Common use of Draws Clause in Contracts

Draws. Tenant acknowledges and agrees that Landlord is entering into this Lease in material reliance on the ability of Landlord to draw on the Letter of Credit on the occurrence of any breach, default or failure to perform on the part of Tenant under this Lease. If Tenant shall breach or fail to perform any provision of this Lease or otherwise be in default under this Lease, Landlord may, but without obligation to do so, and without notice to Tenant, draw on the Letter of Credit, in part or in whole, to cure any breach or default of Tenant and to compensate Landlord for any and all damages of any kind or nature sustained or which Landlord reasonably estimates that it will sustain resulting from Tenant’s breach or default and to which Landlord is entitled under this Lease, including any damages that accrue upon termination of the Lease under the Lease and/or Section 1951.2 of the California Civil Code or any similar provision. The use, application, or retention of any proceeds of the Letter of Credit, or any portion of it, by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by any applicable law, it being intended that Landlord shall not first be required to proceed against the Letter of Credit, and shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled. Tenant agrees not to interfere in any way with payment to Landlord of the proceeds of the Letter of Credit, following a draw properly made by Landlord of any portion of the Letter of Credit. No condition or term of this Lease shall be deemed to render the Letter of Credit conditional to justify the issuer of the Letter of Credit in failing to honor a drawing on such Letter of Credit in a timely manner. Tenant agrees and acknowledges that (1) the Letter of Credit constitutes a separate and independent contract between Landlord and the Bank; (2) Tenant is not a third party beneficiary of such contract; (3) Tenant has no property interest whatsoever in the Letter of Credit; and (4) if Tenant becomes a debtor under any chapter of the Bankruptcy Code, neither Tenant, any trustee, nor Tenant’s bankruptcy estate shall have any right to restrict or limit Landlord’s claim or rights to the Letter of Credit by application of Section 502(b)(6) of the U.S. Bankruptcy Code or otherwise. In addition, Landlord, or its then managing agent, shall have the right to draw down an amount up to the face amount of the Letter of Credit if any of the following shall have occurred or be applicable:

Draws. Tenant acknowledges and agrees that Landlord is entering into this Lease in material reliance on the ability of Landlord to draw on the Letter of Credit on the occurrence of any breach, default or failure to perform on the part of Tenant under this Lease. If Tenant shall breach or fail to perform any provision of this Lease or otherwise be in default under this Lease, in each case beyond the applicable notice and cure period, Landlord may, but without obligation to do so, and without notice to Tenant, draw on the Letter of Credit, in part or in whole, to cure any breach or default of Tenant and to compensate Landlord for any and all damages of any kind or nature sustained or which Landlord reasonably estimates that it will sustain resulting from Tenant’s breach or default and to which Landlord is entitled under this Lease, including any damages that accrue upon termination of the Lease under the Lease and/or Section 1951.2 of the California Civil Code or any similar provision. The use, application, or retention of any proceeds of the Letter of Credit, or any portion of it, by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by any applicable law, it being intended that Landlord shall not first be required to proceed against the Letter of Credit, and shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled. Tenant agrees not to interfere in any way with payment to Landlord of the proceeds of the Letter of Credit, following a draw properly made by Landlord of any portion of the Letter of Credit. No condition or term of this Lease shall be deemed to render the Letter of Credit conditional to justify the issuer of the Letter of Credit in failing to honor a drawing on such Letter of Credit in a timely manner. Tenant agrees and acknowledges that (1) the Letter of Credit constitutes a separate and independent contract between Landlord and the Bank; (2) Tenant is not a third party beneficiary of such contract; (3) Tenant has no property interest whatsoever in the Letter of Credit; and (4) if Tenant becomes a debtor under any chapter of the Bankruptcy Code, neither Tenant, any trustee, nor Tenant’s bankruptcy estate shall have any right to restrict or limit Landlord’s claim or rights to the Letter of Credit by application of Section 502(b)(6) of the U.S. Bankruptcy Code or otherwise. In addition, Landlord, or its then managing agent, shall have the right to draw down an amount up to the face amount of the Letter of Credit if any of the following shall have occurred or be applicable:

