Common use of National Contracts Clause in Contracts

National Contracts. If Operator enters into any “national” contract in which services or goods are provided to substantially all hotels then currently managed by Operator, Lessee acknowledges and agrees that the Hotel shall participate in such “national” contract subject to the terms of the Operating Plan and Budget; provided, however, that if Lessee is able to obtain such goods or services on more favorable terms than the terms provided in a “national” contract, Lessee may, at its option, opt out of such “national” contract. If goods or services are provided by a third-party vendor as part of a “national” contract, the Hotel’s share of the actual costs of such goods or services shall be included in the Operating Plan and Budget; provided, however, that if the Hotel’s portion of the actual costs incurred by all hotels managed by Operator that are participating in the national contract are not capable of being determined, based on a per unit basis or other objective formula, Operator shall allocate to Lessee the Hotel’s pro-rata share of the costs of such national contract based on Operator’s equitable determination of the same consistent with Operator’s allocation formula for central reservations services set forth on Exhibit C attached hereto. Lessee shall retain the right to review these National Contracts on an annual basis as part of the Operating Plan and Budget approval process described in Section 2.2.