Security Deposit Letter of Credit. By August 1, 2016, and as a condition to the effectiveness of this Lease, Tenant shall deliver to Landlord, as security for the performance of the obligations of Tenant hereunder, either funds in the amount of $1,500,000, or a Letter of Credit in the amount of $1,500,000, or a combination of both cash and a Letter of Credit provided Landlord holds $1,500,000 in security. At any time during this Lease, Tenant may replace the Letter of Credit or a portion thereof with cash. Tenant’s failure to timely deliver the Letter of Credit to Landlord shall constitute an Event of Default under this Lease. The Letter of Credit: (i) shall be irrevocable and shall be issued by a commercial bank reasonably acceptable to Landlord, it being acknowledged that Silicon Valley Bank, NA is hereby approved for such purposes; (ii) shall require only the presentation to the issuer of a certificate of the holder of the Letter of Credit stating the Landlord is authorized pursuant to this Lease to draw under the Letter of Credit; (iii) shall be payable to Landlord and its successors in interest as the Landlord and shall be freely transferable without cost to any such successor or any lender holding a collateral assignment of Landlord’s interest in the Lease; (iv) shall be for an initial term of not less than one (1) year and contain a provision that such term shall be automatically renewed for successive one (1) year periods unless the issuer shall, at least thirty (30) days prior to the scheduled expiration date, give Landlord notice of such non-renewal; (v) shall allow for notice of a pending draw by facsimile, provided that the original Letter of Credit is produced prior to any draw; and (vi) shall otherwise be in commercially reasonable form and substance acceptable to Landlord. Landlord shall be entitled to draw upon the Letter of Credit for the amount reasonably necessary to compensate Landlord for actual, direct damages incurred by Landlord as a result of Tenant’s default (i) if Tenant commits or allows to exist an Event of Default under the Lease after the expiration of all applicable notices or cure periods, or (ii) if, not less than thirty (30) days before the scheduled expiration of the Letter of Credit, Tenant has not delivered to Landlord a new Letter of Credit in accordance with this Section 27 of this Lease (which failure shall be deemed an Event of Default without notice or cure period). Landlord shall be obligated to apply the amount so drawn to the extent necessary to...
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. 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. Sublessee shall on or before the date that Sublessee commences access to the Sublet Premises pursuant to Section 2(c) of this Sublease deposit with Sublessor a security deposit in the form of a Letter of Credit in substantially the form attached hereto as Exhibit C and conforming to the requirements of the Prime Lease, except that: the “Initial L-C Amount” and the “L-C Amount” shall be deemed to be as follows: (i) $150,000 from the date which is three (3) business days after Sublessor’s delivery of Landlord’s consent pursuant to Section 18 hereof; which shall be increased to $400,000 on January 15, 2008; and (ii) provided that Sublessee is not then in default of any of the material terms, provisions or conditions of this Sublease beyond any applicable cure period, the L-C Amount shall be reduced to $300,000 on October 1, 2010 ; and (iii) provided that Sublessee is not then in default of any of the material terms, provisions or conditions of this Sublease beyond any applicable cure period, the L-C Amount shall be reduced to $200,000 on February 28, 2012; Sections 21.2.2, 21.2.3, 21.2.4 of the Prime Lease shall not be incorporated in this Sublease and references to such Sections of the Prime Lease shall not apply to this Sublease; Exhibit H of the Prime Lease shall be amended so that the addressee is: “Avnet, Inc., 2000 Xxxxx 00xx Xxxxxx, Xxxxxxx, XX 00000, Attn. Legal Department. The Letter of Credit shall secure Sublessee’s full and faithful performance and observance of the terms, covenants and conditions of this Sublease, including without limitation Sublessee’s obligation to restore the Sublet Premises to its condition prior to any alteration by Sublessee. The initial L-C delivered by Sublessee may provide for the automatic increase and decrease of the L-C Amount as provided above, or, following each date on which the L-C Amount shall increase or decrease, Sublessee may provide Sublessor an L-C that replaces the L-C previously provided Subelssor; and on Sublessor’s acceptance of such replacement L-C, Sublessor shall deliver back to Sublessee the L-C previously provided.
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. 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. 2.5.1 Concurrently with Txxxxx’s execution of this Lease, and in lieu of a cash security deposit, Tenant shall provide a letter of credit (the “Letter of Credit”) in the amount set forth as the “Security Deposit/Letter of Credit” in the Basic Lease Information. Any cash security deposit drawn from the Letter of Credit may be mingled with other funds of Landlord and no fiduciary relationship shall be created with respect to such deposit, nor shall Landlord be liable to pay Tenant interest thereon.
Security Deposit Letter of Credit. In lieu of paying or maintaining the Security Deposit in cash, Lessee may deliver to Lessor a Security Letter of Credit in the amount of the Cash Security Deposit.
Security Deposit Letter of Credit. (a) Concurrently with the execution of this Amendment, Tenant shall pay to Landlord a sum equal to $32,746.00 which amount shall be retained by Landlord as an additional security deposit to be held by Landlord in accordance with Article 4 of the Original Lease (thereby increasing the total security deposit to be held by Landlord to $85,529.50).
Security Deposit Letter of Credit. Contemporaneously with the execution of this First Amendment, Tenant shall deliver to Landlord an irrevocable letter of credit which shall be in the amount of Two Hundred Thousand Dollars ($200,000) and otherwise substantially in the form attached to the Lease as Exhibit 4, and meeting the other conditions for a Letter of Credit under Section 7 of the Lease (the “2014 Letter of Credit”). The 2014 Letter of Credit shall be treated and held by Landlord in accordance with the terms of the Lease applicable to the “Letter of Credit.”
