Common use of Construction Costs Clause in Contracts

Construction Costs. a. LESSEE agrees to invest a minimum initial capital investment of fifteen million dollars ($15,000,000) in new facilities and Improvements in the Project. LESSEE further agrees to make additional and on-going upgrade capital investments in facilities and Improvements as may be required by the franchise license agreement to maintain the franchise license with an upscale, high quality, and nationally recognized hotel brand. b. Before beginning any future structures, facilities, improvements, additions or alterations, LESSEE shall, through its contractor or otherwise, provide performance, labor and material payment, and statutory bonds with respect to any improvement that exceeds One hundred thousand dollars ($100,000) in cost constructed on the Premises in the full amount for the project contract. The general contractor shall be the principal on such bonds, the LESSOR shall be the obligee and a surety company or companies qualified to do business in Kansas shall serve as surety. Such performance, labor and material payment bonds shall name the Wichita Airport Authority and the City of Wichita, Kansas as the obligees. The statute of limitations on all such bonds shall be for a minimum of two (2) years from project completion. c. For construction of any improvements that exceeds One Hundred thousand dollars ($100,000) constructed on the Premises, LESSEE shall purchase and maintain a builder’s risk insurance policy, or require its prime contractor to carry such policies, in a sum equal to the full project replacement value as set forth in Section 28 LIABILITY INSURANCE. Builder’s Risk coverages shall be in effect from the date of the construction notice-to-proceed and continue in force until all financial interest ceases. The Wichita Airport Authority and the City of Wichita shall be named as additional insured on such policies, and all policies shall be written by insurers subject to LESSOR’s reasonable approval. d. If at any time during the Initial and Option Terms of this Agreement, LESSEE desires to have LESSOR provide Improvements on LESSEE’s behalf, and LESSOR agrees to provide such Improvements, the following process and procedures shall be followed: 1) LESSEE shall consult with LESSOR, and LESSOR shall then develop and provide to LESSEE a scope of work and a preliminary cost estimate for the Improvements. Upon LESSEE’s written acceptance of the scope of work and preliminary cost estimate, LESSOR shall proceed with design. At the conclusion of the design phase, an updated cost estimate will be provided to LESSEE. Upon LESSEE’s written acceptance of the updated cost estimate, LESSOR shall proceed with bidding the work and, using bid values, provide a final cost estimate to LESSEE. Upon LESSEE’s written acceptance of the final cost estimate, LESSOR shall invoice LESSEE, and LESSEE shall prepay the estimated costs. Should LESSEE not accept any cost estimate, this process will be terminated and LESSOR shall not proceed with the construction Improvements, and shall invoice LESSEE for the costs already incurred, including design and estimating work. 2) If there are change orders required during the course of construction of Improvements, LESSOR shall provide to LESSEE a description of the work along with a cost proposal from the contractor. Upon LESSEE’s written acceptance of the cost proposal, LESSOR shall invoice LESSEE, and LESSEE shall prepay the costs. 3) Once the Improvements are complete and final costs are known, LESSOR shall provide LESSEE a reconciliation of actual costs compared to prepayments made by LESSEE. If actuals costs exceed the prepayments, LESSEE shall pay the difference to LESSOR. If the prepayments exceed the actual costs, LESSOR shall reimburse LESSEE. The required reconciliation payment from one party to the other shall be made within thirty (30) calendar days from the date of the reconciliation statement. 4) All cost estimates and billing by LESSOR will include a twelve percent (12%) administrative fee. The fee will be applied to the total cost incurred by LESSOR in providing the construction improvements. The fee represents the LESSOR’s cost to manage the task including procurement services, approval processes, management staff time, and supervision and overhead, however shall not include a profit component. 5) Failure of LESSEE to reimburse LESSOR for the invoiced amount within thirty (30) calendar days from date of invoice shall constitute a default of this Agreement by the terms of Section 49 TERMINATION BY LESSOR.

