessor’s interest in this Sublease, includingwhether it be the Sublessor named in this Sublease or any transferee of said Sublessor, but not limited toimmediate or remote, shall transfer its interest in this Sublease, said holder shall pay over to its transferee the payment unapplied portion of rent Subtenant’s security deposit, and additional rentthereafter said holder shall be released from any and all liability to Subtenant with respect to said security deposit or its application or return, it being understood that Subtenant shall thereafter look only to such transferee with respect to said sum, its application and return. In lieu of a cash security deposit, Subtenant shall have the right and option to deliver a letter of credit (the “Letter of Credit”) from a highly rated United States financial institution (Bank of America shall be deemed acceptable), in form reasonably acceptable to Sublessor. The Letter of Credit shall (i) be unconditional, irrevocable, transferable, and payable to Sublessor solely upon presentment by Landlord or Landlord’s agent, and (ii) contain an “evergreen” provision which default continues after provides that it is automatically renewed on an annual basis unless the issuer delivers sixty (60) days’ prior written notice of cancellation to Sublessor. Without limiting any notice required under this lease and of Sublessor’s rights or remedies hereunder, if the expiration bank issuing the Letter of any applicable cure periodCredit provides Sublessor with a cancellation notice, Landlord Sublessor may use, apply or retain the whole immediately draw upon all or any part of the security so deposited Letter of Credit and Subtenant. Any and all fees or costs charged by the issuer in connection with the issuance, maintenance or transfer of the Letter of Credit shall be paid by Subtenant. The Letter of Credit shall remain effective for sixty (60) days after the expiration or termination of this Sublease. If Subtenant defaults with respect to any provision of this Sublease, including but not limited to the provisions relating to the payment of Rent, Sublessor may, but will not be required to, draw upon all or any part of Subtenant’s Letter of Credit. If any of the proceeds of the Letter of Credit (are not applied immediately to cure any default of Subtenant, Sublessor shall hold such unapplied proceeds as a cash security deposit pursuant to the terms set forth in Section 6.02 hereof) above and Sublessor may use, apply, or retain the proceeds of the Letter of Credit to the same extent required for the payment of that Sublessor may use, apply or retain a cash security deposit. If any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any portion of the termsLetter of Credit is drawn upon, covenants Subtenant will cause the Letter of Credit to be increased to the amount required as the security deposit under this Sublease within five (5) business days after written demand from Sublessor, and conditions of this leasein such event, including but not limited toprovided there is then no outstanding default by Subtenant, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member proceeds of the New York Clearing House Association located in the City Letter of New York selected Credit retained by Landlord Sublessor as a cash security deposit and not applied to cure any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten Subtenant. If at the time Subtenant exercises its option to extend the term of this Sublease for the Extension Period, Subtenant has a market capitalization of One Billion Five Hundred Million Dollars (10$1,500,000,000.00) days after or more, then the Expiration Date and after delivery of entire possession amount of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited Security Deposit shall be $4,010,000.00reduced to one (1) month’s minimum rent.

Appears in 1 contract

Sources: Sublease (HeartWare International, Inc.)

Security Deposit. 6.01 Subject to the provisions of Section 6.02, Tenant shall have has deposited with Landlord, on or before the date hereof Landlord the sum of $4,010,000.00. 15,000.00 as security for the faithful performance and observance by Tenant of the termsteens, provisions and conditions of this leaseLease; it is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this leaseLease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may at its option use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this leaseLease, including but not limited to, any damages or deficiency in the relating of the Premises whether such damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The Landlord shall deposit the security shall be deposited in a separate into an interest bearing account segregated in a bank to be selected, from time to time, by Landlord in its sole discretion (with interest at the rate payable generally by commercial banks in Rochester, New York, from time to time on lease security commercial accounts), which account shall be separate from Landlord's fundsfunds and shall be designated as Tenant's security deposit account. ▇▇▇▇▇▇▇▇ agrees to hold the said security in such an account for the entire Lease Term, subject, however, to the terms of this Article with respect to the application of such security in the event of ▇▇▇▇▇▇'s default hereunder. To the extent permitted by law, ▇▇▇▇▇▇ agrees that Landlord shall be entitled to receive and retain, as an administrative fee, a sum equal to one (1%) percent per annum upon the security, and Landlord shall have the right to withdraw such sum from time to time as Landlord shall determine, in a commercial bank which is a member its sole discretion. The balance of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) on such security shall be paid to Tenant annually provided Tenant is not then in default in at least once during each year of the observance or performance Lease Term hereof, upon the request of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodTenant. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this leaseLease, the security shall be returned returned, without interest, to Tenant no later than ten (10) days after the Expiration Date date fixed as the end of the Lease and within a reasonable time after delivery of entire possession of the Demised demised Premises to Landlord. In the event of a sale of the land and building or leasing of the buildings, of which the demised Premises form a part, Landlord applies shall have the right to transfer the security to the vendee or retains any portion lessee, and Landlord shall thereupon be released by Tenant from all liability for the return of such security; and ▇▇▇▇▇▇ agrees to look to the new Landlord solely for the return of said security; and it is agreed that the provisions hereof shall apply to every transfer or all assignment made of the security deposited, to a new Landlord. Tenant shall forthwith restore further covenants that it will not assign or encumber or attempt to assign or encumber the amount so applied movies deposited herein as security and that neither Landlord nor its successors or retained so that at all times the amount deposited assigns shall be $4,010,000.00bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance.

Appears in 1 contract

Sources: Lease Agreement (Naviant Inc)

Security Deposit. 6.01 Subject to Through an assignment of the provisions of Section 6.02same from a prior landlord, Tenant shall is deemed to have deposited with Landlord, on or before the date hereof Landlord herein the sum of Three Thousand Five Hundred Dollars ($4,010,000.00. 3,500.00) as security for the faithful performance and observance by the Tenant of the terms, provisions and conditions of this lease; it is agreed that in the event Tenant defaults in respect of any terms of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, . The Landlord may use, apply apply, or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which the Tenant is in default or for any sum which the Landlord may reasonably expend or may be required to expend by reason of the Tenant's default in respect of any of the terms, covenants and conditions terms of this lease, including including, but not limited to, any damages or deficiency in the reletting of the leased premises, whether such damages or deficiency accrued before or after summary proceedings or other re-entry by the Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that the Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions terms of this lease, the security shall be returned to the Tenant no later than ten (10) days after the Expiration Date date fixed as the end of the lease and after delivery of entire possession of the Demised Premises leased premises to the Landlord. In the event Landlord applies of a sale or retains any portion or all lease of the premises of which the premises form a part, the Landlord shall have the right to transfer the security deposited, to the vendee or lessee and the Landlord shall thereupon be released from all liability for the return of such security. The Tenant shall forthwith restore look solely to the amount so applied new Landlord for the return of such security. The Tenant shall not assign or retained so that at all times encumber the amount money deposited as security, and neither the Landlord nor his successors or assigns shall be $4,010,000.00bound by any such assignment or encumbrance.

Appears in 1 contract

Sources: Lease (Austins Steaks & Saloon Inc)

Security Deposit. 6.01 Subject to the provisions of Section 6.02, Tenant shall have has deposited with Landlord, on or before the date hereof the sum of $4,010,000.00. Landlord as security for the faithful performance and observance by Tenant of the terms, provisions and conditions terms of this lease; it is agreed that in Lease the event sum hereinabove set forth. Such sum shall be held by Landlord free of trust, and may be co-mingled with other (including Landlord’s own) funds, and Tenant defaults in respect of any of shall not be entitled to receive the termsinterest earned thereon, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, if any. Landlord may use, use or apply on Tenant’s behalf or retain (without liability for interest) during the Term the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum sums as to which Tenant is may be in default hereunder or for any sum sums which Landlord may reasonably expend or may be required to expend by reason of Tenant's ’s default in respect of any of the terms, covenants and conditions terms of this leaseLease, including but not limited to, to any damages deficiency or deficiency accrued before or after summary proceedings or other re-entry by Landlorddamage incurred in reletting the Premises. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Provided Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions terms of this leaseLease, the such security shall be returned to Tenant no later than ten (10) days after the Expiration Date upon termination of this Lease and after delivery surrender of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of a sale of the Shopping Center or assignment of this Lease by Landlord, Landlord shall have the right to transfer the security depositedto its vendee or assignee, subject to Tenant’s aforesaid rights upon termination, and thereupon Landlord shall be released from any liability with respect to the return of such security to Tenant, such vendee or assignee to be solely responsible to Tenant therefor. Tenant shall forthwith restore not assign or encumber its interest in the amount so applied or retained so that at all times the amount deposited security deposit, and neither Landlord nor its successors and assigns shall be $4,010,000.00bound by any attempted assignment or encumbrance thereof.

