Common use of Initial Improvements Clause in Contracts

Initial Improvements. (a) As soon as practicable following the Effective Date, Owner is to undertake certain Construction to upgrade and renovate the Hotel. Manager shall facilitate such Construction on behalf of Owner but Owner shall be responsible for such Construction and the completion thereof. Such Construction is described on Schedule 3.5 (the “Initial Improvements”) and will be effected pursuant to a scope of work and terms, plans, specifications and standards developed by Manager in consultation with Owner and approved by Owner (such approval not to be unreasonably withheld or delayed). The costs of the Initial Improvements shall be paid from the Reserve Fund Account, taking into account the need for Reserve Fund Work at the Hotel. Owner shall diligently prosecute the Initial Improvements, to the extent funds are available therefor in the Reserve Fund Account, and provision therefor shall be included in the Annual Plan. Manager shall have the rights set forth in Section 3.5(b) if the Initial Improvements are not completed by the first anniversary of the Effective Date. In connection with the Initial Improvements, Owner and Manager (or an Affiliate of Manager) may, upon approval by Owner, enter into a purchasing agreement in a form proposed by Manager and approved by Owner, and Manager or such Affiliate will be entitled to receive certain fees thereunder, which fees also shall be in addition to the Management Fees and other amounts payable to Manager under this Agreement. In addition, it is anticipated that an employee of Manager may be utilized to perform certain limited construction supervision services for the Initial Improvements on behalf of Owner. Owner will (i) be entitled to approve such individual and (ii) reimburse Manager for (A) all reasonable travel, lodging, telephone and other expenses incurred by such employee that are directly related to his or her performance of such services and (B) the pro rata portion of such employee’s total monthly compensation (including benefits) based upon the number of days (or partial days and including travel time) in any given month in which such employee performs such services on behalf of Owner.