Common use of Security Letter of Credit Clause in Contracts

Security Letter of Credit. In lieu of paying or maintaining the Security Deposit in cash, Lessee may deliver to Lessor a Security Letter of Credit in the amount of the Cash Security Deposit. (a) If Lessee elects to provide a Security Letter of Credit, Lessee shall provide a draft of the same for approval by Lessor not less than ten (10) Business Days prior to the date that Lessee desires to deliver the Security Letter of Credit to Lessor in substitution for the Cash Security Deposit. The Security Letter of Credit shall remain in full force and effect during the Lease Term and for not less than ninety (90) days following the Scheduled Termination Date, shall permit partial and multiple draws without invalidating or terminating the remaining balance of the Security Letter of Credit, and shall be freely assignable and transferable by Lessor without restriction or condition. Following receipt by Lessor of the Security Letter of Credit, Lessor shall promptly, and in any event within five (5) Business Days, repay to Lessee the equivalent amount of the Cash Security Deposit. (b) Lessor may draw upon all or a portion of the amount of the Security Letter of Credit: (i) upon the occurrence of an Event of Default; and/or (ii) if Lessee has not delivered a replacement Security Letter of Credit to Lessor in accordance with the provisions of this Section 4.6 or deposited with Lessor cash in the amount of the Security Deposit by the required time set forth therein; and/or (iii) not sooner than five (5) Business Days prior to the expiration date of the Security Letter of Credit if (x) such expiration date is prior to the date required under Section 4.6(a), and (y) Lessee has not delivered a replacement letter of credit in substitution for the expiring Security Letter of Credit by such date or deposited with Lessor by such date the Security Deposit in cash; and Lessor shall hold, apply, use, retain and return all or any portion of the funds paid pursuant to the Security Letter of Credit to the same extent as provided in Sections 4.3 and 4.5, as if Lessee had paid the Security Deposit in cash. (c) If Lessor draws upon all or any portion of the Security Letter of Credit, such application shall not be deemed a cure of any Event of Default, and Lessee shall within three (3) Business Days after written demand by Lessor cause the Security Letter of Credit to be reinstated to its original amount, cause a replacement letter of credit to be issued in the total amount of the Security Deposit or pay the amount of such shortfall in the Security Deposit amount in cash. (d) If (i) any bankruptcy, insolvency, examinership, administration, reorganisation, liquidation or anything analogous thereto in any jurisdiction shall be commenced in relation to the issuer of the Security Letter of Credit (or any Person guaranteeing, confirming or assuming any

Security Letter of Credit. In lieu of paying or maintaining the Security Deposit in cash, Lessee may deliver to Lessor a Security Letter of Credit in the amount of the Cash Security Deposit. (a) If Lessee elects to provide a Security Letter of Credit, Lessee shall provide a draft of the same for approval by Lessor not less than ten (10) Business Days prior to the date that Lessee desires to deliver the Security Letter of Credit to Lessor in substitution for the Cash Security Deposit. The Security Letter of Credit shall remain in full force and effect during the Lease Term and for not less than ninety (90) days following the Scheduled Termination Date, shall permit partial and multiple draws without invalidating or terminating the remaining balance of the Security Letter of Credit, and shall be freely assignable and transferable by Lessor without restriction or condition. Following receipt by Lessor of the Security Letter of Credit, Lessor shall promptly, and in any event within five (5) Business Days, repay to Lessee the equivalent amount of the Cash Security Deposit. (b) Lessor may draw upon all or a portion of the amount of the Security Letter of Credit: (i) upon the occurrence of an Event of Default; and/or (ii) if Lessee has not delivered a replacement Security Letter of Credit to Lessor in accordance with the provisions of this Section 4.6 or deposited with Lessor cash in the amount of the Security Deposit by the required time set forth therein; and/or (iii) not sooner than five (5) Business Days prior to the expiration date of the Security Letter of Credit if (x) such expiration date is prior to the date required under Section 4.6(a), and (y) Lessee has not delivered a replacement letter of credit in substitution for the expiring Security Letter of Credit by such date or deposited with Lessor by such date the Security Deposit in cash; and Lessor shall hold, apply, use, retain and return all or any portion of the funds paid pursuant to the Security Letter of Credit to the same extent as provided in Sections 4.3 and 4.5, as if Lessee had paid the Security Deposit in cash. (c) If Lessor draws upon all or any