EXPIRES (EVEN IF SUCH SCHEDULED EXPIRY DATE IS
AFTER THE TERM EXPIRATION DATE) TENANT HAS NOT DELIVERED TO LANDLORD AN
AMENDMENT OR REPLACEMENT FOR SUCH L/C SECURITY, REASONABLY SATISFACTORY TO
LANDLORD, EXTENDING THE EXPIRY DATE TO THE EARLIER OF (1) THE DATE TWO (2)
MONTHS AFTER THE THEN-CURRENT TERM EXPIRATION DATE OR (2) THE DATE ONE YEAR
AFTER THE THEN-CURRENT EXPIRY DATE OF THE L/C SECURITY; (III) THE L/C SECURITY
PROVIDES FOR AUTOMATIC RENEWALS, LANDLORD ASKS THE ISSUER TO CONFIRM THE CURRENT
L/C SECURITY EXPIRY DATE, AND THE ISSUER FAILS TO DO SO WITHIN TEN (10) BUSINESS
DAYS; (IV) TENANT FAILS TO PAY (WHEN AND AS LANDLORD REASONABLY REQUIRES) ANY
BANK CHARGES FOR LANDLORD'S TRANSFER OF THE L/C SECURITY; (V) THE ISSUER OF THE
L/C SECURITY CEASES, OR ANNOUNCES THAT IT WILL CEASE, TO MAINTAIN AN OFFICE
WITHIN SAN DIEGO COUNTY WHERE LANDLORD MAY PRESENT DRAFTS UNDER THE L/C
SECURITY; OR (VI) UPON THE EXPIRATION OR EARLIER TERMINATION OF THIS LEASE, THE
CONDITIONS SET FORTH IN SECTION 8.4 HAVE NOT BEEN SATISFIED, AND THE L/C
SECURITY EXPIRES IN LESS THAN THIRTY (30) DAYS.
THIS PARAGRAPH DOES NOT LIMIT
ANY OTHER PROVISIONS OF THIS LEASE ALLOWING LANDLORD TO DRAW THE L/C SECURITY
UNDER SPECIFIED CIRCUMSTANCES.
(D)
TENANT SHALL NOT SEEK TO ENJOIN, PREVENT, OR
OTHERWISE INTERFERE WITH LANDLORD'S DRAW UNDER L/C SECURITY, EVEN IF IT VIOLATES
THIS LEASE.
TENANT ACKNOWLEDGES THAT THE ONLY EFFECT OF A WRONGFUL DRAW WOULD
BE TO SUBSTITUTE A CASH SECURITY DEPOSIT FOR L/C SECURITY, CAUSING TENANT NO
LEGALLY RECOGNIZABLE DAMAGE.
LANDLORD SHALL HOLD THE PROCEEDS OF ANY DRAW IN
THE SAME MANNER AND FOR THE SAME PURPOSES AS A CASH SECURITY DEPOSIT.
IN THE
EVENT OF A WRONGFUL DRAW, THE PARTIES SHALL COOPERATE TO ALLOW TENANT TO POST
REPLACEMENT L/C SECURITY SIMULTANEOUSLY WITH THE RETURN TO TENANT OF THE
WRONGFULLY DRAWN SUMS, AND LANDLORD SHALL UPON REQUEST CONFIRM IN WRITING TO THE
ISSUER OF THE L/C SECURITY THAT LANDLORD'S DRAW WAS ERRONEOUS.
(E)
IF LANDLORD TRANSFERS ITS INTEREST IN THE PREMISES,
THEN TENANT SHALL AT TENANT'S EXPENSE, WITHIN FIFTEEN (15) BUSINESS DAYS AFTER
RECEIVING A WRITTEN REQUEST FROM LANDLORD, DELIVER (AND, IF THE ISSUER REQUIRES,
LANDLORD SHALL CONSENT TO) AN AMENDMENT TO THE L/C SECURITY NAMING LANDLORD'S
GRANTEE AS SUBSTITUTE BENEFICIARY.
IF THE REQUIRED SECURITY CHANGES WHILE L/C
SECURITY IS IN FORCE, THEN TENANT SHALL DELIVER (AND, IF THE ISSUER REQUIRES,
LANDLORD SHALL CONSENT TO) A CORRESPONDING AMENDMENT TO THE L/C SECURITY.
(F)
NOTWITHSTANDING AN ELECTION BY TENANT DURING THE
TERM TO SUBSTITUTE A CASH SECURITY DEPOSIT FOR L/C SECURITY, TENANT SHALL
NEVERTHELESS HAVE THE RIGHT TO REPLACE THE
6
L/C SECURITY WITH A CASH SECURITY DEPOSIT, AT TENANT'S SOLE COST AND EXPENSE.
IF TENANT DELIVERS THE CASH SECURITY DEPOSIT TO LANDLORD IN PLACE OF THE L/C
SECURITY, LANDLORD SHALL PROMPTLY CANCEL OR SURRENDER THE L/C SECURITY.
TENANT
MAY EFFECT SUCH SUBSTITUTIONS ON MULTIPLE OCCASIONS DURING THE TERM, PROVIDED
TENANT SHALL NOT EFFECT SUCH SUBSTITUTIONS MORE THAN TWICE IN ANY CALENDAR YEAR.
9.
Use.
9.1.