Common use of RESERVES FOR EXTRAORDINARY REPAIRS Clause in Contracts

RESERVES FOR EXTRAORDINARY REPAIRS. Commencing on the Commencement Date, with respect to the initial payment, and on or before the last day of each calendar quarter thereafter, beginning with the quarter ending March 31, 2006, Lessee shall make quarterly deposits to a reserve (the "Reserve") at a financial institution of the Lessor's choosing, provided, however, that the first such deposit on the Commencement Date, shall be prorated based upon a three hundred sixty (360) day year. Subject to the immediately preceding sentence, each deposit to be made pursuant to this Section 9.2 shall be equal to the sum of Two Thousand Five Hundred and 00/100 Dollars ($2,500.00) per bed per annum. For the period commencing on the Commencement Date and ending on December 31, 2005, the number of beds shall be assumed to be one hundred fifty-three (153). Beginning on January 1, 2006, and on each January 1 thereafter, the number of beds shall be determined by the actual number of beds placed in service or certified to be available for use in the Facility, which shall not be reduced without the prior written consent of Lessor. The account to which such payments are made shall require the signature of an officer of Lessee and Lessor to make withdrawals. Beginning on January 1, 2007, and on each January 1 thereafter during the entire Lease Term, such payment into the Reserve shall be increased by two percent (2%) per annum. Notwithstanding anything contained herein to the contrary, Lessee shall pay into the Reserve any amounts needed in excess of such required payments as provided herein. The amounts in the Reserve, including interest, shall be used to pay for Extraordinary Repairs on the Facility, or, in the event Lessee fails to make any required non-Extraordinary Repairs, Lessor may use funds in the Reserve for that purpose as well, without the necessity of obtaining the signature of an officer of Lessee. Lessee shall replenish amounts drawn from the Reserve at the rate of one-twelfth (1/12th) of the total amount withdrawn per month, until completely replenished. Lessee hereby grants to Lessor a security interest in all monies deposited into the Reserve and Lessee shall, within fifteen (15) days from the Commencement Date, execute all documents necessary for Lessor to perfect its security interest in the Reserve. Lessor and Lessee agree that the first dollars of all expenditures for Extraordinary Repairs made in each year during the Term shall be funded from the Reserve account to the full extent of such account; provided, however, that if Lessor, in its reasonable discretion, determines at any time that the balance then remaining in the Reserve account is insufficient to pay in full for the present and future anticipated Extraordinary Repairs on the Facility, Lessor shall retain funds in the Reserve account in an amount sufficient to pay in full for Extraordinary Repairs and Lessee will deposit additional sums into the account from time to time, upon the written request of Lessor, in amounts equal to the difference between the then balance in the Reserve account and the cost to complete the present and future Extraordinary Repairs so that at all times there is an adequate amount in the Reserve account to pay for such items on a going forward basis. So long as no default has occurred under any of the terms hereof, and no event has occurred which with the giving of notice or the passage of time or both would constitute a default hereunder, any amounts remaining in the Reserve, after the payment of and the reimbursement for the Extraordinary Repairs on the Facility, at the expiration of this Lease shall be returned to Lessee. Lessee consents to Lessor's pledge of the Reserve to any Facility Lender, subject to Lessor's obligation to return any remaining amounts in the Reserve to Lessee pursuant to this Section 9.2.