Draws. Tenant acknowledges and agrees that Landlord is entering into this Lease in material reliance on the ability of Landlord to draw on the Letter of Credit on the occurrence of any breach, breach or default or failure to perform on the part of Tenant under this LeaseLease after the expiration of applicable notice and cure Periods. If Tenant shall breach or fail to perform any provision of this Lease or otherwise be in default under this Lease, Landlord may, but without obligation to do so, and without notice to Tenant, draw on the Letter of Credit, in part or in whole, to cure any breach or default of Tenant and to compensate Landlord for any and all damages of any kind or nature sustained or which Landlord reasonably estimates that it will sustain resulting from Tenant’s breach or default and to which Landlord is entitled under this Lease, including any damages that accrue upon termination of the Lease under the Lease and/or Section 1951.2 of the California Civil Code or any similar provisiondefault. The use, application, or retention of any proceeds of the Letter of Credit, or any portion of it, by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by any applicable law, it being intended that Landlord shall not first be required to proceed against the Letter of Credit, and shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled. Tenant agrees not to interfere in any way with payment to Landlord of the proceeds of the Letter of Credit, either before or following a draw properly made by Landlord of any portion of the Letter of Credit, regardless of whether any dispute exists between Tenant and Landlord as to Landlord’s right to draw on the Letter of Credit. No condition or term of this Lease shall be deemed to render the Letter of Credit conditional to justify the issuer of the Letter of Credit in failing to honor a drawing on such Letter of Credit in a timely manner. Tenant agrees and acknowledges that (1) the Letter of Credit constitutes a separate and independent contract between Landlord and the Bank; (2) Tenant is not a third party beneficiary of such contract; (3) Tenant has no property interest whatsoever in the Letter of CreditCredit or the proceeds of it; and (4) if Tenant becomes a debtor under any chapter of the Bankruptcy Code, neither Tenant, any trustee, nor Tenant’s bankruptcy estate shall have any right to restrict or limit Landlord’s claim or rights to the Letter of Credit or the proceeds of it by application of Section 502(b)(6) of the U.S. Bankruptcy Code or otherwise. In addition, Landlord, or its then managing agent, shall have the right to draw down an amount up to the face amount of the Letter of Credit if any of the following shall have occurred or be applicable:.

Draws. Tenant acknowledges and agrees that Landlord is entering into this Lease in material reliance on the ability of Landlord to may draw on under the Letter of Credit on upon the ----- occurrence of an Event of Default hereunder. Any such draw shall not cure an Event of Default. Landlord shall have the right, but not the obligation, to apply all or any breach, default portion of the proceeds from the Letter of Credit to pay all or failure to perform on the part any portion of [i] all Rent and other charges and expenses payable by Tenant under this Lease. If Tenant shall breach ; plus [ii] all expenses and costs incurred by Landlord in enforcing or fail to perform any provision of preserving Landlord's rights under this Lease or otherwise be in default under this Lease, Landlord may, but without obligation to do so, and without notice to Tenant, draw on any security for the Letter of Credit, in part or in whole, to cure any breach or default of Tenant and to compensate Landlord for any and all damages of any kind or nature sustained or which Landlord reasonably estimates that it will sustain resulting from Tenant’s breach or default and to which Landlord is entitled under this Lease, including without limitation, [a] the fees, expenses, and costs of any damages that accrue upon termination of the Lease under the Lease and/or Section 1951.2 of the California Civil Code or any similar provision. The uselitigation, applicationreceivership, administrative, bankruptcy, insolvency, or retention other similar proceeding; [b] attorney, paralegal, consulting and witness fees and disbursements; and [c] the expenses, including without limitation, lodging, meals and transportation of any proceeds of the Letter of CreditLandlord and its employees, agents, attorneys, and witnesses in preparing for litigation, administrative, bankruptcy, insolvency, or any portion of itsimilar proceedings and attendance at hearings, by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by any applicable law, it being intended that Landlord shall not first be required to proceed against the Letter of Creditdepositions, and shall not operate as a limitation on any recovery trials in connection therewith. With respect to which Landlord may otherwise be entitled. Tenant agrees not to interfere in any way with payment to Landlord of the proceeds of the Letter of Credit, following a draw properly made by Landlord of any portion of the Letter of Credit. No condition Credit proceeds that is not applied to payment of Tenant's Obligations, Landlord shall have the option to either [i] deposit the proceeds into an interest-bearing account with a financial institution chosen by Landlord ("LC Account"); or