Common use of Reduction of L-C Amount Clause in Contracts

Reduction of L-C Amount. The L-C Amount shall not be reduced during that period (the “Fixed Period”), commencing on the Lease Commencement Date and expiring on the fourth (4th) anniversary of the Rent Commencement Date, unless extended pursuant to the terms of this Section 21.8. The Fixed Period shall be automatically extended (without the necessity of notice to Tenant) by four (4) months upon Tenant’s second (2nd) failure to pay any Rent or any other charge required to be paid under this Lease, or any part thereof, beyond applicable notice and cure periods, and shall be extended for an additional four (4) months upon each failure by Tenant thereafter. After the expiration of the Fixed Period (as the same may be extended pursuant to the immediately preceding sentence), provided that on or prior to the applicable Reduction Date, Tenant tenders to Landlord (a) evidence reasonably satisfactory to Landlord demonstrating the Tenant satisfies the “L-C Reduction Conditions,” as that term is defined below, and (b) a certificate of amendment to the existing L-C, conforming in all respects to the requirements of this Article 21, in the amount of the applicable L-C Amount as of such Reduction Date, the L-C Amount shall be reduced to the following amounts: First (1st) day of the first (1st) calendar month following the month in which the Fixed Period expires (the “Burn Down Date”) $ 7,000,000.00 First (1st) anniversary of the Burn Down Date $ 5,730,000.00 Second (2nd) anniversary of the Burn Down Date $ 4,460,000.00 Third (3rd) anniversary of the Burn Down Date $ 3,190,000.00 Fourth (4th) anniversary of the Burn Down Date $ 1,920,000.00 Fifth (5th) anniversary of the Burn Down Date $ 650,000.00 * The Reduction Dates set forth above shall be adjusted, if the Fixed Period is extended pursuant to the terms of this Section 21.8, to be the dates that are the number of months after the extended Fixed Period (for the initial Reduction Date) or the preceding Reduction Date (for Reduction Dates thereafter) determined by dividing the number of months remaining in the initial Lease Term following the extended Fixed Period by five (5). In addition, the L-C Amount set forth above with respect to each Reduction Date shall be proportionally increased to the extent the L-C Amount had been previously increased pursuant to the terms of Section 21.7, above.

Reduction of L-C Amount. The amount of the letter of credit, which the parties acknowledge shall be in the initial amount of $4,726,000.00, shall be reduced during the Lease Term as follows: Reduction Date New L-C Amount January 30, 2013 $ 3,545,0000 January 30, 2014 $ 2,365,000 January 30, 2015 $ 1,180,000 January 30, 2016 $ 650,000 The amount of the letter of credit shall additionally be reduced on a proportionate basis in the event of any permanent recapture of any portion of the Premises by Landlord pursuant to the terms of Section 14.4, above. Notwithstanding anything to the contrary in this Section 21.6, the amount of the letter of credit shall only decrease as set forth above if, as of the applicable Reduction Date, Tenant is not in default under this Lease and the 790 Lindaro Lease (beyond any applicable notice and cure periods set forth in this Lease and the 790 Lindaro Lease). In the event Tenant does not satisfy the foregoing condition as of a particular Reduction Date, the L-C shall not be reduced during that period (as of such Reduction Date but if Tenant satisfies the “Fixed Period”), commencing on the Lease Commencement Date and expiring on the fourth (4th) anniversary L-C Reduction Conditions as of the Rent Commencement succeeding Reduction Date, unless extended the L-C shall be decreased to the corresponding “New L-C Amount” set forth above for such succeeding Reduction Date notwithstanding that the prior L-C reduction did not occur (but no reduction prior to such succeeding Reduction Date shall be permitted). Notwithstanding anything contained herein to the contrary, in no event shall any decrease in the L-C occur pursuant to the terms of this Section 21.821.6 in the event this Lease or the 790 Lindaro Lease is terminated due to an Event of Default by Tenant. Not more than thirty (30) days prior to each of the applicable reduction dates, Tenant shall deliver Landlord a Notice (the “Reduction Request”) requesting that Landlord provide the bank issuing the L-C notice confirming that the applicable reduction is to occur on the reduction date (the “Reduction Certification”). The Fixed Period Reduction Request shall be automatically extended (without the necessity of notice to Tenant) accompanied by four (4) months upon Tenant’s second (2nd) failure to pay any Rent or any other charge required to be paid under this Lease, or any part thereof, beyond applicable notice and cure periods, and shall be extended for an additional four (4) months upon each failure by Tenant thereafter. After the expiration of the Fixed Period (as the same may be extended pursuant to the immediately preceding sentence), provided that on or prior to the applicable Reduction Date, Tenant tenders evidence reasonably acceptable to Landlord (a) evidence reasonably satisfactory to Landlord demonstrating that Tenant meets the Tenant satisfies