IDENTIFICATION AND PRESENTMENT OF NEW FACILITIES Sample Clauses

IDENTIFICATION AND PRESENTMENT OF NEW FACILITIES. The Managing Member may, but shall not be obligated to, seek to identify new assisted living facilities (which may, but need not, come from the Managing Member's portfolio) that satisfy the investment criteria set forth by the Company (and Approved by the Investor Member). If the Managing Member identifies a facility that it proposes to have the Company acquire, the Managing Member shall prepare and deliver to Investor Member an investment summary for such facility. Such summary will include an historical cash flow statement, a five-year projected cash flow statement, a five-year projected capital expenditure budget, and an Investment Yield calculation. For purposes of this Section, "INVESTMENT YIELD" means the 12-month budgeted Net Operating Income for a facility divided by the aggregate acquisition cost of such facility, including transaction costs, and "NET OPERATING INCOME" means the Gross Facility Revenue attributable to such facility, less all operating expenses of such facility, including the Management Fee. The Investor Member shall have thirty (30) days after receipt of the investment summary to grant or withhold its initial Approval of the proposed transaction pending a due diligence investigation. The failure of the Investor Member to respond within this time period shall be deemed to be a disapproval by the Investor Member of the proposed transaction, and the Managing Member shall discontinue efforts to acquire the facility for the Company.