Common use of PIP Clause in Contracts

PIP. Prior to the Effective Date, Seller notified the Franchisor of the potential sale of the Hotel and requested Franchisor to perform a property improvement plan in respect of the Hotel (the “PIP”). The Franchisor produced the PIP, including a timeline and budget for implementation of the PIP (the “PIP Budget”). The costs of completing the PIP shall be borne by Buyer up to $1,082,490.00 (the “PIP Threshold”), and any PIP costs in excess of the PIP Threshold, whether incurred before or after Closing shall be paid by Seller. To the extent Seller expends sums toward completion of the PIP implementation prior to Closing, Seller shall receive a credit therefor at Closing provided such sums are strictly in accordance with the PIP Budget. To provide for the timely payment of any shortfall between the PIP Threshold and the actual cost of the PIP implementation, at Closing, Seller shall deposit an amount equal to ten percent (10%) of the PIP Threshold (the “PIP Holdback”) which shall be withheld from the Purchase Price payable to Seller and shall be deposited for a period equal to the earlier to occur of two (2) years or completion of the PIP in an escrow account with the Title Company pursuant to an escrow agreement in the form attached hereto as Exhibit J (the “PIP Agreement”), which escrow and PIP Agreement shall be established and entered into at Closing by Seller and Buyer. Neither Seller nor Buyer shall commit the Franchisor to materially alter the PIP in a manner that would increase the PIP Budget, without the prior written consent of the other party hereto.

PIP. Prior to the Effective Date, Seller notified the Franchisor of the potential sale of the Hotel and requested Franchisor to perform a property improvement plan in respect of the Hotel (the “PIP”). The Franchisor produced the PIP, including a timeline and budget for implementation of the PIP (the “PIP Budget”). The costs of completing the PIP shall be borne by Buyer up to $1,082,490.00 121,012.00 (the “PIP Threshold”), and any PIP costs in excess of the PIP Threshold, whether incurred before or after Closing shall be paid by Seller. To the extent Seller expends sums toward completion of the PIP implementation prior to Closing, Seller shall receive a credit therefor at Closing provided such sums are strictly in accordance with the PIP Budget. To provide for the timely payment of any shortfall between the PIP Threshold and the actual cost of the PIP implementation, at Closing, Seller shall deposit an amount equal to ten percent (10%) of the PIP Threshold (the “PIP Holdback”) which shall be withheld from the Purchase Price payable to Seller and shall be deposited for a period equal to the earlier to occur of two (2) years or completion of the PIP in an escrow account with the Title Company pursuant to an escrow agreement in the form attached hereto as Exhibit J (the “PIP Agreement”), which escrow and PIP Agreement shall be established and entered into at Closing by Seller and Buyer. Neither Seller nor Buyer shall commit permit the Franchisor to materially alter the PIP in a manner that would increase the PIP Budget, without the prior written consent of the other party hereto.

PIP. Prior to the Effective Date, Seller notified the Franchisor of the potential sale of the Hotel and requested Franchisor to perform a property improvement plan in respect of the Hotel (the “PIP”). The Franchisor produced the PIP, including a timeline and budget for implementation of the PIP (the “PIP Budget”). The costs of completing the PIP shall be borne by Buyer up to $1,082,490.00 1,081,736.00 (the “PIP Threshold”), and any PIP costs in excess of the PIP Threshold, whether incurred before or after Closing shall be paid by Seller. To the extent Seller expends sums toward completion of the PIP implementation prior to Closing, Seller shall receive a credit therefor at Closing provided such sums are strictly in accordance with the PIP Budget. To provide for the timely payment of any shortfall between the PIP Threshold and the actual cost of the PIP implementation, at Closing, Seller shall deposit an amount equal to ten percent (10%) of the PIP Threshold (the “PIP Holdback”) which shall be withheld from the Purchase Price payable to Seller and shall be deposited for a period equal to the earlier to occur of two (2) years or completion of the PIP in an escrow account with the Title Company pursuant to an escrow agreement in the form attached hereto as Exhibit J (the “PIP Agreement”), which escrow and PIP Agreement shall be established and entered into at Closing by Seller and Buyer. Neither Seller nor Buyer shall commit the Franchisor to materially alter the PIP in a manner that would increase the PIP Budget, without the prior written consent of the other party hereto.

PIP. Prior to the Effective Date, Seller notified the Franchisor of the potential sale of the Hotel and requested Franchisor to perform a property improvement plan in respect of the Hotel (the “PIP”). The Franchisor produced the PIP, including a timeline and budget for implementation of the PIP (the “PIP Budget”). The costs of completing the PIP shall be borne by Buyer up to $1,082,490.00 1,224,381.00 (the “PIP Threshold”), and any PIP costs in excess of the PIP Threshold, whether incurred before or after Closing shall be paid by Seller. To the extent Seller expends sums toward completion of the PIP implementation prior to Closing, Seller shall receive a credit therefor at Closing provided such sums are strictly in accordance with the PIP Budget. To provide for the timely payment of any shortfall between the PIP Threshold and the actual cost of the PIP implementation, at Closing, Seller shall deposit an amount equal to ten percent (10%) of the PIP Threshold (the “PIP Holdback”) which shall be withheld from the Purchase Price payable to Seller and shall be deposited for a period equal to the earlier to occur of two (2) years or completion of the PIP in an escrow account with the Title Company pursuant to an escrow agreement in the form attached hereto as Exhibit J (the “PIP Agreement”), which escrow and PIP Agreement shall be established and entered into at Closing by Seller and Buyer. Neither Seller nor Buyer shall commit the Franchisor to materially alter the PIP in a manner that would increase the PIP Budget, without the prior written consent of the other party hereto.

