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

Reduction of Letter of Credit Amount. Notwithstanding any contrary provision hereof, provided that no Default then exists, the Letter of Credit Amount shall be reduced to $165,000.00 (the “Reduced Amount”) on the first day of the 37th full calendar month of the Term (the “Reduction Effective Date”). If the Letter of Credit Amount is reduced in accordance with this Section 5.6, Tenant shall either (a) deliver to Landlord a new Letter of Credit in the amount of the Reduced Amount and otherwise satisfying the LC Requirements, whereupon Landlord shall return the Letter of Credit then held by Landlord (the “Existing Letter of Credit”) to Tenant within 30 days after the later of Landlord’s receipt of such new Letter of Credit or the Reduction Effective Date, or (b) deliver to Landlord an amendment to the Existing Letter of Credit, executed by and binding upon the issuer of the Existing Letter of Credit and in a form reasonably acceptable to Landlord, reducing the amount of the Existing Letter of Credit to the Reduced Amount, whereupon Landlord shall execute and return such amendment to Tenant within 30 days after the later of Landlord’s receipt of such amendment or the Reduction Effective Date.

Reduction of Letter of Credit Amount. of Exhibit F to the Lease, as amended by Section 10.2 of the First Amendment, is hereby amended in its entirety to read as follows: “Notwithstanding any contrary provision hereofof the Lease, provided that no Default then exists, the Letter of Credit Amount shall be reduced to $165,000.00 (the “Reduced Amount”) on the first day of the 37th full calendar month of the Term following dates (the each, a “Reduction Effective Date”)) to be equal to the following corresponding amounts (each, a “Reduced Amount”): (a) $475,000.00 on June 30, 2019; (b) $350,000.00 on June 30, 2020; (c) $225,000.00 on June 30, 2021; and (d) $100,000.00 on June 30, 2022. If the Letter of Credit Amount is reduced in accordance with this Section 5.62.6, Tenant shall either (a) deliver to Landlord a new Letter of Credit in the amount of the Reduced Amount and otherwise satisfying the LC Requirements, whereupon Landlord shall return the Letter of Credit then held by Landlord (the “Existing Letter of Credit”) to Tenant within 30 days after the later of Landlord’s receipt of such new Letter of Credit or the Reduction Effective Date, or (b) deliver to Landlord an amendment to the Existing Letter of Credit, executed by and binding upon the issuer of the Existing Letter of Credit and in a form reasonably acceptable to Landlord, reducing the amount of the Existing Letter of Credit to the Reduced Amount, whereupon Landlord shall execute and return such amendment to Tenant within 30 days after the later of Landlord’s receipt of such amendment or the Reduction Effective Date.”

Reduction of Letter of Credit Amount. Notwithstanding any contrary provision hereof, provided that no Default then exists, the Letter of Credit Amount shall be reduced on the following dates (each, a “Reduction Effective Date”) to $165,000.00 be equal to the following corresponding amounts (the each, a “Reduced Amount”): (a) $400,000.00 on the first day of the 37th 20th full calendar month of the Term Term; (b) $300,000.00 on the “Reduction Effective Date”)first day of the 30th full calendar month of the Term; (c) $200,000.00 on the first day of the 40th full calendar month of the Term; and (d) $100,000.00 on the first day of the 50th full calendar month of the Term. If the Letter of Credit Amount is reduced in accordance with this Section 5.62.6, Tenant shall either (a) deliver to Landlord a new Letter of Credit in the amount of the Reduced Amount and otherwise satisfying the LC Requirements, whereupon Landlord shall return the Letter of Credit then held by Landlord (the “Existing Letter of Credit”) to Tenant within 30 days after the later of Landlord’s receipt of such new Letter of Credit or the Reduction Effective Date, or (b) deliver to Landlord an amendment to the Existing Letter of Credit, executed by and binding upon the issuer of the Existing Letter of Credit and in a form reasonably acceptable to Landlord, reducing the amount of the Existing Letter of Credit to the Reduced Amount, whereupon Landlord shall execute and return such amendment to Tenant within 30 days after the later of Landlord’s receipt of such amendment or the Reduction Effective Date.

Reduction of Letter of Credit Amount. Notwithstanding any contrary provision hereof, provided that no Default then exists, the Letter of Credit Amount shall be reduced to as follows: (i) by $165,000.00 as of April 1, 2022 and (ii) by $195,991.87 promptly following the “Reduced Amount”date that Tenant provides Landlord with audited financial statements that show four (4) on the first day consecutive quarters of the 37th full calendar month of the Term positive cash flow from Tenant’s operations (the “Reduction Effective Date”not investment activity); if audited financial statements are not available, such financial statements must be certified as accurate by Tenant’s Chief Financial Officer. If the Letter of Credit Amount is reduced in accordance with this Section 5.6, Tenant shall either (a) deliver to Landlord a new Letter of Credit in the amount of the Reduced Amount and otherwise satisfying the LC Requirements, whereupon Landlord shall return the Letter of Credit then held by Landlord (the “Existing Letter of Credit”) to Tenant within 30 days after the later of Landlord’s receipt of such new Letter of Credit or the Reduction Effective Date, or (b) deliver to Landlord an amendment to the Existing Letter of Credit, executed by and binding upon the issuer of the Existing Letter of Credit and in a form reasonably acceptable to Landlord, reducing the amount of the Existing Letter of Credit to the Reduced Amount, whereupon Landlord shall execute and return such amendment to Tenant within 30 days after the later of Landlord’s receipt of such amendment or the Reduction Effective Date.”