Disbursement of Insurance Proceeds Equal to or Greater Than The Approval Threshold. If Tenant restores or repairs a Leased Property pursuant to this ARTICLE XIV, and if the Net Proceeds equal or exceed the Approval Threshold, the restoration or repair and disbursement of funds to Tenant shall be in accordance with the following procedures: (i) The restoration or repair work shall be done pursuant to plans and specifications approved by Landlord and a certified construction cost statement, to be obtained by Tenant from a contractor reasonably acceptable to Landlord, showing the total cost of the restoration or repair; to the extent the cost exceeds the Net Proceeds, Tenant shall deposit with Landlord the amount of the excess cost, and Landlord shall disburse the funds so deposited in payment of the costs of restoration or repair before any disbursement of Net Proceeds. (ii) Construction Funds shall be made available to Tenant upon request, no more frequently than monthly, as the restoration and repair work progresses, pursuant to certificates of an architect selected by Tenant that, in the judgment of Landlord, reasonably exercised, is highly qualified in the design and construction of the type of Facility being repaired and is otherwise reasonably acceptable to Landlord, which certificates must be in form and substance reasonably acceptable to Landlord. Payment of Construction Funds shall be subject to a ten percent (10%) holdback until the architect certifies that the work is fifty percent (50%) complete, after which, so long as there is no Event of Default under this Lease and so long as the architect certifies that work is proceeding in accordance with the schedule and budget, there shall be no further retainage. (iii) After the first disbursement to Tenant, sworn statements and lien waivers in an amount at least equal to the amount of Construction Funds previously paid to Tenant shall be delivered to Landlord from all contractors, subcontractors and material suppliers covering all labor and materials furnished through the date of the previous disbursement. (iv) Tenant shall deliver to Landlord such other evidence as Landlord may reasonably request from time to time during the course of the restoration and repair, as to the progress of the work, compliance with the approved plans and specifications, the cost of restoration and repair and the total amount needed to complete the restoration and repair, and showing that there are no liens against such Leased Property arising in connection with the restoration and repair and that the cost of the restoration and repair at least equals the total amount of Construction Funds then disbursed to Tenant hereunder. (v) If the Construction Funds are at any time determined by Landlord to be inadequate for payment in full of all labor and materials for the restoration and repair, Tenant shall immediately pay the amount of the deficiency to Landlord to be held and disbursed as Construction Funds prior to the disbursement of any other Construction Funds then held by Landlord. A request for confidential treatment has been made with respect to portions of this document that are marked ‘[*****]’. The redacted portions have been filed separately with the SEC. 62 Master Lease (OHI - Diversicare) Derwent – 9.25.18
Appears in 1 contract
Sources: Master Lease (Diversicare Healthcare Services, Inc.)
Disbursement of Insurance Proceeds Equal to or Greater Than The Approval Threshold. If Tenant restores or repairs a Leased Property pursuant to this ARTICLE XIV, and if the Net Proceeds equal or exceed the Approval Threshold, the restoration or repair and disbursement of funds to Tenant shall be in accordance with the following procedures:
(i) The restoration or repair work shall be done pursuant to plans and specifications approved by Landlord and a certified construction cost statement, to be obtained by Tenant from a contractor reasonably acceptable to Landlord, showing the total cost of the restoration or repair; to the extent the cost exceeds the Net Proceeds, Tenant shall deposit with Landlord the amount of the excess cost, and Landlord shall disburse the funds so deposited in payment of the costs of restoration or repair before any disbursement of Net Proceeds.
(ii) Construction Funds shall be made available to Tenant upon request, no more frequently than monthly, as the restoration and repair work progresses, pursuant to certificates of an architect selected by Tenant that, in the judgment of Landlord, reasonably exercised, is highly qualified in the design and construction of the type of Facility being repaired and is otherwise reasonably acceptable to Landlord, which certificates must be in form and substance reasonably acceptable to Landlord. Payment of Construction Funds shall be subject to a ten percent (10%) holdback until the architect certifies that the work is fifty percent (50%) complete, after which, so long as there is no Event of Default under this Lease and so long as the architect certifies that work is proceeding in accordance with the schedule and budget, there shall be no further retainage.
