Common use of Approval of Budgets Clause in Contracts

Approval of Budgets. The Operating Budgets and the Capital Renewals Budget shall be subject to the approval of Lessee, which shall not be unreasonably withheld or delayed, it being contemplated that each such Operating Budgets and Capital Renewals Budget shall be agreed upon by the parties within thirty (30) days after the submission of the same by Manager to Lessee. If Lessee shall fail to approve any Operating Budgets or Capital Renewals Budget within thirty (30) days after its submittal by Manager, or to submit its written objections thereof to Manager within such period, in case of a dispute with regard to any Operating Budgets, then pending the settlement thereof, or until such dispute is resolved in accordance with Section 12.04, Manager shall be entitled to continue to operate the Hotel in accordance with the standards set forth herein and shall be entitled to make expenditures which are consistent with the Operating Budget for the immediately preceding Operating Year; provided that, subject to the standards of performance described in Subsection 4.02.4 below, the maximum approved amount of such expenditures shall be equal to (a) the aggregate of all items set forth in the Operating Budget which are not disputed by Lessee, plus (b) with respect to all items in the Operating Budget which are disputed or objected to by Lessee, the amount allocated to such item(s) in the Operating Budget for the immediately preceding Operating Year increased by the greater of (i) five percent (5%), or (ii) the difference between the Consumer Price Index (All Cities - All Items) (1982-84 = 100) (the "CPI"), on January 1 of the Operating Year immediately preceding the Operating Year in question and the CPI on January 1 of the Operating Year in question.

Approval of Budgets. The Operating Budgets Budget and the Capital Renewals Budget shall be subject to the approval of Lessee, which shall not be unreasonably withheld or delayedOwner, it being contemplated that each such Operating Budgets Budget and Capital Renewals Budget shall be agreed upon by the parties Owner and Manager within thirty (30) days after the submission of the same by Manager to LesseeOwner. If Lessee Owner shall fail to approve any Operating Budgets Budget or Capital Renewals Budget within thirty (30) days after its submittal by Manager, or to submit its written objections thereof to Manager within such period, in then Owner shall be deemed to have approved the same. In case of a dispute with regard to any Operating BudgetsBudget, then pending the settlement thereof, or until such dispute is resolved in accordance with Section 12.04, Manager shall be entitled to continue to operate the Hotel in accordance with the standards set forth herein and shall be entitled to make expenditures which are contemplated by and consistent with the Operating Budget proposed by Manager for the immediately preceding such Operating Year; provided that, subject to the standards of performance described in Subsection 4.02.4 below, the maximum approved amount of such expenditures shall be equal to (a) the aggregate of all items set forth in the Operating Budget which are not disputed by LesseeOwner, plus (b) with respect to all items in the Operating Budget which are disputed or objected to by LesseeOwner, the amount allocated to such item(s) in the Operating Budget for the immediately preceding Operating Year increased by the greater of (i) five percent (5%), or (ii) the difference between the Consumer Price Index (All Cities - All Items) (1982-84 = 100) (the "CPI"), on January 1 of the Operating Year immediately preceding the Operating Year in question and the CPI on January 1 of the Operating Year in question.. In case of a dispute with regard to any Capital Renewals Budget, then, pending the settlement thereof, or until such dispute is resolved in accordance with Section 12.04, Manager shall be entitled to make expenditures for Capital Renewals during the then current Operating Year (a) as contemplated by the Capital Renewals Budget proposed by Manager for all items which are not disputed by Owner plus (b) up to such additional amount, if any, by which the aggregate amount of such items not disputed by Owner is less than half the percentage of the Gross Revenues of the Hotel applicable to the Operating Year then in effect which are to be deposited in the Capital Renewals Reserve. Manager shall act reasonably and exercise prudent business judgment in preparing and submitting to Owner the Operating Budget and the Capital Renewals Budget. Owner shall act reasonably and exercise prudent business judgment in approving or disapproving all or any portion of the Operating Budget and the Capital Renewals Budget and act in a manner that shall permit maintenance and operation of the Hotel in compliance with the Operating Manual. Embassy Suites __________ Management Agreement

Approval of Budgets. The Operating Budgets and the Capital Renewals Budget shall be subject to the approval of LesseeOwner, which shall not be unreasonably withheld or delayed, it being contemplated that each such Operating Budgets and Capital Renewals Budget shall be agreed upon by the parties within thirty (30) days after the submission of the same by Manager to LesseeOwner. If Lessee Owner shall fail to approve any Operating Budgets or Capital Renewals Budget within thirty (30) days after its submittal by Manager, or to submit its written objections thereof to Manager within such period, in case of a dispute with regard to any Operating Budgets, then pending the settlement thereof, or until such dispute is resolved in accordance with Section 12.04, Manager shall be entitled to continue to operate the Hotel in accordance with the standards set forth herein and shall be entitled to make expenditures which are consistent with the Operating Budget for the immediately preceding Operating Year; provided that, subject to the standards of performance described in Subsection 4.02.4 below, the maximum approved amount of such expenditures shall be equal to (a) the aggregate of all items set forth in the Operating Budget which are not disputed by LesseeOwner, plus (b) with respect to all items in the Operating Budget which are disputed or objected to by LesseeOwner, the amount allocated to such item(s) in the Operating Budget for the immediately preceding Operating Year increased by the greater of (i) five percent (5%), or (ii) the difference between the Consumer Price Index (All Cities - All Items) (1982-84 = 100) (the "CPI"), on January 1 of the Operating Year immediately preceding the Operating Year in question and the CPI on January 1 of the Operating Year in question.