Covenant to Operate Clause Samples

Covenant to Operate. The Tenant shall throughout the Term continually operate, occupy and utilize the entire Leased Premises and conduct its business in accordance with the provisions of this Lease. The Tenant acknowledges that the Landlord is executing this Lease in reliance upon this covenant and that it is a material element inducing the Landlord to execute this Lease. The Tenant shall operate and conduct its business upon the whole of the Premises in an up-to-date, first class and reputable manner befitting the character of the Building and shall act diligently and use all proper and reasonable efforts consistent with good business practice. The Tenant agrees not to make any material change in the nature or character of the business carried on by the Tenant in or from the Leased Premises or in the quality of goods and services offered by the Tenant in or from the Leased Premises without the written consent of the Landlord.

Covenant to Operate. The Parties acknowledge Landlord presently operates a hospital within the Restricted Area for the purpose of furnishing health care and/or wellness services to the general public. If, at any time hereafter, Landlord or Landlord’s successor or assign or another entity ceases to continuously operate a hospital on the Campus for a period in excess of one hundred eighty (180) days, then Tenant shall be released from the use restrictions contained in this ARTICLE 5 and in Sections 7.3 and 7.4 below, and Tenant may engage in any lawful use of the Land and the MOB; provided, however, that such use shall otherwise comply with this Lease. The provisions of the preceding sentence shall not apply to closures during any periods of construction, reconstruction or remodeling undertaken to repair, replace, expand or modify the hospital, or any portion thereof, or to any cessation of hospital operations due to casualty or other force majeure.

Covenant to Operate. Each day during the Term, commencing upon and at all times from and after the Term Commencement Date, Lessee shall operate and have open for business, or cause to be operated and kept open for business, the Hotel as a Luxury Hotel; provided that the foregoing covenant (i) shall be subject to interruptions due to Force Majeure Events and any disruptions pursuant to any Casualty or Appropriation referred to in Section 17 (provided that Lessee shall use all commercially reasonable efforts to mitigate and minimize the impact of any Force Majeure Event, Casualty or Appropriation on the Hotel and the Hotel Business); and (ii) shall be subject to the provisions of Section 11.5(g) with respect to limited temporary closures of certain portions of the Hotel to the extent expressly permitted by Section 11.5(h). In the event that any dispute arises between Lessee and Lessor as to whether the Hotel is being operated at any given time as a Luxury Hotel, such dispute shall, upon the request of either party, be resolved by arbitration pursuant to Section 18.

Covenant to Operate. Subject to the provisions of Section 12.4.2 hereof, commencing on Substantial Completion of the Project Improvements Work and continuing thereafter during the remainder of the Term, Tenant covenants, at Tenant’s sole cost and expense to: (a) operate the Leased Premises, and cause the same to be operated, diligently and continuously for not less than seventy five hours per calendar week for the Permitted Use and in accordance with the Operating Standard without interruption for any reason other than Down Times (as defined in Section 12.4.2 below); (b) perform all Maintenance and Repair Work in accordance with Section 14.1.1; and (c) possess all Personal Property necessary for the operation of the Leased Premises and maintain all spare parts and inventory, in each case consistent with the requirements of clause (a) of this Section.

Covenant to Operate. [The Tenant shall throughout the Term continually operate, occupy and utilize the entire Leased Premises and conduct its business in accordance with the provisions of this Lease. The Tenant acknowledges that the Landlord is executing this Lease in reliance upon this covenant and that it is a material element inducing the Landlord to execute this Lease. - deleted text] [If - added text] the Tenant shall operate and == conduct its business upon the whole of the Premises[, then the Tenant shall do so - added text] in an up-to-date, first class and reputable manner befitting the character of the Building and shall act diligently and use all proper and reasonable efforts consistent with good business practice. The Tenant agrees not to make any material change in the nature or character of the business carried on by the Tenant in or from the Leased Premises or in the quality of goods and services offered by the Tenant in or from the Leased Premises without the written consent of the Landlord[, which consent shall not be unreasonably withheld. - added text] (R) Section 4.30 "New Indemnity" is hereby deleted in its entirety. (S) Sections 4.32 to 4.35, inclusive, are hereby amended as follows:

Covenant to Operate. Commencing on the Commencement Date and thereafter for the balance of the Term, Tenant hereby covenants that it shall continuously occupy and use the Premises solely for conducting the Permitted Use, as defined herein.

Covenant to Operate. Economic Abandonment

Covenant to Operate. Subject to the provisions of Section 6.5 hereof, commencing on the first day of the Initial Occupancy (as that term is defined in the Economic Development Performance Agreement) and continuing thereafter (except for Down Times) during the remainder of the Term, Lessee covenants, at Lessee's sole cost and expense to: (a) operate the Convention Center Project, and cause the same to be operated, diligently and continuously as a convention and meeting space without interruption for any reason other than Down Times; (b) perform all Maintenance and Repair Work in accordance with Section 7.1; and (c) possess all Personalty necessary for the operation of the Convention Center Project and maintain all spare parts and inventory.

Covenant to Operate. The Tenant hereby covenants and agrees to continuously operate the Tenant’s Business on the Leased Premises through the term of the Lease. This obligat ion includes, but is not limited to, maintaining regular business hours, actively marketing and promoting the business, and ensuring sufficient services are available to meet customer demand. The Tenant further agrees not to abandon, close, or suspend operations of the Tenant’s Business without prior written consent of the Landlord, except in cases of force majeure or circumstances beyond the Tenant’s control, which must be promptly communicated to the Landlord. Failure to comply with this covenant shall constitute a material breach of the Lease, entitling the Landlord to pursue remedies including, but not limited to, termination of the Lease, damages, or injunctive relief.