SanDisk 2004 Annual Report Download - page 133

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Exhibit 10.37
[execution copy]
Guarantee Agreement
December 24, 2004
SanDisk Corporation
Mitsui Leasing & Development, Ltd.
Guarantee Agreement
SanDisk Corporation (the “Guarantor”) and Mitsui Leasing & Development, Ltd. (the “Lessor”) hereby enter into this guarantee
agreement (the “Agreement”) with respect to the Master Lease Agreement dated December 24, 2004 and individual agreements
thereunder (collectively the “Lease Agreement”) by and between the Lessor and IBJ Leasing Co., Ltd. and Sumisho Lease Co., Ltd.
(the “Other Lessors”) and Flash Partners Yugen Kaisha (the “Lessee”).
Unless as otherwise specified in this Agreement, the words defined in the Lease Agreement shall have the same meaning in this
Agreement.
Article 1. (Guarantee)
The Guarantor shall guarantee the performance, from time to time, of the obligations subject to the guarantee below (the
“Guaranteed Obligation”) to the Lessor, jointly and severally with the Lessee (the “Guarantee”).
(Guaranteed Obligation)
Guaranteed Obligation shall mean payment obligations of lease (lease−ryo), stipulated loss payment (kitei−songaikin), purchase
option exercise price (konyu−sentakuken−koshikagaku), terminal rentarl adjustment amount (henkanji−choseikin), break funding
cost, late charges (chien−songaikin), and any and all payment obligations of other amounts concerning SD Tranche I and SD Tranche
II in individual transactions pursuant to the Lease Agreement; provided that the Guarantor and the Lessor may consult in the event of
any doubt concerning “other amounts” as mentioned above.
In any event, the Guarantor shall not pay any obligation concerning Toshiba Tranche 1 and Toshiba Tranche 2.
Article 2. (Period of Request for the Performance of Guarantee Obligation)
In the event the Lessor requests the performance of the Guarantee to the Guarantor, the Lessor shall make a written demand to the
Guarantor requesting the performance of the Guaranteed Obligation which the Lessee fails to duly and punctually perform. The Lessor
may, upon each failure of due and punctual performance of the Guaranteed Obligation, make a request pursuant to this Article;
provided that the delay in making such request will not exempt the Guarantor from the obligations under the Guarantee.
Article 3. (Performance of Guaranteed Obligation)
3.1 The Guarantor shall, in the event the Lessee fails to perform all or any part of its obligations under the Guaranteed Obligation
within 10 business days from each due date, perform the Guarantee in favor of the Lessor within 20 business days from the
receipt of the written demand from the Lessor.
3.2 If there is any Guaranteed Obligation in the event of a termination event (kaijo−jiyu) under the Lease Agreement, the Guarantor
shall perform the Guarantee within 20 business days from the arrival of the written demand from the Lessor.