Common use of Contribution Amount Clause in Contracts

Contribution Amount. (a) The amount of Investor's contribution to the Joint Venture at Closing for the Interests shall be an amount equal to (i) eighty percent (80%) of the excess of (a) the Agreed Value of each First Closing Facility which the Joint Venture acquires an interest in, thereafter sells and leases back pursuant to the Lease Documentation, over (b) the outstanding principal balance due on the Senior Financing as of the First Closing Date and (ii) eighty percent (80%) of a $50,000 working capital reserve for each Facility pursuant to the terms of the Venture Agreement. The amount contributed by Investor shall be subject to adjustment as provided in Section 2.5 below and shall be increased by Investor's share of the closing costs to be borne by the Joint Venture as hereinafter set forth. The total amount to be contributed by the Investor to the Joint Venture on the First Closing Date (hereinafter, the "CONTRIBUTION") shall be paid by wire transfer of immediately available funds to the Title Insurer (as defined in Section 7.3). Less than all the Facilities may be acquired on the First Closing Date, as set forth in Section 3.3 below. (b) On January 7, 2002, Investor delivered to the Title Insurer, acting as an independent escrow agent, by wire transfer, same day funds in the amount of $1,000,000 (the "DEPOSIT"). Such amount is being held by Title Insurer pursuant to the terms of the Escrow Agreement dated January 7, 2002 among Investor, Sunrise and Title Insurer, a form of which is attached hereto as Exhibit Q, and shall applied to the Contribution due from Investor on the First Closing Date.