Common use of Items to be Paid from Reserves Clause in Contracts

Items to be Paid from Reserves. A. To the extent funds are in the applicable Reserves for each Hotel or such funds are provided by Tenant or Landlord under Section 5.07 hereof, Manager shall promptly make or cause to be made, all of the items listed in Section 5.03.B below as are necessary to comply with Manager’s obligations under Section 5.01 hereof. The cost of such items shall be paid from the applicable Reserve and not from Gross Revenues of a Hotel. B. Manager has established for each Hotel, and currently holds funds in, an interest bearing escrow reserve account (each, a “Reserve” and collectively, the “Reserves”), which Reserves shall not be comingled with any other funds except for the Reserves of other Portfolio Properties, in a bank or similar institution designated by Manager and reasonably acceptable to Tenant and Landlord, to cover the cost of: 1. Replacements, renewals and additions related to the FF&E at each Hotel; and 2. Subject to Section 5.02 hereof, routine or non-major repairs, renovations, renewals, additions, alterations, improvements or replacements and maintenance to each Hotel which are normally capitalized (as opposed to expensed) under GAAP, such as exterior and interior repainting; resurfacing building walls, floors, roofs and parking areas; and replacing folding walls and the like (but which are not major repairs, alterations, improvements, renewals, replacements, or additions to each Hotel’s structure, roof, or exterior façade, or to its mechanical, electrical, heating, ventilating, air conditioning, plumbing or vertical transportation systems); and 3. Major repairs, renovations, additions, alterations, improvements, renewals or replacements to each Hotel including, without limitation, with respect to its structure, roof, or exterior façade, and to its mechanical, electrical, heating, ventilating, air conditioning, plumbing or vertical transportation systems; and 4. All lease payments for equipment and other personal property reasonably necessary for the operation of each Hotel; and C. Manager shall transfer into the Reserve for each Hotel the amounts as provided on the applicable Addendum. Transfers into each Reserve shall be made at the time of each interim accounting described in Section 4.01.A hereof. All amounts transferred to each Reserve shall be deducted from Gross Revenues in determining Operating Profit for the applicable Hotel and shall be deposited in the Reserve account described in Section 5.03.B. D. Manager shall from time to time, with respect to each Hotel, make expenditures for the items described in Sections 5.03.B(1), (2), (3), and (4), as it deems necessary without the approval of Landlord or Tenant. At the end of each Fiscal Year, any amounts remaining in the Reserve for a Hotel shall be carried forward to the next Fiscal Year. Proceeds from the sale of FF&E no longer necessary to the operation of a Hotel shall be added to the Reserve for such Hotel, and shall not be included in Gross Revenue for such Hotel. The Reserves will be kept in interest-bearing accounts, and any interest which accrues thereon shall be retained in such Reserve. Neither (1) proceeds from the disposition of FF&E, nor (2) interest which accrues on amounts held in the Reserves, shall (a) result in any reduction in the required contributions to the Reserves set forth in Section 5.03.C above, nor (b) be included in Gross Revenues.

