Common use of Budgeting Process Clause in Contracts

Budgeting Process. The Annual Operating Budget and the Initial Operating Budget submitted to Lessee by Manager shall be subject to the approval of Lessee (such approval not to be unreasonably withheld, delayed or conditioned). The Annual Operating Budget and the Initial Operating Budget shall not be deemed accepted by Xxxxxx in the absence of its express written approval. Not later than thirty (30) days after receipt by Xxxxxx of a proposed Annual Operating Budget or the Initial Operating Budget (or such longer period as Lessee may reasonably request on Notice to Manager), Lessee may deliver an AOB Objection Notice with reasonable detail to Manager stating that Lessee objects to any information contained in or omitted from such proposed Annual Operating Budget or Initial Operating Budget and setting forth the nature of such objections with reasonable specificity. Failure of Lessee to deliver express written approval of the Annual Operating Budget or the Initial Operating Budget or an AOB Objection Notice shall be deemed rejection of Manager’s proposed Annual Operating Budget or Initial Operating Budget in its entirety. Upon receipt of any AOB Objection Notice, Manager shall, after consultation with Xxxxxx, modify the proposed Initial Operating Budget or Annual Operating Budget, as the case may be, taking into account Xxxxxx’s objections, and shall resubmit the same to Lessee for Lessee’s approval within fifteen (15) days thereafter, and Lessee may deliver further AOB Objection Notices (if any) within fifteen (15) days thereafter (in which event, the re-submission and review process described above in this sentence shall continue until the proposed Initial Operating Budget or Annual Operating Budget in question is accepted and consented to by Xxxxxx). Notwithstanding anything to the contrary set forth herein, Lessee shall have the right at any time subsequent to the acceptance and consent with respect to any Annual Operating Budget or the Initial Annual Budget, on Notice to Manager, to revise such Initial Operating Budget or Annual Operating Budget or to request that Manager prepare for Lessee’s approval a revised Initial Annual Budget or Annual Operating Budget, taking into account such circumstances as Lessee deems appropriate and with due consideration of input from Manager regarding such revised budget; provided, however, that the revision of an Initial Operating Budget or Annual Operating Budget shall not be deemed a revocation of Manager’s authority with respect to such actions as Manager may have already taken prior to receipt of such revision notice in implementing a previously approved budget or plan. In connection with the development of the Annual Operating Budget, Manager shall propose Gross Revenue, Gross Operating Profit and other operating targets and goals as well as market based goals for occupancy rates, Revpar and average daily room rates utilizing the segmentation categories to be used by Manager to report property-level operating information to Xxxxx Travel Research. Manager shall provide such targets and goals to Lessee in connection with Xxxxxx’s review of Manager’s proposed Annual Operating Budget. The final targets and goals relating to Gross Revenue, Gross Operating Profits, occupancy rates, average daily rates and other operating and market based goals shall be determined by Lessee in its reasonable discretion. In addition, during the preparation of the Annual Operating Budget, Manager shall develop a revenue management strategy that will be reflected in the Annual Operating Budget and subject to review and approval by Lessee, which shall not be unreasonably withheld, delayed or conditioned. Xxxxxx and Manager acknowledge and agree that the Initial Annual Budget and Annual Operating Budgets are merely forecasts of operating revenues and expenses for an ensuing year and may be revised, by Xxxxxx, from time to time as business and operating conditions shall demand and with due consideration of input from Manager. However, Manager shall use its commercially reasonable efforts to operate the Premises in accordance with the Annual Operating Budget. The failure of the Hotel to perform in accordance with such Annual Operating Budget shall not constitute an Event of Default or breach by Manager of this Agreement except as otherwise provided in Section 25.1. Whenever in this Agreement Manager is called upon to manage the Hotel or otherwise act consistent with the Annual Operating Budget (or words to that effect), that directive shall be interpreted to include the provisions of the immediately preceding three sentences. Manager shall not enter into contracts in excess of the amounts approved in the Annual Operating Budget except as otherwise provided in this Agreement.

