Common use of Construction of Capital Additions to the Clause in Contracts

Construction of Capital Additions to the. Leased Property. Provided no Event of Default shall have occurred and be continuing, Tenant shall have the right, subject to obtaining Landlord's prior written consent (which consent shall not be unreasonably withheld or delayed), upon and subject to the terms and conditions set forth below, to construct or install Capital Additions on the Leased Property. Landlord's consent shall not be deemed to be unreasonably withheld if such Capital Addition will significantly alter the character or purpose or detract from the value or operating efficiency or the revenue-producing capability of the Leased Property, or adversely affect the ability of Tenant to comply with this Lease. Any withholding of consent shall be express and shall be effected within thirty (30) days after receipt by Landlord of such documents or information as Landlord may reasonably require, notice of which requirements shall be sent to Tenant within thirty (30) days after Tenant's request. Failure to give notice of the withholding of such consent within such thirty (30) day period shall be deemed approval. Prior to commencing construction of any Capital Addition, Tenant shall submit to Landlord, in writing, a proposal setting forth, in reasonable detail any proposed Capital Addition and shall provide Landlord with such plans and specifications, permits, licenses, contracts and other information concerning the proposed Capital Addition as Landlord may reasonably request. Without limiting the generality of the foregoing, such proposal shall indicate the approximate projected cost of constructing such Capital Addition, the use or uses to which it will be put and a good faith estimate of the change, if any, in the Net Patient Revenues that Tenant anticipates will result from such Capital Addition. Prior to commencing construction of any Capital Addition, Tenant shall request in writing that Landlord provide funds to pay for such Capital Addition. If, within sixty (60) days after receipt of such request, Landlord shall not elect to provide such financing on terms reasonably acceptable to Tenant (and, for purposes of this Section 6.1, the failure of Landlord to respond within such 60 day period shall be deemed an election not to provide such funding), the provisions of Section 6.2 shall apply. Landlord's notice of its election to provide such financing shall set forth the terms and conditions of such proposed financing, including the terms of any amendment to this Lease (including, without limitation, an increase in Minimum Rent to compensate Landlord for the additional funds advanced). In no event shall the portion of the projected Capital Additions Cost comprised of land, if any, materials, labor charges and fixtures be less than eighty percent (80%) of the total amount of such cost. Tenant may withdraw its request by written notice to Landlord at any time before Tenant's written acceptance of Landlord's terms and conditions. If Landlord declines to finance a Capital Addition or if Landlord's proposed financing terms are unacceptable to Tenant, Tenant may solicit and negotiate a commitment for such financing from another Person, provided Landlord shall approve all the terms and conditions of such financing (which approval shall not be unreasonably withheld or delayed). If Landlord shall finance the proposed Capital Addition, Tenant shall pay to Landlord, as Additional Rent, all reasonable costs and expenses paid or incurred by Landlord and any Lending Institution which has committed to provide financing for such Capital Addition to Landlord in connection therewith, including, but not limited to, (a) the reasonable attorneys, fees and expenses, (b) all printing expenses, (c) all filing, registration and recording taxes and fees, (d) documentary stamp taxes, (e) title insurance charges, appraisal fees, and rating agency fees, and (f) commitment fees. No Capital Addition shall be made which would tie in or connect any Leased Improvement or any Leased Property with any other improvements on property adjacent to such Leased Property (and not part of the Land) including, without limitation, tie-ins of buildings or other structures or utilities, unless Tenant shall have obtained the prior written approval of Landlord, which approval may be withheld by Landlord in Landlord's sole discretion. Any Capital Additions shall, upon the expiration or sooner termination of this Lease, become the property of Landlord, free and clear of all encumbrances, subject to the provisions of Section 6.2.

