Common use of Election Not to Proceed Clause in Contracts

Election Not to Proceed. Upon execution of this Agreement, or prior, Producer agrees to deposit in the RTR Account the sum of $15,000.00 as a Holding Deposit for the dates outlined in paragraph 3 above. Should Producer elect at any time not to use the Premises (which Producer shall have the right to do), prior to Producer’s first use of the Premises, written notice thereof will be given by Producer to District. If such written notice is given at least fourteen (14) days prior to Producer’s first intended date for entering the Premises, District shall be entitled to receive as compensation a cancellation fee equaling 50% of said Holding Deposit. If such written notice is given less than fourteen (14) days prior to Producer’s first intended date for entering the Premises but more than three (3) days prior to Producer’s first intended date for entering the Premises, shall be entitled to receive as full compensation a cancellation fee equaling the total amount of said Holding Deposit. If such written notice is given three (3) days or less prior to Producer’s first intended date for entering the Premises, District shall be entitled to receive as full compensation a cancellation fee equaling the total amount of the Locations Fees. Producer shall have no obligation to use the Premises in the project. Should Producer use the Premises, said Holding Deposit shall become the Security Deposit as outlined in paragraph 4 above.