Common use of Budget Procedures Clause in Contracts

Budget Procedures. A. Grantee shall utilize the funding only for costs that are both allowable and approved. To utilize funds for an expense not documented on the HHSC-approved cost reimbursement budget, Grantee shall submit a written request to HHSC for approval prior to utilizing the funds for the expense. HHSC will provide a written Notice to Proceed (NTP) if the requested expense is approved. Grantee shall not use funds for such an expense until NTP is received from HHSC. B. If needed, Grantee may revise the HHSC-approved cost reimbursement budget. The following requirements apply to budget transfers across budget categories: 1. Transferring funds between budget categories, other than the “Equipment” and “Indirect Cost” categories, is allowable without requesting approval from HHSC, but only if the budget transfer(s) do not exceed ten percent (10%) of the total amount during the Project Period, alone or cumulatively. 2. For transfers between budget categories, other than the “Indirect Costs” or “Equipment” categories, that exceed ten percent (10%) of the total allotted amount during a Project Period, Grantee shall submit a timely written request for review and approval to the following email address: XXXXXxxxxXxxxxxxxx@xxx.xxxxx.xxx. If approved, HHSC will provide written correspondence documenting approval of the cost reimbursement budget revision. 3. Any budget revisions to the “Indirect Costs” and/or “Equipment” categories must be incorporated by an amendment to the Grant Agreement. Grantee shall timely submit a written request with justification for the budget revision to the following email address: XXXXXxxxxXxxxxxxxx@xxx.xxxxx.xxx. If Xxxxxxx’s request is approved, then HHSC will notify Grantee; however, Xxxxxxx’s budget revision is not authorized, and funds cannot be utilized until the amendment incorporating the revisions is executed. 4. After Grantee purchases approved equipment with HHSC funds, the equipment must be inventoried, maintained in working order, and appropriately secured.

Budget Procedures. A. Grantee shall utilize the funding only for costs that are both allowable and approved. To utilize funds for an expense not documented on the HHSC-approved cost reimbursement budget, Grantee shall submit a written request to HHSC for approval prior to utilizing the funds for the expense. HHSC will provide a written Notice to Proceed (NTP) if the requested expense is approved. Grantee shall not use funds for such an expense until NTP is received from HHSC. B. If needed, Grantee may revise the HHSC-approved cost reimbursement budget. The budget in accordance with the following requirements apply to budget transfers across budget categoriesrequirements: 1. Transferring funds Grantee may transfer between budget categories, other than the “not including ‘Indirect Costs’ or ‘Equipment” and “Indirect Cost” ’ categories, is allowable without requesting approval from HHSC, but only if the budget transfer(s) do not exceed up to and including ten percent (10%) cumulatively of the total budget period amount during the Project Period, alone or cumulativelywithout requesting approval from HHSC. 2. For transfers between budget categories, other than the “not including ‘Indirect Costs” ’ or “‘Equipment” ’ categories, that exceed exceeds ten percent (10%) cumulatively of the total allotted amount during a Project Periodbudget period amount, Grantee shall submit a timely written request to the HHSC Contract Representative for review and approval to the following email address: XXXXXxxxxXxxxxxxxx@xxx.xxxxx.xxxapproval. If approved, HHSC will provide written correspondence documenting approval of the cost reimbursement budget revision. 3. Any budget revisions to the “Indirect Costs” ‘Equipment’ and/or “Equipment” ‘Indirect’ cost categories must be incorporated by an amendment to the Grant AgreementContract amendment. Grantee shall timely submit to the HHSC Contract Representative a written request with justification for the budget revision to the following email address: XXXXXxxxxXxxxxxxxx@xxx.xxxxx.xxxrevision. If XxxxxxxGrantee’s request is approved, then HHSC will notify Grantee; however, Xxxxxxx’s budget revision is not authorized, and funds cannot be utilized until the amendment incorporating the revisions is executed. 4. After Grantee purchases approved equipment with HHSC System Agency funds, the equipment must be inventoried, maintained in working order, and appropriately secured.