Appears in 2 contracts

Samples: Lease Agreement (Senior Housing Properties Trust), Settlement Agreement (Senior Housing Properties Trust)

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Construction of Capital Additions to the. Leased Property. Provided no Event of Default shall have occurred and be continuing, Tenant shall have the right, subject to obtaining Landlord's prior written consent (which consent shall not be unreasonably withheld or delayed), upon and subject to the terms and conditions set forth below, to construct or install Capital Additions on the applicable Leased Property without obtaining Landlord's prior written consent, provided that no consent shall be required for any Capital Addition so long as (a) the Capital Additions Costs for such Capital Addition are less than $250,000, (b) such construction or installation would not adversely affect or violate any Legal Requirement or Insurance Requirement applicable to the applicable Leased Property, (c) such construction or installation is not expected, in Tenant's reasonable opinion, to result in a decrease of the Net Patient Revenues for such Leased Property on an aggregate basis for the twelve (12) month period following completion of construction, and (d) Landlord shall have received an Officer's Certificate certifying as to the satisfaction of the conditions set out in clauses (a) (b) and (c) above. If Landlord's consent shall not be deemed to be unreasonably withheld if such Capital Addition will significantly alter the character or purpose or detract from the value or operating efficiency or the revenue-producing capability of the Leased Propertyis required, or adversely affect the ability of Tenant to comply with this Lease. Any withholding of consent shall be express and shall be effected within thirty (30) days after receipt by Landlord of such documents or information as Landlord may reasonably require, notice of which requirements shall be sent to Tenant within thirty (30) days after Tenant's request. Failure to give notice of the withholding of such consent within such thirty (30) day period shall be deemed approval. Prior prior to commencing construction of any Capital xxx Xxxital Addition, Tenant shall submit to Landlord, in writing, a proposal setting forth, in reasonable detail detail, any proposed Capital Addition and shall provide Landlord with to Landlord, such plans and specifications, permits, licenses, contracts and other information concerning the proposed Capital Addition as Landlord may reasonably request. Without limiting the generality of the foregoing, such proposal shall indicate the approximate projected cost of constructing such Capital Addition, the use or uses to which it will be put and a good faith estimate of the change, if any, in the Net Patient Revenues that Tenant anticipates will result from such Capital Addition. Prior to commencing construction of any Capital Addition, Tenant shall request in writing that Landlord provide funds to pay for such Capital Addition. If, within sixty (60) days after receipt of such request, Landlord shall not elect to provide such financing on terms reasonably acceptable to Tenant (and, for purposes of this Section 6.1, the failure of Landlord to respond within such 60 day period shall be deemed an election not to provide such funding), the provisions of Section 6.2 shall apply. Landlord's notice of its election to provide such financing shall set forth the terms and conditions of such proposed financing, including the terms of any amendment to this Lease (including, without limitation, an increase in Minimum Rent to compensate Landlord for the additional funds advanced). In no event shall the portion of the projected Capital Additions Cost comprised of land, if any, materials, labor charges and fixtures be less than eighty percent (80%) of the total amount of such cost. Tenant may withdraw its request by written notice to Landlord at any time before Tenant's written acceptance of Landlord's terms and conditions. If Landlord declines to finance a Capital Addition or if Landlord's proposed financing terms are unacceptable to Tenant, Tenant may solicit and negotiate a commitment for such financing from another Person, provided Landlord shall approve all the terms and conditions of such financing (which approval shall not be unreasonably withheld or delayed). If Landlord shall finance the proposed Capital Addition, Tenant shall pay to Landlord, as Additional Rent, all reasonable costs and expenses paid or incurred by Landlord and any Lending Institution which has committed to provide financing for such Capital Addition to Landlord in connection therewith, including, but not limited to, (a) the reasonable attorneys, fees and expenses, (b) all printing expenses, (c) all filing, registration and recording taxes and fees, (d) documentary stamp taxes, (e) title insurance charges, appraisal fees, and rating agency fees, and (f) commitment fees. No Capital Addition shall be made which would tie in or connect any Leased Improvement or any on the applicable Leased Property with any other improvements on property adjacent to such Leased Property (and not part of the Land) including, without limitation, tie-ins of buildings or other structures or utilities, unless . Tenant shall have obtained not finance the cost of any construction of any Capital Addition without the prior written approval consent of Landlord, which approval consent may be withheld by Landlord in Landlord's sole discretion. Any Capital Additions (including Tenant's Capital Additions) shall, upon the expiration or sooner termination of this Leasethe applicable Lease for such Leased Property, pass to and become the property of Landlord, free and clear of all encumbrances, encumbrances other than Permitted Encumbrances but subject to the provisions of Section 6.2Landlord's obligation to compensate Tenant for Tenant's Capital Additions as provided below.

