Common use of MINIMUM RENT DURING EXTENDED TERMS Clause in Contracts

MINIMUM RENT DURING EXTENDED TERMS. The Minimum Rent at the commencement of each Extended Term shall be determined as set forth below: (a) The Minimum Rent at the commencement of the first Extended Term shall be the higher of: (i) the annual Minimum Rent at the rate paid during the twelve (12) month period immediately preceding the first Extended Term, increased by two percent (2%); (ii) the annual Minimum Rent at the rate that was payable as of the Commencement Date of this Lease, multiplied by a fraction, the numerator of which shall be the C.P.I. for the first calendar month of the first Extended Term and the denominator of which shall be the C.P.I. for the calendar month in which the Commencement Date of the Initial Term occurs; and (iii) the Fair Market Rent, as determined below. (b) The Minimum Rent at the commencement of the second Extended Term shall be the higher of: (i) the annual Minimum Rent at the rate paid during the twelve (12) month period immediately preceding the second Extended Term, increased by two percent (2%); (ii) the annual Minimum Rent at the rate paid during the first twelve (12) months of the first Extended Term multiplied by a fraction, the numerator of which shall be the C.P.I. for the first calendar month of the second Extended Term and the denominator of which shall be C.P.I. for the first calendar month of the first Extended Term; and (iii) the Fair Market Rent, as determined below. (c) If Lessor and Lessee cannot agree on the Fair Market Rent within thirty (30) days after the date of any Notice to Extend, each party shall, by notice to the other, appoint a disinterested and licensed M.A.I. Real Estate Appraiser with at least five years of experience appraising educational facilities to determine the Fair Market Rent. If any party should fail to appoint an appraiser within ten (10) days after notice, the appraiser selected by the other party shall determine the Fair Market Rent. In determining the Fair Market Rent, each appraiser shall give appropriate consideration to, among other things, generally applicable minimum rent for tenancies of property comparable to the Leased Property in the area in which the Leased Property is located. (d) If the two appraisers selected pursuant to Paragraph 18.2(c) above, cannot agree upon the Fair Market Rent within forty-five (45) days, they shall immediately give written notice of such inability ("Notice of Disagreement") to both Lessor and Lessee setting forth the Fair Market Rent determinations of each of the appraisers. If the determinations of each of the two appraisers of the Fair Market Rent at the commencement of such Extended Term differ by less than ten percent (10%) of the lower determination, the Fair Market Rent shall be fixed at an amount equal to the average of the two determinations. (e) If the determinations of each of the two appraisers selected pursuant to Paragraph 18.2(c), above, differ by ten percent (10%) or more of the lower determination with respect to the Fair Market Rent to be paid at the commencement of such Extended Term, then within thirty (30) days after the giving of the Notice of Disagreement, the two appraisers shall appoint a third disinterested and licensed M.A.I. Real Estate Appraiser with at least 5 years of experience appraising educational facilities. If the parties cannot then agree on the Fair Market Rent, the third appraiser shall determine the Fair Market Rent, and in so doing, shall give appropriate consideration to those items described in Paragraph 18.2(c). The third appraiser shall not select a Fair Market Rent either (i) higher than the highest of the two appraisals made pursuant to Paragraph 18.2(c); or (ii) lower than the lowest of the two appraisals made pursuant to Paragraph 18.2(c), above. If the first two appraisers cannot agree on the selection of a third appraiser within such thirty (30) days, or if the first two appraisers fail to provide a Notice of Disagreement (as stated above in Paragraph 18.2(d), above, then the Fair Market Rent shall be determined by a third appraiser selected by the American Arbitration Association (or such other organization at Lessor's election) upon application by Lessor. (f) During the time before the determination of the Fair Market Rent, Lessee shall pay Minimum Rent at the rate paid immediately preceding such Extended Term, increased by two percent (2%); provided, however, that, if the Fair Market Rent is determined to be higher than such amount, the Minimum Rent owed by Lessee at the Fair Market Rent shall be effective retroactively as of the first day of such Extended Term. If, after the Minimum Rent for an Extended Term is adjusted and applied retroactively as of the first day of such Extended Term, it is determined that additional Minimum Rent is due Lessor, the aggregate amount of any such additional Minimum Rent shall be paid to Lessor within thirty (30) days of the determination of the Fair Market Rent for such Extended Term. (g) Each of the parties shall pay the fees of the appraiser that it selects pursuant to Paragraph 18.2(c), above, and shall equally share the cost of the third appraiser, if necessary, and shall equally share the cost of arbitration (excluding attorneys' fees), if necessary.