Budget Procedures. A. Grantee shall utilize the funding only for costs that are both allowable and approved. To utilize funds for an expense not documented on the HHSC-approved cost reimbursement budget, Grantee shall submit a written request to HHSC for approval prior to utilizing the funds for the expense. HHSC will provide a written Notice to Proceed “(NTP”) if the requested expense is approved. Grantee shall not use funds for such an expense until the NTP is received from HHSC. B. If neededOnce Grantee purchases approved equipment with System Agency funds, Grantee may the equipment must be inventoried, maintained in working order, and appropriately secured during the Contract term. C. To transfer funds between categories and revise the HHSC-approved cost reimbursement budget. The , Grantee shall comply with the following requirements apply to budget transfers across budget categoriesrequirements: 1. Transferring For transfer(s) of funds between budget categories, other than the “Equipment” and “Indirect Cost” categories, is allowable without requesting approval from HHSC, but only if the budget transfer(s) do not exceed ten percent (10%) of the total amount during the Project Period, alone or cumulatively. 2. For transfers between budget categories, other than except the “Indirect Costs” or and “Equipment” categories, that exceed alone or cumulatively equal to or less than ten percent (10%) of the total allotted amount during a Project PeriodSFY, Grantee shall submit written notification to HHSC. 2. For transfer(s) between budget categories, except the “Indirect Costs” or “Equipment” categories, that alone or cumulatively exceeds ten percent (10%) of the total allotted amount during a SFY, Grantee shall submit a timely written request to the HHSC Contract Representative for review and approval to the following email address: XXXXXxxxxXxxxxxxxx@xxx.xxxxx.xxxapproval. If approved, HHSC will provide written correspondence documenting approval of the cost reimbursement budget revision. Revised funding allocation is not effective until HHSC approval is received. 3. Any budget revisions to the “Indirect Costs” and/or “Equipment” categories must be incorporated by an amendment to the Grant Agreement. Grantee shall timely submit to the HHSC Contract Representative a written request with justification for the budget revision to the following email address: XXXXXxxxxXxxxxxxxx@xxx.xxxxx.xxxrevision. If Xxxxxxx’s request is approved, then HHSC will notify Grantee; however, Xxxxxxx’s budget revision is not authorized, and funds cannot be utilized until the amendment incorporating the revisions is executed. 4. After Grantee purchases approved equipment with HHSC funds, the equipment must be inventoried, maintained in working order, and appropriately secured.

Budget Procedures. A. Grantee shall utilize the funding only for costs that are both allowable and approved. To utilize funds for an expense not documented on the HHSC-approved cost reimbursement budget, Grantee shall submit a written request to HHSC for approval prior to utilizing the funds for the expense. HHSC will provide a written Notice to Proceed (NTP) if the requested expense is approved. Grantee shall not use funds for such an expense until NTP is received from HHSC. B. If needed, Grantee may revise the HHSC-approved cost reimbursement budget. The budget in accordance with the following requirements apply to budget transfers across budget categoriesrequirements: 1. Transferring funds Grantee may transfer between budget categories, other than the “not including ‘Indirect Costs’ or ‘Equipment” and “Indirect Cost” ’ categories, is allowable without requesting approval from HHSC, but only if the budget transfer(s) do not exceed up to and including ten percent (10%) cumulatively of the total budget period amount during the Project Period, alone or cumulativelywithout requesting approval from HHSC. 2. For transfers between budget categories, other than the “not including ‘Indirect Costs” ’ or “‘Equipment” ’ categories, that exceed exceeds ten percent (10%) cumulatively of the total allotted amount during a Project Periodbudget period amount, Grantee shall submit a timely written request to the HHSC Contract Representative for review and approval to the following email address: XXXXXxxxxXxxxxxxxx@xxx.xxxxx.xxxapproval. If approved, HHSC will provide written correspondence documenting approval of the cost reimbursement budget revision. 3. Any budget revisions to the “Indirect Costs” ‘Equipment’ and/or “Equipment” ‘Indirect’ cost categories must be incorporated by an amendment to the Grant AgreementContract amendment. Grantee shall timely submit to the HHSC Contract Representative a written request with justification for the budget revision to the following email address: XXXXXxxxxXxxxxxxxx@xxx.xxxxx.xxxrevision. If Xxxxxxx’s request is approved, then HHSC will notify Grantee; however, Xxxxxxx’s budget revision is not authorized, and funds cannot be utilized until the amendment incorporating the revisions is executed. 4. After Grantee purchases approved equipment with HHSC System Agency funds, the equipment must be inventoried, maintained in working order, and appropriately secured.

