LANDLORD OR LANDLORD SHALL REFUND TO TENANT, AS APPLICABLE, THE DIFFERENCE
BETWEEN THE ESTIMATED DEPOSIT AMOUNT AND THE AMOUNT OF THE SECURITY DEPOSIT
ESTABLISHED PURSUANT TO SECTION 1.18.
IF AT ANY TIME DURING THE TERM, TENANT
SHALL BE IN DEFAULT BEYOND ANY APPLICABLE NOTICE AND CURE PERIOD IN THE PAYMENT
OF RENT OR FOR ANY OTHER REASON, LANDLORD MAY USE, APPLY OR RETAIN ALL OR PART
OF THE SECURITY DEPOSIT TO THE EXTENT NECESSARY FOR PAYMENT OF ANY AMOUNT DUE
LANDLORD OR TO CURE SUCH DEFAULT OR TO REIMBURSE OR COMPENSATE LANDLORD FOR ANY
LIABILITY, LOSS, COST, EXPENSE OR DAMAGE (INCLUDING ATTORNEYS' FEES) WHICH
LANDLORD MAY SUFFER OR INCUR BY REASON OF TENANT'S DEFAULTS.
IF LANDLORD USES
OR APPLIES ALL OR ANY PART OF THE SECURITY DEPOSIT, TENANT SHALL, WITHIN TEN
(10) DAYS OF DEMAND THEREFOR, PAY TO LANDLORD A SUM SUFFICIENT TO RESTORE THE
SECURITY DEPOSIT TO THE FULL AMOUNT REQUIRED BY THIS LEASE.
UPON EXPIRATION OF
THE TERM OR EARLIER TERMINATION OF THIS LEASE AND AFTER TENANT HAS VACATED THE
PREMISES, LANDLORD SHALL RETURN THE SECURITY DEPOSIT TO TENANT, REDUCED BY SUCH
AMOUNTS AS MAY BE REQUIRED BY LANDLORD TO REMEDY DEFAULTS ON THE PART OF TENANT
IN THE PAYMENT OF RENT, TO REPAIR DAMAGES TO THE PREMISES CAUSED BY TENANT AND
TO CLEAN THE PREMISES.
THE PORTION OF THE SECURITY DEPOSIT NOT SO REQUIRED
SHALL BE PAID OVER TO TENANT (OR, AT LANDLORD'S OPTION, TO THE LAST ASSIGNEE OF
TENANT'S INTEREST IN THIS LEASE) WITHIN THIRTY (30) DAYS AFTER EXPIRATION OF THE
TERM OR EARLIER TERMINATION HEREOF.
LANDLORD SHALL HOLD THE SECURITY DEPOSIT
FOR THE FOREGOING PURPOSES; PROVIDED, HOWEVER, THAT LANDLORD SHALL HAVE NO
OBLIGATION TO SEGREGATE THE SECURITY DEPOSIT FROM ITS GENERAL FUNDS OR TO PAY
INTEREST IN RESPECT THEREOF.
NO PART OF THE SECURITY DEPOSIT SHALL BE
CONSIDERED TO BE HELD IN TRUST, OR TO BE PREPAYMENT OF ANY MONIES TO BE PAID BY
TENANT UNDER THIS LEASE.
(B)
RECALCULATION OF SECURITY DEPOSIT.
IF TENANT ELECTS TO MODIFY THE
SIZE OF THE PREMISES PURSUANT TO THE PROVISIONS OF SECTION 2.2 ABOVE, THE
SECURITY DEPOSIT SPECIFIED IN THE BASIC LEASE INFORMATION PAGE SHALL BE
RECALCULATED TO BE AN AMOUNT EQUAL TO (A) THE NUMBER OF SQUARE FEET OF RENTABLE
AREA OF THE PREMISES (AS SO MODIFIED) MULTIPLIED BY (B) $12.00, AND WITHIN TEN
(10) DAYS OF SUCH RECALCULATION LANDLORD SHALL REFUND TO TENANT THE AMOUNT BY
WHICH THE SECURITY DEPOSIT THEN HELD BY LANDLORD EXCEEDS THE RECALCULATED
SECURITY DEPOSIT, OR TENANT SHALL DEPOSIT WITH LANDLORD ADDITIONAL MONIES IN THE
AMOUNT BY WHICH THE RECALCULATED SECURITY DEPOSIT EXCEEDS THE SECURITY DEPOSIT
THEN HELD BY LANDLORD, AS APPLICABLE.
(C)
REDUCTION IN SECURITY DEPOSIT.
NOTWITHSTANDING THE FOREGOING
PROVISIONS OF THIS SECTION 4.7, PROVIDED THAT NO EVENT OF DEFAULT (OR DEFAULT
THAT SUBSEQUENTLY MATURES INTO AN EVENT OF DEFAULT) BY TENANT UNDER THIS LEASE
HAS OCCURRED ON OR PRIOR TO THE SECOND (2ND) ANNIVERSARY OF THE COMMENCEMENT
DATE, THEN EFFECTIVE AS OF SUCH DATE THE SECURITY DEPOSIT AMOUNT REQUIRED
HEREUNDER