Common use of Annual Operating Budgets Clause in Contracts

Annual Operating Budgets. (i) Pursuant to the terms of any Property management agreement entered into by the Co-Tenants, the Property Manager (or successor thereto), with the input of Stonehenge Real Estate Group, LLC solely during and in accordance with the term of the Development Agreement, shall be directed to prepare and submit to the Co-Tenants, prior to November 1 for the following calendar year, a proposed annual budget relating to the operation, maintenance, insurance, repair, and leasing of the Property for such calendar year. The Co-Tenants shall promptly review and either approve or provide comments and/or proposed modifications to each such proposed annual operating budget for the Property within thirty (30) days after receipt thereof. Failure to respond in writing within thirty (30) days of receipt of any such proposed operating budget shall be deemed such Co-Tenant's approval of such proposed operating budget. Any such budget which is approved by the Co-Tenants shall be referred to herein as an “Operating Budget.” (ii) Until final approval of a proposed operating budget has been given, the Property Manager may operate the Property on the basis of the previous calendar year's approved Operating Budget, together with a three percent (3%) increase in expenditures under such budget (or such greater amount as the Co- Tenants shall agree to) until the end of the calendar year for such proposed operating budget, and a further three percent (3%) increase (or such greater amount as the Co-Tenants may agree to) at the beginning of each successive calendar year if such final approval has not then been given; provided, however, that the amount budgeted for capital expenditures for the subject calendar year shall be limited to the amount that the Co-Tenants are able to agree upon or, if they are unable to agree, then such amounts shall be zero for such calendar year except for capital expenditures required to be made by law or pursuant to a legally binding obligation of the Co-Tenancy which previously has been incurred, entered into or approved in accordance with the terms of this Agreement, including, without limitation, any Loan. (iii) Any amendments to and deviations from an approved Operating Budget shall require the unanimous approval the Co-Tenants, except as otherwise provided in subparagraph 4(d)(ii) above or in the Property Management Agreement.

Annual Operating Budgets. On or before October 15 of each calendar year during the existence of the Partnership, the Managing Partner shall provide to Cellar Door (i) Pursuant a proposed Operating Budget for the forthcoming Amphitheater Fiscal Year setting forth in reasonable detail the various categories of Operating Expenses and the budgeted amounts for each such category to the terms of any Property management agreement entered into be incurred by the Co-Tenants, Partnership during the Property Manager (or successor thereto), with the input of Stonehenge Real Estate Group, LLC solely during forthcoming Amphitheater Fiscal Year and in accordance with the term of the Development Agreement, shall be directed to prepare and submit to the Co-Tenants, prior to November 1 for the following calendar year, a proposed annual budget relating to the operation, maintenance, insurance, repair, and leasing of the Property for such calendar year. The Co-Tenants shall promptly review and either approve or provide comments and/or proposed modifications to each such proposed annual operating budget for the Property within thirty (30) days after receipt thereof. Failure to respond in writing within thirty (30) days of receipt of any such proposed operating budget shall be deemed such Co-Tenant's approval of such proposed operating budget. Any such budget which is approved by the Co-Tenants shall be referred to herein as an “Operating Budget.” (ii) Until final approval of a such information and materials related to the proposed operating budget has been given, the Property Manager Operating Budget as may operate the Property on the basis of the previous calendar year's approved Operating Budget, together with a three percent (3%) increase in expenditures under such budget (or such greater amount as the Co- Tenants shall agree to) until the end of the calendar year for such proposed operating budget, and a further three percent (3%) increase (or such greater amount as the Co-Tenants may agree to) at the beginning of each successive calendar year if such final approval has not then been givenbe requested by Cellar Door; provided, however, that if such information and materials cannot be generated in the amount budgeted ordinary course of business by the Managing Partner, then (x) the Managing Partner shall provide notice thereof to Cellar Door ("Additional Cost Notice") and (y) Cellar Door shall be required to reimburse to the Managing Partner the reasonable costs incurred by the Managing Partner in generating such requested information or materials if Cellar Door renews its request for capital expenditures such information and materials after receipt of the Additional Cost Notice. To be adopted, a proposed Operating Budget must be approved unanimously by both Partners; however, if no Agreement is reached as to an Operating Budget for any Amphitheater Fiscal Year within forty-five (45) days after the commencement of such Amphitheater Fiscal Year, then the Operating Budget for such Amphitheater Fiscal Year shall be deemed to be, until a different Operating Budget is mutually approved by the Partners, the Operating Budget for the subject calendar year shall be limited to prior Amphitheater Fiscal Year with each line item increased by the amount that greater of (i) 5% or (ii) the Co-Tenants are able to agree upon or, if they are unable to agree, then such amounts shall be zero for such calendar year except for capital expenditures required to be made by law or pursuant to a legally binding obligation of the Co-Tenancy which previously has been incurred, entered into or approved in accordance with the terms of this Agreement, including, without limitation, any Loan. (iii) Any amendments to and deviations from an approved Operating Budget shall require the unanimous approval the Co-Tenants, except as otherwise provided in subparagraph 4(d)(ii) above or percentage increase in the Property Management AgreementCPI Index during the immediately preceding Amphitheater Fiscal Year.