Hotel PIP Clause Samples

Hotel PIP. Attached hereto as Exhibit HH is a copy of the Property Improvement Plan for the Hotel (the “PIP”) as required by Franchisor. In connection therewith, Purchaser and Seller hereby agree as follows: (a) From and after the Effective Date until the Closing, Seller and Purchaser will cooperate with each other to negotiate in good faith with Franchisor to reduce the scope of PIP items required by Marriott. (b) Seller shall be responsible, at no cost to Purchaser, for completing the PIP items identified on Exhibit HH as a “Vail Obligation.” (c) Seller shall contribute one dollar (up to an aggregate of $750,000) to fund the PIP under the new franchise agreement for the Hotel for every two dollars that Purchaser funds; provided, however, that Seller’s obligation to contribute to PIP funding shall commence only after Purchaser has expended $2,000,000 for the PIP from the FF&E Reserve.