Compliance with Capital Renewals Budget Sample Clauses

Compliance with Capital Renewals Budget. Manager shall at all times comply with the applicable Capital Renewals Budget, and shall not deviate in any substantial respect therefrom; provided that the Capital Renewals Budget includes appropriate amounts for contingencies. Notwithstanding the foregoing, Manager shall be entitled to make additional expenditures not authorized under the then applicable Capital Renewals Budget in case of emergencies arising out of fire or any other like or unlike casualty, or in order to comply with any applicable Legal Requirements. If Manager at any time determines that expenditures are required to be made pursuant to Paragraphs 4.02.4(c) or 4.02.4(d), Manager may make such expenditures out of the Capital Renewals Reserve; provided further that Manager may reallocate up to five percent (5%) of the Capital Renewals Reserve during each Operating Year to pay any expenses for Capital Renewals that Manager may reasonably determine to be appropriate to maintain the Hotel in a manner consistent with the Operating Manual, regardless of whether such Embassy Suites __________ Management Agreement Capital Renewals were specifically included in the Capital Renewals Budget for such Operating Year. Subject to Subsection 4.02.4, in connection with any expenditure from the Capital Renewals Reserve that was not specifically contemplated in the Capital Renewals Budget, Manager shall attempt to notify Owner at least thirty (30) days prior to the time that the expenditures in question are made. Subject to the availability of sufficient amounts in the Capital Renewals Reserve or otherwise provided by Owner, Manager shall arrange for the completion of all Capital Renewals approved by Owner in the Capital Renewals Budget for any Operating Year or otherwise. The lack of sufficient monies in the Capital Renewals Reserve shall not limit Owner's obligations to make Capital Renewals required to maintain the Hotel in a manner consistent with the Operating Manual or to provide funds sufficient (in addition to the amounts in the Capital Renewals Reserve) to enable Manager to complete and pay for all Capital Renewals provided for in an approved Capital Renewals Budget or otherwise approved by Owner or authorized under the terms of this Agreement.