Appears in 1 contract

Samples: Master Lease Document (Senior Housing Properties Trust)

Construction of Capital Additions to the. Leased Property. Provided no Event of Default shall have occurred and be continuing, Tenant shall have the right, subject to obtaining Landlord's prior written consent (which consent shall not be unreasonably withheld or delayed), upon and subject to the terms and conditions set forth below, to construct or install Capital Additions on the applicable Leased Property without obtaining Landlord's prior written consent, provided that no consent shall be required for any Capital Addition so long as (a) the Capital Additions Costs for such Capital Addition are less than $250,000, (b) such construction or installation would not adversely affect or violate any Legal Requirement or Insurance Requirement applicable to the applicable Leased Property, (c) such construction or installation could not reasonably be expected to result in a decrease in the Fair Market Value or the Fair Market Rental for such Leased Property, and (d) Landlord shall have received an Officer's Certificate certifying as to the satisfaction of the conditions set out in clauses (a), (b) and (c) above. If Landlord's consent shall not be deemed to be unreasonably withheld if such Capital Addition will significantly alter the character or purpose or detract from the value or operating efficiency or the revenue-producing capability of the Leased Propertyis required, or adversely affect the ability of Tenant to comply with this Lease. Any withholding of consent shall be express and shall be effected within thirty (30) days after receipt by Landlord of such documents or information as Landlord may reasonably require, notice of which requirements shall be sent to Tenant within thirty (30) days after Tenant's request. Failure to give notice of the withholding of such consent within such thirty (30) day period shall be deemed approval. Prior prior to commencing construction of any Capital Addition, Tenant shall submit to Landlord, in writing, a proposal setting forth, in reasonable detail detail, any proposed Capital Addition and shall provide Landlord with to Landlord, such plans and specifications, and such available permits, licenses, contracts and other information concerning the proposed Capital Addition as Landlord may reasonably request. Landlord shall have thirty (30) days to review all materials submitted to Landlord in connection with any such proposal. Failure of Landlord to respond to Tenant's proposal within thirty-five (35) days after receipt of all information and materials requested by Landlord in connection with the proposed Capital Addition shall be deemed to constitute approval of such proposed Capital Addition. Without limiting the generality of the foregoing, such proposal shall indicate the approximate projected cost of constructing such Capital Addition, the use or uses to which it will be put and a good faith estimate of the change, if any, in the Net Patient Revenues Fair Market Value or the Fair Market Rental that Tenant anticipates will result from such Capital Addition. Prior to commencing construction of any Capital Addition, Tenant shall request in writing that Landlord provide funds to pay for such Capital Addition. If, within sixty (60) days after receipt of such request, Landlord shall not elect to provide such financing on terms reasonably acceptable to Tenant (and, for purposes of this Section 6.1, the failure of Landlord to respond within such 60 day period shall be deemed an election not to provide such funding), the provisions of Section 6.2 shall apply. Landlord's notice of its election to provide such financing shall set forth the terms and conditions of such proposed financing, including the terms of any amendment to this Lease (including, without limitation, an increase in Minimum Rent to compensate Landlord for the additional funds advanced). In no event shall the portion of the projected Capital Additions Cost comprised of land, if any, materials, labor charges and fixtures be less than eighty percent (80%) of the total amount of such cost. Tenant may withdraw its request by written notice to Landlord at any time before Tenant's written acceptance of Landlord's terms and conditions. If Landlord declines to finance a Capital Addition or if Landlord's proposed financing terms are unacceptable to Tenant, Tenant may solicit and negotiate a commitment for such financing from another Person, provided Landlord shall approve all the terms and conditions of such financing (which approval shall not be unreasonably withheld or delayed). If Landlord shall finance the proposed Capital Addition, Tenant shall pay to Landlord, as Additional Rent, all reasonable costs and expenses paid or incurred by Landlord and any Lending Institution which has committed to provide financing for such Capital Addition to Landlord in connection therewith, including, but not limited to, (a) the reasonable attorneys, fees and expenses, (b) all printing expenses, (c) all filing, registration and recording taxes and fees, (d) documentary stamp taxes, (e) title insurance charges, appraisal fees, and rating agency fees, and (f) commitment fees. No Capital Addition shall be made which would tie in or connect any Leased Improvement or any on the applicable Leased Property with any other improvements on property adjacent to such Leased Property (and not part of the Land) including, without limitation, tie-ins of buildings or other structures or utilities, unless . Tenant shall have obtained not finance the prior written approval cost of Landlord, which approval may be withheld by Landlord any construction of any Capital Addition except as provided in Landlord's sole discretionSection 6.2.1. Any Capital Additions (including Tenant's Capital Additions) shall, upon the expiration or sooner termination of this Leasethe applicable Lease for such Leased Property, pass to and become the property of Landlord, free and clear of all encumbrances, encumbrances other than Permitted Encumbrances but subject to the provisions of Section 6.2Landlord's obligation to compensate Tenant for Tenant's Capital Additions as provided below.

