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.

Preparation of Annual Budget. (a)No 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. 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 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 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 nonrecurring expenditures, which approval shall not be unreasonably withheld or delayed.