Budget Advisory Committee Clause Samples

Budget Advisory Committee. The Budget Advisory Committee shall consider, amend if necessary, and ultimately approve an annual budget proposed by O2Diesel Europe for general operating expenses, including salaries, benefits, rent, ordinary marketing expenses and such other ordinary expenses as are necessary or desirable to market the O2Diesel Product in the Territory and, in the event the Technical Advisory Committee identifies and approves a Project, the Budget Advisory Committee shall agree upon a budget for such Project specifying the amounts that may be spent by O2Diesel Europe with respect to such Project, broken into such categories as the Budget Advisory Committee deems appropriate (collectively, the “Budget”). In the event that O2Diesel Europe decides to pursue such Project, it may spend funds from the Investment in accordance with such Budget. O2Diesel Europe shall not and O2Diesel shall cause O2Diesel Europe to not expend funds from the Investment on Projects without obtaining approval from the Budget Advisory Committee. The Parties hereby agree to the preliminary general operating budget for the first fiscal year of this Agreement as is attached hereto as Exhibit A. The Budget Advisory Committee may freely amend the Budget at any time, provided that in the event the Budget Advisory Committee cannot agree on a new Budget for general operating expenses in a subsequent period, the Budget for the previous period will be used for the subsequent period. All aspects of the Budget shall be subject to periodic audits as a Party may deem necessary at such Party’s expense.