Common use of Covenant to Operate Clause in Contracts

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.

Appears in 2 contracts

Sources: Ground Lease Agreement (CNL Healthcare Properties, Inc.), Ground Lease Agreement (CNL Healthcare Properties, Inc.)