Common use of Budgets and Operating Plan Clause in Contracts

Budgets and Operating Plan. 2.5.1 The Property Manager shall prepare and submit to the Tenants in Common an initial capital and operating budget ("Budget") on a monthly accrual basis for the promotion, operation, leasing, repair, maintenance and improvement of the Project for the current calendar year. The Budget for the initial calendar year is attached hereto as Exhibit "C" and is hereby approved by each Tenant in Common. The Property Manager shall deliver each subsequent Budget for each subsequent calendar year on or about December 15th of the calendar year before the budget year, or as soon as possible thereafter. The Budget shall be approved by the Tenants in Common as set forth in Section 1.2.2. Each Tenant in Common shall be deemed to have approved the Budget unless the Tenant in Common provides a written notice indicating the specific objection to the specific Budget item within 15 days from receipt of the Budget as determined pursuant to Section 12. The Tenants in Common agree to use their best efforts to respond to any request to approve the Budget. In the event that the Tenants in Common do not approve of the Budget, the Tenants in Common shall negotiate in good faith with the Property Manager and the other Tenants in Common to obtain an acceptable Budget. The Property Manager may proceed under the terms of the proposed Budget for items that are not objected to and may take any action with respect to items not approved for Emergency Expenditures (as defined in Section 2.5.2). In the event that the items that are objected to are operational expenditures, as opposed to capital expenditures, the Property Manager shall be entitled to operate the Project using the prior year's budget until the approval is obtained. The Property Manager shall provide the Tenants in Common with such information regarding the Budget as may be, from time to time, reasonably requested by the Tenants in Common. The Property Manager may at any time submit a revised Budget to the Tenants in Common for their approval pursuant to Section 1.2.2.

Budgets and Operating Plan. 2.5.1 The Property Manager shall prepare and submit to the Tenants in Common Common, upon written request, an initial capital and operating budget ("Budget") on a monthly accrual basis for the promotion, operation, leasingleasing (including leasing parameters for the Property), repair, maintenance and improvement of the Project Property for the current first full calendar yearyear of ownership on or before November 15th of the calendar year in which the Property was acquired. The Budget for the initial calendar year is attached hereto as Exhibit "C" and is hereby approved by each Tenant in Commonshall be on a monthly, cash basis. The Property Manager shall also deliver each subsequent a Budget for each subsequent calendar year on or about December November 15th of the calendar year before the budget year, or as soon as possible thereafter. The Budget shall be approved by the Tenants each Tenant in Common as set forth in Section 1.2.2Common. Each Tenant in Common shall be deemed to have approved the Budget and the leasing parameters contained therein (the "Leasing Parameters") unless the Tenant in Common provides a written notice to Property Manager and the other Tenants in Common indicating the specific objection to the specific certain Budget item items within 15 (a) thirty (30) days from receipt of the Budget as determined pursuant for all matters except leasing matters and (b) ten (10) days with respect to Section 12. The Tenants in Common agree to use their best efforts to respond to any request to approve the Budgetall leasing matters. In the event that the Tenants any Tenant in Common do not approve of disagrees with any item in the Budget, the Tenants disputing Tenant in Common shall negotiate in good faith with the Property Manager and the other Tenants in Common for fifteen (15) days to obtain resolve the issue. If the parties are unable to reach an acceptable Budgetagreement on any issue other than leasing matters, the issue shall be resolved by arbitration as set forth in Section 2.5.5 with (a) each of the disputing Tenant(s) in Common paying his pro rate share of fifty percent (50%) of the cost of arbitration, and (b) all the other Tenants in Common paying his pro rata share of fifty percent (50%) of the costs of the arbitration. The Property Manager may proceed under the terms of the proposed Budget for items that are not objected to and may take any action with respect to items not approved for Emergency Expenditures (as defined in Section 2.5.2). In the event that the items that are objected to are operational expenditures, as opposed to capital expenditures, the Property Manager shall be entitled to operate the Project using the prior year's budget until the approval is obtained. The Property Manager shall provide the Tenants in Common with such information regarding the Budget as may be, from time to time, reasonably requested by the Tenants in Common. The Property Manager may at any time submit a revised Budget to the Tenants in Common for their approval pursuant to Section 1.2.2Common.