RESERVES FOR EXTRAORDINARY REPAIRS. Commencing on the Commencement Date, with respect to the initial payment, and on or before the last day of each calendar quarter thereafter, beginning with the quarter ending March 31January 1, 2006, Lessee shall make quarterly annual deposits to a reserve account for Extraordinary Repairs (the "Reserve") at a financial institution of the Lessor's choosing, provided, however, that the first such deposit on the Commencement Date, shall be prorated based upon a three hundred sixty (360) day year. Subject to the immediately preceding sentence, each deposit to be made pursuant to this Section 9.2 shall be held by Lessor in an interest-bearing account in an amount equal to the sum of Two One Thousand Five Hundred and 00/100 Dollars ($2,500.001,500.00) per bed per annum. For the period commencing on the Commencement Date January 1, 2006 and ending on December 31, 20052006, the number of beds shall be assumed to be one hundred fiftyeighty-three eight (15388). Beginning on January 1, 20062007, and on each January 1 thereafter, the number of beds shall be determined by the actual number of beds placed in service or certified to be available for use in the Facility, which shall not be reduced without the prior written consent of Lessor. The account to which such payments are made shall require the signature of an officer of Lessee and Lessor to make withdrawals. Beginning on January 1, 2007, and on each January 1 thereafter during the entire Lease Term, such payment into the Reserve shall be increased by an amount equal to the greater of (A) two and one-half percent (22.5%) per annum. Notwithstanding anything contained herein to annum of the contraryprior year's Reserve required by this Lease, Lessee or (B) the percentage by which the CPI on the Adjustment Date shall pay into have increased over the Reserve any amounts needed CPI figure in excess of such required payments as provided hereineffect on the immediately preceding January 1. The amounts in the Reserve, including interest, Reserve shall be used to pay for Extraordinary Repairs on the Facility, or, in the event Lessee fails to make any required non-Extraordinary RepairsRepairs hereunder, Lessor may use funds in the Reserve for that purpose as well, without the necessity of obtaining the signature of an officer of Lessee. Lessee shall replenish Replenishment of amounts drawn from the Reserve will be paid at the rate of one-twelfth (1/12th) of the total amount withdrawn per month, until completely replenished. Lessee hereby grants to Lessor a security interest in all monies deposited into the Reserve and Lessee shall, within fifteen (15) days from the Commencement Dateas soon as practicable, execute all documents necessary for Lessor to perfect its security interest in the Reserve. Lessor and Lessee agree that the first dollars of all expenditures for Extraordinary Repairs made in each year during the Term shall be funded from the Reserve account to the full extent of such account; provided, however, that if Lessor, in its reasonable discretion, determines at any time that the balance then remaining in the Reserve account is insufficient to pay in full for the present and future anticipated Extraordinary Repairs on the Facility, Lessor shall retain funds in the Reserve account in an amount sufficient to pay in full for Extraordinary Repairs and Lessee will deposit additional sums into the account from time to time, upon the written request of Lessor, in amounts equal to the difference between the then balance in the Reserve account and the cost to complete the present and future Extraordinary Repairs so that at all times there is an adequate amount in the Reserve account to pay for such items on a going forward basis. So long as no default has occurred under any of the terms hereof, and no event has occurred which with the giving of notice or the passage of time or both would constitute a default hereunder, any amounts remaining in the Reserve, after the payment of and the reimbursement for the Extraordinary Repairs on the Facility, at the expiration of this Lease shall be returned to Lessee. Lessee consents to Lessor's pledge of the Reserve to any Facility Lender, subject to Lessor's obligation to return any remaining amounts in the Reserve to Lessee pursuant to this Section 9.2.

RESERVES FOR EXTRAORDINARY REPAIRS. Commencing on the Commencement Closing Date, with respect to the initial payment, and on or before the last day of each calendar quarter thereafter, beginning with the quarter ending March 31, 2006, Lessee Borrower Parties shall make advance quarterly deposits to a reserve account (the "Reserve") at a financial institution of the Lessor's choosing, to be held by MPT; provided, however, that the first such deposit on the Commencement Date, shall be prorated based upon a three hundred sixty Three Hundred Sixty (360) day year. Subject to the immediately preceding sentence, each deposit to be made pursuant to this Section 9.2 quarterly thereafter through and including December 31, 2006, shall be equal to the sum of Two Thousand Five Hundred and 00/100 Dollars ($2,500.00) per bed per annum. For the period commencing on the Commencement Closing Date and ending on December 31, 20052006, the number of beds shall be assumed to be one hundred fifty-three fifty (15350). Beginning on January 1, 20062007, and on each January 1 thereafter, the number of beds shall be determined by the actual number of beds placed in service or certified to be available for use in the FacilityHospital, which shall not be reduced without the prior written consent of