Letter of Credit as Security Deposit. Notwithstanding anything to the contrary contained in Article 6 of the Lease, Tenant shall deliver to Landlord within five business days following mutual execution of this Lease, in lieu of a cash security deposit, an irrevocable standby letter of credit naming Landlord as beneficiary, in the amount specified in Section 1.09 (“Letter of Credit”). A major national bank shall issue such Letter of Credit in substance identical to the form attached to the Lease as Exhibit G. Landlord hereby pre-approves Silicon Valley Bank and Comerica Bank as acceptable issuers of the initial Letter of Credit. The Letter of Credit shall allow draws by Landlord upon sight draft submitted to the issuer at its offices either in Seattle, Washington or San Francisco, California accompanied by a statement by Landlord that it is entitled to draw upon the Letter of Credit and shall contain terms which allow Landlord to make partial and multiple draws up to the face amount of the Letter of Credit. If Tenant has not delivered to Landlord at least sixty (60) days prior to the expiration of the original Letter of Credit (or any renewal letter of credit) a renewal or extension thereof, then following Tenant’s failure to do so upon five (5) days notice, Landlord shall have the right to draw down the entire amount of the original Letter of Credit (or renewal thereof) and retain, in a separate, interest-bearing account with interest accruing for the benefit of Tenant, the proceeds thereof as the security pursuant to this Section. The amount of the required Letter of Credit shall be reduced if and when the amount of the Security Deposit is reduced in accordance with Paragraph F below. /s/ SS /s/ EF Landlord’s Initials Tenant’s Initials
Letter of Credit as Security Deposit. Simultaneously with the execution of this Lease, and in lieu of a cash Security Deposit in the amount of $458,496.00, Tenant shall deliver to Landlord (as beneficiary) a standby letter of credit (“Letter of Credit”) in the amount of $466,578.00, attached hereto as Exhibit “I”, in form and content satisfactory to Landlord. Provided that Tenant shall not ever fail to pay any installment of Fixed Rent, Additional Rent or other sum payable by Tenant hereunder when due and such failure continues after written notice given by or on behalf of Landlord to Tenant for more than thirty (30) days after its due date, the Letter of Credit shall be (i) decreased to $150,000.00 after Tenant both (y) reaches Clinical II status and (z) either (A) has secured an additional $14,000,000.00 in funding or (B) has been acquired by a Biotech Affiliated Entity (as defined in Section 14.7 below) who provides substantial creditworthiness consistent with $14,000,000.00 in additional funding and who provides a guaranty of this Lease or otherwise becomes directly liable for this Lease as an assignee; and (ii) decreased to $0.00 after June 30, 2013. If Tenant ever fails to pay any installment of Fixed Rent, Additional Rent or other sum payable by Tenant hereunder when due and such failure continues after written notice given by or on behalf of Landlord to Tenant for more than thirty (30) days after its due date, the Letter of Credit then in effect shall remain in place (without reduction) for the balance of the Lease Term, except that if the Letter of Credit has already been decreased to $0.00, it shall be increased to the equivalent of two (2) months Fixed Rent at the then current rental rate, as set forth on Exhibit “C”. Notwithstanding anything to the contrary above, from and after the date which is thirty (30) days prior to the final expiry date of the initial Letter of Credit provided by Tenant to Landlord (the final expiry date being May 19, 2009), Tenant shall have the option to provide Landlord with a cash Security Deposit in the amount then applicable under this Lease in lieu of providing a replacement Letter of Credit. Landlord shall cooperate with Tenant by returning the cancelled Letter of Credit promptly after receipt of the cash Security Deposit.
Letter of Credit as Security Deposit. Tenant shall deliver to Landlord (as beneficiary) a standby letter of credit ("Letter of Credit") in form and content satisfying the requirements of this Exhibit "L".
