Security Deposit
Upon the execution of this Agreement, the Service Receiver shall give to the Service Provider the Security Deposit to be held as security for the payment of the Service Fee as well as for the complete performance of the Service Receiver’s duties and obligations under this Agreement. The Service Provider, may, but not being obligated to, use the Security Deposit to repair any damage to the Building caused by the Service Receiver or its dependants, and to pay for any damages or any amount due but remaining unpaid by the Service Receiver to the Service Provider pursuant to this Agreement. The Security Deposit shall not be applied by the Service Receiver to the payment of the Service Fee. If the Security Deposit is reduced as a result of any deductions to pay for any debt or damage responsible by the Service Receiver, then the Service Receiver shall within 7 (seven) days from the date of the notice from the Service Provider remit an additional sum to cover the amount so deducted in order that the Security Deposit shall at all times be equal to the amount specified in Clause 1.
If the Service Receiver fully performs its duties and obligations hereunder, the balance of the Security Deposit, after the deduction of any cost incurred but remain unpaid including but not limit to the utilities bills, building and land taxes, and/or any other expense which shall be responsible by the Service Receiver, shall be returned to the Service Receiver without any interest within 60 days after the expiration of the Service Term or the expiration of the Renewed Service Term (if any) without renewal, or after the termination in the event of disaster or force majeure under Clause 17 and subject to the Lessee of the Building and Land Lease Agreement moved out, removed all its properties and dependants, and vacated the Building. Nevertheless, the Service Provider may not return the balance of the Security Deposit until the Service Receiver gives the Service Provider an evidence that the Service Receiver has already informed the revenue authorities, the Department of Business Development, and/or any other relevant authorities to confirm the Service Receiver’s cancellation of the use of the Building for the Service Receiver’s office. The Service Provider is entitled to exercise his rights in any arrangements under this Clause without prejudice to any right of the Service Provider to claim damages from the Service Receiver.
7. Delayed Payment
In the event that the Service Receiver fails to pay any of the Service Fee and/or the Utility Fee and/ or any amount which is payable to the Service Provider and/or the Industrial Developer and/or any company assigned or designated by the Service Provider pursuant to this Agreement within any prescribed time, the Service Receiver agrees to pay a penalty to the Service Provider and/or the Industrial Developer and/or any company assigned or designated by the Service Provider for the delayed payment at the rate of 1.5 % per month on the outstanding amount from the default date until the payment is made in full. Time is of the essence in this Agreement.
8. Compliance with Rule and Regulation of Industrial Land and Service Provider
The Service Receiver agrees to comply with and procure the compliance of the Service Receiver’s dependants with the Rule and Regulations of Industrial Land and the Service Provider (as defined in the Building and Land Lease Agreement) which shall be deemed as an integral part hereof.