MINIMUM RENT DURING EXTENDED TERMS. The Minimum Rent at the commencement of each Extended Term shall be determined as set forth below: (a) The Minimum Rent at the commencement of the first Extended Term shall be the higher of: (i) the annual Minimum Rent at the rate paid during the twelve (12) month period immediately preceding the first such Extended Term, increased by two percent (2%); and (ii) the annual Minimum Rent at the rate that was payable as of the Commencement Date of this Lease, multiplied by a fraction, the numerator of which shall be the C.P.I. for the first calendar month of the first Extended Term and the denominator of which shall be the C.P.I. for the calendar month in which the Commencement Date of the Initial Term occurs; and (iii) the Fair Market Rent, as determined below. (b) . The Minimum Rent shall be redetermined at the commencement of the second Extended Term shall be the higher of: (i) the annual Minimum Rent at the rate paid during the twelve (12) month period immediately preceding the second Extended Term, increased by two percent (2%); (ii) the annual Minimum Rent at the rate paid during the first twelve (12) months of both the first Extended Term multiplied by a fraction, the numerator of which shall be the C.P.I. for the first calendar month of and the second Extended Term and the denominator of which upon such determination shall be C.P.I. apply for the first calendar month of the first entire Extended Term; and Term (iiisubject to annual adjustments as set forth in Paragraph 3.1(c) the Fair Market Rent, as determined belowhereof). (ca) If Lessor and Lessee cannot agree on the Fair Market Rent within thirty (30) days after the date of any Notice to Extend, each party shall, by notice to the other, appoint a disinterested and licensed M.A.I. Real Estate Appraiser with at least five years of experience appraising educational in long term care facilities in the State of Oklahoma (with the same type of operating license and as that in effect for the Facility) to determine the Fair Market Rent. If any party should fail to appoint an appraiser within ten (10) days after notice, the appraiser selected by the other party shall determine the Fair Market Rent. In determining the Fair Market Rent, each appraiser shall give appropriate consideration to, among other things, generally applicable minimum rent for tenancies of property comparable to the Leased Property in the area in which the Leased Property is located. (db) If the two appraisers selected pursuant to Paragraph 18.2(c18.2(a) above, cannot agree upon the Fair Market Rent within forty-forty- five (45) days, they shall immediately give written notice of such inability ("Notice of Disagreement") to both Lessor and Lessee setting forth the Fair Market Rent determinations of each of the appraisers. If the determinations of each of the two appraisers of the Fair Market Rent at the commencement of such Extended Term differ by less than ten percent (10%) of the lower determination, the Fair Market Rent shall be fixed at an amount equal to the average of the two determinations. (ec) If the determinations of each of the two appraisers selected pursuant to Paragraph 18.2(c18.2(a), above, differ by ten percent (10%) or more of the lower determination with respect to the Fair Market Rent to be paid at the commencement of such Extended Term, then within thirty (30) days after the giving of the Notice of Disagreement, the two appraisers shall appoint a third disinterested and licensed M.A.I. M.A. I. Real Estate Appraiser with at least 5 years of experience appraising educational long term care facilities. If the parties cannot then agree on the Fair Market Rent, the third appraiser shall determine the Fair Market Rent, and in so doing, shall give appropriate consideration to those items described in Paragraph 18.2(c). 