Budget Procedures. A. Grantee shall utilize (a) The Administrative Agent and the funding only for costs that are both allowable and approvedRequired Lenders hereby approve the Budget attached hereto as Exhibit “ ”, covering the period through , 2003 (the “Initial IFCO Budget”). To utilize funds for an expense not documented Prior to 1:00 P.M. (Dallas, Texas time) on the HHSC-approved cost reimbursement budget, Grantee first Business Day of each calendar week hereafter the Borrower and Holdings shall submit an updated Budget (an “IFCO Budget”) to the Administrative Agent for approval, which IFCO Budget shall be identical to the then most recent Approved Budget (taking into account any variations thereto previously approved by the Administrative Agent and/or the Required Lenders in accordance with the provisions hereof), with respect to the first twelve weeks covered by such IFCO Budget unless the Administrative Agent has agreed in writing to a written variation therein and shall include new cash receipts and disbursements projections for the thirteenth week covered by such IFCO Budget. Contemporaneously with the submission of each IFCO Budget by the Borrower and Holdings to the Administrative Agent, the Borrower and Holdings shall also submit (i) to each of the Lenders, a copy of such IFCO Budget, with any variation(s) approved by the Administrative Agent with respect to the first twelve weeks covered thereby specifically noted, and (ii) to the Administrative Agent, an irrevocable request for advance and report, in form and detail reasonably acceptable to HHSC the Administrative Agent (a “Request for approval Advance”), requesting an advance under the Revolving Credit Commitment in a specified amount not to exceed the Weekly Budget Funding Deficiency Amount (as such term is hereinafter defined) reflected in the most recent Approved Budget, containing the weekly reporting information required by Section 1.6(a) hereof, specifying the Type of advance requested, specifying the Borrowing Date with respect to such requested advance (which Borrowing Date shall not be less than one (1) Business Day after the Business Day of receipt by the Administrative Agent of such Request for Advance with respect to any advances that will be Base Rate Loan(s) and not less than three (3) Business Days after the Business Day of receipt by the Administrative Agent of such Request for Advance with respect to any advances that will be LIBOR Loans), and specifying, with respect to any advances that will be LIBOR Loans, the initial Interest Period with respect thereto. Each borrowing under the Revolving Credit Commitments shall, in the case of LIBOR Loans, be in an amount equal to $5,000,000 or a whole multiple thereof. Notwithstanding anything to the contrary contained herein or in any of the other Loan Documents, it is expressly understood and agreed that the Borrower may not request or elect LIBOR Loans prior to utilizing January 1, 2004. If any applicable Request for Advance does not specify a Type of Revolving Credit Loan requested, then the funds requested Revolving Credit Loan shall be a Base Rate Loan. If any applicable Request for Advance with respect to a LIBOR Loan does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration. (b) The IFCO Budgets submitted by the Borrower and Holdings to the Administrative Agent and the Lenders, the Approved Budgets and the disbursements by Holdings and its Subsidiaries shall be subject to the following conditions, limitations and requirements: (i) the Borrower and Holdings may include a line item for contingency disbursements in the IFCO Budgets; provided, however, such budgeted contingency item(s) and the actual disbursements under the corresponding Approved Budget may not exceed $1,000,000 for any specific calendar week and the aggregate amount of such budgeted contingency item(s) and the actual aggregate amount of disbursements under the corresponding Approved Budget(s) shall never exceed $3,000,000 on a cumulative basis, in each case without the prior written approval of the Required Lenders; (ii) the Borrower and Holdings may include a reserve of up to $6,000,000 in cash and Cash Equivalents for the expense. HHSC will provide ROW IFCO Entities; (iii) the Borrower and Holdings may include a written Notice reserve of up to Proceed $2,000,000 in cash and Cash Equivalents for the North American IFCO Entities, at least 90% of which reserve shall, at all times, be maintained with Bank One, NA in the United States of America, in the possession of the US IFCO Entities; (NTPiv) if unless approved by the requested expense is approved. Grantee Required Lenders, the actual disbursements by Holdings and its Subsidiaries on a consolidated basis, on a rolling four-week basis, for salary, payroll and benefits shall not use funds exceed the projected amounts of such disbursements for such an expense until NTP is received from HHSCthe comparable four-week period under the applicable Approved Budget(s) by more than 5.0%; and (v) unless approved by the Required Lenders, the aggregate amount of all actual disbursements by Holdings and its Subsidiaries on a consolidated basis, on a rolling four-week basis, shall not exceed the projected amounts of all disbursements for the comparable four-week period under the applicable Approved Budget(s) by more than 2.0%. B. If needed(c) The Administrative Agent shall endeavor to, Grantee may revise within one (1) Business Day after its receipt of an IFCO Budget, review and analyze such IFCO Budget, discuss any questions and/or comments with respect to such IFCO Budget with the HHSC-approved cost reimbursement budget. The following