Common use of FF&E Reserve Clause in Contracts

FF&E Reserve. Tenant shall cause Manager to establish and maintain a reserve account (the "FF&E RESERVE") in accordance with the terms of the Management Agreement and to deposit into such account during each Fiscal Year monies for the account of Landlord (which amounts shall be funds of Landlord for all purposes and shall be credited against the Rent obligation of Tenant pursuant to Section 3.1.6(f)) in the amount required to be maintained pursuant to the Management Agreement and in accordance with established custom of Manager prior to the Commencement Date. Landlord shall be responsible for the payment of all amounts required to be paid by "Owner" (as defined in the Management Agreement) pursuant to the Management Agreement to fund the FF&E Reserve, including, without limitation, any deficits therein, and for paying for all FF&E necessary for the continued operation of the Facility in accordance with First Class Operating Standards, subject to the provisions of Schedule 22.2. Tenant shall ------------- make no expenditure for replacement of FF&E in excess of the amounts in the FF&E Reserve without first obtaining the written approval of Landlord (unless Tenant makes such expenditures from its own funds without any right to reimbursement hereunder). In the event Tenant funds any amounts required to be funded by Landlord for FF&E pursuant hereto or by "Owner" pursuant to the Management Agreement which Landlord has approved, Tenant shall receive a reimbursement in accordance with Section 3.1.6(f) hereof. Any additions to or replacements of furniture, fixtures, and equipment located at the Leased Property shall become part of the FF&E which is owned by Landlord, subject to the limitations set forth in Schedule 22.2 hereof. Throughout the Term of this Lease, Tenant shall, at its ------------- sole cost and expense but subject to the terms hereof and of the Management Agreement, cause all of the items of FF&E to be in proper working order and in good condition (ordinary wear and tear excepted).

FF&E Reserve. Tenant shall cause Manager to establish and maintain a reserve account (the "FF&E RESERVEReserve") in accordance with the terms of the Management Agreement and to deposit into such account during each Fiscal Year monies for the account of Landlord (which amounts shall be funds of Landlord for all purposes and shall be credited against the Rent obligation of Tenant pursuant to Section 3.1.6(f)) in the amount required to be maintained pursuant to the Management Agreement and in accordance with established custom of Manager prior to the Commencement Date. Landlord shall be responsible for the payment of all amounts required to be paid by "Owner" (as defined in the Management Agreement) pursuant to the Management Agreement to fund the FF&E Reserve, including, without limitation, any deficits therein, and for paying for all FF&E necessary for the continued operation of the Facility in accordance with First Class Operating Standards, subject to the provisions of Schedule 22.2. Tenant shall ------------- make no expenditure for replacement ------------- of FF&E in excess of the amounts in the FF&E Reserve or otherwise required by the Management Agreement without first obtaining the written approval of Landlord (unless Tenant makes such expenditures from its own funds without any right to reimbursement hereunder). In the event Tenant funds any amounts required to be funded by Landlord for FF&E pursuant hereto or by "Owner" pursuant to the Management Agreement which Landlord has approvedAgreement, Tenant shall receive a reimbursement credit against Rent in accordance with Section 3.1.6(f) 3.1.6 hereof. Any additions to or replacements of furniture, fixtures, and equipment located at the Leased Property shall become part of the FF&E which is owned by Landlord, subject to the limitations set forth in Schedule 22.2 hereof. ------------- Throughout the Term of this Lease, Tenant shall, at its ------------- sole cost and expense but subject to the terms hereof and of the Management Agreement, cause all of the items of FF&E to be in proper working order and in good condition (ordinary wear and tear excepted).