Lessorthe MPT Parties. The account to which such payments are made shall require the signature of an officer of Lessee Alliance and Lessor MPT to make withdrawals. Beginning on January 1, 2007, and on each January 1 thereafter during the entire Lease Loan Term, such payment into the Reserve shall be increased by two three and one-half percent (23.5%) per annum. Notwithstanding anything contained herein to the contrary, Lessee the Borrower Parties shall pay into the Reserve any amounts needed in excess of such required payments as provided herein. The amounts in the Reserve, including interest, shall be used to pay for Extraordinary Repairs on the FacilityHospital, or, in the event Lessee fails the Borrower Parties fail to make any required non-Extraordinary Repairs, Lessor the MPT Parties may use funds in the Reserve for that purpose as well, without the necessity of obtaining the signature of an officer of LesseeAlliance. Lessee The Borrower Parties shall replenish amounts drawn from the Reserve at the rate of one-twelfth (1/12th) of the total amount withdrawn per month, until completely replenished. Lessee The Borrower Parties hereby grants grant to Lessor the MPT Parties a security interest in all monies deposited into the Reserve and Lessee the Borrower Parties shall, within fifteen (15) days from the Commencement Closing Date, execute all documents necessary for Lessor the MPT Parties to perfect its their security interest in the Reserve. Lessor and Lessee agree that If either of the first dollars of all expenditures for Extraordinary Repairs made in each year during the Term shall be funded from the Reserve account to the full extent of such account; provided, however, that if LessorMPT Parties, in its reasonable discretion, determines at any time that the balance then remaining in the Reserve account is insufficient to pay in full for the present and future anticipated Extraordinary Repairs on the FacilityHospital, Lessor shall retain funds in the Reserve account in an amount sufficient to pay in full for Extraordinary Repairs and Lessee Borrower Parties will deposit additional sums into the account from time to time, upon the written request of Lessorthe MPT Parties, in amounts equal to the difference between the then balance in the Reserve account and the cost to complete the present and future Extraordinary Repairs so that at all times there is an adequate amount in the Reserve account to pay for such items on a going forward basis. So long as no default Event of Default has occurred under any of the terms hereofoccurred, and no event has occurred which with the giving of notice or the passage of time or both would constitute a default an Event of Default hereunder, any amounts remaining in the Reserve, after the payment of and the reimbursement for the Extraordinary Repairs on the FacilityHospital, at the expiration of this Lease the Loan Term shall be returned to LesseeAlliance. Lessee consents The Borrower Parties consent to Lessor's the MPT Parties' pledge of the Reserve to any Facility Lenderlender to the MPT Parties or their affiliates, subject to Lessor's MPT Parties' obligation to return any remaining amounts in the Reserve to Alliance Lessee pursuant to this Section 9.2Section.

RESERVES FOR EXTRAORDINARY REPAIRS. Commencing on the Commencement Date, with respect to the initial payment, and on or before the last day of each calendar quarter thereafter, beginning with the quarter ending March 31, 2006, Lessee shall make quarterly deposits to a reserve (the "Reserve") at a financial institution of the Lessor's choosing, provided, however, that the first such deposit on the Commencement Date, shall be prorated based upon a three hundred sixty (360) day yearprorated. Subject to the immediately preceding sentence, each deposit to be made pursuant to this Section 9.2 shall be equal to the sum of Two Thousand Five Hundred and 00/100 Dollars ($2,500.00) per bed per annum. For the period commencing on the Commencement Date and ending on December 31, 2005, the number of beds shall be assumed to be one hundred fiftytwenty-three six (153126). Beginning on January 1, 2006, and on each January 1 thereafter, the number of beds shall be determined by the actual number of beds placed in service or certified to be available for use in the Facility, which shall not be reduced without the prior written consent of Lessor. The account to which such payments are made shall require the signature of an officer of Lessee and Lessor to make withdrawals. Beginning on January 1, 2007, and on each January 1 thereafter during the entire Lease Term, such payment into the Reserve shall be increased by two percent (2%) per annum. Notwithstanding anything contained herein to the contrary, Lessee shall pay into the Reserve any amounts needed in excess of such required payments as provided herein. The amounts in the Reserve, including interest, shall be used to pay for Extraordinary Repairs on the Facility, or, in the event Lessee fails to make any required non-Extraordinary Repairs, Lessor may use funds in the Reserve for that purpose as well, without the necessity of obtaining the signature of an officer of Lessee. Lessee shall replenish amounts drawn from the Reserve at the rate of one-twelfth (1/12th) of the total amount withdrawn per month, until completely replenished. Lessee hereby grants to Lessor a security interest in all monies deposited into the Reserve and Lessee shall, within fifteen (15) days from the Commencement Date, execute all documents necessary for Lessor to perfect its security interest in the Reserve. Lessor and Lessee agree that