18.2 (a) The third appraiser shall not select a Fair Market Rent either (i) higher than the highest of the two appraisals made pursuant to Paragraph 18.2(c18.2(a); or (ii) lower than the lowest of the two appraisals made pursuant to Paragraph 18.2(c18.2(a), above. If the first two appraisers cannot agree on the selection of a third appraiser within such thirty (30) days, or if the first two appraisers fail to provide a Notice of Disagreement (as stated above in Paragraph 18.2(d18.2(b), above, then the Fair Market Rent shall be determined by a third appraiser selected by the American Arbitration Association (or such other organization at Lessor's election) upon application by Lessor. (fd) During the time before the determination of the Fair Market Rent, Lessee shall pay Minimum Rent at the rate paid immediately preceding such Extended Term, increased by two percent (2%); provided, however, that, if the Fair Market Rent is determined to be higher than such amount, the Minimum Rent owed by Lessee at the Fair Market Rent shall be effective retroactively as of the first day of such Extended Term. If, after the Minimum Rent for an Extended Term is adjusted and applied retroactively as of the first day of such Extended Term, it is determined that additional Minimum Rent is due Lessor, the aggregate amount of any such additional Minimum Rent shall be paid to Lessor within thirty (30) days of the determination of the Fair Market Rent for such Extended Term. (ge) Each of the parties shall pay the fees of the appraiser that it selects pursuant to Paragraph 18.2(c18.2(a), above, and shall equally share the cost of the third appraiser, if necessary, and shall equally share the cost of arbitration (excluding attorneys' fees), if necessary.

MINIMUM RENT DURING EXTENDED TERMS. The Minimum Rent at the commencement of each Extended Term shall be the Adjusted Rent, as determined as set forth below:. (a) The Minimum Adjusted Rent at the commencement of for the first Extended Term shall be the higher of: (i) the annual Minimum Rent at the rate paid during the twelve (12) month period immediately preceding the first Extended Term, increased by two percent (2%)in accordance with the method described in Paragraph 3.1.2, above; and (ii) the annual Minimum Rent at the rate that was payable as of the Commencement Date of this Lease, multiplied by a fraction, the numerator of which shall be the C.P.I. Consumer Price Index published as the "CPI-U" Index by the Bureau of Labor Statistics of the Department of Labor, U.S. Cities Average All Items (1982-84=100), in the manner calculated on the date of this Lease (hereinafter "C.P.I.") for the first calendar month of during which the first Extended Term Notice to Extend was given to Lessor, and the denominator of which shall be the C.P.I. for the calendar month in which for the Commencement Date of the Initial Term occurs; and (iii) the Fair Market Rent, as determined belowTerm. (b) The Minimum Adjusted Rent at the commencement of for the second Extended Term shall be the higher of: (i) the annual Minimum Rent at the rate paid during the twelve (12) month period immediately preceding the second Extended Term, increased by two percent (2%)in accordance with the method described in Paragraph 3.2.1, above; and (ii) the annual Fair Market Rent, as determined below; and (iii) the Minimum Rent at the rate paid during the first twelve (12) months that was payable as of the first Extended Term Commencement Date of this Lease multiplied by a fraction, the numerator of which shall be the C.P.I. for the first calendar month of during which the second Extended Term Notice to Extend was given to Lessor, and the denominator of which shall be C.P.I. for the first calendar month Commencement Date of the first Extended Term; and (iii) the Fair Market Rent, as determined below. (c) If Lessor and Lessee cannot agree on the Fair Market Rent within thirty (30) days after the date of any the Notice to ExtendExtend for the second Extended Term, each party shall, by notice to the other, appoint a disinterested and licensed M.A.I. Real Estate Appraiser with at least five years of experience appraising educational facilities in assisted care properties in Indiana (with the same type of operating license and as that in effect for the Facility) to determine the Fair Market Rent. If any party should fail to appoint an appraiser within ten (10) days after notice, the appraiser selected by the other party shall determine the Fair Market Rent. In determining the Fair Market Rent, each appraiser shall give appropriate consideration to, among other things, generally applicable minimum rent Minimum Rent for tenancies of property comparable to the Leased Property in the area in which the Leased Property is located. (d) If the two appraisers selected pursuant to Paragraph 18.2(c18.2(a) above, cannot agree upon the Fair Market Rent within forty-five (45) days, they shall immediately give written notice of such inability ("Notice of Disagreement") to