Budgeting Process. The Annual Operating Budget and (other than the Initial Operating Budget Budget) submitted to Lessee by Manager shall be subject to the approval of Lessee (such approval not to be unreasonably withheld, delayed or conditioned). The Annual Operating Budget and (other than the Initial Operating Budget Budget) shall not be deemed accepted by Xxxxxx Lessee in the absence of its express written approval. Not later than thirty (30) days after receipt by Xxxxxx Lessee of a proposed Annual Operating Budget or (other than the Initial Operating Budget Budget) (or such longer period as Lessee may reasonably request on Notice to Manager), Lessee may deliver an AOB Objection Notice with reasonable detail to Manager stating that Lessee objects to any information contained in or omitted from such proposed Annual Operating Budget or Initial Operating Budget and setting forth the nature of such objections with reasonable specificity. Failure of Lessee to deliver express written approval of the Annual Operating Budget or (other than the Initial Operating Budget Budget) or an AOB Objection Notice shall be deemed rejection of Manager’s proposed Annual Operating Budget or Initial Operating Budget in its entirety. Upon receipt of any AOB Objection Notice, Manager shall, after consultation with XxxxxxLessee, modify the proposed Initial Annual Operating Budget or Annual Operating Budget, as the case may be, taking into account XxxxxxLessee’s objections, and shall resubmit the same to Lessee for Lessee’s approval within fifteen (15) days thereafter, and Lessee may deliver further AOB Objection Notices (if any) within fifteen (15) days thereafter (in which event, the re-submission and review process described above in this sentence shall continue until the proposed Initial Operating Budget or Annual Operating Budget in question is accepted and consented to by XxxxxxLessee). Notwithstanding anything to the contrary set forth herein, Lessee shall have the right at any time subsequent to the acceptance and consent with respect to any Annual Operating Budget or the Initial Annual Operating Budget, on Notice to Manager, to revise such Initial Operating Budget or Annual Operating Budget or to request that Manager prepare for Lessee’s approval a revised Initial Annual Budget or Annual Operating Budget, taking into account such circumstances as Lessee deems appropriate and with due consideration of input from Manager regarding such revised budget; provided, however, that the revision of an Initial Operating Budget or Annual Operating Budget shall not be deemed a revocation of Manager’s authority with respect to such actions as Manager may have already taken prior to receipt of such revision notice in implementing a previously approved budget or plan. In connection with the development of the Annual Operating Budget, Manager shall propose Gross Revenue, Gross Operating Profit and other operating targets and goals as well as market based goals for occupancy rates, Revpar and average daily room rates utilizing the segmentation categories to be used by Manager to report property-level operating information to Xxxxx Travel Research. Manager shall provide such targets and goals to Lessee in connection with XxxxxxLessee’s review of Manager’s proposed Annual Operating Budget. The final targets and goals relating to Gross Revenue, Gross Operating Profits, occupancy rates, average daily rates and other operating and market based goals shall be determined by Lessee in its reasonable discretion. In addition, during the preparation of the Annual Operating Budget, Manager shall develop a revenue management strategy that will be reflected in the Annual Operating Budget and subject to review and approval by Lessee, which shall not be unreasonably withheld, delayed or conditioned. Xxxxxx Lessee and Manager acknowledge and agree that the Initial Annual Budget and Annual Operating Budgets are merely forecasts of operating revenues and expenses for an ensuing year and may be revised, by XxxxxxLessee, from time to time as business and operating conditions shall demand and with due consideration of input from Manager. However, Manager shall use its commercially reasonable efforts to operate the Premises in accordance with the Annual Operating Budget. The failure of the Hotel to perform in accordance with such Annual Operating Budget shall not constitute an Event of Default or breach by Manager of this Agreement except as otherwise provided in Section 25.1. Whenever in this Agreement Manager is called upon to manage the Hotel or otherwise act consistent with the Annual Operating Budget (or words to that effect), that directive shall be interpreted to include the provisions of the immediately preceding three sentencesAgreement. Manager shall not enter into contracts in excess of the amounts approved in the Annual Operating Budget except as otherwise provided in this Agreement.

