Interim Budgets Sample Clauses
The Interim Budgets clause establishes the process for creating and approving temporary budgets to cover project expenses during periods when a final or annual budget has not yet been agreed upon. Typically, this clause allows for the continuation of essential operations by permitting spending based on a previously approved budget or a set percentage of it until a new budget is finalized. Its core practical function is to prevent disruptions in project activities due to budgetary delays, ensuring continuity and financial stability while formal budget negotiations are ongoing.
Interim Budgets. For any period during which no Budget has been duly adopted by the Executive Committee, the Executive Committee shall be deemed to have approved, and, without any further act of any Partner being required, the Partners shall be bound by a Budget consisting of the following items:
(a) for the calendar year during which no Budget has been adopted, Operations and expenditures for items other than capital expenditures of a type, to the extent and in amounts equal to the amounts approved in the last Budget duly approved by the Executive Committee without regard to this Section;
(b) such Operations and operating or capital expenditure items as the Executive Committee shall unanimously approve; and
(c) such Operations and additional operating or capital expenditures in such amounts and at such times as may be necessary in the reasonable good faith judgment of any Major Partner in order to maintain the Operations or to avoid any default by the Partnership or any Partner under any contract or agreement by which they are bound.
Interim Budgets. Pending resolution by the Executive Officers of any referred dispute under Section 3.11(b) and subject to the terms of Section 19.2, the Executive Officers shall negotiate in good faith in an effort to agree to appropriate interim budgets and plans to allow the Parties to continue to use Commercially Reasonable Efforts to Develop, Manufacture and Commercialize the Licensed Products in the Field in the Territory pursuant to this Agreement. The most recent Committee approved Plan(s) shall be extended pending approval by the Executive Officers of the interim budget(s) and Plan(s) referred to in this Section 3.11(c).