Common use of Construction of Improvements; Lease of Improvements Clause in Contracts

Construction of Improvements; Lease of Improvements. (a) On --------------------------------------------------- each Property Closing Date (provided such Property is not a Completed Property), the Lessor and Lessee will execute and deliver an Agency Agreement Supplement, dated as of such Property Closing Date, pursuant to which Living Centers Development Company will agree to act as Construction Agent and to perform the Lessor's obligations under the Construction Contract in connection with the completion of the construction of the Improvements on such Property. (b) On each Property Closing Date or the Construction Commencement Date, if later, provided that the applicable Property Closing Certificate indicates that the cost of the Land is greater than or equal to 25% of the Property Cost for such Property (a "Twenty-Five ----------- Percent Property"), the Lessor and the Lessee shall execute and deliver an ---------------- additional Lease Supplement pursuant to which the Lessor will lease (or sublease, as the case may be) all of its right, title and interest in such Improvements to the Lessee. Notwithstanding that the Improvements on a Twenty- Five Percent Property (whether existing on the date of acquisition of the Land or to be constructed pursuant to the Agency Agreement) may be leased by a separate Lease Supplement, the term "Property" shall include the Land and the Improvements. (c) If the Property Closing Certificate indicates that the cost of the Land is less than 25% of the Property Cost, no additional Lease Supplement will be required to be delivered and the Land and the Improvements will be leased on the Property Closing Date under the Lease Supplement delivered pursuant to Section 6.2(d) and the term "Property" will be deemed to mean Land and Improvements. (d) On each Property Closing Date, the Lessor and Lessee will execute and deliver a Memorandum of Lease which will be recorded in the real estate records in the county where such Property is located.

Construction of Improvements; Lease of Improvements. (a) On --------------------------------------------------- each Property Closing Date (provided such Property is not a Completed Property), the Lessor and Lessee will execute and deliver an Agency Agreement Supplement, dated as of such Property Closing Date, pursuant to which Living Centers Development Company will agree to act as Construction Agent and to perform the Lessor's obligations under the Construction Contract in connection with the completion of the construction of the Improvements on such Property. (b) On each Property Closing Date or on the Construction Commencement Date, if later, for which proceeds of the Project Loan will be used either to construct Improvements or with respect to an Agree Project Loan, to make a contribution of capital to an Agree Lessor who will use such capital contribution to construct Improvements (each, a "Construction Project"), the applicable Lessor and the applicable Lessee will execute and deliver a Development Agreement pursuant to which the Lessor will agree to construct such Improvements in accordance with the Plans and Specifications. On each Property Closing Date or on the Construction Commencement Date, if later, with respect to a Construction Project, the applicable Lessor and the applicable Developer will execute and deliver a Development Agency Agreement pursuant to which such Developer will agree to construct such Improvements in accordance with the Development Agreement as the agent for the Lessor for the benefit of the Lessee and in accordance with the Plans and Specifications. On each Property Closing Date or on the Construction Commencement Date, if later, with respect to a Construction Project, such Lessor shall assign its rights under such Development Agency Agreement to the Owner Trustee as security for the Project Loans, and the Owner Trustee shall, in turn, assign such rights under the Development Agency Agreement to the Real Estate Administrative Agent as security for the Loans pursuant to the Assignment of Contracts. The Lenders acknowledge the Lessee's right to complete construction of the Improvements using proceeds of a Project Loan in accordance with the Development Agreement. Upon the Property Closing Date, provided that the applicable Property Closing Certificate indicates that the cost of the Land is greater than or equal to 25% of the Property Cost for such Property (a "Twenty-Five ----------- Percent Property"), the Lessor and the Lessee shall execute and deliver an ---------------- additional a Lease Supplement pursuant to which the Lessor will lease (or sublease, as the case may be) all of its right, title and interest in such Improvements to the Lessee. Notwithstanding that the Improvements on a Twenty- Five Percent Property (whether existing on the date of acquisition of the Land or to be constructed pursuant to the Agency Development Agreement) may be leased by a separate Lease SupplementSupplement to the Lease of the related Land, the term "Property" shall include the Land and the Improvements. (c) . If the Property Closing Certificate indicates that the cost of the Land is less than 25% of the Property Cost, no additional Lease Supplement will be required to be delivered pursuant to Section 5.04(g) and the Land and the Improvements will be leased on the Property Closing Date under the one Lease Supplement delivered pursuant to Section 6.2(d) and the term "Property" will be deemed to mean Land and Improvements. (d) On each Property Closing Date, the Lessor and Lessee will execute and deliver a Memorandum of Lease which will be recorded in the real estate records in the county where such Property is located.

Construction of Improvements; Lease of Improvements. (a) On --------------------------------------------------- each Property Closing Date (provided such Property is not a Completed Property), the Lessor and Lessee will execute and deliver an Agency Agreement Supplement, dated as of such Property Closing Date, pursuant to which Living Centers Development Company the Lessee will agree to act as Construction Agent and to perform the Lessor's obligations under the Construction Contract in connection with the completion of the construction of the Improvements on such Property. (b) On each Property Closing Date or the Construction Commencement Date, if later, provided that the applicable Property Closing Certificate indicates that the cost of the Land is greater than or equal to 25% of the Property Cost for such Property (a "Twenty-Five ----------- Percent Property"), the Lessor and the Lessee shall execute and deliver an ---------------- additional Lease Supplement pursuant to which the Lessor will lease (or sublease, as the case may be) all of its right, title and interest in such Improvements to the Lessee. Notwithstanding that the Improvements on a Twenty- Twenty-Five Percent Property (whether existing on the date of acquisition of the Land or to be constructed pursuant to the Agency Agreement) may be leased by a separate Lease Supplement, the term "Property" shall include the Land and the Improvements. (c) If the Property Closing Certificate indicates that the cost of the Land is less than 25% of the Property Cost, no additional Lease Supplement will be required to be delivered and the Land and the Improvements will be leased on the Property Closing Date under the Lease Supplement delivered pursuant to Section 6.2(d) and the term "Property" will be deemed to mean Land and Improvements. (d) On each Property Closing Date, the Lessor and Lessee will execute and deliver a Memorandum of Lease which will be recorded in the real estate records in the county where such Property is located.