Reduction Conditions means (i) Tenant is not in Default and no other Draw Event has occurred on or prior to such anniversary date, and (ii) Landlord has not delivered a notice of default or breach of this Lease to Tenant hereunder during the previous calendar year, regardless of whether such default or breach was cured by Tenant within any applicable grace or cure period; provided, however, that any such notice of default or breach relating to a non-monetary default which was disputed, in good faith, by Tenant and ultimately determined (by agreement of the parties, arbitration or judicial action) not to be a default or breach shall not be considered for purposes of determining whether such condition has been met.
Reduction Conditions means the following conditions have been satisfied:
Reduction Conditions means the following: (i) no Event of Default by Tenant shall have occurred during the term of the Lease and no Event of Default by Tenant shall have occurred and be continuing, and (ii) this Lease is in full force and effect. Provided that the Reduction Conditions have been met, the Security Deposit may be reduced to $3,291,614.10 effective as of the third (3rd) anniversary of the Rent Commencement Date and $2,633,291.30 effective as of the fifth (5th) anniversary of the Rent Commencement Date. The reduction in the Letter of Credit shall be accomplished as follows: Tenant shall request such reduction in a written notice to Landlord, and if Landlord determines that the Reduction Conditions have been met, Landlord shall so notify Tenant, whereupon Tenant shall provide Landlord with a substitute Letter of Credit in the reduced amount, or an amendment to the Letter of Credit reducing it to the reduced amount.
Examples of Reduction Conditions in a sentence
On or after January 1, 2020, the Current Interest Rate shall be reduced by one-quarter percent (0.25%) if the Interest Rate Spread Reduction Conditions are satisfied during the 2019 calendar year.
For the avoidance of doubt, if the Interest Rate Spread Reduction Conditions were satisfied during both the 2019 calendar year and the 2020 calendar year, the total reduction in the Current Interest Rate shall be one-half percent (0.50%).
On or after January 1, 2021, the Current Interest Rate shall be reduced by one-quarter percent (0.25%) if the Interest Rate Spread Reduction Conditions are satisfied during the 2020 calendar year.
If Tenant is not entitled to reduce the Letter of Credit Amount as of a particular reduction effective date due to Tenant’s failure to satisfy the LC Reduction Conditions described above, then any subsequent reduction(s) Tenant is entitled to hereunder shall be reduced by the amount of the reduction Tenant would have been entitled to had Tenant satisfied the LC Reduction Conditions necessary for such earlier reduction.
If Tenant believes that it has satisfied all of the Reduction Conditions, then it shall request such reduction in writing to Landlord, which request shall certify to Landlord that all such Reduction Conditions have been satisfied and shall be accompanied by appropriate documentation evidencing the same.
More Definitions of Reduction Conditions
Reduction Conditions means that (1) Tenant is not in Monetary Default, (2) no Insolvency Event then exists, (3) no Insolvency Event involving Tenant has previously occurred, and (4) Tenant has had no more than two (2) previous Monetary Defaults, and both such Monetary Defaults were cured. As used herein, the “Reduction Date” shall mean the date(s) of expiration of the twenty fourth (24th), thirty sixth (36th), forty eighth (48th) and sixtieth (60th) full calendar months of the Term. If Tenant has failed to meet the Reduction Conditions or any of them as to any Reduction Date, then any subsequent reduction(s) Tenant is entitled to hereunder shall be reduced by the amount of the reduction Tenant would have been entitled to had Tenant not failed to satisfy the Reduction Conditions or any of them as to such earlier reduction. For example, if Tenant fails to meet the Reduction Conditions or any of them as to the first Reduction Date, but meets the Reduction Conditions for all subsequent Reduction Dates, then the face amount of the Letter of Credit will be reduced as of the second Reduction Date to $672,360.64, as of the third Reduction Date to $576,309.12, and as of the fourth Reduction Date to $480,257.60, and will thereafter not be reduced below such amount during the Term.