Appears in 1 contract

Sources: Standard Retail Space Lease (FlexShopper, Inc.)

Security Deposit. 6.01 Subject to the provisions of Section 6.02, (a) Tenant shall have deposited deposit with Landlord, on or before Landlord the date hereof the sum of $4,010,000.00. Security Deposit as security for the faithful performance and observance by Tenant of the terms, conditions and provisions and conditions of this lease; it Lease, including without limitation the surrender of possession of the Premises to Landlord herein provided. It is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this leaseLease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure periodRent and/or Additional Rent, Landlord may use, apply or retain the whole or any part of the security Security Deposit so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent Rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's ’s default in respect of any of the terms, covenants and conditions of this leaseLease, including but not limited to, any damages or deficiency accrued in the reletting of the Premises, whether such damages or deficiency accrue or accrues before or after summary proceedings or other re-entry reentry by Landlord. If Landlord applies or retains any part of the Security Deposit so deposited, Tenant, within three (3) days’ after notice from Landlord, shall deposit with Landlord the amount so applied or retained so that Landlord shall have the full Security Deposit on hand at all times during the Term. The security failure by Tenant to deposit such additional amount within the foregoing time period shall be deposited in deemed a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled material default pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodLease. In the event that If Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this leaseLease, the security Security Deposit shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of the entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of a sale of the security depositedProperty or the Building or leasing of the Building, Landlord shall have the right to transfer the Security Deposit to the vendee or lessee and Landlord shall thereupon be released by Tenant from all liability for the return of the Security Deposit; and Tenant agrees to look solely to the new Landlord for the return of the Security Deposit; and it is agreed that the provisions hereof shall forthwith restore apply to every transfer or assignment made of the amount so applied Security Deposit to a new landlord. Tenant further covenants that it will not assign or retained so encumber or attempt to assign or encumber the Security Deposit and that at all times the amount deposited neither Landlord nor its successors or assigns shall be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance. The Security Deposit shall be placed in an interest-bearing account and all interest thereon (less the statutory administrative fee which shall be retained by Landlord) shall be remitted to Tenant annually, provided Tenant is not then in default in the performance of any of its monetary obligations under this Lease. (b) After the end of the first (1st) year anniversary of the Commencement Date of this Lease and each successive anniversary thereafter, provided that this Lease remains in full force and effect, and the original Tenant named herein remains in possession of the Premises and is not then in default under this Lease after the expiration of any applicable grace periods expressly stated in this Lease, Landlord acknowledges that upon Tenant’s written request thereto, it shall permit Tenant to reduce the sum of the Security Deposit by $4,010,000.0016,208.40 each year during the Term. This shall be implemented by Landlord reimbursing Tenant said sum in the form of either a cash payment or credit against Base Rent, at Landlord’s sole option, within twenty (20) days following Tenant’s request hereinabove.

Appears in 1 contract

Sources: Lease (Replidyne Inc)

Security Deposit. 6.01 Subject to the provisions of Section 6.02, Tenant shall have deposited deliver to Landlord concurrent with Tenant’s execution of this Lease, an unconditional, clean, irrevocable, fully assignable standby letter of credit (the “LOC”) in the amount of the Security Deposit Amount (as defined in Section 1.1) (the “Security Deposit”), which LOC shall be issued by a commercial bank which is acceptable to Landlord, on and which LOC may be presented for payment in a location in Boston, Massachusetts or before New York, New York. On thirty (30) days notice, Landlord may require that the LOC be replaced with an LOC issued by a different institution acceptable to it if the creditworthiness of the then issuing bank materially and adversely declines, and failing such replacement, Landlord may draw upon the LOC and hold the proceeds as an “LOC Security Deposit” (hereafter defined). The LOC shall be in form and content as attached hereto as Exhibit H for a term of not less than one (1) year, and at the end of the Term shall have an expiration date hereof not earlier than sixty (60) days after the sum scheduled expiration date of $4,010,000.00the Term. Tenant shall pay all expenses, points and/or fees associated with obtaining the LOC and with any transfer thereof. At Landlord’s election from time to time, the LOC shall name Landlord and its mortgagee as co-beneficiaries. The LOC shall be held by Landlord as security for the faithful performance and observance by Tenant of all the terms, provisions covenants, and conditions of this lease; it is agreed that in Lease to be kept and performed by Tenant during the event Lease Term. If Tenant defaults in Defaults with respect of to any of the terms, provisions and conditions of this leaseLease, including, but not limited to, the provisions relating to the payment of rent Fixed Rent and additional rentAdditional Rent, which default continues after or if Tenant fails to renew the LOC at least thirty (30) days before its then scheduled expiration, Landlord may, but shall not be required to, draw upon all or any notice required under this lease and portion of the expiration LOC for payment of any applicable cure period, Landlord may use, apply or retain the whole Fixed Rent and Additional Rent or any part of the security so deposited other sum in default, or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which amount that Landlord may reasonably expend spend or may be required become obligated to expend spend by reason of Tenant's default in respect ’s Default; or to compensate Landlord for any other loss, cost or damage that Landlord may suffer by reason of any Tenant’s Default. The use, application or retention of the termsLOC, covenants and conditions of or any portion thereof, by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this lease, including but not limited to, any damages Lease or deficiency accrued before or after summary proceedings or other re-entry by Landlordlaw. The security parties agree that Landlord shall not first be deposited in required to proceed against the LOC and the LOC shall not operate as a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and limitation on any interest earned thereon (less any administrative fee recovery to which Landlord may otherwise be entitled pursuant to applicable law) entitled. Any amount of the LOC which is drawn upon by Landlord, but is not used or applied by Landlord, shall be paid held by Landlord (and need not be segregated in a separate account) and deemed a security deposit (the “LOC Security Deposit”). If any portion of the LOC is drawn upon, Tenant shall, within five (5) business days after written demand therefor, reinstate the LOC to the amount then required under this Lease, and Tenant’s failure to do so shall be a Default under this Lease. Upon Tenant’s reinstatement of the LOC to the amount required under this Lease, Landlord shall promptly return to Tenant annually provided the amount of Landlord’s draw on the LOC, but only to the extent Landlord has not used or is not entitled to retain the amount drawn in accordance with this Section. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the LOC Security Deposit and/or the LOC, or any balance thereof, shall be returned to Tenant within sixty (60) days following the later of the expiration of the Term or the vacating of the Premises by Tenant. Notwithstanding the foregoing, upon the date which is two (2) years following the Phase I Commencement Date, if (a) Tenant is not then in Default under the Lease, and no event has then occurred which with the passage of time, giving of notice or both would constitute a default under the Lease, (b) no Default has occurred prior to such date, (c) Landlord has not drawn under the Security Deposit pursuant to the provisions of the Lease, and (d) Tenant has delivered to Landlord a replacement LOC in the observance amount of $759,297.94 (such replacement LOC to be in compliance with the requirements of this Section), then upon Landlord’s receipt of such replacement LOC, the Security Deposit Amount shall be reduced to $759,297.94, such replacement LOC shall be the Security Deposit, and Landlord will return to Tenant the initial LOC in the amount of $911,157.53 which was delivered by Tenant to Landlord and is then being held as the Security Deposit. Notwithstanding the foregoing, upon the date which is three (3) years following the Phase I Commencement Date, if (a) Tenant is not then in Default under the Lease, and no event has then occurred which with the passage of time, giving of notice or performance both would constitute a Default under the Lease, (b) no Default has occurred prior to such date, (c) Landlord has not drawn under the Security Deposit pursuant to the provisions of the Lease, and (d) Tenant has delivered to Landlord a replacement LOC in the amount of $607,438.35 (such replacement LOC to be in compliance with the requirements of this Section), then upon Landlord’s receipt of such replacement LOC, the Security Deposit Amount shall be reduced to $607,438.35, such replacement LOC shall be the Security Deposit, and Landlord will return to Tenant the initial LOC in the amount of $759,297.94 which was delivered by Tenant to Landlord and is then being held as the Security Deposit. Notwithstanding the foregoing, upon the date which is four (4) years following the Phase I Commencement Date, if (a) Tenant is not then in Default under the Lease, and no event has then occurred which with the passage of time, giving of notice or both would constitute a Default under the Lease, (b) no Default has occurred prior to such date, (c) Landlord has not drawn under the Security Deposit pursuant to the provisions of the Lease, and (d) Tenant has delivered to Landlord a replacement LOC in the amount of $455,578.76 (such replacement LOC to be in compliance with the requirements of this Section), then upon Landlord’s receipt of such replacement LOC, the Security Deposit Amount shall be reduced to $455,578.76, such replacement LOC shall be the Security Deposit, and Landlord will return to Tenant the initial LOC in the amount of $607,438.35 which was delivered by Tenant to Landlord and is then being held as the Security Deposit. Upon any conveyance by Landlord of its obligations interest under this lease which continues after notice Lease, the LOC shall be assigned by Landlord to Landlord’s grantee or transferee and the expiration LOC Security Deposit shall be delivered by Landlord’s grantee or transferee. Upon any such assignment or delivery, Tenant hereby releases Landlord herein named of and from any applicable cure periodand all liability with respect to the LOC and LOC Security Deposit, its and their application and return, and Tenant agrees to look solely to such grantee or transferee. In the event that This provision shall also apply to subsequent grantees and transferees. Tenant shall fully and faithfully comply with all pay as additional rent any transfer fees charged by the issuer of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00LOC.