Letter of Credit as Security Deposit. As a security deposit, Tenant shall provide a clean, unconditional, irrevocable Letter of Credit in favor of Landlord in the amount of Two Hundred Fifty Thousand and No/100 dollars ($250,000.00) in the form attached as Exhibit E (the "Letter of Credit") issued by and payable at a banking institution reasonably acceptable to Landlord and located in Dade, Broward or Palm Beach County with an A rating or better from S& P ("Acceptable Bank"). The Letter of Credit shall have an expiration date no earlier than September 30, 2007 (the "Expiration Date") or shall be renewed annually through said Expiration Date, in which event Tenant shall submit to Landlord original amendments extending the expiration date or replacement letters of credit with extended expiration dates, on an annual basis no later than the date that is 45 days prior to the expiration date of the Letter of Credit then in effect. Any replacement letter of credit must be issued by an Acceptable Bank. Failure to so extend the expiration date of the Letter of Credit through said Expiration Date in the foregoing manner shall constitute a default under this Lease, entitling Landlord, in addition to all other remedies, to present the Letter of Credit for payment in full upon eight (8) days written notice to Tenant and to hold or apply the proceeds thereof as a Security Deposit for the future performance of the Tenant's obligations. Said Letter of Credit shall decrease annually in the amount of $30,000.00 each year so long as the Tenant is not or has not been in default of any terms of the said Lease Agreement. If at any time during the Lease Term there is any default under the Lease, the Letter of Credit will not be further reduced This Letter of Credit shall also be transferable to any successor of the Landlord's interest in the subject property, the cost and expense of such transfer charged by the issuer of the Letter of Credit, if any, to be paid by Tenant. The parties acknowledge that the amount of the Letter of Credit from time to time shall not be deemed to limit Tenant's liability pursuant to the Lease.
Letter of Credit as Security Deposit. Section 3.3 of the Sublease is deleted in its entirety and the following language is substituted therefor:
Letter of Credit as Security Deposit. Tenant shall deliver to Landlord (as beneficiary), and a copy to Landlord’s attorney, a standby letter of credit in the amount of $1,080,700.00 (subject to reduction as set forth in Section 34 of the Lease) in form and content satisfying the requirements of this Exhibit “G”.
Letter of Credit as Security Deposit. Simultaneously with the execution of this Lease, and in lieu of a cash Security Deposit in the amount of $3,823,990.00, Tenant shall deliver to Landlord (as beneficiary) a Letter of Credit (as hereinbefore defined), a draft of which is attached hereto as Exhibit “I”, in form and content satisfactory to Landlord in the amount of $3,823,990.00. Provided that, at the time of the reduction of the Letter of Credit as set forth below, Tenant is not in default (beyond any applicable grace or cure period) of its obligation to pay any installment of Fixed Rent, Additional Rent or any other sum payable by Tenant hereunder, the Letter of Credit shall be (i) decreased to $3,505,324.17 on the one (1) year anniversary of the Rent Commencement Date, (ii) decreased to $3,186,658.34 on the two (2) year anniversary of the Rent Commencement Date, (iii) decreased to $2,867,992.51 on the three (3) year anniversary of the Rent Commencement Date, (iv) decreased to $2,549,326.68 on the four (4) year anniversary of the Rent Commencement Date, (v) decreased to $2,230,660.85 on the five (5) year anniversary of the Rent Commencement Date, (vi) decreased to $1,911,995.02 on the six (6) year anniversary of the Rent Commencement Date, (vii) decreased to $1,593,329.19 on the seven (7) year anniversary of the Rent Commencement Date, and (viii) decreased to $1,274,663.36 on the eight (8) year anniversary of the Rent Commencement Date, which $1,274,663.36 shall become the new Security Deposit / Letter of Credit required under this Lease for the balance of the Lease Term and any extensions or renewals thereof.
