Common use of Books of Account and Bank Accounts Clause in Contracts

Books of Account and Bank Accounts. The fiscal year and taxable year of the Company shall be the year ending December 31. Managing Member shall: (i) maintain all of the books and records of the Company on an accrual basis in accordance with sound accounting principles, consistently applied and (ii) provide operating reports and financial statements to each other Member and GECC not less frequently than once each month summarizing the operating activities of the Company during the immediately preceding calendar month, any material deviations from the Business Plan or the Annual Budgets during such preceding calendar month, and such other information as is reasonably requested by any Member or GECC, all within 20 days after the end of such preceding calendar month. During normal business hours at the principal office of the Company, on not less than three (3) business days prior notice, all of the following shall be made available for inspection and copying by all of the Members and GECC at their own expense for any purpose reasonably related to each such Member’s Interest in the Company or, in the case of GECC, the Assigned Distributions: (i) all books and records relating to the business and financial condition of the Company, (ii) a current list of the name and last known business, residence or mailing address of each Member, (iii) a copy of this Agreement, the Certificate of Formation and all amendments thereto, together with executed copies of any written powers-of-attorney pursuant to which this Agreement, the Certificate of Formation and all amendments thereto have been executed, (iv) the amount of cash and a description and statement of the agreed value of any other property or services contributed by each Member to the capital of the Company and which each Member has agreed to contribute in the future, and (v) the date upon which each Member became a Member of the Company. Upon not less than three (3) business days prior notice, Managing Member shall cooperate with any Member that requests, at such Member’s sole cost and expense, and not more than one time in each calendar year, to conduct an independent audit of the Company.

Books of Account and Bank Accounts. The fiscal year and taxable year of the Company shall be the year ending December 31. Managing Member shall: (i) maintain all of the books and records of the Company on an accrual basis in accordance with sound generally accepted accounting principles, consistently applied and (ii) provide operating reports and financial statements to each other Member and GECC the Members not less frequently than once each month summarizing the operating activities of the Company during the immediately preceding calendar monthmonth and on a year-to-date basis, any material deviations from the Business Plan or the Annual Budgets Budget during such preceding calendar month, and such other information as is reasonably requested by any Member or GECCas more fully detailed in the Hotel Management Agreement and/or the Franchise Agreement, all within 20 fifteen (15) days after the end of such preceding calendar month. Such other information will include all information necessary in order for KBS to comply with its SEC and other statutory requirements including, but not limited to, its quarterly 10Q filings, annual audit and 10K filing, and SOX 404 assessment requirements. During normal business hours at the principal office of the CompanyProject, on not less than three (3) business days prior notice, all of the following shall be made available for inspection and copying by all of the Members and GECC at their own expense for any purpose reasonably related to each such Member’s Interest in the Company or, in the case of GECC, the Assigned DistributionsCompany: (i) all books and records relating to the business and financial condition of the Company, (ii) a current list of the name and last known business, residence or mailing address of each Member, (iii) a copy of this Agreement, the Certificate of Formation and all amendments thereto, together with executed copies of any written powers-of-attorney pursuant to which this Agreement, the Certificate of Formation and all amendments thereto have been executed, (iv) the amount of cash and a description and statement of the agreed value of any other property or services contributed by each Member to the capital of the Company and which each Member has agreed to contribute in the future, and (v) the date upon which each Member became a Member of the Company. Upon not less than three seven (37) business days prior notice, Managing Member shall cooperate with any Member that requests, at such Member’s sole cost and expense, and not more than one (1) time in each calendar year, to conduct an independent audit of the Company.

Books of Account and Bank Accounts. The fiscal year and taxable year of the Company shall be the year ending December 31. Managing Member Manager shall: (i) maintain all of the books and records of the Company on an accrual basis in accordance with sound generally accepted accounting principles, consistently applied and (ii) provide operating reports and financial statements to each other Member and GECC the Members not less frequently than once each month summarizing the operating activities of the Company during the immediately preceding calendar monthmonth and on a year-to-date basis, any material deviations from the Business Plan or the Annual Budgets Budget during such preceding calendar month, and such other information as is reasonably requested by any Member or GECCMember, all within 20 four (4) business days after the end of such preceding calendar month. During normal business hours at the principal office of the CompanyProject, on not less than three (3) business days prior notice, all of the following shall be made available for inspection and copying by all of the Members and GECC at their own expense for any purpose reasonably related to each such Member’s Interest in the Company or, in the case of GECC, the Assigned DistributionsCompany: (i) all books and records relating to the business and financial condition of the Company, (ii) a current list of the name and last known business, residence or mailing address of each Member, (iii) a copy of this Agreement, the Certificate of Formation and all amendments thereto, together with executed copies of any written powers-of-attorney pursuant to which this Agreement, the Certificate of Formation and all amendments thereto have been executed, (iv) the amount of cash and a description and statement of the agreed value of any other property or services contributed by each Member to the capital of the Company and which each Member has agreed to contribute in the future, and (v) the date upon which each Member became a Member of the Company. Upon not less than three (3) business days prior notice, Managing Member Manager shall cooperate with any Member that requests, at such Member’s sole cost and expense, and not more than one (1) time in each calendar year, to conduct an independent audit of the Company.

