Reduction Options Clause Samples
The 'Reduction Options' clause defines the terms under which certain obligations, quantities, or commitments in an agreement may be decreased. Typically, this clause outlines the specific conditions, procedures, and notice requirements that a party must follow to exercise a reduction, such as reducing the volume of goods ordered or the scope of services provided. By establishing clear guidelines for making reductions, the clause provides flexibility for parties to adjust their commitments in response to changing circumstances, thereby managing risk and preventing disputes over unilateral changes.
Reduction Options. Subject to the terms and conditions set forth herein, Landlord hereby grants to Tenant the options (the “Reduction Option(s)”) to reduce from time to time the Rentable Area of the Premises (the amount of space available for reduction at any time being referred to herein as the “Reduction Space”) as follows:
Reduction Options. 49 10.1.1 First Reduction Option.....................................................49 10.1.2 Second Reduction Option....................................................49 10.1.3 Third Reduction Option.....................................................49 10.1.4 Fourth Reduction Option....................................................49 10.2
Reduction Options. ARTICLE III RENT 3.01
Reduction Options. (a) Tenant shall have the right to reduce the size of the Premises by up to one (1) full floor on the highest or lowest floor of the Premises then being leased by Tenant and leaving no more than one (1) partial floor in the Premises, such reduction to be effective as of the last day of the fifth (5th) Lease Year (“First Reduction Option”). Tenant shall also have the right to reduce the size of the Premises by up to one (1) full floor on the highest or lowest floor of the Premises then being leased by Tenant and leaving no more than one (1) partial floor in the Premises, such reduction to be effective as of the last day of the tenth (10th) Lease Year (“Second Reduction Option”). Tenant’s right to exercise the First and Second Reduction Options shall be subject to and conditioned upon Tenant’s satisfaction of all of the following terms and conditions:
(i) Landlord receives notice of reduction from Tenant (which notice shall be irrevocable on Tenant’s part, but Tenant’s rights shall be subject to the provisions of this Section 9) as to Tenant’s exercise of the First Reduction Option no later than the last day of the fourth (4th) Lease Year (“First Reduction Notice”). Together with the First Reduction Notice, there shall be a payment by Tenant to Landlord of the First Reduction Amount (as defined below). For any portion of the Initial Premises plus Expansion Space (if any) leased by Tenant pursuant to Options No. 1A or 4 as set forth in Section 7 of this Rider, the First Reduction Amount shall be equal to $78.14 per rentable square foot multiplied by the number of rentable square feet of Initial Premises as to which Tenant is exercising the First Reduction Option, plus $60.24 per rentable square foot multiplied by the number of rentable square feet of Expansion Space leased by Tenant pursuant to Option No. 1A and $59.93 per rentable square foot multiplied by the number of rentable square feet of Expansion Space leased by Tenant pursuant to Option No. 4. For Expansion Space and Refusal Space other than Expansion Space leased by Tenant pursuant to Options No. 1A or 4, the First Reduction Amount shall be equal to the number of rentable square feet of Expansion Space and Refusal Space as to which the First Reduction Option is being exercised multiplied by Landlord’s actual unamortized costs (all of which shall be amortized over the remaining Initial Term of the Lease at the commencement of the term of such space, taking into account an interest component at the ra...