Compliance with Project Budget. Operator shall use all reasonable efforts to act in accordance with the Project Budget (as modified by any subsequent changes agreed between Owner and Operator) for the corresponding Operating Year. However, it is understood that each Project Budget is an estimate only and that inflation, currency fluctuation, general market conditions, changes in business plans and strategies and unforeseen circumstances may make adherence to the Project Budget impracticable, and Operator shall be entitled to depart from it due to any such circumstances. Operator shall promptly notify and consult with Owner regarding any substantial change from the Project Budget, and to make any necessary adjustments to the Project Budget as Owner and Operator shall agree in light of unforeseen circumstances. Furthermore, Owner acknowledges and agrees as follows:
(a) With respect to the Condo-Hotel, certain expenses provided for in the Project Budget for any Operating Year will vary based on the occupancy and use of the Condo Hotel and, accordingly, to the extent that occupancy and use of the Condo-Hotel for any Operating Year exceeds the occupancy and use projected in the approved Project Budget for such Operating Year, such approved Project Budget shall be deemed to include corresponding increases in such variable expenses; provided, however, Operator shall use commercially reasonable efforts to minimize Operating Expenses to the extent that occupancy and use of the Condo-Hotel for any Operating Year is less than the occupancy and use projected in the approved Project Budget for such Operating Year;
(b) To the extent allowed under the Condominium Documents, Operator shall have the right to pay from the Operating Account all Uncontrollable Expenses; provided, however, Operator hereby covenants and agrees to use commercially reasonable efforts throughout the Term to manage, whenever reasonably possible, the Uncontrollable Expenses related to the Condo-Hotel and the operation thereof (including, by way of example, contesting, when reasonable appropriate, the amount and/or imposition of taxes);
(c) If any expenditures are required on an emergency basis to avoid damage to the Condo-Hotel and/or injury to persons or property, Operator may make such expenditures; provided, however, in connection with any expenditure required on an emergency basis that was not specifically contemplated in the Project Budget, Operator shall (i) use commercially reasonable efforts to notify Owner prior to the ti...
Compliance with Project Budget. The proceeds of the NPI Borrowing shall be used for the NPI Acquisition and the proceeds of each other Borrowing shall be used to pay Approved Project Costs due and payable within forty-five (45) days of the date of such Borrowing.
Compliance with Project Budget. Tenant must have provided Landlord with an analysis of each Tenant Improvement Draw compared to the Project Budget demonstrating that these cost to complete the remaining Leasehold Renovation Work does not exceed remaining Leasehold Improvement Funds.
Compliance with Project Budget. All Loan advances under the Note shall be made in accordance with the Agreement and in amounts set forth in the Project Budget. Material deviations from the Project Budget must be approved in advance in writing by Lender. If Lender determines at any time, in its sole judgment, that the direct construction costs, plus the cost of the improvements and the estimated non-construction costs, exceed the Project Cost set forth in the Project Budget, then at the request of Lender, Borrower shall explain to Lender how the overage will be paid and will immediately deposit such funds into the Construction Account. Any such deposit so required shall be made prior to any additional advance of Loan proceeds.
Compliance with Project Budget. Notwithstanding any language in this Agreement seemingly to the contrary, all disbursements under this Agreement and the Note shall be made in accordance with the Project Budget. Deviations from the Project Budget must be approved in advance in writing by Lender, which approval shall not be unreasonably withheld. The Project Budget will be monitored monthly on a category-by-category basis. If Project Costs in an individual category exceed the amount budgeted therefore (plus ten percent (10%) thereof as contained in the contingency line item) in the Project Budget, then Borrower shall pay from sources other than the Loan the entire excess, unless a budgetary savings in the same or greater amount is realized in a different category as reasonably determined by Lender.
Compliance with Project Budget. All disbursements under this Agreement and the Note shall be made in accordance with the Project Budget. Material deviations from the Project Budget must be approved in advance in writing by Lender. If Lender determines, in its sole judgment, at any time while the Loan is outstanding, that the direct construction costs, plus the cost of the improvements and the estimated non- construction costs, exceed the amount of the Loan, then at the request of Lender, Borrower shall explain to Lender how the overage will be paid and will make arrangement for such payment in a manner satisfactory to Lender, before additional advances are made to Borrower. Such arrangements may include an additional cash investment by Borrower in the Construction Project. If an investment or deposits by the Borrower are required, such investment or deposits shall be made prior to any advance or additional advance by Lender of Loan proceeds.
