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.
B. Tenant shall be obligated to inform Landlord if, at any time, Tenant’s cash position falls below $10,000,000.00, and shall deliver to Landlord, within fifteen (15) business days after the end of each quarter of Tenant’s fiscal year, an unaudited financial statement certified as true by Tenant’s Chief Financial Officer. At such time that Tenant’s cash position falls below $10,000,000.00, Landlord shall have the right to withdraw the total amount of the Security and Restoration Deposit and hold the proceeds until such time that Tenant delivers to Landlord a letter of credit to secure the performance of Tenant’s obligations under this Lease throughout the Term, in accordance with and subject to the following terms and conditions:
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 a. As of the date of this First Amendment, Landlord is holding a letter of credit in the amount of Two Hundred Forty-seven Thousand and 00/100 Dollars ($247,000.00), and Tenant shall otherwise extend the expiration date of such letter of credit in accordance with the provisions of Section 11 of the Lease through October 31, 2019, following which such letter of credit shall expire and not be required to be renewed.
b. Contemporaneously with the execution of this First Amendment, Section 11 of the Lease shall be modified by inserting the following language as the second and third textual paragraphs of Section 11: “Exhibit D sets forth Landlord’s projected costs (which may change from time to time) related to the Ascend Termination Fee, the Tenant Allowance and brokerage commissions to be paid as set forth in the Lease. Upon execution of this First Amendment, Tenant shall deliver to Landlord a Letter of Credit in the form specified in the first paragraph of Section 11 of the Lease in an amount equal to Eight Hundred Sixty-two Thousand Five Hundred and 00/100 Dollars ($862,500.00). In addition, not less than fifteen (15) days prior to the date Landlord funds (a) the first tranche of the Tenant Allowance to Tenant or makes the first brokerage commission payment, and (b) any subsequent tranche of the Tenant Allowance to Tenant or makes any subsequent brokerage commission payment, Tenant shall obtain and deliver to Landlord a new or amended Letter of Credit in the form specified in the first paragraph of Section 11 of the Lease in an amount equal to 75% of the total Exhibit D amounts to be disbursed. Except for the Letter of Credit described in Section 11(a) of this First Amendment, all Letters of Credit provided by Tenant hereunder shall expire not less than sixty (60) days after the Lease Expiration Date. When Tenant’s financial statements (beginning with the 2020 calendar year) reflect positive adjusted non-GAAP operating income of more than $8,000,000 per year for any two (2) consecutive fiscal years, Tenant may reduce the Letter of Credit amount to $3,000,000. When Tenant’s financial statements (beginning with the 2020 calendar year) reflect positive adjusted non-GAAP operating income of more than $10,000,000 per year for at least two (2) consecutive fiscal years, Tenant may reduce the Letter of Credit amount to $2,000,000. When Tenant’s financial statements (beginning with the 2017 calendar year) reflect positive adjusted non-GAAP operating income of more t...
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. 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.”
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. Within ten (10) days of the Effective Date of this Amendment, Landlord shall deliver the existing letter of credit to Tenant together with any amendments thereto (the “Letter of Credit”) and Section 6 of the Lease shall terminate and be deemed null and void and of no further force and effect. From and after the Effective Date, Landlord shall have no right to draw on the letter of credit.
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).
(b) Concurrently with the execution of this Amendment, Tenant shall increase the amount of the Letter of Credit (defined in the Original Lease) by the sum of $595,019.27, so that the total amount of the Letter of Credit shall equal $1,388,979.27.
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.
(a) If Lessee elects to provide the Security Deposit in the form of a Security Letter of Credit, Lessee shall provide a draft of the same for approval by Lessor not less than ten (10) Business Days prior to the date that Lessee desires to deliver the Security Letter of Credit to Lessor in substitution for the Security Deposit paid in cash. The Security Letter of Credit shall remain in full force and effect during the Lease Term and for not less than ninety (90) days following the Scheduled Termination Date, shall permit partial and multiple draws without invalidating or terminating the remaining balance of the Security Letter of Credit, and shall be freely assignable and transferable by Lessor without restriction or condition. Following receipt by Lessor of the Security Letter of Credit, Lessor shall promptly, and in any event within five (5) Business Days, repay to Lessee the equivalent amount of the Security Deposit then held by Lessor in cash.
(b) Lessor may draw upon all or a portion of the amount of the Security Letter of Credit:
(i) upon the occurrence of an Event of Default; and/or
(ii) if Lessee has not delivered a replacement Security Letter of Credit to Lessor in accordance with the provisions of this Section 4.6 or deposited with Lessor cash in the amount of the Security Deposit by the required time set forth therein; and/or
(iii) not sooner than five (5) Business Days prior to the expiration date of the Security Letter of Credit if (x) such expiration date is prior to the date required under Section 4.6(a), and (y) Lessee has not delivered a replacement letter of credit in substitution for the expiring Security Letter of Credit by such date or deposited with Lessor by such date the Security Deposit in cash; and Lessor shall hold, apply, use, retain and return all or any portion of the funds paid pursuant to the Security Letter of Credit to the same extent as provided in Sections 4.3 and 4.5, as if Lessee had paid the Security Deposit in cash.
(c) If Lessor draws upon all or any portion of the Security Letter of Credit, such application shall not be deemed a cure of any Event of Default, and Lessee shall within three (3) Business Days after written demand by Lessor cause the Security Letter of Credit to be reinstated to its original amount, cause a replacement letter of credit to be i...
Security Deposit Letter of Credit a replacement for the Security Deposit Letter of Credit, which shall be either a newly issued or amended letter of credit, in favor of New Lessor, in form and substance satisfactory to New Lessor (referred to herein as the “Replacement Letter of Credit”);