Construction Costs. a. LESSEE XXXXXX agrees to invest a minimum initial capital investment pay all costs incurred in connection with construction of fifteen million dollars ($15,000,000) in new facilities and Improvements in the Project. LESSEE further agrees to make additional and on-going upgrade capital investments in facilities and Improvements as may be required by the franchise license agreement to maintain the franchise license with an upscale, high qualityany improvements, and nationally recognized hotel brand. b. Before beginning any future structures, facilities, additions or alterations to the Premises during the Term unless otherwise expressly agreed to in writing by the TENANT and LANDLORD. TENANT agrees to make direct payment to all materials, product and service providers for all such costs as they are incurred. TENANT shall have no right, authority, or power to bind LANDLORD or any interest of LANDLORD in the Premises, for the payment of any claim for labor or material or for any charge or expense incurred in the erection, construction, operation, or maintenance of said improvements upon the Premises. b. Before any construction of any improvements, additions or alterations, LESSEE TENANT shall, through by agreement with its contractor or otherwise, provide performance, labor and material payment, payment bonds and statutory bonds with respect to any improvement that exceeds One hundred ten thousand dollars ($100,00010,000) in cost constructed on the Premises in the full amount for the project contract. The general contractor shall be the principal on such bonds, the LESSOR LANDLORD shall be the obligee and a surety company or companies qualified to do business in Kansas shall serve as surety. Such performance, labor and material payment bonds shall name the Wichita Airport Authority and the City of Wichita, Kansas as the obligees. The statute of limitations on all such bonds shall be for a minimum of two (2) years from project completion. c. For construction of any improvements improvement that exceeds One Hundred ten thousand dollars ($100,00010,000) constructed on the Premises, LESSEE TENANT shall purchase and maintain a builder’s risk insurance policy, or require its prime contractor to carry such policies, in a sum equal to the full project replacement value as set forth in Section 28 LIABILITY INSURANCEvalue. Builder’s Risk coverages shall be in effect from the date of the construction notice-to-to- proceed and continue in force until all financial interest ceases, but in no event beyond commercial use commences and the permanent property policy is in effect. The Wichita Airport Authority and the City of Wichita shall be named as additional insured on such policies, and all policies shall be written by insurers subject to LESSORLANDLORD’s reasonable approval. d. If at any time during the Initial and Option Terms of this Agreement, LESSEE desires to have LESSOR provide Improvements on LESSEE’s behalf, and LESSOR agrees to provide such Improvements, the following process and procedures shall be followed: 1) LESSEE shall consult with LESSOR, and LESSOR shall then develop and provide to LESSEE a scope of work and a preliminary cost estimate for the Improvements. Upon LESSEE’s written acceptance of the scope of work and preliminary cost estimate, LESSOR shall proceed with design. At the conclusion of the design phase, an updated cost estimate will be provided to LESSEE. Upon LESSEE’s written acceptance of the updated cost estimate, LESSOR shall proceed with bidding the work and, using bid values, provide a final cost estimate to LESSEE. Upon LESSEE’s written acceptance of the final cost estimate, LESSOR shall invoice LESSEE, and LESSEE shall prepay the estimated costs. Should LESSEE not accept any cost estimate, this process will be terminated and LESSOR shall not proceed with the construction Improvements, and shall invoice LESSEE for the costs already incurred, including design and estimating work. 2) If there are change orders required during the course of construction of Improvements, LESSOR shall provide to LESSEE a description of the work along with a cost proposal from the contractor. Upon LESSEE’s written acceptance of the cost proposal, LESSOR shall invoice LESSEE, and LESSEE shall prepay the costs. 3) Once the Improvements are complete and final costs are known, LESSOR shall provide LESSEE a reconciliation of actual costs compared to prepayments made by LESSEE. If actuals costs exceed the prepayments, LESSEE shall pay the difference to LESSOR. If the prepayments exceed the actual costs, LESSOR shall reimburse LESSEE. The required reconciliation payment from one party to the other shall be made within thirty (30) calendar days from the date of the reconciliation statement. 4) All cost estimates and billing by LESSOR will include a twelve percent (12%) administrative fee. The fee will be applied to the total cost incurred by LESSOR in providing the construction improvements. The fee represents the LESSOR’s cost to manage the task including procurement services, approval processes, management staff time, and supervision and overhead, however shall not include a profit component. 5) Failure of LESSEE to reimburse LESSOR for the invoiced amount within thirty (30) calendar days from date of invoice shall constitute a default of this Agreement by the terms of Section 49 TERMINATION BY LESSOR.

