Common use of Preparation of Annual Budget Clause in Contracts

Preparation of Annual Budget. (a) No more than thirty (30) days after the commencement hereof and thereafter at least one hundred twenty (120) days prior to the commencement of each calendar year (unless otherwise directed by Owner), so long as this Agreement is in effect, Manager shall prepare and deliver to Owner a proposed budget, which after approval by Owner shall be deemed the approved budget (the "Budget"). The format, to be designated by Owner, shall set forth, in reasonable detail and on a monthly basis, an itemized statement of the estimated disbursements for such period, including but not limited to all normal operating costs, expenses relating to tenant improvements, management fees, real estate taxes, mortgage payments, insurance premiums, employee salaries and similar items, a schedule of necessary capital expenditures reasonably detailing each item and the estimated cost thereof (the "Capital Expense Schedule"), and the estimated income for such period based on a schedule of minimum rents (the "Rent Schedule"). If Manager believes it is desirable to change the Rent Schedule or the Capital Expense Schedule, Manager shall provide written notice to Owner of the changes sought. All such changes shall require the specific written approval of Owner prior to implementation. No annual Budget shall become effective until Owner has approved such Budget in writing. In the event that Owner disapproves any proposed Budget submitted by Manager during the term of this Agreement, then such Budget shall be resubmitted by Manager within fourteen (14) days of receipt of Owner's written notice which shall contain specific objections thereto. (b) Manager agrees to use due diligence and to employ its reasonable best efforts to ensure that the actual costs of maintaining and operating the Property shall not exceed the amount provided therefor in the applicable Budget (either total or in any line-item) except as expressly set forth below. Except with respect to expenditures for emergency services or utilities, Manager shall not incur any expense which would (i) cause any single line item indicated in the Budget to be exceeded by $1,000.00 or (ii) together with other previous expenses, in any major category of the Budget, exceed the budgeted amount in such category by more than five percent (5%) on a quarterly basis, without the prior written consent of Owner, and Manager shall promptly notify Owner of any projected material variance. Until such time as a new budget has been approved, the parties shall continue to operate under the last Budget. Manager shall not transfer any amounts from one expense item to another (other than from any contingency item to a specific line item) without Owner's prior written consent. Any budgeted amounts which have not been spent by the end of the Calendar Year shall be reduced to zero for the beginning of the next Calendar Year. (c) The Budget shall be reforecast quarterly. Each quarterly budget reforecast will show actual quarterly figures with a revised year-end budget to reflect actual quarterly results. Owner shall advise Manager in writing of the format and dates of the budget desired by Owner for the next succeeding Calendar Year.

Preparation of Annual Budget. (a) No more than thirty (30) days after Contemporaneously with the commencement hereof execution and thereafter at least one hundred twenty (120) days prior delivery of this Agreement, each Owner has acknowledged its approval of a budget for its Property for the Fiscal Year ending December 31, 2018, which has been prepared by Property Manager and delivered to such Owner as of the commencement of date hereof. With respect to each calendar year (unless otherwise directed by Owner)subsequent Fiscal Year, so long as this Agreement is in effect, Property Manager shall prepare and deliver to Owner for each Property a separate proposed budget, which after approval by Owner shall be deemed in the form attached hereto as Exhibit D and shall include the information described in Exhibit D-1 and shall submit the same to each applicable Owner not later than November 15 of the prior Fiscal Year (until approved budget (the "pursuant to this Section 2.2, each, a “Budget"). The format, to be designated by Owner, shall set forth, in reasonable detail ” and on a monthly basisthereafter, an itemized statement of the estimated disbursements for such period, including but not limited to all normal operating costs, expenses relating to tenant improvements, management fees, real estate taxes, mortgage payments, insurance premiums, employee salaries and similar items, a schedule of necessary capital expenditures reasonably detailing each item and the estimated cost thereof (the "Capital Expense Schedule"“Approved Budget”), and the estimated income for such period based on a schedule of minimum rents (the "Rent Schedule"). If Manager believes it is desirable to change the Rent Schedule or the Capital Expense Schedule, Manager shall provide written notice to Owner of the changes sought. All such changes shall require the specific written approval of Owner prior to implementation. No annual Budget shall become effective until Owner has approved such Budget in writing. In the event that Owner disapproves any proposed Budget submitted by Manager during the term of this Agreement, then such Budget shall be resubmitted by Manager within fourteen (14) days of receipt of Owner's written notice which shall contain specific objections thereto. (b) If an Owner fails to approve a proposed Budget (or a particular portion thereof) for its Property for any Fiscal Year prior to the first day of such Fiscal Year, Property Manager agrees shall operate such Property in accordance with the portion of the proposed Budget that was approved by such Owner and, in relation to use due diligence and to employ its reasonable best efforts to ensure the portion that was not approved, in accordance with the corresponding portion of the Approved Budget of such Property for the immediately preceding Fiscal Year, except that the actual costs applicable portion of maintaining and operating such preceding Approved Budget shall be adjusted: (i) to reflect (A) in relation to expenses not within the Property shall not exceed control of the amount provided therefor in the applicable Budget (either total or in any line-item) except as expressly set forth below. Except Owner with respect to expenditures for emergency services or such Property (including real property taxes and assessments, insurance and utilities), Manager shall not incur any expense which would the actual amount