Appears in 1 contract

Sources: Net Lease (Aspect Medical Systems Inc)

Security Deposit. 6.01 Subject to Simultaneously with the provisions execution and delivery of Section 6.02this sublease by Subtenant, Tenant shall have Subtenant has deposited with Landlord, on or before the date hereof the sum of Sublandlord $4,010,000.00. 42,550.00 as security for the full and faithful performance by Subtenant of its obligations under this Sublease; it being expressly understood and observance by Tenant agreed that Subtenant shall pay rent for the last calendar month of the termsterm hereof promptly on the first day of such month. If Subtenant shall fail to perform or observe, provisions and conditions of this lease; it is agreed that in the event Tenant defaults in respect of or shall breach or violate, any of the terms, provisions and covenants, conditions or agreements of this leaseLease, including, including but not limited to, to the payment of rent and additional rentSublease Rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord Sublandlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) such deposit to the extent required for the payment of any rent and such Sublease Rent or additional rent or any other sum as to which Tenant Subtenant is in default or for any sum which Landlord Sublandlord may reasonably expend or may be required to expend by reason of Tenant's default in respect ’s non-performance, non-observance, breach or violation of any of the terms, covenants and covenants, conditions or agreements of this leaseSublease, including but not limited to, any damages or deficiency accrued in the re-letting of the Premises, whether such damages or deficiency accrues before or after summary proceedings or other re-entry by LandlordSublandlord. The security Sublandlord shall not be deposited in required so to use, apply or retain the whole or any part of said deposit, but if the whole or any part thereof is so used, applied or retained, Subtenant shall upon demand immediately deposit with Landlord a separate interest bearing account segregated from Landlord's fundssum equal to the amount so used, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance applied or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodretained. In the event that Tenant If Subtenant shall fully and faithfully comply with all of the terms, provisionscovenants, covenants conditions and conditions agreements of this leaseSublease, the security deposit or any balance thereof remaining shall be returned to Tenant no later than ten Subtenant after the date fixed as the end of this Lease or of any renewal or extension thereof within thirty (1030) days after the Expiration Date and after delivery of entire possession of the Demised Premises to LandlordSublandlord Sublandlord shall not be required to pay Subtenant any interest on said security deposit. In the no event Landlord applies or retains any portion or all of shall the security deposited, Tenant shall forthwith restore the amount so applied deposited hereunder be construed as liquidated damages or retained so that at all times the amount deposited in any way limit Sublandlord’s right to recover damages or any sum due Sublandlord hereunder or permitted by law. If this Sublease shall be $4,010,000.00assigned, the security deposit shall be deemed assigned to the assignee, and Sublandlord shall have no liability to return the same to the assignor provided an assignment and assumption agreement is delivered to Tenant.

Appears in 1 contract

Sources: Sublease Agreement (Hudson Holding Corp)

