Common use of Yearly Budgets Clause in Contracts

Yearly Budgets. (a) Not less than sixty (60) days prior to the first day of each Fiscal Year after the Effective Date, Manager shall submit to Owner for Owner’s approval a proposed Yearly Budget including a proposed Capital Replacements Budget for the ensuing full or partial Fiscal Year, as the case may be. Owner’s approval of the Yearly Budget and the Capital Replacements Budget shall not be unreasonably withheld or delayed and shall be deemed given unless a specific written disapproval thereof (as provided below) is delivered by Owner to Manager within thirty (30) days after submission of such budgets. Manager will, on a monthly basis, issue periodic forecasts of operating performance to Owner reflecting any significant unanticipated changes, variables or events or describing significant additional unanticipated items of income or expense. Manager will provide Owner with the material data and information utilized in preparing the Yearly Budget and the Capital Replacements Budget or any revisions thereof. Manager will not be deemed to have made any guaranty, warranty or representation whatsoever in connection with the Yearly Budget and the Capital Replacements Budget, and Owner acknowledges that the Yearly Budget, including the Capital Replacements Budget are intended only as reasonable estimates of the matters they describe. In administering the Yearly Budget, Manager may, without Owner’s approval, reallocate, without restriction, budget line items within the same general divisional classification of budget items shown in the Yearly Budget (e.g., rooms, food and other similar or dissimilar categories, as determined in accordance with the Accounting Principles, and shall not mean the sub-categories such as, for example, linen replacement and uniforms, appearing under a general divisional category) so long as such reallocation does not materially and adversely affect the purposes for which the original budget line items were intended and so long as Manager provides notice of such reallocation to Owner. Manager is always authorized to make expenditures for taxes, insurance and utilities to reflect actual costs thereof. With respect to other items, in the event that Manager encounters circumstances which require unbudgeted and unanticipated expenditures not foreseen at the time of preparation of the Yearly Budget and which Manager deems reasonably necessary, Manager may submit such matters for Owner’s approval, which approval will not be unreasonably withheld or delayed. Expenditures required to complete, or correct deficiencies, in construction, reconstruction or refurbishment of the Hotel, if undertaken, are Ownership Costs and will not be reflected in the Yearly Budget or the Capital Replacements Budget or paid from the Reserve Account.

Yearly Budgets. (a) Not less than sixty (60) days prior to the first day of each Fiscal Year after the Effective Date2003 Fiscal Year, Manager shall submit to Owner for Owner’s approval a proposed Yearly Budget for each Hotel including a proposed Capital Replacements Budget for each Hotel for the ensuing full or partial Fiscal Year, as the case may be. Notwithstanding the foregoing, (i) Manager shall not be obligated to prepare or deliver Yearly Budgets for the Expansion Hotels for the 2003 and 2004 Fiscal Years; (ii) Manager shall deliver to Owner, each month until January, 2005, Manager’s then most current financial forecast for the Expansion Hotels for the next twelve (12) months, which forecasts shall be in Manager’s customary form; and (iii) on or before December 15, 2003, Manager shall provide to Owner a month-by-month schedule of the draws from the Reserve Account which Manager anticipates to make during the 2004 and 2005 Fiscal Years in connection with renovating the Expansion Hotels; and (iv) Manager shall periodically provide Owner with updates to such schedule consistent with good management and construction practices. Owner’s approval of the Yearly Budget Budgets and the Capital Replacements Budget Budgets shall not be unreasonably withheld or delayed and shall be deemed given unless delayed. If Owner fails to disapprove of a specific written disapproval thereof (as provided below) is delivered by Owner to Manager proposed Yearly Budget within thirty (30) days after the submission of thereof to Owner for its approval, the same shall be deemed approved. Together with each such budgetsCapital Replacements Budget, Manager shall provide to Owner a proposed three-year capital forecast for such Hotel for Owner’s review and approval. Manager will, on a monthly basisfrom time to time not less often than quarterly, issue periodic forecasts of operating performance to Owner reflecting any significant unanticipated changes, variables or events or describing significant additional unanticipated items of income or expense. Manager will provide Owner with the material data and information utilized in preparing the Yearly Budget Budgets and the Capital Replacements Budget Budgets or any revisions thereof. Manager will not be deemed to have made any guaranty, warranty or representation whatsoever in connection with the Yearly Budget Budgets and the Capital Replacements BudgetBudgets, and Owner acknowledges except that the proposed Yearly BudgetBudgets, including the Capital Replacements Budget are intended only as reasonable Budgets, reflect Manager’s best professional estimates of the matters they describe. In administering Manager shall use its reasonable efforts, subject to the Yearly BudgetOperating Standards, Manager may, without Owner’s approval, reallocate, without restriction, budget line items within to operate and manage the same general divisional classification of budget items shown in the Yearly Budget (e.g., rooms, food and other similar or dissimilar categories, as determined Hotels in accordance with the Accounting Principles, and shall not mean the sub-categories such as, for example, linen replacement and uniforms, appearing under a general divisional category) so long as such reallocation does not materially and adversely affect the purposes for which the original budget line items were intended and so long as Manager provides notice of such reallocation to Ownertheir Yearly Budgets. Manager is always authorized to make expenditures for taxes, insurance and utilities to reflect actual costs thereof. With respect to other items, in the event that Manager encounters circumstances which require unbudgeted and unanticipated expenditures not foreseen at the time of preparation of the The Yearly Budget and which for the Parsippany Hotel for the 2006 Fiscal Year shall be those most recently delivered by Manager deems reasonably necessary, Manager may submit such matters for Owner’s approval, which approval will not be unreasonably withheld to Owner on or delayed. Expenditures required to complete, or correct deficiencies, in construction, reconstruction or refurbishment of before the Hotel, if undertaken, are Ownership Costs and will not be reflected in the Yearly Budget or the Capital Replacements Budget or paid from the Reserve AccountParsippany Hotel Effective Date.