(iii) After the first disbursement to Tenant, sworn statements and lien waivers in an amount at least equal to the amount of Construction Funds previously paid to Tenant shall be delivered to Landlord from all contractors, subcontractors and material suppliers covering all labor and materials furnished through the date of the previous disbursement.
(iv) Tenant shall deliver to Landlord such other evidence as Landlord may reasonably request from time to time during the course of the restoration and repair, as to the progress of the work, compliance with the approved plans and specifications, the cost of restoration and repair and the total amount needed to complete the restoration and repair, and showing that there are no liens against such Leased Property arising in connection with the restoration and repair and that the cost of the restoration and repair at least equals the total amount of Construction Funds then disbursed to Tenant hereunder.
(v) If the Construction Funds are at any time determined by Landlord to be inadequate for payment in full of all labor and materials for the restoration and repair, Tenant shall immediately pay the amount of the deficiency to Landlord to be held and disbursed as Construction Funds prior to the disbursement of any other Construction Funds then held by Landlord.
(vi) The Construction Funds may be disbursed by Landlord to Tenant or to the persons entitled to receive payment thereof from Tenant, and such disbursement in either case may be made directly or through a third party escrow agent, such as, but not limited to, a title insurance company, or its agent, all as Landlord may determine in its sole discretion. A request Provided Tenant is not in default hereunder, any excess Construction Funds shall be paid to Tenant upon completion of the restoration or repair.
(vii) If Tenant at any time fails to promptly and fully perform the conditions and covenants set out in subparagraphs (i) through (vi) above, and the failure is not corrected within ten (10) days of written Notice thereof, or if during the restoration or repair an Event of Default occurs hereunder, Landlord may, at its option, immediately cease making any further payments to Tenant for confidential treatment the restoration and repair.
(viii) Landlord may reimburse itself out of the Construction Funds for its reasonable expenses incurred in administering the Construction Funds and inspecting the restoration and repair work, including without limitation attorneys’ and other professional fees and escrow fees and expenses.
(ix) If damage or destruction shall occur either (a) during the final Lease Year of the Initial Term and Tenant has been made with respect not exercised its option to portions extend the Term of this document that are marked ‘[*****]’Lease pursuant to Section 1.3 above or (b) during the final Lease Year of the Renewal Term, then Landlord, at Landlord’s sole option, may elect to terminate the Lease as to the affected Facility (in which case Tenant shall surrender possession of the affected Facility and Tenant shall transfer to Landlord all of Tenant’s interest in the Facility, including, without limitation, Tenant’s interest in the licenses pursuant to which the Facility is then operated) and receive the Net Proceeds in lieu of Tenant restoring or repairing the damage or destruction. The redacted portions have been filed separately with election to terminate the SECLease as to the affected Facility and receive the Net Proceeds pursuant to this Section 14.7(ix) must be exercised by Landlord by Notice to Tenant on or prior to the tenth (10th) Business Day following Landlord’s receipt of Notice of such event of damage or destruction. 62 Master If Landlord elects to terminate the Lease as to the affected Facility and receive the Net Proceeds in lieu of Tenant restoring or repairing the damage or destruction, then, as of the Proceeds Date, the annual Minimum Rent (OHI - Diversicareand any 7.0% Upgrade Rent or 9.0% Improvements Rent applicable to the affected Facility) Derwent – 9.25.18due under this Lease during the remainder of the Term shall be reduced by an amount equal to the product of the Casualty/Condemnation Reduction Amount and the amount of the Security Deposit will be reset at an amount equal to three months of the annual Base Rent (exclusive of the Avon Rent) after giving effect to the reduction.
Appears in 1 contract
Sources: Master Lease (Diversicare Healthcare Services, Inc.)
Disbursement of Insurance Proceeds Equal to or Greater Than The Approval Threshold. If Tenant Lessee restores or repairs a Leased Property pursuant to this ARTICLE Article XIV, and if the Net Proceeds equal or exceed the Approval Threshold, the restoration or repair and disbursement of funds to Tenant Lessee shall be in accordance with the following procedures:
(i) The restoration or repair work shall be done pursuant to plans and specifications approved by Landlord Lessor and a certified construction cost statement, to be obtained by Tenant Lessee from a contractor reasonably acceptable to LandlordLessor, showing the total cost of the restoration or repair; to the extent the cost exceeds the Net Proceeds, Tenant Lessee shall deposit with Landlord Lessor the amount of the excess cost, and Landlord Lessor shall disburse the funds so deposited in payment of the costs of restoration or repair before any disbursement of Net Proceeds.