Security Deposit. 6.01 Subject to the provisions of Section 6.02, 40.01. Tenant shall have has deposited with Landlord, on or before the date hereof the Landlord a sum equal to eight (8) monthly installments of $4,010,000.00. Fixed Rent as security for the faithful full and punctual performance and observance by Tenant of all of the terms, provisions terms and conditions of this leaseLease. In the event Tenant defaults in the performance of any of the terms of this Lease beyond the expiration of any applicable notice and cure periods, Landlord may apply the whole or any part of the security so deposited to the extent required for the payment of (i) any rent or (ii) any sum which Landlord may expend or may be required to expend by reason of Tenant's default including, without limitation, any damages or deficiency in the re-letting of the Demised Premises, whether accruing before or after summary proceedings or other re-entry by Landlord. Upon each such application, Tenant shall, on demand, pay to Landlord the sum so applied which shall be added to the Security Deposit so that the same shall be restored to the amount first set forth above. The security deposit shall be deposited in an interest-bearing account. Interest shall be remitted to Tenant, less annual administrative fees of l%, upon written request by Tenant which may be made one time in each calendar year. If Tenant shall fully comply with all of the terms of this Lease, the amount of the security deposit, with interest accrued thereon, less customary administrative fees accrued, shall be returned to Tenant promptly after the termination (or expiration not resulting from Tenant default) of this Lease, delivery of exclusive possession of the Demised Premises to Landlord and the payment to Landlord of the balance of Tenant's Tax Payment for the final Tax Year. In the event of a sale or lease of the Building, Landlord shall have the right to transfer the aforementioned security amount to the vendee or lessee and Landlord shall ipso facto be released by Tenant from all liability for the return of such security; and Tenant agrees to look solely to the new landlord for the return of said security and it is agreed that the provisions hereof shall apply to every transfer or assignment made of the security to a new landlord. Tenant shall not assign or encumber or attempt to assign or encumber the monies deposited herein as security and neither Landlord nor its successors or assigns shall be bound by any such assignment, encumbrance, or attempted assignment or encumbrance. 40.02. In lieu of the cash security deposit provided for in Section 40.01 hereof, Tenant may at any time during the term hereof deliver to Landlord and shall thereafter, except as otherwise provided herein, maintain in effect at all times during the term hereof, a clean. stand-by, irrevocable letter of credit, in form and substance reasonably satisfactory to Landlord in the amount of the security required pursuant to this Article 40 issued by a banking corporation having assets of at least five billion ($5,000,000,000.00) dollars satisfactory to Landlord and having its principal place of business or its duly licensed branch or agency in the City of New York, and, if the issuing bank is not a member of the New York Clearing House Association, confirmed by Citibank, N.A. or another bank reasonably satisfactory to Landlord which is a member of the New York Clearing House Association, which letter of credit may be presented for payment in the City of New York. Such letter of credit shall have an expiration date no earlier than the first anniversary of the date of issuance thereof and shall be automatically renewed from year to year unless terminated by the issuer thereof by notice to Landlord given by certified or registered mail, return receipt requested not less than forty-five (45) days prior to the expiration thereof. Except as otherwise provided in this Article 40, Tenant shall, throughout the term of this lease deliver to Landlord, in the event of the termination of any such letter of credit, replacement letters of credit in lieu thereof (each such letter of credit and such extensions or replacements thereof, as the case may be, is hereinafter referred to as a "Security Letter") no later than forty-five (45) days prior to the expiration date of the preceding Security Letter. The term of each such Security Letter shall be not less than one (1) year and shall be automatically renewable from year to year as aforesaid. If Tenant shall fail to obtain any replacements of a Security Letter within the time limits set forth in this Section 40.02, Landlord may draw down the full amount of the existing Security Letter and retain the same as security hereunder. 40.03. In the event Tenant defaults in respect of any of the terms, provisions provisions, covenants and conditions of this lease, beyond any applicable grace period, including, but not limited to, the payment of rent Fixed Rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the under a Security Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent Fixed Rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants provisions, covenants, and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The To insure that Landlord may utilize the security represented by the Security Letter in the manner, for the purposes, and to the extent provided in this Article 40, each Security Letter shall provide that the full amount thereof may be deposited in a separate interest bearing account segregated from drawn down by Landlord upon the presentation to the issuing bank of Landlord's funds, in sight draft drawn on the issuing bank and accompanied by a commercial bank which is statement that a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations has been declared under this lease which continues after notice and the expiration of any applicable cure periodLease. 40.04. In the event that Tenant shall fully and faithfully comply with all defaults in respect of any of the terms, provisions, covenants and conditions of the lease and Landlord utilizes all or any part of the security represented by the Security Letter but does not terminate' this Lease as provided in Article 16 hereof, Landlord may, in addition to exercising its rights as provided in Section 40.03 hereof, retain the unapplied and unused balance of the principal amount of the Security Letter as security for the faithful performance and observance by Tenant thereafter of the terms, provisions, and conditions of this lease, and may use, apply, or retain the security shall whole or any part of said balance to the extent required for payment of Fixed Rent, additional rent, or any other sums as to which Tenant is in default or for any sum which Landlord may expend or be returned required to Tenant no later than ten (10) days after the Expiration Date and after delivery expend by reason of entire possession Tenant's default in respect of any of the Demised Premises to Landlordterms, covenants, and conditions of this lease. In the event Landlord applies or retains any portion or all of the security depositeddelivered hereunder, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00not less than the security required under the provisions of Article 40. 40.05. If Tenant shall fully and faithfully comply with all of Tenant's covenants and obligations under this Lease, the security or any balance thereof to which Tenant is entitled, shall be returned or paid over to Tenant reasonably promptly after the date fixed as the end of this lease and after delivery to Landlord of entire possession of the Premises. In the event of any sale, transfer or leasing of Landlord's interest in the Building whether or not in connection with a sale, transfer or leasing of the Land to a vendee, transferee or lessee, Landlord shall have the right to transfer the unapplied part of the security and the interest thereof, if any, to which Tenant is entitled, or any interest it may have in the Security Letter, as the case may be, to the vendee, transferee or lessee and Landlord shall thereupon be released by Tenant from all liability for the return or payment thereof, and Tenant shall look solely to the new Landlord for the return or payment of the same. The provisions of the preceding sentence shall apply to every subsequent sale, transfer or leasing of the Building, and any successor of Landlord may, upon a sale, transfer, leasing or other cessation of the interest of such successors in the Building whether in whole or in part, pay over any unapplied part of said security or any interest it may have in the Security Letter, as the case may be, to any vendee, transferee or lessee of the Building, and shall thereupon be relieved of any liability with respect thereto. In the event of a sale of the Building, Landlord shall have the right to require Tenant to deliver a replacement Security Letter naming the new Landlord as beneficiary and, if Tenant shall fail to deliver the same within thirty (30) days after notice, to draw down the existing Security Letter and retain the proceeds as security hereunder until a replacement Security Letter is delivered. Except in connection with a permitted assignment of this Lease, Tenant shall not assign or encumber or attempt to assign or encumber the monies deposited herein as security or any interest thereon to which Tenant is entitled, and neither Landlord nor its successors or assigns shall be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance. In any event, in the absence of evidence reasonably satisfactory to Landlord of an assignment of the right to receive the security, or the remaining balance thereof, Landlord may return the security to the original Tenant regardless of one or more assignments of this Lease.

Appears in 1 contract

Sources: Assignment and Assumption of Lease and License Agreement (Integrated Information Systems Inc)

Security Deposit. 6.01 Subject Simultaneously with the execution and ------------- ---------------- delivery of this Lease to the provisions of Section 6.02Landlord, Tenant shall have deposited deposit with Landlord, on or before the date hereof Landlord a letter of credit in the sum of $4,010,000.00. 477,888 (the "LETTER OF CREDIT") to be held and, in accordance with this Section XLIII, presented, drawn upon and the proceeds thereof retained and applied by Landlord, as security for the faithful payment, performance and observance by Tenant of the terms, provisions covenants and conditions agreements of Tenant under and pursuant to this lease; it Lease. It is agreed and understood that in the event Tenant defaults in respect of any of the termsoccurrence of an Event of Default of Tenant, provisions Landlord may present for payment and conditions draw upon the Letter of this leaseCredit, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain retain, the whole or any part of the security so deposited or the proceeds of amounts available to be drawn under the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent Rent or Additional Rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required entitled to expend the payment of by reason of Tenant's default in respect any Event of Default of Tenant or any failure of the termsTenant to pay, covenants and conditions perform or observe any term, covenant, condition or provision of this leaseLease, including but not limited towithout limitation, any late charges, interest payments or any damages or deficiency accrued in the re-letting of the Premises whether said damages or deficiency occurred before or after summary proceedings or other re-entry by Landlord. The security If Landlord shall present, draw upon and apply or retain all or any portion of the amounts evidenced by the Letter of Credit, Tenant shall immediately replenish and reinstate the amount available to be drawn under the Letter of Credit or cause a substitute Letter of Credit in the form and amount required by this Lease to be re-issued so that at all times during the Term of this Lease, Landlord shall be deposited entitled to draw upon the entire dollar amount of the Letter of Credit in the amounts required hereunder, notwithstanding any prior presentation and draw thereon. The Letter of Credit must at all times be an irrevocable commercial letter of credit in the amount required by this Lease and payable through a separate interest bearing account segregated from bank, acceptable to Landlord in Landlord's fundsreasonable discretion. In addition, the Letter of Credit shall be payable solely to the benefit of the Landlord from time to time under this Lease and shall be automatically renewable and, upon the direction of Landlord, transferable to and payable for the benefit of any successor Landlord under the Lease. Tenant shall maintain the Letter of Credit in effect for the time period beginning on the date of this Lease through and including the date which is the last to occur of (i) the date which is 60 days after the last day of the term of this Lease or (ii) the date which is 60 days after the date of surrender delivery of the entire Premises to Landlord in accordance with the terms and provisions of this Lease. Tenant shall bear all costs and expenses in connection with procuring the Letter of Credit and maintaining it in full force and effect for the time periods required hereunder. In the event of a sale or other transfer of the Property, Tenant shall, at its sole cost and expense, cause the Letter of Credit, in the form required hereunder, to be issued to and for the benefit of such transferee or purchaser of the Property. (i) receiving notice of cancellation of the Letter of Credit or (ii) failure of Tenant to deliver to Landlord a commercial bank substitute Letter of Credit on or before the date which is a member of the New York Clearing House Association located in the City of New York selected by Landlord 30 days prior any renewal date, and any interest earned thereon (less any administrative fee to which Landlord may whether or not Tenant shall then be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the payment, performance or observance or performance of any term, covenant or provision of its obligations this Lease, Landlord shall be entitled to present and draw upon the entire amount of the Letter of Credit, and, upon so doing, Landlord shall be entitled to hold the proceeds of such payment as if it were a cash security deposit under this lease which continues after notice Lease to be applied against costs arising from Events of Default of Tenant from time to time arising under this Lease. At any time during the term of this Lease, Tenant shall have the right to convert the Letter of Credit into a cash security deposit by tendering to Landlord a sum equal to the face amount of the Letter of Credit required to be maintained by Tenant under this Lease at that time. If Tenant tenders such sum, in immediately available funds, or a replacement of the Letter of Credit for any proper purpose under this Section XLIII, Landlord shall promptly cooperate with Tenant to exchange such sum or such replacement, as the case may be, for the Letter of Credit in Landlord's possession. Landlord shall deposit any such sum tendered by Tenant in a separate, segregated, interest-bearing money-market account identified as holding Tenant's funds and shall pay all interest accruing on such account to Tenant at least once annually. In the expiration event of the occurrence of an Event of Default of Tenant, Landlord may use, apply or retain, the whole or any part of any applicable cure periodcash security deposit held by Landlord under this Section XLIII to the extent required for the payment of any Rent or Additional Rent or any other sum which Landlord may expend or be entitled to the payment of by reason of any Event of Default of Tenant or any failure of Tenant to pay, perform or observe any term, covenant, condition or provision of this Lease, including without limitation, any late charges, interest payments or any damages or deficiency in the re-letting of the Premises whether said damages or deficiency occurred before or after summary proceedings or other re-entry by Landlord. In the event that Landlord shall so apply all or any portion of the said security deposit, Tenant shall fully and faithfully comply with all immediately upon notice, restore the same to its full amount. All or any portion of the terms, provisions, covenants and conditions security deposit remaining at the expiration or other termination of this lease, the security Lease which has not been so applied shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery Tenant. Provided, as of entire possession each anniversary of the Demised Premises to Landlord. In Commencement Date, Tenant's tangible net worth is not less than $50 million and there is no Event of Default under the event Landlord applies or retains Lease beyond any portion or all of the security depositedapplicable notice and cure period, Tenant shall forthwith restore have the right to a reduction in the amount so applied of the Letter of Credit, by an amendment to or retained so that at all times replacement of the Letter of Credit then outstanding, or any such cash security deposit, by a payment from Landlord to Tenant, equal to twenty-five percent (25%) of the face amount deposited shall be $4,010,000.00of the original Letter of Credit.

