Increase in the Security Sample Clauses
The "Increase in the Security" clause allows a party, typically the lender or landlord, to require the other party to provide additional security—such as a higher deposit or further collateral—under certain circumstances. This may be triggered by events like a deterioration in the borrower's financial position, a default, or a change in the value of the secured asset. The core function of this clause is to protect the party receiving the security by ensuring that the level of security remains adequate to cover potential risks or losses throughout the term of the agreement.
Increase in the Security. Notwithstanding any provision of the Existing Lease to the contrary:
(a) Tenant and Landlord acknowledge that pursuant to Section 5.02 of the Existing Lease, Tenant elected to deliver the Letter of Credit in lieu of cash Security Deposit, and immediately prior to execution of this Amendment, the amount of the Letter of Credit required under the Existing Lease and held by Landlord is Four Hundred Fifty-three Thousand Six Hundred Twenty-four Dollars ($453,624);
(b) The amount of Security Deposit and Letter of Credit required as of the Execution Date of this Amendment is hereby increased by One Hundred Fifty-three Thousand Three Hundred Eighty Dollars ($153,380) and simultaneously with delivering to Landlord this Amendment signed by Tenant, Tenant shall deliver to Landlord an amendment or replacement of the Letter of Credit which increases the amount of the Letter of Credit to Six Hundred Seven Thousand and Four Dollars ($607,004);
(c) The text of Section 5.02(c) of the Existing Lease (as amended by Section 4(c) of the Second Amendment) is deleted and the following is inserted in its place: “Notwithstanding anything to the contrary contained herein, after the Execution Date of the Third Amendment to Lease, the following reduction provisions shall apply. If Tenant is not in Default under the Lease on February 1, 2008, an amendment or replacement of the Letter of Credit may be issued which decreases by Forty-five Thousand Dollars ($45,000) the amount of the Letter of Credit to the revised total amount of Five Hundred Sixty-two Thousand and Four Dollars ($562,004). If Tenant is not in Default under the Lease on February 1, 2009, an amendment or replacement of the Letter of Credit may be issued which decreases by Forty-five Thousand Dollars ($45,000) the amount of the Letter of Credit to the revised total amount of Five Hundred Seventeen Thousand and Four Dollars ($517,004). If Tenant is not in Default under the Lease on February 1, 2010, an amendment or replacement of the Letter of Credit may be issued which decreases by Forty-five Thousand Dollars ($45,000) the amount of the Letter of Credit to the revised total amount of Four Hundred Seventy-two Thousand and Four Dollars ($472,004).”
(d) The second sentence of Section 5.02(a) (as amended by Section 4(d) of the Second Amendment) is deleted and the following is inserted in its place: “The Letter of Credit shall be maintained in effect until the “LOC Expiration Date”, which shall mean the date which is ninety (90...
Increase in the Security. Notwithstanding any provision of the Existing Lease to the contrary, Tenant shall pay Landlord an amount sufficient to increase the Security, or provide Landlord with an updated Letter of Credit in Section 1.01(14) of the Existing Lease from the amount of $695,215.00 to the amount of $2,759,511.45, in accordance with the following schedule:
(a) Concurrent with the execution of this Amendment, Tenant shall increase the Security by the amount of $414,996.85, such that the total Security held by Landlord following such increase shall be $1,110,211.85;
(b) Prior to Tenant taking possession of the Expansion Space A, Tenant shall increase the Security by an additional amount of $619,400.05, such that the total Security held by Landlord following such increase shall be $1,729,611.90;
(c) Prior to Tenant taking possession of the Expansion Space B, Tenant shall increase the Security by an additional amount of $660,417.90, such that the total Security held by Landlord following such increase shall be $2,390,029.80;
(d) Prior to Tenant taking possession of the Expansion Space C, Tenant shall increase the Security by an additional amount of $191,048.60, such that the total Security held by Landlord following such increase shall be $2,581,078.40; and
(e) Prior to Tenant taking possession of the Expansion Space D, Tenant shall increase the Security by an additional amount of $178,433.05, such that the total Security held by Landlord following such increase shall be $2,759,511.45.
Increase in the Security. Notwithstanding any provision of the Existing Lease to the contrary, upon execution of this Amendment Tenant shall pay Landlord Fifty Thousand and 00/100 Dollars ($50,000.00) to be held by Landlord to increase the amount of the cash portion of the Security required in Section 1.01(14), Article Five and Section 2.3 of Rider 2 of the Existing Lease from the amount of Thirty Thousand and 00/100 Dollars ($30,000.00) to the amount of Eighty Thousand and 00/100 Dollars ($80,000.00), which greater amount is the cash portion of the Security hereafter required under the Lease. The parties’ rights and obligations with respect to the One Hundred Fifty and 00/100 Thousand Dollar ($150,000.00) Letter of Credit portion of the Security set forth in Section 1.01(14), Article Five and Section 2.3 of Rider 2 of the Existing Lease shall remain in full force and effect.
Increase in the Security. Notwithstanding any provision of the Existing Lease to the contrary, upon execution of this Amendment, Tenant shall either (a) pay Landlord One Hundred Fifty Seven Thousand Three Hundred Twenty-Three and 40/100 Dollars ($157,323.40) (the “Increased Amount”) in cash, to be held by Landlord to increase the amount of the cash portion of the Security from the amount of Fifty Thousand and 00/100 Dollars ($50,000.00) to the amount of Two Hundred Seven Thousand Three Hundred Twenty Three and 40/100 Dollars ($207,323.40) (which greater amount shall be the cash portion of the Security hereafter required under the Lease if Tenant selects this option (a)), or (b) deliver to Landlord an irrevocable unconditional letter of credit (the “Updated Letter of Credit”), in form and content consistent with the Existing Lease, issued by a bank that meets the issuing requirements of the Existing Lease, and otherwise acceptable to Landlord in its sole discretion, in the amount of Three Hundred Seven Thousand Three Hundred Twenty-Three and 40/100 Dollars ($307,323.40), which shall name Landlord as beneficiary and replace the existing Letter of Credit in the amount of One Hundred Fifty Thousand and 00/100 Dollars ($150,000.00), which shall be returned to Tenant within three (3) business days of Tenant’s delivery of the Updated Letter of Credit to Landlord.