(ii) Construction Funds shall be made available to Tenant Lessee upon request, no more frequently than monthly, as the restoration and repair work progresses, pursuant to certificates of an architect selected by Tenant Lessee that, in the judgment of LandlordLessor, reasonably exercised, is highly qualified in the design and construction of the type of Facility being repaired and is otherwise reasonably acceptable to LandlordLessor, which certificates must be in form and substance reasonably acceptable to LandlordLessor. Payment of Construction Funds shall be subject to a ten percent (10%) holdback until the architect certifies that the work is fifty percent (50%) complete, after which, so long as there is no Event of Default under this Lease and so long as the architect certifies that work is proceeding in accordance with the schedule and budget, there shall be no further retainage.
(iii) After the first disbursement to TenantLessee, sworn statements and lien waivers in an amount at least equal to the amount of Construction Funds previously paid to Tenant Lessee shall be delivered to Landlord Lessor from all contractors, subcontractors and material suppliers covering all labor and materials furnished through the date of the previous disbursement.
(iv) Tenant Lessee shall deliver to Landlord Lessor such other evidence as Landlord Lessor may reasonably request from time to time during the course of the restoration and repair, as to the progress of the work, compliance with the approved plans and specifications, the cost of restoration and repair and the total amount needed to complete the restoration and repair, and showing that there are no liens against such Leased Property arising in connection with the restoration and repair and that the cost of the restoration and repair at least equals the total amount of Construction Funds then disbursed to Tenant Lessee hereunder.
(v) If the Construction Funds are at any time determined by Landlord Lessor to be inadequate for payment in full of all labor and materials for the restoration and repair, Tenant Lessee shall immediately pay the amount of the deficiency to Landlord Lessor to be held and disbursed as Construction Funds prior to the disbursement of any other Construction Funds then held by LandlordLessor.
(vi) The Construction Funds may be disbursed by Lessor to Lessee or to the persons entitled to receive payment thereof from Lessee, and such disbursement in either case may be made directly or through a third party escrow agent, such as, but not limited to, a title insurance company, or its agent, all as Lessor may determine in its sole discretion. A request Provided Lessee is not in default hereunder, any excess Construction Funds shall be paid to Lessee upon completion of the restoration or repair.
(vii) If Lessee at any time fails to promptly and fully perform the conditions and covenants set out in subparagraphs (i) through (vi) above, and the failure is not corrected within ten (10) days of written Notice thereof, or if during the restoration or repair an Event of Default occurs hereunder, Lessor may, at its option, immediately cease making any further payments to Lessee for confidential treatment the restoration and repair.
(viii) Lessor may reimburse itself out of the Construction Funds for its reasonable expenses incurred in administering the Construction Funds and inspecting the restoration and repair work, including without limitation attorneys’ and other professional fees and escrow fees and expenses.
(ix) If damage or destruction shall occur either (a) during the final Lease Year of the Initial Term and Lessee has been made with respect not exercised its option to portions extend the Term of this document that are marked ‘[*****]’Lease pursuant to Section 1.3 above or (b) during the final Lease Year of the Renewal Term, then Lessor, at Lessor’s sole option, may elect to terminate the Lease as to the affected Facility (in which case Lessee shall surrender possession of the affected Facility and Lessee shall transfer to Lessor all of Lessee’s interest in the Facility, including, without limitation, Lessee’s interest in the licenses pursuant to which the Facility is then operated) and receive the Net Proceeds in lieu of Lessee restoring or repairing the damage or destruction. The redacted portions have been filed separately with election to terminate the SECLease as to the affected Facility and receive the Net Proceeds pursuant to this Section 14.7(ix) must be exercised by Lessor by Notice to Lessee on or prior to the tenth (10th) Business Day following Lessor’s receipt of Notice of such event of damage or destruction. 62 Master If Lessor elects to terminate the Lease (OHI - Diversicare) Derwent – 9.25.18as to the affected Facility and receive the Net Proceeds in lieu of Lessee restoring or repairing the damage or destruction, then, as of the Proceeds Date, the annual Base Rent due under this Lease during the remainder of the Term shall be reduced by an amount equal to the product of the annual Base Rent in effect from time to time and the Casualty/Condemnation Reduction Percentage.
