Reduction in Letter of Credit Amount. Notwithstanding the foregoing provisions of this Section 4 to the contrary, if, as of each anniversary of the Commencement Date (each a “Reduction Date”) the Reduction Conditions (defined below) are met, then, upon written request by Subtenant (and provided that the Reduction Conditions remain satisfied as of the date of Subtenant’s delivery of such written request to Sublandlord), the Letter of Credit may be reduced by an amount equal to $836,802.20 as of the later of (x) each such Reduction Date and (y) the date of delivery of Tenant’s request for such a reduction; provided, however, that in no event will the Letter of Credit Amount be reduced below $2,510,462.64. Any such reduction may be accomplished, at Subtenant’s option, by either (i) Subtenant delivering to Sublandlord an amendment to the then-existing Letter of Credit pursuant to which the Letter of Credit Amount is appropriately reduced, such amendment to be in form and substance reasonably satisfactory to Sublandlord, or (ii) by Subtenant’s delivery to Sublandlord of a Replacement Letter of Credit in the appropriately reduced Letter of Credit Amount (in which event, Sublandlord agrees to promptly agree to execute such documentation as may be required by the Issuing Bank to cause the termination of the previously held Letter of Credit). As used herein, the “Reduction Conditions” shall mean that (A) Subtenant is not in default hereunder (after notice and the passage of any applicable cure period) and (B) Subtenant has not previously been in default hereunder (similarly defined) and (C) no notice of default from Sublandlord to Subtenant is then outstanding (regardless of whether the applicable cure period has expired).
Reduction in Letter of Credit Amount. Provided that, during the12 month period immediately preceding the effective date of any reduction of the Letter of Credit, Tenant has timely paid all Rent and no default has occurred under this Lease which remains uncured following any applicable cure period (the “LC Reduction Conditions”), Tenant may reduce the Letter of Credit Amount so that the reduced Letter of Credit Amounts will be as follows: (a) $75,000.00 effective as of July 1, 2006; and (b) $50,000.00 effective as of July 1, 2007. If Tenant is not entitled to reduce the Letter of Credit Amount as of a particular reduction effective date due to Tenant’s failure to satisfy the LC Reduction Conditions described above, then any subsequent reduction(s) Tenant is entitled to hereunder shall be reduced by the amount of the reduction Tenant would have been entitled to had Tenant satisfied the LC Reduction Conditions necessary for such earlier reduction. Notwithstanding anything to the contrary contained herein, if Tenant has been in default under this Lease at any time prior to the effective date of any reduction of the Letter of Credit Amount and Tenant has failed to cure such default within any applicable cure period, then Tenant shall have no further right to reduce the Letter of Credit Amount as described herein. Any reduction in the Letter of Credit Amount shall be accomplished by Tenant providing Landlord with a substitute letter of credit in the reduced amount or an amendment to the existing Letter of Credit reflecting the reduced amount.
Reduction in Letter of Credit Amount. Subject to the provisions of this Section 5(f) and provided that Tenant has not been in default or breach of any provision of the Lease beyond any applicable cure periods at any time prior to an applicable Reduction Date (defined below), then Tenant shall be entitled to reduce the Letter of Credit Amount effective May 1, 2005 and on each anniversary thereafter during the Lease Term (individually, a “Reduction Date” and collectively, the “Reduction Dates”) as follows: On May 1, 2005, Tenant shall be entitled to reduce the Letter of Credit Amount by an amount equal to One Hundred Fifty Five Thousand Six Hundred Fifty Four and 70/100ths Dollars ($155,654.70). On each Reduction Date thereafter, Tenant shall be entitled to reduce the Letter of Credit Amount by an amount equal to One Hundred Thousand and No/Dollars ($100,000.00) until the Letter of Credit Amount is extinguished; provided, however, that in all events, Tenant shall have achieved minimum annual EBITDA (as such term is commonly understood in the accounting business) of Twenty Million Dollars ($20,000,000) as reported in Tenant’s most recent annual report, or annual audited financial statements if no such report is issued (the “Earnings Standard”). For example, if Tenant has met the Earnings Standard and has not been in default or breach of any provision of this Lease beyond any applicable cure periods at any time prior to the Reduction Date occurring on April 30, 2005, and Tenant duly and timely pays the Base Rent and additional rent that is due and payable on May 1, 2005, Tenant would be entitled to reduce the Letter of Credit Amount by One Hundred Fifty Five Thousand Six Hundred Fifty Four and 70/100ths Dollars ($155,654.70) to Three Hundred Forty Four Thousand Three Hundred Forty Five and 30/100ths Dollars ($344,345.30) effective as of Mayl 1, 2005; provided, however, as provided in Paragraph 6 below, if the Tenant installs the Interior Stairwell described in Paragraph 6 below, the Letter of Credit shall in no event be reduced below One Hundred Thousand Dollars ($100,000.00). If Tenant is eligible for a Letter of Credit reduction on a Reduction Date, Landlord shall execute any documents reasonably requested by Tenant and the issuing bank to effectuate the applicable release of the Letter of Credit, within fifteen (15) days after Tenant submits such documents to Landlord for execution provided Tenant is not in default under this Lease.
