Common use of Security for Performance Incentive Payments Clause in Contracts

Security for Performance Incentive Payments. (a) In the event Customer does not order the Ground Spare Satellite, Contractor and Customer agree that, as assurance of the payment of Incentive Amounts as such amounts may be earned by Contractor and become payable by Customer, Customer must demonstrate to Contractor, no later than four (4) months prior to the Launch of the first Satellite, that Customer has a minimum of [***] in liquid assets (e.g., cash, cash equivalents and current receivables), or, at Contractor's option, non-current assets (e.g., property, plant, equipment) with a market value of at least [***] and a reasonable expectation that such market value can be realized within one hundred eighty (180) Calendar Days of a decision to liquidate. In the case of non-current assets, Customer shall also grant to Contractor a perfected security interest in such non-current assets, up to a maximum interest in the amount of [***], and shall cause all appropriate documents and financial statements to be filed in order to give effect to such security interest. Contractor's perfected security interest in such non-current assets, if granted, shall be released by Contractor if Customer performs its obligations with respect to payment of all earned Incentive Amounts, including interest thereon, in accordance with the terms of this Contract, for a period of twenty-four (24) months commencing upon the date that the first Quarterly Incentive Payment Amount is due with respect to the first Launched Satellite. In the event the first Satellite is a Constructive Total Loss or Total Loss, the requirements of this paragraph (a) shall apply to the second Satellite.

Security for Performance Incentive Payments. (a) In the event Customer does not order the Ground Spare Satellite, Contractor and Customer agree that, as assurance of the payment of Incentive Amounts as such amounts may be earned by Contractor and become payable by Customer, Customer must demonstrate to Contractor, no later than four (4) months prior to the Launch of the first Satellite, that Customer has a minimum of [*****] in liquid assets (e.g., cash, cash equivalents and current receivables), or, at Contractor's option, non-current assets (e.g., property, plant, equipment) with a market value of at least [*****] and a reasonable expectation that such market value can be realized within one hundred eighty (180) Calendar Days of a decision to liquidate. In the case of non-current assets, Customer shall also grant to Contractor a perfected security interest in such non-current assets, up to a maximum interest in the amount of [*****], and shall cause all appropriate documents and financial statements to be filed in order to give effect to such security interest. Contractor's perfected security interest in such non-current assets, if granted, shall be released by Contractor if Customer performs its obligations with respect to payment of all earned Incentive Amounts, including interest thereon, in accordance with the terms of this Contract, for a period of twenty-four (24) months commencing upon the date that the first Quarterly Incentive Payment Amount is due with respect to the first Launched Satellite. In the event the first Satellite is a Constructive Total Loss or Total Loss, the requirements of this paragraph (a) shall apply to the second Satellite.

Security for Performance Incentive Payments. (a) In the event Customer does not order the Ground Spare Satellite, Contractor and Customer agree that, as assurance of the payment of Incentive Amounts as such amounts may be earned by Contractor and become payable by Customer, Customer must demonstrate to Contractor, no later than four (4) months prior to the Launch of the first Satellite, that Customer has a minimum of [***] in liquid assets (e.g., cash, cash equivalents and current receivables), or, at Contractor's ’s option, non-current assets (e.g., property, plant, equipment) with a market value of at least [***] and a reasonable expectation that such market value can be realized within one hundred eighty (180) Calendar Days of a decision to liquidate. In the case of non-current assets, Customer shall also grant to Contractor a perfected security interest in such non-current assets, up to a maximum interest in the amount of [***], and shall cause all appropriate documents and financial statements to be filed in order to give effect to such security interest. Contractor's ’s perfected security interest in such non-current assets, if granted, shall be released by Contractor if Customer performs its obligations with respect to payment of all earned Incentive Amounts, including interest thereon, in accordance with the terms of this Contract, for a period of twenty-four (24) months commencing upon the date that the first Quarterly Incentive Payment Amount is due with respect to the first Launched Satellite. In the event the first Satellite is a Constructive Total Loss or Total Loss, the requirements of this paragraph (a) shall apply to the second Satellite.

Security for Performance Incentive Payments. (a) In the event Customer does not order the Ground Spare Satellite, Contractor and Customer agree that, as assurance of the payment of Incentive Amounts as such amounts may be earned by Contractor and become payable by Customer, Customer must demonstrate to Contractor, no later than four (4) months prior to the Launch of the first Satellite, that Customer has a minimum mi nimum of [*****] in liquid assets (e.g., cash, cash equivalents and current receivables), or, at Contractor's option, non-current assets (e.g., property, plant, equipment) with a market value of at least [*****] and a reasonable expectation that such market value can be realized within one hundred eighty (180) Calendar Days of a decision to liquidate. In the case of non-current assets, Customer shall also grant to Contractor a perfected security interest in such non-current assets, up to a maximum interest in the amount of [*****], and shall cause all appropriate documents and financial statements to be filed in order to give effect to such security interest. Contractor's perfected security interest in such non-current assets, if granted, shall be released by Contractor if Customer performs its obligations with respect to payment of all earned Incentive Amounts, including interest thereon, in accordance with the terms of this Contract, for a period of twenty-four (24) months commencing upon the date that the first Quarterly Incentive Payment Amount is due with respect to the first Launched Satellite. In the event the first Satellite is a Constructive Total Loss or Total Loss, the requirements of this paragraph (a) shall apply to the second Satellite.