Common use of Security Deposit Letter of Credit Clause in Contracts

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. Sublessee A. Upon the execution hereof by Tenant, Tenant shall on or before the date that Sublessee commences access deliver to Landlord and, subject to the Sublet Premises pursuant to Section 2(c) provisions of this Sublease deposit with Sublessor Section, shall maintain in effect at all times during the Term hereof, an unconditional, irrevocable standby letter of credit in an amount (the "Security Amount") equal to Sixty Eight Thousand Eight Hundred Fifty Dollars ($68,850.00) as security for the faithful performance and observance by Tenant of the terms of this Lease. Said letter of credit shall be in form reasonably satisfactory to Landlord, shall name Landlord as the beneficiary thereunder, and shall be issued by a security deposit banking corporation reasonably satisfactory to Landlord having a counter upon which the letter of credit may be drawn and presented in the form City of a Letter New York or on Long Island. Such initial letter of Credit in substantially the form attached hereto as Exhibit C credit shall have an expiration date no earlier than August 15, 2008 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 automatically renewed thereafter for successive periods of at least one year until the date which is three thirty (330) business days after Sublessor’s delivery following the Expiration Date hereof (herein the "L/C Maintenance Date") unless terminated by the issuer thereof by notice to Landlord given not less than forty-five (45) days prior to the stated expiration thereof. In the event of Landlord’s consent pursuant the termination of any such letter of credit, Tenant shall throughout the term of this Lease deliver to Section 18 hereof; which Landlord replacement letters of credit in lieu thereof (each such letter of credit and such replacements thereof, as the case may be, is herein referred to as a "Security Letter") no later than thirty five (35) days prior to the expiration date of the preceding Security Letter so that at all times until the L/C Maintenance Date, Landlord shall be increased holding a Security Letter meeting the requirements hereof. If Tenant shall fail to $400,000 on January 15obtain any replacement of a Security Letter within the time limits set forth in this Section, 2008; and (ii) provided that Sublessee is not then in default of any Landlord may draw down the full amount of the material terms, provisions or conditions of this Sublease beyond any applicable cure period, existing Security Letter and retain 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 same 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 providedsecurity hereunder.

Security Deposit Letter of Credit. Sublessee 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 date that Sublessee commences access to the Sublet Premises pursuant to Section 2(c) respective dates aforesaid. Any letter of this Sublease deposit with Sublessor a security deposit credit shall be substantially in the form of a Letter of Credit in substantially the form attached annexed hereto as Exhibit C "E" and conforming 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 requirements stated expiration date of the Prime Leasethen 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), except that: Landlord may, immediately and without giving notice to Tenant, draw upon the “Initial L-C Amount” letter of credit for the entire amount of such letter of credit, and hold and dispose of such amount as security pursuant to the “L-C Amount” provisions of this Article. The letter of credit shall be deemed provide for payment against Landlord's draft, at sight, at one time or from time to be time up to an aggregate amount equal to the then face amount of the letter of credit accompanied by a statement signed by an officer of Landlord substantially 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 $400,000 on January 15, 2008; and (ii) provided that Sublessee is not then in default of any of the material terms, provisions or conditions "The amount of this Sublease beyond any applicable cure perioddrawing US$__________ under The Chase Manhattan Bank, the L-C Amount shall be reduced to $300,000 on October 1, 2010 ; New York [or name of other bank] letter of credit number _____ represents funds due us as balance properly 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 legally due by Petroleum Heat 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: “AvnetPower Co., 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. Sublessee 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 date that Sublessee commences access to the Sublet Premises pursuant to Section 2(c) respective dates aforesaid. Any letter of this Sublease deposit with Sublessor a security deposit credit shall be substantially in the form of a Letter of Credit in substantially the form attached annexed hereto as Exhibit C "E" and conforming 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 requirements stated expiration date of the Prime Leasethen 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), except that: Landlord may, immediately and without giving notice to Tenant, draw upon the “Initial L-C Amount” letter of credit for the entire amount of such letter of credit, and hold and dispose of such amount as security pursuant to the “L-C Amount” provisions of this Article. The letter of credit shall be deemed provide for payment against Landlord's draft, at sight, at one time or from time to be time up to an aggregate amount equal to the then face amount of the letter of credit accompanied by a statement signed by an officer of Landlord substantially 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 $400,000 on January 15, 2008; and (ii) provided that Sublessee is not then in default of any of the material terms, provisions or conditions "The amount of this Sublease beyond any applicable cure perioddrawing US$__________ under The Chase Manhattan Bank, the L-C Amount shall be reduced to $300,000 on October 1, 2010 ; New York [or name of other bank] letter of credit number _____ represents funds due us as balance properly 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 legally due by Petroleum Heat 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: “AvnetPower Co., 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."