Budgeting Process. (a) The Parties agree that the Reimbursable Costs shall be paid to the Services Provider only to the extent that such Reimbursable Costs are contemplated in a budget that has been approved in advance by the Owner pursuant to the procedures set forth below (each such approved budget, an “Annual Operating Budget”); provided, that in the case of Emergency Situations, the Services Provider shall have the right to expend up to an amount not to exceed $250,000 without first obtaining the Owner’s approval. The initial Annual Budget for calendar year 2003 is attached hereto as Exhibit B. (b) At least sixty (60) days prior to the end of each calendar year, the Services Provider shall prepare and submit to the Owner for approval a proposed annual operating plan for the following calendar year in substantially the form of Exhibit B. (c) Owner shall review the Services Provider’s proposed Annual Budget and the Initial Operating Budget submitted to Lessee by Manager shall be subject to the approval of Lessee (such approval not to be unreasonably withheld, delayed or conditioned). The Annual Operating Budget and the Initial Operating Budget shall not be deemed accepted by Xxxxxx in the absence of its express written approval. Not later than provide comments within thirty (30) days after receipt by Xxxxxx of a proposed Annual Operating Budget or the Initial Operating Budget (or such longer period as Lessee may reasonably request on Notice to Manager), Lessee may deliver an AOB Objection Notice with reasonable detail to Manager stating that Lessee objects to any information contained in or omitted from such proposed Annual Operating Budget. The Owner and the Services Provider shall then use their best efforts to agree upon a final Annual Budget or Initial Operating Budget and setting forth before the nature of such objections with reasonable specificity. Failure of Lessee to deliver express written approval end of the calendar year. The Parties acknowledge that such agreed upon Annual Operating Budget must be submitted to the Owner’s Lender for review and adoption in accordance with the Owner’s applicable financing documents. The final Annual Budget as approved by the Parties and the Owner’s Lender shall remain in effect throughout the applicable calendar year, subject to such necessary updating, revisions or the Initial Operating Budget or an AOB Objection Notice shall amendments as may be deemed rejection of Manager’s proposed Annual Operating Budget or Initial Operating Budget in its entirety. Upon receipt of any AOB Objection Notice, Manager shall, after consultation with Xxxxxx, modify the proposed Initial Operating Budget or Annual Operating Budget, as the case may be, taking into account Xxxxxx’s objections, and shall resubmit the same to Lessee for Lessee’s approval within fifteen (15) days thereafter, and Lessee may deliver further AOB Objection Notices (if any) within fifteen (15) days thereafter (in which event, the re-submission and review process described above in this sentence shall continue until the proposed Initial Operating Budget or Annual Operating Budget in question is accepted by either Party and consented to in writing by Xxxxxx)the other Party. Notwithstanding anything The Services Provider shall notify the Owner as soon as reasonably possible of any material deviations or discrepancies from the obligations contained in the Annual Budget. (d) If, by the first day of any calendar year, the Parties have not been able to the contrary set forth herein, Lessee shall have the right at any time subsequent to the acceptance and consent reach an agreement with respect to any Annual Operating Budget or portion of the Initial Annual Budget, on Notice to Manager, to revise such Initial Operating Budget or Annual Operating Budget or to request that Manager prepare for Lessee’s approval a revised Initial Annual Budget or for such calendar year, then: (i) any agreed portions of the Annual Operating Budget, taking into account such circumstances as Lessee deems appropriate and with due consideration of input from Manager regarding such revised budget; provided, however, that the revision of an Initial Operating Budget or Annual Operating Budget shall not be deemed a revocation adopted and implemented for the applicable Operating Year in accordance with Section 6(c), and (ii) the disagreement in respect of Manager’s authority the unresolved portions of the Annual Budget shall be resolved in accordance with the provisions of Section 15 and, pending the resolutions of such dispute, the applicable portions of the Annual Budget for the prior calendar year with respect to such actions as Manager may have already taken prior to receipt of such revision notice in implementing a previously approved budget or plan. In connection with the development of the Annual Operating Budget, Manager unresolved portions shall propose Gross Revenue, Gross Operating Profit and other operating targets and goals as well as market based goals for occupancy rates, Revpar and average daily room rates utilizing the segmentation categories to be used by Manager to report property-level operating information to Xxxxx Travel Research. Manager shall provide such targets and goals to Lessee in connection with Xxxxxx’s review of Manager’s proposed Annual Operating Budget. The final targets and goals relating to Gross Revenue, Gross Operating Profits, occupancy rates, average daily rates and other operating and market based goals shall be determined by Lessee in its reasonable discretion. In addition, during the preparation of the Annual Operating Budget, Manager shall develop a revenue management strategy that will be reflected in the Annual Operating Budget and subject to review and approval by Lessee, which shall not be unreasonably withheld, delayed or conditioned. Xxxxxx and Manager acknowledge and agree that the Initial Annual Budget and Annual Operating Budgets are merely forecasts of operating revenues and expenses for an ensuing year and may be revised, by Xxxxxx, from time to time as business and operating conditions shall demand and with due consideration of input from Manager. However, Manager shall use its commercially reasonable efforts to operate the Premises in accordance with the Annual Operating Budget. The failure of the Hotel to perform in accordance with such Annual Operating Budget shall not constitute an Event of Default or breach by Manager of this Agreement except as otherwise provided in Section 25.1. Whenever in this Agreement Manager is called upon to manage the Hotel or otherwise act consistent with the Annual Operating Budget (or words to that effect), that directive shall be interpreted to include the provisions of the immediately preceding three sentences. Manager shall not enter into contracts in excess of the amounts approved in the Annual Operating Budget except as otherwise provided in this Agreementremain effective.

