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

Reduction of Letter of Credit Amount. Subject to the remaining terms of this Section 21.10, and provided Tenant has not been in default under this Lease, beyond any applicable notice and cure periods, after the expiration of any applicable notice and cure period set forth in this Lease during the twelve (12) month period immediately preceding the effective date of any reduction of the Letter of Credit, Tenant shall have the right to reduce the amount of the Letter of Credit by an amount equal to Fifty Thousand and No/100 Dollars ($50,000.00) on each of the second (2nd), third (3rd), fourth (4th), fifth (5th), and sixth (6th) anniversaries of the Lease Commencement Date. Notwithstanding anything to the contrary contained herein, if Tenant has been in default under this Lease, beyond any applicable notice and cure periods, at any time prior to the effective date of any reduction of the Letter of Credit and Tenant has failed to cure such default within any applicable notice and cure period set forth in this Lease, then Tenant shall have no further 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 either a substitute letter of credit in the reduced amount, or an amendment to the existing L-C that reflects the reduced amount, and, if a substitute L-C is provided, once Landlord receives the substitute Letter of Credit, Landlord shall return to Tenant the Letter of Credit that such substitute letter of credit has replaced. Within ninety (90) days after the expiration of this Lease, Landlord shall return to Tenant any remaining proceeds of the L-C that have not been applied by Landlord pursuant to this Article 21.

Reduction of Letter of Credit Amount. Subject Notwithstanding any provision to the remaining terms of contrary contained in this Section 21.10Article 27, and provided Tenant is not then in default under this Lease and has not previously been in default under this Lease, Lease beyond any applicable notice and cure periods, after the expiration of any applicable notice and cure period set forth in this Lease during the twelve (12) month period immediately preceding the effective date of any reduction of the Letter of Credit, Tenant shall have the right to reduce the amount of the Letter of Credit by an amount equal to Fifty Thousand and No/100 Dollars ($50,000.00) on each of the second (2nd), third (3rd), fourth (4th), fifth (5th), and sixth (6th) anniversaries of the Lease Commencement Date. Notwithstanding anything to the contrary contained herein, if Tenant has been in default under this Lease, beyond any applicable notice and cure periods, at any time prior to the effective date of any reduction of the Letter of Credit and Tenant has failed to cure such default within any applicable notice and cure period set forth in this Lease, then (i) on first day of the second (2nd) Lease Year (the “First LC Reduction Date”), provided that on or prior to the First LC Reduction Date, Tenant shall have no further right tenders to reduce Landlord a replacement Letter of Credit or a certificate of amendment to the existing Letter of Credit, conforming in all respects to the requirements of this Article 27, in the amount of Thirty-Two Thousand Two Hundred and 88/100 Dollars ($32,200.88), then, as of the later of the First LC Reduction Date and Landlord’s receipt of such replacement Letter of Credit or certificate of amendment to the existing Letter of Credit, the Letter of Credit Amount shall be reduced to Thirty-Two Thousand Two Hundred and 88/100 Dollars ($32,200.88), (ii) on first day of the third (3rd) Lease Year (the “Second LC Reduction Date”), provided that on or prior to the Second LC Reduction Date, Tenant tenders to Landlord a replacement Letter of Credit or a certificate of amendment to the existing Letter of Credit, conforming in all respects to the requirements of this Article 27, in the amount of Twenty-One Thousand Four Hundred Sixty-Seven and 25/100 Dollars ($21,467.25), then, as described herein. Any reduction in of the later of the Second LC Reduction Date and Landlord’s receipt of such replacement Letter of Credit or certificate of amendment to the existing Letter of Credit, the Letter of Credit Amount shall be accomplished by reduced to Twenty-One Thousand Four Hundred Sixty-Seven and 25/100 Dollars ($21,467.25), (iii) on first day of the fourth (4th) Lease Year (the “Third LC Reduction Date”), provided that on or prior to the Third LC Reduction Date, Tenant providing tenders to Landlord with either a substitute letter replacement Letter of credit in the reduced amount, Credit or an a certificate of amendment to the existing L-C that reflects the reduced amount, and, if a substitute L-C is provided, once