SHOW BY MONTH AND QUARTER AND FOR THE YEAR AS
A WHOLE IN THE DEGREE OF DETAIL SPECIFIED BY THE UNIFORM SYSTEM AND GAAP FOR
MONTHLY STATEMENTS, AND IN ACCORDANCE WITH THE DETAIL LEVEL OF MONTHLY FINANCIAL
STATEMENTS, THE FOLLOWING:
(A)
LESSEE'S REASONABLE ESTIMATE OF GROSS
REVENUES (INCLUDING ROOM RATES AND HOTEL REVENUES) FOR THE FORTHCOMING LEASE
YEAR ITEMIZED ON SCHEDULES ON A MONTHLY AND QUARTERLY BASIS AS APPROVED BY
LESSOR AND LESSEE, TOGETHER WITH THE ASSUMPTIONS, IN NARRATIVE FORM, FORMING THE
BASIS OF SUCH SCHEDULES.
(B)
AN ESTIMATE OF ANY AMOUNTS LESSOR WILL BE
REQUESTED TO PROVIDE FOR CAPITAL IMPROVEMENTS DURING THE CURRENT AND THE NEXT
THREE (3) LEASE YEARS, SUBJECT TO THE LIMITATIONS SET FORTH IN ARTICLE XXXV.
(C)
A CASH FLOW PROJECTION.
(D)
A NARRATIVE DESCRIPTION OF THE PROGRAM FOR
MARKETING AND MANAGING THE FACILITY FOR THE FORTHCOMING LEASE YEAR, INCLUDING,
AMONG OTHER THINGS, DETAILS AS TO COMPETITOR PERFORMANCE, DEMAND ANALYSIS,
ESTIMATED MARKET PENETRATION BY MARKET SEGMENT, TARGET ACCOUNTS, MARKETING AND
ADVERTISING BUDGETS, CHANGES IN PERSONNEL POLICIES, STAFFING LEVELS, MAJOR
EVENTS PLANS, FRANCHISE ISSUES AND OTHER MATTERS AFFECTING THE PERFORMANCE AND
OPERATION OF THE FACILITY, AND CONTAINING A DETAILED BUDGET ITEMIZATION OF
PROPOSED EXPENDITURES BY CATEGORY AND THE ASSUMPTIONS, IN NARRATIVE FORM,
FORMING THE BASIS OF SUCH BUDGET ITEMIZATION.
(E)
LESSEE'S REASONABLE ESTIMATE FOR EACH MONTH
OF THE LEASE YEAR OF PERCENTAGE RENT, INCLUDING HOTEL REVENUES, FOOD SALES,
BEVERAGE SALES AND OTHER INCOME.
13
(F)
A DESCRIPTION OF THE STATUS OF ANY
NEGOTIATIONS RELATING TO A COLLECTIVE BARGAINING AGREEMENT, IF ANY, AFFECTING
FACILITY EMPLOYEES.
(G)
A DESCRIPTION OF THE CURRENT LEGAL STATUS OF
PENDING OR THREATENED SUITS, ACTIONS, PROCEEDINGS, INQUIRIES OR INVESTIGATIONS
CONCERNING THE FACILITY.
(H)
STATISTICAL INFORMATION FOR THE HOTEL, SUCH
AS AVERAGE DAILY RATE ("ADR"), REVENUE PER AVAILABLE ROOM ("REVPAR") AND
OCCUPANCY.
(I)
CAPITAL BUDGET, LISTING AMOUNTS BY
PROJECT AND ESTIMATED EXPENDITURE PERIOD (I.E. FIRST QUARTER, SECOND QUARTER,
THIRD QUARTER OR FOURTH QUARTER).
(J)
ANNUAL WORKING CAPITAL POSITION.
(K)
UPON THE WRITTEN REQUEST OF LESSOR, ANY
OTHER MATTER REASONABLY REQUIRED BY LESSOR FOR INCLUSION IN THE ANNUAL BUDGET.
Lessor shall have thirty (30) days after the date on which it receives the
Annual Budget to review, approve, disapprove or change the entries and
information appearing in the Annual Budget (other than the Capital Budget).
If
the parties are not able to reach agreement on the Annual Budget for any Lease
Year during Lessor's thirty (30) day review period, the parties shall attempt in
good faith during the subsequent thirty (30) day period to resolve any disputes,
which attempt shall include, if requested by either party, at least one
(1) meeting of executive level officers of Lessor and Lessee.
In the event the
parties are still not able to reach agreement on the Annual Budget for any
particular Lease Year after complying with the foregoing requirements of this
Section 4.7, the parties shall adopt such portions of the Operating Budget and
the Capital Budget as they may have agreed upon, and any matters not agreed