FINANCING OF MODIFICATIONS Clause Samples

FINANCING OF MODIFICATIONS. (a) Lessee may from time to time, so long as no Event of Default or Default shall have occurred and be continuing, request Lessor to arrange for construction or permanent financing of any proposed Modifications to the Property or any part thereof, provided that such Modifications shall not include Modifications required under any provision of this Lease to replace the Facility or any part existing on the Closing Date, including those required under Section 13, and further provided, that Lessee delivers an Officer's Certificate stating that (i) the estimated costs and expenses of such proposed Modifications are equal to or greater than $10,000,000, (ii) such proposed Modifications benefit the Property and are of a consistent or otherwise appropriate character and use as the Property, (iii) the amount of the requested financing does not exceed the estimated costs and expenses incurred or to be incurred in connection with such proposed Modifications (which amount shall not include any leasehold improvement costs), and (iv) such proposed Modifications, if completed in accordance with the Plans and Specifications therefor, will increase the Fair Market Sales Value of the Property by an amount at least equal to the amount of the proposed financing (such Fair Market Sales Value to be determined by an appraisal to be provided by an appraiser selected by Lessor, which appraisal and appraiser shall be reasonably satisfactory to Lessee). Such request shall set forth in reasonable detail a brief narrative of such proposed Modifications and shall be accompanied by Plans and Specifications therefor. As soon as reasonably practical and in any event within thirty (30) days after receipt by Lessor of such Officer's Certificate from Lessee, Lessor shall notify Lessee either (x) that Lessor does not wish to arrange such construction and/or permanent financing or (y) that Lessor does wish to arrange such construction and/or permanent financing (and setting forth the terms of Lessor's proposal therefor). In the latter event, Lessor and Lessee shall (subject to the provisions of the Loan Agreement if at the time in effect) (A) offer to the Lenders the opportunity to participate in such construction and/or permanent financing, and in the event that the Lenders agree to participate in such financing, arrange for the issuance of additional secured notes requested by Lessee, to be issued pursuant to the Loan Agreement on terms satisfactory to Lessee, Lessor, and the Lenders, (B) wh...