Common use of Use of Security Deposit Clause in Contracts

Use of Security Deposit. Tenant shall deposit with Landlord on the date of this Lease, security for the performance 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 Security Deposit to make any defaulted payment, to pay for Landlord's cure of any defaulted obligation, or to compensate Landlord for any loss or damage resulting from any default. To the extent any portion of the Security Deposit is used, Tenant shall within five (5) days after demand from Landlord restore the Security Deposit to its then-full amount. Landlord may keep the Security Deposit in its general funds and shall not be required to pay interest to Tenant on the deposit amount, provided that Landlord shall credit against the Base Rent each month an amount equal to the amount of interest that would have been earned using five percent (5%) simple interest on only $200,000 of the cash Security Deposit held by Landlord. If 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, then Landlord shall return all of the remaining Security Deposit to Tenant within thirty (30) days after the end of the 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 Building or this Lease, Landlord may transfer the Security Deposit to its transferee. Upon such transfer, Landlord shall have no further obligation to return the Security Deposit to Tenant, and Tenant's right to the return of the Security Deposit shall apply solely against Landlord's transferee.

Use of Security Deposit. Tenant shall deposit with Landlord the sum of Twenty Thousand Dollars ($20,000) in cash on the date of this Lease, Lease as security for the performance of all of its 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 amount set forth date Tenant first occupies the Premise, Tenant will either (a) deliver to Landlord documents, bank statements, and 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 the Schedule initially under lines of credit or other debt agreements), or (b) deliver to Landlord an additional Forty Thousand Dollars ($40,000) in the form of a Letter of Credit as described in Section 20.B. 20.B below. The cash deposit and the Letter of Credit are together referred to herein as the “Security Deposit”. Landlord may keep 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, Landlord may use all or any part of the Security Deposit to make any defaulted payment, to pay for Landlord's ’s cure of any defaulted obligation, or to compensate Landlord for any loss or damage resulting from any default. To the extent If any portion of the Security Deposit is used, then Tenant shall within five (5) days after demand from Landlord restore the Security Deposit to its then-full amount. Landlord may keep the Security Deposit in its general funds and shall not be required to pay interest to Tenant on the deposit amount, provided that Landlord shall credit against the Base Rent each month an amount equal to the amount of interest that would have been earned using five percent (5%) simple interest on only $200,000 of the cash Security Deposit held by Landlord. If 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, 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 remaining Security Deposit 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 the end of the Termsuch date. The Security Deposit shall not serve as an advance payment of Rent or a measure of Landlord's ’s damages for any default under this Lease. If Landlord transfers its interest in the Building or this Lease, Landlord may transfer its interest in the Security Deposit to its transferee. Upon such transferAt any time, upon request by Landlord or its transferee Tenant shall have no further obligation cause a new Letter of Credit to return the Security Deposit to Tenant, and Tenant's right to the return be issued in favor of the Security Deposit shall apply solely against Landlord's ’s transferee.

Use of Security Deposit. Tenant shall deposit with Landlord on the date of this Lease, security for the performance 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 or retain all or any part of the Security Deposit to make any defaulted payment, to pay for Landlord's cure the payment of any defaulted obligationMonthly Rent or any other sum in default, or for the payment of any amount which Landlord may spend or become obligated to compensate spend by reason of Tenant's default Landlord for any loss may also apply the Security Deposit toward costs incurred to repair damages to the Premises or damage resulting from any defaultto clean the Premises upon termination of this Lease. To the extent If any portion of the Security Deposit is so applied or used, Tenant shall shall, within five (5) business days after demand from written notice thereof, deposit an additional amount with Landlord sufficient to restore the Security Deposit to its then-full amountthe amount set forth above, and Tenant's failure to do so shall constitute a default of this Lease. Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code and all other provisions of law, now or hereafter in effect, which provide that Landlord may keep claim from a security deposit only those sums reasonably necessary to remedy defaults in the Security Deposit in its general funds and shall not be required payment of rent, to pay interest repair damage caused by Tenant or to Tenant on clean the deposit amountPremises, provided it being agreed that Landlord shall credit against may, in addition, claim those sums specified herein and/or those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the Base Rent each month an amount equal to the amount acts or omissions of interest that would have been earned using five percent (5%) simple interest on only $200,000 Tenant or any officer, employee, agent, contractor or invitee of the cash Security Deposit held by LandlordTenant. If 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, then Landlord shall return all any unused portion of the remaining Security Deposit to Tenant within thirty (30) days after the end of the 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 Building or this Lease, Landlord may transfer the Security Deposit to its transferee. Upon such transfer, Landlord shall have no further obligation to return the Security Deposit to Tenant, and Tenant's right to the return or so much of the Security Deposit shall apply solely against Landlord's transfereeas is remaining, no later than sixty (60) days following the expiration or earlier termination of the Lease.