Common use of Reduction Option Clause in Contracts

Reduction Option. Notwithstanding anything to the contrary set forth in this Agreement, Sunrise may, by written notice to Marriott (the “Reduction Option Notice”) on or before the Reduction Option Outside Date, elect not to extend the terms of any or all of the Continuing Leases (the Leases that the Tenants have so elected not to extend, the “Option Facilities”), in which case Sunrise shall deliver to the Landlord, with a copy to Marriott, on or before the Reduction Option Outside Date, Terminating Lease Notices in respect of the Option Facilities and Continuing Lease Notices in respect of any other Continuing Leases that are not Option Facilities, if any, for which Sunrise had not previously sent to Landlord a Continuing Lease Notice. To the extent Sunrise so elects and complies with the notice requirements set forth in the immediately preceding sentence, then the following provisions shall be effective: (i) The definition of “Terminating Leases” shall automatically be deemed to include the Option Facilities; (ii) The definition of “Continuing Leases” shall automatically be deemed to exclude the Option Facilities; (iii) Schedules 1 and 2 attached hereto shall automatically be deemed to be amended accordingly; (iv) The available amount of the Letter of Credit shall be reduced consistent with Schedule 4 in respect of the Option Facilities and Marriott shall authorize such reduction in accordance with Section 4(d) hereof within ten (10) business days of the date of the Reduction Option Notice; (v) Marriott shall be authorized to send to the Landlord the Terminating Lease Notices and the Continuing Lease Notices, if any, that were delivered by Sunrise in connection with the Reduction Option Notice, as set forth above; and (vi) If the Option Facilities constitute all of the Continuing Leases, then Sunrise shall pay to Marriott an amount equal to five hundred thousand dollars ($500,000) as a reduction fee.

Reduction Option. Notwithstanding anything Provided that Tenant is not in default hereunder, Tenant shall have a one-time option (the "Reduction Option") to reduce the size of the Premises by excluding therefrom a portion equal to approximately 12,237 rentable square feet as shown on Exhibit "A" attached hereto (the "Excluded Space"). Such Reduction Option shall be subject to the contrary set forth in this Agreementfollowing terms and conditions: a. The Reduction Option shall be effective as of April 30, Sunrise may2003 (the "Reduction Date"), and Tenant shall exercise the Reduction Option by providing Landlord with written notice to Marriott (the “"Reduction Option Notice”") thereof on or before July 31, 2002 (the "Reduction Notice Deadline"), including specificity as to square footage and location of the Excluded Space. Such Reduction Notice shall be effective only if it is given to Landlord by the Reduction Notice Deadline; accordingly, if Tenant has not given its Reduction Notice to Landlord prior to the Reduction Notice Deadline, this Reduction Option Outside Dateshall expire and be of no further force or effect, elect not and Tenant shall have no right or option to extend reduce the terms of any or all size of the Continuing Leases (the Leases that the Tenants have so elected not Premises pursuant to extend, the “Option Facilities”), in which case Sunrise shall deliver to the Landlord, with a copy to Marriott, on or before this paragraph at any time after the Reduction Option Outside DateNotice Deadline. If Tenant fails to timely exercise the Reduction Option, Terminating Lease Notices in respect it shall lapse unexercised and Tenant shall have no further right to reduce the size of the Option Facilities and Continuing Lease Notices in respect of any other Continuing Leases that are not Option Facilities, if any, for which Sunrise had not previously sent to Landlord a Continuing Lease Notice. To the extent Sunrise so elects and complies with the notice requirements set forth in the immediately preceding sentence, then the following provisions shall be effective:Premises pursuant hereto. b. Within thirty (i30) The definition of “Terminating Leases” shall automatically be deemed to include the Option Facilities; (ii) The definition of “Continuing Leases” shall automatically be deemed to exclude the Option Facilities; (iii) Schedules 1 and 2 attached hereto shall automatically be deemed to be amended accordingly; (iv) The available amount of the Letter of Credit shall be reduced consistent with Schedule 4 in respect of the Option Facilities and Marriott shall authorize such reduction in accordance with Section 4(d) hereof within ten (10) business days of the date after Tenant's exercise of the Reduction Option Notice; (v) Marriott shall be authorized hereunder, Landlord and Tenant agree to send enter into an amendment to the Landlord the Terminating Lease Notices and the Continuing Lease Notices, if any, that were delivered by Sunrise in connection with the Reduction Option Notice, as set forth above; and (vi) If the Option Facilities constitute all of the Continuing Leases, then Sunrise shall pay to Marriott an amount equal to five hundred thousand dollars ($500,000) as a reduction fee.to