the first dollars of all expenditures for Extraordinary Repairs made in each year during the Term shall be funded from the Reserve account to the full extent of such account; provided, however, that if Lessor, in its reasonable discretion, determines at any time that the balance then remaining in the Reserve account is insufficient to pay in full for the present and future anticipated Extraordinary Repairs on the Facility, Lessor shall retain funds in the Reserve account in an amount sufficient to pay in full for Extraordinary Repairs and Lessee will deposit additional sums into the account from time to time, upon the written request of Lessor, in amounts equal to the difference between the then balance in the Reserve account and the cost to complete the present and future Extraordinary Repairs so that at all times there is an adequate amount in the Reserve account to pay for such items on a going forward basis. So long as no default has occurred under any of the terms hereof, and no event has occurred which with the giving of notice or the passage of time or both would constitute a default hereunder, any amounts remaining in the Reserve, after the payment of and the reimbursement for the Extraordinary Repairs on the Facility, at the expiration of this Lease shall be returned to Lessee. Lessee consents to Lessor's pledge of the Reserve to any Facility Lender, subject to Lessor's obligation to return any remaining amounts in the Reserve to Lessee pursuant to this Section 9.2.

RESERVES FOR EXTRAORDINARY REPAIRS. Commencing on the Commencement Date, with respect to the initial payment, and on or before the last day of each calendar quarter thereafter, beginning with the quarter ending March 31, 2006, Lessee shall make quarterly deposits to a reserve (the "Reserve") at a financial institution of the Lessor's choosing, provided, however, that the first such deposit on the Commencement Date, shall be prorated based upon a three hundred sixty (360) day yearprorated. Subject to the immediately preceding sentence, each deposit to be made pursuant to this Section 9.2 quarterly thereafter through and including December 31, 2005, shall be equal to the sum of Two Thousand Five Hundred and 00/100 Dollars ($2,500.00) per bed per annum. For the period commencing on the Commencement Date and ending on December 31, 2005, the number of beds shall be assumed to be one hundred fiftyeighty-three (15383). Beginning on January 1, 2006, and on each January 1 thereafter, the number of beds shall be determined by the actual number of beds placed in service or certified to be available for use in the Facility, which shall not be reduced without the prior written consent of Lessor. The account to which such payments are made shall require the signature of an officer of Lessee and Lessor to make withdrawals. Beginning on January 1, 20072006, and on each January 1 thereafter during the entire Lease Term, such payment into the Reserve shall be increased by two percent (2%) per annum. Notwithstanding anything contained herein to the contrary, Lessee shall pay into the Reserve any amounts needed in excess of such required payments as provided herein. The amounts amount in the Reserve, including interest, shall may be used by Lessee with Lessor's approval, which such approval will not be unreasonably withheld, or by Lessor with Lessee's approval, which such approval will not be unreasonably withheld, to pay for Extraordinary Repairs on the Facility, or, in the event Lessee fails to make any required non-Extraordinary Repairs, Lessor may use funds in the Reserve for that purpose as well, without the necessity of obtaining the signature of an officer of Lessee. Lessee shall replenish amounts drawn from the Reserve at the rate of one-twelfth (1/12th) of the total amount withdrawn per month, until completely replenished. Lessee hereby grants to Lessor a security interest in all monies deposited into the Reserve and Lessee shall, within fifteen (15) days from the Commencement Date, execute all documents necessary for Lessor to perfect its security interest in the Reserve. Lessor and Lessee agree that the first dollars of all expenditures for Extraordinary Repairs made in each year during the Term shall be funded from the Reserve account to the full extent of such account; provided, however, that if Lessor, in its reasonable discretion, determines at any time that the balance then remaining in the Reserve account is insufficient to pay in full for the present and future anticipated Extraordinary Repairs on the Facility, Lessor shall retain funds in the Reserve account in an amount sufficient to pay in full for Extraordinary Repairs and Lessee will deposit additional sums into the account from time to time, upon the written request of Lessor, in amounts equal to the difference between the then balance in the Reserve account and the cost to complete the present and future Extraordinary Repairs so that at all times there is an adequate amount in the Reserve account to pay for such items on a going forward basis. So long as no default has occurred under any of the terms hereof, and no event has occurred which with the giving of notice or the passage of time or both would constitute a default hereunder, any amounts remaining in the Reserve, after the payment of and the reimbursement for the Extraordinary Repairs on the Facility, at the expiration of this Lease shall be returned to Lessee. Lessee consents to Lessor's pledge of the Reserve to any Facility Lender, subject to Lessor's obligation to return any remaining amounts in the Reserve to Lessee pursuant to this Section 9.2.