FF&E Reserve. Tenant Borrower shall cause Manager to establish expend for FF&E and maintain a reserve account capital improvements for the Project (i) for the "FF&E RESERVE") in accordance with Rolling Period beginning on the terms first day of the Management Agreement and first month following the Opening Date, an amount equal to deposit into or greater than two percent (2%) of the Revenues for such account during each Fiscal Year monies Rolling Period, (ii) for the account Rolling Period following the first anniversary of Landlord such date, an amount equal to or greater than three percent (which 3%) of the Revenues for such Rolling Period, and (iii) for the Rolling Period following the second or any subsequent anniversary of such date, an amount equal to or greater than four percent (4%) of the Revenues for such Rolling Period. To the extent Borrower does not provide evidence, reasonably satisfactory to Administrative Agent, that Borrower has spent such sum during such applicable Rolling Period, Borrower shall pay Administrative Agent such amount not spent. Any amounts so paid to Administrative Agent are hereinafter referred to as the “FF&E Reserve.” Administrative Agent shall be funds of Landlord hold the FF&E Reserve in escrow as additional collateral for all purposes the Indebtedness for Borrower’s use to fund FF&E and shall be credited against capital improvements for the Rent obligation of Tenant pursuant to Section 3.1.6(f)) Project in a future Rolling Period after Borrower has spent in the amount aggregate the amounts required to be maintained pursuant to the Management Agreement and in accordance with established custom first sentence of Manager prior this paragraph during such Rolling Period. From time to the Commencement Date. Landlord shall be responsible for the payment of all amounts required time, when Borrower is entitled to be paid by "Owner" (as defined in the Management Agreement) pursuant to the Management Agreement to fund use the FF&E Reserve, including, without limitation, any deficits therein, and for paying for all Borrower may request Administrative Agent to disburse portions of the FF&E necessary Reserve for the continued operation purpose of acquiring, repairing or replacing FF&E or other capital expenditures approved by Administrative Agent or contained in the Capital Budget. Disbursements of the Facility in accordance with First Class Operating Standards, FF&E Reserve shall be subject to the provisions following: (i) no default under this Agreement or any of Schedule 22.2. Tenant the other Loan Documents shall ------------- make no have occurred and be continuing; (ii) each request for disbursement shall be in writing and delivered at least fifteen (15) Business Days prior to the date of any such disbursement; (iii) not more than one (1) disbursement shall be made during any calendar month nor shall any request be for an amount less than Twenty-Five Thousand and No/100 Dollars ($25,000); (iv) each disbursement request shall be accompanied by such invoices, bills of sale, cancelled checks, sworn contractor’s statements and lien waivers, as applicable, and such other evidence as Administrative Agent may reasonably request in order to confirm the amount and purpose of each such expenditure or reimbursement included in such disbursement request; and (v) each disbursement will be used solely for replacement the acquisition of FF&E or other capital expenditures approved by Administrative Agent or contained in excess the Capital Budget portion of the amounts Annual Budget. The FF&E Reserve may be commingled with the general funds of Administrative Agent and shall not be deemed to be held in trust for the benefit of Borrower. If an Event of Default occurs, Administrative Agent shall have the right to apply all or any portion of the FF&E Reserve to the obligations evidenced by the Loan Documents in such order as Administrative Agent in its sole discretion determines. Borrower shall execute such security or other agreements or authorize such UCC financing statements as Administrative Agent shall reasonably request in connection with the Administrative Agent’s security interest in the FF&E Reserve without first obtaining the written approval of Landlord (unless Tenant makes such expenditures from its own funds without any right to reimbursement hereunder). In the event Tenant funds any amounts required to be funded by Landlord for FF&E pursuant hereto or by "Owner" pursuant to the Management Agreement which Landlord has approved, Tenant shall receive a reimbursement in accordance with Section 3.1.6(f) hereof. Any additions to or replacements of furniture, fixtures, and equipment located at the Leased Property shall become part of the FF&E which is owned by Landlord, subject to the limitations set forth in Schedule 22.2 hereof. Throughout the Term of this Lease, Tenant shall, at its ------------- sole cost and expense but subject to the terms hereof and of the Management Agreement, cause all of the items of FF&E to be in proper working order and in good condition (ordinary wear and tear excepted)Reserve.

FF&E Reserve. Tenant Operating Lessee shall cause Manager to establish and maintain a reserve account (the "FF&E RESERVEReserve") in accordance with the terms of the Management Agreement and to deposit into such account during each Fiscal Year monies for the account of Landlord Operating Lessor (which amounts shall be funds of Landlord Operating Lessor for all purposes and shall be credited against the Rent obligation of Tenant pursuant reimbursed to Operating Lessee in accordance with Section 3.1.6(f)) in the amount required to be maintained pursuant to the Management Agreement and in accordance with established custom of Manager prior to the Commencement Date. Landlord Operating Lessor shall be responsible for the payment of all amounts required to be paid by "Owner" (as defined in the Management Agreement) pursuant to the Management Agreement to fund the FF&E Reserve, including, without limitation, any deficits therein, and for paying for all FF&E necessary for the continued operation of the Facility in accordance with First Class Operating Standards, subject to the provisions of Schedule 22.2. Tenant Operating Lessee shall ------------- make no expenditure for replacement of FF&E in excess of the amounts in the FF&E Reserve without first obtaining the written approval of Landlord Operating Lessor (unless Tenant Operating Lessee makes such expenditures from its own funds without any right to reimbursement hereunder). In the event Tenant Operating Lessee funds any amounts required to be funded by Landlord Operating Lessor for FF&E pursuant hereto or by "Owner" pursuant to the Management Agreement which Landlord Operating Lessor has approved, Tenant Operating Lessee shall receive a reimbursement in accordance with Section 3.1.6(f) hereof. Any additions to or replacements of furniture, fixtures, and equipment located at the Leased Property shall become part of the FF&E which is owned by LandlordOperating Lessor, subject to the limitations set forth in Schedule 22.2 hereof. Throughout the Term of this Lease, Tenant Operating Lessee shall, at its ------------- sole cost and expense but subject to the terms hereof and of the Management Agreement, cause all of the items of FF&E to be in proper working order and in good condition (ordinary wear and tear excepted).