Common use of Interim Budget Clause in Contracts

Interim Budget. API acknowledges that NCL is and shall --------------- continue to incur debts as a result of ongoing capital expenditures and operating costs for the Subject Companies which borrowings shall be repaid from the New Cash Capital. Prior to the execution of this Agreement, the Parties hereto shall have executed a written budget (the "Budget") with respect to the operating budget of API for the six (6) months following the execution of this Agreement. Under this Budget, it is shall be understood that NCL may borrow money to pay any and all expenses comprising ongoing capital expenditures and operating costs for the Subject Companies during that six month period, however, when and if API raises the New Cash Capital pursuant to Section 2.1 herein, NCL shall be entitled to reimbursement of all monies advanced to the Subject Companies plus interest in an amount equal to LIBOR plus 1.5% payable upon receipt of the New Cash Capital in the New Cash Account. Expenditures in excess of the Budget shall be subject to prior approval of the Board of New API. A copy of the Budget is attached hereto Schedule 4.2.