Items to be Paid from Reserves. A. To the extent funds are in the applicable Reserves for each Hotel or such funds are provided by Tenant or Landlord under Section 5.07 hereof, Manager shall promptly make or cause to be made, all of the items listed in Section 5.03.B below as are necessary to comply with Manager’s 's obligations under Section 5.01 hereof. The cost of such items shall be paid from the applicable Reserve and not from Gross Revenues of a Hotel. B. Manager has established shall establish for each Hotel, and currently holds funds in, Hotel an interest bearing escrow reserve account (each, each a “"Reserve” " and collectively, collectively the “"Reserves”"), which Reserves shall not be comingled with any other funds except for the Reserves of other Portfolio Properties, in a bank or similar institution designated by Manager and reasonably acceptable to Tenant and Landlord, to cover the cost of: 1. Replacements, renewals and additions related to the FF&E at each Hotel; and 2. Subject to Section 5.02 hereof, routine or non-major repairs, renovations, renewals, additions, alterations, improvements or replacements and maintenance to each Hotel which are normally capitalized (as opposed to expensed) under GAAPgenerally accepted accounting principles consistently applied, such as exterior and interior repainting; resurfacing building walls, floors, roofs and parking areas; and replacing folding walls and the like (but which are not major repairs, alterations, improvements, renewals, replacements, or additions to each Hotel’s 's structure, roof, or exterior façadefacade, or to its mechanical, electrical, heating, ventilating, air conditioning, plumbing or vertical transportation systems); and 3. Major repairs, renovations, additions, alterations, improvements, renewals or replacements to each Hotel including, without limitation, with respect to its structure, roof, or exterior façadefacade, and to its mechanical, electrical, heating, ventilating, air conditioning, plumbing or vertical transportation systems; and 4. All lease payments for equipment and other personal property reasonably necessary for the operation of each Hotel; and 5. Repairs, renewals or replacements, and other expenditures having a cost, in the aggregate, in excess of $25,000 per Fiscal Year at each Hotel that are, in each case, not otherwise covered under 1 through 3 above but are required to comply with Legal Requirements and Insurance Requirements. C. Upon the Effective Date, Manager shall transfer the existing Reserve for each Hotel as provided in the Agreement to Lease and applicable Purchase and Sale Agreement, in the amount set forth on each applicable Addendum. After the Effective Date, Manager shall transfer into the Reserve for each Hotel the amounts as provided on the applicable Addendum. Transfers into each Reserve shall be made at the time of each interim accounting described in Section 4.01.A hereof. All amounts transferred to each Reserve shall be deducted from Gross Revenues in determining Operating Profit for the applicable Hotel and shall be deposited in the Reserve account described in Section 5.03.B. D. Manager shall from time to time, with respect to each Hotel, make expenditures for the items described in Sections 5.03.B(1), (2), (3), and (4), as it deems necessary without the approval of Landlord or Tenant. At the end of each Fiscal Year, any amounts remaining in the Reserve for a Hotel shall be carried forward to the next Fiscal Year. Proceeds from the sale of FF&E no longer necessary to the operation of a Hotel shall be added to the Reserve for such Hotel, and shall not be included in Gross Revenue for such Hotel. The Reserves will be kept in interest-bearing accounts, and any interest which accrues thereon shall be retained in such Reserve. Neither (1) proceeds from the disposition of FF&E, nor (2) interest which accrues on amounts held in the Reserves, shall (a) result in any reduction in the required contributions to the Reserves set forth in Section 5.03.C above, nor (b) be included in Gross Revenues.Section

Items to be Paid from Reserves. A. To the extent funds are in the applicable Reserves for each the Hotel or such funds are provided by Tenant or Landlord under Section 5.07 hereof, Manager shall promptly make or cause to be made, all of the items listed in Section 5.03.B below as are necessary to comply with Manager’s obligations under Section 5.01 hereof. The cost of such items shall be paid from the applicable Reserve and not from Gross Revenues of a the Hotel. B. Manager has established for each the Hotel, and currently holds funds in, an interest bearing escrow reserve account (each, a “Reserve” and collectively, the “Reserves”), which Reserves shall not be comingled with any other funds except for the Reserves of other Portfolio Properties, in a bank or similar institution designated by Manager and reasonably acceptable to Tenant and Landlord, to cover the cost of: 1. Replacements, renewals and additions related to the FF&E at each the Hotel; and 2. Subject to Section 5.02 hereof, routine or non-major repairs, renovations, renewals, additions, alterations, improvements or replacements and maintenance to each the Hotel which are normally capitalized (as opposed to expensed) under GAAP, such as exterior and interior repainting; resurfacing building walls, floors, roofs and parking areas; and replacing folding walls and the like (but which are not major repairs, alterations, improvements, renewals, replacements, or additions to each the Hotel’s structure, roof, or exterior façade, or to its mechanical, electrical, heating, ventilating, air conditioning, plumbing or vertical transportation systems); and 3. Major repairs, renovations, additions, alterations, improvements, renewals or replacements to each the Hotel including, without limitation, with respect to its structure, roof, or exterior façade, and to its mechanical, electrical, heating, ventilating, air conditioning, plumbing or vertical transportation systems; and 4. All lease payments for equipment and other personal property reasonably necessary for the operation of each the Hotel; and C. Manager shall transfer into the Reserve for each the Hotel the amounts as provided on the applicable Addendum. Transfers into each Reserve shall be made at the time of each interim accounting described in Section 4.01.A hereof. All amounts transferred to each Reserve shall be deducted from Gross Revenues in determining Operating Profit for the applicable Hotel and shall be deposited in the Reserve account described in Section 5.03.B. D. Manager shall from time to time, with respect to each Hotel, time make expenditures for the items described in Sections 5.03.B(1), (2), (3), and (4), as it deems necessary without the approval of Landlord or Tenant. At the end of each Fiscal Year, any amounts remaining in the Reserve for a the Hotel shall be carried forward to the next Fiscal Year. Proceeds from the sale of FF&E no longer necessary to the operation of a the Hotel shall be added to the Reserve for such the Hotel, and shall not be included in Gross Revenue for such the Hotel. The Reserves will be kept in interest-bearing accounts, and any interest which accrues thereon shall be retained in such Reserve. Neither (1) proceeds from the disposition of FF&E, nor (2) interest which accrues on amounts held in the Reserves, shall (a) result in any reduction in the required contributions to the Reserves set forth in Section 5.03.C above, nor (b) be included in Gross Revenues.

