Reduction in Letter of Credit. Provided that Tenant (i) has not been in default of any of its monetary or material non-monetary obligations under this Lease in the twelve (12) months prior to the applicable Reduction Date, as hereafter defined, and (ii) has not been in default under this Lease beyond applicable notice and cure periods at any time during the Term (collectively, “Reduction Conditions”), the Letter of Credit shall be reduced as set forth below on each of the Reduction Dates. As used herein, the “Hard Reduction Date” shall be the first day of the forty-third (43rd) full calendar month following the Rent Commencement Date (e.g., on June 1, 2019 if the Rent Commencement Date is November 10, 2015) and the “Revenue Reduction Date” shall be the first day of the month following the end of the first calendar year in the Term in which Tenant’s total annual revenue equals or exceeds Seventy Million and 00/100 Dollars ($70,000,00.00), as evidenced by a certified copy of Xxxxxx’s most recent audited financial statements. Provided that the Reduction Conditions are met on the applicable Reduction Date, the Letter of Credit shall be reduced by Five Hundred Thousand and 00/100 Dollars ($500,000.00), effective as of the Hard Reduction Date, and by Five Hundred Thousand and 00/100 Dollars ($500,000.00), effective as of the Revenue Reduction Date. The parties acknowledge that the Revenue Reduction Date may occur before or after the Hard Reduction Date, or may never occur. Tenant shall request such reduction in a written notice to Landlord after the applicable Reduction Date, and if 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 (in which event Landlord shall forthwith return the previously held Letter of Credit), or an amendment to the Letter of Credit reducing it to the reduced amount. If the Reduction Conditions are not met on a Reduction Date, Tenant shall have no further right to reduce the amount of the Letter of Credit pursuant to this Section 7.3.
Reduction in Letter of Credit. On the first (1st) anniversary of the Lease Commencement Date, provided no Event of Default has occurred, Landlord shall return to Tenant Two Hundred Thousand Dollars ($200,000.00), of the original One Million Dollar ($1,000,000.00), original Security Deposit (or, if the Security Deposit is in the form of a Letter of Credit, to permit Tenant to supply a substitute Letter of Credit in amount equal to Eight Hundred Thousand Dollars ($800,000.00). On the second (2nd) anniversary of the Lease Commencement Date, provided no Event of Default has occurred, Landlord shall return to Tenant an additional Two Hundred Thousand Dollars ($200,000.00) of the original One Million Dollar ($1,000,000.00), original Security Deposit (or, if the Security Deposit is in the form of a Letter of Credit, to permit Tenant to supply a substitute Letter of Credit in amount equal to Six Hundred Thousand Dollars ($600,000.00). On the third (3rd) anniversary of the Lease Commencement Date, provided no Event of Default has occurred, Landlord shall return to Tenant an additional Two Hundred Thousand Dollars ($200,000.00) of the original One Million Dollar ($1,000,000.00), original Security Deposit (or, if the Security Deposit is in the form of a Letter of Credit, to permit Tenant to supply a substitute Letter of Credit in amount equal to Four Hundred Thousand Dollars ($400,000.00). On the fourth (4th) anniversary of the Lease Commencement Date, provided no Event of Default has occurred, Landlord shall return to Tenant an additional Two Hundred Thousand Dollars ($200,000.00) of the original One Million Dollar ($1,000,000.00), original Security Deposit (or, if the Security Deposit is in the form of a Letter of Credit, to permit Tenant to supply a substitute Letter of Credit in amount equal to Two Hundred Thousand Dollars ($200,000.00). If the Letter of Credit is allowed to be reduced down to Two Hundred Thousand Dollars ($200,000) pursuant to this Section G, the Letter of Credit will be maintained in the full amount of Two Hundred Thousand Dollars ($200,000) for the remainder of the Term, and subject to all of the provisions of this Addendum #1. Upon any draw of the Letter of Credit, regardless of the then required amount of the Letter of Credit, Landlord and Tenant agree that the reduction contemplated herein shall be null and void, and Tenant shall immediately restore the Letter of Credit, or provide a new Letter of Credit, or provide cash or immediately available funds in the full amount ...