Appears in 1 contract

Sources: Lease Agreement (Sycamore Networks Inc)

Security Deposit. 6.01 (A) Subject to the provisions of Section 6.02subparagraph 24(B) below, Tenant shall have Sublessee has deposited with LandlordEscrow Agent, on or before the date hereof the sum of $4,010,000.00. 119,466.67 as security for the faithful performance and observance by Tenant Sublessee of the terms, covenants, conditions, provisions and conditions agreements of this lease; it Sublease. Escrow Agent shall release such security to Sublessor upon its receipt of a copy of the Sublease Consent executed by the Underlying Landlord. It is agreed that in the event Tenant Sublessee defaults in respect of any of the terms, covenants, conditions, provisions and conditions agreements of this leaseSublease, including, but not limited to, the payment of fixed rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord Sublessor may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any fixed rent and additional rent or any other sum as to which Tenant Sublessee is in default or for any sum which Landlord Sublessor may reasonably expend or may be required to expend by reason of Tenant's Sublessee’s default in respect of any of the terms, covenants covenants, conditions, provisions and conditions agreements of this leaseSublease, including including, but not limited to, any damages or deficiency in the reletting of the demised premises, whether such damages or deficiency accrued before or after summary proceedings or other re-entry by LandlordSublessor. The security shall be deposited If Sublessor so applies or retains any part of the security, Sublessee shall, within five (5) days of demand made by Sublessor in a separate interest bearing account segregated from Landlord's fundswritten notice to Sublessee, in a commercial bank which is a member promptly deposit with Sublessor the amount so applied or retained so that Sublessor shall have the full deposit on hand at all times during the term of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodSublease. In the event that Tenant Sublessee shall fully and faithfully comply with all of the terms, provisionscovenants, covenants conditions, provisions and conditions agreements of this leaseSublease, the security shall be returned to Tenant no later than ten (10) days Sublessee after the Expiration Date and after delivery of entire possession of the Demised Premises demised premises to LandlordSublessor in the condition required by the Underlying Lease. In the event Landlord applies of an assignment by Sublessor of its interest under the Underlying Lease, Sublessor shall have the right to transfer the security and Sublessee agrees to look to the new sublessor solely for the return of said security and it is agreed that the provisions hereof shall apply to every transfer or retains any portion or all assignment made of the security depositedto a new sublessor. Sublessee further covenants that it shall not assign or encumber or attempt to assign or encumber the monies deposited herein as security and that neither Sublessor nor its successors or assigns shall be bound by any such assignment, Tenant encumbrance, attempted assignment or attempted encumbrance. (B) In lieu of the cash security deposit referred to in subparagraph 24(A) above, Sublessee may deliver to Escrow Agent and maintain in effect at all times during the term of this Sublease following delivery thereof, a clean, unconditional and irrevocable letter of credit, in substantially the form annexed hereto as Schedule B, in the amount of $119,466.67 issued by a banking corporation (“Bank”) reasonably satisfactory to Sublessor and having its principal place of business or its duly licensed branch in the City and County of New York at which the letter of credit may be presented for payment. Escrow Agent shall forthwith restore deliver any such letter of credit to Sublessor upon its receipt of a copy of the Sublease Consent executed by the Underlying Landlord. Such letter of credit shall have an expiration date no earlier than the first anniversary of the date of issuance thereof and shall provide that it shall be automatically renewed from year to year unless terminated by the Bank by notice to Sublessor given not less than ninety (90) days prior to the then expiration date therefor. It is agreed that in the event Sublessee defaults in respect of any of the terms, covenants, conditions, provisions or agreements of this Sublease, including, but not limited to, the payment of fixed rent and additional rent, or if the letter of credit is terminated pursuant to the preceding sentence and is not replaced within thirty (30) days prior to its expiration date that (i) Sublessor shall have the right to require the Bank to make payment to Sublessor of so much of the entire proceeds of the letter of credit as shall be reasonably necessary to cure the default, and (ii) Sublessor may apply said sum so paid to it by the Bank to the extent required for the payment of any fixed rent or additional rent or any other sum as to which Sublessee is in default or for any sum which Sublessor may expend or may be required to expend by reason of Sublessee’s default in respect of any of the terms, covenants, conditions, provisions and agreements of this Sublease, including, but not limited to, any damages or deficiency in the reletting of the demised premises, whether such damages or deficiency accrues before or after summary proceedings or other re-entry by Sublessor, without thereby waiving any other rights or remedies of Sublessor with respect to such default. If Sublessor applies any part of the proceeds of the letter of credit, Sublessee, upon demand, shall promptly deposit with Sublessor, the amount so applied or retained so that Sublessor shall have the full deposit on hand at all times during the amount deposited term of this Sublease. If Sublessee shall fully and faithfully comply with all of the terms, covenants, conditions, provisions and agreements of this Sublease, any letter of credit, or any remaining portion of any sum collected by Sublessor hereunder from the Bank, together with any other portion or sum held by Sublessor as security, shall be $4,010,000.00returned to Sublessee after the Expiration Date and after delivery of the entire possession of the demised premises to Sublessor in the condition required by the Underlying Lease. In the event of an assignment by Sublessor of its interest under the Underlying Lease, Sublessor shall have the right to transfer the security and Sublessee agrees to look to the new sublessor solely for the return of said security and it is agreed that the provisions hereof shall apply to every transfer or assignment made of the security to a new sublessor. Sublessee shall have the right to substitute one letter of credit for another, provided that, at all times, the letter of credit shall meet the requirements of this subparagraph 24(B).