portion of the Security Letter of Credit, such application shall not be deemed a cure of any Event of Default, and Lessee shall within three (3) Business Days after written demand by Lessor cause the Security Letter of Credit to be reinstated to its original amount, cause a replacement letter of credit to be issued in the total amount of the Security Deposit or pay the amount of such shortfall in the Security Deposit amount in cash. (d) If (i) any bankruptcy, insolvency, examinership, administration, reorganisation, liquidation or anything analogous thereto in any jurisdiction shall be commenced in relation to the issuer of the Security Letter of Credit (or any Person guaranteeing, confirming or assuming anyany obligation as principal in respect thereof), (ii) the rating of obligations of the issuer of any Security Letter of Credit (or any Person guaranteeing, confirming or assuming any obligation as principal in respect thereof) is lowered or placed on CreditWatch with negative implications by

Security Letter of Credit. In lieu of paying or maintaining the Security Deposit in cash, Lessee may deliver to Lessor a Security Letter of Credit in the amount of the Cash Security Deposit. (a) If Lessee elects to provide a Security Letter of Credit, Lessee shall provide a draft of the same for approval by Lessor not less than ten (10) Business Days prior to the date that Lessee desires to deliver the Security Letter of Credit to Lessor in substitution for the Cash Security Deposit. The Security Letter of Credit shall remain in full force and effect during the Lease Term and for not less than ninety (90) days following the Scheduled Termination Date, shall permit partial and multiple draws without invalidating or terminating the remaining balance of the Security Letter of Credit, and shall be freely assignable and transferable by Lessor without restriction or condition. Following receipt by Lessor of the Security Letter of Credit, Lessor shall promptly, and in any event within five (5) Business Days, repay to Lessee the equivalent amount of the Cash Security Deposit. (b) Lessor may draw upon all or a portion of the amount of the Security Letter of Credit: (i) upon the occurrence of an Event of Default; and/or (ii) if Lessee has not delivered a replacement Security Letter of Credit to Lessor in accordance with the provisions of this Section 4.6 or deposited with Lessor cash in the amount of the Security Deposit by the required time set forth therein; and/or (iii) not sooner than five (5) Business Days prior to the expiration date of the Security Letter of Credit if (x) such expiration date is prior to the date required under Section 4.6(a), and (y) Lessee has not delivered a replacement letter of credit in substitution for the expiring Security Letter of Credit by such date or deposited with Lessor by such date the Security Deposit in cash; and Lessor shall hold, apply, use, retain and return all or any portion of the funds paid pursuant to the Security Letter of Credit to the same extent as provided in Sections 4.3 and 4.5, as if Lessee had paid the Security Deposit in cash. (c) If Lessor draws upon all or any portion of the Security Letter of Credit, such application shall not be deemed a cure of any Event of Default, and Lessee shall within three (3) Business Days after written demand by Lessor cause the Security Letter of Credit to be reinstated to its original amount, cause a replacement letter of credit to be issued in the total amount of the Security Deposit or pay the amount of such shortfall in the Security Deposit amount in cash. (d) If (i) any bankruptcy, insolvency, examinership, administration, reorganisation, liquidation or anything analogous thereto in any jurisdiction shall be commenced in relation to the issuer of the Security Letter of Credit (or any Person guaranteeing, confirming or assuming anyany obligation as principal in respect thereof), (ii) the rating of obligations of the issuer of any Security Letter of Credit (or any Person guaranteeing, confirming or assuming any obligation as principal in respect thereof) is lowered or placed on CreditWatch with negative implications by Xxxxx’x Investors Services or Standard & Poor’s (or any recognised institution providing similar services) so that the minimum required credit rating of the issuing and/or confirming bank is or may not (by virtue of being placed on CreditWatch with negative implications) be maintained or (iii) the Security Letter of Credit shall cease to be valid and in full force and effect for any reason, Lessee shall within three (3) Business Days of receipt of notice from Lessor provide to Lessor a substitute Security Letter of Credit in form and substance satisfactory to Lessor and otherwise in compliance with the requirements of this Section 4.6 or deposit with Lessor cash in the amount of the Security Deposit. (e) Lessor shall return the Security Letter of Credit to Lessee for cancellation when Lessor is otherwise obligated under this Lease to repay the Security Deposit to Lessee had the same been paid in cash.