Reduction in Letter of Credit. Notwithstanding anything to the contrary contained herein, provided that (1) no Event of Default has occurred or is occurring, (2) Tenant receives a minimum of $50,000,000 in additional funding through a Series C funding and/or an initial public offering, and (3) Tenant can demonstrate that its cash flow projections are and will be positive throughout the remainder of the Term, then Tenant shall be permitted to reduce the amount of the Letter of Credit on a one-time basis by $86,253.46 so that the amount of the Letter of Credit remaining after such reduction is $129,380.19. Subject to satisfaction of the foregoing conditions, the amount of the Letter of Credit may be reduced by Tenant’s delivery of written notice to Landlord requesting such reduction. Upon Landlord’s receipt of such notice and confirmation of Tenant’s satisfaction of the foregoing conditions, Tenant shall, at Landlord’s request, promptly deliver to Landlord a replacement Letter of Credit which is in the amount of the reduced amount, and which in all other respects is in conformance with the Letter of Credit requirements described in Section 6(b) above. Notwithstanding the foregoing, in no event shall any such reduction be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder or a waiver of any claims against Tenant. Moreover, if an Event of Default occurs at any time after the occurrence of such reduction, then Tenant shall be required, within five (5) Business Days following Landlord’s notice, to restore the Letter of Credit to the Minimum Amount. The foregoing reduction shall be personal to the named Tenant.
Reduction in Letter of Credit. FOHP agrees not to draw against the Letter of Credit unless it first exhausts all its rights against (i) any letter of credit which is payable to FOHP and secured by physicians who are providers to FOHP-NJ and shareholders of FOHP (collectively, "Physician Backed Letters of Credit," and individually, a "Physician Backed Letter of Credit"), (ii) any guaranty of a hospital which is a provider to FOHP-NJ, or guaranty of an affiliate thereof, which guarantees all or a portion of the capital obligations of FOHP to FOHP-NJ (collectively, "Institutional Guaranties," and individually, an "Institutional Guaranty"), (iii) the letter of credit payable to FOHP secured by Xxxxxxx X. Xxxxxxx with Chemical Bank in the amount of three million ($3,000,000) dollars (the "Xxxxxxx XX"), and (iv) the letter of credit payable to FOHP secured by Xxxxxxx Xxxxxxxx with CoreStates Bank in the amount of three hundred thousand ($300,000) dollars (the "Xxxxxxxx XX"). In addition, in the event FOHP determines that it no longer requires all of (a) the Letter of Credit, (b) the Physician Backed Letters of Credit, (c) the Institutional Guaranties, (d) the Xxxxxxx XX, and (e) the Xxxxxxxx XX and thereby desires to reduce or terminate one or more of such instruments, FOHP will reduce or terminate the Letter of Credit before reducing or terminating any Physician Backed Letter of Credit, any Institutional Guaranty, the Xxxxxxx XX or the Xxxxxxxx XX.
Reduction in Letter of Credit. After the acceptance of any Improvement, the amount which the County is entitled to draw on the Letter of Credit shall be reduced by an amount equal to ninety percent (90%) of the Quoted cost of the accepted Improvement, as shown on Exhibit B. Upon completion of an Improvement, at the written request of Subdivider or Issuer, and if neither the Subdivider nor Issuer is then in default under this agreement or the Letter of Credit, the County shall complete, execute, and deliver to the Issuer a reduction letter verifying the acceptance of the Improvement and documenting that the Stated Amount has been reduced by stating the balance of the Stated Amount remaining after the reduction required by the first sentence of this Paragraph. No later than sixty (60) days after its receipt of a written request to reduce the Stated Amount submitted by the Subdivider or the Issuer, the County shall determine the Estimated Remaining Cost and shall complete, execute, and deliver to the Issuer a reduction letter documenting that the Stated Amount has been reduced to the Estimated Remaining Cost if the County determines the Stated Amount exceeds the Estimated Remaining Cost. Notwithstanding the preceding sentence, the County shall not be required to authorize reductions in the Stated Amount more frequently than every ninety (90) days. As used in this Paragraph, Estimated Remaining Costs means the amount the County estimates to be the cost of completing all Improvements which are incomplete as of the time of such estimate. County’s Obligations
Reduction in Letter of Credit. Notwithstanding the foregoing provisions of this Section 6 to the contrary, provided that: (A) Tenant has not been late in the payment of any rent due under the Lease during the immediately preceding twelve (12)-month period more than twice, (B) no Event of Default by Tenant under this Lease has occurred and is still continuing as of the effective date of reduction, and (C) Tenant has achieved a net income (excluding stock-based compensation) equal to or greater than $10,000,000 in each of the two