Reduction Conditions means all of the following conditions: (i) Lessee is not in default under any of the terms of Lease, as hereby amended, beyond applicable notice and cure periods, (ii) Lessee has not been in default under any of the terms of Lease, as hereby amended, during the twelve (12) month period prior to the date of reduction, (iii) Lessee has neither made a general assignment for the benefit of creditors, nor taken any corporate action in furtherance of bankruptcy or dissolution whether or not there exists any proceeding under an insolvency or bankruptcy law, nor has there been filed by or against Lessee any proceeding under an insolvency or bankruptcy law, nor the appointment of a trustee or receiver to take possession of all or substantially all of the assets of Lessee, nor any execution or other judicially authorized seizure of all or substantially all of Lessee’s assets located upon the Premises or of Lessee’s interest in the Lease, and (iv) Lessee’s tangible net worth is not less than Seventy-One Million Dollars ($71,000,000.00), as reasonably determined by Lessor, as evidenced by audited financial statements prepared in accordance with generally accepted accounting principles consistently applied by a nationally recognized certified public accounting firm. Contact Phones: IRREVOCABLE STANDBY LETTER OF CREDIT _____________, 20____ Our irrevocable standby Letter of Credit: No. Beneficiary: Applicant: [insert correct LANDLORD ENTITY] Attn: [insert NAME] [insert address] Amount: Exactly USD $_______ ( and /100 Dollars) Final Date of Expiration: [INSERT DATE WHICH IS 60 DAYS AFTER LEASE EXPIRATION DATE] We (the “Bank”) hereby issue our irrevocable standby Letter of Credit No. in Beneficiary’s favor for the account of the above-referenced Applicant, in the aggregate amount of exactly USD $ . This Letter of Credit is available with us at our above office by presentation of your draft drawn on us at sight bearing the clause: “Drawn under [INSERT NAME OF BANK] Letter of Credit No. ” and accompanied by the following:
Reduction Conditions means that (1) Tenant is not in Default, (2) no Issuing Bank Credit Event then exists, (3) no Insolvency Event then exists, (4) Tenant has not previously been in Default and no Insolvency Event has previously occurred, (5) no event which, with notice, the passage of time, or both, would constitute a Default, then exists, and (6) Tenant demonstrates to Landlord’s reasonable satisfaction that Tenant has been cash flow positive as a result of its business operations (not investment activity) for the immediately preceding four (4) consecutive calendar quarters as the applicable Reduction Date. As used herein, the “Reduction Dates” shall be the dates of expiration of the thirty-sixth (36th) and sixtieth (60th) full calendar months of the Term, respectively. For avoidance of doubt, if, as of the first (1st) Reduction Date, the Reduction Conditions are not satisfied, but, if, as of the next-succeeding Reduction Date, the Reduction Conditions are satisfied (which the parties acknowledged cannot be the case in the event that Reduction Condition (4) above was not satisfied as of the immediately preceding Reduction Date), Tenant shall be entitled to one (1) reduction in the Letter of Credit Amount in the amount of $1,363,054.25, as opposed to a cumulative or “catch up” reduction.
Reduction Conditions means that (A) Subtenant is not in default hereunder (after notice and the passage of any applicable cure period) and (B) Subtenant has not previously been in default hereunder (similarly defined) and (C) no notice of default from Sublandlord to Subtenant is then outstanding (regardless of whether the applicable cure period has expired).
Reduction Conditions means the following conditions which have been satisfied in Tenant’s annual audited financial statement for the applicable time period:
Reduction Conditions means (i) Tenant has completed an Initial Public Offering on a major market exchange (e.g., Nasdaq or the New York Stock Exchange), (ii) Tenant has a current ratio (i.e., current assets divided by current liabilities) greater than two (2),
Reduction Conditions means that (i) Tenant is not then in monetary Default hereunder and (ii) Tenant has not been in monetary Default hereunder during the immediately preceding twelve (12) month period and (iii) there is no then-currently outstanding notice of Default which has been issued by Landlord to Tenant which has not been cured. Each of the applicable reduction dates described in clauses (v), (w), (x), (y) and (z) above is referred to herein as a “Reduction Date”; if, as of an applicable Reduction Date, the Reduction Conditions do not apply, then the reduction described above shall not occur; however, if, as of the next-succeeding Reduction Date (or, if the applicable Reduction Date is the fourth Reduction Date, then upon any anniversary of the fourth Reduction Date) the Reduction Conditions do apply, then the face amount of the Letter of Credit shall be reduced in accordance with the schedule described above as it would have been reduced on the applicable reduction date had the Reduction Conditions been in existence, with the remaining Reduction Date(s) being moved back to the next Reduction Date upon which the Reduction Conditions exist. For example, if the Reduction Conditions do not apply as of the first (1st) Reduction Date, but the Reduction Conditions do apply as the second (2nd) Reduction Date, then the face amount of the Letter of Credit will be reduced, as of the Second Reduction Date, in the manner described above in clause (w), with further reductions being possible on the 4th 5th, and 6th anniversaries of the Commencement Date, if the Reduction Conditions apply. To avoid any doubt, in no event will Tenant be entitled to take advantage of two (2) reductions [(v) and (w), (w) and (x), (x) and (y) or (y) and (z)] on any single Reduction Date.