Common use of Use of Security Deposit Clause in Contracts

Use of Security Deposit. The Security Deposit shall be held by Landlord as security for the faithful performance and observance by Tenant of the terms, provisions and conditions of this Lease. Landlord may use, apply or retain all or any portion of the Security Deposit for the payment of any past due rent or for the payment of any other sum to which Landlord may become entitled under this Lease or by law by reason of Tenant’s default or to compensate Landlord for any direct loss or damage which Landlord may suffer including, without limitation, the cost of replacing or repairing any equipment damaged or removed from the Premises and the cost of repairing any damage to the Premises or the Building. Tenant shall have no right to apply the Security Deposit or any portion thereof to any rent hereunder, but the Security Deposit may be so applied, at Landlord’s option, from time to time. If Landlord so uses or applies all or any portion of the Security Deposit, Tenant shall within ten (10) days after written demand therefor, deposit cash with Landlord in the amount sufficient to restore the Security Deposit to the full amount of the Security Deposit and Tenant’s failure to do so shall be a Default under this Lease. Landlord’s application of any portion of the Security Deposit shall not cure any Default hereunder and Landlord shall be free to exercise such other rights and remedies as provided hereunder, at law or in equity. Provided Tenant is not in default of its obligations under this Lease and there are no damages to the Premises or the remainder of the Property caused by Tenant or its employees, agents or contractors, the Security Deposit (or so much thereof as has not theretofore been applied by Landlord or returned to Tenant), shall be returned to Tenant within forty-five (45) days after the expiration of the Term and after Tenant has vacated the Premises. Upon written request made by Tenant to Landlord sent after the expiration of the first twelve (12) full calendar months for which Tenant is obligated to pay Basic Monthly Rent hereunder, the Tenant shall be entitled to the return of Ten Thousand Two Hundred Ninety-Four Dollars and 88/100 ($10,294.88) out of the Security Deposit; provided however, that if Tenant is or is then in monetary default (no notice required) or non-monetary Default (after notice and cure period), or during the Term has been in monetary Default (if applicable, after notice and cure period) for more than twenty (20) consecutive days, as of the date of Landlord’s receipt of the timely-given request notice, then Tenant shall not be so entitled to the return of such portion of the Security Deposit.

Use of Security Deposit. The Security Deposit Tenant shall be held by deposit with Landlord as on the date of this Lease, security for the faithful performance and observance by of all of its obligations in the amount set forth on the Schedule initially in the form of a Letter of Credit described in Section 20.B. If Tenant defaults under this Lease, Landlord may use all or any part of the termsSecurity Deposit to make any defaulted payment, provisions and conditions to pay for Landlord's cure of this Leaseany defaulted obligation, or to compensate Landlord for any loss or damage resulting from any default. Landlord may use, apply or retain all or To the extent any portion of the Security Deposit for the payment of any past due rent or for the payment of any other sum to which Landlord may become entitled under this Lease or by law by reason of Tenant’s default or to compensate Landlord for any direct loss or damage which Landlord may suffer including, without limitation, the cost of replacing or repairing any equipment damaged or removed from the Premises and the cost of repairing any damage to the Premises or the Building. Tenant shall have no right to apply the Security Deposit or any portion thereof to any rent hereunder, but the Security Deposit may be so applied, at Landlord’s option, from time to time. If Landlord so uses or applies all or any portion of the Security Depositis used, Tenant shall within ten five (105) days after written demand therefor, deposit cash with from Landlord in the amount sufficient to restore the Security Deposit to the its then-full amount of amount. Landlord may keep the Security Deposit in its general funds and Tenant’s failure shall not be required to do so pay interest to Tenant on the deposit amount, provided that Landlord shall be a Default under this Lease. Landlord’s application credit against the Base Rent each month an amount equal to the amount of any portion interest that would have been earned using five percent (5%) simple interest on only $200,000 of the cash Security Deposit shall not cure any Default hereunder and Landlord shall be free to exercise such other rights and remedies as provided hereunder, at law or in equityheld by Landlord. Provided If Tenant is not in default performs all of its obligations under this Lease and there are no damages to returns the Premises or to Landlord at the remainder end of the Property caused Term in the condition required by Tenant or its employeesthis Lease, agents or contractors, then Landlord shall return all of the remaining Security Deposit (or so much thereof as has not theretofore been applied by Landlord or returned to Tenant), shall be returned to Tenant within forty-five thirty (4530) days after the expiration end of the Term and after Tenant has vacated Term. The Security Deposit shall not serve as an advance payment of Rent or a measure of Landlord's damages for any default under this Lease. If Landlord transfers its interest in the PremisesBuilding or this Lease, Landlord may transfer the Security Deposit to its transferee. Upon written request made by Tenant such transfer, Landlord shall have no further obligation to Landlord sent after return the expiration of the first twelve (12) full calendar months for which Tenant is obligated Security Deposit to pay Basic Monthly Rent hereunderTenant, the Tenant shall be entitled and Tenant's right to the return of Ten Thousand Two Hundred Ninety-Four Dollars and 88/100 ($10,294.88) out of the Security Deposit; provided however, that if Tenant is or is then in monetary default (no notice required) or non-monetary Default (after notice and cure period), or during the Term has been in monetary Default (if applicable, after notice and cure period) for more than twenty (20) consecutive days, as of the date of Deposit shall apply solely against Landlord’s receipt of the timely-given request notice, then Tenant shall not be so entitled to the return of such portion of the Security Deposit's transferee.

