Management Agreement
Category: Independent Contractor
MANAGEMENT AGREEMENT
for
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by and between
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as Lessee,
and
Innkeepers Hospitality Management, Inc.,
a Florida corporation
as Manager,
Dated: _______________
Commencement Date: ________________
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Table of Contents
Table of Contents..............................................................i
PRELIMINARY STATEMENT..........................................................1
1. APPOINTMENT AND TERM.....................................................1
1.01 Appointment........................................................1
1.02 Operating Term.....................................................1
1.03 Management Authority...............................................1
1.04 Limitations on Manager.............................................2
2. HOTEL OPERATIONS.........................................................2
2.01 Hotel Management Services..........................................2
2.02 Employees..........................................................4
3. ANNUAL PLAN..............................................................5
3.01 Preparation and Submission.........................................5
3.02 Lessee's Approval..................................................5
3.03 Compliance with Annual Plan........................................6
3.04 Agreement Limitations..............................................6
3.05 Emergencies........................................................6
4. HOTEL ACCOUNTS; MAINTENANCE OF MINIMUM BALANCE...........................7
4.01 Hotel Bank Accounts................................................7
4.02 Minimum Balance....................................................7
5. BOOKS AND RECORDS........................................................7
5.01 Maintenance of Books and Records...................................7
5.02 Location; Examination and Inspection...............................7
5.03 Lessee to Receive all Books and Records Upon Termination...........8
5.04 Reports to Lessee..................................................8
5.05 Final Accounting...................................................8
5.06 Form of Reports....................................................9
6. MANAGEMENT FEES AND EXPENSES.............................................9
6.01 Management Fees....................................................9
6.02 Reimbursement of Costs and Expenses................................9
6.03 Rebates and Discounts.............................................10
7. DISBURSEMENTS...........................................................10
7.01 Priority of Payments..............................................10
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8. INSURANCE...............................................................11
8.01 Maintenance of Insurance..........................................11
8.02 Lessee Methods of Obtaining Insurance.............................11
8.03 Coverages.........................................................11
8.04 Responsibility for Premiums.......................................12
8.05 Replacement Cost..................................................12
8.06 Waiver of Subrogation and Indemnities.............................13
8.07 Form Satisfactory, etc............................................13
8.08 Increase in Limits................................................13
8.09 Blanket Policy....................................................13
8.10 Separate Insurance................................................14
8.11 Reports on Insurance Claims.......................................14
8.12 Deductibles to be Operating Expenses..............................14
9. INDEMNITIES.............................................................14
9.01 Indemnification of Manager........................................14
9.02 Indemnification of Lessee.........................................15
9.03 Indemnified Parties...............................................15
10. CONDEMNATION............................................................15
10.01 Definitions.......................................................15
10.02 Parties' Rights and Obligations...................................15
10.03 Total Taking......................................................15
10.04 Partial Taking....................................................16
10.05 Temporary Taking..................................................16
11. CASUALTY................................................................17
11.01 Insurance Proceeds................................................17
11.02 Reconstruction - Damage or Destruction Covered by Insurance.......18
11.03 Reconstruction - Damage or Destruction not Covered by Insurance...18
11.04 Abatement.........................................................19
11.05 Damage Near End of Term...........................................19
12. DEFAULT.................................................................19
12.01 Events of Default by Manager......................................19
12.02 Lessee Default....................................................21
12.03 Unavoidable Delay.................................................21
12.04 Damages...........................................................21
12.05 Litigation Costs..................................................21
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13. LESSEE'S TERMINATION WITHOUT AN EVENT OF DEFAULT........................21
13.01 With Payment of Termination Fee...................................21
13.02 Without Payment of Termination Fee................................22
14. DEFINITIONS.............................................................22
15. GENERAL PROVISIONS......................................................25
15.01 Estoppel Certificates.............................................25
15.02 Arbitration.......................................................25
15.03 Telecommunications Leases and Licenses............................27
15.05 Modifications and Charges.........................................27
15.06 Understandings and Agreements.....................................27
15.07 Headings..........................................................27
15.08 Survival of Covenants.............................................27
15.09 Waivers...........................................................28
15.10 Applicable Law....................................................28
15.11 Notices...........................................................28
15.12 Binding Effect....................................................28
15.13 Confidentiality...................................................28
15.14 Conflicts.........................................................29
15.15 Third Party Beneficiary...........................................29
15.16 Subordination.....................................................29
15.17 Time of the Essence...............................................29
15.18 Counterparts......................................................29
SCHEDULE I - Terms of Agreement...............................................32
SCHEDULE II - Management Services Included in Management Fee..................34
SCHEDULE III - Sample Statement of Profit and Loss............................36
SCHEDULE IV - Definition of Capital Replacements..............................37
SCHEDULE V - STR Competitive Set..............................................40
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MANAGEMENT AGREEMENT
.........THIS MANAGEMENT AGREEMENT (this "Agreement") is made as of the ______
day of ___________________________, by and between ___________________________
("Lessee") and Innkeepers Hospitality Management, Inc., a Florida corporation
dba Island Hospitality (hereinafter referred to as "Manager").
PRELIMINARY STATEMENT
A. Lessee is the lessee of the Hotel described on Schedule I.
B. Manager is an independent contractor engaged in the management of
hotels throughout the United States, and Manager is experienced in the various
phases of hotel operations.
C. Lessee is desirous of utilizing the services and experience of
Manager in connection with the operation of the hotel, and Manager desires to
render such services, all upon the terms and conditions hereinafter set forth.
1. APPOINTMENT AND TERM.
1.01 Appointment.
Lessee hereby appoints Manager as manager of the Hotel with the obligation to
direct, supervise, manage and operate the Hotel on the terms set forth herein.
Lessee will not employ any other manager to manage the Hotel during the Term.
1.02 Operating Term.
The initial operating term (the "Initial Term") of this Agreement will commence
at 12:01 A.M. on the date identified on Schedule I (the "Commencement Date") and
terminate at 11:59 on the expiration date identified on Schedule I (the
"Expiration Date"). Thereafter, the Term of this Agreement shall continue on a
month-to-month basis, and Lessee shall have the right to terminate this
Agreement upon thirty (30) days prior written notice to Manager, and Manager
shall have the right to terminate this Agreement upon sixty (60) days written
notice to Lessee. The Initial Term, as extended pursuant to the preceding
sentence, shall be referred to herein as the "Term." In no event shall the Term
of this Agreement exceed the term of the License Agreement.
1.03 Management Authority.
Manager shall have the sole and exclusive right and obligation to manage and
operate the Hotel pursuant to the terms of this Agreement and Manager agrees
that it shall manage and operate the Hotel as a first class hotel in accordance
with the standards of the Franchisor, taking into account the size, location and
character of the Hotel.
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