Performance Within Annual Plan Clause Samples
The 'Performance Within Annual Plan' clause defines the requirement for a party to fulfill its obligations in accordance with a predetermined annual plan. This clause typically mandates that all deliverables, milestones, or services must be completed within the timelines and parameters set out in the annual plan, which may be attached as a schedule or referenced in the agreement. By establishing clear expectations and benchmarks for performance over the course of a year, this clause ensures accountability and helps both parties monitor progress, thereby reducing the risk of misunderstandings or unmet obligations.
Performance Within Annual Plan. Manager shall use reasonable diligence and employ commercially reasonable efforts to ensure that the actual costs of maintaining and operating the Project shall not exceed the Annual Plan either in total or in any accounting category. All expenses must be charged to the proper account on either the operating budget or capital budget reflected in the Annual Plan, and no expense may be classified or reclassified for the purpose of avoiding an excess in the annual budgeted amount of an accounting category. Pursuant to Section 6.5 below, Manager shall obtain Owner's prior written consent to any expenditure which costs (i) in excess of 5% for any line item in the budgets included in the Annual Plan, or (ii) $25,000, whichever is less, and is not reasonably contemplated in the Annual Plan.