Use of Security Deposit. The If Tenant defaults with respect to the payment of Rent or any other covenant contained herein or in the Work Letter, Landlord may use or retain all or any part of the Security Deposit shall be held by Landlord as security for the faithful performance payment of any Monthly Rent, Additional Rent or any other sum in default, or for the payment of any amount which Landlord may spend or become obligated to spend by reason of Tenant’s Default. Landlord also may apply the Security Deposit toward costs incurred to repair damages to the Premises, other than ordinary wear and observance by Tenant of tear, and damage from casualty or condemnation, or to reasonably clean the terms, provisions and conditions Premises upon termination of this Lease. If any portion of the Security Deposit is so applied or used, Tenant shall, within five (5) business days after written notice thereof, deposit an additional amount with Landlord sufficient to restore the Security Deposit to the amount set forth in Paragraph 1.11, and Tenant’s failure to do so shall constitute a material breach of this Lease. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by Tenant, the Security Deposit (including interest thereon), or the balance thereof, shall be returned to Tenant (or, at Landlord’s option to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of the Lease, subject to the provisions of Paragraph 27. Landlord and/or the Lender may use, apply or retain all or any portion part of the Security Deposit for the payment of any past due rent or for Tenant Improvement costs incurred by Landlord in excess of the payment of any other sum to which Landlord may become entitled under this Lease or by law by reason of Tenant’s default or to compensate Landlord for any direct loss or damage which Landlord may suffer including, without limitation, the cost of replacing or repairing any equipment damaged or removed from the Premises and the cost of repairing any damage to the Premises or the Building. Tenant shall have no right to apply the Security Deposit or any portion thereof to any rent hereunder, but the Security Deposit may be so applied, at Landlord’s option, from time to timeCombined Allowance. If Landlord so uses or applies all or any portion of the Security DepositDeposit is so applied, upon the Rent Commencement Date, Tenant shall within ten (10) days after written demand therefor, deposit cash or a replacement letter of credit with Landlord in the an amount sufficient to restore the Security Deposit to the full amount of the Security Deposit its original amount, and Tenant’s failure to do so shall be constitute a Default under material breach of this Lease. Landlord’s application In the event of any portion of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall not cure any Default hereunder and Landlord shall be free deemed to exercise such other rights and remedies as provided hereunder, at law or in equity. Provided Tenant is not in default of its obligations under this Lease and there are no damages be applied first to the Premises or the remainder payment of the Property caused by Tenant or its employees, agents or contractors, the Security Deposit (or so much thereof as has not theretofore been applied by Rent and other charges due Landlord or returned to Tenant), shall be returned to Tenant within forty-five (45) days after the expiration of the Term and after Tenant has vacated the Premises. Upon written request made by Tenant to Landlord sent after the expiration of the first twelve (12) full calendar months for which Tenant is obligated to pay Basic Monthly Rent hereunder, the Tenant shall be entitled all periods prior to the return of Ten Thousand Two Hundred Ninety-Four Dollars and 88/100 ($10,294.88) out of the Security Deposit; provided however, that if Tenant is or is then in monetary default (no notice required) or non-monetary Default (after notice and cure period), or during the Term has been in monetary Default (if applicable, after notice and cure period) for more than twenty (20) consecutive days, as of the date of Landlord’s receipt of the timely-given request notice, then Tenant shall not be so entitled to the return filing of such portion of the Security Depositproceedings.

