Common use of Preparation of Budgets Clause in Contracts

Preparation of Budgets. Annually and at least thirty (30) days prior to the commencement of each fiscal year of Practice, Manager shall prepare and deliver to the Policy Board for its review, modification and approval an operational and capital budget for such fiscal year ("Annual Budget"), setting forth an estimate of the operating revenues and expenses associated with the provision of professional services by Practice (including, without limitation, all costs associated with the premises used by Practice, equipment, supplies, services, and personnel provided by Manager to Practice pursuant to this Agreement, and all compensation costs associated with Practice and Practice personnel) and sources and uses of capital expenditures. Such budget shall separately address Physician Expenses, Manager Expenses, Practice Surplus, and Capital Expenditures. Manager Expenses shall be in line with historical expenses of Practice and shall be reasonable and customary for Practice and shall include reasonable reserves for the repayment of principal on all borrowings of Practice. Any non-budgeted expenses shall be reviewed and approved by the Policy Board. Any such non-budgeted expense in excess of $5,000 per year undertaken by Practice without approval by the Policy Board (except for emergency circumstances necessary to permit Practice to function to fulfill its patient responsibilities) shall be deducted from Practice Surplus. Manager shall use its best efforts to perform its duties and obligations under this Agreement such that the actual revenues, costs, and expenses associated with the provision of professional services during any applicable period of Practice's fiscal year shall be consistent with and within the limits established by the Annual Budget. Manager shall prepare and submit to the Policy Board for its review, modification and approval, and the Policy Board shall thereafter adopt, an Annual Budget for the current fiscal year as soon as practicable. Manager shall specify the targeted profit margin for Practice which shall be reflected in the Annual Budget. In the event that the Policy Board does not approve any such Annual Budget, then the Annual Budget for the previous year shall be used until the Policy Board, using its best efforts, approves a new Annual Budget.

Preparation of Budgets. Annually and at least thirty (30) days prior to the commencement of each fiscal year of Practice, Manager shall prepare and deliver to the Policy Board Executive Committee and Practice for its review, modification and their approval an operational and capital budget for such fiscal year ("Annual Budget"), setting forth an estimate of the operating revenues and expenses associated with the provision of professional services by Practice (including, without limitation, all costs associated with the leased premises used by Practice, equipment, supplies, and services, and personnel provided used by Manager to Practice pursuant to this Agreement, and all compensation costs associated with Practice and Practice personnel) and sources and uses of capital expenditures. Such budget Annual Budget shall separately address Physician Expenses, Manager Expenses, Practice Surplus, Expenses and Capital Expenditures. Manager Expenses which are in support of Practice and which shall be in line with historical expenses of Practice and shall be which are reasonable and customary for Practice and shall include reasonable reserves for the repayment of principal on all borrowings of Practice. Any non-budgeted expenses shall must be reviewed and approved by the Policy BoardExecutive Committee. Any such non-budgeted expense in excess of $5,000 per year undertaken by Practice without approval by the Policy Board Executive Committee (which for these purposes shall require the approval of at least one Executive Committee member designated by Manager) shall, except for emergency circumstances necessary to permit Practice to function to fulfill its patient responsibilities) circumstances, be excluded from the calculation of Physician Expenses. Any expenses which are personal in nature that are incurred by any Physician Shareholder shall be deducted from Practice Surplushis compensation unless approved by the Executive Committee (which for these purposes shall require the approval of at least one Executive Committee member designated by Manager) and shall not be a Physician Expense. Manager shall use its best efforts to perform its duties and obligations under this Agreement such that the actual revenues, costs, and expenses associated with the provision of professional services during any applicable period of Practice's fiscal year shall be consistent with and within the limits established by the Annual Budget. Manager shall prepare and submit to the Policy Board Executive Committee and Practice for its review, modification and their approval, and the Policy Board shall thereafter adopt, an Annual Budget for the current fiscal year as soon as practicable. Manager shall specify the targeted profit margin for Practice which shall be reflected in the Annual Budget. In the event that the Policy Board Executive Committee or Practice does not approve any such Annual Budget, then the Annual Budget for the previous year shall be used until the Policy BoardExecutive Committee and Practice, using its their best efforts, approves approve a new Annual Budget.

