Common use of Securities and Guarantees Clause in Contracts

Securities and Guarantees. 17.1 To ensure the fulfillment of all of the Lessee’s undertakings subject to this Agreement, the Lessee will deliver to the Lessor at the time of signing this Agreement a financial bank guarantee, autonomous and unconditional, from an Israeli bank to the order of the Lessor according to the guarantee wording attached to this Agreement as Annex E, and thus in an amount equal to the Basic Lease Fees for 3 (three) lease months [calculated according to the lease price for the entire area (as of January 1, 2014)] plus VAT (NIS 813,152 including VAT). The guarantee will be linked to the Consumer Price Index as of the date of its issue, and it will be in effect for 12 months as of the date of its issue. No later than 14 days before the beginning of each lease year, but no later than 14 days before the expiration of the guarantee, as the case may be, the guarantee will be extended for an additional year until the end of the Lease Period or the Opinion Period, as the case may be, plus 90 additional days after the end of the Lease or Option Period, as the case may be. 17.2 For the removal of doubt the parties agree that the extension of the guarantee’s validity on the dates specified above is one of the Lessee’s material undertakings subject to this Agreement, and if the guarantee is exercised by the Lessor, the Lessee will be required to provide to the Lessor a new guarantee in lieu of the guarantee exercised as aforementioned within 10 days from the date of receiving notice regarding the exercise of the guarantee. 17.3 At the end of the Lease Period and upon delivering the Leased Property to the Lessor, the Lessee will be required to provide to the Lessor confirmations regarding the clearing of all payments applicable thereto, which were paid thereby until the date of vacating the Leased Property and its return to the Lessor and/or with regard to the Lease Period. 17.4 All securities given to the Lessor subject to this Agreement, including the bank guarantee, shall be returned to the Lessee within 60 days from the end of the Lease Period or the Option Period as the case may be, subject to the fulfillment of the Lessee’s undertakings subject to this Agreement.