Common use of Gestation Period Clause in Contracts

Gestation Period. a. Gestation period of 30 Days, reckoned from the date of handing over of sites shall be permissible. b. No gestation period is to be permitted in case of renewal/award of the concession/ license in favor of the existing licensee in the same place (i.e. same area as well as location). However, i. where there is change in location or due to suspension of the business to carry- out modification at the existing area etc. in the concession/ license premises, normal gestation period, as defined above, may be permitted. ii. If there is increase in the area in the new license at the same location awarded to existing licensee, the gestation period would be applicable for the incremental area only (if he continues with the business from the existing area and needs development period for the incremental area). In this scenario, licensee shall continue to be billed on the basis of quoted licensefee on pro- rata basis for existing area. Billing for the newly developed/incremental area shall be started after expiry of gestation period.

Gestation Period. a. Gestation period of 30 Days, reckoned from the date of handing over of sites shall be permissible. b. No gestation period is to be permitted in case of renewal/award of the concession/ license in favor of the existing licensee in the same place (i.e. same area as well as location). However, i. where there is change in location or due to suspension of the business to carry- carry-out modification at the existing area etc. in the concession/ license premises, normal gestation period, as defined above, may be permitted. ii. If there is increase in the area in the new license at the same location awarded to existing licensee, the gestation period would be applicable for the incremental area only (if he continues with the business from the existing area and needs development period for the incremental area). In this scenario, licensee shall continue to be billed on the basis of quoted licensefee license fee on pro- pro-rata basis for existing area. Billing for the newly developed/incremental area shall be started after expiry of gestation period.

Gestation Period. a. Gestation period of 30 Days, reckoned from the date of handing over of sites shall be permissible. b. No gestation period is to be permitted in case of renewal/award of the concession/ license in favor of the existing licensee in the same place (i.e. same area as well as location). However, i. where there is change in location or due to suspension of the business to carry- out modification at the existing area etc. in the concession/ license premises, normal gestation period, as defined above, may be permitted. ii. If there is increase in the area in the new license at the same location awarded to existing licensee, the gestation period would be applicable for the incremental area only (if he continues with the business from the existing area and needs development period for the incremental area). In this scenario, licensee shall continue to be billed on the basis of quoted licensefee license fee on pro- rata basis for existing area. Billing for the newly developed/incremental area shall be started after expiry of gestation period.