Common use of Furniture, Fixture and Equipment Allowance Clause in Contracts

Furniture, Fixture and Equipment Allowance. Lessor shall be obligated to pay Lessee, when and as required to meet the requirements of the Franchise Agreement and the Management Agreement for a reserve for periodic repair, replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property, an amount equal up to five percent (5%) of Suite Revenues monthly. Upon written request by Lessee to Lessor stating the specific use to be made and the reasonable approval thereof by Lessor (or as otherwise required by the franchisor under the Franchise Agreement or Manager under the Management Agreement), such reserve funds (and additional funds of Lessor, if necessary) shall be made available by Lessor for use by Lessee for replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property in connection with the Primary Intended Use; provided, however, that no amounts made available under this Article shall be used to purchase property (other than “real property” within the meaning of Treasury Regulations Section 1.856-3(d)), to the extent that doing so would cause Lessor to recognize income other than “rents from real property” as defined in Section 856(d) of the Code. Lessor’s obligation shall be cumulative, but not compounded, and any amounts that have accrued hereunder shall be payable in future periods for such uses and in accordance with the procedure set forth herein. Lessee shall have no interest in any accrued obligation of Lessor hereunder after the termination of this Lease.

Appears in 24 contracts

Samples: Hotel Lease Agreement, Hotel Lease Agreement (Apple REIT Ten, Inc.), Hotel Lease Agreement (Apple REIT Ten, Inc.)

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Furniture, Fixture and Equipment Allowance. Lessor shall be obligated to pay Lessee, when and as required to meet the requirements of the Franchise Agreement and the Management Agreement for a reserve for periodic repair, replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property, an amount equal up to five percent (5%) of Suite Revenues monthly. Upon written request by Lessee to Lessor stating the specific use to be made and the reasonable approval thereof by Lessor (or as otherwise required by the franchisor under the Franchise Agreement or Manager under the Management Agreement), such reserve funds (and additional funds of Lessor, if necessary) shall be made available by Lessor for use by Lessee for replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property in connection with the Primary Intended Use; provided, however, that no amounts made available under this Article shall be used to purchase property (other than "real property" within the meaning of Treasury Regulations Section 1.856-3(d)), to the extent that doing so would cause Lessor to recognize income other than "rents from real property" as defined in Section 856(d) of the Code. Lessor’s 's obligation shall be cumulative, but not compounded, and any amounts that have accrued hereunder shall be payable in future periods for such uses and in accordance with the procedure set forth herein. Lessee shall have no interest in any accrued obligation of Lessor hereunder after the termination of this Lease.

Appears in 4 contracts

Samples: Master Hotel Lease Agreement (Apple Suites Inc), Hotel Lease Agreement (Apple Suites Inc), Master Hotel Lease Agreement (Apple Suites Inc)

Furniture, Fixture and Equipment Allowance. Upon the execution of this Lease, Lessor shall be obligated to pay Lessee, when and have funded a $0 reserve (“PIP Reserve”) as required under the Initial Loan Documents to meet the requirements of the Franchise Agreement and the Management Agreement for a reserve for periodic repair, replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property, an amount equal up . Additional monthly reserves for such purpose required to five percent (5%) meet the terms of Suite Revenues monthlythe Loan Documents shall be the obligation of the Lessor. Upon written request by Lessee Any requirements in addition to Lessor stating the specific use Loan Documents pursuant to be made and the reasonable approval thereof by Lessor Management Agreement (or as otherwise required by the franchisor under the Franchise Agreement or Manager under the Management Agreement), such reserve funds (and additional funds of Lessor, if necessaryapplicable) shall be the obligation of the Lessee. Subject to the provisions of the Loan Documents, the PIP Reserve shall be made available by Lessor for use by Lessee for replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property in connection with the Primary Intended Use; provided, however, that no amounts made available under this Article shall be used to purchase property (other than “real property” within the meaning of Treasury Regulations Section 1.856-3(d)), to the extent that doing so would cause Lessor to recognize income other than “rents from real property” as defined in Section 856(d) of the Code. Lessor’s obligation shall be cumulative, but not compounded, and any amounts that have accrued hereunder shall be payable in future periods for such uses and in accordance with the procedure set forth herein. Lessee shall have no interest in any accrued obligation of Lessor hereunder after the termination of this Lease.