Appears in 1 contract

Sources: Sublease Agreement (Ampex Corp /De/)

Security Deposit. 6.01 Subject to Within eleven (11) business days after the provisions execution of Section 6.02this Lease, Tenant shall have deposited with Landlordexecute and deliver to Landlord a Pledge Agreement in substantially the form attached hereto as Exhibit F-1, an Account Control Agreement in substantially the form attached hereto as Exhibit F-2 and an Account Management Agreement in the form of Exhibit F-3 (or such other forms as are reasonably acceptable to the parties thereto) granting Landlord a first position security interest in an account (the "Pledge Account") containing securities meeting the critical specified therein and/or cash in the total amount specified in Section 1 as a Security Deposit as such amount may be reduced pursuant to the following paragraph. Upon written notice of its intention to do so after an Event of Default has occurred, Landlord shall be permitted to immediately direct the sale of bonds or other assets in the Pledge Account and the disbursal of the proceeds thereof (not to exceed the amount required to cure the Event of Default) for application by Landlord on the same terms and conditions as Landlord would be permitted to apply a cash security deposit. Landlord may apply all or before part of the Security Deposit to any unpaid rent from Tenant or to cure any other defaults of Tenant. If Landlord uses any part of the Security Deposit, Tenant shall restore the Security Deposit or the Pledge Account to the amount required under the preceding paragraph as of the date hereof of Landlord's application of the sum Security Deposit or any part thereof, within 10 days after Landlord's written request. If Landlord transfers its interest in the Premises, Tenant shall cooperate with Landlord (at Landlord's expense) to assign the Landlord's interest in the Pledge Account to its successor in interest, whereupon Landlord shall be automatically released from any liability for the return of the Security Deposit. If this Lease is terminated prior to the end of the Initial Term or the Renewal Option Term (if exercised), any Rent paid for any period beyond the termination date will be considered an additional Security Deposit. If, at the end of the Lease Term, Tenant has fully complied with all obligations under this Lease, then the remaining Security Deposit shall be returned to Tenant within thirty (30) days after the final inspection of the Premises, after Landlord has verified that Tenant has fully vacated the Premises, removed all of its property and surrendered the Premises in the condition required by this Lease; provided that Landlord may hold back a portion of the Security Deposit until final determination of Tenant's share of costs such as insurance and taxes, whereupon any final adjustment shall be made and any remaining Security Deposit shall be returned to Tenant. As with all other defaults, if the Premises are not surrendered in the condition required, Landlord may perform the work necessary to put them in that condition and deduct the cost from the Security Deposit. Landlord's obligations with respect to the Security Deposit are those of a secured creditor and not of a trustee. The amount of the Security Deposit and/or securities in the Pledge Account may be reduced through two mechanisms, provided that the total Security Deposit shall not in any circumstances fall below Four Hundred Seventy Eight Thousand One Hundred Twenty-five Dollars ($478,125): (a) If Tenant engages in a public stock offering, and achieves and maintains a capitalized value of One Hundred Million Dollars ($100,000,000.00) there shall be a reduction of the Security Deposit (a "Capitalized Value Reduction") to Nine Hundred Fifty Six Thousand Two Hundred Fifty ($956,250.00) (if for any reason the Security is already below that level, there shall be no reduction), provided (i) if the capitalized value thereafter reduces below $100,000,000.00, the Capitalized Value Reduction shall be reversed and the amount of the Pledge Account restored to the full amount required but for the Capitalized Value Reduction, and (ii) thereafter the Capitalized Value Reduction shall be reinstituted if Tenant reaches a capitalized value of One Hundred Fifty Million Dollars ($150,000,000.00) and (iii) reversed again if the capitalized value thereafter reduces below $100,000,000 (and so on from that point with trigger points of $4,010,000.00. as security for the faithful performance 100,000,000 and observance by Tenant $150,000,000 respectively). (b) In addition to and independent of the termsCapitalized Value Reduction, provisions and conditions of this lease; it is agreed that the Security Deposit and/or bonds in the event Tenant defaults in respect of any Pledge Account shall be reduced by Three Hundred Eighty Four Thousand Seven Hundred Fifty Dollars ($384,790.00) per year commencing on the fourth anniversary of the terms, provisions Commencement Date Tenant if and conditions of this lease, including, but only if Tenant has not limited to, the payment of rent at any time been in default after notice and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations period under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00Lease.

Appears in 1 contract

Sources: Office Lease (Seattle Genetics Inc /Wa)

Security Deposit. 6.01 Subject to Concurrently with the provisions execution of Section 6.02this Sublease, Tenant shall have ▇▇▇▇▇▇ has deposited with Landlord, on or before the date hereof Landlord the sum of $4,010,000.00_______________ (“Security Deposit”), which shall not exceed one month’s rental. The Security Deposit shall be retained by Landlord as security for the faithful performance and observance payment by Tenant of the termsrents herein agreed upon, provisions for the faithful performance by Tenant of the terms and conditions of this lease; it Lease, and to cover any damage to the Premises or to fixtures and equipment therein for which Tenant is agreed that in liable. Landlord may apply the event Tenant defaults in respect of total Security Deposit, or any portion thereof, towards the payment of the termsrents and all other sums payable by Tenant under this Sublease. Tenant shall remain liable for any amount by which the Security Deposit shall be insufficient. Landlord may pursue any other appropriate legal or equitable rights and remedies. Any portion of the Security Deposit (including any interest which may be due under applicable law or regulations) which is not applied as aforesaid shall be refunded to Tenant within forty-five (45) days after Tenant has vacated the Premises (or as otherwise may be required by applicable law or regulations). If there is found to be damage which the Security Deposit would properly defray, provisions Landlord shall notify Tenant, in writing, or otherwise as required by law, of Landlord’s intention to withhold a specified amount of the Security Deposit to defray expenses of correcting the damage. Landlord shall provide Tenant with an itemized statement of repairs and conditions other uses to which the Security Deposit is to be applied. Security Deposit funds received by Landlord shall be deposited promptly upon receipt in a banking or savings institution within the District of this lease, including, but Columbia in an account which shall be devoted exclusively to security deposits and which shall accrue interest at a rate not limited to, less than that required by the Housing Regulations of the District of Columbia. Tenant shall not apply the Security Deposit or any portion of it towards the payment of rent and additional rent, which default continues after for any notice required under month during the term of this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole Sublease or any part renewals or extensions thereof. If ▇▇▇▇▇▇ withdraws from this Sublease prior to approval of the security so deposited or the proceeds Board of Directors of the Letter Cooperative or prior to the commencement of Credit (as set forth in Section 6.02 hereof) the Term of this Sublease, the Security Deposit shall be used, to the extent required for necessary, to cover costs incurred or damages sustained by the payment of any rent and additional rent or any other sum as to which Tenant is Landlord in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of connection with the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00withdrawal.