Preparation of Budgets. Annually and at least thirty (30) days prior to the commencement of each fiscal year of Practice, Manager shall prepare and deliver to the Policy Board for its review, modification and approval an operational and capital budget for such fiscal year ("Annual Budget"), setting forth an estimate of the operating revenues and expenses associated with the provision of professional services by Practice (including, without limitation, all costs associated with the leased premises used by Practice, equipment, supplies, services, and personnel provided by Manager to Practice pursuant to this Agreement, and all compensation costs associated with Practice and Practice personnel) and sources and uses of capital expenditures. Such budget shall separately address Physician Expenses, Manager Expenses, Expenses and Practice Surplus, and Capital Expenditures. Manager Expenses Surplus which shall be in line with historical expenses of Practice and shall be which are reasonable and customary for Practice and shall include reasonable reserves for the repayment of principal on all borrowings of Practice. Any non-budgeted expenses shall be reviewed and approved by the Policy Board. Any such non-budgeted expense in excess of $5,000 per year undertaken by Practice without approval by the Policy Board (except Board, which for emergency circumstances necessary to permit Practice to function to fulfill its patient responsibilities) this purpose must include the approval of at least one member designated by Manager, shall be deducted from Practice SurplusSurplus (except for emergency circumstances). Manager shall use its best efforts to perform its duties and obligations under this Agreement such that the actual revenues, costs, and expenses associated with the provision of professional services during any applicable period of Practice's fiscal year shall be consistent with and within the limits established by the Annual Budget. Manager shall prepare and submit to the Policy Board for its review, modification and approval, and the Policy Board shall thereafter adopt, an Annual Budget for the current fiscal year as soon as practicable. Manager shall specify the targeted profit margin for Practice which shall be reflected in the Annual Budget. In the event that the Policy Board does not approve any such Annual Budget, then the Annual Budget for the previous year shall be used until the Policy Board, using its best efforts, approves a new Annual Budget.

Preparation of Budgets. Annually and at least thirty (30a) Within sixty (60) days prior to after the commencement close of each fiscal year of PracticeFiscal Year (unless otherwise agreed by Manager and Owner), so long as this Agreement is in effect, Manager shall use its reasonable good faith efforts to prepare and deliver to Owner a proposed budget and business plan for the Policy Board development and operations of the Project for its reviewthe succeeding Fiscal Year, modification which budget and business plan shall contain at least one (1) line item providing for the deficit funding of LFCA and any other property owners association(s) organized in connection with the development of the Project, and at least one (1) line item providing for the deficit funding of LFCC, and shall otherwise be in such form and including such estimates and assumptions as the Manager shall reasonably select, which after approval an operational and capital or deemed approval by Owner as hereinafter provided, shall be deemed the approved budget for such fiscal year purposes of this Agreement (the "Annual Budget"). The format of the Budget shall be substantially similar to that used for other NTS subdivision developments owned and/or managed by Manager and/or its Affiliates, setting forth and 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 planned improvements, Reimbursements, Incentive Payments, real estate taxes, mortgage payments and debt service, 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 and revenues for such period (the "Revenue Schedule"). If Manager believes it is desirable to change the Revenue Schedule or the Capital Expense Schedule, Manager shall provide written notice to Owner of the changes sought. No annual Budget shall become effective until Owner has approved such Budget in writing, which approval shall not be unreasonably delayed, withheld or conditioned, and shall be given by Owner provided that the Budget is reasonably consistent with, or represents results better than those expected under, the projections for the completion of the Project prepared in connection with this Agreement by Owner and Manager, and attached hereto and made a part hereof as Exhibit F (the "Project Completion Projections"), which Project Completion Projections represents simply an estimate of possible financial return over the operating revenues remaining life of the Project and expenses associated with do not in any event constitute a representation or guaranty of the provision returns of professional services by Practice the Project. Owner shall within ten (including10) days of its receipt of a Budget, without limitationeither (i) approve the Budget as submitted, all costs associated with the premises used by Practicewhich approval shall not be unreasonably delayed, equipment, supplies, serviceswithheld or conditioned, and personnel provided so notify Manager in writing, or (ii) deliver to Manager reasonable proposed modifications to be made to such Budget. If Owner fails to either approve a Budget or deliver the proposed modifications thereto within such ten (10) day period, Owner shall be deemed to have approved the Budget as submitted by Manager. Each Budget shall provide for a contingency fund which may be drawn against by the Manager to Practice pursuant to this Agreementwithout the need for further consent of Owner, and all compensation costs associated with Practice and Practice personnel) and sources and uses for the payment of capital expenditures. Such budget shall separately address Physician Expenses, Manager Expenses, Practice Surplus, and Capital Expendituresunforeseen expenses of the Project which may arise in the course of the completion of the Project. Manager Expenses may, from time to time, compile and submit to Owner a revised Budget ("Revised Budget") for the remaining portion of the then applicable year, which Revised Budget shall be treated in line all instances as a Budget submitted in accordance with historical expenses of Practice this Section, subject to approval and/or modification in the same manner and within the same period, and shall be reasonable and customary for Practice and shall include reasonable reserves for the repayment of principal on all borrowings of Practice. Any non-budgeted expenses shall deemed to be reviewed and approved by the Policy Board. Any such non-budgeted expense in excess of $5,000 per year undertaken by Practice without approval by the Policy Board (except for emergency circumstances necessary Owner should Owner fail to permit Practice to function to fulfill its patient responsibilities) shall be deducted from Practice Surplus. Manager shall use its best efforts to perform its duties and obligations under this Agreement such that the actual revenues, costs, and expenses associated with the provision of professional services during any applicable period of Practice's fiscal year shall be consistent with and within the limits established by the Annual Budget. Manager shall prepare and submit respond to the Policy Board for its reviewsubmission of such Revised Budget within such period, modification and approval, and the Policy Board shall thereafter adopt, an Annual as any Budget for the current fiscal year as soon as practicable. Manager shall specify the targeted profit margin for Practice which shall be reflected in the Annual Budget. In the event that the Policy Board does not approve any such Annual Budget, then the Annual Budget for the previous year shall be used until the Policy Board, using its best efforts, approves a new Annual Budgetso submitted to Owner.

