Reduction in Letter of Credit Amount. Notwithstanding the foregoing provisions of this Section 4 to the contrary, if, as of each anniversary of the Commencement Date (each a “Reduction Date”) the Reduction Conditions (defined below) are met, then, upon written request by Subtenant (and provided that the Reduction Conditions remain satisfied as of the date of Subtenant’s delivery of such written request to Sublandlord), the Letter of Credit may be reduced by an amount equal to $836,802.20 as of the later of (x) each such Reduction Date and (y) the date of delivery of Tenant’s request for such a reduction; provided, however, that in no event will the Letter of Credit Amount be reduced below $2,510,462.64. Any such reduction may be accomplished, at Subtenant’s option, by either (i) Subtenant delivering to Sublandlord an amendment to the then-existing Letter of Credit pursuant to which the Letter of Credit Amount is appropriately reduced, such amendment to be in form and substance reasonably satisfactory to Sublandlord, or (ii) by Subtenant’s delivery to Sublandlord of a Replacement Letter of Credit in the appropriately reduced Letter of Credit Amount (in which event, Sublandlord agrees to promptly agree to execute such documentation as may be required by the Issuing Bank to cause the termination of the previously held Letter of Credit). As used herein, the “Reduction Conditions” shall mean 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 in Letter of Credit Amount. Subject to the provisions of this Section 6.7 and provided the Letter of Credit has been increased by the Additional Letter of Credit Amount in accordance with Section 6.6 of this Lease, and that Tenant is not then in actual Default of any provision of this Lease beyond the applicable notice and cure period, and provided that no event of Default has occurred at any time prior to the forty-eighth (48th) full calendar month of the Term, Tenant shall then be entitled to reduce the Letter of Credit by the Additional Allowance Letter of Credit Amount on the last day (the “Reduction Date”) of the forty-eighth (48th) full calendar month of the Term and Landlord shall reasonably cooperate to enable Tenant to effect such reduction, at which point the Letter of Credit shall remain in place in the original Letter of Credit Amount for the remainder of the Term. If Tenant is entitled to reduce the Letter of Credit on the Reduction Date, Landlord shall execute any documents reasonably requested by Tenant and the issuing bank to effectuate the applicable reduction of the Letter of Credit (which may include cancellation of the existing Letter of Credit and re-issuance of a new Letter of Credit in the original Letter of Credit Amount), within fifteen (15) days after Tenant submits such documents to Landlord for execution provided Tenant is not then in Default under this Lease.
Reduction in Letter of Credit Amount. Subject to the provisions of this Subparagraph 7(f) and provided that Tenant has not been in default or breach of any provision of the Lease beyond any applicable cure periods at any time prior to an applicable Reduction Date (defined below), then Tenant shall be entitled to reduce the Letter of Credit Amount effective as of the last day of the twelfth (12th), twenty-fourth (24th), thirty-sixth (36th) and forty-eighth (48th) months of the initial Term (individually, a “Reduction Date” and collectively, the “Reduction Dates”) as follows: On each Reduction Date, Tenant shall be entitled to reduce the Letter of Credit Amount by an amount equal to Two Hundred Twenty-Five Thousand and No/100 Dollars ($225,000.00). For example, if Tenant has not been in default or breach of any provision of this Lease beyond any applicable cure periods at any time prior to the Reduction Date occurring on the last day of the twelfth (12th) month of the Term and Tenant duly and timely pays the Monthly Basic Rent and additional rent that is due and payable on the first day of the twelfth (12th) month, Tenant would be entitled to reduce the Letter of Credit Amount by Two Hundred Twenty-Five Thousand and No/100 Dollars ($225,000.00) to One Million Eight Hundred Seventy-Five Thousand and No/100 Dollars ($1,875,000.00) effective as of the last day of the twelfth (12th) month of the initial Term. If Tenant is eligible for a Letter of Credit reduction on a Reduction Date, Landlord shall execute any documents reasonably requested by Tenant and the issuing bank to effectuate the applicable release of the Letter of Credit, within fifteen (15) days after Tenant submits such documents to Landlord for execution provided Tenant is not then in default under this Lease.
