Operating Budget and Business Plan Clause Samples

Operating Budget and Business Plan. Not later than the first day of the calendar month that precedes the first calendar month of a fiscal year, Borrower shall provide Lender with an operating budget and business plan for the Property for the immediately following fiscal year. Without limiting the terms, provisions and limitations contained in this Note and in the other Loan Documents (including, without limitation, ▇▇▇▇▇▇'s right to approve disbursements to Borrower from the FF&E Reserve in accordance with the Approved FF&E Budget), the budgets and business plans provided to Lender under this paragraph are for ▇▇▇▇▇▇'s information only and are not subject to ▇▇▇▇▇▇'s prior approval (nor shall any changes thereto be subject to ▇▇▇▇▇▇'s prior approval). Subject to the terms, provisions and limitations contained in the Loan Documents, Borrower covenants and agrees to operate the Property substantially in accordance with said operating budgets and business plans.

Operating Budget and Business Plan. (a) The Initial Operating Budget is attached hereto as Exhibit F and shall be the initial Approved Operating Budget without further approval by the Board. Except as provided in Section 5.6, the Board shall approve, by Unanimous Board Approval each subsequent Operating Budget (or any material change thereto) for the relevant Fiscal Year (the “Approved Operating Budget”); provided, however, that any amendment to the then-existing Operating Budget pursuant to Section 4.4 of the Operating Agreement to reflect an Approved Required Upgrade shall not require such Unanimous Board Approval. In the event that no Operating Budget for any Fiscal Year is approved prior to the first day of such Fiscal Year, Default Operating Budget shall be adopted, and shall continue in effect with such modifications as are necessary to cause such prior Approved Operating Budget to comply with the Business Plan until the approval of a new Operating Budget in accordance herewith or otherwise in accordance with the Operating Agreement. (b) Each subsequent Business Plan shall be prepared every five (5) years, and the Board may approve the modification or replacement of the Business Plan subject to obtaining Unanimous Board Approval.

Operating Budget and Business Plan. (a) For the period beginning on the Closing Date and ending on December 31, 2011, the Company shall operate in accordance with the current Operating Budget (in the form annexed hereto as Exhibit D) prepared by the Debtors and a Business Plan to be mutually agreed by the Members. Thereafter, the Operating Budget and Business Plan shall be prepared and submitted annually by the Managing Member, the Chatham Ink I Member, the Chatham Ink III Member, the Chatham Ink IV Member, the Chatham Ink V Member, the Chatham Ink VI Member or the Chatham Ink VII Member (or the Hotel Manager at the direction of the Managing Member) to the Initial Members for approval at least thirty (30) calendar days prior to the end of each fiscal year with respect to the following fiscal year which shall, in the case of the Operating Budget, set forth, inter alia, all anticipated revenues, operating expenses, capital expenditures, renovation budgets, renovation schedules and reserves for the Company, Ink I, Ink III, Ink IV, Ink V, Ink VI and Ink VII during such period, and, in the case of the Business Plan shall set forth, inter alia, the Company’s, Ink I’s, Ink III’s, Ink IV’s, Ink V’s, Ink VI’s and Ink VII’s strategy for the leasing, marketing and operation of each of the Properties and the properties owned by Ink I, Ink IV, Ink V, Ink VI and Ink VII and an estimate of the amount, timing and reason for all anticipated Capital Contributions from the Members during such period; provided, that if the Managing Member should fail to timely prepare and submit in proposed form any such Operating Budget and Business Plan, Cerberus, the Cerberus Ink I Member, the Cerberus Ink III Member, the Cerberus Ink IV Member, the Cerberus Ink V Member, the Cerberus Ink VI Member and/or the Cerberus Ink VII Member shall be authorized to prepare such Operating Budget and Business Plan for the approval of the Initial Members. Whenever the Managing Member determines that revisions to the then-approved Operating Budget or Business Plan would be in the best interests of the Company, the Managing Member may submit such proposed revisions to such Operating Budget and/or Business Plan to Cerberus for its review; provided, however, that all amendments and modifications to the then-approved Operating Budget or Business Plan shall require the approval of Cerberus, which approval may be granted or withheld by Cerberus in its sole and absolute discretion. (b) Notwithstanding Section 3.5(a), in the event that the Initia...

Operating Budget and Business Plan. Borrower shall furnish to Agent and each Lender, on or prior to the Closing Date and, for each fiscal year of Borrower thereafter, prior to the commencement of such fiscal year, month by month projected operating budgets, derived from the business plan approved by the board of directors of the Borrower for the next three fiscal years, including income statements, balance sheets and cash flow statements of and for the Credit Parties for such upcoming fiscal year (including an income statement, statement of cash flows and a balance sheet as at the end of each month), all on consolidated and consolidating business segment basis, in each case prepared in accordance with GAAP consistently applied with prior periods (subject to lack of footnotes and year-end adjustments).

Operating Budget and Business Plan. (a) The Company will deliver to the Facility Agent as soon as it is available and in any event not later than 31st March of the annual Accounting Period to which it relates, an Annual Operating Budget for the Group for that Accounting Period together with a Business Plan. (b) The Annual Operating Budget must be: (i) prepared in the same manner as and show the information provided for in the Original Annual Operating Budget; (ii) prepared on a basis consistent with the Accounting Principles as used in preparing the Original Financial Statements of the Company; and (iii) approved by the board of directors of the Company. (c) The Business Plan must be: (i) prepared in the same manner as, use substantially the same method of calculation as and show the information provided for in the Original Business Plan respectively; (ii) prepared on a basis consistent with the Accounting Principles as used in preparing the Original Financial Statements of the Company; and (iii) approved by the board of directors of the Company. (d) The Annual Operating Budget and the Business Plan must be accompanied by an output schedule demonstrating compliance by the Company with its financial covenants under Clause 18 (Financial covenants) until the Final Maturity Date (e) If the Company amends the Annual Operating Budget or the Business Plan referred to above, the Company shall within 14 days of the amendment being approved by the board of directors of the Company deliver to the Facility Agent, in sufficient copies for each of the Lenders, such amended Annual Operating Budget or Business Plan together with a written explanation of the main amendments (and the effect thereof) to that Annual Operating Budget or Business Plan, as the case may be.