Construction Costs. a. LESSEE agrees to invest a minimum initial capital investment pay all costs incurred in connection with the demolition of fifteen million dollars ($15,000,000) in existing structures, pavements and utilities, and construction of the new structures, facilities and Improvements improvements, and future additions, improvements and alterations, unless otherwise expressly agreed to in writing by the ProjectLESSEE and LESSOR. LESSEE further agrees to make additional direct payment to all materials, product and on-going upgrade capital investments service providers for all such costs as they are incurred. LESSEE shall have no right, authority, or power to bind LESSOR or any interest of LESSOR in facilities the Premises, for the payment of any claim for labor or material or for any charge or expense incurred in the erection, construction, operation, or maintenance of said improvements and Improvements as may be required by the franchise license agreement to maintain the franchise license with an upscale, high quality, and nationally recognized hotel brand. b. Premises. Before beginning any future structures, facilities, improvements, additions or alterationsconstruction, LESSEE shall, through by agreement with its contractor or otherwise, provide performance, labor and material payment, payment bonds and statutory bonds with respect to any improvement that exceeds One hundred five thousand dollars ($100,0005,000) in cost constructed on the Premises in the full amount for the project contract. The general contractor under any such contract shall be the principal on such bonds, the LESSOR shall be the obligee and a surety company or companies qualified to do business in Kansas shall serve as surety. Such performance, labor and material payment bonds shall name the Wichita Airport Authority and the City of Wichita, Kansas as the obligees. The statute Satisfaction of limitations on all such bonds this requirement shall not be the basis for a minimum an extension of two (2) years from project completion. c. the construction period as set forth in Section 18, DESIGN AND CONSTRUCTION. For construction of any improvements improvement that exceeds One Hundred five thousand dollars ($100,0005,000) constructed on the Premises, LESSEE shall purchase and maintain a builder’s risk insurance policy, or require its prime contractor to carry such policies, in a sum equal to the full project replacement value as set forth in Section 28 29, LIABILITY INSURANCE. Builder’s Risk coverages shall be in effect from the date of the construction notice-to-proceed and continue in force until all financial interest ceases. LESSEE shall also purchase and maintain any other insurance policies described in Job Site Requirements document relating to construction of the Premises. All other coverages shall remain in force as described in the Job Site Requirement document. The Wichita Airport Authority and the City of Wichita shall be named as additional insured on such policies, and all policies shall be written by insurers subject to LESSOR’s reasonable approval. d. If at any time during the Initial and Option Terms of this Agreement, LESSEE desires to have LESSOR provide Improvements on LESSEE’s behalf, and LESSOR agrees to provide such Improvements, the following process and procedures shall be followed: 1) LESSEE shall consult with LESSOR, and LESSOR shall then develop and provide to LESSEE a scope of work and a preliminary cost estimate for the Improvements. Upon LESSEE’s written acceptance of the scope of work and preliminary cost estimate, LESSOR shall proceed with design. At the conclusion of the design phase, an updated cost estimate will be provided to LESSEE. Upon LESSEE’s written acceptance of the updated cost estimate, LESSOR shall proceed with bidding the work and, using bid values, provide a final cost estimate to LESSEE. Upon LESSEE’s written acceptance of the final cost estimate, LESSOR shall invoice LESSEE, and LESSEE shall prepay the estimated costs. Should LESSEE not accept any cost estimate, this process will be terminated and LESSOR shall not proceed with the construction Improvements, and shall invoice LESSEE for the costs already incurred, including design and estimating work. 2) If there are change orders required during the course of construction of Improvements, LESSOR shall provide to LESSEE a description of the work along with a cost proposal from the contractor. Upon LESSEE’s written acceptance of the cost proposal, LESSOR shall invoice LESSEE, and LESSEE shall prepay the costs. 