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NEGOTIATING KEY LEASE PROVISIONS A Landlord's Point of View - page 60 / 60

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SPECIAL CONDITIONS:

1.

ANY AND ALL BANKING CHARGES OTHER THAN THOSE OF THE ISSUING

BANK ARE FOR THE ACCOUNT OF THE BENEFICIARY.

2.

THIS LETTER OF CREDIT SHALL BE AUTOMATICALLY EXTENDED WITHOUT

AMENDMENT, FOR ADDITIONAL ONE YEAR PERIODS DURING THE EIGHT YEAR LEASE TERM (THE “TERM”) (SPECIFICALLY EXCLUDING ANY EXTENSION PERIODS) UNLESS WE HAVE NOTIFIED YOU IN WRITING NOT LESS THAN THIRTY (30) DAYS BEFORE SUCH EXPIRATION DATE, THAT WE ELECT NOT TO RENEW THIS LETTER OF CREDIT. THE BANK SHALL BE ENTITLED TO RELY ON PARAGRAPH 2 OF A NOTICE IN THE FORM ATTACHED HERETO AS ATTACHMENT

NO. 1, WHEN SIGNED BY THE LANDLORD AND THE TENANT, AS TO THE COMMENCEMENT AND TERMINATION DATES OF THE TERM.

3.

[IF APPLICABLE] THE AMOUNT OF THIS LETTER OF CREDIT SHALL BE

REDUCED AS SET FORTH BELOW UPON RECEIPT OF A STATEMENT SIGNED BY AN AUTHORIZED AGENT OF THE BENEFICIARY AND CERTIFYING THAT AS OF THE DATE OF THE NOTICE FROM BENEFICIARY AUTHORIZING THE REDUCTION IN THE AMOUNT OF THE LETTER OF CREDIT, THE TENANT HAS NOT BEEN IN DEFAULT UNDER THE LEASE (THE “NOTICE OF REDUCTION”). UPON RECEIPT OF SUCH NOTICE OF REDUCTION FROM BENEFICIARY DURING THE _____ YEAR OF THE TERM, THEN ON THE FIRST DAY OF THE _____ YEAR OF THE TERM THE AMOUNT OF THE LETTER OF CREDIT SHALL BE REDUCED TO $_________________. UPON RECEIPT OF SUCH NOTICE OF REDUCTION FROM BENEFICIARY DURING THE _____ YEAR OF THE TERM, THEN ON THE FIRST DAY OF THE _____ YEAR OF THE TERM THE AMOUNT OF THE LETTER OF CREDIT SHALL BE REDUCED TO $_________________. SAID LETTER OF CREDIT SHALL REMAIN AT $________________

THROUGHOUT THE BALANCE OF THE TERM.

4.

THIS LETTER OF CREDIT SHALL BE ASSIGNABLE BY THE BENEFICIARY TO

THE PURCHASER OF THE PROJECT OR BUILDING OF WHICH THE PREMISES IS A PART. WITHIN FIVE (5) BUSINESS DAYS OF THE RECEIPT OF WRITTEN DEMAND FROM THE BENEFICIARY, THE BANK SHALL DELIVER TO THE BENEFICIARY WRITTEN CONFIRMATION ADDRESSED TO THE BENEFICIARY AND THE PURCHASER THAT THE BANK HAS NEVER ISSUED A NOTICE OF NON-RENEWAL

WITH RESPECT TO THE LETTER OF CREDIT OR FAILED TO RENEW THE SAME.

ALL WRITTEN NOTIFICATION SHALL BE SENT VIA REGISTERED MAIL.

THIS LETTER OF CREDIT WILL EXPIRE IN FULL AND FINALLY ON THE 30TH DAY FOLLOWING THE EXPIRATION OR EARLIER TERMINATION OF THE TERM AND DRAWINGS PRESENTED AFTER THIS DATE WILL NOT BE ACCEPTED.

99999\11111\215691.V01 JDC

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