Common use of Deposit of Letter of Credit Security Clause in Contracts

Deposit of Letter of Credit Security. Tenant shall deliver to Landlord upon the execution of this Lease an unconditional, irrevocable letter of credit (“Letter of Credit”) on a form acceptable to Landlord and, if required, Landlord’s lender(s), each in their respective sole and absolute discretion, and in favor of Beneficiary, defined below, in the amount set forth in the Summary (the “Letter of Credit Security”). “Beneficiary” refers to either: (x) Landlord as beneficiary, or (y) if required by Landlord’s lender(s), Landlord and Landlord’s lender(s) as co-beneficiaries under the Letter of Credit Security. The Letter of Credit Security shall: (i) be issued by a commercial money center bank reasonably satisfactory to Landlord with retail branches in Santa Xxxxx County or San Mateo County, California (the “Issuer”) (Landlord hereby agrees that, as of the date hereof, Silicon Valley Bank is acceptable to Landlord as an Issuer); (ii) be a standby, at-sight, irrevocable letter of credit; (iii) be payable to Beneficiary on the day of or next business day following presentment to Issuer; (iv) permit multiple, partial draws; (v) provide that any draw on the Letter of Credit Security shall be made upon receipt by the Issuer of a sight draft accompanied by a letter from Landlord stating that Landlord is entitled to draw on the Letter of Credit Security in the amount of such draw pursuant to the provisions of this Lease; (vi) provide for automatic annual extensions, without amendment (so-called “evergreen” provision) with a final expiry date no sooner than ninety (90) days after the end of the Lease Term; (vii) provide that it is governed by the Uniform Customs and Practice for Documentary Credits (2006 revisions) International Chamber of Commerce Publication 600; (viii) be cancelable if, and only if, Issuer delivers to Beneficiary no less than sixty (60) days advance written notice of Issuer’s intent to cancel; and (ix) be fully transferable by Landlord. Tenant shall pay all costs, expenses, points and/or fees incurred by Tenant in obtaining the Letter of Credit Security. Tenant shall have the right to substitute a new Letter of Credit in place of any existing Letter of Credit then held by Landlord hereunder so long as such new Letter of Credit satisfies the foregoing requirements at any time during the Lease Term and, in particular, in the event of an assignment of the Lease as authorized in Article XI.

Deposit of Letter of Credit Security. Tenant Lessee shall deliver to Landlord upon deposit with Lessor, on or before the execution of date that is three (3) business days after the date Lessee executes this Lease Lease, an unconditional, irrevocable letter of credit (“Letter of Credit”) on a form acceptable to Landlord Lessor and, if required, LandlordLessor’s lender(s), each in their respective sole and absolute discretion, and in favor of Beneficiary, Beneficiary (as defined below, ) in the amount set forth in the Summary of One Million Five Hundred Thousand and 00/100 Dollars ($1,500,000.00) (the “Letter of Credit Security”). “Beneficiary,” as used herein refers to either: (x) Landlord Lessor as beneficiary, or (y) if required by LandlordLessor’s lender(s), Landlord Lessor and LandlordLessor’s lender(s) as co-beneficiaries under the Letter of Credit Security. The Letter of Credit Security shall: (i) be issued by a commercial money center bank reasonably satisfactory to Landlord Lessor with retail branches in Santa Xxxxx County or San Mateo CountyFrancisco, California (the “Issuer”) (Landlord hereby agrees that, as of the date hereof, Silicon Valley Bank is acceptable to Landlord as an Issuer); (ii) be a standby, at-sight, irrevocable letter of credit; (iii) be payable to Beneficiary on the day of or next business day following presentment to IssuerBeneficiary; (iv) permit multiple, partial draws; draws , (v) provide that any draw on the Letter of Credit Security shall be made upon receipt by the Issuer of a sight draft accompanied by a letter from Landlord Lessor stating that Landlord Lessor is entitled entitled, pursuant to the provisions of this Lease, to draw on the Letter of Credit Security in the amount of such draw pursuant to the provisions of this Leasedraw; (vi) provide for automatic annual extensions, without amendment (so-called “evergreen” provision) with a final expiry date no sooner than ninety (90) days after the end of the Lease Term; (vii) provide that it is governed by the Uniform Customs and Practice for Documentary Credits (2006 1993 revisions) International Chamber of Commerce Publication 600500; and (viii) be cancelable if, and only if, Issuer delivers to Beneficiary no less than sixty (60) days advance written notice of Issuer’s intent to cancel; and (ix) be fully transferable by Landlord. Tenant Lessee shall pay all costs, expenses, points and/or fees incurred by Tenant Lessee in obtaining the Letter of Credit Security. Tenant shall have the right to substitute a new Letter of Credit in place of any existing Letter of Credit then held by Landlord hereunder so long as such new Letter of Credit satisfies the foregoing requirements at any time during the Lease Term and, in particular, in the event of an assignment of the Lease as authorized in Article XI.