Appears in 1 contract

Sources: Sublease Agreement

Security Deposit. 6.01 Subject to the provisions of Section 6.02, (a) Tenant shall have has deposited with Landlord, on or before Landlord the date hereof the sum of $4,010,000.00. Security Deposit as security for the full, faithful and punctual performance and observance by Tenant of all of the terms, provisions and conditions terms of this lease; it is agreed that Lease, whether in cash or by delivery to Landlord of a clean, irrevocable letter of credit in the amount of the Security Deposit. In the event Tenant defaults in respect the performance of any of the terms, provisions and conditions terms of this leaseLease, including, but not limited to, including the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure periodRent, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) Security Deposit to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default Rent or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions terms of this leaseLease, including but not limited to, any damages or deficiency accrued in the reletting of the Premises, whether accruing before or after summary proceedings or other re-entry reentry by Landlord. The security In the case of every such use, application or retention, Tenant shall, on demand, pay to Landlord the sum so used, applied or retained which shall be deposited added to the Security Deposit so that the same shall be replenished to its former amount and Tenant's failure to do so shall be a material breach of this Lease. Landlord shall keep such deposit separate from its general accounts in a separate an interest bearing account segregated from account, which accrued interest shall be added to the principal amount of the Security Deposit. The Security Deposit shall not be deemed a limitation on Landlord's funds, in damages or a commercial bank which is payment of liquidated damages or a member payment of the New York Clearing House Association located in monthly Rent due for the City last month of New York selected the Term of this Lease. The Security Deposit and accrued interest, or so much of it as has not been applied by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then cure defaults, as described in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the termsSection 24.01, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten together with an itemized account of any deductions therefrom after the termination of this Lease and within forty-five (1045) days after the Expiration Date and after delivery of entire exclusive possession of the Demised Premises to Landlord. In the event Landlord applies of a sale or retains any portion or all lease of the security depositedBuilding, Landlord shall have the right to transfer the Security Deposit to the vendee or lessee and Landlord shall immediately be released by Tenant from all liability for the return of such Security Deposit; and Tenant agrees to look solely to the new owner or landlord for the return of said Security Deposit; and it is agreed that the provisions hereof shall apply to every transfer or assignment made of the Security Deposit to a new owner or landlord. Tenant shall not assign or encumber or attempt to assign or encumber the monies deposited herein as the Security Deposit and neither Landlord nor its successors or assigns shall be bound by any such assignment, encumbrance, attempted assignment or encumbrance. This Lease does not create a trust relationship between Landlord and Tenant with respect to such Security Deposit, and Landlord shall be entitled to treat such Security Deposit as Landlord's own property, subject only to Tenant's right to receive repayment of it as and to the extent provided in this Section. (b) If the Security Deposit is in the form of an unconditional, irrevocable letter of credit, such letter of credit shall be issued by a financial institution reasonably acceptable to 57 -52- Landlord and in the form of Exhibit G hereto. The letter of credit shall be renewed by Tenant at least thirty (30) days prior to expiration and shall remain in effect until forty-five (45) days after the scheduled end of the Term of the Lease, as such Term may be renewed or extended. (c) On the last day of the third Lease Year and/or on the last day of the fourth Lease Year, if Tenant meets the Creditworthiness Test set forth in Section 24.01(d) below, is not in default under the Lease beyond any applicable grace or cure period, and in particular if Tenant is current in its payment of all amounts of Fixed Rent and Additional Rent then due, $103,750 of the Security Deposit shall be refunded to Tenant on each such date, or if the Security Deposit is in the form of an unconditional, irrevocable letter of credit, Landlord shall consent to a $103,750 reduction in the amount of said letter of credit on each such date. (d) Tenant shall be entitled to reductions in the amount of the Security Deposit as described in subsection (c), above, if and only if, within thirty (30) days prior to the expiration of the third and/or fourth Lease Years Tenant has delivered to Landlord evidence reasonably acceptable to Landlord evidencing that the Tenant has satisfied the following creditworthiness test (the "CREDITWORTHINESS TEST"): (i) If Tenant has rated long-term debt, its current rating must be: AA or better (if rated by Mood▇'▇ ▇▇▇estors Service) and AA or better (if rated by Standard & Poor's); or (ii) If Tenant does not have rated long-term debt, Tenant must have: (1) current stockholder's equity of at least Seven Million Five Hundred Thousand ($7,500,000) Dollars, (2) current assets of at least Twenty Million ($20,000,000) Dollars, (3) EBIT of at least Seven Million Five Hundred Thousand ($7,500,000) Dollars for Tenant's most recently concluded fiscal year, (4) a current ratio of at least 1.5, and (5) a ratio of Gross Margin to Revenue of at least 60%. (e) If Tenant shall have exercised its Renewal Option (as such term is defined in Section 26.01 hereof), as a condition of the commencement of the Renewal Term, and provided that Tenant continues to meet the Creditworthiness Test, the Security Deposit, as it may have been reduced pursuant to this Section 24.01, shall continue to be held by Landlord pursuant to the terms of this Section 24.01 (a), and shall not be further reduced. If Tenant does not meet the Creditworthiness Test upon commencement of the Renewal Term, Tenant shall forthwith restore increase the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00Security Deposit as reasonably required by Landlord.

Appears in 1 contract

Sources: Lease (Onesource Information Services Inc)

Security Deposit. 6.01 Subject to Concurrently with the provisions execution and delivery of Section 6.02this Lease, Tenant shall have deposited with Landlord, on or before deposit the date Security Deposit specified in Section 1.2 hereof and that Landlord shall hold the sum same throughout the Term of $4,010,000.00. this Lease as security for the faithful performance and observance by Tenant of all obligations on the terms, provisions and conditions part of this lease; it is agreed that in Tenant hereunder. Landlord shall have the event Tenant defaults in respect of right from time to time without prejudice to any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, other remedy Landlord may usehave on account thereof, to apply or retain the whole such deposit, or any part of the security so deposited thereof, to Landlord's damages arising from, or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of cure, any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason Default of Tenant's default in respect of . If Landlord shall so apply any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security depositedsuch deposit, Tenant shall forthwith restore immediately deposit with Landlord the amount so applied to be held as security hereunder and any failure on the part of Tenant to so restore the Security Deposit within five (5) days of Landlord's demand therefore shall constitute a Default of Tenant under this Lease. There then existing no Default of Tenant, Landlord shall return the deposit, or retained so that much thereof as shall theretofore not been applied in accordance with the terms of this Section 14.17, to Tenant within thirty days of the expiration or earlier termination of the Term of this Lease and surrender of possession of the Premises by Tenant to Landlord at all times such time. While Landlord holds such deposit, Landlord shall have no obligation to pay interest on the amount deposited same and shall have the right to commingle the same with Landlord's other funds. If Landlord conveys Landlord's interest under this Lease, the deposit, or any part thereof not previously applied, may be $4,010,000.00turned over by Landlord to Landlord's grantee, and, if so turned over, Tenant agrees to look solely to such grantee for proper application of the deposit in accordance with the terms of this Section 14.17, and the return thereof in accordance therewith. The holder of a mortgage shall not be responsible to Tenant for the return or application of any such deposit, whether or not it succeeds to the position of Landlord hereunder, unless such deposit shall have been received in hand by such holder.

Appears in 1 contract

Sources: Lease (Viking Systems Inc)

Security Deposit. 6.01 Subject to On the provisions of Section 6.02Effective Date, Tenant shall have deposited deposit with Landlord, on or before Landlord the date hereof amount set forth in Section M of the sum of $4,010,000.00. Summary as security for the faithful performance and observance by Tenant of the terms, provisions and conditions of this lease; it is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease Lease, and not as prepayment of rent (the “Security Deposit”). Landlord may from time to time during an Event of Tenant’s Default apply such portion of the Security Deposit as is reasonably necessary for the following purposes: (i) to remedy any default by Tenant in the payment of rent; (ii) to repair damage to the Premises caused by Tenant other than ordinary and reasonable wear and tear; (iii) to clean the Premises to the extent required under the Lease upon termination of the Lease to the extent Tenant has not performed such obligation; and (iv) to remedy any other default of Tenant to the extent permitted by Law and, in this regard, Tenant hereby waives any restriction on the uses to which continues after notice and the expiration Security Deposit may be put contained in California Civil Code Section 1950.7, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage caused by the act or omission of Tenant or any applicable cure periodofficer, employee, agent or invitee of Tenant. In the event that the Security Deposit or any portion thereof is so used, Tenant agrees to pay to Landlord promptly upon demand an amount in cash sufficient to restore the Security Deposit to the full original amount. Landlord shall not be deemed a trustee of the Security Deposit, may use the Security Deposit in business, and shall not be required to segregate it from its general accounts. Tenant shall fully and faithfully comply not be entitled to any interest on the Security Deposit. If Landlord transfers the Premises during the Lease Term, Landlord shall pay the Security Deposit to any transferee of Landlord’s interest in conformity with the provisions of California Civil Code Section 1950.7 and/or any successor statute, in which event the transferring Landlord will be released from all liability for the return of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00Security Deposit.

