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

Reduction in Letter of Credit Amount. Subject to the provisions of this Subparagraph 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 as of the last day of the twelfth (12th), twenty-fourth (24th), thirty-sixth (36th) and forty-eighth (48th) months of the initial Term (individually, a “Reduction Date” and collectively, the “Reduction Dates”) as follows: On each Reduction Date, Tenant shall be entitled to reduce the Letter of Credit Amount by an amount equal to Two Hundred Twenty-Five Thousand and No/100 Dollars ($225,000.00). For example, if Tenant 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 the last day of the twelfth (12th) month of the Term and Tenant duly and timely pays the Monthly Basic Rent and additional rent that is due and payable on the first day of the twelfth (12th) month, Tenant would be entitled to reduce the Letter of Credit Amount by Two Hundred Twenty-Five Thousand and No/100 Dollars ($225,000.00) to One Million Eight Hundred Seventy-Five Thousand and No/100 Dollars ($1,875,000.00) effective as of the last day of the twelfth (12th) month of the 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.

Reduction in Letter of Credit Amount. Subject to the provisions of this Subparagraph 7(fSection 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 as of May 1, 2005 and on each anniversary thereafter during the last day of the twelfth (12th), twenty-fourth (24th), thirty-sixth (36th) and forty-eighth (48th) months of the initial Lease Term (individually, a “Reduction Date” and collectively, the “Reduction Dates”) as follows: On each Reduction DateMay 1, 2005, Tenant shall be entitled to reduce the Letter of Credit Amount by an amount equal to Two One Hundred Twenty-Fifty Five Thousand Six Hundred Fifty Four and No/100 70/100ths Dollars ($225,000.00155,654.70). 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 EXHIBIT E 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 the last day of the twelfth (12th) month of the Term April 30, 2005, and Tenant duly and timely pays the Monthly Basic Base Rent and additional rent that is due and payable on the first day of the twelfth (12th) monthMay 1, 2005, Tenant would be entitled to reduce the Letter of Credit Amount by Two One Hundred Twenty-Fifty Five Thousand Six Hundred Fifty Four and No/100 70/100ths Dollars ($225,000.00155,654.70) to One Million Eight Three Hundred Seventy-Forty Four Thousand Three Hundred Forty Five Thousand and No/100 30/100ths Dollars ($1,875,000.00344,345.30) effective as of Mayl 1, 2005; provided, however, as provided in Paragraph 6 below, if the last day Tenant installs the Interior Stairwell described in Paragraph 6 below, the Letter of the twelfth Credit shall in no event be reduced below One Hundred Thousand Dollars (12th) month of the initial Term$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 then in default under this Lease.

Reduction in Letter of Credit Amount. Subject to the provisions of this Subparagraph 7(f) Section 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 as of the last day of the twelfth (12th), twenty-fourth (24th), thirty-sixth (36th) and forty-eighth (48th) months of the initial Term (individually, a “Reduction Date” and collectively, the “Reduction Dates”) as follows: On each Reduction Dateapplicable, Tenant shall be entitled to reduce the Letter of Credit Amount by an amount equal to Two Hundred Twenty-Five Thousand and No/100 Dollars ($225,000.00)as provided below. For example, if If Tenant has is not been then in actual default or breach of any provision of 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 the applicable “Reduction Date occurring on the last day of the twelfth (12th) month of the Term and Tenant duly and timely pays the Monthly Basic Rent and additional rent that is due and payable on the first day of the twelfth (12th) monthDate” in question, Tenant would shall then be entitled to reduce the Letter of Credit Amount by the following amounts at the following times: (i) Two Hundred Twenty-Five Fifty Thousand and No/100 Dollars ($225,000.00250,000.000) to One Million Eight effective as of the Effective Date (the “First Reduction Date”); (ii) by an additional Two Hundred Seventy-Five Thousand and No/100 Dollars ($1,875,000.00200,000.00) effective as of the last first day of the twelfth twenty-five (12th25th) full calendar month of the initial Term. If Tenant 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 eligible for 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 reduction on a Reduction Date, (the “Cash Security Deposit”). The Cash Security Deposit has been held by Landlord shall execute any documents reasonably requested as security for the full and faithful performance by Tenant and the issuing bank to effectuate the applicable release of all of the terms, covenants and conditions of the Amended Lease to be performed by Tenant. Landlord and Tenant hereby agree, however, that concurrently with the execution of this Amendment, Tenant shall deliver to Landlord a new Letter of CreditCredit in the amount of $750,000.00, and Landlord, 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 then in default under this LeaseTenant.

Reduction in Letter of Credit Amount. Subject to the provisions of this Subparagraph 7(f) Section 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 as of the last day of the twelfth (12th), twenty-fourth (24th), thirty-sixth (36th) and forty-eighth (48th) months of the initial Term (individually, a “Reduction Date” and collectively, the “Reduction Dates”) as follows: On each Reduction Dateapplicable, Tenant shall be entitled to reduce the Letter of Credit Amount by an amount equal to Two Hundred Twenty-Five Thousand and No/100 Dollars ($225,000.00)as provided below. For example, if If Tenant has is not been then in actual default or breach of any provision of 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 the applicable “Reduction Date occurring on the last day of the twelfth (12th) month of the Term and Tenant duly and timely pays the Monthly Basic Rent and additional rent that is due and payable on the first day of the twelfth (12th) monthDate” in question, Tenant would shall then be entitled to reduce the Letter of Credit Amount by Two the following amounts at the following times: (i) Four Hundred Twenty-Five Thousand and No/100 Dollars ($225,000.00400,000,000) to One Million Eight effective as of the first day of the thirty-seventh (37th) full calendar month of the initial Term (the “First Reduction Date”) and, (ii) by an additional Two Hundred Seventy-Five Thousand and No/100 Dollars ($1,875,000.00200,000.00) effective as of the last first day of the twelfth sixty-first (12th61st) fully calendar month of the initial TermTerm (the “Second Reduction Date”). If Tenant is eligible for a entitled to cancel the Letter of Credit reduction or reduce the Letter of Credit on a Reduction Date, Landlord shall execute any documents reasonably requested by Tenant and the issuing bank to effectuate the applicable release reduction or cancellation 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 Default under this Lease.

Reduction in Letter of Credit Amount. Subject to the provisions of this Subparagraph 7(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 commencing as of the last day twenty-fifth (25th) month of the twelfth (12th)Initial Term, twenty-fourth (24th), and thereafter on the thirty-sixth seventh (36th37th) and forty-eighth ninth (48th49th) months of the initial Initial Term (individuallyeach, a “Reduction Date” ”), by one-fourth (1/4th) of the initial Letter of Credit Amount, such that there shall remain at all times during the Lease Term, at least one-fourth (1/4th) of the initial Letter of Credit Amount. For example only, if the initial Letter of Credit Amount is $200,000.00, and collectively, Tenant has satisfied the “Reduction Dates”) as follows: On each Reduction Date, Tenant shall be entitled to reduce requirements for the reduction of the Letter of Credit Amount by an amount equal to Two Hundred Twenty-Five Thousand and No/100 Dollars ($225,000.00). For examplei.e., if Tenant has is 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 the last day (as defined below)then as of the twelfth (12th) 25th, 37th, 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 Monthly Basic Rent and additional rent that is due and payable on the first day of the twelfth (12th) month, Tenant would be entitled to reduce the Letter of Credit Amount by Two Hundred Twenty-Five Thousand and No/100 Dollars ($225,000.00) to One Million Eight Hundred Seventy-Five Thousand and No/100 Dollars ($1,875,000.00) effective as of the last day of the twelfth (12th) month of the 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 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.