Appears in 1 contract

Samples: Master Lease Agreement (Senior Housing Properties Trust)

Construction of Capital Additions to the. Leased Property. Provided no Default or Event of Default shall have occurred and be continuing, Tenant shall have the right, subject to obtaining Landlord's prior written consent (which consent shall not be unreasonably withheld or delayed), upon and subject to the terms and conditions set forth below, to construct or install Capital Additions on the Leased Property. Landlord's consent shall not be deemed to be unreasonably withheld if such Capital Addition will significantly alter the character or purpose or detract from the value or operating efficiency or the revenue-producing capability of the Leased Property, or adversely affect the ability of Tenant to comply with this Lease. Any withholding of consent shall be express and shall be effected within thirty (30) days after receipt by Landlord of such documents or information as Landlord may reasonably require, notice of which requirements shall be sent to Tenant within thirty (30) days after Tenant's request. Failure to give notice of the withholding of such consent within such thirty (30) day period shall be deemed approval. Prior to commencing construction of any Capital Addition, Tenant shall submit to Landlord, in writing, a proposal setting forth, in reasonable detail detail, any proposed Capital Addition and shall provide Landlord with such plans and specifications, permits, licenses, contracts and other information concerning the proposed Capital Addition as Landlord may reasonably request. Without limiting the generality of the foregoing, such proposal shall indicate the approximate projected cost of constructing such Capital Addition, the use or uses to which it will be put and a good faith estimate of the change, if any, in the Net Patient Revenues that Tenant anticipates will result from such Capital Addition. Prior to commencing construction of any Capital Addition, Tenant shall request in writing that Landlord provide funds to pay for such Capital Addition. If, within sixty (60) days after receipt of such request, Landlord shall not elect to provide such financing on terms reasonably acceptable to Tenant (and, for purposes of this Section 6.1, the failure of Landlord to respond within such 60 day period shall be deemed an election not to provide such funding), the provisions of Section 6.2 shall apply. Landlord's notice of its election to provide such financing shall set forth the terms and conditions of such proposed financing, including the terms of any amendment to this Lease (including, without limitation, an increase in Minimum Rent to compensate Landlord for the additional funds advanced). In no event shall the portion of the projected Capital Additions Cost comprised of land, if any, materials, labor charges and fixtures be less than eighty percent (80%) of the total amount of such cost. Tenant may withdraw its request by written notice to Landlord at any time before Tenant's written acceptance of Landlord's terms and conditions. If Landlord declines to finance a Capital Addition or if Landlord's proposed financing terms are unacceptable to Tenant, Tenant may solicit and negotiate a commitment for such financing from another Person, provided Landlord shall approve all the terms and conditions of such financing (which approval shall not be unreasonably withheld or delayed). If Landlord shall finance the proposed Capital Addition, Tenant shall pay to Landlord, as Additional Rent, all reasonable costs and expenses paid or incurred by Landlord and any Lending Institution which has committed to provide financing for such Capital Addition to Landlord in connection therewith, including, but not limited to, (a) the reasonable attorneys, fees and expenses, (b) all printing expenses, (c) all filing, registration and recording taxes and fees, (d) documentary stamp taxes, (e) title insurance charges, appraisal fees, and rating agency fees, and (f) commitment fees. No Capital Addition shall be made which would tie in or connect any Leased Improvement or any Leased Property with any other improvements on property adjacent to such Leased Property (and not part of the Land) including, without limitation, tie-ins of buildings or other structures or utilities, unless Tenant shall have obtained the prior written approval of Landlord, which approval may be withheld by Landlord in Landlord's sole sole, discretion. Any Capital Additions shall, upon the expiration or sooner termination of this Lease, become the property of Landlord, free and clear of all encumbrances, subject to the provisions of Section 6.2.