Appears in 3 contracts

Samples: Hotel Lease Agreement (Moody National REIT II, Inc.), Hotel Lease Agreement (Moody National REIT I, Inc.), Hotel Lease Agreement (Moody National REIT I, Inc.)

Furniture, Fixture and Equipment Allowance. Lessor shall be obligated ------------------------------------------- to pay Lessee, when and as required to meet the requirements of the Franchise Agreement and the Management Agreement for a reserve for periodic repair, replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property, an amount equal up to five percent (5%) of Suite Revenues monthly. Upon written request by Lessee to Lessor stating the specific use to be made and the reasonable approval thereof by Lessor (or as otherwise required by the franchisor under the Franchise Agreement or Manager under the Management Agreement), such reserve funds (and additional funds of Lessor, if necessary) shall be made available by Lessor for use by Lessee for replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property in connection with the Primary Intended Use; provided, however, that no amounts made available under this Article shall be used to purchase property (other than "real property" within the meaning of Treasury Regulations Section 1.856-3(d)), to the extent that doing so would cause Lessor to recognize income other than "rents from real property" as defined in Section 856(d) of the Code. Lessor’s 's obligation shall be cumulative, but not compounded, and any amounts that have accrued hereunder shall be payable in future periods for such uses and in accordance with the procedure set forth herein. Lessee shall have no interest in any accrued obligation of Lessor hereunder after the termination of this Lease.

Appears in 1 contract

Samples: Master Hotel Lease Agreement (Apple Hospitality Two Inc)

Furniture, Fixture and Equipment Allowance. Lessor shall be obligated to pay Lessee, when and as required to meet the requirements of the Franchise Agreement and the Management Agreement for a reserve for periodic repair, replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property, an amount equal up to five four percent (54%) of Suite Room Revenues monthly. Upon written request by Lessee to Lessor stating the specific use to be made and the reasonable approval thereof by Lessor (or as otherwise required by the franchisor under the Franchise Agreement or Manager under the Management Agreement), such reserve funds (and additional funds of Lessor, if necessary) shall be made available by Lessor for use by Lessee for replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property in connection with the Primary Intended Use; provided, however, that no amounts made available under this Article shall be used to purchase property (other than "real property" within the meaning of Treasury Regulations Section 1.856-3(d1.8563(d)), to the extent that doing so would cause Lessor to recognize income other than "rents from real property" as defined in Section 856(d) of the Code. Lessor’s 's obligation shall be cumulative, but not compounded, and any amounts that have accrued hereunder shall be payable in future periods for such uses and in accordance with the procedure set forth herein. Lessee shall have no interest in any accrued obligation of Lessor hereunder after the termination of this Lease.

Appears in 1 contract

Samples: Contract for Purchase and Sale of Hotels (Itt Corp /Nv/)

Furniture, Fixture and Equipment Allowance. Lessor shall be obligated to pay Lessee, when and as required to meet the requirements of the Franchise Agreement and the Management Agreement for a reserve for periodic repair, replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property, an amount equal up to five six percent (56%) of Suite Revenues monthly. Upon written request by Lessee to Lessor stating the specific use to be made and the reasonable approval thereof by Lessor (or as otherwise required by the franchisor under the Franchise Agreement or Manager under the Management Agreement), such reserve funds (and additional funds of Lessor, if necessary) shall be made available by Lessor for use by Lessee for replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property in connection with the Primary Intended Use; provided, however, that no amounts made available under this Article shall be used to purchase property (other than "real property" within the meaning of Treasury Regulations Section 1.856-3(d)), to the extent that doing so would cause Lessor to recognize income other than "rents from real property" as defined in Section 856(d) of the Code. Lessor’s 's obligation shall be cumulative, but not compounded, and any amounts that have accrued hereunder shall be payable in future periods for such uses and in accordance with the procedure set forth herein. Lessee shall have no interest in any accrued obligation of Lessor hereunder after the termination of this Lease.