Reduction in Letter of Credit Amount. On the condition that (a) Tenant is not in default at the time of the applicable reduction, (b) has not been in default of its monetary obligations under this Lease more than two times during the Term, (c) Tenant has had a net income for the immediately preceding fiscal year of Tenant prior to the applicable reduction (the “Profitability Test”) as shown on Tenant’s Consolidated Statement of Operations in its most recent audited annual report, and (d) to the extent Tenant is no longer a public company, Tenant provides Landlord with an audited statement reporting satisfaction of the Profitability Test, then the Letter of Credit Amount shall be reduced as follows:
Reduction in Letter of Credit Amount. Tenant shall have the right to reduce the amount of the Letter of Credit so that the reduced Letter of Credit Amount will be $142,099.20 effective as of the first day of the thirty-sixth (36th) full calendar month following the Commencement Date. Notwithstanding anything to the contrary contained herein, if Tenant has been in default under this Lease at any time prior to the effective date of any reduction of the Security Deposit and Tenant has failed to cure such default within any applicable cure period, then Tenant shall have no 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 a substitute Letter of Credit in full compliance with the terms of this Paragraph 8.3 and in the reduced amount.
Reduction in Letter of Credit Amount. Provided that Subtenant is not in default (beyond all applicable notice and cure periods) at the time of such request, the Letter of Credit Amount may be reduced as follows: (i) to Seven Hundred Thirty-Seven Thousand Six Hundred Forty-Five AND 76/100 Dollars ($737,645.76), at any time after December 31, 2017; and (ii) to Three Hundred Sixty-Eight Thousand Eight Hundred Twenty-Two AND 88/100 Dollars ($368,822.88), at any time after December 31, 2019. Any reduction in the Letter of Credit Amount shall be accomplished by Subtenant providing Sublandlord with a substitute letter of credit or amendment thereto in the reduced amount. In no event shall the Letter of Credit Amount be reduced below Three Hundred Sixty-Eight Thousand Eight Hundred Twenty-Two AND 88/100 Dollars ($368,822.88) during the Term.
Reduction in Letter of Credit Amount. Provided that no Default exists or has previously occurred, Tenant may reduce the Letter of Credit Amount so that the reduced Letter of Credit Amount becomes $238,675.80 effective as of the third (P) anniversary of the Commencement Date. Any such reduction in the Letter of Credit Amount shall be accomplished by Tenant’s delivery to Landlord of a substitute letter of credit in the reduced amount or an amendment to the existing Letter of Credit reflecting the reduced amount.
Reduction in Letter of Credit Amount. To the extent that Tenant is not in default under this Lease effective as of the applicable Reduction Date (defined below) and has not been in default under this Lease, beyond any applicable notice and cure period prior to the Reduction Date, then the Letter of Credit Amount shall be reduced by twenty-five percent (25%) on (i) the first day of the twenty-fifth (25th) month of the Term, (ii) the first day of the thirty-seventh (37th) month of the Term, and (iii) the first day of the forty-ninth (49th) month of the Term (each date referenced in items (i) through (iii) above shall be referred to herein as the "Reduction Date"). To the extent that Tenant is entitled to a reduction of the Letter of Credit pursuant to the terms of this Section 27.6, then Tenant shall have the right to reduce the Letter of Credit Amount as set forth above via the delivery to Landlord of either (x) an amendment to the existing Letter of Credit (in form and content reasonably acceptable to Landlord) modifying the Letter of Credit Amount to the amount then required under this Article 27, or (y) an entirely new Letter of Credit (in the form and content otherwise required in this Article 27) in the total Letter of Credit Amount then required under this Article 27.
Reduction in Letter of Credit Amount. The amount of the Letter of Credit may be reduced by Tenant from 5% of the Maximum Lease Amount to 2.5% of the Maximum Lease Amount after all of the following conditions have been met: [i] the Earnout Conditions have been satisfied; and [ii] no Event of Default has occurred and is continuing under this Lease.
Reduction in Letter of Credit Amount. Provided no Event of Default has occurred hereunder, the Letter of Credit Amount shall be automatically reduced in accordance with the following dates and amounts: Lease Month Required Letter of Credit Amount Commencement Date – December 31, 2021 $1,500,000 January 1, 2022 – December 31,2022 $1,250,000 January 1, 2023 – December 31, 2023 $1,000,000 January 1, 2024 – December 31, 2024 $750,000 January 1, 2025 – December 31, 2025 $500,000 January 1, 2026 - end of Term $250,000