Appears in 1 contract
Disbursement of Insurance Proceeds Equal to or Greater Than The Approval Threshold. If Tenant Lessee restores or repairs a Leased Property pursuant to this ARTICLE Article XIV, and if the Net Proceeds equal or exceed the Approval Threshold, the restoration or repair and disbursement of funds to Tenant Lessee shall be in accordance with the following procedures:
(ia) The restoration or repair work shall be done pursuant to plans and specifications approved by Landlord Lessor and a certified construction cost statement, to be obtained by Tenant Lessee from a contractor reasonably acceptable to LandlordLessor, showing the total cost of the restoration or repair; to the extent the cost exceeds the Net Proceeds, Tenant Lessee shall deposit with Landlord Lessor the amount of the excess cost, and Landlord Lessor shall disburse the funds so deposited in payment of the costs of restoration or repair before any disbursement of Net Proceeds.
(iib) Construction Funds shall be made available available, subject to Tenant a ten percent (10%) holdback, to Lessee upon request, but no more frequently than monthly, as the restoration and repair work progresses, progresses pursuant to certificates certificates, in form and substance reasonably acceptable to Lessor, of an architect selected by Tenant thatLessee and reasonably acceptable to Lessor (such architect to be, in the reasonable judgment of LandlordLessor, reasonably exercised, is highly qualified in the design and construction of the type of Facility facility being repaired and is otherwise reasonably acceptable to Landlord, which certificates must be in form and substance reasonably acceptable to Landlord. Payment of Construction Funds shall be subject to a ten percent (10%) holdback until the architect certifies that the work is fifty percent (50%) complete, after which, so long as there is no Event of Default under this Lease and so long as the architect certifies that work is proceeding in accordance with the schedule and budget, there shall be no further retainagerepaired).
(iiic) After the first disbursement to TenantLessee, sworn statements and lien waivers in an amount at least equal to the amount of Construction Funds previously paid to Tenant Lessee shall be delivered to Landlord Lessor from all contractors, subcontractors and material suppliers covering all labor and materials furnished through the date of the previous disbursement.
(ivd) Tenant Lessee shall deliver to Landlord Lessor such other evidence as Landlord Lessor reasonably may reasonably request request, from time to time during the course of the restoration and repair, as to the progress of the work, compliance with the approved plans and specifications, the cost of restoration and repair and the total amount needed to complete the restoration and repair, and showing that there are no liens against such the Leased Property arising in connection with the restoration and repair and that the cost of the restoration and repair at least equals the total amount of Construction Funds then disbursed to Tenant Lessee hereunder.
(ve) If the Construction Funds are at any time determined by Landlord Lessor to be inadequate for payment in full of all labor and materials for the restoration and repair, Tenant Lessee immediately shall immediately pay the amount of the deficiency to Landlord Lessor to be held and disbursed as Construction Funds prior to the disbursement of any other Construction Funds then held by LandlordLessor.
(f) The Construction Funds may be disbursed by Lessor to Lessee or to the persons entitled to receive payment thereof from Lessee, and such disbursement in either case may be made directly or through a third party escrow agent, such as, but not limited to, a title insurance company, or its agent, all as Lessor may determine in its sole discretion. A request Provided Lessee is not in default hereunder, any excess Construction Funds shall be paid to Lessee upon completion of the restoration or repair.
(g) If Lessee at any time fails to perform promptly and fully the conditions and covenants set forth in subparagraphs (a) through (f) above, and the failure is not corrected within ten (10) days of written Notice thereof, or if during the restoration or repair an Event of Default occurs, Lessor may, at its option, immediately cease making any further payments to Lessee for confidential treatment has been made with respect to portions the restoration and repair.
