Common use of System Standards Clause in Contracts

System Standards. MANUALS 6.1 SYSTEM STANDARDS AND DEVELOPMENT OF TERRITORY SYSTEM STANDARDS -------------------------------------------------------------- MANUAL. (a) Master Licensee covenants that it shall comply with all System ------ Standards applicable to master licensees of Company and all Territory System Standards. Within fifteen (15) days after execution of this Agreement, Company shall furnish to Master Licensee a copy of the Travelodge U.S. System Standards manuals and other materials which are typically furnished to U.S. Travelodge System franchisees to familiarize such franchisees with the Travelodge System. Company may designate mandatory life safety, technology and other design features in System Standards even if not commonly found in lodging facilities in the Territory having the same rating. Master Licensee shall submit for review and approval by Company, at least ninety (90) days prior to the execution of the first Franchise Agreement for a Unit, and within one hundred and eighty (180) days after the Agreement Date proposed Territory System Standards. Master Licensee shall also submit simultaneously therewith for Company's review and approval a written quality assurance inspection and enforcement program. Company will notify Master Licensee in writing of Company's acceptance or rejection of such proposed Territory System Standards and programs, specifying the reasons for any rejections. Master Licensee shall make such changes specified by Company and resubmit the Territory System Standards and programs until approved by Company. (b) The Travelodge System, modified as hereinabove provided, shall be reflected in a development and operations manual (which may consist of one or more volumes) for the Territory containing Territory System Standards for the development and operation of Units (the "Territory System Standards Manual"). To the extent that Company modifies or enhances the System Standards as it deems appropriate from time to time, Master Licensee will modify the Territory System Standards and the Territory System Standards Manual to conform to such modifications and enhancements. Company from time to time may establish minimum standards for Units based on the System Standards and such other standards as Company deems appropriate for the commercial success of Units. These minimum standards may be enhanced by Master Licensee and Master Licensee shall develop and specify its own standards, provided that such standards shall be subject to Company's review and approval. (c) If Company specifies or identifies the use or acquisition of any particular brand, vendor, supplier or manufacturer of any good or service item as a necessary element of compliance with any System Standard, Master Licensee may, at its option, select an alternate brand, vendor, supplier or manufacturer for the affected item so long as the alternative item is at least the functional and qualitative equivalent of the item.

System Standards. MANUALS 6.1 SYSTEM STANDARDS AND DEVELOPMENT OF TERRITORY SYSTEM STANDARDS -------------------------------------------------------------- MANUAL.. --------------------------------------------------------------------- (a) Master Licensee covenants that it shall comply with all System ------ Standards applicable to master licensees of Company and all Territory System Standards. Within fifteen (15) days after execution of this Agreement, Company shall furnish to Master Licensee a copy of the Travelodge U.S. System Standards manuals and other materials which are typically furnished to U.S. Travelodge System franchisees to familiarize such franchisees with the Travelodge System. Company may designate mandatory life safety, technology and other design features in System Standards even if not commonly found in lodging facilities in the Territory having the same rating. Master Licensee shall submit for review and approval by Company, at least ninety (90) days prior to the execution of the first Franchise Agreement for a Unit, and within one hundred and eighty (180) days after the Agreement Date proposed Territory System Standards. Master Licensee shall also submit simultaneously therewith for Company's review and approval a written quality assurance inspection and enforcement program. Company will notify Master Licensee in writing of Company's acceptance or rejection of such proposed Territory System Standards and programs, specifying the reasons for any rejections. Master Licensee shall make such changes specified by Company and resubmit the Territory System Standards and programs until approved by Company. (b) The Travelodge System, modified as hereinabove provided, shall be reflected in a development and operations manual (which may consist of one or more volumes) for the Territory containing Territory System Standards for the development and operation of Units (the "Territory System Standards Manual"). To the extent that Company modifies or enhances the System Standards as it deems appropriate from time to time, Master Licensee will modify the Territory System Standards and the Territory System Standards Manual to conform to such modifications and enhancements. Company from time to time may establish minimum standards for Units based on the System Standards and such other standards as Company deems appropriate for the commercial success of Units. These minimum standards may be enhanced by Master Licensee and Master Licensee shall develop and specify its own standards, provided that such standards shall be subject to Company's review and approval. (c) If Company specifies or identifies the use or acquisition of any particular brand, vendor, supplier or manufacturer of any good or service item as a necessary element of compliance with any System Standard, Master Licensee may, at its option, select an alternate brand, vendor, supplier or manufacturer for the affected item so long as the alternative item is at least the functional and qualitative equivalent of the item.