FORTH IN
SECTION 7.4(B) BELOW, REMOVE ANY OF LESSEE'S PERSONAL PROPERTY AT ANY TIME
DURING THE TERM OR UPON THE EXPIRATION OR ANY PRIOR TERMINATION OF THE TERM.
ALL OF LESSEE'S PERSONAL PROPERTY, OTHER THAN INVENTORY, NOT REMOVED BY LESSEE
WITHIN THIRTY (30) DAYS FOLLOWING THE EXPIRATION OR EARLIER TERMINATION OF THE
TERM SHALL BE CONSIDERED ABANDONED BY LESSEE AND MAY BE APPROPRIATED, SOLD,
DESTROYED OR OTHERWISE DISPOSED OF BY LESSOR WITHOUT FIRST GIVING NOTICE THEREOF
TO LESSEE, WITHOUT ANY PAYMENT TO LESSEE AND WITHOUT ANY OBLIGATION TO ACCOUNT
THEREFOR.
LESSEE WILL, AT ITS EXPENSE, RESTORE THE LEASED PROPERTY TO THE
CONDITION REQUIRED BY SECTION 9.1(D), INCLUDING REPAIR OF ALL DAMAGE TO THE
LEASED PROPERTY CAUSED BY THE REMOVAL OF LESSEE'S PERSONAL PROPERTY.
20
(B)
UPON THE EXPIRATION OR EARLIER TERMINATION
OF THE TERM FOR ANY REASON, LESSEE SHALL SURRENDER THE LEASED PROPERTY TO LESSOR
WITH A QUALITY OF NONCONSUMABLE INVENTORY AND CONSUMABLE SUPPLIES SUBSTANTIALLY
EQUAL TO THE INITIAL INVENTORY AND IN AN AMOUNT OF NOT LESS THAN NINETY PERCENT
(90%) OF THE INITIAL INVENTORY.
7.5
FFE.
LESSOR SHALL ESTABLISH AND MAINTAIN A
RESERVE (THE "FFE RESERVE") EQUAL TO THE LESSER OF (A) THE AMOUNT REQUIRED BY
ANY HOLDER, OR (B) AN AMOUNT EQUAL TO THE FOLLOWING PERCENT OF GROSS REVENUES
(OR SUCH OTHER AMOUNT AS MAY BE SPECIFIED IN THE ANNUAL BUDGET FOR SUCH YEAR):
(I) ONE PERCENT (1%) DURING THE FIRST AND SECOND LEASE YEARS; (II) TWO PERCENT
(2%) DURING THE THIRD LEASE YEAR; (III) THREE PERCENT (3%) DURING THE FOURTH
LEASE YEAR; AND (IV) FOUR PERCENT (4%) DURING EACH LEASE YEAR THEREAFTER.
IF AT
ANY TIME DURING THE TERM, ANY ITEM OF FFE (DEFINED BELOW) REQUIRES REPLACEMENT,
(A) IF SUCH AMOUNTS WERE NOT INCLUDED IN THE ANNUAL BUDGET, UPON A WRITTEN
REQUEST THEREFOR FROM LESSEE AND APPROVAL OF SUCH EXPENDITURES BY LESSOR (WHICH
APPROVAL SHALL NOT BE UNREASONABLY WITHHELD OR DELAYED), OR (B) IF SUCH AMOUNTS
WERE NOT INCLUDED IN THE ANNUAL BUDGET, LESSOR SHALL PROMPTLY ADVANCE SUFFICIENT
FUNDS FROM THE FFE RESERVE TO ENABLE LESSEE TO PURCHASE THE REQUIRED
REPLACEMENTS.
LESSEE SHALL MAKE NO EXPENDITURE FOR REPLACEMENT OF FFE IN EXCESS
OF THE AMOUNTS IN THE FFE RESERVE WITHOUT FIRST OBTAINING THE APPROVAL OF
LESSOR.
ANY ADDITIONS TO OR REPLACEMENTS OF FURNITURE, FIXTURES, AND EQUIPMENT
LOCATED AT THE LEASED PROPERTY SHALL BECOME PART OF THE FFE, WHICH IS OWNED BY
LESSOR.
THROUGHOUT THE TERM OF THIS LEASE, LESSEE SHALL, AT ITS SOLE COST AND
EXPENSE, CAUSE ALL OF THE ITEMS OF FFE TO BE IN PROPER WORKING ORDER AND IN GOOD
CONDITION (ORDINARY WEAR AND TEAR EXCEPTED).
THE TERM "FFE" SHALL HAVE THE
MEANING AS SET FORTH IN THE UNIFORM SYSTEM AND SHALL INCLUDE, WITHOUT
LIMITATION, ALL VEHICLES, FURNITURE, FURNISHINGS AND HOTEL EQUIPMENT (INCLUDING
OFFICE EQUIPMENT, EXERCISE EQUIPMENT, MEDICAL AND/OR HEALTH EQUIPMENT, AND
PROPERTY MANAGEMENT EQUIPMENT AS NECESSARY).
7.6
LESSEE'S OBLIGATION TO MANAGE.
AT ALL TIMES
DURING THE TERM, LESSEE SHALL BE RESPONSIBLE FOR THE MANAGEMENT AND OPERATION OF
THE LEASED PROPERTY THROUGH THE MANAGER