Common use of Hard Deposit Clause in Contracts

Hard Deposit. Notwithstanding any provision herein to the contrary, Buyer hereby acknowledges and agrees that the Initial Deposit (the “Hard Deposit”) shall be a “hard” deposit that is non-refundable to Buyer except as expressly set forth in this Section 3(e). The Hard Deposit shall be paid to Seller upon any termination of this Agreement by either party; provided, however, that Buyer shall be entitled to a return of the Hard Deposit in the case of a termination by Buyer: (I) under Section 3(b)(ii) (Seller Default), (II) prior to expiration of the Inspection Period under Section 6(b) (Title and Survey), or (III) prior to expiration of the Inspection Period if Buyer provides evidence verified by Seller that a material and adverse environmental condition exists with respect to the Property that would reasonably affect Buyer’s ability to finance, sell or operate the Property. This provision shall survive termination of this Agreement.