the “L-C Reduction Conditions,” as that term is defined below. Within five (5) business days after Landlord’s receipt of the Reduction Request, and (b) a certificate of amendment to the existing L-C, conforming in all respects to the requirements of this Article 21, in the amount of the applicable L-C Amount as of such Reduction Date, provided that Tenant meets the L-C Amount Reduction Conditions, Landlord shall be reduced deliver the Reduction Certification to the following amounts: First (1st) day of bank in the first (1st) calendar month following the month in which the Fixed Period expires (the “Burn Down Date”) $ 7,000,000.00 First (1st) anniversary of the Burn Down Date $ 5,730,000.00 Second (2nd) anniversary of the Burn Down Date $ 4,460,000.00 Third (3rd) anniversary of the Burn Down Date $ 3,190,000.00 Fourth (4th) anniversary of the Burn Down Date $ 1,920,000.00 Fifth (5th) anniversary of the Burn Down Date $ 650,000.00 * The Reduction Dates set forth above shall be adjusted, if the Fixed Period is extended pursuant to form required by the terms of this Section 21.8, to be the dates that are the number of months after the extended Fixed Period (for the initial Reduction Date) or the preceding Reduction Date (for Reduction Dates thereafter) determined by dividing the number of months remaining in the initial Lease Term following the extended Fixed Period by five (5). In addition, the L-C Amount set forth above with respect to each Reduction Date shall be proportionally increased to the extent the L-C Amount had been previously increased pursuant to the terms of Section 21.7, above.C.

Reduction of L-C Amount. The L-C Amount shall not be reduced during that period (the “Fixed Period”), commencing on the Lease Commencement Date and expiring on the fourth (4th) anniversary of the Rent Commencement Date, unless extended pursuant to the terms of this Section 21.8. The Fixed Period shall be automatically extended (without the necessity of notice to Tenant) by four (4) months upon Tenant’s second (2nd) failure to pay any Rent or any other charge required to be paid under this Lease, or any part thereof, beyond applicable notice and cure periods, and shall be extended for an additional four (4) months upon each failure by Tenant thereafter. After the expiration of the Fixed Period (as the same may be extended pursuant to the immediately preceding sentence), provided Provided that on or prior to promptly following the applicable "Reduction Date," as that term is defined below, Tenant tenders to Landlord (a) evidence reasonably satisfactory to Landlord a copy of Tenant's most recent year-end financial statements prepared and certified by an independent certified public accountant or certified by an officer of Tenant, demonstrating the that Tenant satisfies the “"L-C Reduction Conditions,” " as that term is defined below, and (b) a new L-C conforming in all respects to the requirements of this Article 22 in the amount of the reduced L-C Amount as of such Reduction Date, or a certificate of amendment to the existing L-C, conforming in all respects to the requirements of this Article 21, in the amount of the applicable reduced L-C Amount as of such Reduction Date, the L-C Amount shall be reduced pursuant to the following amountsfollowing: First Provided Tenant satisfies the L-C Reduction Conditions, the L-C Amount shall be reduced by an amount equal to thirty-three percent (1st33%) day of the first (1st) calendar month following initial L-C Amount. If Tenant is allowed to reduce the month in which the Fixed Period expires (the “Burn Down Date”) $ 7,000,000.00 First (1st) anniversary of the Burn Down Date $ 5,730,000.00 Second (2nd) anniversary of the Burn Down Date $ 4,460,000.00 Third (3rd) anniversary of the Burn Down Date $ 3,190,000.00 Fourth (4th) anniversary of the Burn Down Date $ 1,920,000.00 Fifth (5th) anniversary of the Burn Down Date $ 650,000.00 * The Reduction Dates set forth above shall be adjusted, if the Fixed Period is extended L-C Amount pursuant to the terms of this Section 21.822.7, then Landlord shall reasonably cooperate with Tenant in order to be effectuate such reduction. For purposes of this Section 22 7, the dates "L-C Reduction Conditions" shall mean that are (i) Tenant is not then in default under this Lease and has not been in monetary default under this Lease, beyond any applicable notice and cure period expressly set forth in this Lease, at any time during the number of months after the extended Fixed Period Lease Term, and (ii) Tenant has achieved positive earnings before interest, taxes, depreciation and amortization ("EBITDA"), as determined in accordance with generally accepted accounting practices ("GAAP") plus stock compensation, for the initial trailing four (4) consecutive quarters. As used herein, the "Reduction Date) or " shall mean the preceding Reduction Date (for Reduction Dates thereafter) determined by dividing the number of months remaining in the initial Lease Term following the extended Fixed Period by five (5). In addition, date that Tenant satisfies the L-C Amount set forth above with respect to each Reduction Date shall be proportionally increased to the extent the L-C Amount had been previously increased pursuant to the terms of Section 21.7, aboveConditions.