Budgeting Process. The Annual Operating Budget and the Initial Operating Budget submitted to Lessee by Manager shall be subject to the approval of Lessee (such approval not to be unreasonably withheld, delayed or conditioned). The Annual Operating Budget and the Initial Operating Budget shall not be deemed accepted by Xxxxxx Lessee in the absence of its express written approval. Not later than thirty (30) days after receipt by Xxxxxx Lessee of a proposed Annual Operating Budget or the Initial Operating Budget (or such longer period as Lessee may reasonably request on Notice to Manager), Lessee may deliver an AOB Objection Notice with reasonable detail to Manager stating that Lessee objects to any information contained in or omitted from such proposed Annual Operating Budget or Initial Operating Budget and setting forth the nature of such objections with reasonable specificity. Failure of Lessee to deliver express written approval of the Annual Operating Budget or the Initial Operating Budget or an AOB Objection Notice shall be deemed rejection of Manager’s proposed Annual Operating Budget or Initial Operating Budget in its entirety. Upon receipt of any AOB Objection Notice, Manager shall, after consultation with XxxxxxLessee, modify the proposed Initial Operating Budget or Annual Operating Budget, as the case may be, taking into account XxxxxxLessee’s objections, and shall resubmit the same to Lessee for Lessee’s approval within fifteen (15) days thereafter, and Lessee may deliver further AOB Objection Notices (if any) within fifteen (15) days thereafter (in which event, the re-submission and review process described above in this sentence shall continue until the proposed Initial Operating Budget or Annual Operating Budget in question is accepted and consented to by XxxxxxLessee). Notwithstanding anything to the contrary set forth herein, Lessee shall have the right at any time subsequent to the acceptance and consent with respect to any Annual Operating Budget or the Initial Annual Budget, on Notice to Manager, to revise such Initial Operating Budget or Annual Operating Budget or to request that Manager prepare for Lessee’s approval a revised Initial Annual Budget or Annual Operating Budget, taking into account such circumstances as Lessee deems appropriate and with due consideration of input from Manager regarding such revised budget; provided, however, that the revision of an Initial Operating Budget or Annual Operating Budget shall not be deemed a revocation of Manager’s authority with respect to such actions as Manager may have already taken 8477886-v2\WASDMS 26 prior to receipt of such revision notice in implementing a previously approved budget or plan. In connection with the development of the Annual Operating Budget, Manager shall propose Gross Revenue, Gross Operating Profit and other operating targets and goals as well as market based goals for occupancy rates, Revpar and average daily room rates utilizing the segmentation categories to be used by Manager to report property-level operating information to Xxxxx Travel Research. Manager shall provide such targets and goals to Lessee in connection with XxxxxxLessee’s review of Manager’s proposed Annual Operating Budget. The final targets and goals relating to Gross Revenue, Gross Operating Profits, occupancy rates, average daily rates and other operating and market based goals shall be determined by Lessee in its reasonable discretion. In addition, during the preparation of the Annual Operating Budget, Manager shall develop a revenue management strategy that will be reflected in the Annual Operating Budget and subject to review and approval by Lessee, which shall not be unreasonably withheld, delayed or conditioned. Xxxxxx Lessee and Manager acknowledge and agree that the Initial Annual Budget and Annual Operating Budgets are merely forecasts of operating revenues and expenses for an ensuing year and may be revised, by XxxxxxLessee, from time to time as business and operating conditions shall demand and with due consideration of input from Manager. However, Manager shall use its commercially reasonable efforts to operate the Premises in accordance with the Annual Operating Budget. The failure of the Hotel to perform in accordance with such Annual Operating Budget shall not constitute an Event of Default or breach by Manager of this Agreement except as otherwise provided in Section 25.1. Whenever in this Agreement Manager is called upon to manage the Hotel or otherwise act consistent with the Annual Operating Budget (or words to that effect), that directive shall be interpreted to include the provisions of the immediately preceding three sentences. Manager shall not enter into contracts in excess of the amounts approved in the Annual Operating Budget except as otherwise provided in this Agreement.