Security Deposit Letter of Credit. (a) On or before the Consent Date, Sub-Subtenant shall deliver to Sub-Sublandlord a security deposit (the “Security Deposit”) in the amount of One Million, Five Hundred Thousand Dollars ($1,500,000) to assure the full and faithful performance by Sub-Subtenant of its obligations under this Sub-Sublease. The Security Deposit shall be in the form of an irrevocable stand-by letter of credit (the “Letter of Credit”) in the initial amount of One Million, Five Hundred Thousand Dollars ($1,500,000). If, at any time, all or any part of the Security Deposit is at any time in the form of cash (including any Deposited Funds as hereinafter defined and any amounts drawn under any Letter of Credit), Sub-Sublandlord agrees that such funds shall be the property of Sub-Subtenant, subject, however, to the right of the Sub-Sublandlord to hold, draw upon, use and/or apply such funds in accordance with this Sub-Sublease. If all or any portion of the Security Deposit is in the form of cash, Sub-Subtenant shall use its commercially reasonable efforts to cause a new or revised Letter or Letters of Credit to be issued within fifteen (15) days from any draw such that the full amount of the Security Deposit required hereunder is posted by Letter of Credit, but failure to cause such Letter(s) of Credit to be issued, after such efforts, shall not constitute a default under this Sub-Sublease. Any interest which shall accrue each year on the Security Deposit (if in the form of cash), shall not constitute a part of the Security Deposit, shall be the property of Sub-Subtenant and shall be paid to Sub-Subtenant annually on the last day of each year during the Sub-Sublease, and on termination of this Sub-Sublease, and until paid over to Sub-Subtenant, Sub-Sublandlord shall hold such interest in trust for the benefit of Sub-Subtenant. Except as provided below, the Security Deposit (whether temporarily in the form of cash or a Letter of Credit) shall be maintained in effect until the date (the “SD Expiration Date”) which is thirty (30) days after the expiration or termination this Sub-Sublease. The Security Deposit held by Sub-Sublandlord shall be returned to Sub-Subtenant on the date which is thirty (30) days after the expiration or termination of this Sub-Sublease, less any portion of the Security Deposit which Sub-Sublandlord has drawn upon and/or utilized in accordance with the provisions of Section 6. Notwithstanding anything to the contrary in this Section 6, Sub-Sublandlord shall accept...
Security Deposit Letter of Credit. A. Upon the execution of this Lease, Tenant shall deposit with Landlord the Security and Restoration Deposit. Said deposit shall be held by Landlord as security for the faithful performance by Tenant of all the terms of this Lease by said Tenant to be observed and performed. The Security and Restoration Deposit shall not be mortgaged, assigned, transferred or encumbered by Tenant without the written consent of Landlord and any such act on the part of Tenant shall be without force and effect and shall not be binding upon Landlord. If the Fixed Rent or Additional Rent or any other sum payable hereunder shall be overdue and unpaid or should Landlord make payments on behalf of the Tenant, or Tenant shall fail to perform any of the terms of this Lease, then Landlord may, at its option and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply said entire deposit or so much thereof as may be necessary to compensate Landlord toward the payment of Fixed Rent, Additional Rent or other sums or loss or damage sustained by Landlord due to such breach on the part of Tenant; and Tenant shall forthwith upon demand restore said security to the original sum deposited. Should Tenant comply with all of said terms and promptly pay all of the rentals as they fall due and all other sums payable by Tenant to Landlord, said deposit shall be returned in full to Tenant at the end of the term. In the event of bankruptcy or other creditor-debtor proceedings against Tenant, all securities shall be deemed to be applied first to the payment of rent and other charges due Landlord for all periods prior to the filing of such proceedings.
