Option To Expand Franchise Area; Waiver. (A) Any Street Pole Franchisee with a Franchise Area that includes only Zone C shall have the option, once a year during the Term, to expand such area to include either Zone B, or both Zone B and Zone A, and any Street Pole Franchisee with a Franchise Area that includes only Zones B and C shall have the option, once a year during the Term, to expand such area to include Zone A, provided that: (1) such Street Pole Franchisee provides notice to the City of its exercise of such option not earlier than one hundred twenty (120) days, but not later than sixty (60) days, prior to each anniversary of the Effective Date, with such expansion to become effective on that anniversary of the Effective Date which occurs immediately after said notice; (2) such Street Pole Franchisee agrees to an adjustment in the franchise compensation due under Section I. of Appendix D of this Agreement to match, commencing on the day such Franchise Area expansion becomes effective and thereafter going forward, the compensation payable by other Street Pole Franchisees with comparable Franchises Areas (any applicable increase in Zone Compensation to be payable on the date such expansion becomes effective); (3) such Street Pole Franchisee agrees to an adjustment of the Security Fund obligations under this Agreement to match the Security Fund obligations of other Street Pole Franchisees with comparable Franchises Areas (any applicable increase in such Security Fund obligations to be payable on the date such expansion becomes effective); (4) such Street Pole Franchisee agrees that it shall, with respect to the newly added Zone or Zones, take a place lower on the Priority List than any Street Pole Franchisee that previously had such Zone or Zones within its Franchise Area; and (5) such Street Pole Franchisee agrees to pay compensation per Compensation Street Pole, within the newly added Zone or Zones, under Section II. of Appendix D hereof, which matches the amount paid with respect to such Zone or Zones by the Street Pole Franchisee which was previously the lowest on the Priority List with respect to the newly added Zone or Zones. (B) The City reserves the right to waive any requirement imposed on the Company or other Street Pole Franchisees pursuant to this Appendix A, provided that the City agrees not to waive any requirement with respect to one or more Street Pole Franchisees that would unfairly and adversely affect the Company’s pole allocation priority as set forth on the Priority List. The City agrees that, to the maximum extent permitted by law, if it grants additional Street Pole Franchises in addition to those expressly listed on the Priority List, any Street Pole reservation priority rights that are provided under any such subsequent Street Pole Franchisee shall be lower in priority rank than those expressly listed on the Priority List.
Appears in 3 contracts
Samples: Franchise Agreement, Franchise Agreement, Franchise Agreement
Option To Expand Franchise Area; Waiver. (A) Any Street Pole Franchisee with a Franchise Area that includes only Zone C shall have the option, once a year during the Term, to expand such area to include either Zone B, or both Zone B and Zone A, and any Street Pole Franchisee with a Franchise Area that includes only Zones B and C shall have the option, once a year during the Term, to expand such area to include Zone A, provided that:
(1) such Street Pole Franchisee provides notice to the City of its exercise of such option not earlier than one hundred twenty (120) days, but not later than sixty (60) days, prior to each anniversary of the Effective Date, with such expansion to become effective on that anniversary of the Effective Date which occurs immediately after said notice;
(2) such Street Pole Franchisee agrees to an adjustment in the franchise compensation due under Section I. of Appendix D of this Agreement to match, commencing on the day such 7 For example, Street Pole Franchisee A, which purchased a higher priority in the reservation process by agreeing to pay a higher per Street Operations Pole compensation, may not solicit Street Pole Franchisee B, which has agreed to pay the City a lesser amount in per Street Operations Pole compensation, to submit requests for reservations in the name of B but which will actually be used by A. Franchise Area expansion becomes effective and thereafter going forward, the compensation payable by other Street Pole Franchisees with comparable Franchises Areas (any applicable increase in Zone Compensation to be payable on the date such expansion becomes effective);
(3) such Street Pole Franchisee agrees to an adjustment of the Security Fund obligations under this Agreement to match the Security Fund obligations of other Street Pole Franchisees with comparable Franchises Areas (any applicable increase in such Security Fund obligations to be payable on the date such expansion becomes effective);
(4) such Street Pole Franchisee agrees that it shall, with respect to the newly added Zone or Zones, take a place lower on the Priority List than any Street Pole Franchisee that previously had such Zone or Zones within its Franchise Area; and
(5) such Street Pole Franchisee agrees to pay compensation per Compensation Street Pole, within the newly added Zone or Zones, under Section II. of Appendix D hereof, which matches the amount paid with respect to such Zone or Zones by the Street Pole Franchisee which was previously the lowest on the Priority List with respect to the newly added Zone or Zones.
(B) The City reserves the right to waive any requirement imposed on the Company or other Street Pole Franchisees pursuant to this Appendix A, provided that the City agrees not to waive any requirement with respect to one or more Street Pole Franchisees that would unfairly and adversely affect the Company’s pole allocation priority as set forth on the Priority List. The City agrees that, to the maximum extent permitted by law, if it grants additional Street Pole Franchises in addition to those expressly listed on the Priority List, any Street Pole reservation priority rights that are provided under any such subsequent Street Pole Franchisee shall be lower in priority rank than those expressly listed on the Priority List.
Appears in 2 contracts
Samples: Franchise Agreement, Franchise Agreement