Terms of Letter of Credit. In lieu of the cash Security Deposit required by Paragraph 5 above, as additional consideration for value received and a further incentive to maintain Sublessor’s willingness to enter this Sublease, and as additional collateral so as to compensate Sublessor for future damages it may suffer by reason of Sublessee’s defaults hereunder, Sublessee shall deliver to Sublessor, not later than five (5) days after the date of Sublessee’s execution of this Sublease, an unconditional, clean, irrevocable letter of credit in the amount of $268,864.25 (“LC Amount”), which letter of credit shall be issued by a money-center bank (a bank which accepts deposits, maintains accounts, has a local Silicon Valley office which will negotiate a letter of credit and whose deposits are insured by the FDIC) reasonably acceptable to Sublessor, shall be for a term continuing through the last day of the forty-five (45) - day period following the Expiration Date (or shall contain an “evergreen” provision which provides that it automatically is renewed on an annual basis unless the issuer delivers forty-five (45) days’ prior written notice to Sublessor and Sublessee), shall permit partial draws, shall provide that draws thereunder will be honored upon receipt by issuer of the letter of credit and a written statement signed by Sublessor or its authorized agent stating that Sublessor is entitled to draw down on the letter of credit, shall be freely transferable and shall be in a form and content reasonably acceptable to Sublessor. Such letter of credit, together with any other renewal or replacement letters of credit delivered or to be delivered by Sublessee hereunder shall be referred to collectively herein as the “LC”. The LC shall provide for forty-five (45) days’ prior written notice to Sublessor of cancellation or material change thereof, and shall further provide that, in the event of any non-extension of the LC, Sublessor shall be entitled to present its written demand for payment of the entire face amount of the LC, and the proceeds therefrom so obtained shall be held as provided below. Sublessee shall pay all expenses, points and/or fees incurred by Sublessee in obtaining the LC. Additionally, upon a proposed sale or other transfer of any interest in the Premises, this Sublease or Sublessor (including consolidations, mergers or other entity changes), Sublessee, at its sole cost and expense and upon ten (10) business days’ notice, shall, concurrent with Sublessor’s delivery to Suble...
Terms of Letter of Credit. As security for the performance of its obligations hereunder, Tenant shall provide Landlord with the Letter of Credit at the Closing. Tenant shall maintain the Letter of Credit in favor of Landlord until Tenant's Obligations are performed in full. The Letter of Credit shall permit partial draws and shall permit drawing upon presentation of a draft drawn on the issuer and a certificate signed by Landlord stating that an Event of Default has occurred under this Lease. The Letter of Credit shall be for an initial term of one year and shall be automatically renewed annually for successive terms of at least one year unless Landlord receives notice from the Issuer, by certified mail, at least 60 days prior to the expiry date then in effect that the Letter of Credit will not be extended for an additional one-year period.
Terms of Letter of Credit. 71 20.2 Replacement Letter of Credit............................................................... 71 20.3 Draws...................................................................................... 72 20.4
Terms of Letter of Credit. Each Letter of Credit issued under this Agreement will, among other things, (i) be in such form requested by Borrower as is acceptable to Bank in its discretion exercised in good faith, (ii) be denominated in Dollars, and (iii) be issued to support Borrower’s obligations that finance its business needs incurred in the ordinary course of Borrower’s business as presently conducted by it. In no event will any Standby Letter of Credit have a term of more than one year (provided that this limitation shall not preclude Bank from issuing “evergreen” Standby Letters of Credit) or any Commercial Letter of Credit have a term of more than 180 days; furthermore, and, in addition to the foregoing term limitation, Bank will have no obligation to issue any Letter of Credit with an expiry date later than the earlier of (a) October 1, 2011 (or such later date to which Bank renews the termination date of this Agreement as provided in Section 11.2) or (b) such earlier termination date of this Agreement which has resulted from the delivery to Bank by Borrower of a Termination Notice as provided in Section 11.3.
Terms of Letter of Credit. The Letter of Credit shall: -------------------------
(i) be an irrevocable standby letter of credit from a bank with a long-term debt rating from each of Standard & Poor's and Xxxxx'x of investment grade naming Landlord (and/or any Facility Mortgagee if requested by Landlord) as beneficiary to secure Tenant's obligations hereunder and Tenant's or an Affiliate of Tenant's obligations under the Other Property Leases;
(ii) have a stated amount equal to the Letter of Credit Amount plus, if the Letter of Credit is intended to satisfy Tenant's obligations under the Other Property Leases with Landlord, the amounts required under such other leases;
(iii) have a term of not less than one year;
(iv) provide that it will be honored upon a signed statement by Landlord that Landlord is entitled to draw upon the letter of credit under this Lease, and shall require no signature or statement from any party other than Landlord;
(v) provide that Landlord had given not less than three Business Day's notice to Tenant prior to submitting the Letter of Credit to the bank for presentation; and
(vi) permit multiple draws by providing that following the honor of any drafts in an amount less than the aggregate stated amount of the Letter of Credit, the issuing bank shall return the original letter of credit to Landlord and that Landlord's rights as to the remaining stated amount of the Letter of Credit will not be extinguished.
