Purchases from Manager’s Affiliates and National Account Vendors Sample Clauses

Purchases from Manager’s Affiliates and National Account Vendors. Manager shall be permitted to utilize both Manager’s Affiliates and the national account vendors of Manager or Manager’s Affiliates in contracting for goods or services for the Hotel; provided, however, if Owner demonstrates to Manager that another vendor will provide the same goods or services at a cost below the cost of the goods or services obtained through Manager’s Affiliate or the national account vendor and on equal terms and quality, Owner may require Manager to purchase such goods or services from such other vendor following the expiration or termination of the then existing contract for such goods and services and any and all rebates, commissions or similar payments received by Manager in connection with such purchasing shall be allocated and paid, on a ratable basis, to the hotels (including the Hotel) that participate in such purchasing programs.

Purchases from Manager’s Affiliates and National Account Vendors. Manager shall be permitted to utilize both Manager’s Affiliates and the national account vendors of Manager or Manager’s Affiliates in contracting for goods or services for the Hotel; provided, however, subject to the last sentence of this Section 3.4, if Owner demonstrates to Manager that another vendor will provide the same goods or services at a cost below the cost of the goods or services obtained through Manager’s Affiliate or the national account vendor and on equal terms and quality, Owner may require Manager to purchase such goods or services from such other vendor following the expiration or termination of the then existing contract for such goods and services. And any and all rebates, commissions or similar payments received by Manager in connection with purchasing pursuant to this Section 3.4 shall be allocated and paid, on a ratable basis, to the hotels (including the Hotel) that participate in such purchasing programs. If Manager is authorized by Owner to furnish centralized purchasing programs for goods, supplies, equipment and services for the Hotel, including operating supplies, operating equipment, insurance and long distance telephone services, to the same extent furnished to Managed Hotels, Owner authorizes Manager to xxxx up its costs, and receive and retain remuneration and other benefits from vendors and service providers based on such purchases, provided that: (a) the total cost of goods and services (including any xxxx‑up, fees and other remuneration) is generally on terms no less favorable to Owner than that which would be available through unrelated third party vendors in an arms-length transaction; and (b) Manager shall, on an annual basis, (i) remit to the Operating Account the proportionate share of the pre‑tax profits earned by Manager and its Affiliates through such purchases by hotels participating in the purchasing programs, after deducting all operating expenses and capital costs attributable to providing such services and (ii) provide to Owner a summary describing the manner by which Manager calculated such amounts. For purposes of calculating Owner's proportionate share of such pre‑tax profits, Manager shall use the number of available rooms at the Hotel divided by the total number of available rooms in all hotels participating in such services, or any other manner that reasonably approximates the proportionate share of purchases made by the Hotel in relation to the total purchases made by all hotels participating in Man...