Common use of Budget Updates and Approval Clause in Contracts

Budget Updates and Approval. The Manager shall deliver for --------------------------- review and approval by the Member and by AI pursuant to the Option Agreement a master schedule setting forth the most current Project Budget for the current Fiscal Year and the next Fiscal Year (which shall include a schedule for completion of the various components of the Project), on or before thirty (30) days after the Closing. Such Project Budget shall include Cash Flow to the Company at least equal to the net Cash Flow shown in the Final Proforma. Thereafter, the Manager shall provide to the Member and to AI within two (2) weeks after the end of each month monthly historical financial statements on an accrual basis which shall include balance sheet, income statement and statement of cash flows. The Manager shall update the Project Budget annually for each succeeding Fiscal Year. After the first Project Budget, an updated Project Budget shall be prepared no later than November 30th of each Fiscal Year for the next succeeding Fiscal Year, if necessary. The Manager shall provide a copy of the Project Budget, and each update thereof, to the Member. The Company shall spend no amount, and shall incur no obligation, which exceeds the amounts provided in the approved Project Budget, as updated and approved by the Member (and by AI as required under the Option Agreement); provided, however, that the Project Budget shall include a Five Percent (5%) contingency, and expenditures within such contingency amount shall be permitted.