term [ii] require Tenant to obtain a replacement Letter of this Lease shall be deemed Credit satisfactory to render Landlord, with the Letter of Credit conditional proceeds made available to justify the issuer of the Letter of Credit in failing Tenant to honor a drawing on such Letter of Credit in a timely manner. Tenant agrees and acknowledges that (1) the Letter of Credit constitutes a separate and independent contract between Landlord and the Bank; (2) Tenant is not a third party beneficiary of such contract; (3) Tenant has no property interest whatsoever in secure Tenant's reimbursement obligation for the Letter of Credit; . All interest accruing on the LC Account shall be paid to Landlord and (4) if may, from time to time, be withdrawn from the LC Account by Landlord. At any time and from time to time until Tenant's Obligations are performed in full, Landlord may apply all or any portion of Tenant's Obligations. Within 10 days after any such payment from the LC Account, Landlord shall give written notice to Tenant becomes describing the amount of such payment and how it was applied to Tenant's Obligations. Upon the occurrence of either [i] Landlord's receipt of a debtor under any chapter of the Bankruptcy Code, neither Tenant, any trustee, nor Tenant’s bankruptcy estate shall have any right to restrict or limit Landlord’s claim or rights to the replacement Letter of Credit that satisfies the requirements of (S)20.1 and is issued by application an Issuer acceptable to Landlord; or [ii] the date on which all of Section 502(b)(6) Tenant's Obligations are performed in full, Landlord shall pay the principal balance of the U.S. Bankruptcy Code or otherwise. In addition, Landlord, or its then managing agent, shall have the right LC Account (but not any accrued interest) to draw down an amount up to the face amount of the Letter of Credit if any of the following shall have occurred or be applicable:Tenant.

Draws. If Tenant acknowledges and agrees that Landlord is entering into this Lease in material reliance on the ability of Landlord fails to draw on timely deliver either the Letter of Credit on or any Continuation Letter of Credit to Landlord in accordance with the occurrence provisions of any breachthis Section 5.12, default or failure to perform on the part of Tenant under this Lease. If then Tenant shall breach or fail be deemed to perform any provision of this Lease or otherwise be in default under this Lease, Landlord may, but without obligation the notice and cure periods afforded to do so, and without notice Tenant pursuant to Tenant, draw on the Letter of Credit, in part or in whole, to cure any breach or default of Tenant and to compensate Landlord for any and all damages of any kind or nature sustained or which Landlord reasonably estimates that it will sustain resulting from Tenant’s breach or default and to which Landlord is entitled under this Lease, including any damages that accrue upon termination of the Lease under the Lease and/or Section 1951.2 of the California Civil Code or any similar provision. The use, application, or retention of any proceeds of the Letter of Credit, or any portion of it, by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by any applicable law, it being intended that Landlord shall not first be required to proceed against the Letter of Credit, and shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled. Tenant agrees not to interfere in any way with payment to Landlord of the proceeds of the Letter of Credit, following a draw properly made by Landlord of any portion of the Letter of Credit. No condition or term of this Lease shall not be deemed applicable and such failure by Tenant shall entitle Landlord to render immediately draw upon the Letter of Credit conditional to justify the issuer of the Letter of Credit in failing to honor a drawing on such Letter of Credit in a timely manner. Tenant agrees and acknowledges that (1) the Letter of Credit constitutes a separate and independent contract between Landlord and the Bank; (2) Tenant is not a third party beneficiary of such contract; (3) Tenant has no property interest whatsoever in the Letter of Credit; and (4) if Tenant becomes a debtor under any chapter of the Bankruptcy Code, neither Tenant, any trustee, nor Tenant’s bankruptcy estate shall have any right to restrict or limit Landlord’s claim or rights to the Letter of Credit by application of Section 502(b)(6) of the U.S. Bankruptcy Code or otherwise. In addition, Landlord, or its then managing agent, shall have the right to draw down an amount up to the face full outstanding amount of the Letter of Credit and/or the then-applicable Continuation Letter of Credit (as the case may be). Additionally, Landlord shall be entitled to draw upon the Letter of Credit and/or any Continuation Letter of Credit (as the case may be) to fund the performance of any obligation(s) of Tenant under this Lease if Tenant is in default in the performance of such obligation(s) beyond the expiration of any applicable notice and cure period (if any) set forth in the Lease. The issuing bank shall be required (up to the face amount(s) of the following Letter of Credit and/or any applicable Continuation Letter of Credit) to