Common use of Operator Defaults Clause in Contracts

Operator Defaults. Each of the following shall constitute an Event of Default by Operator: (a) The failure of Operator to pay any sum of money to Owner provided for herein when the same is payable or perform any of its obligations under Section 4.5, Section 4.8, or Articles 7,9, 10 (except Section 10.2), 12 or 13, if such failure is not cured within ten (10) days after written notice specifying such failure is given by Owner to Operator; (b) Operator shall fail to keep, observe or perform any other material covenant, agreement, term or provision of this Agreement to be kept, observed or performed by Operator (with the exception of any such failure constituting an Event of Default under any other subsection of this Section 18.1), and such failure shall continue for a period of thirty (30) days after notice thereof by Owner to the Operator, provided that if such failure is incapable of cure within such thirty (30) day period and if Operator shall promptly, diligently and continuously pursue the cure thereof, then Operator shall have a period of sixty (60) days after notice thereof by Owner to Operator within which to effectuate the cure. If at the end of such sixty (60) day period the cure has not been effectuated notwithstanding Operator’s diligent and continuous attempts to cure, then at the request of Operator made at least ten (10) days before expiration of the 60 day cure period, Owner shall extend the cure for up to an additional thirty (30) days, if in Owner’s reasonable opinion, the default is capable of cure within such additional period as Owner may permit and the extension will not have a materially negative effect on the financial performance of the Hotel; (c) An assignment by Operator in violation of the provisions of Article 21 hereof; (d) If Operator shall fail to maintain and operate the Hotel in accordance with the standards required under Section 2.1 and such failure shall not be due to a refusal on the part of Owner to approve the AFP submitted by Operator under Section 4.5, or Owner’s failure to provide funds requested pursuant to Section 9.1 and shall continue for a period of thirty (30) days after written notice by Owner to Operator specifying the matters or conditions which constitute the basis for such Event of Default, provided that if such failure is incapable of cure within such thirty (30) day period and if Operator shall promptly, diligently and continuously pursue the cure thereof, then Operator shall have a period of sixty (60) days after notice thereof by Owner to Operator within which to effectuate the cure. If at the end of such sixty (60) day period the cure has not been effectuated notwithstanding Operator’s diligent and continuous attempts to cure, then at the request of Operator made at least ten (10) days before expiration of the 60 day cure period, Owner shall extend the cure for up to an additional thirty (30) days, if in Owner’s reasonable opinion, the default is capable of cure within such additional period as Owner may permit and the extension will not have a materially negative effect on the financial performance of the Hotel; (e) If Operator shall apply for or consent to the appointment of a receiver, trustee or liquidator of Operator or of all of a substantial part of its assets, admit in writing its inability to pay its debts as they come due, make a general assignment for the benefit of creditors, take advantage of any insolvency law, or file an answer admitting the material allegations of a petition filed against Operator in any bankruptcy, reorganization or insolvency proceeding, or if an order, judgment or decree shall be entered by any court of competition jurisdiction, on the application of a creditor, adjudicating Operator bankrupt or insolvent or approving a petition seeking reorganization of Operator or appointing a receiver, trustee or liquidator of Operator or all or a substantial part of its assets, and such order, judgment or decree shall continue unstayed and in effect for any period of one hundred twenty (120) consecutive days; (f) The filing of a voluntary petition in bankruptcy or insolvency or a petition for liquidation or reorganization under any bankruptcy law by Operator, or Operator shall consent to, acquiesce in, or fail timely to controvert, an involuntary petition in bankruptcy, insolvency or an involuntary petition for liquidation or reorganization filed against it; (g) The filing against Operator of a petition seeking adjudication of Operator as insolvent or seeking liquidation or reorganization or appointment of a receiver, trustee or liquidator of all or a substantial part of Operator’s assets, if such petition is not dismissed within ninety (90) days; (h) The failure of Operator to deliver to Owner on or before three (3) business days after the date when due any financial report or statement required to be delivered to Owner under Section 10.2, provided that only with respect to the first two (2) such failures in a Fiscal Year, Operator has not cured the failure within three (3) business days after Owner has delivered notice of the failure to Operator; (i) The failure of Operator to perform on or before three (3) business daysafter delivery of notice from Owner any of Operator’s obligations under Article 17; (j) The failure of Operator to execute and deliver any instrument requested by Owner to effectuate or evidence the subordination of Operator’s rights hereunder to anyMortgage in accordance with Section 30.1 or estoppel certificate under Section 31.7 within the time period provided in the applicable section; (k) Any willful misconduct, criminal misconduct, fraud or misappropriationof funds by Operator; or (l) Any other matter stated elsewhere in this Agreement to be an Event ofDefault by Operator.