Security Deposit Letter of Credit. Simultaneously with the Tenant’s execution and delivery of that certain First Amendment to Lease and Extension Agreement dated as of October 1, 2004 by and between the Landlord and the Tenant, the Tenant shall deposit with the Landlord a Letter of Credit in the amount and form hereafter described (the “Letter of Credit”) to be held and, as applicable, presented and drawn upon and the proceeds thereof retained and applied by the Landlord as security for the faithful payment, performance and observance by the Tenant of the terms, covenants, provisions, conditions and agreements of the Tenant under and pursuant to this Lease. It is agreed and understood that in the event of the occurrence of a default of the Tenant under the Lease beyond all applicable notice, grace, or cure periods, the Landlord may present for payment and draw upon the Letter of Credit and the Landlord shall use, apply or retain the whole or any part of the amounts available to be drawn under the Letter of Credit to the extent required for the payment of any Yearly Rent, the Tenant’s Taxes, the Tenant’s Operating Expenses, additional rent or any other sum which the Landlord may expend or be entitled to the payment of by reason of any default of the Tenant or any failure of the Tenant to pay, perform or observe any term, covenant, condition or provision of this Lease, including without limitation, any late charges, interest payments or any damages or deficiency in the re-letting of the Premises whether said damages or deficiency occurred before or after summary proceedings or other re-entry by the Landlord. If the Landlord shall present, draw upon and apply or retain all or any portion of the amounts evidenced by the Letter of Credit, the Tenant shall immediately replenish and reinstate the amount available to be drawn under the Letter of Credit or cause a substitute Letter of Credit in the form and amount required by this Lease to be re-issued so that at all times during the Term of this Lease, the Landlord shall be entitled to draw upon the entire dollar amount of the Letter of Credit in the amounts required hereunder notwithstanding any prior presentation and draw thereon. In addition, in the event of a termination of this Lease by the Landlord as a result of any default of the Tenant or a rejection of this Lease pursuant to the provisions of the Federal Bankruptcy Code, the Landlord shall have the right to draw upon the Letter of Credit and/or any substitute Letter of Credit or additiona...
Security Deposit Letter of Credit. Landlord shall continue to hold the Security Deposit pursuant to the terms and conditions of Article 21 of the Original Lease and the L-C in accordance with the terms and provisions of Article 22 of the Original Lease throughout the New Expansion Term, as may be extended.
Security Deposit Letter of Credit. SECTION 19.01. As security for the faithful performance and observance by Tenant of the terms, provisions and conditions of this lease, Tenant, simultaneous with the execution and delivery of this lease, shall deposit with Landlord the sum of Three Hundred Ninety-Two Thousand Four Hundred Ninety and 50/100 ($392,490.50) Dollars in cash; not later than June 1, 2002, such additional sum sufficient to bring such security deposit to Four Hundred Thirty Five Thousand Six Hundred Sixty and no/100 ($435,660) Dollars; not later than June 1, 2007, such additional sum sufficient to bring such security deposit to Four Hundred Eighty Four Thousand Nine Hundred Eighty-Eight and 83/100 ($484,988.83) Dollars; and not later than June 1, 2012, such additional sum sufficient to bring such security deposit to Five Hundred Forty Nine Thousand Six Hundred Nine and 24/100 ($549,609.24) Dollars; or, at the option of Tenant which may be exercised at any time during the term of this lease, deliver to Landlord an unconditional, clean and irrevocable stand-by letter of credit in the aforesaid respective amounts on or before the respective dates aforesaid. Any letter of credit shall be substantially in the form annexed hereto as Exhibit "E" and shall be issued in favor of Landlord as beneficiary by a branch of a bank which is chartered in the State of New York or is a national bank, which branch issuing the letter of credit shall be in the City of New York, and which bank and branch thereof is reasonably acceptable to Landlord. The letter of credit shall be issued for a duration of at least one year. Tenant shall cause such letter of credit to be renewed or a replacement letter of credit issued during the term of this lease at least thirty (30) days prior to the stated expiration date of the then outstanding letter of credit and deliver the original thereof to Landlord. In the event that not less than thirty (30) days before the stated expiration date of the then outstanding letter of credit Tenant has not furnished Lessor with a renewal or replacement letter of credit complying with the provisions of this Article (or the cash equivalent), Landlord may, immediately and without giving notice to Tenant, draw upon the letter of credit for the entire amount of such letter of credit, and hold and dispose of such amount as security pursuant to the provisions of this Article. The letter of credit shall provide for payment against Landlord's draft, at sight, at one time or from time to time ...
