Common use of IKEA Lease Covenant Clause in Contracts

IKEA Lease Covenant. NSFB agrees, for the benefit of the City, that during the period (the ―Lease Covenant Period‖) commencing on the Initial Sale Date (as defined below) and ending on the Lease Covenant End Date (as defined below), NSFB will not unilaterally terminate the IKEA Lease without the consent of the City (in the City’s sole and absolute discretion), unless there is a default by IKEA under the IKEA Lease (the ―Lease Covenant‖). Notwithstanding the foregoing, however, and notwithstanding anything to the contrary in this Agreement, the Lease Covenant and the Lease Covenant Period shall immediately and automatically terminate upon the date (the ―Lease Covenant End Date‖) that is the earliest to occur of (a) the date IKEA is no longer engaging in its regular retail sales to the general public from its store at the Property; (b) the date IKEA opens a store at the property commonly known as ―Xxxxxxx‖, located at 000 Xxxxx Xxx Xxxxxxxx Xxxxxxxxx, Burbank, California (the ―Xxxxxxx Property‖) (or any other store in Burbank, California); (c) the four (4) year anniversary of the date of the escrow closing of the acquisition of the Xxxxxxx Property by IKEA or its affiliate (or a successor or assign) from NSFB or its affiliate (or a successor or assign); or (d) the ten (10) year anniversary of the Initial Sale Date. The ―Initial Sale Date‖ is defined as the date of the recording of the Deed transferring title to the Property to NSFB or its affiliate.

IKEA Lease Covenant. NSFB agrees, for the benefit of the City, that during the period (the ―Lease Covenant Period‖) commencing on the Initial Sale Date (as defined below) and ending on the Lease Covenant End Date (as defined below), NSFB will not unilaterally terminate the IKEA Lease without the consent of the City (in the City’s sole and absolute discretion), unless there is a default by IKEA under the IKEA Lease (the ―Lease Covenant‖). Notwithstanding the foregoing, however, and notwithstanding anything to the contrary in this Agreement, the Lease Covenant and the Lease Covenant Period shall immediately and automatically terminate upon the date (the ―Lease Covenant End Date‖) that is the earliest to occur of (a) the date IKEA is no longer engaging in its regular retail sales to the general public from its store at the Property; (b) the date IKEA opens a store at the property commonly known as ―Xxxxxxx‖―Menasco‖, located at 000 Xxxxx Xxx Xxxxxxxx Xxxxxxxxx, Burbank, California (the ―Xxxxxxx ―Menasco Property‖) (or any other store in Burbank, California); (c) the four (4) year anniversary of the date of the escrow closing of the acquisition of the Xxxxxxx Menasco Property by IKEA or its affiliate (or a successor or assign) from NSFB or its affiliate (or a successor or assign); or (d) the ten (10) year anniversary of the Initial Sale Date. The ―Initial Sale Date‖ is defined as the date of the recording of the Deed transferring title to the Property to NSFB or its affiliate.