Appears in 1 contract

Samples: Master Hotel Lease Agreement (Apple Hospitality Two Inc)

Furniture, Fixture and Equipment Allowance. Lessor shall be obligated to pay Lessee, when and as required to meet the requirements of the Franchise Agreement and the Management Agreement for a reserve for periodic repair, replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property, an amount equal up to five four percent (54%) of Suite Room Revenues monthly. Upon written request by Lessee to Lessor stating the specific use to be made and the reasonable approval thereof by Lessor (or as otherwise required by the franchisor under the Franchise Agreement or Manager under the Management Agreement), such reserve funds (and additional funds of Lessor, if necessary) shall be made available by Lessor for use by Lessee for replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property in connection with the Primary Intended Use; provided, however, that no amounts made available under this Article shall be used to purchase property (other than "real property" within the meaning of Treasury Regulations Section 1.856-3(d1.8563(d)), to the extent that doing so would cause Lessor to recognize income other than "rents from real property" as defined in Section 856(d) of the Code. Lessor’s 's obligation shall be cumulative, but not compounded, and any amounts that have accrued hereunder shall be payable in future periods for such uses and in accordance with the procedure set forth herein. Lessee shall have no interest in any accrued obligation of Lessor hereunder after the termination of this Lease.. 164

Appears in 1 contract

Samples: Contract for Purchase and Sale of Hotels (Felcor Suite Hotels Inc)

Furniture, Fixture and Equipment Allowance. Upon the execution of this Lease, Lessor shall be obligated to pay Lessee, when and have funded a $______ reserve (“PIP Reserve”) as required under the Initial Loan Documents (as may be modified from time to time) to meet the requirements of the Franchise Agreement and the Management Agreement for a reserve for periodic repair, replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property, an amount equal up . Additional monthly reserves for such purpose required to five percent (5%) meet the terms of Suite Revenues monthlythe Loan Documents shall be the obligation of the Lessor. Upon written request by Lessee Any requirements in addition to Lessor stating the specific use Loan Documents pursuant to be made and the reasonable approval thereof by Lessor Management Agreement (or as otherwise required by the franchisor under the Franchise Agreement or Manager under the Management Agreement), such reserve funds (and additional funds of Lessor, if necessaryapplicable) shall be the obligation of the Lessee. Subject to the provisions of the Loan Documents, the PIP Reserve shall be made available by Lessor for use by Lessee for replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property in connection with the Primary Intended Use; provided, however, that no amounts made available under this Article shall be used to purchase property (other than “real property” within the meaning of Treasury Regulations Section 1.856-3(d)), to the extent that doing so would cause Lessor to recognize income other than “rents from real property” as defined in Section 856(d) of the Code. Lessor’s obligation shall be cumulative, but not compounded, and any amounts that have accrued hereunder shall be payable in future periods for such uses and in accordance with the procedure set forth herein. Lessee shall have no interest in any accrued obligation of Lessor hereunder after the termination of this Lease.

Appears in 1 contract

Samples: Master Lease Agreement (Moody National REIT I, Inc.)

Furniture, Fixture and Equipment Allowance. Upon the execution of this Lease, Lessor shall be obligated to pay Lessee, when and have funded a $1,315,870.15 reserve (“PIP Reserve”) as required under the Initial Loan Documents to meet the requirements of the Franchise Agreement and the Management Agreement for a reserve for periodic repair, replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property. Additional monthly reserve for such purpose required to meet the terms of the Loan Documents, an amount equal up to five percent (5%) of Suite Revenues monthly. Upon written request by Lessee to Lessor stating the specific use to be made and the reasonable approval thereof by Lessor Management Agreement (or as otherwise required by the franchisor under the Franchise Agreement or Manager under the Management Agreement), such reserve funds (and additional funds of Lessor, if necessaryapplicable) shall be the obligation of the Lessee. Subject to the provisions of the Loan Documents, the PIP Reserve shall be made available by Lessor for use by Lessee for replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property in connection with the Primary Intended Use; provided, however, that no amounts made available under this Article shall be used to purchase property (other than “real property” within the meaning of Treasury Regulations Section 1.856-3(d)), to the extent that doing so would cause Lessor to recognize income other than “rents from real property” as defined in Section 856(d) of the Code. Lessor’s obligation shall be cumulative, but not compounded, and any amounts that have accrued hereunder shall be payable in future periods for such uses and in accordance with the procedure set forth herein. Lessee shall have no interest in any accrued obligation of Lessor hereunder after the termination of this Lease.

Appears in 1 contract

Samples: Hotel Lease Agreement (Moody National REIT I, Inc.)

