FUTURE CONSTRUCTION PROJECTS BY TENANT Clause Samples
FUTURE CONSTRUCTION PROJECTS BY TENANT. Tenant covenants and agrees that Landlord shall be provided with the right (but not the obligation) to finance future capital projects of Tenant, its key principals and Guarantors at the Property and elsewhere on similar terms to this Lease or as otherwise mutually agreed upon by the parties, with all such leases being cross collateralized and cross defaulted with this Lease, the Guarantees and all other leases Landlord has entered with Tenant. During the Term of this Lease, Tenant, its key principals and Guarantors covenant and agree that they will NOT own, operate or invest in a facility that is reasonably likely to have a negative impact on the performance of the Property or their business during the Term of this Lease unless the parties mutually agree that the operations at this Property support the need for additional facilities. The Guarantors and key principals of Tenant will dedicate sufficient and reasonable time and effort and their professional attention on Tenant’s activities on the Property in priority to other professional activities until Tenant has: (A) reached stabilization of operations so that all expenses including its Base Rent, operating expenses and all other business expenses are being paid on a current and timely basis, and (B) met the Working Capital Reserve (defined below) and such funds are being held in escrow at Tenant’s bank.
FUTURE CONSTRUCTION PROJECTS BY TENANT. Tenant covenants and agrees that Landlord shall be provided with the right (but not the obligation) to finance future capital projects of Tenant, at the Property on similar terms to this Lease or as otherwise mutually agreed upon by the parties. During the Term of this Lease, Tenant, will NOT own, operate or invest in a facility that is reasonably likely to have a negative impact on the performance of the Property or their business during the Term of this Lease unless the parties mutually agree that the operations at this Property support the need for additional facilities.
FUTURE CONSTRUCTION PROJECTS BY TENANT. Tenant covenants and agrees that Landlord shall be provided with the right (but not the obligation), subject to the terms outlined below, to finance future capital projects related to cannabis cultivation of the Tenant Parties at the Property and elsewhere on substantially similar terms as this Lease or as otherwise mutually agreed upon by the parties, with all such leases being cross collateralized and cross defaulted with this Lease, the Guarantees and all other leases Landlord has entered with Tenant (the “Right of Finance”). The Right of Finance shall not apply to any equity raise by the Tenant Parties and shall not apply to the Tenant Parties’ future capital projects for cannabis retail, processing or distribution so long as such projects do not include cannabis cultivation. Unless and until Landlord elects not to exercise its Right of Finance, or Landlord, following exercise, is unable or to provide financing in a reasonable time or withdraws its exercise, Tenant is entitled to seek alternative financing for that project. During the Term of this Lease, the Tenant Parties covenant and agree that they will NOT own, operate or invest in a facility that is reasonably likely to have a negative impact on the performance of the Property or their business during the Term of this Lease unless the parties mutually agree that the operations at this Property support the need for additional facilities. During the Term the Tenant Parties shall not own or develop any cannabis related business or operation, including retail, processing and distribution, except that which is directly owned by one or more of the Tenant Parties. The Tenant Parties will dedicate sufficient and reasonable time and effort and their professional attention on the activities of the Tenant Parties on the Property in priority to other professional activities until Tenant has reached stabilization of operations so that all expenses including its Base Rent, operating expenses and all other business expenses are being paid on a current and timely basis. If the Tenant Parties desire to develop the Option Property during the Term, and the development is not financed by Landlord, the operators on the Property shall only be the Tenant Parties or wholly owned subsidiaries of the Tenant Parties.