both Lessor and Lessee setting forth the Fair Market Rent determinations of each of the appraisers. If the determinations of each of the two appraisers of the Fair Market Rent at the commencement of such second Extended Term differ by less than ten percent (10%) of the lower determination, the Fair Market Rent shall be fixed at an amount equal to the average of the two determinations. (e) If the determinations of each of the two appraisers selected pursuant to Paragraph 18.2(c), above, differ by ten percent (10%) or more of the lower determination with respect to the Fair Market Rent to be paid at the commencement of such second Extended Term, then within thirty (30) days after the giving of the Notice of Disagreement, the two appraisers shall appoint a third disinterested and licensed M.A.I. Real Estate Appraiser with at least 5 years of experience in Indiana appraising educational facilitiesassisted care properties in Indiana (with the same type of operating license and as that in effect for the Facility). If the parties cannot then agree on the Fair Market Rent, the third appraiser shall determine the Fair Market Rent, and in so doing, shall give appropriate consideration to those items described in Paragraph 18.2(c). The third appraiser shall not select a Fair Market Rent Value either (ia) higher than the highest of the two appraisals made pursuant to Paragraph 18.2(c); or (iib) lower than the lowest of the two appraisals made pursuant to Paragraph 18.2(c), above. If the first two appraisers cannot agree on the selection of a third appraiser within such thirty (30) days, or if the first two appraisers fail to provide a Notice of Disagreement (as stated above in Paragraph 18.2(d), above, then the Fair Market Rent shall be determined by a third appraiser selected by the American Arbitration Association (or such other organization at Lessor's election) upon application by Lessor. (f) During the time before the availability of the C.P.I. or the determination of the Fair Market Rent, as applicable, Lessee shall continue to pay Minimum Rent at the same rate as paid immediately preceding such the subject Extended Term, increased by two percent (2%); provided, however, that, if once the Fair Market Adjusted Rent is determined to be higher than such amountdetermined, the Minimum Rent owed by Lessee at the Fair Market Adjusted Rent shall be effective retroactively as of the first day of such Extended Term. If, after the Minimum Rent for an Extended Term is adjusted and applied retroactively as of the first day of such Extended Term, it is determined that additional Minimum Rent is due Lessor, the aggregate amount of any such additional Minimum Rent shall be paid to Lessor within thirty (30) days of the determination of the Fair Market Adjusted Rent for such Extended Term. (g) Each of the parties shall pay the fees of the appraiser that it selects pursuant to Paragraph 18.2(c), above, and shall equally share the cost of the third appraiser, if necessary, and shall equally share the cost of arbitration (excluding attorneys' fees), if necessary.

MINIMUM RENT DURING EXTENDED TERMS. The Minimum Rent at the commencement of each Extended Term shall be determined as set forth below: (a) The Minimum Rent at the commencement of the first Extended Term shall be the higher of: (i) the annual previous year's Minimum Rent at the rate paid during the twelve (12) month period immediately preceding the first Extended Termamount, increased by two percent (2%); (ii) in accordance with the annual Minimum Rent at the rate that was payable as of the Commencement Date of this Leasemethod described in Paragraph 3.2, multiplied by a fraction, the numerator of which shall be the C.P.I. for the first calendar month of the first Extended Term and the denominator of which shall be the C.P.I. for the calendar month in which the Commencement Date of the Initial Term occursabove; and (iiiii) the Fair Market Rent, as determined below. (b) . The Minimum Rent shall be redetermined at the commencement of the second Extended Term shall be the higher of: (i) the annual Minimum Rent at the rate paid during the twelve (12) month period immediately preceding the second Extended Term, increased by two percent (2%); (ii) the annual Minimum Rent at the rate paid during the first twelve (12) months of both the first Extended Term multiplied by a fraction, the numerator of which shall be the C.P.I. for