arena lease and management agreement city of glendale, arizona ...

SUBSTANTIAL FINAL DRAFT 11/27/12 12:35
(b) The Arena Manager may from time to time, after notice to the City and
the Team Owner, reallocate all or part of the amounts allocated to one or more expense line items in the
then applicable Annual Budget so long as such reallocations do not increase the total aggregate amount of
all of the expense items in such Annual Budget or materially change the projected timing of revenues and
expenses.
8.14.28.15.2 Unbudgeted Expenses.
(a) Circumstances may arise that require, in the reasonable opinion of the
Arena Manager, unbudgeted expenses (whether as Operating Expenses or expenditures for Capital
Improvements), and in each such case, the Arena Manager shall within a reasonable time provide notice
to the City and the Team Owner of such unbudgeted expenses and, if and only if the quarterly variance
for such unbudgeted expenses is more than 10% of the amount budgeted for Operating Expenses for such
Fiscal Quarter (which, for the avoidance of doubt, will not be cumulative with any prior Fiscal Quarter),
the Arena Manager shall provide a reasonably detailed explanation of the circumstances giving rise to
such expenses.
(b) If the City refuses to recognize such unbudgeted expenses as Operating
Expenses or expenditures for Capital Improvements, such dispute shall be resolved by Arbitration as
provided herein.
8.14.38.15.3 Emergencies. The Arena Manager shall, promptly after acquiring
knowledge that an Emergency exists, give notice to the City and the Team Owner of the existence of such
Emergency and a description of the circumstances of such Emergency.
(a) If the Arena Manager determines that Capital Improvements are required
to alleviate such Emergency, the Arena Manager shall promptly notify the City and the Team Owner of
the need to make such Capital Improvements and the nature of the same; and
(b) The Arena Manager shall undertake the emergency Capital
Improvements, subject, in each case, to the City’s responsibility to provide for, and to reimburse the
Arena Manager for its incurrence of any costs relating to, such Capital Improvements.
(c) If the City refuses to recognize such expenditures as Capital
Improvements necessary to alleviate an Emergency, such dispute shall be resolved by Arbitration as
provided herein.
8.14.48.15.4 Monitoring of Budget. The Arena Manager shall, on an ongoing basis
during each Fiscal Year, (i) monitor all actual expenses and revenues; (ii) compare such actual revenues
and expenses to the corresponding categories of budgeted expenses and revenues for such Fiscal Year;
and (iii) promptly give notice to the City and the Team Owner of any circumstances that indicate to the
Arena Manager that there may be a need to incur unbudgeted expenses.
8.158.16 Financial Reports..
8.15.18.16.1 Periodic Reports. Commencing on the Closing Date and continuing
during the Term, the Arena Manager shall provide to the parties the following financial reports in a
format and with a level of detail reasonably agreed to by the parties:
(a) Monthly Financial Reports. Not later than the last day of each calendar
month, (a) a statement setting forth the prior calendar month’s Operating Revenues, Operating Expenses,
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