WITH THE OPERATING BUDGET CLASSIFICATIONS AND REPORTING PACKAGE.
NO
EXPENSE MAY BE RECLASSIFIED EXCEPT AS NEEDED TO CORRECT AN INADVERTENT ERROR.
MANAGER WILL SECURE OWNER'S PRIOR APPROVAL FOR ANY EXPENDITURE THAT WILL RESULT
IN A VARIANCE OF THE GREATER OF $5,000 OR 5% OF THE ANNUAL BUDGETED AMOUNT IN
ANY ONE ACCOUNTING LINE ITEM OF THE OPERATING BUDGET.
(C)
OWNER SHALL HAVE THE RIGHT TO REQUIRE CHANGES IN THE APPROVED
ANNUAL BUSINESS PLAN FROM TIME TO TIME; PROVIDED, HOWEVER, THAT OWNER SHALL
PROVIDE MANAGER WITH AT LEAST FIFTEEN (15) DAYS' NOTICE OF SUCH CHANGES.
2.9
SERVICE CONTRACTS.
(A)
TO THE EXTENT PERMITTED BY THE APPROVED ANNUAL BUSINESS PLAN (SO
THAT, AMONG OTHER THINGS, THE EXPENSE THEREOF DOES NOT EXCEED THE CORRESPONDING
AMOUNT SET FORTH IN THE OPERATING BUDGET), AND SUBJECT TO SECTION 2.11, MANAGER
(WITHOUT THE PRIOR CONSENT OF OWNER, PROVIDED THAT THE FORM OF THE CONTRACT HAS
BEEN APPROVED BY OWNER) SHALL NEGOTIATE AND ENTER INTO BONA FIDE CONTRACTS WITH
PARTIES THAT ARE NOT AFFILIATES OF MANAGER FOR TERMS NO LONGER THAN ONE (1) YEAR
FOR ELECTRICITY, GAS, FUEL, WATER, TELEPHONE, WINDOW CLEANING, ASH OR RUBBISH
HAULING, VERMIN EXTERMINATION, JANITORIAL SERVICES, LANDSCAPE MAINTENANCE AND
SUCH OTHER MAINTENANCE SERVICES FOR THE PROPERTY AS MANAGER SHALL REASONABLY
DETERMINE TO BE ADVISABLE ("SERVICE CONTRACTS").
ALL SERVICE CONTRACTS:
(I)
SHALL BE IN THE NAME OF MANAGER AS AGENT FOR OWNER, (II) SHALL BE FREELY
ASSIGNABLE, AT OWNER'S OPTION, TO OWNER'S NOMINEE AND (III) SHALL BE TERMINABLE
BY OWNER, AT OWNER'S ELECTION, UPON NO MORE THAN THIRTY (30) DAYS' NOTICE
WITHOUT PENALTY OR PREMIUM.
EACH SERVICE CONTRACT SHALL PROVIDE THAT THE
SERVICE PROVIDER THEREUNDER MUST OBTAIN THE INSURANCE DESCRIBED IN SECTION 3.4
HEREOF AND MUST PROVIDE SATISFACTORY EVIDENCE OF SUCH INSURANCE TO MANAGER.
UNLESS OWNER SPECIFICALLY WAIVES SUCH REQUIREMENT, ALL SERVICE CONTRACTS SHALL
BE SUBJECT TO BID EVERY THREE (3) YEARS OR MORE FREQUENTLY IF DEEMED NECESSARY
BY OWNER.
NOTWITHSTANDING THE FOREGOING, MANAGER SHALL NOT, WITHOUT THE PRIOR
WRITTEN CONSENT OF OWNER, ENTER INTO ANY SERVICE CONTRACT UNLESS PROVIDED FOR IN
THE APPROVED ANNUAL BUSINESS PLAN.
(B)
EXHIBIT E LISTS ALL SERVICE CONTRACTS IN EXISTENCE AS OF THE DATE
OF THIS AGREEMENT AND, FOR EACH SUCH CONTRACT, ACCURATELY SETS FORTH THE
CONTRACT DATE, THE NAME OF THE SERVICE PROVIDER, THE NATURE OF THE SERVICE AND
THE LENGTH AND ECONOMIC TERMS OF THE CONTRACT.
MANAGER SHALL ANNUALLY, EACH
NOVEMBER, UPDATE EXHIBIT E SO THAT IT CONTAINS AN ACCURATE AND COMPLETE
DESCRIPTION OF SERVICE CONTRACTS AFFECTING THE PROPERTY.
2.10
COLLECTION OF RENTS AND OTHER INCOME.
SUBJECT TO SECTION 2.13(B),
MANAGER WILL USE DILIGENT EFFORTS TO COLLECT ALL RENTS AND OTHER CHARGES WHICH
MAY BECOME DUE AT ANY TIME FROM
10
ANY TENANT OR FROM OTHERS IN CONNECTION WITH OR FOR THE USE OF THE PROPERTY AND
WILL USE ITS BEST EFFORTS TO ENSURE TENANTS' COMPLIANCE WITH THEIR RESPECTIVE
LEASES.
MANAGER WILL COLLECT AND IDENTIFY ANY INCOME FROM MISCELLANEOUS
SERVICES PROVIDED TO TENANTS OR THE PUBLIC FROM PARKING INCOME, FURNITURE
RENTAL, CLEANING SERVICES, TENANT STORAGE AND