Appears in 1 contract

Sources: Lease Agreement (Nassda Corp)

Security Deposit. 6.01 Subject A. If applicable, the Lessee is to deposit with Lessor the provisions Security Deposit in the amount set forth on Page One (1) of Section 6.02, Tenant shall have deposited with Landlord, on or before the date hereof the sum of $4,010,000.00. this Lease as security for the faithful performance of each and observance every covenant and agreement to be performed by Tenant Lessee under the Lease. Failure to make such deposit is a ground for termination of this Lease regardless of whether Lessee has taken possession of the terms, provisions and conditions of this lease; it is agreed that Leased Premises. The security deposit shall be held in the event Tenant defaults Lessor’s non-interest bearing account. Lessee is waiving having money held in respect of any of an escrow account as otherwise required by law. ▇. ▇▇▇▇▇▇ shall have the terms, provisions and conditions of this lease, includingright, but not limited tothe obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Lessee's arrearage in past due rent and/or for damage or any other failure of Lessee's performance of the covenants or agreements contained in this Lease, at Lessor’s option, in Lessor’s sole discretion. Lessor’s right to possession of the Leased Premises for Lessee’s non-payment of rent shall not be abated by reason Lessor is holding any security deposit from Lessee. The Lessee’s liability shall not be limited to the amount of the Security Deposit if such liability exceeds the amount of the Security Deposit. When the Lease expires or terminates for any reason, and additional rentafter full payment of all amounts due and owing are paid by the Lessee, which default continues after any notice required under including performance of all Lessee's covenants and agreements (including return of the Leased Premises to the Lessor as outlined in this lease and Lease), the expiration of any applicable cure period, Landlord may use, apply or retain the whole Security Deposit or any part of the security so deposited or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security portion thereof remaining unapplied shall be deposited in a separate interest bearing account segregated from Landlord's fundsreturned to Lessee, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected at Lessor’s sole discretion as provided by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully of any sale, lease, or other transfer of the Leased Premises, Lessor may transfer or assign said Security Deposit to Lessor's grantee, lessee, or assignee. Grantee, lessee or assignee, in writing, will undertake and faithfully comply with assume all of Lessor's obligations hereunder, and Lessee agrees to look to such grantee, lessee or assignee solely for the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession return of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00Security Deposit.

Appears in 1 contract

Sources: Residential Lease Agreement

Security Deposit. 6.01 Subject to the provisions of Section 6.02, Tenant shall have has deposited or concurrently herewith is depositing with Landlord, on or before the date hereof Landlord the sum set forth in Article 1.E. of $4,010,000.00. the Basic Lease Provisions as security for the full and faithful performance of every provision of this Lease to be performed by Tenant. If an Event of Default occurs and observance is continuing, Landlord may use all or any part of this security deposit for the payment of any rent or any other sums in default, or to compensate Landlord for any expense actually and reasonably incurred by Landlord as a result of Tenant's default or if Landlord has terminated the Lease, the damages to which Landlord is entitled pursuant to Article 20 of this Lease. If any portion of said deposit is so used or applied, Tenant shall, within five (5) business days after written demand therefor, deposit cash with Landlord in an amount sufficient to restore the security deposit to its full amount. Tenant agrees that Landlord shall not be required to keep the security deposit in trust, segregate it or keep it separate from Landlord's general funds but Landlord may commingle the security deposit with its general funds and Tenant shall not be entitled to interest on such deposit. At the expiration of the Term, and except to the extent Tenant owes Landlord money due to a default by Tenant hereunder, the security deposit or any balance thereof shall be returned to Tenant (or, at Landlord's option, to Tenant's "Transferee", as such term is defined in Article 15 below), provided that subsequent to the expiration of this Lease, Landlord may retain from said security deposit (i) an amount reasonably estimated by Landlord to cover potential Direct Cost reconciliation payments due with respect to the calendar year in which this Lease terminates or expires (such amount so retained shall not, in any event, exceed ten percent (10%) of Estimated Direct Cost payments due from Tenant for such calendar year through the date of expiration or earlier termination of this Lease and any amounts so retained and not applied to such reconciliation shall be returned to Tenant within thirty (30) days after Landlord's delivery of the termsStatement for such calendar year), (ii) any and all amounts reasonably estimated by Landlord to cover the anticipated costs to be incurred by Landlord to remove any signage provided to Tenant under this Lease, to remove cabling and other items required to be removed by Tenant under Section 29(b) below and to repair any damage caused by such removal (in which case any excess amount so retained by Landlord shall be returned to Tenant within thirty (30) days after such removal and repair), and (iii) any and all amounts permitted by law and this Article 4. Tenant hereby waives any provisions and conditions of this lease; law, now or hereafter in effect, 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 is being agreed that Landlord may, in the event Tenant defaults addition, claim those sums specified in respect this Article 4 above, and all of any of the terms, provisions Landlord's damages under this Lease and conditions of this lease, Washington law including, but not limited to, any damages accruing upon termination of this Lease and/or those sums reasonably necessary to compensate Landlord for any other actual damage, foreseeable or unforeseeable, caused by the payment acts or omissions of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole Tenant or any part of the security so deposited officer, employee, agent, contractor or the proceeds of the Letter of Credit (as set forth in Section 6.02 hereof) to the extent required for the payment of any rent and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may reasonably expend or may be required to expend by reason invitee of Tenant's default in respect of any of the terms, covenants and conditions of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure period. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this lease, the security shall be returned to Tenant no later than ten (10) days after the Expiration Date and after delivery of entire possession of the Demised Premises to Landlord. In the event Landlord applies or retains any portion or all of the security deposited, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited shall be $4,010,000.00.

Appears in 1 contract

Sources: Standard Multi Tenant Lease (SCOLR Pharma, Inc.)

Security Deposit. 6.01 Subject to The Landlord acknowledges receipt from the provisions of Section 6.02, Tenant shall have deposited with Landlord, on or before the date hereof the sum of $4,010,000.00. as security for the faithful performance and observance by Tenant of the terms, provisions and conditions of this lease; it is agreed that Security Deposit in the event Tenant defaults in respect of any of the terms, provisions and conditions of this lease, including, but not limited to, the payment of rent and additional rent, which default continues after any notice required under this lease and the expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the security so deposited or the proceeds of the Letter of Credit (as amount set forth in Section 6.02 hereof1.1 (h) and the Security Deposit shall be held by the Landlord without liability for interest and may be applied, in the Landlord’s discretion, to remedy any default by the extent required for Tenant hereunder, whether in respect to the payment of any rent and additional rent Rent or any other sum as payments due to which Tenant is in default or for any sum which the Landlord may reasonably expend or may be required to expend by reason of Tenant's default in respect of any of under the terms, covenants and conditions terms of this lease, including but not limited to, any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. The security shall be deposited in a separate interest bearing account segregated from Landlord's funds, in a commercial bank which is a member of the New York Clearing House Association located in the City of New York selected by Landlord and any interest earned thereon (less any administrative fee to which Landlord may be entitled pursuant to applicable law) shall be paid to Tenant annually provided Tenant is not then in default in the observance or performance of any of its obligations under this lease which continues after notice and the expiration of any applicable cure periodLease. In the event that Tenant shall fully and faithfully comply with all the entire Security Deposit or any portion thereof is applied by the Landlord towards the payment of overdue Rent prior to the expiration of the termsTerm, provisionsthen the Tenant shall, covenants and conditions on written demand of this leasethe Landlord, forthwith remit to the security shall be returned Landlord such sum as is sufficient to Tenant no later than ten restore such Security Deposit to its original amount. Within thirty (1030) days after the Expiration Date expiration of the Term and after subject to delivery of entire exclusive possession of the Demised Premises by the Tenant to the Landlord in the state of repair required by the Tenant pursuant to Section 10.1 hereof, the Landlord, without limiting any of its rights or remedies under this Lease or at law, shall return the Security Deposit, or so much thereof as has not been applied by the Landlord, as aforesaid, without interest to the Tenant, less all costs and expenses which the Landlord, at the Landlord’s option, may incur (i) in correcting or satisfying any default, or any Rent owing by the Tenant, under this Lease, (ii) in returning the Premises to Landlord. In the event Landlord applies or retains any portion or all state of repair required by the Tenant pursuant to Section 10.1 hereof, and (iii) in employing security personnel to be on site during the Tenant’s move from the Building at the expiration of the security deposited, Tenant Term. The Landlord may deliver the Security Deposit to any purchaser of the Landlord’s interest in the Building and the Landlord shall forthwith restore thereby be discharged of any further liability with respect to such Security Deposit. The Landlord may commingle the amount so applied or retained so that at all times Security Deposit with its own funds and shall not hold the amount deposited shall be $4,010,000.00Security Deposit as a trustee.

Appears in 1 contract

Sources: Lease Agreement (Dirtt Environmental Solutions LTD)