Common use of Reports to Members Clause in Contracts

Reports to Members. (a) As soon as practicable after the end of each fiscal year, the Company shall distribute to each Member: (i) a copy of such Member’s Schedule K-1 from the Company’s Partnership Tax Return (Form 1065); and (ii) a copy of its financial statement, including a balance sheet as of the end of such fiscal year, an income statement and statement of cash flow for the fiscal year then ended, including appropriate foot note disclosures, prepared in accordance with generally accepted accounting principles, consistently applied. If determined by vote by a majority of the Members, SBARRO shall arrange for the preparation of certified financial statements for the Company and distribute same to each Member. The Company shall be responsible for the costs of the preparation of the certified statements. (iii) Each Member may, for any purpose reasonably related to such Member’s interest, at such Member’s own expense, upon reasonable prior notice to the Company, inspect and copy, during the normal business hours of the Company, any records or information maintained by the Company, including without limitation the records and information required to be maintained pursuant to Section 9.4 and the Company’s financial statements, if any, for each of the three most recently ended fiscal years. Such inspection may be conducted by the Member and/or its designated representative(s).

Reports to Members. (a) As soon as practicable after the end of each fiscal year, the Company shall distribute to each Member: (i) a copy of such Member’s Schedule K-1 from the Company’s Partnership Tax Return (Form 1065); and (ii) a copy of its financial statement, including a balance sheet as of the end of such fiscal year, an income statement and statement of cash flow for the fiscal year then ended, including appropriate foot note disclosures, prepared in accordance with generally accepted accounting principles, consistently applied. If determined by vote by a majority of the Members, SBARRO shall arrange for the preparation of certified financial statements for the Company and distribute same to each Member. The Company shall be responsible for the costs of the preparation of the certified statements. (iii) Each Member may;, for any purpose reasonably related to such Member’s interest, at such Member’s own expense, upon reasonable prior notice to the Company, inspect and copy, during the normal business hours of the Company, any records or information maintained by the Company, including without limitation the records and information required to be maintained pursuant to Section 9.4 and the Company’s financial statements, if any, for each of the three most recently ended fiscal years. Such inspection may be conducted by the Member and/or its designated representative(s).