Reduction of L-C Amount. The L-C Amount shall not be reduced during that period (the “Fixed Period”), commencing on the Lease Commencement Date and expiring ending on the fourth last day of Lease Year 4 (4th) anniversary of the Rent Commencement Date, unless extended pursuant to the terms of this Section 21.8"Fixed Period"). The Fixed Period shall be automatically extended (without the necessity of notice to Tenant) by four (4) months upon Tenant’s 's second (2nd) failure to pay any Rent or any other charge required to be paid under this Lease, or any part thereof, beyond applicable notice and cure periods, and shall be extended for an additional four (4) months upon each similar failure by Tenant thereafter. After the expiration of the Fixed Period (as the same may be extended pursuant to the immediately preceding sentence), provided that on or prior to the applicable Reduction Date, Tenant is not then in monetary or material non-monetary default under this Lease beyond applicable notice and cure periods and Tenant tenders to Landlord (a) evidence reasonably satisfactory to Landlord demonstrating the Tenant satisfies the “L-C Reduction Conditions,” as that term is defined below, and (b) a certificate of amendment to the existing L-C (or a new L-C), conforming in all respects to the requirements of this Article 21, in the amount of the applicable L-C Amount as of such Reduction Date, then the L-C Amount (as that amount may have been adjusted due to an expansion or reduction of the Premises in accordance with Article 1 of this Lease, the "Adjusted L-C Amount"), shall be reduced as follows: If Tenant is allowed to reduce the following amounts: First (1st) day of the first (1st) calendar month following the month in which the Fixed Period expires (the “Burn Down Date”) $ 7,000,000.00 First (1st) anniversary of the Burn Down Date $ 5,730,000.00 Second (2nd) anniversary of the Burn Down Date $ 4,460,000.00 Third (3rd) anniversary of the Burn Down Date $ 3,190,000.00 Fourth (4th) anniversary of the Burn Down Date $ 1,920,000.00 Fifth (5th) anniversary of the Burn Down Date $ 650,000.00 * The Reduction Dates set forth above shall be adjusted, if the Fixed Period is extended L-C Amount pursuant to the terms of this Section 21.821.7, then Landlord shall reasonably cooperate with Tenant in order to be effectuate such reduction. In the dates that are event Tenant is in monetary or material non-monetary default under this Lease beyond applicable notice and cure periods as of the number of months after the extended Fixed Period (for the initial applicable Reduction Date, or if Tenant fails to deliver a certificate of amendment to the existing L-C (or new L-C) or the preceding Reduction Date (for Reduction Dates thereafter) determined as required by dividing the number of months remaining in the initial Lease Term following the extended Fixed Period by five (5). In additionthis Section 21.7, then the L-C Amount set forth above with respect to each shall not be reduced upon such applicable Reduction Date Date, but the terms of this Section 21.7 shall be proportionally increased to the extent remain effective and the L-C Amount had been previously increased pursuant shall thereafter be reduced, to the terms amount applicable to such Reduction Date, on the date Tenant is no longer in monetary or material non-monetary default under this Lease beyond applicable notice and cure periods and Tenant delivers to Landlord a certificate of Section 21.7amendment to the existing L-C (or a new L-C), aboveconforming in all respects to the requirements of this Article 21, in the amount of the applicable L-C Amount (provided that no such reductions shall be permitted in the event this Lease is terminated early as a result of a Tenant default).