disburse amounts to Landlord under the Letter of Credit and/or the applicable Continuation Letter of Credit (as the case may be) based solely on the written statement of Landlord (i) certifying that Tenant is in default in the performance of its obligation(s) under this Lease beyond the expiration of any applicable notice and cure period (if any) set forth in this Lease and (ii) certifying the amount due to Landlord as a result of such uncured default(s) (which shall have occurred or be applicable:the amount payable, up to an aggregate ceiling amount equal to the face amount(s) of the Letter of Credit and/or any applicable Continuation Letter of Credit (as the case may be), to Landlord under such instrument). Xxxxxxxx agrees to promptly provide Tenant with a copy of any such written statement Landlord provides to the issuing bank pursuant to the immediately preceding sentence.

Draws. Tenant acknowledges and agrees that Landlord is entering into this Lease in material reliance on the ability of Landlord to may draw on under the Letter of Credit on upon the occurrence of an Event of Default hereunder. Any such draw shall not cure an Event of Default. Landlord shall have the right, but not the obligation, to apply all or any breach, default portion of the proceeds from the Letter of Credit to pay all or failure to perform on the part any portion of [i] all Rent and other charges and expenses payable by Tenant under this Lease. If Tenant shall breach ; plus [ii] all expenses and costs incurred by Landlord in enforcing or fail to perform any provision of preserving Landlord's rights under this Lease or otherwise be in default under this Lease, Landlord may, but without obligation to do so, and without notice to Tenant, draw on any security for the Letter of Credit, in part or in whole, to cure any breach or default of Tenant and to compensate Landlord for any and all damages of any kind or nature sustained or which Landlord reasonably estimates that it will sustain resulting from Tenant’s breach or default and to which Landlord is entitled under this Lease, including without limitation, [a] the fees, expenses, and costs of any damages that accrue upon termination of the Lease under the Lease and/or Section 1951.2 of the California Civil Code or any similar provision. The uselitigation, applicationreceivership, administrative, bankruptcy, insolvency, or retention other similar proceeding; [b] attorney, paralegal, consulting and witness fees and disbursements; and [c] the expenses, including without limitation, lodging, meals and transportation of any proceeds of the Letter of CreditLandlord and its employees, agents, attorneys, and witnesses in preparing for litigation, administrative, bankruptcy, insolvency, or any portion of itsimilar proceedings and attendance at hearings, by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by any applicable law, it being intended that Landlord shall not first be required to proceed against the Letter of Creditdepositions, and shall not operate as a limitation on any recovery trials in connection therewith. With respect to which Landlord may otherwise be entitled. Tenant agrees not to interfere in any way with payment to Landlord of the proceeds of the Letter of Credit, following a draw properly made by Landlord of any portion of the Letter of Credit. No condition Credit proceeds that is not applied to payment of Tenant's Obligations, Landlord shall have the option to either [i] deposit the proceeds into an interest-bearing account with a financial institution chosen by Landlord ("LC Account"); or term [ii] require Tenant to obtain a replacement Letter of this Lease shall be deemed Credit satisfactory to render Landlord, with the Letter of Credit conditional proceeds made available to justify the issuer of the Letter of Credit in failing Tenant to honor a drawing on such Letter of Credit in a timely manner. Tenant agrees and acknowledges that (1) the Letter of Credit constitutes a separate and independent contract between Landlord and the Bank; (2) Tenant is not a third party beneficiary of such contract; (3) Tenant has no property interest whatsoever in secure Tenant's reimbursement obligation for the Letter of Credit; . All interest accruing on the LC Account shall be paid to Landlord and (4) if Tenant becomes a debtor under may, from time to time, be withdrawn from the LC Account by Landlord. At any chapter time and from time to time until Tenant's Obligations are performed in full, Landlord may apply all or any portion of the Bankruptcy Codefunds held in the LC Account to payment of all or any portion of Tenant's Obligations. Within 10 days after any such payment from the LC Account, neither Tenant, any trustee, nor Tenant’s bankruptcy estate Landlord shall have any right give written notice to restrict or limit Landlord’s claim or rights to Tenant describing the Letter of Credit by application of Section 502(b)(6) of the U.S. Bankruptcy Code or otherwise. In addition, Landlord, or its then managing agent, shall have the right to draw down an amount up to the face amount of the Letter of Credit if any of the following shall have occurred or be applicable:such payment and how it was applied to Tenant's Obligations.

