Repairs and Equipment Reserve Clause Samples
Repairs and Equipment Reserve. A. Management Company shall establish, in respect of each Fiscal Year from and after the Management Commencement Date, a reserve escrow account in the name of TRS (“Reserve”) in a bank approved by TRS. All disbursements and withdrawals from the Reserve shall be made by representatives of Management Company whose signatures have been authorized. The Reserve shall be in an amount equal to the greater of: (i) four percent (4%) of Gross Revenues; or (ii) the amount required under the Franchise Agreement for the Hotel or by any Qualified Lender. The Reserve shall be held in a bank, savings and loan association, or other financial institution designated by TRS to cover cost of:
(i) Replacements and renewals to the Hotel's FF&E; and
(ii) Certain non-routine repairs and maintenance to the Hotel building which are normally capitalized under generally accepted accounting principles, such as exterior and interior repainting, resurfacing building walls, floors, roofs and parking areas, and replacing folding walls and the like, but which are not major repairs, alterations, improvements, renewals, or replacements to the Hotel building's structure or to its mechanical, electrical, heating, ventilating, air conditioning, plumbing, or vertical transportation systems, the cost of which are TRS's sole responsibility under Section 8.03.
B. All amounts from time to time in the Reserve, and all interest thereon, shall at all times be owned by, and be the exclusive property of, TRS, and Management Company shall make no claim thereto. Proceeds from the sale of FF&E no longer necessary for the operation of the Hotel shall be deposited in the Reserve, as shall any interest which accrues on amounts placed in the Reserve. Neither (i) proceeds from the disposition of FF&E, nor (ii) interest which accrues on amounts held in the Reserve shall (x) result in any reduction in the required contributions to the Reserve set forth in 8.02 A above, or (y) be included in Gross Revenues. Management Company shall provide to TRS each month a copy of the bank statement relating to the Reserve and a reconciliation of such Reserve account.
C. Management Company shall prepare an estimate (“FF&E Estimate”) of the expenditures necessary during the ensuing Fiscal Year for (i) replacement and renewal of the Hotel FF&E and (ii) building repairs of the nature contemplated by Section 8.02 A 2, and shall submit such FF&E Estimate to TRS for TRS's review and approval at the same time it submits the Preliminary ...
Repairs and Equipment Reserve. 17 8.03 Building Alterations, Improvements, Renewals and Replacements....18 8.04 Liens............................................................17 8.05
Repairs and Equipment Reserve. 7.03 Building Alterations, Improvements, Renewals and Replacements ......
Repairs and Equipment Reserve. A. Manager shall establish, on a consolidated basis (or on such other basis as may be reasonably required by lenders providing financing to Lessee or Owner with respect to the Inns), an escrow reserve account ("Repairs and Equipment Reserve" or the "Reserve"), in a bank or similar institution reasonably acceptable to both Manager and Lessee, to cover the cost of:
1. Replacements and renewals related solely to the FF&E of the Inns; and
2. Certain routine repairs and maintenance to each Inn's building which are normally capitalized under generally accepted accounting principles, such as exterior and interior repainting; resurfacing building walls, floors, roofs and parking areas; buying or leasing replacement vehicles; and replacing folding walls and the like, but which are not major repairs, alterations, improvements, renewals or replacements to such building's structure or to its mechanical, electrical, heating, ventilating, air conditioning, plumbing or vertical transportation systems, the cost of which are to be paid by Lessee under Section 7.03, rather than from the Reserve.
B. Each Fiscal Year, subject to the provisions of subsection E, below, Manager shall transfer into the Reserve an amount equal to five percent (5%) of Gross Revenues. Transfers into the Reserve shall be made at the time of each interim accounting described in Section
Repairs and Equipment Reserve. A. Management Company shall establish, in respect of each Fiscal Year from and after the Management Commencement Date, a reserve escrow account in the name of Owner ("Reserve") in a bank approved by Owner. All disbursements and withdrawals from the Reserve shall be made by representatives of Management Company whose signatures have been authorized. The Reserve shall be in an amount equal to the greater of: (i) four percent (4%) of Gross Revenues; or (ii) the amount required under the Franchise Agreement for the Hotel or by any Qualified Lender. [Note: some hotels may qualify for a ramp in FF&E reserves, depending for example on the extent of capital expenditures following the transaction.] The Reserve shall be held in a bank, savings and loan association, or other financial institution designated by Owner to cover cost of:
1. Replacements and renewals to the Hotel's FF&E; and
2. Certain non-routine repairs and maintenance to the Hotel building which are normally capitalized under generally accepted accounting principles, such as exterior and interior repainting, resurfacing building walls, floors, roofs and parking areas, and replacing folding walls and the like, but which are not major repairs, alterations, improvements, renewals, or replacements to the Hotel building's structure or to its mechanical, electrical, heating, ventilating, air conditioning, plumbing, or vertical transportation systems, the cost of which are Owner's sole responsibility under Section 8.03.