3) Once the Improvements are complete and final costs are known, LESSOR shall provide LESSEE a reconciliation of actual costs compared to prepayments made by LESSEE. If actuals costs exceed the prepayments, LESSEE shall pay the difference to LESSOR. If the prepayments exceed the actual costs, LESSOR shall reimburse LESSEE. The required reconciliation payment from one party to the other shall be made within thirty (30) calendar days from the date of the reconciliation statement. 4) All cost estimates and billing by LESSOR will include a twelve percent (12%) administrative fee. The fee will be applied to the total cost incurred by LESSOR in providing the construction improvements. The fee represents the LESSOR’s cost to manage the task including procurement services, approval processes, management staff time, and supervision and overhead, however shall not include a profit component. 5) Failure of LESSEE to reimburse LESSOR for the invoiced amount within thirty (30) calendar days from date of invoice shall constitute a default of this Agreement by the terms of Section 49 TERMINATION BY LESSOR.

Construction Costs. ‌ a. LESSEE XXXXXX agrees to invest a minimum initial capital investment pay all costs incurred in connection with construction of fifteen million dollars ($15,000,000) in any future new structures, facilities and Improvements improvements, additions, improvements and alterations, unless otherwise expressly agreed to in writing by the ProjectLESSEE and LESSOR. LESSEE further XXXXXX agrees to make additional direct payment to all materials, product and on-going upgrade capital investments service providers for all such costs as they are incurred. LESSEE shall have no right, authority, or power to bind LESSOR or any interest of LESSOR in facilities the Premises for the payment of any claim for labor or material or for any charge or expense incurred in the erection, construction, operation, or maintenance of said improvements and Improvements as may be required by the franchise license agreement to maintain the franchise license with an upscale, high quality, and nationally recognized hotel brandPremises. b. Before beginning any future structures, facilities, improvements, additions or alterationsconstruction, LESSEE shall, through by agreement with its contractor or otherwise, provide performance, labor and material payment, payment bonds and statutory bonds with respect to any improvement that exceeds One hundred fifty thousand dollars ($100,00050,000) in cost constructed on the Premises in the full amount for the project contract. The general contractor under any such contract shall be the principal on such bonds, the LESSOR shall be the obligee and a surety company or companies qualified to do business in Kansas shall serve as surety. Such performance, labor and material payment bonds shall name the Wichita Airport Authority and the City of Wichita, Kansas as the obligees. The statute of limitations on all such bonds shall be for a minimum of two (2) years from project completion. c. For construction of any improvements improvement that exceeds One Hundred fifty thousand dollars ($100,00050,000) constructed on the Premises, LESSEE shall purchase and maintain a builder’s risk insurance policy, or require its prime contractor to carry such policies, in a sum equal to the full project replacement value as set forth in Section 28 38 LIABILITY INSURANCE. Builder’s Risk coverages shall be in effect from the date of the construction notice-to-proceed and continue in force until all financial interest ceases. The Wichita Airport Authority and the City of Wichita shall be named as additional insured on such policies, and all policies shall be written by insurers subject to LESSOR’s reasonable approval. d. If at any time during the Initial and Option Terms term of this Agreement, LESSEE desires to have LESSOR provide Improvements construction improvements on LESSEEXXXXXX’s behalf, and LESSOR XXXXXX agrees to provide such Improvementsimprovements, the following process and procedures shall be followed:. 