New PIP definition
Examples of New PIP in a sentence
Except as otherwise provided in this Section 3.10, the RLJ REITs shall be responsible for completing any work currently required pursuant to existing PIPs, provided that if any such work is not completed by the Closing Date, the RLJ REITs shall give Parent a credit in the amount of the cost of completing the uncompleted existing PIP work, such cost to be determined in the same manner as set forth above with respect to calculating the Cost of New PIP Work.
For purposes of this Section, “Costs of New PIP Work” shall mean the costs of installing all of the improvements required by the New PIPs, as determined in good faith by mutual agreement of Parent and the Company Parties prior to the Closing Date, based upon such reasonable construction estimates as the parties may obtain from qualified contractors.
Parent shall be responsible for the first Ten Million Dollars ($10,000,000) in the aggregate of (i) Costs of New PIP Work required pursuant to the New PIPs and (ii) the costs of completing the existing requirements of the applicable Franchisor of the Atlanta Marriott Century Center (the “Costs of the Atlanta Work”) (together, the Costs of New PIP Work and the Costs of the Atlanta Work, are referred to as the “Costs of Post-closing PIP Work”).
The Costs of the Atlanta Work shall be determined in the same manner as the Costs of New PIP Work.
For purposes of this Section 3.10, “Costs of New PIP Work” shall mean the costs of installing all of the improvements required by the New PIPs regardless of the date when installation thereof is required.
Borrower shall not agree to any New PIP without Lender’s prior written consent thereto (which such consent may be conditioned upon, among other things, Lender’s engagement, at the sole cost and expense of Borrower, of third party consultant(s) to review and approve the New PIP).
To the extent Borrower has an approval right over the New PIP, Borrower shall not agree to any New PIP without Lender’s prior written consent thereto (which such consent may be conditioned upon, among other things, Lender’s engagement, at the sole cost and expense of Borrower, of third party consultant(s) to review and approve the New PIP).
Borrower shall be required to deposit any PIP Reserve True-Up in connection with such New PIP pursuant to the terms of Section 6.7.1 hereof.
Prior to the effective date that any New PIP is imposed under the Franchise Agreement, Borrower shall deposit an amount equal to one hundred twenty-five percent (125%) of the cost of such new PIP as estimated by Borrower and approved by Lender (the “PIP Deposit Amount”), with such amount to be held in an account with Lender and shall be deemed an “Account” and “Reserve Account” (each as defined in the Cash Management Agreement) hereunder.
The PIP Deposit Amount shall be deemed PIP Reserve Funds and the work required under the New PIP shall be deemed PIP Work.