Draws. If, at any time when Landlord shall be holding the Security Deposit, Tenant acknowledges defaults in the full and agrees that Landlord is entering into prompt payment and performance of any of Tenant’s covenants and obligations under this Lease beyond the expiration of all applicable notice and cure periods (except that where Landlord shall be prohibited by law from giving a notice of default or other notice to Tenant, Landlord shall not be required to give any notice in material reliance on the ability of Landlord order to draw on the Letter of Credit on Credit), including, but not limited to, the occurrence payment of any breach, default or failure to perform on the part of Tenant under this Lease. If Tenant shall breach or fail to perform any provision of this Lease or otherwise be in default under this LeaseBase Rent and Additional Rent, Landlord may, but without obligation to do so, and without notice to Tenantshall not be required to, draw on the Letter of Credit, in part or in whole, to cure any breach or default of Tenant and to compensate Landlord for any and all damages of any kind or nature sustained or which Landlord reasonably estimates that it will sustain resulting from Tenant’s breach or default and to which Landlord is entitled under this Lease, including any damages that accrue upon termination of the Lease under the Lease and/or Section 1951.2 of the California Civil Code entire amount or any similar provision. The use, application, or retention of any proceeds portion of the Letter of CreditCredit and use, apply or retain the whole or any portion part of it, by such proceeds or the whole or any part of any cash security deposit Landlord shall not prevent Landlord from exercising is holding to the extent required for the payment of any Base Rent and Additional Rent or any other right sums as to which Tenant is in default or remedy provided by this Lease for any sum which Landlord may expend or by any applicable law, it being intended that Landlord shall not first may be required to proceed against expend by reason of Tenant’s default in respect of any of the Letter terms, covenants and conditions of Creditthis Lease, and shall including, but not operate as a limitation on limited to, any recovery to which damages or deficiency in the re-letting of the Premises, whether such damages or deficiency accrue before or after summary proceedings or other re-entry by Landlord. If Landlord may otherwise be entitled. Tenant agrees not to interfere in applies or retains any way with payment to Landlord portion or all of the proceeds of the Letter of Credit, following a draw properly made Tenant shall within five (5) Business Days after demand restore the amount so applied or retained by Landlord of any portion of the Letter of Credit. No condition delivering an additional or term of this Lease shall be deemed to render the new Letter of Credit conditional to justify so that, at all times, the issuer amount of the Security Deposit shall be not less than the amount set forth in Section 29.01 hereof, failing which Landlord shall have the same rights and remedies as for an Event of Default, unless Landlord is prohibited by law from giving such notice, in which event, Tenant shall restore the amount applied or retained without notice from Landlord. Provided there is no uncured default, any balance of the proceeds of the Letter of Credit in failing to honor a drawing on such Letter of Credit in a timely manner. Tenant agrees and acknowledges that (1) the Letter of Credit constitutes a separate and independent contract between held by Landlord and the Bank; (2not used, applied or retained by Landlord as above provided, and any remaining Letter(s) Tenant is not a third party beneficiary of such contract; (3) Tenant has no property interest whatsoever in the Letter of Credit; , shall be returned to Tenant after the Expiration Date and (4) if Tenant becomes a debtor under any chapter after delivery of possession of the Bankruptcy Code, neither Tenant, any trustee, nor Tenant’s bankruptcy estate shall have any right entire Premises to restrict or limit Landlord’s claim or rights to Landlord in accordance with the Letter terms of Credit by application of Section 502(b)(6) of the U.S. Bankruptcy Code or otherwise. In addition, Landlord, or its then managing agent, shall have the right to draw down an amount up to the face amount of the Letter of Credit if any of the following shall have occurred or be applicable:this Lease.