1) LESSEE shall consult with LESSORXXXXXX, and LESSOR shall then develop and provide to LESSEE a scope of work and a preliminary cost estimate for the Improvementsconstruction improvements. Upon LESSEEXXXXXX’s written acceptance of the scope of work and preliminary cost estimate, LESSOR shall proceed with design. At the conclusion of the design phase, an updated cost estimate will be provided to LESSEE. Upon LESSEEXXXXXX’s written acceptance of the updated cost estimate, LESSOR shall proceed with bidding the work and, using bid values, provide a final cost estimate to LESSEE. Upon LESSEEXXXXXX’s written acceptance of the final cost estimate, LESSOR shall invoice LESSEE, LESSEE and LESSEE shall will prepay the estimated costs. Should LESSEE not accept any cost estimate, this process will be terminated and LESSOR shall not proceed with the construction Improvementsimprovements, and shall will invoice LESSEE for the costs already incurred, including design and estimating work. 2) If there are change orders required during the course of the construction of Improvementsimprovements, LESSOR shall provide to LESSEE a description of the work along with a cost proposal from the contractor. Upon LESSEEXXXXXX’s written acceptance of the cost proposal, LESSOR shall invoice LESSEE, and LESSEE shall XXXXXX will prepay the costs. 3) Once the Improvements construction improvements are complete and final costs are known, LESSOR shall provide LESSEE a reconciliation of actual costs compared to prepayments made by LESSEE. If actuals costs exceed the prepayments, LESSEE shall will pay the difference to LESSOR. If the prepayments exceed the actual costs, LESSOR shall XXXXXX will reimburse LESSEE. The required reconciliation payment from one party to the other shall will be made within thirty (30) calendar days from the date of the reconciliation statement. 4) All cost estimates and billing by LESSOR XXXXXX will include a twelve percent (12%) administrative fee. The fee will be applied to the total cost incurred by LESSOR XXXXXX in providing the construction improvements. The fee represents the LESSOR’s cost to manage the task including procurement services, approval processes, management staff time, and supervision and overhead, however shall . It does not include a profit component. 5) XXXXXX agrees to pay all xxxxxxxx from LESSOR within thirty (30) calendar days of billing. Failure of LESSEE to reimburse LESSOR for the invoiced amount within thirty (30) calendar days from date of invoice shall constitute a default of this Agreement by the terms of Section 49 42, TERMINATION BY LESSORXXXXXX.

Construction Costs. a. LESSEE TENANT agrees to invest a minimum initial capital investment pay all costs incurred in connection with construction of fifteen million dollars ($15,000,000) in new facilities and Improvements in the Project. LESSEE further agrees to make additional and on-going upgrade capital investments in facilities and Improvements as may be required by the franchise license agreement to maintain the franchise license with an upscale, high qualityany improvements, and nationally recognized hotel brand. b. Before beginning any future structures, facilities, additions or alterations unless otherwise expressly agreed to in writing by the TENANT and LANDLORD. TENANT agrees to make direct payment to all materials, product and service providers for all such costs as they are incurred. TENANT shall have no right, authority, or power to bind LANDLORD or any interest of LANDLORD in the Premises, for the payment of any claim for labor or material or for any charge or expense incurred in the erection, construction, operation, or maintenance of said improvements and Premises. b. Before any construction of any