Operator Defaults. Each of the following shall constitute an Event of Default by Operator: (a) The failure of Operator to pay any sum of money to Owner provided for herein when the same is payable or perform any of its obligations under Section 4.5, Section 4.8, or Articles 7,9, 10 (except Section 10.2), 12 or 13payable, if such failure is not cured within ten (10) days after written notice specifying such failure is given by Owner to Operator;. If any sum of money is not paid within ten (10) days following the date same becomes due and payable under this Agreement, such sum shall bear interest from the date due until actually paid at a rate equal to the lesser of twelve percent (12%) per annum or the highest annual interest rate permitted by law, provided that any interest so payable shall not constitute Gross Operating Expense under this Agreement. (b) An assignment by Operator in violation of the provisions of Article 21 hereof. (c) If Operator shall fail to keep, observe or perform any other material covenant, agreement, term or provision of this Agreement to be kept, observed or performed by Operator, or if Operator (with the exception because of any such failure constituting an Event grossly negligent or intentional act or omission on the part of Default under any other subsection of this Section 18.1)Operator, and without the fault of Owner, shall fail to maintain the Permits, and either such failure shall continue for a period of thirty (30) days after written notice thereof by from Owner to the Operator, ; provided that if such failure is incapable of cure within such thirty (30) day period and if Operator shall promptly, diligently and continuously pursue the cure thereof, then Operator shall have a period of sixty ninety (6090) days after notice thereof by Owner to Operator within which to effectuate the cure. . (d) If at because of any gross negligence or intentional misconduct of Operator, and without the end fault of such sixty Owner, (60i) day period the cure has not been effectuated notwithstanding Operator’s diligent and continuous attempts Franchise Agreement, any required license for the sale of alcoholic beverages or any other material license critical to cure, then at the request of Operator made at least ten (10) days before expiration operation of the 60 day cure periodHotel is at any time suspended, Owner tem1inated or revoked, and such suspension, termination or revocation shall extend the cure continue unstayed and in effect for up to an additional a period of more than thirty (30) daysconsecutive days after written notice from Owner to Operator, or (ii) if the right to serve alcoholic beverages in Owner’s reasonable opinionthe Hotel shall otherwise be suspended for a period more than thirty (30) consecutive days after written notice from Owner to Operator; in the event of any such suspension, termination or revocation, Operator shall immediately proceed to use Operator's best efforts to cause the default is capable prompt reinstatement of cure within such additional period as Owner may permit and the extension will not have a materially negative effect on the financial performance of the Hotel;Agreement, license or right. (c) An assignment by Operator in violation of the provisions of Article 21 hereof; (de) If Operator shall fail to maintain and operate the Hotel materially in accordance with the standards required under requirements of Section 2.1 4.1 and such failure shall not be due to a refusal on the part of Owner to approve the AFP submitted by Operator under Section 4.5, or Owner’s failure to provide funds requested pursuant to Section 9.1 and shall continue for a period of thirty (30) days after written notice by Owner to Operator specifying the matters or conditions which constitute the basis for such Event of Default, provided that if such failure is incapable of cure within such thirty (30) day period and if Operator shall promptly, diligently and continuously pursue the cure thereof, then Operator shall have a period of sixty ninety (6090) days after notice thereof by Owner to Operator within which to effectuate the cure. If at the end of such sixty (60) day period the cure has not been effectuated notwithstanding Operator’s diligent and continuous attempts to cure, then at the request of Operator made at least ten (10) days before expiration of the 60 day cure period, Owner shall extend the cure for up to an additional thirty (30) days, if in Owner’s reasonable opinion, the default is capable of cure within such additional period as Owner may permit and the extension will not have a materially negative effect on the financial performance of the Hotel;. (ef) If Operator shall apply for or consent to the appointment of a receiver, trustee or liquidator of Operator or of all of a substantial part of its assets, assets admit in writing its inability to pay its debts as they come due, make a general assignment for the benefit of creditors, take advantage of any insolvency law, or file an answer admitting the material allegations of a petition filed against Operator in any bankruptcy, reorganization or insolvency proceeding, . or if an order, judgment or decree shall be entered by any court of competition jurisdiction, on the application of a creditor, adjudicating Operator bankrupt or insolvent or approving a petition seeking reorganization of Operator or appointing a receiver, trustee or liquidator of Operator or all or a substantial part of its assets, and such order, judgment or decree shall continue unstayed and in effect for any period of one hundred twenty ninety (12090) consecutive days;. (fg) The filing of a voluntary petition in bankruptcy or insolvency or a petition for liquidation or reorganization under any bankruptcy law by Operator, or Operator shall consent to, acquiesce in, or fail timely to controvert, an involuntary petition in bankruptcy, insolvency or an involuntary petition for liquidation or reorganization filed against it;. (gh) The filing against Operator by a party other than Owner of a petition seeking adjudication of Operator as insolvent or seeking liquidation or reorganization or appointment of a receiver, trustee or liquidator of all or a substantial part of Operator’s 's assets, if such petition is not dismissed within ninety (90) days; (h) The failure of Operator to deliver to Owner on or before three (3) business days after the date when due any financial report or statement required to be delivered to Owner under Section 10.2, provided that only with respect to the first two (2) such failures in a Fiscal Year, Operator has not cured the failure within three (3) business days after Owner has delivered notice of the failure to Operator;. (i) The failure Failure of Operator (but excluding such a failure which results from the default by Owner in paying amounts payable hereunder by Owner) to perform on or before three (3) business daysafter delivery maintain at all times throughout the term hereof all of notice from Owner any of Operator’s obligations the insurance required to be maintained by Operator under Article 17; 12, if such failure is not cured within thirty (j30) The days after written notice specifying such failure of Operator to execute and deliver any instrument requested is given by Owner to effectuate or evidence the subordination of Operator’s rights hereunder to anyMortgage in accordance with Section 30.1 or estoppel certificate under Section 31.7 within the time period provided in the applicable section; (k) Any willful misconduct, criminal misconduct, fraud or misappropriationof funds by Operator; or (l) Any other matter stated elsewhere in this Agreement to be an Event ofDefault by Operator.