PIP. Prior to the Effective Date, Seller notified the Franchisor of the potential sale of the Hotel and requested Franchisor to perform a property improvement plan in respect of the Hotel (the “PIP”). The Franchisor produced the PIP, including a timeline and budget for implementation of the PIP (the “PIP Budget”). The costs of completing the PIP shall be borne by Buyer up to $1,082,490.00 1,489,963.00 (the “PIP Threshold”), and any PIP costs in excess of the PIP Threshold, whether incurred before or after Closing shall be paid by Seller. To the extent Seller expends sums toward completion of the PIP implementation prior to Closing, Seller shall receive a credit therefor at Closing provided such sums are strictly in accordance with the PIP Budget. To provide for the timely payment of any shortfall between the PIP Threshold and the actual cost of the PIP implementation, at Closing, Seller shall deposit an amount equal to ten percent (10%) of the PIP Threshold (the “PIP Holdback”) which shall be withheld from the Purchase Price payable to Seller and shall be deposited for a period equal to the earlier to occur of two (2) years or completion of the PIP in an escrow account with the Title Company pursuant to an escrow agreement in the form attached hereto as Exhibit J (the “PIP Agreement”), which escrow and PIP Agreement shall be established and entered into at Closing by Seller and Buyer. Neither Seller nor Buyer shall commit the Franchisor to materially alter the PIP in a manner that would increase the PIP Budget, without the prior written consent of the other party hereto.

PIP. Prior to the Effective Date, Seller notified the Franchisor of the potential sale of the Hotel and requested Franchisor to perform a property improvement plan in respect of the Hotel (the “PIP”). The Franchisor produced the PIP, including a timeline and budget for implementation of the PIP (the “PIP Budget”). The costs of completing the PIP shall be borne by Buyer up to $1,082,490.00 1,971,928.00 (the “PIP Threshold”), and any PIP costs in excess of the PIP Threshold, whether incurred before or after Closing shall be paid by Seller. To the extent Seller expends sums toward completion of the PIP implementation prior to Closing, Seller shall receive a credit therefor at Closing provided such sums are strictly in accordance with the PIP Budget. To provide for the timely payment of any shortfall between the PIP Threshold and the actual cost of the PIP implementation, at Closing, Seller shall deposit an amount equal to ten percent (10%) of the PIP Threshold (the “PIP Holdback”) which shall be withheld from the Purchase Price payable to Seller and shall be deposited for a period equal to the earlier to occur of two (2) years or completion of the PIP in an escrow account with the Title Company pursuant to an escrow agreement in the form attached hereto as Exhibit J (the “PIP Agreement”), which escrow and PIP Agreement shall be established and entered into at Closing by Seller and Buyer. Neither Seller nor Buyer shall commit the Franchisor to materially alter the PIP in a manner that would increase the PIP Budget, without the prior written consent of the other party hereto.

PIP. Prior to the Effective Date, Seller notified the Franchisor of the potential sale of the Hotel and requested Franchisor to perform a property improvement plan in respect of the Hotel (the “PIP”). The Franchisor produced the PIP, including a timeline and budget for implementation of the PIP (the “PIP Budget”). The costs of completing the PIP shall be borne by Buyer up to $1,082,490.00 22,008.00 (the “PIP Threshold”), and any PIP costs in excess of the PIP Threshold, whether incurred before or after Closing shall be paid by Seller. To the extent Seller expends sums toward completion of the PIP implementation prior to Closing, Seller shall receive a credit therefor at Closing provided such sums are strictly in accordance with the PIP Budget. To provide for the timely payment of any shortfall between the PIP Threshold and the actual cost of the PIP implementation, at Closing, Seller shall deposit an amount equal to ten percent (10%) of the PIP Threshold (the “PIP Holdback”) which shall be withheld from the Purchase Price payable to Seller and shall be deposited for a period equal to the earlier to occur of two (2) years or completion of the PIP in an escrow account with the Title Company pursuant to an escrow agreement in the form attached hereto as Exhibit J (the “PIP Agreement”), which escrow and PIP Agreement shall be established and entered into at Closing by Seller and Buyer. Neither Seller nor Buyer shall commit permit the Franchisor to materially alter the PIP in a manner that would increase the PIP Budget, without the prior written consent of the other party hereto.

PIP. Prior to the Effective Date, Seller notified the Franchisor of the potential sale of the Hotel and requested Franchisor to perform a property improvement plan in respect of the Hotel (the “PIP”). The Franchisor produced the PIP, including a timeline and budget for implementation of the PIP (the “PIP Budget”). The costs of completing the PIP shall be borne by Buyer up to $1,082,490.00 1,978,149.00 (the “PIP Threshold”), and any PIP costs in excess of the PIP Threshold, whether incurred before or after Closing shall be paid by Seller. To the extent Seller expends sums toward completion of the PIP implementation prior to Closing, Seller shall receive a credit therefor at Closing provided such sums are strictly in accordance with the PIP Budget. To provide for the timely payment of any shortfall between the PIP Threshold and the actual cost of the PIP implementation, at Closing, Seller shall deposit an amount equal to ten percent (10%) of the PIP Threshold (the “PIP Holdback”) which shall be withheld from the Purchase Price payable to Seller and shall be deposited for a period equal to the earlier to occur of two (2) years or completion of the PIP in an escrow account with the Title Company pursuant to an escrow agreement in the form attached hereto as Exhibit J (the “PIP Agreement”), which escrow and PIP Agreement shall be established and entered into at Closing by Seller and Buyer. Neither Seller nor Buyer shall commit the Franchisor to materially alter the PIP in a manner that would increase the PIP Budget, without the prior written consent of the other party hereto.