Amount; Requirements Clause Samples

Amount; Requirements. On the execution of this Lease, Tenant shall deliver to Landlord as security for the performance of the obligations of Tenant hereunder a letter of credit in the initial amount of [$23,219.00] (the “Initial Amount”) in accordance with this Section 4.6 (as renewed, replaced and/or reduced pursuant to this Section 4.6, the “Letter of Credit”). Tenant’s failure to timely deliver the Letter of Credit to Landlord shall constitute a default under this Lease, without the benefit of any notice or cure period under Article 13 hereof. The Letter of Credit (a) shall be irrevocable and shall be issued by a U.S. commercial bank reasonably acceptable to Landlord that has an office for presentment in the Boston, Massachusetts metropolitan area, in a form substantially similar to the form attached as Exhibit F, (b) shall require only the presentation to the issuer of a certificate of the holder of the Letter of Credit stating that Landlord is entitled to draw on the Letter of Credit pursuant to the terms of this Lease, (c) shall be payable to Landlord or its successors in interest as the Landlord, and shall be freely transferable without cost to Landlord, any such successor or any lender holding a collateral assignment of Landlord’s interest in the Lease, (d) shall be for an initial term of not less than one (1) year and contain a provision that such term shall be automatically renewed for successive one-year periods unless the issuer shall, at least sixty (60) days prior to the scheduled expiration date, give Landlord notice of such non-renewal, and (e) shall otherwise be in form and substance reasonably acceptable to Landlord.