Reduction of L-C Amount. The L-C Amount shall not be reduced during that period (the “Fixed Period”), commencing on the Lease Commencement Date and expiring on the fourth (4th) anniversary of the Rent Commencement Date, unless extended pursuant to the terms of this Section 21.8. The Fixed Period shall be automatically extended (without the necessity of notice to Tenant) by four (4) months upon Tenant’s second (2nd) failure to pay any Rent or any other charge required to be paid under this Lease, or any part thereof, beyond applicable notice and cure periods, and shall be extended for an additional four (4) months upon each failure by Tenant thereafter. After the expiration of the Fixed Period (as the same may be extended pursuant to the immediately preceding sentence), provided that on or prior to the applicable Reduction Date, Tenant tenders to Landlord (a) evidence reasonably satisfactory to Landlord demonstrating the Tenant satisfies the “L-C Reduction Conditions,” as that term is defined below, and (b) a certificate of amendment to the existing L-C, conforming in all respects to the requirements of this Article 21, in the amount of the applicable L-C Amount as of such Reduction Date, the L-C Amount shall be reduced to the following amounts: Reduction Date* L-C Amount First (1st) day of the first (1st) calendar month following the month in which the Fixed Period expires (the “Burn Down Date”) $ 7,000,000.00 First (1st) anniversary of the Burn Down Date $ 5,730,000.00 Second (2nd) anniversary of the Burn Down Date $ 4,460,000.00 Third (3rd) anniversary of the Burn Down Date $ 3,190,000.00 Fourth (4th) anniversary of the Burn Down Date $ 1,920,000.00 Fifth (5th) anniversary of the Burn Down Date $ 650,000.00 * The Reduction Dates set forth above shall be adjusted, if the Fixed Period is extended pursuant to the terms of this Section 21.8, to be the dates that are the number of months after the extended Fixed Period (for the initial Reduction Date) or the preceding Reduction Date (for Reduction Dates thereafter) determined by dividing the number of months remaining in the initial Lease Term following the extended Fixed Period by five (5). In addition, the L-C Amount set forth above with respect to each Reduction Date shall be proportionally increased to the extent the L-C Amount had been previously increased pursuant to the terms of Section 21.7, above.

Reduction of L-C Amount. The amount of the letter of credit, which the parties acknowledge shall be in the initial amount of $4,726,000.00, shall be reduced during the Lease Term as follows: Reduction Date New L-C Amount January 30, 2013 $ 3,545,000 January 30, 2014 $ 2,365,000 January 30, 2015 $ 1,180,000 January 30, 2016 $ 650,000 The amount of the letter of credit shall additionally be reduced on a proportionate basis in the event of any permanent recapture of any portion of the Premises by Landlord pursuant to the terms of Section 14.4, above. Notwithstanding anything to the contrary in this Section 21.6, the amount of the letter of credit shall only decrease as set forth above if, as of the applicable Reduction Date, Tenant is not in default under this Lease and the 770 Lindaro Lease (beyond any applicable notice and cure periods set forth in this Lease and the 770 Lindaro Lease). In the event Tenant does not satisfy the foregoing condition as of a particular Reduction Date, the L-C shall not be reduced during that period (as of such Reduction Date but if Tenant satisfies the “Fixed Period”), commencing on the Lease Commencement Date and expiring on the fourth (4th) anniversary LC Reduction Conditions as of the Rent Commencement succeeding Reduction Date, unless extended the L-C shall be decreased to the corresponding “New L-C Amount” set forth above for such succeeding Reduction Date notwithstanding that the prior L-C reduction did not occur (but no reduction prior to such succeeding Reduction Date shall be permitted). Notwithstanding anything contained herein to the contrary, in no event shall any decrease in the L-C occur pursuant to the terms of this Section 21.821.6 in the event this Lease or the 770 Lindaro Lease is terminated due to an Event of Default by Tenant. The Fixed Period shall be automatically extended Not more than thirty (without the necessity of notice to Tenant30) by four (4) months upon Tenant’s second (2nd) failure to pay any Rent or any other charge required to be paid under this Lease, or any part thereof, beyond applicable notice and cure periods, and shall be extended for an additional four (4) months upon each failure by Tenant thereafter. After the expiration of the Fixed Period (as the same may be extended pursuant to the immediately preceding sentence), provided that on or days prior to the applicable Reduction Date, Tenant tenders to Landlord (a) evidence reasonably satisfactory to Landlord demonstrating the Tenant satisfies the “L-C Reduction Conditions,” as that term is defined below, and (b) a certificate of amendment to the existing L-C, conforming in all