Common use of Chain Services Clause in Contracts

Chain Services. A. Tenant shall, beginning with the Effective Date and thereafter during the Term of this Agreement, cause Chain Services to be furnished to the Hotel. B. Costs and expenses incurred in the providing of Chain Services shall be allocated on a fair and equitable basis among all Courtyard by Marriott hotels owned, leased, operated or managed by Tenant or its Affiliates in the United States which benefit from these services. Such allocation shall be made without regard to any "caps" or other limitations on the amount which Tenant or its Affiliates may charge to a given hotel, pursuant to agreements which Tenant (or its Affiliates) may have with the owner of such hotel. Any excess of that portion of such costs and expenses which is fairly allocated to a given hotel over the "cap" which may be in effect with regard to that hotel shall be paid by Tenant from its own funds and shall not be a Deduction. Tenant shall make no profit from amounts paid for Chain Services. In no event will the total charge for all of the Chain Services which are described in the definition of Chain Services in Section 1.01 (exclusive of reservation system services), for any given Fiscal Year, exceed five percent (5%) of Gross Revenues for such Fiscal Year. The parties hereby stipulate that the limitation set forth in the preceding sentence is intended to apply only to the services which are currently listed (as of the Effective Date) in the definition of Chain Services in Section 1.01; accordingly, if there are types of expenditures which were originally treated as Deductions (other than pursuant to Paragraph 7 of the definition of "Deductions" in Section 1.01), but which are later determined to be more properly treated as Chain Services, such expenditures shall be treated as Deductions pursuant to said Paragraph 7 of the definition of "Deductions" without regard to the aforesaid limitation. If services currently provided as Chain Services are subsequently determined to be appropriately charged as Deductions, the cost of the services will continue to be considered as a Chain Service cost in determining the total charge allowed under the "cap" of five percent (5%) of Gross Revenues.

Chain Services. A. Tenant shall, beginning with the Effective Date and thereafter during the Term of this Agreement, Manager shall cause Chain Services to be furnished to the Hotel certain services (“Chain Services”) that are furnished on a comparable basis to full service hotels in the Marriott Hotel System. Chain Services shall include: (i) the general categories of services listed in Exhibit C attached hereto, and (ii) such additional central programs or services as may, from time to time, be furnished for the benefit of hotels in the Marriott Hotel System or in substitution for services now performed at individual hotels which Manager determines can be provided more efficiently and economically on a system basis; provided, however, that services shall only be added to “Chain Services” pursuant to clause (ii) above if, and to the extent that, such services: (a) are not Central Office Services; and (b) are either (x) new services (i.e., not previously performed at the Hotel) or (y) services that theretofore had been performed at the Hotel, but that can be performed more efficiently and economically for the Marriott Hotel System as a whole. In no event shall the charge to the Hotel in a Fiscal Year for the Chain Services described in clause (i) above (but excluding those related to Central Reservation Services) exceed an amount equal to percent ( %) of Gross Revenues for such Fiscal Year. B. Costs and expenses incurred in the providing of Chain Services shall be allocated on a fair and equitable consistent basis among all Courtyard by Marriott hotels owned, leased, operated or managed by Tenant or its Affiliates in the United States which benefit from these servicesMarriott Hotel System. Such The charges for Chain Services shall include, as applicable, an allocation shall be made without regard to any "caps" or other limitations on the amount which Tenant or its Affiliates may charge to a given hotelof salaries, pursuant to agreements which Tenant (or its Affiliates) may have with the owner of such hotel. Any excess of that portion of such wages, development costs and expenses which is fairly allocated overhead related to a given hotel over the "cap" which may be employees of Manager, Marriott or any Affiliate of Manager or Marriott involved in effect with regard to that hotel shall be paid by Tenant from its own funds and shall not be a Deduction. Tenant shall make no profit from amounts paid for providing any of the Chain Services. In no event will The costs associated with any Chain Services that are used by hotels in the total charge for all Marriott Hotel System and that are also provided to other hotel brands owned by Marriott shall be allocated to such other brands on a fair and consistent basis, taking into account the level of such Chain Services being provided to each of such other brands. C. Pursuant to the provisions of Section 4.07, Manager shall provide to Owner the Chain Services which are Report, as such document is described in the definition of Chain Services in Section 1.01 (exclusive of reservation system services), for any given Fiscal Year, exceed five percent (5%) of Gross Revenues for such Fiscal Year. The parties hereby stipulate that the limitation set forth in the preceding sentence is intended to apply only to the services which are currently listed (as of the Effective Date) in the definition of Chain Services in Section 1.01; accordingly, if there are types of expenditures which were originally treated as Deductions (other than pursuant to Paragraph 7 of the definition of "Deductions" in Section 1.01), but which are later determined to be more properly treated as Chain Services, such expenditures shall be treated as Deductions pursuant to said Paragraph 7 of the definition of "Deductions" without regard to the aforesaid limitation. If services currently provided as Chain Services are subsequently determined to be appropriately charged as Deductions, the cost of the services will continue to be considered as a Chain Service cost in determining the total charge allowed under the "cap" of five percent (5%) of Gross Revenues4.07.