B. All amounts from time to time in the Reserve, and all interest thereon, shall at all times be owned by, and be the exclusive property of, Owner, and Management Company shall make no claim thereto. Proceeds from the sale of FF&E no longer necessary for the operation of the Hotel shall be deposited in the Reserve, as shall any interest which accrues on amounts placed in the Reserve. Neither (i) proceeds from the disposition of FF&E, nor (ii) interest which accrues on amounts held in the Reserve shall (x) result in any reduction in the required contributions to the Reserve set forth in 8.02 A above, or (y) be included in Gross Revenues. Management Company shall provide to Owner each month a copy of the bank statement relating to the Reserve and a reconciliation of such Reserve account.
C. Management Company shall prepare an estimate ("FF&E Estimate") of the expenditures necessary during the ensuing Fiscal Year for (i) replacement and renewal of the Hotel FF&E and (ii) building repairs of the n...
Repairs and Equipment Reserve. A. Tenant shall, on behalf of Landlord and in Landlord's name but with Tenant having the sole authority to make withdrawals or transact other business with respect thereto, establish and maintain, on a consolidated basis, an escrow reserve account (the "Repair and Equipment Reserve" or the "Reserve") in a bank designated by Landlord. The Reserve shall be used to cover the cost of FF&E Replacements consisting of:
1. Replacements and renewals related solely to the FF&E of a Hotel (including communication systems and computer systems);
2. Certain routine repairs and maintenance to the building structures of a Hotel, the cost of which is normally capitalized under generally accepted accounting principles, such as exterior and interior repainting, resurfacing building walls, floors, roofs, and parking areas, and replacing folding walls and the like, but which are not alterations, improvements, renewals, or replacements to the structure of the building or to its mechanical, electrical, heating, ventilating, air conditioning, plumbing, or vertical transportation systems, the cost of which are Landlord's sole responsibility under Section 8.03; and
3. Lease payments for any FF&E and motor vehicles that are leased instead of purchased and not treated as Deductions pursuant to Item 16 of the definition of Deductions.
B. As of the Effective Date, Landlord and Tenant shall make the Initial Reserve Deposit into the Reserve. Except as provided below and subject to the provisions of Section 8.02.E, for each Fiscal Year during the term of this Agreement, Tenant shall transfer into the Reserve an amount equal to five percent (5%) of Gross Revenues attributable to each such Hotel for such period of time. Commencing with Fiscal Year 1997, Tenant shall have the right, but not the obligation, to increase the amount it transfers into the Reserve to any amount to greater than five percent (5%) but not exceeding six percent (6%) of Gross Revenues for such Fiscal Year and each successive Fiscal Year if, based upon a review of capital requirements for the Hotels, such increase is mutually agreed upon by Landlord and Tenant; provided, however, that Landlord's agreement to increase the amount to be transferred into the Reserve to up to six percent (6%) of Gross Revenues shall not be required if Operating Profit for each of Fiscal Years 1994 through 1996 equals or exceeds the amounts shown as Operating Profit on Exhibit I. For purposes of the preceding sentence, Operating Profit shall ...
Repairs and Equipment Reserve. A. Manager shall establish and maintain, on a consolidated basis, an escrow reserve account ("Repairs and Equipment Reserve" or the "Reserve") in a bank designated by Owner and reasonably satisfactory to Manager (or in a liquid investment account such as a money market account, as determined by Manager in its reasonable judgment after consulting with Owner) to cover the cost of FF&E Replacements consisting of:
1. Replacements and renewals to the FF&E of a Hotel (including communication systems and computer systems), and
2. Certain routine repairs and maintenance to the building structures of a Hotel the cost of which is normally capitalized under generally accepted accounting principles such as exterior and interior repainting, resurfacing building walls, floors, roofs and parking areas, and replacing folding walls and the like, but which are not alterations, improvements, renewals or replacements to the structure of the building or to its mechanical, electrical, heating, 47 ventilating, air conditioning, plumbing or vertical transportation systems, the cost of which are Owner's sole responsibility under Section 8.03.