Appears in 1 contract

Samples: Lease Agreement (Senior Housing Properties Trust)

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Construction of Capital Additions to the. Leased Property. Provided no Default or Event of Default shall have occurred and be continuing, Tenant shall have the right, subject to obtaining Landlord's prior written consent (which consent shall not be unreasonably withheld or delayed), upon and subject to the terms and conditions set forth below, to construct or install Capital Additions on the Leased Property. Landlord's consent shall not be deemed to be unreasonably withheld if such Capital Addition will significantly alter the character or purpose or detract from the value or operating efficiency or the revenue-producing capability of the Leased Property, or adversely affect the ability of Tenant to comply with this Lease. Any withholding of consent shall be express and shall be effected within thirty (30) days after receipt by Landlord of such documents or information as Landlord may reasonably require, notice of which requirements shall be sent to Tenant within thirty (30) days after Tenant's request. Failure to give notice of the withholding of such consent within such thirty (30) day period shall be deemed approval. Prior to commencing construction of any Capital Addition, Tenant shall submit to Landlord, in writing, a proposal setting forth, in reasonable detail detail, any proposed Capital Addition and shall provide Landlord with such plans and specifications, permits, licenses, contracts and other information concerning the proposed Capital Addition as Landlord may reasonably request. Without limiting the generality of the foregoing, such proposal shall indicate the approximate projected cost of constructing such Capital Addition, the use or uses to which it will be put and a good faith estimate of the change, if any, in the Net Patient Revenues that Tenant anticipates will result from such Capital Addition. Prior to commencing construction of any Capital Addition, Tenant shall request in writing that Landlord provide funds to pay for such Capital Addition. If, within sixty (60) days after receipt of such request, Landlord shall not elect to provide such financing on terms reasonably acceptable to Tenant (and, for purposes of this Section 6.1, the failure of Landlord to respond within such 60 day period shall be deemed an election not to provide such funding), the provisions of Section 6.2 shall apply. Landlord's notice of its election to provide such financing shall set forth the terms and conditions of such proposed financing, including the terms of any amendment to this Lease (including, without limitation, an increase in Minimum Rent to compensate Landlord for the additional funds advanced). In no event shall the portion of the projected Capital Additions Cost comprised of land, if any, materials, labor charges and fixtures be less than eighty percent (80%) of the total amount of such cost. Tenant may withdraw its request by written notice to Landlord at any time before Tenant's written acceptance of Landlord's terms and conditions. If Landlord declines to finance a Capital Addition or if Landlord's proposed financing terms are unacceptable to Tenant, Tenant may solicit and negotiate a commitment for such financing from another Person, provided Landlord shall approve all the terms and conditions of such financing (which approval shall not be unreasonably withheld or delayed). If Landlord shall finance the proposed Capital Addition, Tenant shall pay to Landlord, as Additional Rent, all reasonable costs and expenses paid or incurred by Landlord and any Lending Institution which has committed to provide financing for such Capital Addition to Landlord in connection therewith, including, but not limited to, (a) the reasonable attorneys, ' fees and expenses, (b) all printing expenses, (c) all filing, registration and recording taxes and fees, (d) documentary stamp taxes, (e) title insurance charges, appraisal fees, and rating agency fees, and (f) commitment fees. No Capital Addition shall be made which would tie in or connect any Leased Improvement or any Leased Property with any other improvements on property adjacent to such Leased Property (and not part of the Land) including, without limitation, tie-ins of buildings or other structures or utilities, unless Tenant shall have obtained the prior written approval of Landlord, which approval may be withheld by Landlord in Landlord's sole discretion. Any Capital Additions shall, upon the expiration or sooner termination of this Lease, become the property of Landlord, free and clear of all encumbrances, subject to the provisions of Section 6.2.

Appears in 1 contract

Samples: Lease Agreement (Senior Housing Properties Trust)

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