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County and (i) SMG and the County shall, as soon as practicable and in no event later than the next event that SMG has identified as being unsafe to hold (the date of which shall have been included in SMG's notice referenced immediately above), agree on the manner in which the Fa- cility shall be operated or on the increased amount of funding necessary to render the operation of the Facility safe or (ii) SMG may terminate this Agreement pursuant to Section 12.2 (with the effect set forth in Section 12.3). In the event of a termination under this Subsection 5.2(c) and if SMG's concerns are addressed within the twelve (12) month period following such ternination, then SMG shall have the right to resume management of the Facility by giving written notice within thirty (30) days of the date such concerns aze addressed, provided that this right to resume management shall expire if not exercised in writing within such thirty (30) day period. 5.3 Annual Budeet: Cash Flow Budeet. (a) As part of the annual plan described in Section 6.2 herein, on or before one hundred twe~y (120) days prior to the end of each Fiscal Year, SMG will prepare apro- posed annual operating budget for the next Fiscal Year to meet the scope of services and objec- tives under this Agreement. Such budget shall contain appropriate line items for revenues and expenses and the projected net operating deficit or surplus. (b) SMG shall prepare aad submit to the Contract Administrator on or before one hundred twenty (120) days prior to the end of each Fiscal Year a proposed annual cash Bow budget for the succeeding Fiscal Year. (c) The annual budgets refeaed to in subparagraphs (a) and (b) above shall be reviewed and are subject to approval by the County. On or before the date of the Cabarrus County Commissioners' last regularly-scheduled meeting prior to the end of each Fiscal Year, the County shall notify SMG of any changes to the annual operating budget and the cash flow funding budget for the succeeding Fiscal Year proposed by SMG and with such changes, if any, as are made by the County. In the event that SMG agrees to such changes, which agreement shall not be unreasonably withheld, conditioned or delayed, such budgets shall be the Approved Budgets for the upcoming Fiscal Year and, if the parties cannot agree on Approved Budgets for the upcoming Fiscal Year, then the previous Fiscal Year's Approved Budgets shall be Uie Ap- proved Budgets for such upcoming Fiscal Year until a new budget is agreed upon by the parties. 5.4 Budget Modifications Initiated by SMG. SMG may submit to the Contract Administrator at any tune prioz to the close of a Fiscal Year a supplemental or revised annual operating budget or cash flow budget for such Fis- cal Year. Upon the approval of the County of such supplemental or revised budget, the Approved Budgets for such Fiscal Year shall be deemed amended to incorporate such supplemental or re- visedbudget. The Approved Budgets may only be ameixled as set forth in Section 5.5 below or in the two preceding sentences except that SMG shall have the right to propose amendments to the Approved Budgets for approval by the County as may be necessary or appropriate as the re- sult ofthe scheduling by SMG of additional eves or activities at the Facility (and the incur- rence of additional Operating Expenses arising from the scheduling of additonwl events or ac- tivities at the Facility) as long as prior to the scheduling of such events or activities, SMG had a rcviead u6am~aagwren[v&ml rea.aocmvisoa cebarnu eyeeemoM Venal ~ed.doc OI995-2fIC 14 ~3