Letter of Credit as Security Deposit. Tenant shall also deliver to Landlord, concurrently with execution of this Lease, and cause to be in effect during the term of this Lease, as a security deposit in lieu of a cash security deposit for the full and faithful performance by Tenant of all of its obligations under this Lease, an irrevocable negotiable letter of credit, in the form and containing the terms required herein, running in favor of Landlord issued by a solvent bank under the supervision of the Superintendent of Banks of the State of California or a National Banking Association in the amount of Four Hundred Thirty Four Thousand Five Hundred Dollars ($434,500) for the initial five (5) years of the Lease Term and thereafter in the amount of Two Hundred Seventeen Thousand Two Hundred Fifty Thousand Dollars ($217,250); unless Tenant is in default under this Lease at the beginning of the sixth year of the Lease, in which case the amount shall remain $434,5000 for the balance of the Lease Term (the "Letter of Credit"). The Letter of Credit is intended to be utilized as a security deposit in the event of Tenant's monetary default and for the performance of Tenant's obligations under this Lease. If Tenant defaults on any provision of this Lease, Landlord may, after notice of breach and opportunity to cure as set forth in Article 22 and without prejudice to any other remedy it has, draw on the Letter of Credit and apply all or part of the Security Deposit to:
Letter of Credit as Security Deposit. Upon execution of this Lease, Tenant shall provide Landlord with a Letter of Credit as the security deposit set forth in Section 1 as security for the performance by Tenant of the provisions of this Lease. Upon a default by Tenant, Landlord shall have the right, without waiver of the default or prejudiced other remedies, to use the security deposit or any portion of it to cure the default or to compensate Landlord for any damages resulting from Xxxxxx's default. Upon demand, Xxxxxx shall immediately pay to Landlord a sum equal to the portion of the security deposit expended or applied by Landlord to maintain the security deposit in the amount required by the following schedule. In no event will Tenant have the right to apply any part of the security deposit to any rent or to other sums due under this Lease. If Tenant is not in default at the expiration or termination of this Lease, Landlord shall return the entire scheduled amount remaining as security. Landlord is not a trustee of the security deposit and Landlord can commingle the security deposit with Landlord's general funds. Landlord shall not be required to pay Tenant interest on the deposit. If Landlord sells its interest in the Premises during the term hereof and deposits with or credits to the purchase the unapplied portion of the security deposit, Landlord shall be discharged from liability with respect to the security deposit. If Tenant is not in default of the Lease, increments of the Letter of Credit security deposit shall be released at Tenant's request in accordance with the following schedule. Letter of Credit Security Deposit Schedule ------------------------------------------ . Due upon lease execution: $ 26,842 . Deposit level required from April 1, 1997 through February 28, 1998: $ 26,842 . Deposit level required from March, 1998 through February 28, 1999: $ 22,584 . Deposit level required from March 1999 through February 29, 2000: $ 18,326 . Deposit level required from March 2000 through February 28, 2001: $ 13,856 . Deposit level required from March 2001 through February 28, 2002: $ 9,386 . Remaining final security deposit: $ 4,693 EXHIBIT A [MAP OF CREEKSIDE SIX APPEARS HERE] THE PREMISES (Cross-hatched area) EXHIBIT B [MAP OF CREEKSIDE CORPORATE PARK APPEARS HERE] THE PROJECT (CROSS-HATCHED AREA) EXHIBIT C STANDARDS FOR UTILITIES AND SERVICES The following Standards for Utilities and Services are in effect. Landlord reserves the right to adopt nondiscriminatory modifications and add...
Letter of Credit as Security Deposit. Prior to the Commencement Date of this Amendment, Tenant shall deposit to Landlord (i) a revised letter of credit in the amount of $463,545.45 inclusive of the Expansion Premises, or (ii) a letter of credit in the amount of $155,706.34, which shall be separate and in addition to the letter of credit in the amount of $307,839.11 for the premises located at 940 Auburn Court in Fremont, California. Said letter of credit shall xx xx xxx xxxx of an irrevocable, unconditional and clean standby letter of credit and otherwise in the form set forth below (the "Letter of Credit"). The term Security Deposit shall mean the cash portion of the Security Deposit and the Letter of Credit,
