Compliance with Annual Budget. Manager shall use best efforts to Operate the Hotel in accordance with the Annual Budget for the applicable Operating Year. In no event shall Manager (i) incur costs or expenses or make expenditures that would cause the expenditures during any quarter for any line item in an Annual Budget to exceed the amount budgeted for such line item in such Annual Budget for such quarter by more than 10% or, in the case of (x) costs or expenses relating to marketing, advertising or promotion of the Hotel or (y) Shared Expenses, by more than 5%, in each case without Owner’s prior approval, or (ii) exceed the Capital Budget for any Building Capital Improvements or ROI Capital Improvements by any amount without Owner’s prior approval. Notwithstanding the foregoing, Manager shall have the right, without Owner’s prior approval and without reference to the amounts provided for with respect thereto in the applicable Annual Budget, (A) to pay expenses that are not within the ability of Manager to control, including property taxes, the rates applied to (rather than the level of consumption of) utility services, insurance premiums, and license and permit fees, and (B) to make expenditures required on an emergency basis to avoid or mitigate potential injury to persons at the Hotel or damage to the Hotel or other property located at or used in the Operation of the Hotel, provided, that Manager shall endeavor to consult with Owner prior to making any such expenditures and, where such consultation is impracticable under the circumstances, shall notify Owner of the expenditures as promptly thereafter as reasonably possible.
Compliance with Annual Budget. Neither the Parent Guarantor nor any of its Subsidiaries or Affiliates may incur any material expenses or make any investments, other than expenses or investments that are in compliance with the then current Annual Budget in all material respects.
Compliance with Annual Budget. Manager shall use commercially reasonable efforts to operate the Hotel in accordance with the Annual Budget. The Parties acknowledge that the Annual Budget is an estimate only and that unforeseen circumstances during the course of the applicable Contract Year, including, without limitation, Force Majeure Events, the costs of labor, material, services and supplies, operation of law or economic and market conditions, may make adherence to the Annual Budget impracticable. Manager shall be entitled to revise any Annual Budget, subject to Owner’s prior approval in accordance with Section 5.2, in the event of significant changes in facilities availability, operating conditions, sales outlook or economic conditions for the remainder of the Contract Year. Without limiting Owner’s approval rights set forth in this Agreement, the Parties acknowledge that any failure or inability of the Hotel to meet the income or expense projections of the Annual Budget shall not constitute a default by Manager under this Agreement or impose any liability on Manager. Except as otherwise provided herein, Manager may not deviate from, or incur any expenditure inconsistent with, the Annual Budget (or enter into any agreement requiring such deviation or expenditure) without the prior written approval of Owner, which approval may be withheld, conditioned or delayed in Owner’s sole discretion; provided, however, that Owner’s approval shall not be required if: (i) such expenditure would not (a) cause any departmental total in the Annual Budget to which such expenditure relates to exceed one hundred ten percent (110%) of the budgeted amount of such department total in the Annual Budget (taking into account the amounts expended to date and reasonably anticipated expenses for the remainder of the Contract Year), or (b) cause the aggregate amount of departmental totals (excluding the expenses described in clause (ii) below) within the Annual Budget to exceed one hundred five percent (105%) of the entire amount of the Annual Budget (taking into account the amounts expended to date and reasonably anticipated expenses for the remainder of the Contract Year); or (ii) expenditures for items pursuant to Sections 5.5, 5.6, 5.7 and 5.8. Manager shall notify Owner of each permitted Annual Budget deviation made pursuant to this Section 5.4 and shall supply Owner with such information with respect thereto as Owner may reasonably request.
Compliance with Annual Budget. 7.10 The Manager agrees that it will obtain the prior approval of the Parent in accordance with clause 4.1 prior to incurring any Service Costs in any Operating Year which would, taking into account remaining expenditure in that Annual Budget, cause the aggregate Service Costs incurred in that Operating Year to exceed the Budget Limit for that Operating Year.
Compliance with Annual Budget. During each Fiscal Year, City, in the performance of its duties under this Agreement, shall comply with the approved Annual Budget of the Authority relating to the Water Enterprise for such Fiscal Year and shall not incur any material additional expense or change materially the manner of operation of the Water Enterprise, without the written approval of the Authority.
