Common use of RETAIL RESTRICTION LIMIT/FAILURE TO OPERATE Clause in Contracts

RETAIL RESTRICTION LIMIT/FAILURE TO OPERATE. The parties acknowledge that the realization of the benefits of the Net Cash Flow Rent are dependent upon Lessee maximizing its gross sales and that failure to operate, or self-competition, is inconsistent with the generation of appropriate levels of Net Cash Flow Rent. The parties further acknowledge that Base Rent was negotiated together with, and giving consideration to, the Net Cash Flow Rent and that self-competition or failure to operate by Lessee will deprive Lessor of a bargained-for consideration. Accordingly, Lessee covenants and agrees that during the Term (i) Lessee will not, directly or indirectly, engage in any business similar to, or in competition with, the business operated on the Subleased Premises within a radius of TWO (2) MILES from the Subleased Premises AND (ii) Lessee shall use its reasonable best efforts to operate its Restaurant (as hereinafter defined) in the Subleased Premises with reasonable due diligence and efficiency so as to maximize, to the extent reasonably and economically feasible, the Net Cash Flow Rent which may be produced by such manner of operation. Subject to matters beyond the reasonable control of Lessee, Lessee shall carry at all times in the Subleased Premises such inventories of food, liquor, and other goods as shall be reasonably designed to maximize, to the extent reasonably and economically feasible, the return to Lessor and Lessee. Lessee shall generally operate seven days a week at such hours as are customary for similar restaurants in the geographic area of the Subleased Premises.

RETAIL RESTRICTION LIMIT/FAILURE TO OPERATE. The parties acknowledge that the realization of the benefits of the Net Cash Flow Percentage Rent are dependent upon Lessee maximizing its gross sales and that failure to operate, or self-competition, is inconsistent with the generation of appropriate levels of Net Cash Flow Percentage Rent. The parties further acknowledge that Base Rent was negotiated together with, and giving consideration to, the Net Cash Flow Percentage Rent and that self-competition or failure to operate by Lessee will deprive Lessor of a bargained-for consideration. Accordingly, Lessee covenants and agrees that during the Term (i) Lessee will not, directly or indirectly, engage in any business similar to, or in competition with, the business operated on the Subleased Leased Premises within a radius of TWO (2) MILES from the Subleased Leased Premises AND (ii) Lessee shall use its reasonable best efforts to operate its Restaurant (as hereinafter defined) in the Subleased Leased Premises with reasonable due diligence and efficiency so as to maximize, to the extent reasonably and economically feasible, the Net Cash Flow Percentage Rent which may be produced by such manner of operation. Subject to matters beyond the reasonable control of Lessee, Lessee shall carry at all times in the Subleased Leased Premises such inventories of food, liquor, and other goods as shall be reasonably designed to maximize, to the extent reasonably and economically feasible, the return to Lessor and Lessee. Lessee shall generally operate seven days a week at such hours as are customary for similar restaurants in the geographic area of the Subleased Leased Premises.

RETAIL RESTRICTION LIMIT/FAILURE TO OPERATE. The parties acknowledge that the realization of the benefits of the Net Cash Flow Rent a percentage rent lease are dependent upon Lessee maximizing its gross sales and that failure to operate, operate or self-competition, competition is inconsistent with the generation of appropriate levels of Net Cash Flow Rentmaximum gross sales. The parties further acknowledge that Base Rent was negotiated together with, with and giving consideration to, to the Net Cash Flow Percentage Rent rate and base and that self-competition or failure to operate by Lessee will deprive Lessor of a bargained-for consideration. Accordingly, Lessee covenants and agrees that during the Term and any extensions or renewals thereof (ia) Lessee will not, directly or indirectly, engage in any business similar to, to or in competition with, with the business operated on the Subleased Leased Premises within a radius of TWO (2) MILES two miles from the Subleased Leased Premises AND (iiprovided, however, a "food court" type of restaurant shall not be deemed to be competitive with the business operated on the Leased Premises) and (b) Lessee shall use its reasonable best efforts to operate its Restaurant (as hereinafter defined) restaurant business in the Subleased Leased Premises with reasonable due diligence and efficiency so as to maximize, maximize to the extent reasonably and economically feasible, feasible the Net Cash Flow Rent Gross Sales which may be produced by such manner of operation. Subject to matters beyond the reasonable control of Lessee, Lessee shall carry at all times in the Subleased Leased Premises a stock of merchandise of such inventories of foodsize, liquorcharacter, and other goods quality as shall be reasonably designed to maximize, maximize to the extent reasonably and economically feasible, feasible the return to Lessor and Lessee. Lessee shall generally operate seven days a week at such hours as are customary for similar restaurants in the geographic area of the Subleased Leased Premises.