Landlord receives the substitute Letter of Credit, Landlord shall return conforming in all respects to Tenant the requirements of this Article 27, in the amount of Ten Thousand Seven Hundred Thirty-Three and 63/100 Dollars ($10,733.63), then, as of the later of the Third LC Reduction Date and Landlord’s receipt of such replacement Letter of Credit or certificate of amendment to the existing Letter of Credit, the Letter of Credit Amount shall be reduced to Ten Thousand Seven Hundred Thirty-Three and 63/100 Dollars ($10,733.63), and (iv) on the first day of the fifth (5th) Lease Year the Letter of Credit Amount shall be reduced to Zero and No/100 Dollars ($0.00). In the event that such substitute letter the Letter of credit has replaced. Within ninety (90) days after Credit Amount is reduced pursuant to the expiration foregoing, and provided that Tenant timely tenders a replacement Letter of this LeaseCredit to Landlord in the form required herein, then Landlord shall return to Tenant any remaining proceeds exchange the Letter of the L-C that have not been applied Credit then held by Landlord pursuant to this Article 21for the replacement Letter of Credit tendered by Tenant. Tenant shall pay all expenses, points and fees incurred by Tenant or Landlord in renewing, replacing, drawing or transferring the Letter of Credit.

Reduction of Letter of Credit Amount. Subject to the remaining terms provisions of this Section 21.1021.4, the Letter of Credit Amount shall be reduced pursuant to the following schedule: 1st Day Lease Year 3 $ 660,000 1st Day Lease Year 4 $ 435,000 1st Day Lease Year 5 $ 288,000 1st Day Lease Year 6 $ 190,000 1st Day Lease Year 7 $ 125,000 Each reduction shall occur as follows: (a) if Landlord has drawn on the Letter of Credit and is holding unused proceeds as a cash security deposit, then Landlord shall, within ten (10) business days following notice by Tenant to Landlord that Tenant is entitled to reduce the Letter of Credit Amount pursuant to this Section 21.4, deliver to Tenant the lesser of (i) amount by which the Letter of Credit Amount is reduced, and provided (ii) the amount of the cash security deposit held by Landlord and (b) if the reduction in the Letter of Credit Amount was not satisfied pursuant to clause (a), Tenant has not been shall deliver to Landlord either a consent to an amendment to the Letter of Credit (which amendment must be reasonably acceptable to Landlord in default under this Lease, beyond any applicable notice and cure periods, after all respects) reducing the expiration of any applicable notice and cure period set forth in this Lease during the twelve (12) month period immediately preceding the effective date of any reduction amount of the Letter of CreditCredit by the remaining amount of the permitted reduction, Tenant and Landlord shall have the right execute such consent and such other documents as are reasonably necessary to reduce the amount of the Letter of Credit by an amount equal in accordance with the terms hereof. If Tenant delivers to Fifty Thousand and No/100 Dollars ($50,000.00) on each of the second (2nd), third (3rd), fourth (4th), fifth (5th), and sixth (6th) anniversaries of the Lease Commencement Date. Notwithstanding anything Landlord a consent to the contrary contained herein, if Tenant has been in default under this Lease, beyond any applicable notice and cure periods, at any time prior to the effective date of any reduction of the Letter of Credit and Tenant has failed to cure such default within any applicable notice and cure period set forth in this Lease, then Tenant shall have no further 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 either a substitute letter of credit in the reduced amount, or an amendment to the existing L-C that reflects the reduced amount, and, if a substitute L-C is provided, once Landlord receives the substitute Letter of Credit, Landlord shall return shall, within ten (10) business days, either (A) provide its reasonable objections to Tenant such amendment or (B) execute such consent in accordance with the terms hereof. The Letter of Credit that such substitute letter of credit has replaced. Within ninety (90) days after the expiration of this Lease, Landlord Amount shall return to Tenant any remaining proceeds of the L-C that have not been applied by Landlord be reduced pursuant to this Article 21Section 21.4 only if the following conditions are satisfied on the Reduction Date and as of the date of Tenant’s request such reduction (i) Landlord is holding in the form of a Letter of Credit and/or a cash security deposit the then applicable Letter of Credit Amount, (ii) Tenant has paid all Rent then due Landlord, and (iii) no uncured Event of Default exists.

