Common use of Service Contracts and Equipment Leases Clause in Contracts

Service Contracts and Equipment Leases. Manager is authorized to negotiate and enter into by and on behalf of Owner and at Owner's expense, all contracts and equipment leases as are required in the ordinary course of business for the management, operation, maintenance, and leasing of the Property for which the total amount payable is Ten Thousand Dollars ($10,000) or less, and the term of which does not exceed one (1) year. All other contracts and equipment leases shall be subject to the prior approval of Owner. Manager shall not enter into any contracts or equipment leases with any affiliate except upon terms that would be obtained in contracts negotiated at arm’s length with an unrelated third-party, or upon terms which are more favorable to Owner than an arm’s length contract. Notwithstanding the foregoing, Manager is authorized to enter into any contract in an emergency which is immediately necessary for the preservation or safety of the Property or persons, or which is required to avoid suspension of necessary services to the Property, without the prior written consent of Owner; provided, however, that Manager shall use reasonable efforts to contact and secure the prior approval of Owner if Manager, in its reasonable discretion, estimates that any such emergency expenditure may exceed Ten Thousand Dollars ($10,000).