respects to the requirements of this Article 21, in the amount each of the applicable L-C Amount as of such reduction dates, Tenant shall deliver Landlord a Notice (the “Reduction Date, Request”) requesting that Landlord provide the bank issuing the L-C Amount shall be reduced notice confirming that the applicable reduction is to occur on the following amounts: First (1st) day of the first (1st) calendar month following the month in which the Fixed Period expires reduction date (the “Burn Down DateReduction Certification”). The Reduction Request shall be accompanied by evidence reasonably acceptable to Landlord that Tenant meets the LC Reduction Conditions. Within five (5) $ 7,000,000.00 First (1st) anniversary business days after Landlord’s receipt of the Burn Down Date $ 5,730,000.00 Second (2nd) anniversary of Reduction Request, and provided that Tenant meets the Burn Down Date $ 4,460,000.00 Third (3rd) anniversary of LC Reduction Conditions, Landlord shall deliver the Burn Down Date $ 3,190,000.00 Fourth (4th) anniversary of Reduction Certification to the Burn Down Date $ 1,920,000.00 Fifth (5th) anniversary of bank in the Burn Down Date $ 650,000.00 * The Reduction Dates set forth above shall be adjusted, if the Fixed Period is extended pursuant to form required by the terms of this Section 21.8, to be the dates that are the number of months after the extended Fixed Period (for the initial Reduction Date) or the preceding Reduction Date (for Reduction Dates thereafter) determined by dividing the number of months remaining in the initial Lease Term following the extended Fixed Period by five (5). In addition, the L-C Amount set forth above with respect to each Reduction Date shall be proportionally increased to the extent the L-C Amount had been previously increased pursuant to the terms of Section 21.7, above.C.

Reduction of L-C Amount. The L-C Amount shall not be reduced during that period commencing on the Phase I Lease Commencement Date and expiring on September 30, 2019 (the “Fixed Period”), commencing on the Lease Commencement Date and expiring on the fourth (4th) anniversary of the Rent Commencement Date, unless extended pursuant to the terms of this Section 21.8. The Fixed Period shall be automatically extended (without the necessity of notice to Tenant) by four (4) months upon Tenant’s second (2nd) failure to pay any Rent or any other charge required to be paid under this Lease, or any part thereof, beyond applicable notice and cure periods, and shall be extended for an additional four (4) months upon each similar failure by Tenant thereafter. After the expiration of the Fixed Period (as the same may be extended pursuant to the immediately preceding sentence), provided that on or prior to the applicable Reduction Date, Tenant tenders to Landlord (a) evidence reasonably satisfactory to Landlord demonstrating the Tenant satisfies the “L-C Reduction Conditions,” as that term is defined below, and (b) a certificate of amendment to the existing L-C (or a new L-C), conforming in all respects to the requirements of this Article 21, in the amount of the applicable L-C Amount as of such Reduction Date, then the L-C Amount (as that amount may have been adjusted due to an expansion or reduction of the Premises in accordance with Article 1 of this Lease, the “Adjusted L-C Amount”), shall be reduced as follows: Date of Reduction Amount of Reduction Remaining L-C Amount October 1, 2019 11% of Adjusted L-C Amount 89% of Adjusted L-C Amount October 1, 2020 22% of Adjusted L-C Amount 67% of Adjusted L-C Amount October 1, 2021 22% of Adjusted L-C Amount 44% of Adjusted L-C Amount October 1, 2022 22% of Adjusted L-C Amount 22% of Adjusted L-C Amount October 1, 2023 11% of Adjusted L-C Amount 11% of Adjusted L-C Amount If Tenant is allowed to reduce the following amounts: First (1st) day of the first (1st) calendar month following the month in which the Fixed Period expires (the “Burn Down Date”) $ 7,000,000.00 First (1st) anniversary of the Burn Down Date $ 5,730,000.00 Second (2nd) anniversary of the Burn Down Date $ 4,460,000.00 Third (3rd) anniversary of the Burn Down Date $ 3,190,000.00 Fourth (4th) anniversary of the Burn Down Date $ 1,920,000.00 Fifth (5th) anniversary of the Burn Down Date $ 650,000.00 * The Reduction Dates set forth above shall be adjusted, if the Fixed Period is extended L-C Amount pursuant to the terms of this Section 21.8, then Landlord shall reasonably cooperate with Tenant in order to be the dates that are the number of months after the extended Fixed Period (for the initial Reduction Date) or the preceding Reduction Date (for Reduction Dates thereafter) determined by dividing the number of months remaining in the initial Lease Term following the extended Fixed Period by five (5). In addition, the L-C Amount set forth above with respect to each Reduction Date shall be proportionally increased to the extent the L-C Amount had been previously increased pursuant to the terms of Section 21.7, aboveeffectuate such reduction.