Common use of Accounts Payable and Operating Expenses Clause in Contracts

Accounts Payable and Operating Expenses. With respect to each Property, all obligations and liabilities (for services and materials ordered, or otherwise in the ordinary course of business) and accounts payable for the Hotel and the Property owing as of the Closing Date for merchandise, equipment, tour agents’ and travel agents’ commissions, advertisements, supplies and other materials and services paid, incurred or ordered shall be prorated between the RLJ REITs and Parent as of the Closing Date. The RLJ REITs shall receive a credit for all prepaid expenses.