Common use of Equipment Financing Clause in Contracts

Equipment Financing. Tenant shall have the right from time to time to pledge, encumber or grant a security interest in its equipment, inventory, merchandise, trade fixtures and personal property, but not any equipment, fixtures or leasehold improvements or alterations which belong to, inure to the benefit of, or will belong to Landlord after the expiration or earlier termination of the Lease including any Tenant Alterations (collectively, the “Collateral”) in connection with financing or refinancing thereon by Tenant. Landlord will promptly execute following written request a waiver or release of lien rights and consent instrument in form and content reasonably acceptable to Landlord; provided, however, that any such instrument shall describe the Collateral with particularity and provide that (a) any entry into the Premises by such secured party may only be accomplished by prior written notice to Landlord and Landlord’s property manager and must occur during the Term of this Lease, (b) any secured property which remains in the Premises after the expiration or earlier termination of this Lease may be disposed of by Landlord in accordance with California law, (c) the secured party may not conduct an auction or other sale at the Premises, (d) prior to entering the Premises, such secured party must provide Landlord with evidence of insurance reasonably required by Landlord, must agree to act in a manner so as to minimize interference with other tenants and to comply with Landlord’s Rules and Regulations for the Project.