Rreef America Reit II Corp, YYYY v. Samsara, Inc.

I. BACKGROUND

A. The Parties’ Lease Agreement and the Letter of Credit In March 2019, Samsara entered a lease agreement with Rreef to rent office space in San Francisco. The lease provided for a ten-year term, commencing on “the date on which Landlord tenders possession . . . in a

2 condition sufficient to allow Tenant to commence performing the Initial Alterations . . . .” Samsara agreed to pay rent in monthly installments beginning at $843,341.67 and increasing annually. The lease further provided that if Rreef did not deliver the premises in “delivery condition” on or before November 1, 2019, Samsara had the option of terminating the lease by providing written notice to Rreef. Samsara would also be entitled to a rent abatement of $56,222.78 per day until the delivery date occurred. The lease required Samsara to provide Rreef with a letter of credit in the amount of $11,384,368.00. The letter of credit was to serve as “collateral for the full performance by Tenant of all of its obligations under this Lease and for all losses and damages Landlord may suffer as a result of Tenant’s failure to comply with one or more provisions of this Lease.” Samsara’s bank issued the letter of…