Terms of Letter of Credit. The Borrower shall not request any Letter of Credit to be issued except within the following limitations: (A) each Letter of Credit shall have an expiration date no later than the earlier of (x) three hundred sixty-five (365) days after the date of issuance for any commercial documentary Letter of Credit and (y) the date which is twenty (20) Business Days prior to the Revolving Credit Termination Date, and (B) shall be denominated in Dollars. Each Letter of Credit shall be satisfactory in form, substance and beneficiary to the Issuing Bank in its discretion.
Terms of Letter of Credit. To fulfill a condition for the granting of this Lease, Tenant shall provide Landlord with the Letter of Credit at the Closing. Tenant shall maintain the Letter of Credit in favor of Landlord until the Secured Obligations are performed in full. The Letter of Credit shall permit partial draws and shall permit drawing upon presentation of a draft drawn on the issuer and a certificate signed by Landlord stating that an Event of Default has occurred under this Lease and the applicable notice and cure periods have elapsed. The Letter of Credit shall be for an initial term of one year and shall be automatically renewed annually for successive terms of at least one year unless Landlord receives notice from the Issuer, by certified mail, at least 60 days prior to the expiry date then in effect that the Letter of Credit will not be extended for an additional one-year period. Notwithstanding any other provision hereof to the contrary, Landlord has agreed to accept a Letter of Credit in the principal amount of $1,132,056.00 in fulfillment of Tenant's obligations hereunder with respect to the Lease Amount as constituted on the Effective Date. Any addition to the Lease Amount after the Effective Date will require an increase to the principal amount of the Letter of Credit in conformity with the provisions hereof.
Terms of Letter of Credit. TDF agrees, on the terms and subject to the conditions herein set forth, to issue the. Letter of Credit to the Trustee. The Letter of Credit shall be for a term of ten years, extendible at the option of TDF, and shall be substantially in the form of Exhibit 2.1 attached hereto.
Terms of Letter of Credit. Letters of Credit ------------------------- issued hereunder shall expire no later than the Working Capital Commitment Termination Date. Letters of Credit shall be issued in support of obligations of the Borrower, other than obligations relating to the borrowing of money or obtaining other financing, incurred in the ordinary course of business. No Letter of Credit may have a term longer than 12 months.
Terms of Letter of Credit. The Issuing Bank shall issue, subject to the terms and conditions hereof (including but not limited to the conditions contained in Section 8.1 hereof) and at the request of any Borrower, Letters of Credit for the account of such Borrower or a Restricted Subsidiary of such Borrower, all as more fully set forth in this Section 2.9.
(i) No Letter of Credit shall be issued hereunder which has an expiry date later than five (5) Business Days prior to the Termination Date; provided, however, that any Letter of Credit with a one (1) year maturity may provide for the renewal thereof for an additional one (1) year period, which shall in no event extend beyond five (5) Business Days prior to the Termination Date.
(ii) Each Letter of Credit, whether now outstanding or hereafter issued by the Issuing Bank upon written request received by the Issuing Bank not less than five (5) Business Days prior to the proposed date of issuance pursuant to this Section 2.9, has been or shall be issued in accordance with the Issuing Bank's then current practices relating to the issuance by the Issuing Bank of Letters of Credit, including but not limited to the execution and delivery by the Borrowers of an application for and/or confirmation of standby letter of credit and the payment by the Borrowers of the customary processing fees. Each issuance or renewal of a Letter of Credit hereunder shall be conditioned on (and be deemed to be a representation and warranty by the Borrowers as to) the following: that, at the time of such issuance or renewal, the representations and warranties contained in this Agreement are true and correct and no default set forth in Section 9 hereof shall have occurred and be continuing and no event which, with the giving of notice or lapse of time or both would become such a default, shall have occurred or shall have failed to occur and be continuing.
(iii) In no event shall the aggregate undrawn face amount of the Letters of Credit plus any unreimbursed Draws exceed, at any one time, Fourteen Million ($14,000,000) Dollars. The Stated Amount of each Letter of Credit, while the same is issued and outstanding, and any unreimbursed Draws under the Letters of Credit, shall reduce the maximum amount otherwise available for Loans under the Revolving Credit as set forth in Subsection 2.1(a) hereof. No Letters of Credit may be issued hereunder to the extent that such issuance would either (x) cause the Aggregate Outstandings to exceed the lesser of (a) the then curre...
