Common use of Expenses per Budget Clause in Contracts

Expenses per Budget. With respect to each Property, to the extent set forth in the most recent Budget for such Property approved by the Company, and if requested by the Company, the Property Manager will make all payments for debt service on mortgages secured by such Property, for taxes and/or for the applicable Owner Subsidiary’s insurance. In addition, with respect to each Property, to the extent set forth in the most recent Budget for such Property approved by the Company and without further consent of the Company, the Property Manager shall pay each and every expense properly incurred in the ordinary course of managing the Properties during the calendar year covered by the Budget; provided, that, if such expenses exceed the Budget for such Property approved by the Company by more than ten percent (10%) during the calendar year covered by the Budget (each, an “Overrun”), the Company may elect to terminate this Property Management Agreement solely with respect to such Property, it being understood, that, such termination shall constitute the Company’s sole remedy with respect to such Overrun and such Overrun shall not be deemed a breach of this Property Management Agreement, but such termination shall not prevent liability for any other breach by the Property Manager under this Property Management Agreement; and provided further, that, the Company shall not be permitted to so terminate this Property Management Agreement if such Budget excess (i) was due to amounts incurred for insurance, taxes and/or utilities, and/or (ii) was caused by or resulted from the following acts: (a) acts of God; (b) flood, fire or explosion; (c) acts of terror, war, invasion, riot or other civil unrest; (d) government order or law that becomes effective after the approval of the Budget and was not known to the Property Manager prior to the approval of the Budget; (e) actions, embargoes or blockades in effect after the approval of the Budget; (f) action by any governmental authority that occurs after the approval of the Budget and was not known to the Property Manager prior to the approval of the Budget; and (g) national or regional emergency (each of (a) through (g), a “Force Majeure Event”). If the Property Manager suffers a Force Majeure Event, it shall give notice to the Company, stating the anticipated period of time the event is expected to continue and shall use commercially reasonable efforts to ensure the effects of such Force Majeure Event are minimized.