Use of Security Deposit. The Security Deposit Tenant shall be held by Landlord as security for the faithful performance and observance by Tenant of the termsnot assign or encumber, provisions and conditions of this Lease. Landlord may useor attempt to assign or encumber, apply or retain all or any portion part of the Security Deposit for and neither Landlord nor its successors or assigns shall be bound by any such assignment, encumbrance, attempted assignment, or attempted encumbrance. Landlord shall not be required to exhaust its remedies against Tenant before having recourse to the payment Letter of Credit or any past due rent cash security held by Landlord. Recourse by Landlord to the Letter of Credit or for the payment other security shall not affect any remedies of any other sum to Landlord which Landlord may become entitled under are provided in this Lease or which are available to Landlord in law or equity. In the event of a default by law by reason Tenant hereunder (after any required notice and expiration of Tenant’s default or to compensate Landlord for any direct loss or damage which applicable cure period), Landlord may suffer including, without limitation, draw on the cost Letter of replacing or repairing any equipment damaged or removed from the Premises and the cost of repairing any damage to the Premises or the BuildingCredit in accordance with its terms. Tenant Landlord may (but shall have no right to apply not be required to) use the Security Deposit or any portion thereof to cure any rent defaults on the part of Tenant or to compensate Landlord for any damage or costs Landlord incurs by reason of a default hereunder. In such event, but and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit may be so utilized by Landlord and the purpose for which such amount was applied, at Landlord’s option, from time to time. If Landlord so uses or applies all or any portion of the Security Deposit, Tenant shall within ten (10) days after written demand therefor, immediately deposit cash with Landlord cash (or shall provide an amendment to the Letter of Credit) in the an amount sufficient to restore return the Security Deposit to the full amount required under Section 6.1. Within forty-five days after expiration of the Security Deposit and Tenant’s failure Term or earlier termination of this Lease (or such longer period of time as is needed to do so shall be a Default under this Lease. Landlord’s application confirm the existence of or cost to remedy any portion of default), provided no default is then outstanding, the Security Deposit shall not cure any Default hereunder and be returned to Tenant, reduced by those amounts that may be required by Landlord shall be free to exercise such other rights and remedies as provided hereunderremedy defaults on the part of Tenant in the payment of Rent or otherwise, at law or in equity. Provided Tenant is not in default of its obligations under this Lease and there are no to repair damages to the Premises or the remainder of the Property caused by Tenant or its employees, agents or contractors, and to restore the Premises to the condition required by this Lease. Landlord shall have no obligation to segregate the Security Deposit (from its general funds or so much thereof to pay interest thereon. If Landlord conveys or transfers its interest in the Premises, and as has not theretofore been applied by a part of such conveyance or transfer, assigns its interest in this Lease and the assignee assumes Landlord's obligations hereunder, then Landlord or returned to Tenant), shall be returned released and discharged from any further liability to Tenant within forty-five (45) days after the expiration of the Term and after Tenant has vacated the Premises. Upon written request made by Tenant with respect to Landlord sent after the expiration of the first twelve (12) full calendar months for which Tenant is obligated to pay Basic Monthly Rent hereunder, the Tenant shall be entitled to the return of Ten Thousand Two Hundred Ninety-Four Dollars and 88/100 ($10,294.88) out of the Security Deposit; provided however, that if Tenant is or is then in monetary default (no notice required) or non-monetary Default (after notice and cure period), or during the Term has been in monetary Default (if applicable, after notice and cure period) for more than twenty (20) consecutive days, as . Landlord shall provide a copy of the date of Landlord’s receipt of the timely-given request notice, then Tenant shall not be so entitled to the return of such portion of the Security Depositassignment and assumption agreement upon Tenant's request.

Use of Security Deposit. The Security Deposit Tenant shall be held by deposit with Landlord the sum of Twenty Thousand Dollars ($20,000) in cash on the date of this Lease as security for the faithful performance of all of Tenant’s obligations under the Lease. In addition, within five (5) days after Landlord so requests, which in no event shall be later than the date Tenant first occupies the Premise, Tenant will either (a) deliver to Landlord documents, bank statements, and observance reports (including in particular statements of account issued by banks and investment firms) that show to Landlord’s reasonable satisfaction that Tenant has an unrestricted cash balance of at least $1 million in good and immediately available funds (not including amounts that could be drawn on under lines of credit or other debt agreements), or (b) deliver to Landlord an additional Forty Thousand Dollars ($40,000) in the terms, provisions form of a Letter of Credit as described in Section 20.B below. The cash deposit and conditions the Letter of this LeaseCredit are together referred to herein as the “Security Deposit”. Landlord may usekeep the cash deposit in its general funds and will not be required to pay interest to Tenant on the cash deposit amount. If Tenant defaults under this Lease, apply or retain Landlord may use all or any part of the Security Deposit to make any defaulted payment, to pay for Landlord’s