Common use of Reduction of Security Deposit Clause in Contracts

Reduction of Security Deposit. (a) Commencing as of the last day of the twelfth (12th) month of the Lease Term and continuing on the last day of each twelve (12) month period thereafter through and including the last day of the sixtieth (60th) month of the Lease Term, the Security Deposit shall be reduced by Two Hundred Seventy-Eight Thousand Five Hundred Five and 56/100 Dollars ($278,505.56), provided that Tenant is not in default hereunder (provided that if there is a default hereunder that has occurred, but the cure period related thereto has not expired, the Security Deposit shall be reduced so long as Tenant does cure such default within such cure period). Following each such reduction in the Security Deposit represented by the Letter of Credit, Landlord shall (at no cost to Landlord) (i) accept from the issuer of the Letter of Credit an amendment to the Letter of Credit reducing the Letter of Credit by Two Hundred Seventy-Eight Thousand Five Hundred Five and 56/100 Dollars ($278,505.56), but which does not otherwise amend or modify the same, and (ii) execute and deliver to the issuer of the Letter of Credit such instruments as may be reasonably required by such issuer to effectuate such reduction. Following each such reduction in the Security Deposit represented by cash, Landlord shall refund to Tenant, at Tenant’s option, by check or wire transfer or credit against the next Monthly Rental Installment(s) due, Two Hundred Seventy-Eight Thousand Five Hundred Five and 56/100 Dollars ($278,505.56). (b) Notwithstanding the provisions of subsection (a) above, in no event shall the Security Deposit be reduced to an amount less than Two Hundred Seventy-Eight Thousand Five Hundred Five and 58/100 Dollars ($278,505.58). (c) For illustrative purposes, the table below shows the schedule of Security Deposit reductions pursuant to this Section 4.02 provided Tenant has met all requirements set forth above. Last day of twelfth (12th) month of the Lease Term $ 278,505.56 $ 1,392,527.82 Last day of twenty-fourth (24th) month of the Lease Term $ 278,505.56 $ 1,114,022.26 Last day of thirty-sixth (36th) month of the Lease Term $ 278,505.56 $ 835,516.70 Last day of forty-eight (48th) month of the Lease Term $ 278,505.56 $ 557,011.14 Last day of sixtieth (60th) month of the Lease Term $ 278,505.56 $ 278,505.58

Reduction of Security Deposit. (a) Commencing Notwithstanding anything to the contrary provided herein, so long as of the last day of the twelfth (12th) month of the Lease Term and continuing on the last day of each twelve (12) month period thereafter through and including the last day of the sixtieth (60th) month of the Lease Term, the Security Deposit shall be reduced by Two Hundred Seventy-Eight Thousand Five Hundred Five and 56/100 Dollars ($278,505.56), provided that Tenant Lessee is not in default of Lessee's obligations hereunder beyond applicable notice and cure periods, and so long as Lessee has a positive EBITDA margin over the prior two financial quarters (provided that if there as evidenced by financial statements delivered by Lessee to Lessor at least five (5) business days prior to the first day of the month in which the abatement is a default hereunder that has occurredto occur), but the cure period related thereto has not expired, amount of the Security Deposit listed in Section 1.7(c) of the Lease Form shall be amended and reduced so long as Tenant does cure such default within such cure period). Following each such reduction in the Security Deposit represented by the Letter of Credit, Landlord shall (at no cost an amount equal to Landlord) (i) accept from the issuer of the Letter of Credit an amendment to the Letter of Credit reducing the Letter of Credit by Two Thirty Seven Thousand Four Hundred Seventy-Eight Thousand Five Hundred Five Eighty and 56/100 37/100 Dollars ($278,505.56), but which does not otherwise amend or modify 37,480.37) on the same, and (ii) execute and deliver to the issuer first day of the Letter 25th month of Credit the Term. At Lessor's election, such instruments as reduction may be reasonably required by such issuer given to effectuate such reduction. Following each such reduction Lessee in the Security Deposit represented by cash, Landlord shall refund to Tenant, at Tenant’s option, by check or wire transfer or form of a credit against Rent for the next Monthly Rental Installment(s) due, Two Hundred Seventy-Eight Thousand Five Hundred Five and 56/100 Dollars ($278,505.56)25th month of the Term. (b) Notwithstanding anything to the provisions contrary provided herein, so long as Lessee is not in default of subsection Lessee's obligations hereunder beyond applicable notice and cure periods, and so long as Lessee has a positive EBITDA margin over the prior two financial quarters (aas evidenced by financial statements delivered by Lessee to Lessor at least five (5) abovebusiness days prior to the first day of the month in which the abatement is to occur), in no event shall the amount of the Security Deposit listed in Section l.7(c) of the Lease Form (as such amount may already be reduced to during the 25th month of the Term in accordance with the terms of Paragraph 57(a)) shall be amended an amount less than Two equal to Thirty Seven Thousand Four Hundred Seventy-Eight Eighty and 37/100 Do ($37,480.37) on the first day of the 37th month of the Term. At Lessor's election, such reduction may be given to Lessee in the form of a credit against Rent for the 37th month of the Term, and after such reduction, the Security Deposit shall equal Thirty Seven Thousand Five Four Hundred Five Eighty and 58/100 47/100 Dollars ($278,505.58). (c37,480.47) for the remainder of the Term. For illustrative purposesthe avoidance of doubt, in the table below shows event the schedule of Security Deposit reductions is not reduced during the 25th month pursuant to this Section 4.02 provided Tenant has met all requirements set forth above. Last day of twelfth (12th) Paragraph 57(a), Lessee shall still be entitled to a $37,480.37 reduction in the Security Deposit during the 37th month of the Lease Term $ 278,505.56 $ 1,392,527.82 Last day pursuant to and in accordance with the terms and conditions of twenty-fourth (24th) month of the Lease Term $ 278,505.56 $ 1,114,022.26 Last day of thirty-sixth (36th) month of the Lease Term $ 278,505.56 $ 835,516.70 Last day of forty-eight (48th) month of the Lease Term $ 278,505.56 $ 557,011.14 Last day of sixtieth (60th) month of the Lease Term $ 278,505.56 $ 278,505.58this Paragraph 57(b).

