Operation in Accordance with Approved Budgets. The Parties acknowledge and agree that Facility operating results (e.g., Facility attendance, revenues, operating expense, net income and cash flows) are subject to significant variance within any budgeted Fiscal Year and that no draft budget or Approved Budget can be expected to accurately predict such variances. Consequently, the Parties understand that actual interim operating results may vary from the Approved Budget. The Manager shall have the authority to make those expenditures that have been approved in the Approved Budget and which do not exceed the Approved Budget by more than five percent (5%) in the aggregate with respect to any Facility; provided that, notwithstanding the foregoing, the Manager may reasonably exceed the Approved Budget and make additional expenditures as Company Expenses for (a) taxes, utility charges and other items not within the Manager’s reasonable control, and (b) increases in contract services, personnel and other costs, including but not limited to film rentals, food and beverage costs, game and retail, and salaries and wages (the expenses listed in (a) and (b), the “Excluded Expenditures”), to the extent required to maintain the same level of services for the attendance volumes anticipated at a Facility, if the costs of such items have increased above the Approved Budget. If a condition of an emergency nature should exist which precludes consultation with and approval by the Company and requires that immediate repairs be made for the preservation and protection of the Facility or to protect the safety of the Facility employees, customers or other invitees, however, the Manager shall be authorized to take all actions and to make the necessary expenditure to repair and correct such condition, regardless of whether any provision has been made in the Approved Budget for such expenditure. Cash Expenditures made by the Manager in connection with any such emergency expenditure shall be paid as a Company Expense. Notwithstanding the foregoing, the Manager shall use commercially reasonable efforts to minimize expenditures not in the Approved Budget regardless of the Company’s pre‑approval of such expenditure. The Manager shall use commercially reasonable efforts to ensure that the actual costs of maintaining and operating a Facility shall not exceed the Approved Budget by more than five percent (5%) with respect to any Facility. All expenses shall be charged to the proper account in accordance with the Approved Budget. Expenses...
Operation in Accordance with Approved Budgets. The Parties acknowledge and agree that theatre operating results are subject to significant variance within a Fiscal Year and that no Approved Budget can be expected to accurately predict all such variances. Consequently, the Parties understand that actual interim operating results may vary from the Approved Budget. If AMC determines that any such interim variances are reflective of expected operating results for the remainder of the Fiscal Year and that such variances will result in a category or line item exceeding (in the case of expense) or falling below (in the case of revenue) that provided in the Approved Budget, including any contingency, for the entire Fiscal Year by more than twenty percent (20%), then AMC shall notify Owner and request that the Approved Budget for the Fiscal Year be revised in accordance with preceding section. Owner shall have the right, in its sole discretion, to approve any such revisions to the Approved Budget.
