Common use of Operation of Collateral Property Clause in Contracts

Operation of Collateral Property. The Borrower shall cause each Subsidiary Guarantor and Operating Lessee to: (a) operate each Collateral Property in compliance with Applicable Law in all material respects; (b) promptly perform and/or observe (or cause to be performed and/or observed) in all material respects the covenants and agreements required to be performed and observed by it under the Material Contracts to which it is a party and do all things necessary to preserve and to keep unimpaired their material rights thereunder; (c) promptly notify the Administrative Agent of any material default under any Management Agreement or Franchise Agreement of which it is aware; (d) promptly deliver to the Administrative Agent a copy of each PIP, inspection report and any other written notice or report received by it under any Management Agreement or Franchise Agreement; (e) maintain Inventory at the applicable Collateral Property in amounts required to meet the standards from time to time required by the applicable Manager and Franchisor; (f) maintain all material Licenses for the applicable Collateral Property in full force and effect and promptly comply with all conditions thereof; and (g) reasonably cooperate in obtaining from each Franchisor under a Franchise Agreement for each proposed Collateral Property (whether before or after such Property becomes a Collateral Property) a “comfort letter” from such Franchisor with respect to such Franchise Agreement, including if required by such Franchisor the execution by the applicable Operating Lessee and Subsidiary Guarantor of such comfort letter; provided, however, that Borrower or such Subsidiary Guarantor or Operating Lessee, as the case may be, shall not be required to (i) make any amendments or other modifications to any Franchise Agreement once entered into; (ii) pay any fees to any Franchisor in connection with the foregoing (except for standard, commercially reasonable issuance fees) or (iii) make any other concessions in connection with the foregoing (except for standard requirements in such Franchisor’s comfort letters).

Operation of Collateral Property. The Borrower shall cause each Subsidiary Guarantor and Operating Lessee to: (a) operate each Collateral Property in compliance with Applicable Law in all material respects; (b) promptly perform and/or observe (or cause to be performed and/or observed) in all material respects the covenants and agreements required to be performed and observed by it under the Material Contracts to which it is a party and do all things necessary to preserve and to keep unimpaired their material rights thereunder; (c) promptly notify the Administrative Agent of any material default under any Management Agreement or Franchise Agreement of which it is aware; (d) promptly deliver to the Administrative Agent a copy of each PIP, inspection report and any other written notice or report received by it under any Management Agreement or Franchise Agreement; (e) maintain Inventory at the applicable Collateral Property in amounts required to operate such Collateral Property as operated at the time it first became a Collateral Property and sufficient to meet the standards from time to time required by the applicable Manager and Franchisor; (f) maintain all material Licenses for the applicable Collateral Property in full force and effect and promptly comply with all conditions thereof; and (g) reasonably cooperate in obtaining from each Franchisor under a Franchise Agreement for each proposed Collateral Property (whether before or after such Property becomes a Collateral Property) a “comfort letter” from such Franchisor with respect to such Franchise Agreement, including if required by such Franchisor the execution by the applicable Operating Lessee and Subsidiary Guarantor of such comfort letter; provided, however, that Borrower or such Subsidiary Guarantor or Operating Lessee, as the case may be, shall not be required to (i) make any amendments or other modifications to any Franchise Agreement once entered into; (ii) pay any fees to any Franchisor in connection with the foregoing (except for standard, commercially reasonable issuance fees) or (iii) make any other concessions in connection with the foregoing (except for standard requirements in such Franchisor’s comfort letters).