Common use of Minimum Capital Additions Amount Clause in Contracts

Minimum Capital Additions Amount. BLC Holdings shall cause each of the Brookdale Lessees, in accordance with Paragraph 25(d) of the Property Leases, to expend an amount at least equal to the Minimum Capital Additions Amount (as defined in each Property Lease) on Capital Additions with respect each of the Facilities; provided, however, that PSLT-BLC holdings agrees that it shall not be a default under any individual Property Lease if during any Lease Year, the applicable Brookdale Lessee does not expend the entire Minimum Capital Additions Amount for such applicable Facility, if the aggregate amount expended by such Brookdale Lessee and the other Brookdale Lessees during such Lease Year equals, at a minimum, the sum of all of the Minimum Capital Additions Amounts under all of the Property Leases. In addition, PSLT-BLC Holdings agrees that provided no Event of Default is then outstanding, BLC Holdings and 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 (and PSLT-BLC Holdings agrees) to apply portions of the Security Deposit maintained hereunder to be used toward the expenditure of the Minimum Capital Additions Amount with respect to the Facilities; provided, however, that, in no event may BLC Holdings request that PSLT-BLC Holdings apply towards Capital Additions with respect to the Facilities more than an 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 have been actually expended towards the Minimum Capital Additions Amount and (ii) BLC Holdings shall deliver to PSLT-BLC Holdings a replacement Letter of Credit in the reduced amount or an amendment to the Letter of Credit reflecting the reduced amount.

Minimum Capital Additions Amount. BLC ALS Holdings shall cause the Alterra Lessees to expend on Capital Additions made to the Facilities during each of Lease Year during the Brookdale LesseesTerm an amount, in accordance with Paragraph 25(d) of the Property Leasesaggregate, to expend an amount at least equal to the Minimum Capital Additions Amount 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 each the Property Lease) on Leases), provided that in no event shall the Minimum Capital Additions with respect each of Amount be less than the Facilities; provided, however, that PSLT-BLC holdings agrees that it shall not be a default under any individual Property Minimum Capital Additions Amount for the prior Lease if during Year. If in any Lease Year, Year the applicable Brookdale Lessee does not Alterra Lessees fail to expend the entire Minimum Capital Additions Amount for such applicable Facility, if as required pursuant to this Paragraph 10(c) prior to the aggregate amount expended by such Brookdale Lessee and the other Brookdale Lessees during end of such Lease Year equalsYear, at such failure shall not constitute a minimumDefault 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 sum 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 all the Property Leases. Subject to the provisions of Paragraph 12(a) hereof, the Minimum Capital Additions Amounts 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 all any future Facility Mortgage shall be in compliance with the requirements of Paragraph 54(b) of the Property Leases. In addition, PSLT-BLC Holdings agrees that provided no Event of Default is then outstanding, BLC ALS Holdings and the Brookdale Lessees, in lieu of making such payments ALS Holdings agree 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 (and PSLT-BLC Holdings agrees) to apply portions of the Security Deposit maintained hereunder to be used toward the expenditure of review the Minimum Capital Additions Amount with respect to the Facilities; provided, however, that, periodically (but in no event may BLC Holdings request that PSLT-BLC Holdings apply towards Capital Additions with respect less than annually), to provide for the Facilities more than an aggregate amount equal to the product proper operation and maintenance of (i) the sum each 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 have been actually expended towards the Minimum Capital Additions Amount and (ii) BLC Holdings shall deliver to PSLT-BLC Holdings a replacement Letter of Credit in the reduced amount or an amendment to the Letter of Credit reflecting the reduced amountFacilities.