Common use of Preparation and Approval Clause in Contracts

Preparation and Approval. Operator shall prepare and submit for Owner's approval at least one hundred fifty (150) days in advance of the beginning of each Contract Year a proposed Operating Plan and Budget for such Contract Year containing the information required by Schedule C, except that the Operating Plan and Budget for the first Contract Year shall be submitted for Owner's approval no later than sixty (60) days after the Effective Date. No later than sixty (60) days after receipt of the proposed Operating Plan and Budget, Owner shall notify Operator in writing of Owner's acceptance or disapproval thereof, and, if Owner disapproves of the proposed Operating Plan and Budget, or any part thereof, shall state the basis for its objection and suggest appropriate changes. The Parties shall proceed in good faith to resolve any objections to the proposed Operating Plan and Budget made by the Owner before the beginning of the next Contract Year. If the Parties are unable to resolve any such objections to the proposed Operating Plan and Budget before the beginning of the next Contract Year, then the interim annual operating budget ("Interim Budget") for such Contract Year shall be equal to the annual operating budget approved as a part of the Operating Plan and Budget for the preceding Contract Year, except that (i) the categories 1.1 through 1.5 as they appear on Schedule C hereto shall be escalated in accordance with the United States Producer Price Index, and (ii) any expenditures for Services in connection with Scheduled Outages and Major Maintenance Outages and any increases in costs attributable to additions to plant personnel approved by Owner shall be reimbursed in full. Operator shall operate and maintain the Cogen Facility on the basis set forth in the approved Operating Plan and Budget. If, during any Contract Year, Operator believes that a significant variance will occur between the total actual expenses of operating the Cogen Facility and the total expenses budgeted in the approved annual operating budget, Operator shall promptly notify Owner of such belief and advise Owner of the necessary revisions to the annual operating budget and the reasons for these revisions; provided that the foregoing is not intended to require such revision on a line item basis. The Parties shall proceed in good faith to revise the Operating Plan and Budget in such manner for the balance of such Contract Year.

Preparation and Approval. Operator As soon as reasonably possible hereafter, the Operating Committee shall prepare (or cause to be prepared) and submit to the Executive Committee for approval an interim operating budget (each an "Interim Operating Budget") for the management, leasing and operation of each Partnership Property through the end of Fiscal Year 1998. At least forty-five (45) days prior to the beginning of each Fiscal Year, the Operating Committee shall prepare and submit to the Executive Committee for Owner's approval at least one hundred fifty (150) days in advance of the beginning of each Contract Year a proposed Operating Plan and Budget for such Contract Year containing the information required by Schedule C, except that the Operating Plan and Budget for the first Contract Year shall be submitted for Owner's approval no later than sixty (60) days after the Effective Date. No later than sixty (60) days after receipt of the proposed Operating Plan and Budget, Owner shall notify Operator in writing of Owner's acceptance or disapproval thereof, and, if Owner disapproves of the proposed Operating Plan and Budget, or any part thereof, shall state the basis for its objection and suggest appropriate changes. The Parties shall proceed in good faith to resolve any objections to the proposed Operating Plan and Budget made by the Owner before the beginning of the next Contract Year. If the Parties are unable to resolve any such objections to the proposed Operating Plan and Budget before the beginning of the next Contract Year, then the interim annual operating budget (each an "Interim Annual Budget") for the management, leasing and operation of each Partnership Property for the next Fiscal Year. The Interim Operating Budgets and Annual Operating Budgets shall sometimes hereinafter be collectively referred to individually as a "Budget" and collectively as the "Budgets". The Executive Committee may approve or disapprove the entire Budget or certain cost items or categories of each Budget. If the Executive Committee disapproves any Budget or any cost item or category thereof, the Operating Committee shall meet within five (5) business days after the Executive Committee's disapproval and seek in 20 good faith to agree upon an acceptable revision to such Contract Year disapproved Budget(s) or cost item or category, as the case may be. Once revised, each such disapproved Budget shall be equal resubmitted to the annual operating budget Executive Committee for approval and such process shall continue until the Executive Committee has approved as a part of Budget for each Partnership Property for the Fiscal Year in question. Such Budgets will be prepared by the Operating Plan Committee and Budget for the preceding Contract Year, except that (i) the categories 1.1 through 1.5 as they appear on Schedule C hereto shall be escalated in accordance with the United States Producer Price Index, and (ii) any expenditures for Services in connection with Scheduled Outages and Major Maintenance Outages and any increases in costs attributable to additions to plant personnel approved by Owner shall be reimbursed in full. Operator shall operate and maintain the Cogen Facility on the basis set forth in the approved Operating Plan and Budget. If, during any Contract Year, Operator believes that a significant variance will occur between the total actual expenses of operating the Cogen Facility and the total expenses budgeted in the approved annual operating budget, Operator shall promptly notify Owner of such belief and advise Owner of the necessary revisions to the annual operating budget and the reasons for these revisions; provided that the foregoing is not intended to require such revision on a line item basis. The Parties shall proceed Executive Committee in good faith based upon estimates taking into account the most recent information then available to revise the Operating Plan Committee. The Operating Committee shall update each Budget no less frequently than quarterly, and Budget shall promptly submit any proposed revisions to such Budgets resulting from such updates to the Executive Committee for approval in such the manner provided above for approval of the balance of such Contract Yearoriginal Budgets.