the first calendar month of and the second Extended Term and the denominator of which upon such determination shall be C.P.I. apply for the first calendar month of the first entire Extended Term; and Term (iii) the Fair Market Rent, subject to annual adjustments as determined belowprovided in Paragraph 3.2 hereof). (ca) If Lessor and Lessee cannot agree on the Fair Market Rent within thirty (30) days after the date of any Notice to Extend, each party shall, by notice to the other, appoint a disinterested and licensed M.A.I. Real Estate Appraiser with at least five years of experience in appraising educational long term care facilities in the State of Colorado (with the same type of operating license as that which is then in effect for the Facility) to determine the Fair Market Rent. If any party should fail to appoint an appraiser within ten (10) days after notice, the appraiser selected by the other party shall determine the Fair Market Rent. In determining the Fair Market Rent, each appraiser shall give appropriate consideration to, among other things, generally applicable minimum rent for tenancies of property comparable to the Leased Property in the area in which the Leased Property is located. (db) If the two appraisers selected pursuant to Paragraph 18.2(c18.2(a) above, cannot agree upon the Fair Market Rent within forty-five (45) days, they shall immediately give written notice of such inability ("Notice of Disagreement") to both Lessor and Lessee setting forth the Fair Market Rent determinations of each of the appraisers. If the determinations of each of the two appraisers of the Fair Market Rent at the commencement of such Extended Term differ by less than ten percent (10%) of the lower determination, the Fair Market Rent shall be fixed at an amount equal to the average of the two determinations. (ec) If the determinations of each of the two appraisers selected pursuant to Paragraph 18.2(c18.2(a), above, differ by ten percent (10%) or more of the lower determination with respect to the Fair Market Rent to be paid at the commencement of such Extended Term, then within thirty (30) days after the giving of the Notice of Disagreement, the two appraisers shall appoint a third disinterested and licensed M.A.I. M.A. I. Real Estate Appraiser with at least 5 years of experience appraising educational facilitieslong term care facilities with the same type of operating license which is then in effect for the Facility. If the parties cannot then agree on the Fair Market Rent, the third appraiser shall determine the Fair Market Rent, and in so doing, shall give appropriate consideration to those items described in Paragraph 18.2(c). 18.2 (a) The third appraiser shall not select a Fair Market Rent either (i) higher than the highest of the two appraisals made pursuant to Paragraph 18.2(c18.2(a); or (ii) lower than the lowest of the two appraisals made pursuant to Paragraph 18.2(c18.2(a), above. If the first two appraisers cannot agree on the selection of a third appraiser within such thirty (30) days, or if the first two appraisers fail to provide a Notice of Disagreement (as stated above in Paragraph 18.2(d18.2(b), above, then the Fair Market Rent shall be determined by a third appraiser selected by the American Arbitration Association (or such other organization at Lessor's election) upon application by Lessor. (fd) During the time before the determination of the Fair Market Rent, Lessee shall pay Minimum Rent at the rate paid immediately preceding such Extended Term, increased by two percent (2%); provided, however, that, if the Fair Market Rent is determined to be higher than such amount, the Minimum Rent owed by Lessee at the Fair Market Rent shall be effective retroactively as of the first day of such Extended Term. If, after the Minimum Rent for an Extended Term is adjusted and applied retroactively as of the first day of such Extended Term, it is determined that additional Minimum Rent is due Lessor, the aggregate amount of any such additional Minimum Rent shall be paid to Lessor within thirty (30) days of the determination of the Fair Market Rent for such Extended Term. (ge) Each of the parties shall pay the fees of the appraiser that it selects pursuant to Paragraph 18.2(c18.2(a), above, and shall equally share the cost of the third appraiser, if necessary, and shall equally share the cost of arbitration (excluding attorneys' fees), if necessary.

