Common use of Review and Adoption of Company Annual Budget Clause in Contracts

Review and Adoption of Company Annual Budget. (a) Within fourteen (14) days of receipt of a proposed Company Annual Budget, each Director shall provide their comments or proposed modifications to the proposed Company Annual Budget, if any, to the CEO. Failure to provide comments or modifications shall not preclude a Director from voting for or against the adoption of a Company Annual Budget. (b) No earlier than fourteen (14) days, but no later than twenty -eight (28) days after submitting the proposed Company Annual Budget to the Directors, the CEO shall submit the Company Annual Budget, as amended in his sole discretion to take account of Directors' comments and proposed modifications, to the Board. (c) Within fourteen (14) days after receipt of the Company Annual Budget, the Board shall convene for the purpose of reviewing and voting upon the Company Annual Budget. The Board shall give written notice to all Shareholders as to whether it has approved or rejected the Company Annual Budget. In the event that the Board approves the Company Annual Budget with the exception of the budget items relating to services to be rendered by a Shareholder or its Affiliates to the Company or a Group Company, the CEO will be entitled to continue the operations of the Company in terms of the Company Annual Budget, excluding the unapproved budgetary items, and the Shareholders will meet to resolve the outstanding budgetary item. The CEO may incur expenditure for unapproved budget items if such budget items were approved in the previous year's Company Annual Budget having been approved by the Board. (d) If the Board rejects the Company Annual Budget, the Shareholders shall meet within fourteen (14) days in order to determine a new Company Annual Budget and in the event that the Shareholders are unable to agree on a new Company Annual Budget within twenty -eight (28) days of the Board rejecting the Company Annual Budget, the CEO shall be entitled to operate the Group Companies under the terms of the then existing approved Company Annual Budget until such time as the Board approves a new Company Annual Budget.