Common use of Minimum Capital Additions Amount Clause in Contracts

Minimum Capital Additions Amount. ALS Holdings shall cause the Alterra Lessees to expend on Capital Additions made to the Facilities during each Lease Year during the Term an amount, in the aggregate, at least equal to the Minimum Capital Additions Amount. As used herein and in the Property Leases, 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) Lease Year of the Term, as such amount shall be increased on the first day of each succeeding Lease Year after the first Lease Year of the Term in proportion to increases in the Consumer Index (as defined in the Property Leases), 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 the Alterra Lessees fail to expend the entire Minimum Capital Additions Amount as required pursuant to this Paragraph 10(c) prior to the end of such Lease Year, such failure shall not constitute a Default or Event of Default hereunder or under the Property Leases so long as ALS Holdings or the applicable Alterra Lessee pays any such shortfall to the applicable Provident Lessor or PSLT-ALS Holdings, which funds shall be deposited into the Capital Additions Reserve (or a similar account required in connection with any Facility Mortgage(s)), for expenditure as required herein and pursuant to Paragraph 25(d) of the Property Leases. Subject to the provisions of Paragraph 12(a) hereof, 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) of the Property Leases. In addition, PSLT-ALS Holdings and ALS Holdings 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.

Minimum Capital Additions Amount. ALS BLC Holdings shall cause each of the Alterra Lessees Brookdale Lessees, in accordance with Paragraph 25(d) of the Property Leases, to expend on Capital Additions made to the Facilities during each Lease Year during the Term an amount, in the aggregate, amount at least equal to the Minimum Capital Additions Amount. As used herein and in the Property Leases, 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) Lease Year of the Term, as such amount shall be increased on the first day of each succeeding Lease Year after the first Lease Year of the Term in proportion to increases in the Consumer Index Amount (as defined in the each Property Leases), provided that in no event shall the Minimum Lease) on Capital Additions Amount with respect each of the Facilities; provided, however, that PSLT-BLC holdings agrees that it shall not be less than the Minimum Capital Additions Amount for the prior a default under any individual Property Lease if during any Lease Year. If in any Lease Year , the Alterra Lessees fail to applicable Brookdale Lessee does not expend the entire Minimum Capital Additions Amount as required pursuant to this Paragraph 10(c) prior to for such applicable Facility, if the end of aggregate amount expended by such Brookdale Lessee and the other Brookdale Lessees during such Lease YearYear equals, such failure shall not constitute at a Default or Event minimum, the sum of Default hereunder or under the Property Leases so long as ALS Holdings or the applicable Alterra Lessee pays any such shortfall to the applicable Provident Lessor or PSLT-ALS Holdings, which funds shall be deposited into the Capital Additions Reserve (or a similar account required in connection with any Facility Mortgage(s)), for expenditure as required herein and pursuant to Paragraph 25(d) all of the Property Leases. Subject to the provisions of Paragraph 12(a) hereof, 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 Amounts under any future Facility Mortgage shall be in compliance with the requirements of Paragraph 54(b) all of the Property Leases. In addition, PSLT-ALS BLC Holdings agrees that provided no Event of Default is then outstanding, BLC Holdings and ALS the Brookdale Lessees, in lieu of making such payments to satisfy the provisions of this Paragraph 10(b) and Paragraph 25(d) of the Property Leases, shall have the absolute right to cause PSLT-BLC Holdings agree (and PSLT-BLC Holdings agrees) to review apply portions of the Security Deposit maintained hereunder to be used toward the expenditure of the Minimum Capital Additions Amount periodically (but with respect to the Facilities; provided, however, that, in no event less may BLC Holdings request that PSLT-BLC Holdings apply towards Capital Additions with respect to the Facilities more than annuallyan aggregate amount equal to the product of (i) the sum of the number of units contained in all of the Facilities times (ii) Six Hundred Dollars ($600) per Lease Year. If BLC Holdings so causes a portion of the Security Deposit to be so applied towards the Minimum Capital Additions Amount, BLC Holdings shall not be required to pay any deficiency to PSLT-BLC Holdings to restore the Security Deposit to the Security Amount. Notwithstanding anything to the contrary contained herein, if BLC Holdings has delivered a Letter of Credit pursuant to Paragraph 33 hereof, BLC Holdings shall have no right under this Paragraph 10(b) to request that PSLT-BLC Holdings draw amounts under the Letter of Credit to apply towards the expenditure of the Minimum Capital Additions Amount, it being agreed that such right exists only with respect to any Security Deposit delivered pursuant to the terms of this Agreement; provided that BLC Holdings may cause the amount of the Letter of Credit to be reduced by the amount Tenant would have been entitled to have advanced to it as provided in this Paragraph 10(b), so long as (i) BLC Holdings causes the amount of money by which the Letter of Credit is reduced to provide for have been actually expended towards the proper operation Minimum Capital Additions Amount and maintenance (ii) BLC Holdings shall deliver to PSLT-BLC Holdings a replacement Letter of each Credit in the reduced amount or an amendment to the Letter of Credit reflecting the Facilitiesreduced amount.