improvements, additions or alterations, LESSEE TENANT shall, through by agreement with its contractor or otherwise, provide performance, labor and material payment, payment bonds and statutory bonds with respect to any improvement that exceeds One hundred fifty thousand dollars ($100,00050,000) in cost constructed on the Premises in the full amount for the project contract. The general contractor shall be the principal on such bonds, the LESSOR LANDLORD shall be the obligee and a surety company or companies qualified to do business in Kansas shall serve as surety. Such performance, labor and material payment bonds shall name the Wichita Airport Authority and the City of Wichita, Kansas as the obligees. The statute of limitations on all such bonds shall be for a minimum of two (2) years from project completion. c. For construction of any improvements improvement that exceeds One Hundred fifty thousand dollars ($100,00050,000) constructed on the Premises, LESSEE TENANT shall purchase and maintain a builder’s risk insurance policy, or require its prime contractor to carry such policies, in a sum equal to the full project replacement value as set forth in Section 28 LIABILITY INSURANCEvalue. Builder’s Risk coverages shall be in effect from the date of the construction notice-to-proceed and continue in force until all financial interest ceases. The Wichita Airport Authority and the City of Wichita shall be named as additional insured on such policies, and all policies shall be written by insurers subject to LESSORLANDLORD’s reasonable approval. d. If at any time during the Initial and Option Terms of this Agreement, LESSEE desires to have LESSOR provide Improvements on LESSEE’s behalf, and LESSOR agrees to provide such Improvements, the following process and procedures shall be followed: 1) LESSEE shall consult with LESSOR, and LESSOR shall then develop and provide to LESSEE a scope of work and a preliminary cost estimate for the Improvements. Upon LESSEE’s written acceptance of the scope of work and preliminary cost estimate, LESSOR shall proceed with design. At the conclusion of the design phase, an updated cost estimate will be provided to LESSEE. Upon LESSEE’s written acceptance of the updated cost estimate, LESSOR shall proceed with bidding the work and, using bid values, provide a final cost estimate to LESSEE. Upon LESSEE’s written acceptance of the final cost estimate, LESSOR shall invoice LESSEE, and LESSEE shall prepay the estimated costs. Should LESSEE not accept any cost estimate, this process will be terminated and LESSOR shall not proceed with the construction Improvements, and shall invoice LESSEE for the costs already incurred, including design and estimating work. 2) If there are change orders required during the course of construction of Improvements, LESSOR shall provide to LESSEE a description of the work along with a cost proposal from the contractor. Upon LESSEE’s written acceptance of the cost proposal, LESSOR shall invoice LESSEE, and LESSEE shall prepay the costs. 3) Once the Improvements are complete and final costs are known, LESSOR shall provide LESSEE a reconciliation of actual costs compared to prepayments made by LESSEE. If actuals costs exceed the prepayments, LESSEE shall pay the difference to LESSOR. If the prepayments exceed the actual costs, LESSOR shall reimburse LESSEE. The required reconciliation payment from one party to the other shall be made within thirty (30) calendar days from the date of the reconciliation statement. 4) All cost estimates and billing by LESSOR will include a twelve percent (12%) administrative fee. The fee will be applied to the total cost incurred by LESSOR in providing the construction improvements. The fee represents the LESSOR’s cost to manage the task including procurement services, approval processes, management staff time, and supervision and overhead, however shall not include a profit component. 5) Failure of LESSEE to reimburse LESSOR for the invoiced amount within thirty (30) calendar days from date of invoice shall constitute a default of this Agreement by the terms of Section 49 TERMINATION BY LESSOR.