Reduction in Letter of Credit. As of the commencement of the Twenty-Fifth (25th) and Thirty-Seventh (37th ) full calendar month of the Lease Term, Tenant may request in writing of Landlord that the amount of L/C amount be reduced by One Hundred Thousand Dollars ($100,000.00) on each such date (i.e., as of the commencement of the Twenty-Fifth (25th) full calendar month of the Lease Term, the L/C may be reduced to Two Hundred Thousand Dollars ($200,000.00), and, provided that the L/C was reduced by One Hundred Thousand Dollars ($100,000.00) as of the commencement of the Twenty-Fifth (25th) full calendar month of the Lease Term, the L/C may be reduced to One Hundred Thousand Dollars ($100,000.00) as of the commencement of the Thirty-Seventh (37th) full calendar month of the Lease Term). Provided that prior to each such date Tenant has not previously been in monetary default of this Lease, Tenant may exchange a new L/C issued in the lower amount with Landlord and Landlord shall provide the original L/C to Tenant upon receipt of the new L/C issued in the lower amount.
Reduction in Letter of Credit. After the acceptance of any improvement, the amount, which the City is entitled to draw on the Letter of Credit, shall be reduced by an amount equal to ninety percent (90%) of the Quoted cost of the accepted improvement, as shown on Exhibit B. Upon completion of an improvement, at the written request of Subdivider or Issuer, and if neither the Subdivider nor Issuer is then [in] default under this agreement or the Letter of Credit, the City shall complete, execute, and deliver to the Issuer a reduction letter verifying the acceptance of the improvement and documenting that the stated amount has been reduced by stating the balance of the stated amount remaining after the reduction required by the first sentence of this Paragraph. No later than sixty (60) days after its receipt of a written request to reduce the stated amount submitted by the Subdivider or the Issuer, the City shall determine the estimated remaining cost and shall complete, execute, and deliver to the Issuer a reduction letter documenting that the Stated Amount has been reduced to the estimated remaining cost if the City determines the stated amount exceeds the estimated remaining cost. Notwithstanding the preceding sentence, the City shall not be required to authorize reductions in the stated amount more frequently than every ninety - (90) days. As used in this paragraph, “Estimated Remaining Cost” means amount the City estimated to be the cost of completing all improvements, which are incomplete as of the time of such estimate.
Reduction in Letter of Credit. At any time after the third anniversary of the Lease, and only in the event Tenant satisfies each of the following conditions to Landlord's reasonable satisfaction, the LOC Amount may be reduced to an amount equal to One Hundred Fifty Thousand and no/100 Dollars ($150,000.00).: (i) Tenant is not and has not been in default under the terms of this Lease beyond any applicable cure period; (ii) Tenant shall deliver to Landlord for review Tenant's financial statements prepared in accordance with generally accepted accounting principles and audited by a nationally recognized public accounting firm acceptable to Landlord, and any other financial information reasonably requested by Landlord ("Tenant's Financial Information"); and (iii) Tenant provides to Landlord ten (10) days prior written notice of any such deduction; and (iv) the LOC provides that the issuing bank shall notify Landlord in writing i at least five (5) business days prior to any such reduction. In the event that such reduction to the LOC is made and, subsequently, Tenant fails to meet any of the above conditions for a period of (thirty (30) days following delivery by Landlord of written notice of any such failure. Tenant shall within forty-eight (48) hours, increase the face amount of the LOC to an amount equal to $300,000.00.
Reduction in Letter of Credit. For purposes hereof, the “Letter of Credit Reduction Conditions” shall mean the following: (i) no default by Tenant shall have occurred and be continuing, and (ii) Tenant shall have provided evidence reasonably satisfactory to Landlord that Tenant has secured and received funding of no less than $45,000,000.00 which funds can be properly added to Tenant’s balance sheet. Provided that the Letter of Credit Reduction Conditions have been met, the Letter of Credit may be reduced to $1,400,000.00. 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 Letter of Credit Reduction Conditions have been met, such determination to be made reasonably and in good faith and without undue delay, 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.