RESERVES FOR EXTRAORDINARY REPAIRS. Commencing on the Commencement Date, with respect to date of Completion of the initial paymentconstruction of the Facility, and on or before the last day of each calendar quarter January 1 thereafter, beginning with the quarter ending March 31, 2006, Lessee shall make quarterly annual deposits to a reserve account for Extraordinary Repairs (the "Reserve") at a financial institution of the Lessor's choosing, provided, however, that the first such deposit on the Commencement Date, shall be prorated based upon a three hundred sixty (360) day year. Subject to the immediately preceding sentence, each deposit to be made pursuant to this Section 9.2 held by Lessor in an interest bearing account. The first annual deposit shall be equal to the sum of Two Thousand Five Hundred and 00/100 Dollars ($2,500.00) per bed per annum. For the period commencing on the Commencement Date and ending on December 31, 2005, annum (the number of beds shall be assumed to be one hundred fifty-three (153determined by the actual number of beds certified to be available for use in the Facility). Beginning on the first January 1, 20061 after the Completion Date, and on each January 1 thereafter, the number of beds shall be determined by the actual number of beds placed in service or certified to be available for use in the Facility, which number of beds shall not be reduced without the prior written consent of Lessor. The Reserve account to which such payments are made shall require the signature of an officer of Lessee and an officer of Lessor to make withdrawals. Beginning on January 1, 2007, and on On each January 1 thereafter during the entire Lease Term, such payment into the Reserve shall be increased by two and one-half percent (22.5%) per annum. Notwithstanding anything contained herein to the contrary, Lessee shall pay into the Reserve any amounts needed in excess of such required payments as provided herein. The amounts in the Reserve, including interest, Reserve shall be used to pay for Extraordinary Repairs on the Facility, Facility or, in the event Lessee fails to make any required non-Extraordinary RepairsRepairs hereunder, Lessor may use funds in the Reserve for that purpose as well, without the necessity of obtaining the signature of an officer of Lessee. Lessee shall replenish Replenishment of amounts drawn from the Reserve will be paid at the rate of one-twelfth (1/12th) of the total amount withdrawn per month, until completely replenished. Lessee hereby grants to Lessor a security interest in all monies deposited into the Reserve and Lessee shall, within fifteen (15) days from the Commencement Date, execute all documents necessary for Lessor to perfect its security interest in the Reserve. Lessor and Lessee agree that the first dollars of all expenditures for Extraordinary Repairs made in each year during the Term shall be funded from the Reserve account to the full extent of such account; provided, however, that if Lessor, in its reasonable discretion, determines at any time that the balance then remaining in the Reserve account is insufficient to pay in full for the present and future anticipated Extraordinary Repairs on the Facility, Lessor shall retain funds in the Reserve account in an amount sufficient to pay in full for Extraordinary Repairs and Lessee will deposit additional sums into the account from time to time, upon the written request of Lessor, in amounts equal to the difference between the then balance in the Reserve account and the cost to complete the present and future Extraordinary Repairs so that at all times there is an adequate amount in the Reserve account to pay for such items on a going forward basis. So long as no default Event of Default has then occurred under any of the terms hereof, and no event has then occurred which with the giving of notice or the passage of time or both would constitute such a default hereunder, any amounts remaining in the Reserve, after the payment of and the reimbursement for the Extraordinary Repairs on the Facility, Facility shall be returned to Lessee at the expiration of this Lease shall be returned to LesseeLease. Lessee consents to Lessor's pledge of the Reserve to any Facility Lender, subject to Lessor's obligation to return any remaining amounts in the Reserve to Lessee pursuant to this Section 9.2.