Construction Costs. a. LESSEE XXXXXX agrees to invest a minimum initial capital investment pay all costs incurred in connection with construction of fifteen million dollars ($15,000,000) in new facilities and Improvements in the Project. LESSEE further agrees to make additional and on-going upgrade capital investments in facilities and Improvements as may be required by the franchise license agreement to maintain the franchise license with an upscale, high qualityany improvements, and nationally recognized hotel brand. b. Before beginning any future structures, facilities, additions or alterations to the Premises during the Term unless otherwise expressly agreed to in writing by the TENANT and LANDLORD. TENANT agrees to make direct payment to all materials, product and service providers for all such costs as they are incurred. TENANT shall have no right, authority, or power to bind LANDLORD or any interest of LANDLORD in the Premises, for the payment of any claim for labor or material or for any charge or expense incurred in the erection, construction, operation, or maintenance of said improvements upon the Premises. b. Before any construction of any improvements, additions or alterations, LESSEE TENANT shall, through by agreement with its contractor or otherwise, provide performance, labor and material payment, payment bonds and statutory bonds with respect to any improvement that exceeds One hundred ten thousand dollars ($100,00010,000) in cost constructed on the Premises in the full amount for the project contract. The general contractor shall be the principal on such bonds, the LESSOR LANDLORD shall be the obligee and a surety company or companies qualified to do business in Kansas shall serve as surety. Such performance, labor and material payment bonds shall name the Wichita Airport Authority and the City of Wichita, Kansas as the obligees. The statute of limitations on all such bonds shall be for a minimum of two (2) years from project completion. c. For construction of any improvements improvement that exceeds One Hundred ten thousand dollars ($100,00010,000) constructed on the Premises, LESSEE TENANT shall purchase and maintain a builder’s risk insurance policy, or require its prime contractor to carry such policies, in a sum equal to the full project replacement value as set forth in Section 28 LIABILITY INSURANCEvalue. Builder’s Risk coverages shall be in effect from the date of the construction notice-to-proceed and continue in force until all financial interest ceases, but in no event beyond commercial use commences and the permanent property policy is in effect. The Wichita Airport Authority and the City of Wichita shall be named as additional insured on such policies, and all policies shall be written by insurers subject to LESSORLANDLORD’s reasonable approval. d. If at any time during the Initial and Option Terms of this Agreement, LESSEE desires to have LESSOR provide Improvements on LESSEE’s behalf, and LESSOR agrees to provide such Improvements, the following process and procedures shall be followed: 1) LESSEE shall consult with LESSOR, and LESSOR shall then develop and provide to LESSEE a scope of work and a preliminary cost estimate for the Improvements. Upon LESSEE’s written acceptance of the scope of work and preliminary cost estimate, LESSOR shall proceed with design. At the conclusion of the design phase, an updated cost estimate will be provided to LESSEE. Upon LESSEE’s written acceptance of the updated cost estimate, LESSOR shall proceed with bidding the work and, using bid values, provide a final cost estimate to LESSEE. Upon LESSEE’s written acceptance of the final cost estimate, LESSOR shall invoice LESSEE, and LESSEE shall prepay the estimated costs. Should LESSEE not accept any cost estimate, this process will be terminated and LESSOR shall not proceed with the construction Improvements, and shall invoice LESSEE for the costs already incurred, including design and estimating work. 2) If there are change orders required during the course of construction of Improvements, LESSOR shall provide to LESSEE a description of the work along with a cost proposal from the contractor. Upon LESSEE’s written acceptance of the cost proposal, LESSOR shall invoice LESSEE, and LESSEE shall prepay the costs. 3) Once the Improvements are complete and final costs are known, LESSOR shall provide LESSEE a reconciliation of actual costs compared to prepayments made by LESSEE. If actuals costs exceed the prepayments, LESSEE shall pay the difference to LESSOR. If the prepayments exceed the actual costs, LESSOR shall reimburse LESSEE. The required reconciliation payment from one party to the other shall be made within thirty (30) calendar days from the date of the reconciliation statement. 4) All cost estimates and billing by LESSOR will include a twelve percent (12%) administrative fee. The fee will be applied to the total cost incurred by LESSOR in providing the construction improvements. The fee represents the LESSOR’s cost to manage the task including procurement services, approval processes, management staff time, and supervision and overhead, however shall not include a profit component. 5) Failure of LESSEE to reimburse LESSOR for the invoiced amount within thirty (30) calendar days from date of invoice shall constitute a default of this Agreement by the terms of Section 49 TERMINATION BY LESSOR.

