Common use of Manager’s Employees Clause in Contracts

Manager’s Employees. Initially, all Hotel Employees will be employees of Owner, but, subject to the third and fourth sentences of this Section and the provisions of Section 4.5(a), Manager shall be responsible for and shall have the sole and exclusive right to hire, promote, discharge, supervise, train and determine the terms of employment of the Hotel Employees. Effective January 1, 2002, Manager will employ substantially all of the Hotel Employees (in any event a sufficient number thereof to avoid the notification requirements of the W.A.R.N. Act) and will provide such employed Hotel Employees credit for length of service with respect to benefits and vacation. Manager shall obtain the approval of Owner before hiring the general manager, controller and director of sales and marketing of the Hotel. Owner’s approval for the hiring of such employees shall be obtained as follows: Manager shall submit to Owner the resume of its candidate for each such position, and Owner shall have the right to approve or reject such candidate. If Owner fails to approve or reject any such candidate within five (5) business days after receipt of the applicable resume or resumes, the applicable candidate shall be deemed approved by Owner. Notwithstanding the provisions of Section 5.1, 5.4 and this Section 5.2 or any other provision of this Agreement, all costs, expenses and liabilities relating to Hotel Employees shall be expenses of operating the Hotel and the responsibility of Manager for acts or omissions of Hotel Employees shall not extend beyond responsibility for the gross negligence or willful misconduct of the members of the Executive Committee. Manager acknowledges, however, that the members of the Executive Committee have the duties specified in the first sentence of Section 5.1 with respect to other Hotel Employees.