General Business Risks Clause Samples

General Business Risks. The projections included in Exhibit 4 are based on a variety of assumptions which, if incorrect, could affect the accuracy of the projections. While the attached projections included in Exhibit 4 incorporate a series of assumptions reflecting future events at the Property and in the Orange County leasing market, they do not incorporate a wide range of potential risks that could impact the eventual performance of the Property. These risks may include (i) the rejection of the Denny's leases for 158,362 square feet as part of Flagstar's reported restructuring, the outcome of which could lead to lower achieved rents on this space, (ii) the development of competitive office buildings on the Development Parcel, which could negatively impact leasing efforts, (iii) the possibility of aggressive overbuilding of competitive office product in the Orange County market, which could lead to depressed rental rates and increased vacancy rates, (iv) the inability of management to find tenants willing to lease the sub-grade concourse space at cost effective rents, (v) litigation related to the surrounding Development Parcel, (vi) a general and pronounced downturn in the local economy or continued mergers and consolidations in industries that are major tenants in the Orange County marketplace and (vii) physical catastrophes that might damage the Property and render it partially or fully unfunctional. In addition, the financial terms (including free rent periods and tenant improvement allowances) may vary significantly from the assumptions that underlie the projections attached as Exhibit 4. Tenants in the Property may default under their leases or otherwise cease making rental payments, thereby negatively affecting projected cash flow from the Property and Jamboree LLC's ability to make payments on the notes issued under the Plan. Moreover, projected expense figures for Property operations may be lower than actual costs. Because the Property is now over 20 years old, capital replacement and repair costs may significantly exceed those assumed in the projections. Finally, there is no assurance that Jamboree LLC will be able to sell or refinance the Property for an amount sufficient to pay in full the outstanding principal balance of the New Notes within five years. Notwithstanding CWOP's conclusions that the restructuring as effected through the Plan is feasible, there can be no assurance that payments under the New Notes can be made if the real estate market declines further ...