Common use of Capital Additions Clause in Contracts

Capital Additions. Subject to the provisions of Paragraph 10(c) of the Agreement Regarding Leases, during each Lease Year of the Term, Tenant shall expend on Capital Additions made to the Facilities, in the aggregate, an amount at least equal to the Minimum Capital Additions Amount. As used herein, the term "Minimum Capital Additions Amount" shall mean, with respect to the Facilities, the product of (i) the number of units contained in the Facilities (in the aggregate) multiplied by (ii) Four Hundred Dollars ($400) during the first (1st) year of the Term, as such amount shall be increased on the first day of each succeeding Lease Year of the Term after the first Lease Year of the Term in proportion to increases in the Consumer Index, provided that in no event shall the Minimum Capital Additions Amount be less than the Minimum Capital Additions Amount for the prior Lease Year. If in any Lease Year Tenant fails to expend the entire Minimum Capital Additions Amount, as required pursuant to this Paragraph 25(d), prior to the end of such Lease Year, Tenant shall pay any such shortfall amount to Landlord, which funds shall be deposited into the Capital Additions Reserve (as defined in the Agreement Regarding Leases) (or a similar account required in connection with any Facility Mortgage(s)), for expenditure by Tenant as required herein. If Tenant funds any such shortfall amount to the Capital Additions Reserve prior to the end of the applicable Lease Year, no default shall be deemed to have occurred hereunder. Provided no Event of Default exists hereunder any such escrowed funds shall be disbursed by Landlord from time to time during the Term, in accordance with the terms and conditions set forth in Paragraph 10(d) of the Agreement Regarding Leases, to be used in connection with Capital Additions requiring funds in the applicable Lease Year in excess of the Minimum Capital Additions Amount, as more particularly described in Paragraph 10(c) and Paragraph 10(d) of the Agreement Regarding Leases. Subject to the provisions of Paragraph 12(a) of the Agreement Regarding Leases, the Minimum Capital Additions Amount may be adjusted from time to time based on the requirements of any Facility Mortgagee, provided any such provisions regarding the funding of capital replacement reserves under any future Facility Mortgage shall be in compliance with the requirements of Paragraph 54(b). In addition, Landlord and Tenant agree to review the Minimum Capital Additions Amount periodically (but in no event less than annually), to provide for the proper operation and maintenance of each of the Facilities.

Capital Additions. Subject If Seller has made any addition, improvement, upgrade and/or other modification to the Transmission Facilities, in whole or in part, the cost of which constitutes a capital expenditure, and such cost has not been reflected, in whole or in part, in the net book value of the Transmission Facilities as of the Closing Date (whether due to the submission, processing and/or payment of related invoices, the administrative timing associated with record keeping and/or any other reason), then the Purchase Price shall be increased to include such capital costs not reflected in the net book value of the Transmission Facilities. Not less than ten (10) Business Days prior to the Closing Date, Seller shall furnish Buyer with an estimate of any capital additions that may be subject to this Section 3.2(c), together with such documents and other records that may be reasonably necessary to confirm the costs associated with such capital additions. To the extent that certain capital costs are not yet fixed (including due to any capital addition pending as of such date), Seller shall be entitled to estimate all or any portion of the adjustment under this Section 3.2(c). If Seller has estimated any capital cost, Seller shall issue a final adjustment within a reasonable time after accounting for all such capital costs, and Seller shall refund, or Buyer shall pay, as the case may be, the amount due under such final adjustment within thirty (30) days after receipt thereof. The Parties shall negotiate in good faith to reconcile any differences with respect to such capital addition(s) and/or the adjustment resulting therefrom pursuant to this Section 3.2(c). If the Parties have not reconciled their differences regarding such adjustment as of the Closing Date, the Parties shall consummate the Closing based on Seller's calculation of the adjustment, and thereafter, the Parties shall wait until Seller has received and accounted for such capital costs before determining the final adjustment and associated true-up payment as contemplated above. Nothing in this Section 3.2(c) shall apply to, and/or affect the provisions of Paragraph 10(c) of the O&M Agreement Regarding Leasesregarding, during each Lease Year of the Term, Tenant shall expend on Capital Additions made capital additions to the Facilities, in the aggregate, an amount at least equal to the Minimum Capital Additions Amount. As used herein, the term "Minimum Capital Additions Amount" shall mean, with respect to the Facilities, the product of (i) the number of units contained in the Transmission Facilities (in the aggregate) multiplied by (ii) Four Hundred Dollars ($400) during the first (1st) year of the Term, as such amount shall be increased on the first day of each succeeding Lease Year of the Term made after the first Lease Year of the Term in proportion to increases in the Consumer Index, provided that in no event shall the Minimum Capital Additions Amount be less than the Minimum Capital Additions Amount for the prior Lease Year. If in any Lease Year Tenant fails to expend the entire Minimum Capital Additions Amount, as required pursuant to this Paragraph 25(d), prior to the end of such Lease Year, Tenant shall pay any such shortfall amount to Landlord, which funds shall be deposited into the Capital Additions Reserve (as defined in the Agreement Regarding Leases) (or a similar account required in connection with any Facility Mortgage(s)), for expenditure by Tenant as required herein. If Tenant funds any such shortfall amount to the Capital Additions Reserve prior to the end of the applicable Lease Year, no default shall be deemed to have occurred hereunder. Provided no Event of Default exists hereunder any such escrowed funds shall be disbursed by Landlord from time to time during the Term, in accordance with the terms and conditions set forth in Paragraph 10(d) of the Agreement Regarding Leases, to be used in connection with Capital Additions requiring funds in the applicable Lease Year in excess of the Minimum Capital Additions Amount, as more particularly described in Paragraph 10(c) and Paragraph 10(d) of the Agreement Regarding Leases. Subject to the provisions of Paragraph 12(a) of the Agreement Regarding Leases, the Minimum Capital Additions Amount may be adjusted from time to time based on the requirements of any Facility Mortgagee, provided any such provisions regarding the funding of capital replacement reserves under any future Facility Mortgage shall be in compliance with the requirements of Paragraph 54(b). In addition, Landlord and Tenant agree to review the Minimum Capital Additions Amount periodically (but in no event less than annually), to provide for the proper operation and maintenance of each of the FacilitiesClosing Date.