Construction Costs. a. LESSEE TENANT agrees to invest a minimum initial capital investment pay all costs incurred in connection with construction of fifteen million dollars ($15,000,000) in new facilities and Improvements in the Project. LESSEE further agrees to make additional and on-going upgrade capital investments in facilities and Improvements as may be required by the franchise license agreement to maintain the franchise license with an upscale, high qualityany improvements, and nationally recognized hotel brand. b. Before beginning any future structures, facilities, additions or alterations unless otherwise expressly agreed to in writing by the TENANT and LANDLORD. TENANT agrees to make direct payment to all materials, product and service providers for all such costs as they are incurred. TENANT shall have no right, authority, or power to bind LANDLORD or any interest of LANDLORD in the Premises, for the payment of any claim for labor or material or for any charge or expense incurred in the erection, construction, operation, or maintenance of said improvements and Premises. b. Before any construction of any improvements, additions or alterations, LESSEE TENANT shall, through by agreement with its contractor or otherwise, provide performance, labor and material payment, payment bonds and statutory bonds with respect to any improvement that exceeds One hundred ten thousand dollars ($100,00010,000) in cost constructed on the Premises in the full amount for the project contract. The general contractor shall be the principal on such bonds, the LESSOR LANDLORD shall be the obligee and a surety company or companies qualified to do business in Kansas shall serve as surety. Such performance, labor and material payment bonds shall name the Wichita Airport Authority and the City of Wichita, Kansas as the obligees. The statute of limitations on all such bonds shall be for a minimum of two (2) years from project completion. c. For construction of any improvements improvement that exceeds One Hundred ten thousand dollars ($100,00010,000) constructed on the Premises, LESSEE TENANT shall purchase and maintain a builder’s risk insurance policy, or require its prime contractor to carry such policies, in a sum equal to the full project replacement value as set forth in Section 28 24, LIABILITY INSURANCE. Builder’s Risk coverages shall be in effect from the date of the construction notice-to-proceed and continue in force until all financial interest ceases. The Wichita Airport Authority and the City of Wichita shall be named as additional insured on such policies, and all policies shall be written by insurers subject to LESSORLANDLORD’s reasonable approval. d. If at any time during the Initial and Option Terms of this Agreement, LESSEE desires to have LESSOR provide Improvements on LESSEE’s behalf, and LESSOR agrees to provide such Improvements, the following process and procedures shall be followed: 1) LESSEE shall consult with LESSOR, and LESSOR shall then develop and provide to LESSEE a scope of work and a preliminary cost estimate for the Improvements. Upon LESSEE’s written acceptance of the scope of work and preliminary cost estimate, LESSOR shall proceed with design. At the conclusion of the design phase, an updated cost estimate will be provided to LESSEE. Upon LESSEE’s written acceptance of the updated cost estimate, LESSOR shall proceed with bidding the work and, using bid values, provide a final cost estimate to LESSEE. Upon LESSEE’s written acceptance of the final cost estimate, LESSOR shall invoice LESSEE, and LESSEE shall prepay the estimated costs. Should LESSEE not accept any cost estimate, this process will be terminated and LESSOR shall not proceed with the construction Improvements, and shall invoice LESSEE for the costs already incurred, including design and estimating work. 2) If there are change orders required during the course of construction of Improvements, LESSOR shall provide to LESSEE a description of the work along with a cost proposal from the contractor. Upon LESSEE’s written acceptance of the cost proposal, LESSOR shall invoice LESSEE, and LESSEE shall prepay the costs. 3) Once the Improvements are complete and final costs are known, LESSOR shall provide LESSEE a reconciliation of actual costs compared to prepayments made by LESSEE. If actuals costs exceed the prepayments, LESSEE shall pay the difference to LESSOR. If the prepayments exceed the actual costs, LESSOR shall reimburse LESSEE. The required reconciliation payment from one party to the other shall be made within thirty (30) calendar days from the date of the reconciliation statement. 4) All cost estimates and billing by LESSOR will include a twelve percent (12%) administrative fee. The fee will be applied to the total cost incurred by LESSOR in providing the construction improvements. The fee represents the LESSOR’s cost to manage the task including procurement services, approval processes, management staff time, and supervision and overhead, however shall not include a profit component. 5) Failure of LESSEE to reimburse LESSOR for the invoiced amount within thirty (30) calendar days from date of invoice shall constitute a default of this Agreement by the terms of Section 49 TERMINATION BY LESSOR.