Common use of Collaterals Clause in Contracts

Collaterals. As collaterals to the fulfillment of all the lessee’s obligations according to this contract, the Lessee would provide the Lessor, no later than 7 days after the signing of this Contract, with all the collaterals as detailed hereinafter: 20.1 An unconditional, endorsable Bank guaranty, prepared for the Lessor benefit, realizable in proportional payments, stamped according to law, on the Lessee’s account, to be valid for the whole duration of the lease, and 90 days after the end of that lease, at the sum of 9 (nine) months of the monthly lease payments, along with 9 (nine) months of Maintenance Fee payments, plus VAT for all those payments, while the sum of the guaranty is indexed according to the basic index. To remove any doubt, in any case of rise in lease payments, the Lessee would have to enlarge this aforementioned guaranty accordingly. In case this contract grants the Lessee with the right to lengthen lease duration, and had the Lessee made use of this right, the Lessee would provide to the Lessor, along with his notification about the use of that right, and as a precondition to the validity of said notice, a bank guaranty as aforementioned, to be valid until 90 (ninety) days after the end of lease period, including lengthened extent, as he wishes to lengthen it in his notice. The Lessee would cover all expenses of said bank guaranty, including stamps expenses, guaranty renovation and guaranteeing bank commissions. 20.2 The Lessor would be allowed, at his sole discretion, and without any preliminary notice, realize the guaranty, in whole or partially, in case of any breach of this lease contract by the Lessee, or in a case where payments, due to the Lessor by the Lessee, were not paid in time. After 90 (ninety) days from the end of the lease period, and after the Lessor has been satisfyingly assured that the Lessee had fulfilled all his obligations according to this Contract, the Bank guaranty would be returned to the Lessee. 20.3 To remove any doubt, the provision of the aforementioned collaterals or a part of them, and /or realization of said collaterals by the Lessor, would not diminish the right or support given to the Lessor and/or the managing company by law and/or by this contract, or diminish from the Lessor and/or his Managing Company right to collect all that is awed to them from the Lessee in any other way, or for releasing the Lessee from any of his obligations according to this contract, or limit compensation and/ or damages that the Lessor and/or Managing Company would be allowed to collect from the Lessee. The Lessee would not be recompensed for any ensuing damage to him as a result of the realization of the aforementioned collaterals. 20.4 Has the Lessor realized the Bank Guaranty in full, or in part, the Lessee would provide another guaranty instead, or supplement the sums guaranteed by it, according to the situation. 20.5 The instructions of this chapter are considered a fundamental condition of this contract, and any breach of them would be considered as a fundamental breach of Contract.

Collaterals. A. As collaterals to security for the fulfillment performance of all each of the lesseeTenant’s obligations according undertakings pursuant to this contract, the Lessee would provide Tenant shall furnish the LessorLandlord, no later than up to 7 days after the time of signing of this Contractcontract, , with all the collaterals following collaterals: An independent and autonomous financial bank guarantee, in the wording attached herewith to this contract as detailed hereinafter: 20.1 An unconditionalAppendix D or in similar wording, endorsable Bank guaranty, prepared for the Lessor benefitshekel equivalent of Rental Fees in respect to 4 months with the addition of VAT which shall be issued in favor of the Landlord and which shall not be capable of endorsement and/or mortgage to any third party save to a recognized financial institution in Israel (hereinafter: the “Guarantee” or the “Bank Guarantee”). At the time of signing this contract, realizable in proportional paymentsthe rate of the management fees regarding the Premises has not yet been calculated, stamped according to lawthereby it is agreed between the parties that the Tenant shall furnish The Landlord, on the Lessee’s accountRental Period Commencement Date (or on the date that The Tenant starts making use of the premises, to be valid whichever is earlier), an independent and autonomous financial bank guarantee in the wording of Appendix D or in similar wording, for the whole duration shekel equivalent of the lease, management fees in respect to 4 months with the addition