Reduction of Security Deposit. Provided that Tenant is not then in Default of its obligations under this Lease, then (ai) Commencing as on the fifth (5th) anniversary of the last day of Rent Commencement Date, Tenant shall have right to have the twelfth (12th) month of the Lease Term and continuing on the last day of each twelve (12) month period thereafter through and including the last day of the sixtieth (60th) month of the Lease Term, the L-C Security Deposit shall required hereunder to be reduced by to an amount equal to Six Million Two Hundred Seventy-Eight Fifty Thousand Five Hundred Five and 56/100 Dollars ($278,505.566,250,000.00), (ii) provided the reduction in clause (i) has occurred, on the eighth (8th) anniversary of the Rent Commencement Date, Tenant shall have right to have the L-C Security Deposit required hereunder to be reduced to an amount equal to Three Million One Hundred Twenty-Five Thousand Dollars ($3,125,000.00) (the “Minimum L-C Amount”). Moreover, provided that Tenant is not then in default hereunder Default of its obligations under this Lease beyond the expiration of any applicable cure or grace period, in the event that Tenant shall receive a rating by either (provided that if there is a) Standard & Poor’s of BBB or better, or (b) Xxxxx’x of Baa2 or better, and shall maintain same for at least six (6) months in a default hereunder that has occurred, but the cure period related thereto has not expiredrow, the Security Deposit under this Lease immediately shall be reduced so long as to zero ($0.00), and Landlord shall return the existing L-C Security Deposit to Tenant does cure within ten (10) days following Notice to Landlord of such default within such cure period)investment grade rating duration of Tenant (which Notice shall provide reasonable evidence thereof) and upon Tenant’s compliance with the next sentence of this Section 21.4. Following each such Any reduction in of the Security Deposit represented as set forth in this Section 21.4 (other than as provided in the immediately preceding sentence) shall be accomplished by Tenant by providing an amendment or modification to the Letter of Credit, Landlord shall existing L-C (at no cost in form and substance reasonably acceptable to Landlord) or by Tenant providing a replacement L-C (i) accept from the issuer of the Letter of Credit an amendment pursuant to the Letter terms and conditions of Credit reducing the Letter of Credit by Two Hundred Seventy-Eight Thousand Five Hundred Five and 56/100 Dollars ($278,505.56), but which does not otherwise amend or modify the same, and (ii) execute and deliver to the issuer of the Letter of Credit such instruments as may be reasonably required by such issuer to effectuate such reduction. Following each such reduction in the Security Deposit represented by cash, Landlord shall refund to Tenant, at Tenant’s option, by check or wire transfer or credit against the next Monthly Rental Installment(s) due, Two Hundred Seventy-Eight Thousand Five Hundred Five and 56/100 Dollars ($278,505.56). (b) Notwithstanding the provisions of subsection (a) above, in no event shall the Security Deposit be reduced to an amount less than Two Hundred Seventy-Eight Thousand Five Hundred Five and 58/100 Dollars ($278,505.58). (c) For illustrative purposes, the table below shows the schedule of Security Deposit reductions pursuant to this Section 4.02 provided Tenant has met all requirements set forth above. Last day of twelfth (12th21.4) month of the Lease Term $ 278,505.56 $ 1,392,527.82 Last day of twenty-fourth (24th) month of the Lease Term $ 278,505.56 $ 1,114,022.26 Last day of thirty-sixth (36th) month of the Lease Term $ 278,505.56 $ 835,516.70 Last day of forty-eight (48th) month of the Lease Term $ 278,505.56 $ 557,011.14 Last day of sixtieth (60th) month of the Lease Term $ 278,505.56 $ 278,505.58for such reduced amount.