Furniture, Fixture and Equipment Allowance. Upon the execution of this Lease, Lessor shall be obligated to pay Lessee, when and have funded a $0 reserve (“PIP Reserve”) as required under the Initial Loan Documents to meet the requirements of the Franchise Agreement and the Management Agreement for a reserve for periodic repair, replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property, an amount equal up . Additional monthly reserves for such purpose required to five percent (5%) meet the terms of Suite Revenues monthlythe Loan Documents shall be the obligation of the Lessor. Upon written request by Lessee Any requirements in addition to Lessor stating the specific use Loan Documents pursuant to be made and the reasonable approval thereof by Lessor Management Agreement (or as otherwise required by the franchisor under the Franchise Agreement or Manager under the Management Agreement), such reserve funds (and additional funds of Lessor, if necessaryapplicable) shall be the obligation of the Lessee. Subject to any provisions of the Loan Documents, the PIP Reserve shall be made available by Lessor for use by Lessee for replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property in connection with the Primary Intended Use; provided, however, that no amounts made available under this Article shall be used to purchase property (other than “real property” within the meaning of Treasury Regulations Section 1.856-3(d)), to the extent that doing so would cause Lessor to recognize income other than “rents from real property” as defined in Section 856(d) of the Code. Lessor’s obligation shall be cumulative, but not compounded, and any amounts that have accrued hereunder shall be payable in future periods for such uses and in accordance with the procedure set forth herein. Lessee shall have no interest in any accrued obligation of Lessor hereunder after the termination of this Lease.

Appears in 1 contract

Samples: Hotel Lease Agreement (Moody National REIT II, Inc.)

Furniture, Fixture and Equipment Allowance. Upon the execution of this Lease, Lessor shall be obligated to pay Lessee, when and have funded a $400,000 reserve (“PIP Reserve”) as required under the Initial Loan Documents to meet the requirements of the Franchise Agreement and the Management Agreement for a reserve for periodic repair, replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property. Additional monthly reserve for such purpose required to meet the terms of the Loan Documents, an amount equal up to five percent (5%) of Suite Revenues monthly. Upon written request by Lessee to Lessor stating the specific use to be made and the reasonable approval thereof by Lessor Management Agreement (or as otherwise required by the franchisor under the Franchise Agreement or Manager under the Management Agreement), such reserve funds (and additional funds of Lessor, if necessaryapplicable) shall be the obligation of the Lessee. Subject to the provisions of the Loan Documents, the PIP Reserve shall be made available by Lessor for use by Lessee for replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property in connection with the Primary Intended Use; provided, however, that no amounts made available under this Article shall be used to purchase property (other than “real property” within the meaning of Treasury Regulations Section 1.856-3(d)), to the extent that doing so would cause Lessor to recognize income other than “rents from real property” as defined in Section 856(d) of the Code. Lessor’s obligation shall be cumulative, but not compounded, and any amounts that have accrued hereunder shall be payable in future periods for such uses and in accordance with the procedure set forth herein. Lessee shall have no interest in any accrued obligation of Lessor hereunder after the termination of this Lease.

Appears in 1 contract

Samples: Hotel Lease Agreement (Moody National REIT I, Inc.)

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Furniture, Fixture and Equipment Allowance. Upon the execution of this Lease, Lessor shall be obligated to pay Lessee, when and have funded a $2,700,000 reserve (“PIP Reserve”) as required under the Initial Loan Documents to meet the requirements of the Franchise Agreement and the Management Agreement for a reserve for periodic repair, replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property, an amount equal up . Additional monthly reserves for such purpose required to five percent (5%) meet the terms of Suite Revenues monthlythe Loan Documents shall be the obligation of the Lessor. Upon written request by Lessee Any requirements in addition to Lessor stating the specific use Loan Documents pursuant to be made and the reasonable approval thereof by Lessor Management Agreement (or as otherwise required by the franchisor under the Franchise Agreement or Manager under the Management Agreement), such reserve funds (and additional funds of Lessor, if necessaryapplicable) shall be the obligation of the Lessee. Subject to the provisions of the Loan Documents, the PIP Reserve shall be made available by Lessor for use by Lessee for replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property in connection with the Primary Intended Use; provided, however, that no amounts made available under this Article shall be used to purchase property (other than “real property” within the meaning of Treasury Regulations Section 1.856-3(d)), to the extent that doing so would cause Lessor to recognize income other than “rents from real property” as defined in Section 856(d) of the Code. Lessor’s obligation shall be cumulative, but not compounded, and any amounts that have accrued hereunder shall be payable in future periods for such uses and in accordance with the procedure set forth herein. Lessee shall have no interest in any accrued obligation of Lessor hereunder after the termination of this Lease.

