Common use of Capital Reserve Clause in Contracts

Capital Reserve. Beginning on January 25, 1999, and continuing on the twenty-fifth (25th) day of each Loan Month thereafter, Borrower shall deposit with Lender on a monthly basis a reserve of not less than four percent (4%) of Gross Revenues for the preceding Accounting Period. So long as no Event of Default or Incipient Default (other than an Incipient Default which is susceptible to cure and as to which Borrower is diligently pursuing such cure) shall exist, Lender shall make said funds available to Borrower on the following terms and conditions: (i) all Capital Reserve funds released by Lender to Borrower shall be used to pay Borrower for the reasonable expenses actually incurred by Borrower for the acquisition, repair, or replacement of furniture, fixtures or equipment necessary for the management and operation of the Property (based on invoices furnished by Borrower) under an annual budget approved by Lender for said acquisitions, repairs and replacements; (ii) all requests by Borrower for a disbursement of Capital Reserve funds shall be in writing and shall not be made more frequently than once per Loan Month; (iii) each such request for a disbursement shall be in an amount of not less than $10,000.00; and (iv) Borrower shall provide Lender with invoices, contracts providing for progress payments or paid receipts covering the expenses for which Borrower seeks payment or reimbursement from the Capital Reserve funds. Prior to the disbursement of any Capital Reserve funds, Borrower shall also provide Lender with (i) evidence satisfactory to Lender that Borrower has accepted possession of said items and commenced using the same in the management and operation of the Property, or the applicable contract requires an advance payment prior to manufacture or delivery and (ii) paid receipts covering the expenses for which Capital Reserve funds were previously disbursed.

Capital Reserve. Beginning on January 25, 1999, and continuing on By not later than the twenty-fifth (25th) day of each Loan Month thereafterAmendment No. 1 Closing Date, Borrower shall have established the Capital Reserve Account and funded the Capital Reserve with a portion of the proceeds of the Medley Loan. Agent shall have sole and exclusive dominion and control over the Capital Reserve Account and the Capital Reserve at all times. Upon any Event of Default, whether in regard to the payment of interest on the Loans or otherwise, Agent may, and at the request of the Required Lenders, Agent shall, use funds on deposit in the Capital Reserve to pay any obligations then due and owing to Agent or the Lenders but unpaid by the Borrower in accordance with Lender on the provisions of Section 2.6.2(b), provided that the application thereof shall not constitute a monthly basis a reserve cure or waiver of not less than four percent (4%) of Gross Revenues for the preceding Accounting Period. So long as no any Event of Default or Incipient then existing in regard thereto. The Capital Reserve shall at all times constitute additional Collateral pending its use as provided hereinabove. Notwithstanding the foregoing, however, unless an Event of Default (other than an Incipient Default has occurred which is susceptible to cure and as to which Borrower is diligently pursuing such cure) shall existthen continuing, Lender shall make said funds available to Borrower on the following terms and conditions: (i) all Capital Reserve funds released by Lender to Borrower shall be used to pay Borrower for the reasonable expenses actually incurred by Borrower for the acquisition, repair, or replacement of furniture, fixtures or equipment necessary for the management and operation of the Property (based on invoices furnished by Borrower) under an annual budget approved by Lender for said acquisitions, repairs and replacements; (ii) all requests by Borrower for a disbursement of Capital Reserve funds shall be in writing and shall not be made more frequently than once per Loan Month; (iii) each such request for a disbursement shall be in an amount of not less than $10,000.00; and (iv) Borrower shall provide Lender with invoices, contracts providing for progress payments or paid receipts covering the expenses for which Borrower seeks payment or reimbursement from the Capital Reserve funds. Prior (or so much thereof as is then existing) shall be subject to release upon the happening of the events and in the amounts specified below: (1) if Borrower’s EBITDA, determined for its 2011 fiscal year from its annual, audited financial statements, is at least $5,000,000, then, an amount equal to 50% of the Capital Reserve then existing shall be returned to Borrower, and (2) if Borrower has complied with clause (1) above, and received the portion of the Capital Reserve referenced therein, then, if Borrower’s EBITDA, measured on a fiscal quarter basis, for any fiscal quarter ending subsequent to the disbursement end of any Borrower’s 2011 fiscal year, is at least $1,500,000, the remainder of the Capital Reserve fundsshall be returned to Borrower, provided that no such return shall be made pursuant to this clause (2) any sooner then September 11, 2012 regardless when such quarterly EBITDA amount is achieved; provided, further, that, any return of the Capital Reserve shall be conditioned upon the understanding that the Borrower shall also provide Lender will use the monies returned only to finance the purchase of (or reimburse itself from funds expended on the purchase of) machinery and equipment for use in its business with (i) evidence satisfactory to Lender any remainder being used for proper corporate purposes consistent with the terms of this Agreement, that Borrower has accepted possession will keep records of said items such expenditures, and commenced using the same in the management that Borrower will provide Agent with an accounting of such expenditures as and operation of the Property, or the applicable contract requires an advance payment prior when requested by Agent from time to manufacture or delivery and (ii) paid receipts covering the expenses for which Capital Reserve funds were previously disbursedtime.

Capital Reserve. Beginning on January 25, 1999, and continuing on On the twenty-fifth (25th) first day of each Loan Month thereafterMonth, Borrower shall deposit with Lender on a monthly basis a reserve of not less than four two percent (42%) of the Gross Revenues for the preceding Accounting PeriodLoan Month. So long as no Event of Default or Incipient Default (other than an Incipient Default which is susceptible to cure and as to which Borrower is diligently pursuing such cure) shall exist, Lender shall make said funds available to Borrower on the following terms and conditions: (i) all Capital Reserve funds released by Lender to Borrower shall be used to pay reimburse Borrower for the reasonable expenses actually incurred and paid by Borrower for the acquisition, repair, or replacement of furniture, fixtures or equipment necessary for the management and operation of the Property (based on invoices furnished by Borrower) or other capital improvements to the golf course under an annual budget approved by Lender for said acquisitions, repairs repairs, replacements and replacementsimprovements; (ii) all requests by Borrower for a disbursement of Capital Reserve funds shall be in writing and shall not be made more frequently than once per Loan Month; (iii) each such request for a disbursement shall be in an amount of not less than $10,000.00; and (iv) Borrower shall provide Lender with invoices, contracts providing for progress payments or paid receipts covering the expenses for which Borrower seeks payment or reimbursement from the Capital Reserve funds. Lender shall have the right, at Lender's sole discretion, to disburse Capital Reserve funds directly to Borrower from time to time prior to the payment of the applicable expenses by Borrower, but such disbursements shall not obligate Lender to make subsequent advances of Capital Reserve funds prior to payment of the applicable expenses. Prior to the disbursement of any Capital Reserve funds, Borrower shall also provide Lender with (i) evidence satisfactory to Lender that Borrower has accepted possession of said items and commenced using the same in the management and operation of the Property, or . This SECTION 4.1T shall supersede SECTION 4.1T of the applicable contract requires an advance payment prior to manufacture or delivery and (ii) paid receipts covering the expenses for which Capital Reserve funds were previously disbursedOther Loan Agreement.