of such expenses; and (iB) cause any single line item indicated in relation to expenses within the Budget to be exceeded by $1,000.00 or (ii) together with other previous expenses, in any major category control of the BudgetOwner with respect to such Property, exceed the budgeted amount in such category by more than an increase of five percent (5%) on a quarterly basis, without over the prior written consent amount set out in such preceding Approved Budget; and (ii) to remove any capital expenditures that were part of Owner, and Manager shall promptly notify Owner of any projected material variance. Until such time as a new budget has been approved, the parties shall continue to operate under the last Budget. Manager shall not transfer any amounts from one expense item to another (other than from any contingency item to a specific line item) without Owner's prior written consent. Any budgeted amounts which have not been spent by the end portion of the Calendar Year shall be reduced to zero for the beginning of the next Calendar Yearpreceding Approved Budget. (c) The If an Owner provides notice of any objection to a proposed Budget (each such notice, a “Budget Objection Notice”) within fifteen (15) days after receiving the proposed Budget, Property Manager shall be reforecast quarterly. Each quarterly budget reforecast will show actual quarterly figures with modify the proposed Budget, taking into account the objections of the Owner, and shall resubmit a revised year-end budget Budget to reflect actual quarterly results. Owner shall advise Manager in writing of the format and dates of the budget desired by that Owner for reconsideration and the next succeeding Calendar YearOwner may deliver further Budget Objection Notices (if any), which it shall endeavor to deliver within fifteen (15) days thereafter (in which event, the resubmission and review process described above in this sentence shall continue until an Budget for the Fiscal Year in question is accepted and consented to by such Owner).

Preparation of Annual Budget. (a) No more than thirty forty-five (3045) days after the commencement hereof and thereafter at least one hundred twenty ninety (12090) days prior to the commencement of each calendar or fiscal year (unless otherwise directed by Owner), so long as this Agreement is in effect, Manager shall prepare and deliver to Owner a proposed budgetbudget for each Property which, which after approval by Owner Owner, shall be deemed the approved budget for such Property (the "each, a “Budget"”). The format, to be designated by Owner, shall set forth, forth in reasonable detail and on a monthly basis, an itemized statement of the estimated disbursements for such period, including but not limited to all normal operating costs, expenses relating to tenant improvements, management fees, real estate taxes, mortgage payments, insurance premiums, employee salaries and similar items, a schedule of necessary capital expenditures reasonably detailing each item and the estimated cost thereof (the "“Capital Expense Schedule"”), and the estimated income for such period based on a schedule of minimum rents as reflected in all leases in effect for such period (the "“Rent Schedule"”). If Manager believes it is desirable to change the Rent Schedule or the Capital Expense Schedule, Manager shall provide written notice to Owner of the changes sought. All such changes shall require the specific written approval of Owner prior to implementation. No annual Budget shall become effective until Owner has approved such Budget in writing. In the event that Owner disapproves any proposed Budget submitted by Manager during the term of this Agreement, then such Budget shall be resubmitted by Manager within fourteen (14) days of receipt of Owner's ’s written notice which shall contain containing specific objections thereto. (b) . If Owner has not approved a proposed budget for a Property in accordance with the terms hereof prior to the first day of the period to which such proposed annual budget is to apply, the Manager agrees to use due diligence and to employ its reasonable best efforts to ensure that the actual costs of maintaining and operating shall operate the Property from the first day of such calendar year (or fiscal year, if applicable) through the date on which Owner approves such proposed annual budget for the Property in accordance with the terms most recently approved by Owner, with all applicable amounts therein specified for expenditures being increased or decreased, as the case may be, on an annualized basis by the percentage change in the CPI (as hereinafter defined) from January of the calendar year for which such annual Budget was originally approved until January of the calendar year for which such annual Budget, as adjusted, is to remain in effect (such annual Budget with applicable amounts so increased or decreased, collectively, “Adjusted Annual Budget”). For purposes of the preceding sentence, the annual Budget most recently approved by Owner shall not exceed the amount provided therefor in the applicable Budget (either total include capital items and nonrecurring expenditures which were approved solely for a preceding year, but Manager may, for any calendar year, seek approval from Owner for any capital items or in any line-item) except as expressly set forth below. Except with respect to expenditures for emergency services or utilitiesnonrecurring expenditures, Manager which approval shall not incur any expense which would (i) cause any single line item indicated in the Budget to be exceeded by $1,000.00 unreasonably withheld or (ii) together with other previous expenses, in any major category of the Budget, exceed the budgeted amount in such category by more than five percent (5%) on a quarterly basis, without the prior written consent of Owner, and Manager shall promptly notify Owner of any projected material variance. Until such time as a new budget has been approved, the parties shall continue to operate under the last Budget. Manager shall not transfer any amounts from one expense item to another (other than from any contingency item to a specific line item) without Owner's prior written consent. Any budgeted amounts which have not been spent by the end of the Calendar Year shall be reduced to zero for the beginning of the next Calendar Yeardelayed. (c) The Budget shall be reforecast quarterly. Each quarterly budget reforecast will show actual quarterly figures with a revised year-end budget to reflect actual quarterly results. Owner shall advise Manager in writing of the format and dates of the budget desired by Owner for the next succeeding Calendar Year.