Appears in 1 contract

Samples: Hotel Lease Agreement (Moody National REIT I, Inc.)

Furniture, Fixture and Equipment Allowance. Lessor shall be obligated ------------------------------------------- to pay Lessee, when and as required to meet the requirements of the Franchise Agreement and the Management Agreement for a reserve for periodic repair, replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property, an amount equal up to five percent (5%) of Suite Revenues monthly. Upon written request by Lessee to Lessor stating the specific use to be made and the reasonable approval thereof by Lessor (or as otherwise required by the franchisor under the Franchise Agreement or Manager under the Management Agreement), such reserve funds (and additional funds of Lessor, if necessary) shall be made available by Lessor for use by Lessee for replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property in connection with the Primary Intended Use; provided, however, that no amounts made available under this Article shall be used to purchase property (other than "real property" within the meaning of Treasury Regulations Section 1.856-3(d)), to the extent that doing so would cause Lessor to recognize income other than "rents from real property" as defined in Section 856(d) of the Code. Lessor’s 's obligation shall be cumulative, but not compounded, and any amounts that have accrued hereunder shall be payable in future periods for such uses and in accordance with the procedure set forth herein. Lessee shall have no interest in any accrued obligation of Lessor hereunder after the termination of this Lease.

Appears in 1 contract

Samples: Hotel Lease Agreement (Apple Suites Inc)

Furniture, Fixture and Equipment Allowance. Upon the execution of this Lease, Lessor shall be obligated to pay Lessee, when and have funded a $675,428 reserve (“PIP Reserve”) as required under the Initial Loan Documents to meet the requirements of the Franchise Agreement and the Management Agreement for a reserve for periodic repair, replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property, an amount equal up . Additional monthly reserves for such purpose required to five percent (5%) meet the terms of Suite Revenues monthlythe Loan Documents shall be the obligation of the Lessor. Upon written request by Lessee Any requirements in addition to Lessor stating the specific use Loan Documents pursuant to be made and the reasonable approval thereof by Lessor Management Agreement (or as otherwise required by the franchisor under the Franchise Agreement or Manager under the Management Agreement), such reserve funds (and additional funds of Lessor, if necessaryapplicable) shall be the obligation of the Lessee. Subject to the provisions of the Loan Documents, the PIP Reserve shall be made available by Lessor for use by Lessee for replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property in connection with the Primary Intended Use; provided, however, that no amounts made available under this Article shall be used to purchase property (other than “real property” within the meaning of Treasury Regulations Section 1.856-3(d)), to the extent that doing so would cause Lessor to recognize income other than “rents from real property” as defined in Section 856(d) of the Code. Lessor’s obligation shall be cumulative, but not compounded, and any amounts that have accrued hereunder shall be payable in future periods for such uses and in accordance with the procedure set forth herein. Lessee shall have no interest in any accrued obligation of Lessor hereunder after the termination of this Lease.

Appears in 1 contract

Samples: Hotel Lease Agreement (Moody National REIT I, Inc.)

Furniture, Fixture and Equipment Allowance. Upon the execution of this Lease, Lessor shall be obligated to pay Lessee, when and have funded a [$______] reserve (“PIP Reserve”) as required under the Initial Loan Documents to meet the requirements of the Franchise Agreement and the Management Agreement for a reserve for periodic repair, replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property, an amount equal up . Additional monthly reserves for such purpose required to five percent (5%) meet the terms of Suite Revenues monthlythe Loan Documents shall be the obligation of the Lessor. Upon written request by Lessee Any requirements in addition to Lessor stating the specific use Loan Documents pursuant to be made and the reasonable approval thereof by Lessor Management Agreement (or as otherwise required by the franchisor under the Franchise Agreement or Manager under the Management Agreement), such reserve funds (and additional funds of Lessor, if necessaryapplicable) shall be the obligation of the Lessee. Subject to the provisions of the Loan Documents, the PIP Reserve shall be made available by Lessor for use by Lessee for replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property in connection with the Primary Intended Use; provided, however, that no amounts made available under this Article shall be used to purchase property (other than “real property” within the meaning of Treasury Regulations Section 1.856-3(d)), to the extent that doing so would cause Lessor to recognize income other than “rents from real property” as defined in Section 856(d) of the Code. Lessor’s obligation shall be cumulative, but not compounded, and any amounts that have accrued hereunder shall be payable in future periods for such uses and in accordance with the procedure set forth herein. Lessee shall have no interest in any accrued obligation of Lessor hereunder after the termination of this Lease.