Draws. Landlord shall have the right to draw down an amount up to the face amount of the Letter of Credit if any of the following shall have occurred or be applicable: (1) such amount is unpaid and due to Landlord under the terms and conditions of this Lease; or (2) Bank has notified Landlord that the Letter of Credit will not be renewed or extended through the LC Expiration Date and Tenant has not provided a replacement Letter of Credit acceptable to Landlord at least thirty (30) days before such LC Expiration Date; or (3) there exists an event of default under this Lease (that is continuing beyond the applicable notice and cure period); or (4) Tenant has filed a voluntary petition under any chapter of the U.S. Bankruptcy Code or any similar state law (collectively, Bankruptcy Code) that is not dismissed within thirty (30) days of such filing; or (5) Tenant has assigned all of its assets to creditors in accordance with any federal or state laws; or (6) an involuntary petition has been filed against Tenant under any chapter of Bankruptcy Code that is not dismissed within thirty (30) days of such filing. Tenant acknowledges and agrees that Landlord is entering into this Lease in material reliance on the ability of Landlord to draw on the Letter of Credit on the occurrence of any breach, breach or default or failure to perform on the part of Tenant under this LeaseLease that is continuing beyond the applicable notice and cure period. If Tenant shall breach or fail to perform any provision of this Lease or otherwise be in default under this LeaseLease that is continuing beyond the applicable notice and cure period, Landlord may, but without obligation to do so, and without with notice to Tenant, draw on the Letter of Credit, in part or in whole, to cure any breach or default of Tenant and to compensate Landlord for any and all damages of any kind or nature sustained or which Landlord reasonably estimates that it will sustain resulting from Tenant’s breach or default that continue beyond the applicable notice and to which Landlord is entitled under this Leasecure period, including any damages that accrue upon termination of the this Lease under the Lease and/or Section 1951.2 of the pursuant to California Civil Code § 1951.2 or any similar provision. The Landlord’s use, application, or retention of any proceeds of the Letter of Credit, or any portion of it, by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by any applicable lawLaw, it being intended that Landlord shall not first be required to proceed against the Letter of Credit, and shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled. Tenant agrees not to interfere in any way with payment to Landlord of the proceeds of the Letter of Credit, following a draw properly made by Landlord of any portion of the Letter of Credit. No condition or term of this Lease shall be deemed to render the Letter of Credit conditional to justify the issuer of the Letter of Credit in failing to honor a drawing on such Letter of Credit in a timely manner. Tenant agrees and acknowledges that (1) the Letter of Credit constitutes a separate and independent contract between Landlord and the Bank; (2) Tenant is not a third party beneficiary of such contract; (3) Tenant has no property interest whatsoever in the Letter of Credit; and (4) if Tenant becomes a debtor under any chapter of the Bankruptcy Code, neither Tenant, any trustee, nor Tenant’s bankruptcy estate shall have any right to restrict or limit Landlord’s claim or rights to the Letter of Credit by application of Section 502(b)(6) of the U.S. Bankruptcy Code or otherwise. In addition, Landlord, or its then managing agent, shall have the right to draw down an amount up to the face amount of the Letter of Credit if any of the following shall have occurred or be applicable:.