MINIMUM RENT DURING EXTENDED TERMS. The Minimum Rent at the commencement of each Extended Term shall be determined as set forth below: (a) The Minimum Rent at the commencement of the first Extended Term shall be the higher of: (i) the annual Minimum Rent at the rate paid during the twelve (12) month period immediately preceding the first Extended Term, increased by two percent (2%); (ii) the annual Minimum Rent at the rate that was payable as of the Commencement Date of this Lease, multiplied by a fraction, the numerator of which shall be the C.P.I. for the first calendar month of the first Extended Term and the denominator of which shall be the C.P.I. for the calendar month in which the Commencement Date of the Initial Term occurs; and (iii) the Fair Market Rent, as determined below. (b) The Minimum Rent at the commencement of the second Extended Term shall be the higher of: (i) the annual Minimum Rent at the rate paid during the twelve (12) month period immediately preceding the second Extended Term, increased by two percent (2%); (ii) the annual Minimum Rent at the rate paid during the first twelve (12) months of the first Extended Term multiplied by a fraction, the numerator of which shall be the C.P.I. for the first calendar month of the second Extended Term and the denominator of which shall be C.P.I. for the first calendar month of the first Extended Term; and (iii) the Fair Market Rent, as determined below. (c) If Lessor and Lessee cannot agree on the Fair Market Rent within thirty (30) days after the date of any Notice to Extend, each party shall, by notice to the other, appoint a disinterested and licensed M.A.I. Real Estate Appraiser with at least five years of experience appraising educational facilities to determine the Fair Market Rent. If any party should fail to appoint an appraiser within ten (10) days after notice, the appraiser selected by the other party shall determine the Fair Market Rent. In determining the Fair Market Rent, each appraiser shall give appropriate consideration to, among other things, generally applicable minimum rent for tenancies of property comparable to the Leased Property in the area in which the Leased Property is located. (d) If the two appraisers selected pursuant to Paragraph 18.2(c) above, cannot agree upon the Fair Market Rent within forty-five (45) days, they shall immediately give written notice of such inability ("Notice of Disagreement") to both Lessor and Lessee setting forth the Fair Market Rent determinations of each of the appraisers. If the determinations of each of the two appraisers of the Fair Market Rent at the commencement of such Extended Term differ by less than ten percent (10%) of the lower determination, the Fair Market Rent shall be fixed at an amount equal to the average of the two determinations. (e) If the determinations of each of the two appraisers selected pursuant to Paragraph 18.2(c), above, differ by ten percent (10%) or more of the lower determination with respect to the Fair Market Rent to be paid at the commencement of such Extended Term, then within thirty (30) days after the giving of the Notice of Disagreement, the two appraisers shall appoint a third disinterested and licensed M.A.I. M.A. I. Real Estate Appraiser with at least 5 years of experience appraising educational facilities. If the parties cannot then agree on the Fair Market Rent, the third appraiser shall determine the Fair Market Rent, and in so doing, shall give appropriate consideration to those items described in Paragraph 18.2(c). The third appraiser shall not select a Fair Market Rent either (i) higher than the highest of the two appraisals made pursuant to Paragraph 18.2(c); or (ii) lower than the lowest of the two appraisals made pursuant to Paragraph 18.2(c), above. If the first two appraisers cannot agree on the selection of a third appraiser within such thirty (30) days, or if the first two appraisers fail to provide a Notice of Disagreement (as stated above in Paragraph 18.2(d), above, then the Fair Market Rent shall be determined by a third appraiser selected by the American Arbitration Association (or such other organization at Lessor's election) upon application by Lessor. (f) During the time before the determination of the Fair Market Rent, Lessee shall pay Minimum Rent at the rate paid immediately preceding such Extended Term, increased by two percent (2%); provided, however, that, if the Fair Market Rent is determined to be higher than such amount, the Minimum Rent owed by Lessee at the Fair Market Rent shall be effective retroactively as of the first day of such Extended Term. If, after the Minimum Rent for an Extended Term is adjusted and applied retroactively as of the first day of such Extended Term, it is determined that additional Minimum Rent is due Lessor, the aggregate amount of any such additional Minimum Rent shall be paid to Lessor within thirty (30) days of the determination of the Fair Market Rent for such Extended Term. (g) Each of the parties shall pay the fees of the appraiser that it selects pursuant to Paragraph 18.2(c), above, and shall equally share the cost of the third appraiser, if necessary, and shall equally share the cost of arbitration (excluding attorneys' fees), if necessary.