Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 284

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 8
Chunk 284
---
 set priority: (i) tax reserve, (ii) insurance reserve, (iii) bank
fees, (iv) amounts due under the senior loan (interest and any other amounts due thereunder), (v) capital expenditure/FF&E reserve,
(vi) approved operating expenses and custodial funds, and (vii) all remaining “available cash” to the carry reserve during
the initial cash-management period or, thereafter, to the cash collateral subaccount, all in accordance with the loan documents. The
account must maintain a minimum balance of $5,000. While no event of default exists, interest on balances (other than tax and insurance
subaccounts) accrues to Operating; upon an event of default, the lender may direct application of all funds in any order to the debt.
The agreement contains customary subordination of bank set-off rights, indemnities, New York governing-law and jury-trial-waiver provisions.
See also Note 10—Mortgage Notes Payable. The Cash Management Agreement referenced above is incorporated by reference to the Annual
Report of Form 10-K of Portsmouth Square, Inc. for the fiscal year ended June 30, 2025 (see Item 15(a)(3) – Exhibits).

    63

Franchise
Agreements

Justice
Investors Limited Partnership (now dissolved) entered into a Franchise License Agreement with HLT Existing Franchise Holding LLC (“Hilton”)
on December 10, 2004. The agreement provided an initial 15-year term from the Hotel’s conversion to the Hilton brand and included
an option to extend, subject to conditions. On June 26, 2015, Operating and Hilton executed an amended franchise agreement that, among
other things, extended the franchise term through January 31, 2030 and provided key-money incentives, subject to the applicable terms.

Since
the opening of the Hotel as a full brand Hilton in January 2006, it has incurred monthly royalties, marketing/program fees, and information-technology
charges equal to a percentage of the Hotel’s gross room revenue. Fees for such services during fiscal year 2025 and 2024 totaled
approximately $3,529,000 and $2,967,000, respectively, and are included in Hotel operating expenses.

Employees

The
Company’s corporate office and multifamily operations had 30 employees as of June 30, 2025 and the Hotel operations had 187 employees
as of June 30,