Draws. Tenant acknowledges and agrees that Landlord is entering into this Lease in material reliance on the ability of Landlord to draw on the Letter of Credit on the occurrence of any breach, default or failure to perform on the part of Tenant under as provided in this LeaseArticle 39. If Tenant an Event of Default shall breach or fail to perform any provision of this Lease or otherwise be in default exist under this Lease, Landlord may, but without obligation to do so, and without notice to Tenant, draw on the Letter of Credit, in part or in whole, to cure any breach or default such Event of Tenant Default and to compensate Landlord for any and all damages of any kind or nature sustained or which Landlord reasonably estimates that it will sustain resulting from Tenant’s breach or default and to which such Event of Default; provided, however, that if Landlord is entitled under this Leaseprevented from delivering a notice of default to Tenant for any reason, including any damages that accrue upon termination of the Lease including, without limitation, because Tenant has filed a voluntary petition, or an involuntary petition has been filed against Tenant, under the Lease and/or Section 1951.2 of the California Civil Code or any similar provisionBankruptcy Code, then no such notice and cure period shall be required. The use, application, or retention of any proceeds of the Letter of Credit, or any portion of it, by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by any applicable law, it being intended that Landlord shall not first be required to proceed against the Letter of Credit, and shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled. Tenant agrees not to interfere in any way with payment to Landlord of the proceeds of the Letter of Credit, following Credit before a draw properly made "draw" by Landlord of any portion of the Letter of Credit, regardless of whether any dispute exists between Tenant and Landlord as to Landlord's right to draw on the Letter of Credit; provided, however, that nothing contained in this section shall be deemed to prohibit Tenant from challenging the validity or amount of this draw after the draw occurs. No condition or term of this Lease shall be deemed to render the Letter of Credit conditional to justify the issuer of the Letter of Credit in failing to honor a drawing on such Letter of Credit in a timely manner. Tenant agrees and acknowledges that (1) the Letter of Credit constitutes a separate and independent contract between Landlord and the Bank; (2) Tenant is not a third party beneficiary of such contract; (3) Tenant has no property interest whatsoever in the Letter of CreditCredit or the proceeds of it; and (4) if Tenant becomes a debtor under any chapter of the Bankruptcy Code, neither Tenant, any trustee, nor Tenant’s 's bankruptcy estate shall have any right to restrict or limit Landlord’s 's claim or rights to the Letter of Credit or the proceeds of it by application of Section 502(b)(6) of the U.S. Bankruptcy Code or otherwise. In addition, Landlord, or its then managing agent, shall have the right to draw down an amount up to the face amount of the Letter of Credit if any of the following shall have occurred or be applicable:.

Draws. Tenant acknowledges and agrees that Landlord is entering into this Lease in material reliance on the ability of Landlord to draw on the Letter of Credit on the occurrence of any breach, default or failure to perform on the part of Tenant under this Lease, following notice to Tenant and expiration of the applicable cure period, provided that if Landlord is prevented from delivering a notice of default to Tenant or otherwise declaring a default by Tenant for any reason, including, without limitation, because Tenant has filed a voluntary petition, or an involuntary petition has been filed against Tenant, under the Bankruptcy Code or other insolvency law, then no such notice or declaration of default or cure period shall be required for Landlord to make a draw on the Letter of Credit. If Tenant shall breach or fail to perform any provision of this Lease or otherwise be in default under this Lease, Landlord may, but without obligation to do so, and without notice to Tenant, draw on the Letter of Credit, in part or in whole, to cure any breach or default of Tenant and to compensate Landlord for any and all damages of any kind or nature sustained or which Landlord reasonably estimates that it will sustain resulting from Tenant’s breach or default and to which Landlord is entitled under this Leasedefault, including any damages that accrue upon termination of the Lease under the Lease and/or Section 1951.2 of the California Civil Code or any similar provision. The use, application, or retention of any proceeds of the Letter of Credit, or any portion of it, by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by any applicable federal, state or local law, it being intended that Landlord shall not first be required to proceed against the Letter of Credit, and shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled. Tenant agrees not to interfere in any way with payment to Landlord of the proceeds of the Letter of Credit, following a draw properly made by Landlord of any portion of the Letter of Credit. No condition or term of this Lease shall be deemed to render the Letter of Credit conditional to justify the issuer of the Letter of Credit in failing to honor a drawing on such Letter of Credit in a timely manner. Tenant agrees and acknowledges that (1) the Letter of Credit constitutes a separate and independent contract between Landlord and the Bank; (2) Tenant is not a third party beneficiary of such contract; (3) Tenant has no property interest whatsoever in the Letter of Credit; and (4) if Tenant becomes a debtor under any chapter of the Bankruptcy Code, neither Tenant, any trustee, nor Tenant’s bankruptcy estate shall have any right to restrict or limit Landlord’s claim or rights to the Letter of Credit by application of Section 502(b)(6) of the U.S. Bankruptcy Code or otherwise. In addition, Landlord, or its then managing agent, shall have the right to draw down an amount up to the face amount of the Letter of Credit if any of the following shall have occurred or be applicable:

Draws. Tenant acknowledges and agrees that Landlord is entering into this Lease in material reliance on the ability of Landlord to may draw on under the Letter of Credit on upon the occurrence of an Event of Default hereunder. Any such draw shall not cure an Event of Default. Landlord shall have the right, but not the obligation, to apply all or any breach, default portion of the proceeds from the Letter of Credit to pay all or failure to perform on the part any portion of [i] all Rent and other charges and expenses payable by Tenant under this Lease. If Tenant shall breach ; plus [ii] all expenses and costs incurred by Landlord in enforcing or fail to perform any provision of preserving Landlord's rights under this Lease or otherwise be in default under this Lease, Landlord may, but without obligation to do so, and without notice to Tenant, draw on any security for the Letter of Credit, in part or in whole, to cure any breach or default of Tenant and to compensate Landlord for any and all damages of any kind or nature sustained or which Landlord reasonably estimates that it will sustain resulting from Tenant’s breach or default and to which Landlord is entitled under this Lease, including without limitation, [a] the fees, expenses, and costs of any damages that accrue upon termination of the Lease under the Lease and/or Section 1951.2 of the California Civil Code or any similar provision. The uselitigation, applicationreceivership, administrative, bankruptcy, insolvency, or retention other similar proceeding; [b] attorney, paralegal, consulting and witness fees and disbursements; and [c] the expenses, including without limitation, lodging, meals and transportation of any proceeds of the Letter of CreditLandlord and its employees, agents, attorneys, and witnesses in preparing for litigation, administrative, bankruptcy, insolvency, or any portion of itsimilar proceedings and attendance at hearings, by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by any applicable law, it being intended that Landlord shall not first be required to proceed against the Letter of Creditdepositions, and shall not operate as a limitation on any recovery trials in connection therewith. With respect to which Landlord may otherwise be entitled. Tenant agrees not to interfere in any way with payment to Landlord of the proceeds of the Letter of Credit, following a draw properly made by Landlord of any portion of the Letter of Credit. No condition Credit proceeds that is not applied to payment of the Secured Obligations, Landlord shall have the option to either [i] deposit the proceeds into an interest-bearing account with a financial institution chosen by Landlord ("LC Account"); or term [ii] require Tenant to obtain a replacement Letter of this Lease shall be deemed Credit satisfactory to render Landlord, with the Letter of Credit conditional proceeds made available to justify the issuer of the Letter of Credit in failing Tenant to honor a drawing on such Letter of Credit in a timely manner. Tenant agrees and acknowledges that (1) the Letter of Credit constitutes a separate and independent contract between Landlord and the Bank; (2) Tenant is not a third party beneficiary of such contract; (3) Tenant has no property interest whatsoever in secure Tenant's reimbursement obligation for the Letter of Credit; . All interest accruing on the LC Account shall be paid to Landlord and (4) if Tenant becomes a debtor under may, from time to time, be withdrawn from the LC Account by Landlord. At any chapter time and from time to time until the Secured Obligations are performed in full, Landlord may apply all or any portion of the Bankruptcy Codefunds held in the LC Account to payment of all or any portion of the Secured Obligations. Within 10 days after any such payment from the LC Account, neither Tenant, any trustee, nor Tenant’s bankruptcy estate Landlord shall have any right give written notice to restrict or limit Landlord’s claim or rights Tenant describing the amount of such payment and how it was applied to the Secured Obligations. Upon the occurrence of either [i] Landlord's receipt of a replacement Letter of Credit by application that satisfies the requirements of Section 502(b)(6) 20.1 and is issued by an Issuer acceptable to Landlord; or [ii] the date on which all of the U.S. Bankruptcy Code or otherwise. In additionSecured Obligations are performed in full, Landlord, or its then managing agent, Landlord shall have pay the right to draw down an amount up to the face amount principal balance of the Letter of Credit if LC Account (but not any of the following shall have occurred or be applicable:accrued interest) to Tenant.