Common use of Form of Letter of Credit Clause in Contracts

Form of Letter of Credit. Subject to 4.6.5, within five (5) business days after the Effective Date, Sub-Subtenant shall deliver to Sub-Sublandlord, as security for the faithful performance of all Sub-Subtenant’s obligations under this Sub-Sublease, an irrevocable standby letter of credit (the “Letter of Credit”) in the amount of $315,570.81 for the account of Sub-Subtenant and for the benefit of Sub-Sublandlord, and issued by a bank reasonably acceptable to Sub-Sublandlord (the “Issuer”). On or before the Delivery Date for Suite 100, Sub-Subtenant shall replace the existing Letter of Credit or amend the existing Letter of Credit to be in the amount of $594,681.15 for the remainder of the Sub-Sublease Term, and Sub-Sublandlord shall return the prior Letter of Credit. Sub-Sublandlord approves of Silicon Valley Bank as the issuer of the Letter of Credit. The Letter of Credit shall be substantially in the form attached hereto as Exhibit D. Sub-Subtenant shall maintain the Letter of Credit in effect until sixty (60) days after the later of (x) the expiration of the Sub-Sublease Term or earlier termination of this Sub-Sublease, or (y) vacation of the Sub-Sublease Premises by Sub-Subtenant. If the Letter of Credit shall expire prior to said date, Sub-Subtenant shall renew the Letter of Credit prior to its expiration or arrange for issuance of a new Letter of Credit in accordance with the terms hereof. If Sub-Subtenant fails to give Sub-Sublandlord evidence of renewal of the Letter of Credit or issuance of a new Letter of Credit at least thirty (30) days prior to the expiration of the Letter of Credit then in effect, such failure shall not be a default hereunder, but Sub-Sublandlord shall be entitled to draw down the full amount of the Letter of Credit and the amount so drawn (“Draw Proceeds”), which shall be held and maintained by Sub-Sublandlord and may be applied in the same manner as set forth in Section 4.6.5 below with respect to a Security Deposit. The Letter of Credit shall be returned to Sub-Subtenant under the same terms as described for a Security Deposit in Section 4.6.5. Notwithstanding the foregoing, if Sub-Subtenant has elected to terminate the Sub-Sublease of Suite 200 as set forth in Section 2.2.5, Sub-Sublandlord shall return the Letter of Credit, if applicable, given for Suite 200 within five (5) business days of such termination, and the amount of the Letter of Credit to be provided at the Delivery Date for Suite 100 and required under this Sub-Sublease for the remainder of the Sub-Sublease Term shall be $279,108.34.

Form of Letter of Credit. Subject to 4.6.5, within Within five (5) business days after the Effective DateMaster Landlord’s consent to this Sublease, Sub-Subtenant shall deliver to Sub-Sublandlord, as security for the faithful performance of all Sub-Subtenant’s obligations under this Sub-Sublease, an irrevocable standby letter of credit (the “Letter of Credit”) in the amount of $315,570.81 324,435.08 for the account of Sub-Subtenant and for the benefit of Sub-Sublandlord, Sublandlord and issued by a bank reasonably acceptable to Sub-Sublandlord (the “Issuer”). On Provided however, if Subtenant has a cash, or before cash equivalent balance exceeding $125,000,000.00 for the Delivery Date for Suite 100fiscal quarter preceding month 36 of the sublease term, Sub-Subtenant shall replace the existing Letter of Credit or amend the existing Letter of Credit amount shall be reduced to be in the amount of $594,681.15 216,290.05 at month 36 for the remainder of the Sub-Sublease Term, and Sub-Sublandlord shall return the prior . Subtenant will provide a copy of such Letter of Credit. Sub-Sublandlord approves of Silicon Valley Bank as the issuer of the Letter of Credit. The Letter of Credit shall be substantially in the form attached hereto as Exhibit D. Sub-Subtenant shall maintain the Letter of Credit in effect until sixty thirty (6030) days after the later of (x) the expiration of the Sub-Sublease Term or earlier termination of this Sub-Sublease, or (y) vacation of the Sub-Sublease Premises by Sub-Subtenant. If the Letter of Credit shall expire prior to said date, Sub-Subtenant shall renew the Letter of Credit prior to its expiration or arrange for issuance of a new Letter of Credit in accordance with the terms hereof. If Sub-Subtenant fails to give Sub-Sublandlord evidence of renewal of the Letter of Credit or issuance of a new Letter of Credit at least thirty ten (3010) days prior to the expiration of the Letter of Credit then in effect, such failure shall not be a default hereunder, but Sub-Sublandlord shall be entitled to draw down the full amount of the Letter of Credit and the amount so drawn (“Draw Proceeds”), which although not a cash security deposit, shall be held and maintained by Sub-Sublandlord and may be applied in the same manner as set forth in Section 4.6.5 below with respect to a Security Deposit. The Letter of Credit shall be returned to Sub-Subtenant under the same terms as described for a Security Deposit in Section 4.6.5. Notwithstanding the foregoing, if Sub-Subtenant has elected to terminate the Sub-Sublease of Suite 200 as set forth in Section 2.2.5, Sub-Sublandlord shall return the Letter of Credit, if applicable, given for Suite 200 within five (5) business days of such termination, and the amount of the Letter of Credit to be provided at the Delivery Date for Suite 100 and required under this Sub-Sublease for the remainder of the Sub-Sublease Term shall be $279,108.34.