Preparation of Annual Budget. (a) Owner has provided Manager with copies of the current approved Annual Budgets for each building which are attached hereto as Exhibit A. No more than thirty (30) days after the commencement hereof and thereafter at least one hundred twenty (120) days prior to the commencement hereof, Manager shall notify Owner of each calendar year (unless otherwise directed by Owner), so any requested adjustments or discrepancies with such current approved Annual Budgets. So long as this Agreement is in effect, Manager shall prepare and deliver to Owner a proposed budgetbudget at least six (6) months prior to the commencement of each fiscal year which runs from July 1 to June 30 of each year (which mean on or before January 1st of each year), which unless otherwise directed by Owner, which, after actual or deemed approval by Owner Owner, shall be deemed the approved budget (the "“Approved Budget"”). The format, to be designated or approved by Owner, shall set forth, forth in reasonable detail and on a monthly basis, an itemized statement of the estimated disbursements for such period, including including, but not limited to all normal operating costs, expenses relating to tenant improvements, management fees, real estate taxes, mortgage payments, insurance premiums, employee salaries any anticipated after hours maintenance expenses and similar items, a schedule of necessary capital expenditures reasonably detailing each item and the estimated cost thereof (the "Capital Expense Schedule")thereof, and the estimated income for such period based on a schedule of minimum rents (the "Rent Schedule")as reflected in all leases in effect for such period based on information provided to Manager from Owner. If Manager believes it is desirable to change any material aspect of the Rent Schedule or the Capital Expense ScheduleApproved Budget, Manager shall provide written notice to Owner of the changes sought. All such changes shall require the specific written approval of Owner prior to implementation. No annual Budget shall become effective until Owner has approved such Budget in writing. In the event that Owner disapproves any proposed Budget budget submitted by Manager during the term of this Agreement, then such Budget budget shall be resubmitted by Manager within fourteen (14) calendar days of receipt of Owner's ’s written notice which shall contain containing specific objections thereto. In the event that Owner fails to respond to or otherwise disapprove of the Manager’s proposed budget by the start of the applicable budget year, then that proposed budget shall be deemed to be approved by Owner; provided that Owner will retain the right to require modifications, on a going forward basis only, of any budget that is deemed approved in this manner. (b) Manager agrees to shall use due diligence and to employ its reasonable best efforts to ensure that the actual costs of maintaining and operating the Property shall not exceed the amount provided therefor in the applicable Approved Budget (either total or in any line-item) except as expressly set forth below. Except with respect to expenditures for emergency services or utilities, Manager shall not incur any expense which would (i) cause any single line item indicated in the Budget to be exceeded by the greater of (i) five percent (5%) of such line item or $1,000.00 5,000 or (ii) together with other previous expenses, in any major category of the Budget, exceed the budgeted amount in such category by more than five percent (5%) on a quarterly basis, without the prior written consent of Owner, and Manager shall promptly notify Owner of any projected material variance. Until such time as a new budget has been approved, the parties shall continue to operate under the last Budget. Manager shall not transfer any amounts from one expense item to another (other than from any contingency item to a specific line item) without Owner's ’s prior written consent. Any budgeted amounts which have not been spent by the end of the Calendar Year fiscal year shall be reduced to zero for the beginning of the next Calendar Yearfiscal year if approved by Owner. (c) The Budget shall be reforecast quarterly. Each quarterly budget reforecast will show actual quarterly figures with a revised year-end budget to reflect actual quarterly results. Owner shall advise Manager in writing of the format and dates of the budget desired by Owner for the next succeeding Calendar Year.