Books of Account and Bank Accounts. The fiscal year and taxable year of the Company shall be the year ending December 31. Managing Member shall: (ix) maintain or cause to be maintained all of the books and records of the Company Company, in all material respects, in accordance with the standards of the industry using the income tax basis, consistently applied (provided that monthly reporting shall be on an accrual basis in accordance with sound accounting principles, consistently applied and balance sheets shall be on a cost basis); (iiy) provide or cause to be provided operating reports and financial statements to each other Member and GECC not no less frequently than once each month summarizing the operating activities of the Company during the immediately preceding calendar month, any material deviations from the Business Plan or the Annual Budgets Budget during such preceding calendar month, and such other information as is reasonably requested by any Member or GECCMember, all within 20 twenty (20) days after the end of such preceding calendar month; and (z) on a quarterly basis by the end of such quarter, deliver to the Members estimated quarterly taxable income of the Company and such additional financial statements, reports and other information as any Member may reasonably request; it being understood by the Members that the information provided pursuant to this clause (z) will reflect unaudited estimates. During normal business hours at the principal office Project or the offices of the CompanyManaging -32- Member, on not less than three (3) business days Business Days prior notice, all of the following shall be made available for inspection and copying by all of the Members and GECC at their own expense for any purpose reasonably related to each such Member’s Interest in the Company or, in the case of GECC, the Assigned DistributionsInterest: (i) all books and records relating to the business and financial condition of the Company, (ii) a current list of the name and last known business, residence or mailing address of each Member, (iii) a copy of this Agreement, the Certificate of Formation and all amendments thereto, together with executed copies of any written powers-of-attorney pursuant to which this Agreement, the Certificate of Formation and all amendments thereto have been executed, (iv) the amount of cash and a description and statement of the agreed value of any other property or services contributed by each Member to the capital of the Company and which each Member has agreed to contribute in the future, and (v) the date upon which each Member became a Member of the Company. Upon not less than three (3) business days Business Days prior notice, Managing Member shall cooperate with any Member that requests, at such Member’s sole cost and expense, and not more than one (1) time in each calendar year, to conduct an independent audit of the Company.. 9.02

Books of Account and Bank Accounts. The fiscal year and taxable year of the Company shall be the year ending December 31. Managing Member shallshall or shall cause the Property Manager to: (ix) maintain all of the books and records of the Company Company, in all material respects, in accordance with the standards of the industry using the income tax basis, consistently applied (provided that monthly reporting shall be on an accrual basis in accordance with sound accounting principles, consistently applied and balance sheets shall be on a cost basis) and (iiy) provide operating reports and financial statements to each other Member and GECC not less frequently than once each month summarizing the operating activities of the Company during the immediately preceding calendar month, any material deviations from the Business Plan or the Annual Budgets Budget during such preceding calendar month, and such other information as is reasonably requested by any Member or GECCMember, all within 20 twenty (20) days after the end of such preceding calendar month. During normal business hours at the principal office Project or the offices of the CompanyManaging Member, on not less than three (3) business days prior notice, all of the following shall be made available for inspection and copying by all of the Members and GECC at their own expense for any purpose reasonably related to each such Member’s Interest in the Company or, in the case of GECC, the Assigned DistributionsCompany: (i) all books and records relating to the business and financial condition of the Company, (ii) a current list of the name and last known business, residence or mailing address of each Member, (iii) a copy of this Agreement, the Certificate of Formation and all amendments thereto, together with executed copies of any written powers-of-attorney pursuant to which this Agreement, the Certificate of Formation and all amendments thereto have been executed, (iv) the amount of cash and a description and statement of the agreed value of any other property or services contributed by each Member to the capital of the Company and which each Member has agreed to contribute in the future, and (v) the date upon which each Member became a Member of the Company. Upon not less than three (3) business days prior notice, Managing Member shall cooperate with any 34 Member that requests, at such Member’s sole cost and expense, and not more than one (1) time in each calendar year, to conduct an independent audit of the Company.. 9.02

Books of Account and Bank Accounts. The fiscal year and taxable year of the Company shall be the year ending December 31. Managing Member shallshall or shall cause the Property Manager to: (ix) maintain all of the books and records of the Company Company, in all material respects, in accordance with the standards of the industry using the income tax basis, consistently applied (provided that monthly reporting shall be on an accrual basis in accordance with sound accounting principles, consistently applied and balance sheets shall be on a cost basis) and (iiy) provide operating reports and financial statements to each other Member and GECC not less frequently than once each month summarizing the operating activities of the Company during the immediately preceding calendar month, any material deviations from the Business Plan or the Annual Budgets Budget during such preceding calendar month, and such other information as is reasonably requested by any Member or GECCMember, all within 20 twenty (20) days after the end of such preceding calendar month. During normal business hours at the principal office Project or the offices of the CompanyManaging Member, on not less than three (3) business days prior notice, all of the following shall be made available for inspection and copying by all of the Members and GECC at their own expense for any purpose reasonably related to each such Member’s Interest in the Company or, in the case of GECC, the Assigned DistributionsCompany: (i) all books and records relating to the business and financial condition of the Company, (ii) a current list of the name and last known business, residence or mailing address of each Member, (iii) a copy of this Agreement, the Certificate of Formation and all amendments thereto, together with executed copies of any written powers-of-attorney pursuant to which this Agreement, the Certificate of Formation and all amendments thereto have been executed, (iv) the amount of cash and a description and statement of the agreed value of any other property or services contributed by each Member to the capital of the Company and which each Member has agreed to contribute in the future, and (v) the date upon which each Member became a Member of the Company. Upon not less than three (3) business days prior notice, Managing Member shall cooperate with any Member that requests, at such Member’s sole cost and expense, and not more than one (1) time in each calendar year, to conduct an independent audit of the Company.