Replacement of FF&E. From time to time, City and County will jointly determine if City-owned furnishings, fixtures and equipment need repair or replacement, or, if applicable, a schedule for replacing City-owned furnishings, fixtures and equipment. The City shall carry out, and bear the cost of, such repair or replacement as soon as is practically and fiscally possible.
Replacement of FF&E. On or before one hundred twenty (120) ------------------- days after the end of each Fiscal Year that ends during the Term (for purposes of this Section 10.2, the "Subject Fiscal Year"), Tenant shall deposit, into a reserve account to be maintained as a separate interest bearing account with a bank or banks reasonably acceptable to Landlord (the "FF&E Reserve Account"), an amount equal to (A) the positive result, if any, of (I) three percent (3%) of the Operating Revenues for the subject Fiscal Year minus (II) the amount actually expended by Tenant during the Subject Fiscal Year to repair and/or replace FF&E, Fixtures, Fixed Asset Supplies and/or Operating Equipment at any one or more of the Hotels (individually or collectively, the "Renovations"), minus (B) with respect to each Fiscal Year prior to the Subject Fiscal Year, if any, the aggregate amount, if any, by which Tenant's expenditures for Renovations in each such prior Fiscal Year exceeded three percent (3%) of the Operating Revenues for that Fiscal Year, less the portion of such amount which has previously been taken into account in determining the amount to be deposited into the FF&E Reserve Account in and with respect to Fiscal Years prior to the Subject Fiscal Year, if any. Tenant shall be entitled to withdraw funds from such FF&E Reserve Account without Landlord's prior written approval; provided that Tenant shall deliver to Landlord an annual auditor's statement, with reasonable supporting detail, within one hundred twenty (120) days of the end of each Fiscal Year, of all amounts expended for Renovations during such Fiscal Year, including all amounts withdrawn from the FF&E Reserve Account.
