agreements herein contained on the part of Tenant to
be kept, observed and performed, shall, during the Lease Term, peaceably and
quietly have, hold and enjoy the Premises subject to the TCCs, provisions and
agreements hereof without interference by any persons lawfully claiming by or
through Landlord.
The foregoing covenant is in lieu of any other covenant
express or implied.
47
ARTICLE 21
SECURITY DEPOSIT; LETTER OF CREDIT
21.1
SECURITY DEPOSIT.
THE AMOUNT OF THE SECURITY
DEPOSIT SHALL EQUAL THREE HUNDRED FIFTY-FIVE THOUSAND SEVEN HUNDRED TWENTY-SEVEN
AND 60/100 DOLLARS ($355,727.60), AS SET FORTH IN SECTION 8 OF THE SUMMARY.
LANDLORD AND TENANT ACKNOWLEDGE THAT, IN ACCORDANCE WITH THE ORIGINAL LEASE,
TENANT HAS PREVIOUSLY DELIVERED THE SUM OF ONE HUNDRED SIXTY-SIX THOUSAND
EIGHTEEN AND 27/100 DOLLARS ($166,018.27) TO LANDLORD AS SECURITY FOR THE
FAITHFUL PERFORMANCE BY TENANT OF THE TERMS, COVENANTS AND CONDITIONS OF THE
LEASE.
CONCURRENTLY WITH TENANT'S EXECUTION OF THIS LEASE, TENANT SHALL DEPOSIT
WITH LANDLORD AN ADDITIONAL AMOUNT EQUAL TO ONE HUNDRED EIGHTY-NINE THOUSAND
SEVEN HUNDRED NINE AND 33/100 DOLLARS ($189,709.33), AND THE RESULTING TOTAL
AMOUNT SHALL BE HELD BY LANDLORD AS SECURITY FOR THE FAITHFUL PERFORMANCE BY
TENANT OF ALL OF ITS OBLIGATIONS UNDER THIS LEASE.
IF TENANT DEFAULTS WITH
RESPECT TO ANY PROVISIONS OF THIS LEASE, INCLUDING, BUT NOT LIMITED TO, THE
PROVISIONS RELATING TO THE PAYMENT OF RENT, THE REMOVAL OF PROPERTY AND THE
REPAIR OF RESULTANT DAMAGE, LANDLORD MAY, WITHOUT NOTICE TO TENANT, BUT SHALL
NOT BE REQUIRED TO APPLY ALL OR ANY PART OF THE SECURITY DEPOSIT FOR THE PAYMENT
OF ANY RENT OR ANY OTHER SUM IN DEFAULT AND TENANT SHALL, UPON DEMAND THEREFOR,
RESTORE THE SECURITY DEPOSIT TO ITS ORIGINAL AMOUNT.
ANY UNAPPLIED PORTION OF
THE SECURITY DEPOSIT SHALL BE RETURNED TO TENANT, OR, AT LANDLORD'S OPTION, TO
THE LAST ASSIGNEE OF TENANT'S INTEREST HEREUNDER, WITHIN SIXTY (60) DAYS
FOLLOWING THE EXPIRATION OF THE LEASE TERM.
TENANT SHALL NOT BE ENTITLED TO ANY
INTEREST ON THE SECURITY DEPOSIT.
TENANT HEREBY WAIVES THE PROVISIONS OF
SECTION 1950.7 OF THE CALIFORNIA CIVIL CODE, OR ANY SUCCESSOR STATUTE.
21.2
LETTER OF CREDIT.
21.2.1
DELIVERY OF LETTER OF CREDIT.
AS ADDITIONAL SECURITY
FOR TENANT'S OBLIGATIONS UNDER THIS LEASE, TENANT SHALL DELIVER TO LANDLORD, AS
SET FORTH BELOW, AN UNCONDITIONAL, CLEAN, IRREVOCABLE LETTER OF CREDIT (THE
"L-C") IN AN AMOUNT AS SET FORTH IN SECTION 21.2.2, BELOW (THE "L-C AMOUNT"),
WHICH L-C SHALL BE ISSUED BY A MONEY-CENTER BANK (A BANK WHICH ACCEPTS DEPOSITS,
MAINTAINS ACCOUNTS, HAS A LOCAL SOUTHERN CALIFORNIA OFFICE WHICH WILL NEGOTIATE
A LETTER OF CREDIT, AND WHOSE DEPOSITS ARE INSURED BY THE FDIC) REASONABLY
ACCEPTABLE TO LANDLORD, AND WHICH L-C SHALL BE IN THE FORM OF EXHIBIT G,
ATTACHED HERETO.
TENANT SHALL PAY ALL EXPENSES, POINTS AND/OR FEES INCURRED BY
TENANT IN OBTAINING THE L-C.
LANDLORD AND TENANT ACKNOWLEDGE THAT, IN
ACCORDANCE WITH ARTICLE 21 OF THE ORIGINAL OFFICE LEASE, TENANT HAS PREVIOUSLY
DELIVERED AN L-C IN THE AMOUNT OF $1,549,613.56 (THE "EXISTING L-C") TO LANDLORD
AS SECURITY FOR THE FAITHFUL