Preparation and Approval. Operator As soon as reasonably possible hereafter, the Operating Committee shall prepare (or cause to be prepared) and submit to the Executive Committee for approval an interim operating budget (each an "INTERIM OPERATING BUDGET") for the management, leasing and operation of each Partnership Property through the end of Fiscal Year 1998. At least forty-five (45) days prior to the beginning of each Fiscal Year, the Operating Committee shall prepare and submit to the Executive Committee for Owner's approval at least one hundred fifty a proposed budget (150each an "ANNUAL BUDGET") days in advance of for the beginning management, leasing and operation of each Contract Year Partnership Property for the next Fiscal Year. The Interim Operating Budgets and Annual Operating Budgets shall sometimes hereinafter be collectively referred to individually as a proposed Operating Plan "BUDGET" and collectively as the "BUDGETS". The Executive Committee may approve or disapprove the entire Budget for such Contract Year containing or certain cost items or categories of each Budget. If the information required by Schedule CExecutive Committee disapproves any Budget or any cost item or category thereof, except that the Operating Plan and Budget for the first Contract Year Committee shall be submitted for Owner's approval no later than sixty meet within five (605) business days after the Effective Date. No later than sixty (60) days after receipt of the proposed Operating Plan Executive Committee's disapproval and Budget, Owner shall notify Operator in writing of Owner's acceptance or disapproval thereof, and, if Owner disapproves of the proposed Operating Plan and Budget, or any part thereof, shall state the basis for its objection and suggest appropriate changes. The Parties shall proceed seek in good faith to resolve any objections agree upon an acceptable revision to such disapproved Budget(s) or cost item or category, as the case may be. Once revised, each such disapproved Budget shall be resubmitted to the proposed Operating Plan Executive Committee for approval and such process shall continue until the Executive Committee has approved a Budget made for each Partnership Property for the Fiscal Year in question. Such Budgets will be prepared by the Owner before the beginning of the next Contract Year. If the Parties are unable to resolve any such objections to the proposed Operating Plan Committee and Budget before the beginning of the next Contract Year, then the interim annual operating budget ("Interim Budget") for such Contract Year shall be equal to the annual operating budget approved as a part of the Operating Plan and Budget for the preceding Contract Year, except that (i) the categories 1.1 through 1.5 as they appear on Schedule C hereto shall be escalated in accordance with the United States Producer Price Index, and (ii) any expenditures for Services in connection with Scheduled Outages and Major Maintenance Outages and any increases in costs attributable to additions to plant personnel approved by Owner shall be reimbursed in full. Operator shall operate and maintain the Cogen Facility on the basis set forth in the approved Operating Plan and Budget. If, during any Contract Year, Operator believes that a significant variance will occur between the total actual expenses of operating the Cogen Facility and the total expenses budgeted in the approved annual operating budget, Operator shall promptly notify Owner of such belief and advise Owner of the necessary revisions to the annual operating budget and the reasons for these revisions; provided that the foregoing is not intended to require such revision on a line item basis. The Parties shall proceed Executive Committee in good faith based upon estimates taking into account the most recent information then available to revise the Operating Plan Committee. The Operating Committee shall update each Budget no less frequently than quarterly, and Budget shall promptly submit any proposed revisions to such Budgets resulting from such updates to the Executive Committee for approval in such the manner provided above for approval of the balance of such Contract Yearoriginal Budgets.