Security Deposit Letter of Credit. At Tenant’s election, in lieu of delivering cash for the Security Deposit pursuant to Section 8 of the Lease, Tenant may elect to deliver simultaneously with the execution of the Lease, to Landlord (as Beneficiary) an irrevocable, unconditional and transferable letter of credit (the “Letter of Credit”). The Letter of Credit shall be issued by and drawn upon a commercial bank or trust company with which Tenant has a business relationship (hereinafter referred to as the “Issuing Bank”) and which Issuing Bank is reasonably acceptable to Landlord and which has a banking office in which the Letter of Credit may be drawn upon in Sacramento, California. The Letter of Credit shall have a term of not less than one year, be in form and content reasonably satisfactory to Landlord, be subject to the International Standby Practices 1998, International Chamber of Commerce Publication No. 590, be for the account of Landlord and be in the initial amount of $161,598.40 and shall reduce annually as hereafter provided. The Letter of Credit shall provide that:
Security Deposit Letter of Credit. Within five (5) business days of Tenant paying the Restoration Payment to Landlord and surrendering the Premises to Landlord in accordance with Section 3 hereof, Landlord shall (i) return the Letter of Credit held under the Lease to Tenant and (ii) deliver to Tenant a letter authorizing the termination of the Letter of Credit in the form of Exhibit A attached hereto, which letter shall be dated effective as of the Effective Date. Landlord shall also reasonably cooperate with Tenant and the issuing bank to execute any further documents required to formally terminate/release the Letter of Credit.
Security Deposit Letter of Credit. (a) The first paragraph of Section 3.4.3 of the Lease shall be deleted and the following shall be substituted:
Security Deposit Letter of Credit. As a condition precedent to Landlord’s obligations under this Lease, Lessee shall deliver to Lessor not later than the fifth business day following the Commencement Date, an irrevocable, unconditional and transferable Letter of Credit issued by and drawn upon a commercial bank with which Lessee has a business relationship, and if possible, having an office in California or which would otherwise allow Lessor to draw upon the Letter of Credit without having to travel outside of California (hereinafter referred to as the “Issuing Bank”) and which Issuing Bank is reasonably acceptable to the Lessor and which Letter of Credit shall have a term of not less than one year, be in form and content reasonably satisfactory to Lessor, be for the account of Lessor and be in the initial amount of $200,000 and shall reduce semi–annually as hereafter provided. The Letter of Credit shall provide that:
Security Deposit Letter of Credit a. Landlord acknowledges receipt from Tenant of the Security Deposit (Letter of Credit), to be held by Landlord, as security, without interest, for and during the initial four (4) years of the Lease Term. Tenant shall deposit with Landlord thirty nine thousand one hundred forty-three dollars ($39,143.00) the first day of the forty-ninth (49th) month. If all or any part of the Security Deposit is applied to an obligation of Tenant hereunder, Tenant shall immediately upon request by Landlord restore the Security Deposit to its original amount. Tenant shall not have the right to call upon Landlord to apply all or any part of the Security Deposit to cure any default or fulfill any obligation of the Tenant, but such use shall be solely in the discretion of Landlord. Upon any conveyance by Landlord of its interest under this Lease, the Security Deposit may be delivered by Landlord to Landlord's grantee or transferee provided Landlord is not in default at such time. Upon any such delivery, Tenant hereby releases Landlord herein named of any and all liability with respect to the Security Deposit, its application and return, and Tenant agrees to look solely to such grantee or transferee. It is further understood that this provision shall also apply to subsequent grantees and transferees.