requirements apply to budget transfers across budget categories: 1. Transferring funds between budget categories, other than the “Equipment” and “Indirect Cost” categories, is allowable without requesting approval from HHSC, but only if the budget transfer(s) do not exceed ten percent (10%applicable Responsible Officer(s) of the total amount during Borrower and/or Holdings, request from the Project PeriodBorrower and/or Holdings any clarification(s) and/or additional information in connection with such IFCO Budget as the Administrative Agent shall deem necessary and/or appropriate, alone review any such supplemental information received by the Administrative Agent from the Borrower and/or Holdings, and make a decision as to whether to approve such IFCO Budget; provided, however, that the failure of the Administrative Agent to accomplish the foregoing within such time period shall not (i) be deemed to constitute an approval of such IFCO Budget, or cumulatively(ii) create or impose any liability upon the Administrative Agent and/or any of the Lenders. An IFCO Budget shall be approved only when the Administrative Agent shall have notified the Borrower in writing of the Administrative Agent’s approval of such IFCO Budget. The Initial IFCO Budget and each IFCO Budget that is approved by the Administrative Agent, together with any modifications to such Budgets approved by the Administrative Agent and/or the Required Lenders in accordance with the terms hereof, are sometimes referred to herein individually as an “Approved Budget” and collectively as the “Approved Budgets”. 2(d) Notwithstanding the fact that the most recently submitted IFCO Budget may not have been approved by the Administrative Agent by 10:00A.M. (Dallas, Texas time) on the second Business Day of any calendar week in the case of requested Base Rate Loans or the fourth Business Day of any calendar week in the case of requested LIBOR Loans, the Administrative Agent may nonetheless notify the Borrower and the Lenders at such time that the Lenders are to make Revolving Credit Loans of the requested Type to the Borrower under the Revolving Credit Commitment in an aggregate amount equal to the amount requested by the Borrower and Holdings in the applicable Request for Advance for the then current calendar week, but in no event to exceed the “Weekly Budget Funding Deficiency Amount” (as such term is hereinafter defined) for the then-current calendar week under the most recent Approved Budget. Each Revolving Credit Lender shall make the amount of its pro rata share of each such borrowing available to the Administrative Agent for the account of the Borrower at the Funding Office prior to 12:00 Noon (Dallas, Texas time) on the Borrowing Date in funds immediately available to the Administrative Agent. Such borrowing will then be made available to the Borrower by the Administrative Agent crediting the account of the Borrower on the books of such office with the aggregate of the amounts made available to the Administrative Agent by the Revolving Credit Lenders and in like funds as received by the Administrative Agent. For transfers between budget categoriespurposes hereof, other than the term “Indirect CostsWeekly Budget Funding Deficiency Amount” or “Equipment” categoriesshall mean the amount, that exceed ten percent if any, by which (10%i) the aggregate amount of the total allotted budgeted disbursements of Holdings and its Subsidiaries on a consolidated basis for a specific calendar week, as reflected in the then most-recent Approved Budget, exceeds (ii) the sum of (x) the aggregate actual amount during a Project Periodof cash and Cash Equivalents of the North American IFCO Entities in excess of $2,000,000 as of the end of the calendar week immediately preceding the calendar week for which such calculation is being made, Grantee shall submit a timely written request plus (y) the aggregate actual amount of cash and Cash Equivalents of the ROW IFCO Entities in excess of the Maximum ROW IFCO Cash and Cash Equivalents as of the end of the calendar week immediately preceding the calendar week for review and approval which such calculation is being made. Notwithstanding anything to the following email address: XXXXXxxxxXxxxxxxxx@xxx.xxxxx.xxxcontrary contained herein or in any of the other Loan Documents, the Administrative Agent and the Lenders shall never be required to fund any Weekly Budget Funding Deficiency Amount or make any other loan or advance to, or for the benefit of, the Borrower except to the extent of availability under the Revolving Credit Facility, or if, after taking into account such funding, advance or loan, any Default and/or Event of Default would exist under the Credit Agreement or any of the other Loan Documents. If approved, HHSC will provide written correspondence documenting The funding by the Lenders of any such Weekly Budget Funding Deficiency Amount(s) shall not be deemed to constitute an approval of the cost reimbursement budget revisionany unapproved Budget. 3. Any budget revisions to the “Indirect Costs” and/or “Equipment” categories must be incorporated by an amendment to the Grant Agreement. Grantee shall timely submit a written request with justification for the budget revision to the following email address: XXXXXxxxxXxxxxxxxx@xxx.xxxxx.xxx. If Xxxxxxx’s request is approved, then HHSC will notify Grantee; however, Xxxxxxx’s budget revision is not authorized, and funds cannot be utilized until the amendment incorporating the revisions is executed. 4. After Grantee purchases approved equipment with HHSC funds, the equipment must be inventoried, maintained in working order, and appropriately secured.