Reduction in Letter of Credit Amount. Provided that no Default exists or has previously occurred, Tenant may reduce the Letter of Credit Amount so that the reduced Letter of Credit Amount becomes $238,675.80 effective as of the third (P) anniversary of the Commencement Date. Any such reduction in the Letter of Credit Amount shall be accomplished by Tenant’s delivery to Landlord of a substitute letter of credit in the reduced amount or an amendment to the existing Letter of Credit reflecting the reduced amount.
Reduction in Letter of Credit Amount. Tenant shall have the right to reduce the amount of the Letter of Credit so that the reduced Letter of Credit Amount will be $142,099.20 effective as of the first day of the thirty-sixth (36th) full calendar month following the Commencement Date. Notwithstanding anything to the contrary contained herein, if Tenant has been in default under this Lease at any time prior to the effective date of any reduction of the Security Deposit and Tenant has failed to cure such default within any applicable cure period, then Tenant shall have no right to reduce the amount of the Letter of Credit as described herein. Any reduction in the Letter of Credit shall be accomplished by Tenant providing Landlord with a substitute Letter of Credit in full compliance with the terms of this Paragraph 8.3 and in the reduced amount.
Reduction in Letter of Credit Amount. Provided that Subtenant is not in default (beyond all applicable notice and cure periods) at the time of such request, the Letter of Credit Amount may be reduced as follows: (i) to Seven Hundred Thirty-Seven Thousand Six Hundred Forty-Five AND 76/100 Dollars ($737,645.76), at any time after December 31, 2017; and (ii) to Three Hundred Sixty-Eight Thousand Eight Hundred Twenty-Two AND 88/100 Dollars ($368,822.88), at any time after December 31, 2019. Any reduction in the Letter of Credit Amount shall be accomplished by Subtenant providing Sublandlord with a substitute letter of credit or amendment thereto in the reduced amount. In no event shall the Letter of Credit Amount be reduced below Three Hundred Sixty-Eight Thousand Eight Hundred Twenty-Two AND 88/100 Dollars ($368,822.88) during the Term.
Reduction in Letter of Credit Amount. To the extent that (i) Tenant is not in material non-monetary or monetary default under the Lease, as amended, as of the Reduction Date (defined below), (ii) has not been in material non-monetary or monetary default, beyond all cure periods, as provided for under the terms of the Lease, as amended, during the twelve (12) month period prior to the Reduction Date, and (iii) Tenant has achieved an EBITDA margin of 15% in any consecutive twelve (12) month period during the Expansion Term, then the Letter of Credit Amount shall be reduced by fifty percent (50%) on the first day following the expiration of any such twelve (12) month period (the "Reduction Date"). To the extent that Tenant has satisfied the terms of the foregoing items (i) through (iii), then Tenant shall have the right to reduce the Letter of Credit Amount as set forth above via the delivery to Landlord of either (x) an amendment to the existing Letter of Credit (in form and content reasonably acceptable to Landlord) modifying the Letter of Credit Amount to the amount then required under this Section 8.6, or (y) an entirely new Letter of Credit (in the form and content otherwise required in this Section 8) in the total Letter of Credit Amount then required under this Section 8.6.
Reduction in Letter of Credit Amount. The amount of the Letter of Credit may be reduced by Tenant from 5% of the Maximum Lease Amount to 2.5% of the Maximum Lease Amount after all of the following conditions have been met: [i] the Earnout Conditions have been satisfied; and [ii] no Event of Default has occurred and is continuing under this Lease.
Reduction in Letter of Credit Amount. Provided that the Reduction Conditions (defined below) are satisfied as of the later to occur of a Reduction Date (defined below) and the date of Tenant’s applicable reduction request, upon written request by Tenant, the face amount of the Letter of Credit may be reduced as follows: (i) by $1,363,054.25 (i.e., to $2,726,108.51) as of the first Reduction Date; and
Reduction in Letter of Credit Amount. From and after the Expansion Date, Section 10(f) of the Original Lease shall be deemed deleted and replaced with the following: Provided that Tenant has not previously been in Default prior to the effective date of the applicable reduction request and further provided that Tenant is not in Default at the time of such request, upon written request by Tenant, the face amount of the Letter of Credit (as increased pursuant to Section 4(a) above) may be reduced, at each anniversary of the Expansion Date, by an amount equal to two hundred fifty thousand dollars ($250,000.00); provided, however, that in no event will the Letter of Credit Amount be reduced below one million two hundred fifty thousand dollars ($1,250,000.00).
