PROCURE PURSUANT TO THE
YEARLY BUDGETS ALL SUCH OPERATING SUPPLIES AND OPERATING EQUIPMENT AS MANAGER
DEEMS NECESSARY FOR THE NORMAL AND ORDINARY COURSE OF OPERATION OF THE HOTEL IN
ACCORDANCE WITH THE BRAND STANDARDS AND OPERATING STANDARDS.
7.3
PERSONNEL.
(A)
ALL PERSONNEL EMPLOYED AT THE HOTELS WILL BE EMPLOYEES OF MANAGER.
MANAGER WILL HIRE, SUPERVISE, DIRECT, DISCHARGE AND DETERMINE THE COMPENSATION,
OTHER BENEFITS AND TERMS OF EMPLOYMENT OF ALL PERSONNEL WORKING IN THE HOTELS.
MANAGER, IN THE EXERCISE OF REASONABLE DISCRETION AND BUSINESS JUDGMENT, WILL BE
THE SOLE JUDGE OF THE FITNESS AND QUALIFICATIONS OF SUCH PERSONNEL AND IS VESTED
WITH ABSOLUTE DISCRETION IN THE HIRING, SUPERVISING, DIRECTING, DISCHARGING AND
DETERMINING THE COMPENSATION, OTHER BENEFITS AND TERMS OF EMPLOYMENT OF SUCH
PERSONNEL. IN SUCH DISCRETION, MANAGER MAY ELECT TO STAFF CERTAIN FUNCTIONS AT
OFFSITE OR REGIONAL LOCATIONS, OR TO PROVIDE EMPLOYEE BENEFITS ON A BRAND-WIDE
OR OTHER MULTI-LOCATION BASIS AND SHALL EQUITABLY ALLOCATE THE EMPLOYEE COSTS
AMONG THE HOTELS PARTICIPATING IN SUCH STAFFING OR BENEFITS. OWNER SHALL NOT
INTERFERE WITH THE PERFORMANCE OF EMPLOYMENT DUTIES OF, OR GIVE ORDERS OR
INSTRUCTIONS TO, ANY PERSONNEL EMPLOYED AT THE HOTEL. EXCEPT AS OTHERWISE
PROVIDED HEREIN, OPERATING COSTS WILL INCLUDE ALL EXPENSES, COSTS OR CHARGES
WHICH ARE ALLOCABLE TO THE TERM AND ARE RELATED TO OR INCIDENTAL TO ANY ON-SITE
PERSONNEL EMPLOYED IN THE OPERATION OF THE HOTELS (INCLUDING, WITHOUT
LIMITATION, SALARIES, WAGES, OTHER COMPENSATION, BENEFIT CONTRIBUTIONS AND
PREMIUMS, NET OF AMOUNTS PAID BY HOTEL EMPLOYEES; STOP-LOSS INSURANCE PREMIUMS;
GROUP HEALTH PLAN BENEFIT PAYMENTS IN EXCESS OF CONTRIBUTION AND PREMIUM AMOUNTS
PAID BY HOTEL EMPLOYEES; PAY FOR VACATION, HOLIDAYS, SICK LEAVE AND OTHER LEAVES
OF ABSENCE; WORKERS' COMPENSATION PREMIUMS; WORKERS COMPENSATION BENEFIT
PAYMENTS PAID BY MANAGER; REASONABLE AND CUSTOMARY ADMINISTRATIVE FEES AND
TAXES; AND SEVERANCE BENEFITS APPLICABLE UNDER MANAGER'S THEN CURRENT HUMAN
RESOURCES POLICIES).
(B)
MANAGER SHALL COMPLY WITH ALL LEGAL REQUIREMENTS PERTAINING TO
LABOR RELATIONS AND THE PERSONNEL EMPLOYED BY IT PURSUANT TO THIS AGREEMENT.
MANAGER SHALL NOT ENTER INTO ANY
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WRITTEN EMPLOYMENT AGREEMENTS WITH ANY PERSON WHICH PURPORT TO BIND THE OWNER
WITHOUT OBTAINING OWNER'S CONSENT, WHICH CONSENT MAY BE WITHHELD IN OWNER'S SOLE
AND ABSOLUTE DISCRETION. IF EITHER MANAGER OR OWNER SHALL BE REQUIRED, PURSUANT
TO ANY SUCH LEGAL REQUIREMENT, TO RECOGNIZE A LABOR UNION OR TO ENTER INTO
COLLECTIVE BARGAINING WITH A LABOR UNION, THE PARTY SO REQUIRED SHALL PROMPTLY
NOTIFY THE OTHER. THE TERMS OF THIS SECTION 7.3(B) SHALL SURVIVE THE EXPIRATION
OR EARLIER TERMINATION OF THIS AGREEMENT.
(C)
NO EMPLOYEE OF THE HOTELS SHALL RESIDE AT
THE HOTELS WITHOUT THE PRIOR WRITTEN APPROVAL OF OWNER. NO PERSON SHALL BE GIVEN
GRATUITOUS ACCOMMODATIONS OR SERVICES WITHOUT PRIOR APPROVAL OF OWNER EXCEPT IN
ACCORDANCE WITH USUAL PRACTICES OF THE BRAND AND THE HOTEL AND TRAVEL INDUSTRY.
(D)
TO THE EXTENT CONSISTENT WITH THE APPLICABLE YEARLY BUDGET,
OPERATING COST MAY INCLUDE UP TO $5,000 PER HOTEL, PER FISCAL YEAR FOR TRAVEL
RELATED EXPENSE OF MANAGER'S SENIOR OPERATIONAL PERSONNEL IN CONNECTION WITH
THEIR VISITS TO THE HOTEL. SAID $5,000