(h) Lessor may reimburse itself out of this document that are marked ‘[*****]’. The redacted portions have been filed separately with the SEC. 62 Master Lease (OHI - Diversicare) Derwent – 9.25.18Construction Funds for its reasonable expenses incurred in administering the Construction Funds and inspecting the restoration and repair work, including without limitation attorneys’ and other professional fees and escrow fees and expenses.
Appears in 1 contract
Disbursement of Insurance Proceeds Equal to or Greater Than The Approval Threshold. If Tenant Lessee restores or repairs a Leased Property pursuant to this ARTICLE XIV, and if the Net Proceeds equal or exceed the Approval Threshold, the restoration or repair and disbursement of funds to Tenant Lessee shall be in accordance with the following procedures:
(ia) The restoration or repair work shall be done pursuant to plans and specifications approved by Landlord Lessor and a certified construction cost statement, to be obtained by Tenant Lessee from a contractor reasonably acceptable to LandlordLessor, showing the total cost of the restoration or repair; to the extent the cost exceeds the Net Proceeds, Tenant Lessee shall deposit with Landlord Lessor the amount of the excess cost, and Landlord Lessor shall disburse the funds so deposited in payment of the costs of restoration or repair before any disbursement of Net Proceeds.
(iib) Construction Funds shall be made available available, subject to Tenant a ten percent (10%) holdback, to Lessee upon request, but no more frequently than monthly, as the restoration and repair work progresses, progresses pursuant to certificates certificates, in form and substance reasonably acceptable to Lessor, of an architect selected by Tenant that▇▇▇▇▇▇ and reasonably acceptable to Lessor (such architect to be, in the reasonable judgment of Landlord▇▇▇▇▇▇, reasonably exercised, is highly qualified in the design and construction of the type of Facility facility being repaired and is otherwise reasonably acceptable to Landlord, which certificates must be in form and substance reasonably acceptable to Landlord. Payment of Construction Funds shall be subject to a ten percent (10%) holdback until the architect certifies that the work is fifty percent (50%) complete, after which, so long as there is no Event of Default under this Lease and so long as the architect certifies that work is proceeding in accordance with the schedule and budget, there shall be no further retainagerepaired).
(iiic) After the first disbursement to Tenant▇▇▇▇▇▇, sworn statements and lien waivers in an amount at least equal to the amount of Construction Funds previously paid to Tenant Lessee shall be delivered to Landlord Lessor from all contractors, subcontractors and material suppliers covering all labor and materials furnished through the date of the previous disbursement.
(ivd) Tenant Lessee shall deliver to Landlord Lessor such other evidence as Landlord Lessor reasonably may reasonably request request, from time to time during the course of the restoration and repair, as to the progress of the work, compliance with the approved plans and specifications, the cost of restoration and repair and the total amount needed to complete the restoration and repair, and showing that there are no liens against such the Leased Property arising in connection with the restoration and repair and that the cost of the restoration and repair at least equals the total amount of Construction Funds then disbursed to Tenant Lessee hereunder.
(ve) If the Construction Funds are at any time determined by Landlord Lessor to be inadequate for payment in full of all labor and materials for the restoration and repair, Tenant Lessee immediately shall immediately pay the amount of the deficiency to Landlord Lessor to be held and disbursed as Construction Funds prior to the disbursement of any other Construction Funds then held by LandlordLessor.
(f) The Construction Funds may be disbursed by Lessor to Lessee or to the persons entitled to receive payment thereof from Lessee, and such disbursement in either case may be made directly or through a third party escrow agent, such as, but not limited to, a title insurance company, or its agent, all as Lessor may determine in its sole discretion. A request Provided Lessee is not in default hereunder, any excess Construction Funds shall be paid to Lessee upon completion of the restoration or repair.
(g) If Lessee at any time fails to perform promptly and fully the conditions and covenants set forth in subparagraphs (a) through (f) above, and the failure is not corrected within ten (10) days of written Notice thereof, or if during the restoration or repair an Event of Default occurs, Lessor may, at its option, immediately cease making any further payments to Lessee for confidential treatment has been made with respect to portions the restoration and repair.
(h) Lessor may reimburse itself out of this document that are marked ‘[*****]’. The redacted portions have been filed separately with the SEC. 62 Master Lease (OHI - Diversicare) Derwent – 9.25.18Construction Funds for its reasonable expenses incurred in administering the Construction Funds and inspecting the restoration and repair work, including without limitation reasonable attorneys’ and other professional fees and escrow fees and expenses.