Chain Services. A. Tenant shall, beginning with the Effective Date and thereafter during the Term of this Agreement, cause Chain Services to be furnished to the HotelHotels. B. Costs and expenses incurred in the providing of Chain Services shall be allocated on a fair and equitable basis among all Courtyard by Marriott hotels owned, leased, operated or managed by Tenant or its Affiliates in the United States which benefit from these services. Such allocation shall be made without regard to any "caps" or other limitations on the amount which Tenant or its Affiliates may charge to a given hotel, pursuant to agreements which Tenant (or its Affiliates) may have with the owner of such hotel. Any excess of that portion of such costs and expenses which is fairly allocated to a given hotel over the "cap" which may be in effect with regard to that hotel shall be paid by Tenant from its own funds and shall not be a Deduction. Tenant shall make no profit from amounts paid for Chain Services. In no event will the total charge for all of the Chain Services which are described in the definition of Chain Services in Section 1.01 (exclusive of reservation system services), for any given Fiscal Year, exceed five percent (5%) of Gross Revenues for such Fiscal Year. The parties hereby stipulate that the limitation set forth in the preceding sentence is intended to apply only to the services which are currently listed (as of the Effective Date) in the definition of Chain Services in Section 1.01; accordingly, if there are types of expenditures which were originally treated as Deductions (other than pursuant to Paragraph 7 of the definition of "Deductions" in Section 1.01), but which are later determined to be more properly treated as Chain Services, such expenditures shall be treated as Deductions pursuant to said Paragraph 7 of the definition of "Deductions" without regard to the aforesaid limitation. If services currently provided as Chain Services are subsequently determined to be appropriately charged as Deductions, the cost of the services will continue to be considered as a Chain Service cost in determining the total charge allowed under the "cap" of five percent (5%) of Gross Revenues.

Chain Services. A. Tenant Manager shall, beginning with the Effective Date and thereafter during the Term of this Agreement, cause Chain Services to be furnished to the each Hotel. B. Costs and expenses incurred in the providing of Chain Services shall be allocated on a fair and equitable basis among all Courtyard by Marriott hotels owned, leased, operated or managed by Tenant or its Affiliates Manager in the United States which benefit from these services. Such allocation shall be made without regard to any "caps" or other limitations on the amount which Tenant or its Affiliates Manager may charge to a given hotel, pursuant to agreements which Tenant (or its Affiliates) Manager may have with the owner of such hotel. Any excess of that portion of such costs and expenses which is fairly allocated to a given hotel over the "cap" which may be in effect with regard to that hotel shall be paid by Tenant Manager from its own funds and shall not be a Deduction. Tenant Manager shall make no profit from amounts paid for Chain Services. In no event will the total charge for all of the Chain Services which are described in the definition of Chain Services in Section 1.01 (exclusive of reservation system services), for any given Fiscal Year, exceed five percent (5%) of Gross Revenues for such Fiscal Year. The parties hereby stipulate that the limitation set forth in the preceding sentence is intended to apply only to the services which are currently listed (as of the Effective Date) in the definition of Chain Services in Section 1.01; accordingly, if there are types of expenditures which were originally treated as Deductions (other than pursuant to Paragraph 7 9 of the definition of "DeductionsOperating Profit" in Section 1.01), but which are later determined to be more properly treated as Chain Services, such expenditures shall be treated as Deductions pursuant to said Paragraph 7 9 of the definition of "Deductions" without regard to the aforesaid limitation. If services currently provided as Chain Services are subsequently determined to be appropriately charged as Deductions, the cost of the services will continue to be considered as a Chain Service cost in determining the total charge allowed under the "cap" of five percent (5%) of Gross Revenues.