cure of any defaulted obligation. If any portion of the Security Deposit for the payment of any past due rent or for the payment of any other sum to which Landlord may become entitled under this Lease or by law by reason of Tenant’s default or to compensate Landlord for any direct loss or damage which Landlord may suffer includingis used, without limitation, the cost of replacing or repairing any equipment damaged or removed from the Premises and the cost of repairing any damage to the Premises or the Building. Tenant shall have no right to apply the Security Deposit or any portion thereof to any rent hereunder, but the Security Deposit may be so applied, at Landlord’s option, from time to time. If Landlord so uses or applies all or any portion of the Security Deposit, then Tenant shall within ten five (105) days after written demand therefor, deposit cash with from Landlord in the amount sufficient to restore the Security Deposit to the its then-full amount of the Security Deposit and Tenant’s failure to do so shall be a Default under this Leaseamount. Landlord’s application of any portion of the Security Deposit shall not cure any Default hereunder and Landlord shall be free to exercise such other rights and remedies as provided hereunder, at law or in equity. Provided If Tenant is not in default performs all of its obligations under this Lease and there are no damages to returns the Premises or to Landlord at the remainder end of the Property caused Term in the condition required by this Lease, then Landlord shall return the cash deposit to Tenant. Further, if either (i) Tenant performs all of its obligations under this Lease and returns the Premises to Landlord at the end of the Term in the condition required by this Lease, or (ii) on January 1, 2002 and no Event of Default has occurred, Landlord shall release the Letter of Credit and return the original of the Letter of Credit to Tenant within thirty (30) days after such date. The Security Deposit shall not serve as an advance payment of Rent or a measure of Landlord’s damages for any default under this Lease. If Landlord transfers its employeesinterest in the Building or this Lease, agents or contractors, Landlord may transfer its interest in the Security Deposit (or so much thereof as has not theretofore been applied to its transferee. At any time, upon request by Landlord or returned to Tenant), shall be returned to Tenant within forty-five (45) days after the expiration of the Term and after Tenant has vacated the Premises. Upon written request made by Tenant to Landlord sent after the expiration of the first twelve (12) full calendar months for which Tenant is obligated to pay Basic Monthly Rent hereunder, the its transferee Tenant shall cause a new Letter of Credit to be entitled to the return of Ten Thousand Two Hundred Ninety-Four Dollars and 88/100 ($10,294.88) out of the Security Deposit; provided however, that if Tenant is or is then issued in monetary default (no notice required) or non-monetary Default (after notice and cure period), or during the Term has been in monetary Default (if applicable, after notice and cure period) for more than twenty (20) consecutive days, as of the date favor of Landlord’s receipt of the timely-given request notice, then Tenant shall not be so entitled to the return of such portion of the Security Deposittransferee.

Use of Security Deposit. The Security Deposit shall be held by Landlord as security for the faithful performance and observance by Tenant of the terms, provisions and conditions of this Lease. Landlord may use, apply or retain all or any portion of the Security Deposit for the payment of any past due rent or for the payment of any other sum to which Landlord may become entitled under this Lease or by law by reason of Tenant’s 's default or to compensate Landlord for any direct loss or damage which Landlord may suffer including, without limitation, the cost of replacing or repairing any equipment damaged or removed from the Premises and the cost of repairing any damage to the Premises or the Building. Tenant shall have no right to apply the Security Deposit or any portion thereof to any rent hereunder, but the Security Deposit may be so applied, at Landlord’s 's option, from time to time. If Landlord so uses or applies all or any portion of the Security Deposit, Tenant shall within ten (10) days after written demand therefor, deposit cash with Landlord in the amount sufficient to restore the Security Deposit to the full amount of the Security Deposit and Tenant’s 's failure to do so shall be a Default under this Lease. Landlord’s 's application of any portion of the Security Deposit shall not cure any Default hereunder and Landlord shall be free to exercise such other rights and remedies as provided hereunder, at law or in equity. Provided Tenant is not in default of its obligations under this Lease and there are no damages to the Premises or the remainder of the Property caused by Tenant or its employees, agents or contractors, the Security Deposit (or so much thereof as has not theretofore been applied by Landlord or returned to Tenant), shall be returned to Tenant within forty-five thirty (4530) days after the expiration of the Term and after Tenant has vacated the Premises. Upon written request made by Tenant to Landlord sent after the expiration of the first twelve (12) full calendar months for which Tenant is obligated to pay Basic Monthly Rent hereunder, the Tenant shall be entitled to the return of Ten Thousand Two Hundred Ninety-Four Dollars and 88/100 ($10,294.88) out of the Security Deposit; provided however, that if Tenant is or is then in monetary default (no notice required) or non-monetary Default (after notice and cure period), or during the Term has been in monetary Default (if applicable, after notice and cure period) for more than twenty (20) consecutive days, as of the date of Landlord’s receipt of the timely-given request notice, then Tenant shall not be so entitled to the return of such portion of the Security Deposit.