Common use of Reduction in Letter of Credit Amount Clause in Contracts

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. Subject to the provisions of this Section 5(f) 6.6 and provided that Tenant has is not been then in actual default or breach of any provision of the this Lease beyond any the applicable notice and cure periods period, and provided that no event of Default (as defined in Article 22 of this Lease) has occurred at any time prior to an applicable the Termination Date (defined below) or a 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, 2005applicable, Tenant shall be entitled to reduce the Letter of Credit Amount by an amount equal as provided below. If Tenant is not then in actual default of any provision of this Lease beyond the applicable notice and cure period, and provided that no event of Default (as defined in Article 22 of this Lease) has occurred at any time prior to One Hundred Fifty Five Thousand Six Hundred Fifty Four and 70/100ths Dollars ($155,654.70). On each the applicable “Reduction Date thereafterDate” in question, Tenant shall then be entitled to reduce the Letter of Credit Amount by the following amounts at the following times: (i) Two Hundred Fifty Thousand and No/100 Dollars ($250,000.000) effective as of the Effective Date (the “First Reduction Date”); (ii) by an amount equal to One additional Two Hundred Thousand and No/No/100 Dollars ($100,000.00200,000.00) until effective as of the first day of the twenty-five (25th) full calendar month of the Expansion Space Term (the “Second Reduction Date”), and (iii) by an additional Two Hundred Thousand and No/100 Dollars ($200,000.00) effective as of the first day of the forty-ninth (49th) full calendar month of the Expansion Space Term (the “Third Reduction Date”).” Notwithstanding any provision of the Lease to the contrary, the parties hereby acknowledge and agree the Landlord is currently holding a cash security deposit in the amount of One Million Dollars ($1,000.000.00) that Tenant, with the consent of Landlord, delivered to Landlord in-lieu of delivering to Landlord the original Letter of Credit Amount is extinguished; provided(the “Cash Security Deposit”). The Cash Security Deposit has been held by Landlord as security for the full and faithful performance by Tenant of all of the terms, covenants and conditions of the Amended Lease to be performed by Tenant. Landlord and Tenant hereby agree, however, that in all eventsconcurrently with the execution of this Amendment, 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 deliver 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 Landlord a new Letter of Credit Amount by One Hundred Fifty Five Thousand Six Hundred Fifty Four in the amount of $750,000.00, 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 CreditLandlord, within fifteen three (153) business days after Tenant submits such documents of its receipt thereof, shall return the entire Cash Security Deposit to Landlord for execution provided Tenant is not in default under this LeaseTenant.

Reduction in Letter of Credit Amount. Subject to the provisions of this Section 5(f) Paragraph 2(c)(ii)(F), Tenant shall be entitled to cancel or reduce the Letter of Credit as provided below. If Tenant is not then in actual default of any provision of this Lease beyond the applicable notice and cure period, and provided that Tenant has not been in monetary default or breach of any provision of the Lease material non-monetary default beyond any applicable notice and cure periods at any time prior to an the applicable Reduction Date (as defined below), then Tenant shall then be entitled to reduce the Letter of Credit Amount effective May 1commencing as of the twenty-fifth (25th) month of the Initial Term, 2005 and thereafter on each anniversary thereafter during the Lease thirty-seventh (37th) and forty-ninth (49th) months of the Initial Term (individuallyeach, a “Reduction Date” and collectively”), by one-fourth (1/4th) of the “Reduction Dates”) as follows: On May 1, 2005, Tenant shall be entitled to reduce the initial Letter of Credit Amount by an amount equal to One Hundred Fifty Five Thousand Six Hundred Fifty Four and 70/100ths Dollars Amount, such that there shall remain at all times during the Lease Term, at least one-fourth ($155,654.70). On each Reduction Date thereafter, Tenant shall be entitled to reduce 1/4th) of the initial Letter of Credit Amount by an amount equal to One Hundred Thousand and No/Dollars ($100,000.00) until Amount. For example only, if the initial Letter of Credit Amount is extinguished; provided$200,000.00, however, that in all eventsand Tenant has satisfied the requirements for the reduction of the Letter of Credit (i.e., 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 then in default or breach of any provision of this Lease beyond any applicable notice and cure period), and provided Tenant has not been in monetary default or material non-monetary default beyond any applicable notice and cure periods at any time prior to the applicable Reduction Date occurring on April 30(as defined below)then as of the 25th, 200537th, and 49th months of the Initial Term, the Letter of Credit Amount shall be reduced by $50,000.00 during each such Reduction Date, such that, as of the 50th month of the Initial Term and thereafter, the Letter of Credit shall have a remaining balance of at least $50,000.00. If 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 reduction of the Letter of Credit, within fifteen (15) days after Tenant submits such documents to Landlord for execution provided Tenant is not then in uncured default under this Lease.

Reduction in Letter of Credit Amount. Subject to the provisions of this Section 5(fSubparagraph 7(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 1as of the last day of the twelfth (12th), 2005 twenty-fourth (24th), thirty-sixth (36th) and on each anniversary thereafter during forty-eighth (48th) months of the Lease initial Term (individually, a “Reduction Date” and collectively, the “Reduction Dates”) as follows: On May 1, 2005each Reduction Date, Tenant shall be entitled to reduce the Letter of Credit Amount by an amount equal to One Two Hundred Fifty Twenty-Five Thousand Six Hundred Fifty Four and 70/100ths No/100 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”225,000.00). 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, the last day of the twelfth (12th) month of the Term and Tenant duly and timely pays the Base Monthly Basic Rent and additional rent that is due and payable on May 1, 2005the first day of the twelfth (12th) month, Tenant would be entitled to reduce the Letter of Credit Amount by One Two Hundred Fifty Twenty-Five Thousand Six Hundred Fifty Four and 70/100ths No/100 Dollars ($155,654.70225,000.00) to Three One Million Eight Hundred Forty Four Seventy-Five Thousand Three Hundred Forty Five and 30/100ths No/100 Dollars ($344,345.301,875,000.00) effective as of Mayl 1, 2005; provided, however, as provided in Paragraph 6 below, if the Tenant installs last day of the Interior Stairwell described in Paragraph 6 below, twelfth (12th) month of the Letter of Credit shall in no event be reduced below One Hundred Thousand Dollars ($100,000.00)initial Term. 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 then in default under this Lease.