Common use of Development Obligation Clause in Contracts

Development Obligation. Licensee commits to develop and open for business within (a) at least 2 of the Facilities listed on schedule 1.2 by June 30, 2020, with such 2 Facilities to be identified to Licensor by March 31, 2020, which date shall also be considered the Grant Date for such 2 Facilities; (b) at least 2 additional Facilities listed on schedule 1.2 by September 30, 2020, with such 2 Facilities to be identified to Licensor by June 30, 2020, which date shall also be considered the Grant Date for such 2 Facilities; and (c) the remaining single Facility listed on schedule 1.2 by December 31, 2020, with such Facility to be identified to Licensor by September 30, 2020, which date shall also be considered the Grant Date for such Facility (the foregoing obligation, the “Development Obligation”), it being understood and agreed that Licensee may satisfy the Development Obligation in advance of the dates set forth herein if Licensee develops and opens for business at a faster pace than the time periods allotted herein. In the event that Licensee fails to meet the Development Obligation (regardless of the month in which such noncompliance with the Development Obligation occurs), the Initial Licenses which Licensee has developed and opened for business shall remain unaffected; however, Licensee shall lose the right to develop the remaining Initial Licenses and Licensor shall, within such Facilities, have the right to provide (or contract with a third party to provide) services which may be competitive with Licensee’s services. For the avoidance of doubt, Licensee may, upon mutual agreement by the Parties and the execution of an LMA for each license, develop and open for business within Licensor facilities that are not listed on Schedule 1.2; however, such licenses shall not count toward the Development Obligation unless such license is a substitute for an Initial License that is no longer available to Licensee due to an issue with a Facility Owner or other cause beyond Licensee’s control.”

Development Obligation. Licensee commits to develop and open for business within (a) at least 2 4 of the Facilities listed on schedule 1.2 by March 31, 2020, with such 4 Facilities to be identified to Licensor by December 31, 2019, which date shall also be considered the Grant Date for such 4 Facilities; (b) at least 6 additional Facilities listed on schedule 1.2 by June 30, 2020, with such 2 6 Facilities to be identified to Licensor by March 31, 2020, which date shall also be considered the Grant Date for such 2 4 Facilities; (bc) at least 2 6 additional Facilities listed on schedule 1.2 by September 30, 2020, with such 2 6 Facilities to be identified to Licensor by June 30, 2020, which date shall also be considered the Grant Date for such 2 6 Facilities; and (cd) the remaining single Facility listed on schedule 1.2 by December 31, 2020, with such Facility to be identified to Licensor by September 30, 2020, which date shall also be considered the Grant Date for such Facility (the foregoing obligation, the “Development Obligation”), it being understood and agreed that Licensee may satisfy the Development Obligation in advance of the dates set forth herein if Licensee develops and opens for business at a faster pace than the time periods allotted herein. In the event that Licensee fails to meet the Development Obligation (regardless of the month in which such noncompliance with the Development Obligation occurs), the Initial Licenses which Licensee has developed and opened for business shall remain unaffected; however, Licensee shall lose the right to develop the remaining Initial Licenses and Licensor shall, within such Facilities, have the right to provide (or contract with a third party to provide) services which may be competitive with Licensee’s services. For the avoidance of doubt, Licensee may, upon mutual agreement by the Parties and the execution of an LMA for each license, develop and open for business within Licensor facilities that are not listed on Schedule 1.2; however, such licenses shall not count toward the Development Obligation unless such license is a substitute for an Initial License that is no longer available to Licensee due to an issue with a Facility Owner or other cause beyond Licensee’s control.”