PROPERTY OR THE
PROVISION OF SERVICES AT THE PROPERTY, AFTER DEDUCTING (A) AN AMOUNT AGREED TO
BY OWNER FOR THE PROPERTY'S WORKING CAPITAL, AND (B) KNOWN EXPENDITURES THAT
WILL BE PAID BETWEEN THAT DATE AND THE FIFTEENTH (15TH) DAY OF THE SAME MONTH,
PROVIDED THAT THE SAME ARE CONSISTENT WITH THE APPROVED OPERATING BUDGET.
THE
AMOUNT SO REMITTED WILL BE DELIVERED TO OWNER, INDEPENDENT OF REQUIRED FINANCIAL
REPORTS, IN THE MOST EXPEDITIOUS MANNER POSSIBLE AS DIRECTED BY OWNER.
THE
SCHEDULE FOR THE TRANSFER OF FUNDS AND THE BALANCE PERMITTED TO REMAIN IN THE
OPERATING ACCOUNT MAY BE CHANGED FROM TIME TO TIME BY WRITTEN INSTRUCTIONS
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FROM OWNER.
AT OWNER'S OPTION, THE FINAL MONTHLY REMITTANCE WILL BE NET OF THE
MANAGEMENT FEE AND/OR PAYROLL HANDLING FEE.
4.7
OWNER'S PROPERTY.
ALL BOOKS, RECORDS, COMPUTER DISKS CONTAINING
PROPERTY INFORMATION, INVOICES AND OTHER DOCUMENTS RECEIVED AND/OR MAINTAINED BY
MANAGER PURSUANT TO THIS AGREEMENT ARE AND WILL REMAIN THE PROPERTY OF OWNER,
AND SHALL BE MADE AVAILABLE TO OWNER AT ANY TIME WITH REASONABLE NOTICE.
MANAGER MAY RETAIN A COPY OF SUCH INFORMATION BUT IT SHALL BE KEPT CONFIDENTIAL.
4.8
BOOKS AND RECORDS.
MANAGER SHALL MAINTAIN SEPARATE AND ACCURATE
BOOKS, RECORDS, FILES AND ACCOUNTS FOR THE PROPERTY (COLLECTIVELY, THE "BOOKS
AND RECORDS") IN A GOOD AND ORDERLY FASHION.
THE BOOKS AND RECORDS SHALL BE THE
EXCLUSIVE PROPERTY OF OWNER, SHALL BE KEPT AT THE PROPERTY OR AT MANAGER'S
NOTICE ADDRESS (OR SUCH OTHER LOCATION AS OWNER MAY APPROVE) AND SHALL INCLUDE
THE FOLLOWING:
(A)
TENANT FILES, INCLUDING EXECUTED LEASES, LEASE ABSTRACTS, LEASE
AMENDMENTS, ORIGINAL INSURANCE CERTIFICATES, CORRESPONDENCE, AND CURRENT RENT
ROLLS;
(B)
MAINTENANCE AND REPAIR FILES;
(C)
ACCOUNTING BOOKS AND RECORDS AND SUPPORTING DOCUMENTATION;
(D)
CONSTRUCTION FILES, COMPETITIVE BID RECORDS, INCLUDING SITE PLANS,
AS-BUILT DRAWINGS, TENANT SPACE PLANS, CONSTRUCTION SPECIFICATIONS, AND CAPITAL
IMPROVEMENTS SCHEDULES AND INFORMATION;
(E)
OPERATION FILES, INCLUDING HVAC MAINTENANCE SCHEDULES, WARRANTIES,
AND OPERATION MANUALS;
(F)
SERVICE CONTRACTS, INCLUDING CLEANING, MAINTENANCE, LANDSCAPING,
SNOW REMOVAL, TRASH REMOVAL, ETC.;
(G)
PERMITS AND LICENSES ( INCLUDING CERTIFICATES OF OCCUPANCY FOR ALL
TENANT SPACES);
(H)
COPIES OF INSURANCE POLICIES OR CERTIFICATES; AND
(I)
SUCH OTHER INFORMATION RELATING TO THE PROPERTY AS OWNER REQUESTS
FROM TIME TO TIME.
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Article 5.
Owner's Right to Audit
5.1
RIGHT TO AUDIT.
OWNER WILL AT ALL TIMES AND WITHOUT NOTIFICATION
HAVE THE RIGHT TO CONDUCT AUDITS AND EXAMINATIONS OF, AND TO MAKE COPIES OF, THE
BOOKS AND RECORDS, NO MATTER WHERE SUCH BOOKS AND RECORDS ARE LOCATED.
SUCH
RIGHT MAY BE EXERCISED THROUGH ANY AGENT OR EMPLOYEE OF OWNER, OR ANY CERTIFIED
PUBLIC ACCOUNTANT DESIGNATED BY OWNER.
OWNER WILL ALSO HAVE THE RIGHT TO
PERFORM ANY AND ALL ADDITIONAL AUDIT TESTS RELATING TO MANAGER'S ACTIVITIES
EITHER AT THE PROPERTY OR AT ANY OFFICE OF THE MANAGER.
SHOULD OWNER DISCOVER
EITHER WEAKNESSES IN INTERNAL CONTROL OR ERRORS IN RECORD KEEPING, MANAGER WILL
CORRECT SUCH DISCREPANCIES PROMPTLY UPON OWNER'S REQUEST AND WILL INFORM OWNER,
IN WRITING, OF THE ACTION TAKEN TO CORRECT SUCH AUDIT DISCREPANCIES.
ALL AUDITS
CONDUCTED BY OWNER