Security Letter of Credit. In Subject to no Event of Default having occurred which is continuing, in lieu of paying or maintaining the Security Deposit in cash, at any time following the Delivery Date Lessee may deliver to Lessor a Security Letter of Credit in the amount of the Cash Security DepositLetter of Credit Face Amount. (a) If Lessee elects to provide a Security Letter of Credit, Lessee shall provide a draft of the same for approval by Lessor not less than ten five (105) Business Days prior to the date that Lessee desires to deliver the Security Letter of Credit to Lessor in substitution for the Cash cash Security Deposit. The Security Letter of Credit shall remain in full force and effect during the Lease Term and for shall: (i) have a validity period of not less than ninety one (901) year or, if shorter, a period which ends on the date occurring thirty (30) days following the Scheduled Termination Date, Expiry Date and shall be renewed and delivered to Lessor not later than thirty (30) days prior to its then scheduled expiry; (ii) permit partial and multiple draws without invalidating or terminating the remaining balance of the Security Letter of Credit, and shall ; and (iii) be freely assignable and transferable by Lessor without restriction or condition. Following receipt by Lessor of the Security Letter of Credit, Lessor shall promptly, and in any event within five (5) Business Days, repay to Lessee an amount equal to the equivalent amount then balance of the Cash cash Security Deposit. (b) Any Security Letter of Credit delivered to Lessor hereunder is provided as a guarantee of Lessee’s obligations under the Lease, all other Relevant Documents and any Other Lease. Lessor may draw upon all or a portion of the amount of the Security Letter of Credit: (i) upon the occurrence and during the continuance of an Event of Default; and/or (ii) if Lessee has not delivered a replacement Security Letter of Credit fails to Lessor in accordance with the provisions of this Section 4.6 or deposited with Lessor cash in the amount of the Security Deposit by the required time set forth therein; and/or (iii) not sooner than five (5) Business Days prior to the expiration date of the Security Letter of Credit if (x) such expiration date is prior to the date required under Section 4.6(a), and (y) Lessee has not delivered a replacement letter of credit in substitution for the expiring renew any Security Letter of Credit by such the date or deposited with Lessor by such date the Security Deposit in cash; falling thirty (30) days prior to its then scheduled expiry, and Lessor shall hold, apply, use, retain and return all or any portion of the funds paid pursuant to the Security Letter of Credit to as the same extent Security Deposit as provided in Sections 4.3 and 4.5, as if Lessee had paid the Security Deposit in cashforegoing provisions of this Clause 4.4. (c) If Lessor draws upon all or any portion of the Security Letter of Credit, such application shall not be deemed a cure of any Event of Default, and Lessee shall promptly, and in any event within three five (35) Business Days Days, after written demand by Lessor cause the Security Letter of Credit to be reinstated to its original amount, cause a replacement letter Security Letter of credit Credit to be issued in the total amount Security Letter of Credit Face Amount or pay the Security Deposit or pay the amount of such shortfall in the Security Deposit amount to Lessor in cash. (d) If (i) any bankruptcy, insolvency, examinership, administration, reorganisationreorganization, liquidation or anything analogous thereto in any jurisdiction shall be commenced in relation to the issuer Security Letter of Credit Issuer (or any person guaranteeing, confirming or assuming any obligation as principal in respect thereof), (ii) the rating of obligations of the Security Letter of Credit Issuer (or any Person person guaranteeing, confirming or assuming anyany obligation as principal in respect thereof) is lowered or placed on CreditWatch with negative implications by Xxxxx’x Investors Services or Standard & Poor’s (or any recognised institution providing similar services) so that the minimum required credit rating of the issuing and/or confirming bank is or may not (by virtue of being placed on CreditWatch with negative implications) be maintained or (iii) the Security Letter of Credit shall cease to be valid and in full force and effect for any reason, Lessee shall promptly, and in any event within five (5) Business Days, following receipt of notice from Lessor provide to Lessor a substitute Security Letter of Credit in form and substance satisfactory to Lessor and otherwise in compliance with the requirements of this Clause 4.4.6 or pay to Lessor the Security Deposit in cash. (e) Lessor shall return the Security Letter of Credit to Lessee for cancellation when Lessor is otherwise obligated under this Lease to repay the Security Deposit to Lessee had the same been paid in cash.