Form of Letter of Credit. Subject to 4.6.5, within Within five (5) business days after Landlord notifies Tenant of the Effective Date, Sub-Subtenant Tenant shall deliver to Sub-SublandlordLandlord, as security for the faithful performance of all Sub-Subtenant’s of Tenant's obligations under this Sub-SubleaseLease, an irrevocable standby stand-by letter of credit (the “"Letter of Credit”") in the amount of Two Million Dollars ($315,570.81 2,000,000.00) for the account of SubTenant and naming Landlord and Senior Lender severally as co-Subtenant and for beneficiaries, or, if approved by Lender, naming Landlord as the benefit of Sub-Sublandlordsole beneficiary, (the named beneficiary or beneficiaries being hereinafter referred to as the "Beneficiary"), and issued by a bank reasonably acceptable Xxxxx Fargo Bank, N.A., or other National Banking Association member satisfactory to Sub-Sublandlord Senior Lender (the “"Issuer”"). On or before the Delivery Date for Suite 100, Sub-Subtenant shall replace the existing Letter of Credit or amend the existing Letter of Credit to be in the amount of $594,681.15 for the remainder of the Sub-Sublease Term, and Sub-Sublandlord shall return the prior Letter of Credit. Sub-Sublandlord approves of Silicon Valley Bank as the issuer of the Letter of Credit. The Letter of Credit shall be substantially in the form attached hereto as Exhibit D. Sub-Subtenant B and shall additionally provide, on terms satisfactory to Lender, for Landlord's assignment to Senior Lender of Landlord's rights to draw under and to receive the proceeds of said Letter of Credit and for Tenant's consent to the foregoing and acknowledgement of Senior Lender's reliance thereupon. Tenant shall maintain the Letter of Credit in effect until sixty August 1, 2005 (60) days after and the later original Letter of (x) the expiration of the Sub-Sublease Term or earlier termination of this Sub-Sublease, or (y) vacation of the Sub-Sublease Premises by Sub-SubtenantCredit shall be returned to Tenant promptly following such date). If the Letter of Credit shall expire prior to said date, Sub-Subtenant Tenant shall renew the Letter of Credit prior to its expiration or arrange for issuance of a new Letter of Credit in accordance with the terms hereof. If Sub-Subtenant Tenant fails to give Sub-Sublandlord Senior Lender satisfactory evidence of renewal of the Letter of Credit or issuance of a new Letter of Credit at least thirty (30) days prior to the expiration of the Letter of Credit then in effect, such failure shall not be a default hereunder, but Sub-Sublandlord Beneficiary shall be entitled to draw down the full amount of the Letter of Credit and the amount so drawn (“"Draw Proceeds”"), which although not a cash security deposit, shall be held and maintained by Sub-Sublandlord Senior Lender and may be applied in the same manner as set forth in Section 4.6.5 below with respect to a Security Deposit. The Letter of Credit shall be returned to Sub-Subtenant under the same terms as described for a Security Deposit in Section 4.6.5. Notwithstanding the foregoing, if Sub-Subtenant has elected to terminate the Sub-Sublease of Suite 200 as set forth in Section 2.2.5, Sub-Sublandlord shall return the Letter of Credit, if applicable, given for Suite 200 within five (5Paragraph 33(f) business days of such termination, and the amount of the Letter of Credit to be provided at the Delivery Date for Suite 100 and required under this Sub-Sublease for the remainder of the Sub-Sublease Term shall be $279,108.34below.