Common use of CLOSURE OR CONTRACTION Clause in Contracts

CLOSURE OR CONTRACTION. 6.9.1 If at any time during the Term of this Agreement, the Director, in his sole discretion, determines that it is necessary for the efficient operation of the Airport or to accommodate any construction, he may (i) require Concessionaire to close a Concession Facility or Facilities and/or (ii) require Concessionaire to reduce the square footage of a Concession Facility or Facilities. This shall be a continuing right of the Director throughout the Term. If the Director requires Concessionaire to close a Concession Facility or Facilities, Concessionaire shall vacate the Concession Facility or Facilities within ninety (90) days after receipt of a closure notice from the Director unless circumstances require an earlier closure. If the Director requires a contraction of a Concession Facility or Facilities in excess of fifty percent (50%) of the gross square footage, Concessionaire may elect to close that Concession Facility or continue operating it in the reduced space. 6.9.2 If any event described in Subsection 6.9.1(i) or (ii) occurs in excess of fifty percent (50%) of the gross square footage of an affected Concession Facility, the Minimum Guarantee Fee may be adjusted accordingly by the Director to reflect the percentage of lost revenues the closure or contraction causes. 6.9.3 Subject to an appropriation by City Council, if a closure under Subsection 6.9.1(i) occurs or if Concessionaire elects to close a Concession Facility that has been contracted by more than 50% under Subsection 6.9.1, City will: (a) reimburse Concessionaire for the reasonable and proper unamortized Build-out Costs (based on the current book value of the improvements using the straight-line method over years from date placed in service); or (b) failing an appropriation by City Council, Concessionaire shall be given rent credits by HAS equal to the reasonable and proper unamortized Build-out Costs (based on the current book value of the improvements using the straight-line method over

CLOSURE OR CONTRACTION. 6.9.1 If at any time during the Term of this Agreement, the Director, in his sole discretion, determines that it is necessary for the efficient operation of the Airport or to accommodate any construction, he may (i) require Concessionaire to close a Concession Facility or Facilities and/or (ii) require Concessionaire to reduce the square footage of a Concession Facility or Facilities. This shall be a continuing right of the Director throughout the Term. If the Director requires Concessionaire to close a Concession Facility or Facilities, Concessionaire shall vacate the Concession Facility or Facilities within ninety (90) 90 days after receipt of a closure notice from the Director unless circumstances require an earlier closure. If the Director requires a contraction of a Concession Facility or Facilities in excess of fifty percent (50%) % of the gross square footage, Concessionaire may elect to close that Concession Facility or continue operating it in the reduced space. 6.9.2 If . The Parties acknowledge and agree that Terminal D at Airport will be redeveloped and that any event described in Subsection 6.9.1(i) or (ii) occurs in excess Facilities located therein will be closed during the Term of fifty percent (50%) of the gross square footage of an affected Concession Facility, the Minimum Guarantee Fee may be adjusted accordingly by the Director to reflect the percentage of lost revenues the closure or contraction causes. 6.9.3 this Agreement. Subject to an appropriation by City Council, if a closure under Subsection 6.9.1(iSection 5.9.1.(i) occurs or if Concessionaire elects to close a Concession Facility that has been contracted by more than 50% under Subsection 6.9.1Section 5.9.1., City will: (ai) reimburse Concessionaire for the reasonable and proper unamortized Build-out Costs (based on the current book value of the improvements using the straight-line method over 10 years from date placed in service); or (bii) failing an appropriation by City Council, Concessionaire shall be given rent credits by HAS equal to the reasonable and proper unamortized Build-out Costs (based on the current book value of the improvements using the straight-line method overover 10 years from date placed in service). This provision does not apply to facilities that are not substantially complete upon the effective date of this agreement.