Preparation of Budgets. Annually and at least thirty (30a) Within sixty (60) days prior to after the commencement close of each fiscal year of PracticeFiscal Year (unless otherwise agreed by Manager and Owner), so long as this Agreement is in effect, Manager shall use its reasonable good faith efforts to prepare and deliver to Owner a proposed budget and business plan for the Policy Board development and operations of the Project for its reviewthe succeeding Fiscal Year, modification which budget and business plan shall contain at least one (1) line item providing for the deficit funding of FLCA and any other property owners association(s) organized in connection with the development of the Project, and at least one (1) line item providing for the deficit funding of FLCC, and shall otherwise be in such form and including such estimates and assumptions as the Manager shall reasonably select, which after approval an operational and capital or deemed approval by Owner as hereinafter provided, shall be deemed the approved budget for such fiscal year purposes of this Agreement (the "Annual Budget"). The format of the Budget shall be substantially similar to that used for other NTS subdivision developments owned and/or managed by Manager and/or its Affiliates, setting forth and 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 planned improvements, Reimbursements, Incentive Payments, real estate taxes, mortgage payments and debt service, 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 and revenues for such period (the "Revenue Schedule"). If Manager believes it is desirable to change the Revenue Schedule or the Capital Expense Schedule, Manager shall provide written notice to Owner of the changes sought. No annual Budget shall become effective until Owner has approved such Budget in writing, which approval shall not be unreasonably delayed, withheld or conditioned, and shall be given by Owner provided that the Budget is reasonably consistent with, or represents results better than those expected under, the projections for the completion of the Project prepared in connection with this Agreement by Owner and Manager, and attached hereto and made a part hereof as Exhibit E (the "Project Completion Projections"), which Project Completion Projections represents simply an estimate of possible financial return over the operating revenues remaining life of the Project and expenses associated with do not in any event constitute a representation or guaranty of the provision returns of professional services by Practice the Project. Owner shall within ten (including10) days of its receipt of a Budget, without limitationeither (i) approve the Budget as submitted, all costs associated with the premises used by Practicewhich approval shall not be unreasonably delayed, equipment, supplies, serviceswithheld or conditioned, and personnel provided so notify Manager in writing, or (ii) deliver to Manager reasonable proposed modifications to be made to such Budget. If Owner fails to either approve a Budget or deliver the proposed modifications thereto within such ten (10) day period, Owner shall be deemed to have approved the Budget as submitted by Manager. Each Budget shall provide for a contingency fund which may be drawn against by the Manager to Practice pursuant to this Agreementwithout the need for further consent of Owner, and all compensation costs associated with Practice and Practice personnel) and sources and uses for the payment of capital expenditures. Such budget shall separately address Physician Expenses, Manager Expenses, Practice Surplus, and Capital Expendituresunforeseen expenses of the Project which may arise in the course of the completion of the Project. Manager Expenses may, from time to time, compile and submit to Owner a revised Budget ("Revised Budget") for the remaining portion of the then applicable year, which Revised Budget shall be treated in line all instances as a Budget submitted in accordance with historical expenses of Practice this Section, subject to approval and/or modification in the same manner and within the same period, and shall be reasonable and customary for Practice and shall include reasonable reserves for the repayment of principal on all borrowings of Practice. Any non-budgeted expenses shall deemed to be reviewed and approved by the Policy Board. Any such non-budgeted expense in excess of $5,000 per year undertaken by Practice without approval by the Policy Board (except for emergency circumstances necessary Owner should Owner fail to permit Practice to function to fulfill its patient responsibilities) shall be deducted from Practice Surplus. Manager shall use its best efforts to perform its duties and obligations under this Agreement such that the actual revenues, costs, and expenses associated with the provision of professional services during any applicable period of Practice's fiscal year shall be consistent with and within the limits established by the Annual Budget. Manager shall prepare and submit respond to the Policy Board for its reviewsubmission of such Revised Budget within such period, modification and approval, and the Policy Board shall thereafter adopt, an Annual as any Budget for the current fiscal year as soon as practicable. Manager shall specify the targeted profit margin for Practice which shall be reflected in the Annual Budget. In the event that the Policy Board does not approve any such Annual Budget, then the Annual Budget for the previous year shall be used until the Policy Board, using its best efforts, approves a new Annual Budgetso submitted to Owner.