Common use of Draw Events Clause in Contracts

Draw Events. At any time after a Draw Event (as defined below) occurs, the Beneficiary may present its written demand for payment under the Letter of Credit. The Beneficiary may retain such funds to the extent required to compensate Landlord for damages incurred, or to reimburse Landlord as provided herein, in connection with any such default or other Draw Event. A “Draw Event” shall mean any of the following: (A) a Tenant Default occurs; (B) an event has occurred which, with the passage of time or giving of notice or both, would constitute a Tenant Default, where Landlord is prevented from, or delayed in, giving such notice because of an Insolvency Proceeding; (C) Tenant is the subject of an Insolvency Proceeding; (D) this Lease is terminated by Landlord due to a Tenant Default; (E) the Letter of Credit is not replaced with a Letter of Credit from a different financial institution if and when required by Section 32(b); and (F) the Letter of Credit is not extended by the date which is sixty (60) days prior to its expiration. With respect to the Draw Events specified in clauses (A) and (B) above, Beneficiary may draw upon the Letter of Credit in the amount required to compensate Landlord for damages incurred or to reimburse Landlord as provided herein, and Beneficiary may retain the funds so drawn, with subsequent demands at Beneficiary’s sole election as Landlord incurs further damages; and with respect to the Draw Events specified in clauses (C), (D), (E) and (F) above, Beneficiary may draw upon the Letter of Credit in the full amount thereof, with the proceeds of such draw to be held by Beneficiary and applied as provided for in this Section 32.

Draw Events. At Immediately upon, and at any time after a or from time to time after, the occurrence of any one or more Draw Event Events (as defined below) occurs), Landlord will have the Beneficiary may present its written demand for payment under unconditional right to draw on the Letter of Credit, in the full amount thereof or in any lesser amount or amounts as Landlord may determine, in its sole and absolute discretion, in accordance with this Section 30. The Beneficiary may retain such funds Upon the payment of Landlord of the Draw Proceeds (defined below), Landlord will hold the Draw Proceeds in its own name and for its own account, without liability for interest, and as security for the performance by Tenant of Tenant's covenants and obligations (theretofore or thereafter arising) under this Lease, and will be entitled to use and apply any and all of the Draw Proceeds from time to time solely to compensate Landlord hereunder. Among other things, it is expressly understood that the Draw Proceeds will not be considered an advance payment of Base Monthly Rent or Additional Rent or a measure or limitation of Landlord's damages resulting from any Tenant default under this Lease (past, present or future). Further, immediately upon the occurrence of any one or more Draw Events, Landlord may, from time to time and without prejudice to any other remedy, use the Draw Proceeds (whether from a contemporaneous or prior draw on the Letter of Credit) to the extent required necessary to make good any arrearages of Base Monthly Rent or Additional Rent, to pay to Landlord any and all amounts to which Landlord is entitled in connection with the pursuit of any one or more of its remedies under this Lease, and to compensate Landlord for any and all other damage, injury, expense or liability caused to Landlord by any and defaults by Tenant. Any delays in Landlord's draw on the Letter of Credit or in landlord's use of the Draw Proceeds will not constitute a waiver by Landlord of any of its rights hereunder with respect to the Letter of Credit or the Draw Proceeds. Following any such application of the Draw Proceeds, Tenant will either pay to Landlord on demand the cash amount so applied in order to restore the Draw Proceeds to the full amount thereof immediately prior to such application or cause the Letter of Credit to be replenished to its full amount thereunder. Landlord will not be liable for any indirect, consequential, special or punitive damages incurred, or to reimburse incurred by Tenant arising from a claim that Landlord as provided herein, violated the bankruptcy code's automatic stay in connection with any such default or other draw by Landlord of any Draw EventProceeds. A “Draw Event” shall mean any of the following: (A) a Tenant Default occurs; (B) an event has occurred which, with the passage of time or giving of notice or both, would constitute a Tenant Default, where Landlord is prevented from, or delayed in, giving such notice because of an Insolvency Proceeding; (C) Tenant is the subject of an Insolvency Proceeding; (D) Nothing in this Lease is terminated by Landlord due to a Tenant Default; (E) or in the Letter of Credit is not replaced with a Letter of Credit from a different financial institution if and when required by Section 32(b); and (F) the Letter of Credit is not extended by the date which is sixty (60) days prior to its expiration. With respect to the will confer upon Tenant any property rights or interests in any Draw Events specified in clauses (A) and (B) above, Beneficiary may draw upon the Letter of Credit in the amount required to compensate Landlord for damages incurred or to reimburse Landlord as provided herein, and Beneficiary may retain the funds so drawn, with subsequent demands at Beneficiary’s sole election as Landlord incurs further damages; and with respect to the Draw Events specified in clauses (C), (D), (E) and (F) above, Beneficiary may draw upon the Letter of Credit in the full amount thereof, with the proceeds of such draw to be held by Beneficiary and applied as provided for in this Section 32Proceeds.

Draw Events. At any time after a Draw Event (as defined below) occurs, the Beneficiary Sublandlord may present its written demand for payment under the Letter of Credit. The Beneficiary Sublandlord may retain such funds to the extent required to compensate Landlord Sublandlord for damages incurred, or to reimburse Landlord Sublandlord as provided herein, in connection with any such default or other Draw Event. A “Draw Event” shall mean any of the following: (A) a Tenant Default by Subtenant occurs; (B) an event has occurred which, with the passage of time or giving of notice or both, would constitute a Tenant DefaultDefault by Subtenant, where Landlord Sublandlord is prevented from, or delayed in, giving such notice because of an Insolvency Proceeding; (C) Tenant Subtenant is the subject of an Insolvency Proceeding; (D) this Lease is terminated by Landlord Sublandlord due to a Tenant DefaultDefault by Subtenant; (E) the Letter of Credit is not replaced with a Letter of Credit from a different financial institution if and when required by Section 32(b)) of the Master Lease as incorporated herein; and (F) the Letter of Credit is not extended by the date which is sixty (60) days prior to its expiration. With respect to the Draw Events specified in clauses (A) and (B) above, Beneficiary Sublandlord may draw upon the Letter of Credit in the amount required to compensate Landlord Sublandlord for damages incurred or to reimburse Landlord Sublandlord as provided herein, and Beneficiary Sublandlord may retain the funds so drawn, with subsequent demands at BeneficiarySublandlord’s sole election as Landlord Sublandlord incurs further damages; and with respect to the Draw Events specified in clauses (C), (D), (E) ), and (F) above, Beneficiary Sublandlord may draw upon the Letter of Credit in the full amount thereof, with the proceeds of such draw to be held by Beneficiary Sublandlord and applied as provided for in this Section 3232 of the Master Lease as incorporated herein.