Common use of Contracts and Supplies Clause in Contracts

Contracts and Supplies. Manager shall, in the name of, and on behalf of, Owner, and at Owner’s expense, and in accordance with the Budget, (x) consummate arrangements with concessionaires, licensees, suppliers, vendors and other providers of goods and services to the Facilities, as applicable, (y) enter into contracts for the furnishing to the Facilities of electricity, gas, water, telephone, cleaning, vermin extermination, heating, ventilation and air-conditioning maintenance, security protection, pest control, and any other utilities, goods, services and concessions to be provided in connection with the maintenance and operation of the Facilities in accordance with the Standards, as applicable, and (z) place purchase orders for such equipment, tools, appliances, materials and supplies as are necessary to properly maintain, and are used exclusively for, the Facilities, as applicable. Any contracts or agreements (i) with a cancellation or termination fee in excess of $100,000, or (ii) the scope of which are outside of the ordinary course of business and are not otherwise contemplated under the Budget, shall be executed by Owner, but other contracts and agreements may be executed by Manager as Owner’s agent. Each such contract or agreement shall: (a) be in the name of the Facility or Facilities it will serve, (b) be assignable, at Owner’s option, to Owner or Owner’s nominee, (c) include a provision of cancellation thereof by Owner or Manager upon not more than one hundred twenty (120) days written notice and/or contain a cancellation or termination fee not in excess of $100,000, unless otherwise agreed in writing by Owner and Manager, and (d) shall require that all contractors provide evidence of sufficient insurance and named insureds on terms satisfactory to Owner. If this Agreement is terminated pursuant to Article VII, Manager shall, at Owner’s option, assign to Owner or Owner’s nominee all contracts and agreements pertaining to any of the Facilities. Manager shall notify Owner if any such contracting entity is either a subsidiary, affiliate, or has any other relationship whatsoever to Manager. Manager shall be authorized to use third party services so long as the prices for services/sales by such parties are competitive with other market-rate suppliers. Manager shall pass on to Owner, as additional operating revenue or reduced operating expenses, as the case may be, all rebates and discounts received by Manager or its Affiliates in connection with its management of the Facilities.