Items to be Paid from Reserves. A. To the extent funds are in the applicable Reserves for each Hotel or such funds are provided by Tenant or Landlord under Section 5.07 hereof, Manager shall promptly make or cause to be made, all of the items listed in Section 5.03.B below as are necessary to comply with Manager’s obligations under Section 5.01 hereof. The cost of such items shall be paid from the applicable Reserve and not from Gross Revenues of a Hotel. B. Manager has established for each Hotel, and currently holds funds in, an interest bearing escrow reserve account (each, each a “Reserve” and collectively, collectively the “Reserves”), which Reserves shall not be comingled with any other funds except for the Reserves of other Portfolio Properties, in a bank or similar institution designated by Manager and reasonably acceptable to Tenant and Landlord, to cover the cost of: 1. Replacements, renewals and additions related to the FF&E at each Hotel; and 2. Subject to Section 5.02 hereof, routine or non-major repairs, renovations, renewals, additions, alterations, improvements or replacements and maintenance to each Hotel which are normally capitalized (as opposed to expensed) under GAAP, such as exterior and interior repainting; resurfacing building walls, floors, roofs and parking areas; and replacing folding walls and the like (but which are not major repairs, alterations, improvements, renewals, replacements, or additions to each Hotel’s structure, roof, or exterior façade, or to its mechanical, electrical, heating, ventilating, air conditioning, plumbing or vertical transportation systems); and 3. Major repairs, renovations, additions, alterations, improvements, renewals or replacements to each Hotel including, without limitation, with respect to its structure, roof, or exterior façade, and to its mechanical, electrical, heating, ventilating, air conditioning, plumbing or vertical transportation systems; and 4. All lease payments for equipment and other personal property reasonably necessary for the operation of each Hotel; and 5. Repairs, renewals or replacements, and other expenditures having a cost, in the aggregate, in excess of $25,000 per Fiscal Year at each Hotel that are, in each case, not otherwise covered under 1 through 3 above but are required to comply with Legal Requirements and Insurance Requirements. C. After the Effective Date, Manager shall transfer into the Reserve for each Hotel the amounts as provided on the applicable Addendum. Transfers into each Reserve shall be made at the time of each interim accounting described in Section 4.01.A hereof. All amounts transferred to each Reserve shall be deducted from Gross Revenues in determining Operating Profit for the applicable Hotel and shall be deposited in the special Reserve account described in Section 5.03.B. D. Manager shall from time to time, with respect to each Hotel, make expenditures for the items described in Sections 5.03.B(1), (2B(2), (3B(3), B(4) and (4B(5), as it deems necessary without the approval of Landlord or Tenant. At the end of each Fiscal Year, any amounts remaining in the Reserve for a Hotel shall be carried forward to the next Fiscal Year. Proceeds from the sale of FF&E no longer necessary to the operation of a Hotel shall be added to the Reserve for such Hotel, and shall not be included in Gross Revenue for such Hotel. The Reserves will be kept in interest-bearing accounts, and any interest which accrues thereon shall be retained in such Reserve. Neither (1) proceeds from the disposition of FF&E, nor (2) interest which accrues on amounts held in the Reserves, shall (a) result in any reduction in the required contributions to the Reserves set forth in Section 5.03.C above, nor (b) be included in Gross Revenues.