Appears in 1 contract
Disbursement of Insurance Proceeds Equal to or Greater Than The Approval Threshold. If Tenant Lessee restores or repairs a Leased Property pursuant to this ARTICLE XIV, and if the Net Proceeds equal or exceed the Approval Threshold, the restoration or repair and disbursement of funds to Tenant Lessee shall be in accordance with the following procedures:
(ia) The restoration or repair work shall be done pursuant to plans and specifications approved by Landlord Lessor and a certified construction cost statement, to be obtained by Tenant Lessee from a contractor reasonably acceptable to LandlordLessor, showing the total cost of the restoration or repair; to the extent the cost exceeds the Net Proceeds, Tenant Lessee shall deposit with Landlord Lessor the amount of the excess cost, and Landlord Lessor shall disburse the funds so deposited in payment of the costs of restoration or repair before any disbursement of Net Proceeds.
(iib) Construction Funds shall be made available available, subject to Tenant a ten percent (10%) holdback, to Lessee upon request, but no more frequently than monthly, as the restoration and repair work progresses, progresses pursuant to certificates certificates, in form and substance reasonably acceptable to Lessor, of an architect selected by Tenant thatL▇▇▇▇▇ and reasonably acceptable to Lessor (such architect to be, in the reasonable judgment of LandlordL▇▇▇▇▇, reasonably exercised, is highly qualified in the design and construction of the type of Facility facility being repaired and is otherwise reasonably acceptable to Landlord, which certificates must be in form and substance reasonably acceptable to Landlord. Payment of Construction Funds shall be subject to a ten percent (10%) holdback until the architect certifies that the work is fifty percent (50%) complete, after which, so long as there is no Event of Default under this Lease and so long as the architect certifies that work is proceeding in accordance with the schedule and budget, there shall be no further retainagerepaired).
(iiic) After the first disbursement to TenantL▇▇▇▇▇, sworn statements and lien waivers in an amount at least equal to the amount of Construction Funds previously paid to Tenant Lessee shall be delivered to Landlord Lessor from all contractors, subcontractors and material suppliers covering all labor and materials furnished through the date of the previous disbursement.
(ivd) Tenant Lessee shall deliver to Landlord Lessor such other evidence as Landlord Lessor reasonably may reasonably request request, from time to time during the course of the restoration and repair, as to the progress of the work, compliance with the approved plans and specifications, the cost of restoration and repair and the total amount needed to complete the restoration and repair, and showing that there are no liens against such the Leased Property arising in connection with the restoration and repair and that the cost of the restoration and repair at least equals the total amount of Construction Funds then disbursed to Tenant Lessee hereunder.
(ve) If the Construction Funds are at any time determined by Landlord Lessor to be inadequate for payment in full of all labor and materials for the restoration and repair, Tenant Lessee immediately shall immediately pay the amount of the deficiency to Landlord Lessor to be held and disbursed as Construction Funds prior to the disbursement of any other Construction Funds then held by LandlordLessor.
(f) The Construction Funds may be disbursed by Lessor to Lessee or to the persons entitled to receive payment thereof from Lessee, and such disbursement in either case may be made directly or through a third party escrow agent, such as, but not limited to, a title insurance company, or its agent, all as Lessor may determine in its sole discretion. A request Provided Lessee is not in default hereunder, any excess Construction Funds shall be paid to Lessee upon completion of the restoration or repair.
(g) If Lessee at any time fails to perform promptly and fully the conditions and covenants set forth in subparagraphs (a) through (f) above, and the failure is not corrected within ten (10) days of written Notice thereof, or if during the restoration or repair an Event of Default occurs, Lessor may, at its option, immediately cease making any further payments to Lessee for confidential treatment has been made with respect to portions the restoration and repair.
(h) Lessor may reimburse itself out of this document that are marked ‘[*****]’. The redacted portions have been filed separately with the SEC. 62 Master Lease (OHI - Diversicare) Derwent – 9.25.18Construction Funds for its reasonable expenses incurred in administering the Construction Funds and inspecting the restoration and repair work, including without limitation reasonable attorneys’ and other professional fees and escrow fees and expenses.