Appears in 1 contract

Samples: Master Lease Agreement (Moody National REIT I, Inc.)

Furniture, Fixture and Equipment Allowance. Upon the execution of this Lease, Lessor shall be obligated to pay Lessee, when and have funded a $70,000 reserve (“PIP Reserve”) as required under the Initial Loan Documents to meet the requirements of the Franchise Agreement and the Management Agreement for a reserve for periodic repair, replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property, an amount equal up . Additional monthly reserves for such purpose required to five percent (5%) meet the terms of Suite Revenues monthlythe Loan Documents shall be the obligation of the Lessor. Upon written request by Lessee Any requirements in addition to Lessor stating the specific use Loan Documents pursuant to be made and the reasonable approval thereof by Lessor Management Agreement (or as otherwise required by the franchisor under the Franchise Agreement or Manager under the Management Agreement), such reserve funds (and additional funds of Lessor, if necessaryapplicable) shall be the obligation of the Lessee. Subject to the provisions of the Loan Documents, the PIP Reserve shall be made available by Lessor for use by Lessee for replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property in connection with the Primary Intended Use; provided, however, that no amounts made available under this Article shall be used to purchase property (other than “real property” within the meaning of Treasury Regulations Section 1.856-3(d)), to the extent that doing so would cause Lessor to recognize income other than “rents from real property” as defined in Section 856(d) of the Code. Lessor’s obligation shall be cumulative, but not compounded, and any amounts that have accrued hereunder shall be payable in future periods for such uses and in accordance with the procedure set forth herein. Lessee shall have no interest in any accrued obligation of Lessor hereunder after the termination of this Lease.

Appears in 1 contract

Samples: Hotel Lease Agreement (Moody National REIT II, Inc.)

Furniture, Fixture and Equipment Allowance. Lessor shall be ------------------------------------------ obligated to pay Lessee, when and as required to meet the requirements of the Franchise Agreement and the Management Agreement for a reserve for periodic repair, replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property, an amount equal up to five percent (5%) of Suite Revenues monthly. Upon written request by Lessee to Lessor stating the specific use to be made and the reasonable approval thereof by Lessor (or as otherwise required by the franchisor under the Franchise Agreement or Manager under the Management Agreement), such reserve funds (and additional funds of Lessor, if necessary) shall be made available by Lessor for use by Lessee for replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property in connection with the Primary Intended Use; provided, however, that no amounts made available under this Article shall be used to purchase property (other than "real property" within the meaning of Treasury Regulations Section 1.856-3(d)), to the extent that doing so would cause Lessor to recognize income other than "rents from real property" as defined in Section 856(d) of the Code. Lessor’s 's obligation shall be cumulative, but not compounded, and any amounts that have accrued hereunder shall be payable in future periods for such uses and in accordance with the procedure set forth herein. Lessee shall have no interest in any accrued obligation of Lessor hereunder after the termination of this Lease.

Appears in 1 contract

Samples: Hotel Lease Agreement (Apple Suites Inc)

Furniture, Fixture and Equipment Allowance. Lessor shall be obligated ------------------------------------------ to pay Lessee, when and as required to meet the requirements of the Franchise Agreement and the Management Agreement for a reserve for periodic repair, replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property, an amount equal up to five percent (5%) of Suite Revenues monthly. Upon written request by Lessee to Lessor stating the specific use to be made and the reasonable approval thereof by Lessor (or as otherwise required by the franchisor under the Franchise Agreement or Manager under the Management Agreement), such reserve funds (and additional funds of Lessor, if necessary) shall be made available by Lessor for use by Lessee for replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property in connection with the Primary Intended Use; provided, however, that no amounts made available under this Article shall be used to purchase property (other than "real property" within the meaning of Treasury Regulations Section 1.856-3(d)), to the extent that doing so would cause Lessor to recognize income other than "rents from real property" as defined in Section 856(d) of the Code. Lessor’s 's obligation shall be cumulative, but not compounded, and any amounts that have accrued hereunder shall be payable in future periods for such uses and in accordance with the procedure set forth herein. Lessee shall have no interest in any accrued obligation of Lessor hereunder after the termination of this Lease.

Appears in 1 contract

Samples: Master Hotel Lease Agreement (Apple Hospitality Two Inc)

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