Reduction of Letter of Credit Amount. Subject to A. Provided that, as of the remaining terms date of this Section 21.10Tenant’s [***] (as hereinafter defined), and provided (i) Tenant is not then in default of any of its obligations hereunder, (ii) Tenant has not been in default under this Lease, beyond any applicable notice and cure periods, after the expiration periods of any applicable notice and cure period set forth in this Lease during the twelve (12) month period immediately preceding the effective date of any reduction of the Letter of Credit, Tenant shall have the right to reduce the amount of the Letter of Credit by an amount equal to Fifty Thousand and No/100 Dollars ($50,000.00) on each of the second (2nd), third (3rd), fourth (4th), fifth (5th), and sixth (6th) anniversaries of the Lease Commencement Date. Notwithstanding anything to the contrary contained herein, if Tenant has been in default under this Lease, beyond any applicable notice and cure periods, its obligations hereunder at any time prior to the effective date of any reduction of Tenant’s [***] (such conditions (i) and (ii), the “Default Conditions”) and, (iii) either (a) [***], or (b) (such condition (iii), the “[***] Condition”), Tenant shall have the right, by written request given to Landlord (“Tenant’s [***]”) to reduce the Letter of Credit Amount to XXXXXXX Tenant’s [***] shall be accompanied by evidence reasonably satisfactory to Landlord that the [***] has been met. If Landlord determines that the Default Conditions and Tenant has failed to cure such default within any applicable notice and cure period set forth in this Leasethe [***] Condition have been satisfied, then Landlord shall so notify Tenant, whereupon Tenant shall have no further right to reduce the amount of the provide Landlord with a substitute Letter of Credit as described herein. Any reduction in the Letter of Credit shall be accomplished by Tenant providing Landlord with either a substitute letter of credit in the reduced amountamount and otherwise satisfying the conditions of Section 26, or an amendment to the existing L-C that reflects Letter of Credit reducing it to the reduced amount. B. Provided that, andas of the date of Tenant’s Burn-Down Request (as hereinafter defined), if (i) the Default Conditions are then being satisfied, (ii) the [***] Condition has been satisfied and (iii) Tenant shall then have a substitute Lmarket capitaliation equal to or in excess of XXXXXXX for at least ten (10) consecutive Business Days (such condition (iii), the “Market Cap Condition”), Tenant shall have the right, by written request given on or after the applicable Reduction Date (as hereinafter defined) (“Tenant’s Burn-C is provided, once Landlord receives the substitute Letter of Credit, Landlord shall return Down Request”) to Tenant reduce the Letter of Credit that such substitute letter Amount to the amounts on the dates: (a) XXXXXXX effective as of credit has replaced. Within ninety the date twenty six (9026) days months after the expiration Rent Commencement Date (“First Reduction Date”), (b) XXXXXXX effective as of this Leasefourth (4th) anniversary of the Rent Commencement Date (“Second Reduction Date”) and (c) XXXXXXX effective as of the sixth (6th) anniversary of the Rent Commencement Date (“Third Reduction Date”; the First Reduction Date, the Second Reduction Date and the Third Reduction Date are herein sometimes each referred to as a “Reduction Date”). Tenant’s Burn-Down Request shall be accompanied by Tenant’s most recent financial statements (audited, if available, or otherwise certified as being true and correct by Tenant’s chief financial officer). If Landlord determines that the Default Conditions, the [***] Condition and the Market Cap Condition have been met, Landlord shall return so notify Tenant, whereupon Tenant shall provide Landlord with a substitute Letter of Credit in the reduced amount and otherwise satisfying the conditions of Section 26, or an amendment to Tenant any remaining proceeds the Letter of Credit reducing it to the L-C that have not been applied by Landlord pursuant to this Article 21applicable reduced amount.