of VAT which shall be issued in favor of The Landlord and 90 days after which shall not be capable of endorsement and /or mortgage to any third party save to a recognized financial institution in Israel (hereinafter: the end of that lease, at “Management Fees Guarantee”). Commencing the sum of 9 (nine) months of the monthly lease payments, along with 9 (nine) months of Maintenance Fee payments, plus VAT for all those payments, while the sum of the guaranty is indexed according to the basic index. To remove any doubt, in any case of rise in lease paymentsRental Period Commencement Date, the Lessee would have Management Fees Guarantee and the Bank Guarantee shall be known as the “Guarantee”. If any amount is forfeited and/or offset from the Guarantee, the Tenant undertakes to enlarge this aforementioned guaranty accordingly. In case this contract grants the Lessee deposit with the right to lengthen lease duration, and had the Lessee made use of this right, the Lessee would provide to the Lessor, along with his notification about the use of that right, and as a precondition to the validity of said notice, a bank guaranty as aforementioned, to be valid until 90 Landlord within 14 (ninety) days after the end of lease period, including lengthened extent, as he wishes to lengthen it in his notice. The Lessee would cover all expenses of said bank guaranty, including stamps expenses, guaranty renovation and guaranteeing bank commissions. 20.2 The Lessor would be allowed, at his sole discretion, and without any preliminary notice, realize the guaranty, in whole or partially, in case of any breach of this lease contract by the Lessee, or in a case where payments, due to the Lessor by the Lessee, were not paid in time. After 90 (ninetyfourteen) days from the end date of its notification the amount which was set off and/or forfeited from the aforesaid Guarantee. The Guarantee shall remain in force for one year and the Tenant undertakes to extend the validity of the lease periodGuarantee from time to time, and after until the Lessor has been satisfyingly assured expiry of 60 days from the termination of the Rental Period or any Extended Rental Period where the Agreement is extended. The Tenant shall furnish the Landlord from time to time with confirmation regarding the extension of the validity of the Guarantee as stated above. In the event that the Lessee had fulfilled all his obligations according to this ContractTenant does not extend the validity of the Guarantee as detailed above, the Bank guaranty would Landlord shall be entitled to forfeit and/or offset the amount of the Guarantee subject to granting the Tenant advance notice of its intention to do so, save where such notice is impossible or unreasonable in the circumstances. In such case, the amount on deposit shall be held until the furnishment of a new bank guarantee. In the event that the Landlord has not offset and/or did not forfeit any amount from the Guarantee, the Guarantee, or the balance of the Guarantee after any set-off or forfeit as aforesaid (which shall be performed following the provision of preliminary warning, 14 days in advance), shall be returned to the Lessee. 20.3 To remove any doubt, Tenant 30 days after vacating the provision Premises in completion of the aforementioned collaterals First or a part of themSecond or Third Period, and /or realization of said collaterals by the Lessor, would not diminish the right or support given subject to the Lessor and/or the managing company by law and/or by this contract, or diminish from the Lessor and/or his Managing Company right to collect all that is awed to them from the Lessee in any other way, or for releasing the Lessee from any of his obligations full compliance with its undertakings according to this contract, or limit compensation and/ or damages that the Lessor and/or Managing Company would be allowed to collect from the Lessee. . B. The Lessee would not be recompensed for any ensuing damage to him as a result provision of the realization collaterals pursuant to this clause shall not derogate from any of the aforementioned collaterals. 20.4 Has the Lessor realized the Bank Guaranty in full, or in part, the Lessee would provide another guaranty instead, or supplement the sums guaranteed by it, Tenant’s undertakings according to this contract and/or shall not constitute a waiver by the situationLandlord of any of its rights according to this contract including any relief afforded to it pursuant to this contract and the law. 20.5 The instructions of this chapter are considered a fundamental condition of this contract, and any breach of them would be considered as a fundamental breach of Contract.