Appears in 1 contract
Disbursement of Insurance Proceeds Equal to or Greater Than The Approval Threshold. If Tenant Lessee restores or repairs a Leased Property pursuant to this ARTICLE Article XIV, and if the Net Proceeds equal or exceed the Approval Threshold, the restoration or repair and disbursement of funds to Tenant Lessee shall be in accordance with the following procedures:
(ia) The restoration or repair work shall be done pursuant to plans and specifications approved by Landlord Lessor and a certified construction cost statement, to be obtained by Tenant Lessee from a contractor reasonably acceptable to LandlordLessor, showing the total cost of the restoration or repair; to the extent the cost exceeds the Net Proceeds, Tenant Lessee shall deposit with Landlord Lessor the amount of the excess cost, and Landlord Lessor shall disburse the funds so deposited in payment of the costs of restoration or repair before any disbursement of Net Proceeds.
(iib) Construction Funds shall be made available available, subject to Tenant a ten percent (10%) holdback, to Lessee upon request, but no more frequently than monthly, as the restoration and repair work progresses, progresses pursuant to certificates certificates, in form and substance reasonably acceptable to Lessor, of an architect selected by Tenant thatL▇▇▇▇▇ and reasonably acceptable to Lessor (such architect to be, in the reasonable judgment of LandlordL▇▇▇▇▇, reasonably exercised, is highly qualified in the design and construction of the type of Facility facility being repaired and is otherwise reasonably acceptable to Landlord, which certificates must be in form and substance reasonably acceptable to Landlord. Payment of Construction Funds shall be subject to a ten percent (10%) holdback until the architect certifies that the work is fifty percent (50%) complete, after which, so long as there is no Event of Default under this Lease and so long as the architect certifies that work is proceeding in accordance with the schedule and budget, there shall be no further retainagerepaired).
(iiic) After the first disbursement to TenantL▇▇▇▇▇, sworn statements and lien waivers in an amount at least equal to the amount of Construction Funds previously paid to Tenant Lessee shall be delivered to Landlord Lessor from all contractors, subcontractors and material suppliers covering all labor and materials furnished through the date of the previous disbursement.
(ivd) Tenant Lessee shall deliver to Landlord Lessor such other evidence as Landlord Lessor reasonably may reasonably request request, from time to time during the course of the restoration and repair, as to the progress of the work, compliance with the approved plans and specifications, the cost of restoration and repair and the total amount needed to complete the restoration and repair, and showing that there are no liens against such the Leased Property arising in connection with the restoration and repair and that the cost of the restoration and repair at least equals the total amount of Construction Funds then disbursed to Tenant Lessee hereunder.
(ve) If the Construction Funds are at any time determined by Landlord Lessor to be inadequate for payment in full of all labor and materials for the restoration and repair, Tenant Lessee immediately shall immediately pay the amount of the deficiency to Landlord Lessor to be held and disbursed as Construction Funds prior to the disbursement of any other Construction Funds then held by LandlordLessor.
(f) The Construction Funds may be disbursed by Lessor to Lessee or to the persons entitled to receive payment thereof from Lessee, and such disbursement in either case may be made directly or through a third party escrow agent, such as, but not limited to, a title insurance company, or its agent, all as Lessor may determine in its sole discretion. A request Provided Lessee is not in default hereunder, any excess Construction Funds shall be paid to Lessee upon completion of the restoration or repair.
(g) If Lessee at any time fails to perform promptly and fully the conditions and covenants set forth in subparagraphs (a) through (f) above, and the failure is not corrected within ten (10) days of written Notice thereof, or if during the restoration or repair an Event of Default occurs, Lessor may, at its option, immediately cease making any further payments to Lessee for confidential treatment has been made with respect to portions the restoration and repair.
(h) Lessor may reimburse itself out of this document that are marked ‘[*****]’. The redacted portions have been filed separately with the SEC. 62 Master Lease (OHI - Diversicare) Derwent – 9.25.18Construction Funds for its reasonable expenses incurred in administering the Construction Funds and inspecting the restoration and repair work, including without limitation attorneys’ and other professional fees and escrow fees and expenses.
Appears in 1 contract