Amended and Restated Lease and Security Agreement
by and between
Nationwide Health Properties, Inc.,
a Maryland corporation,
as "Landlord"
and
Alternative Living Services, Inc.
a Delaware corporation
as "Tenant"
Dated June 18, 1996 2
TABLE OF CONTENTS
Page
1. Term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.1 Term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2 Renewal Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.3 Construction of Expansion Premises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2. Original River Place Premises Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.1 Initial Term Minimum Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.2 Initial Term Additional Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.3 Renewal Term Minimum Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.4 Renewal Term Additional Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.5 Total Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.6 Rent Cap and Floor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
3. River Place Expansion Premises Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
3.1 Initial Term Expansion Premises Minimum Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
3.2 Initial Term Expansion Premises Additional Rent . . . . . . . . . . . . . . . . . . . . . . . . . . 8
3.3 Renewal Term Expansion Premises Minimum Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
3.4 Renewal Term Expansion Premises Additional Rent . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.5 Total Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.6 Expansion Premises Rent Cap and Floor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.7 Proration for Partial Periods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.8 Form for Additional Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.9 Absolute Net Lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
4. Taxes, Assessments and Other Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
4.1 Tenant's Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
4.2 Proration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
4.3 Right to Protest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
4.4 Tax Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
4.5 Other Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
5. Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
5.1 General Insurance Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
5.2 Fire and Other Casualty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
5.3 Public Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
5.4 Professional Liability Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
5.5 Workers Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
5.6 Boiler Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
5.7 Business Interruption Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
5.8 Application of this Section 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
5.9 Deductible Amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
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6. Use, Maintenance and Alteration of the Premises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
6.1 Tenant's Maintenance Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
6.2 Regulatory Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
6.3 Permitted Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
6.4 [Intentionally Omitted] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
6.5 No Liens; Permitted Contests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
6.6 Alterations by Tenant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
6.7 Capital Improvements Funded by Landlord . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
6.8 Compliance With IRS Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
7. Condition And Title Of Premises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
8. Landlord and Tenant Personal Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
8.1 Tenant Personal Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
8.2 Landlord's Security Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
8.3 Financing Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
8.4 Intangible Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
9. Representations And Warranties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
9.1 Due Authorization And Execution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
9.2 Due Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
9.3 No Breach of Other Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
10. Financial, Management and Regulatory Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
10.1 Monthly Facility Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
10.2 Quarterly Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
10.3 Annual Financial Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
10.4 Accounting Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
10.5 Regulatory Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
11. Events of Default and Landlord's Remedies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
11.1 Events of Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
11.2 Remedies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
11.3 Receivership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
11.4 Late Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
11.5 Remedies Cumulative; No Waiver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
11.6 Performance of Tenant's Obligations by Landlord . . . . . . . . . . . . . . . . . . . . . . . . . . 31
11.7 Waiver of Redemption Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
12. Security Deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
13. Damage by Fire or Other Casualty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
13.1 Reconstruction Using Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
13.2 Surplus Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
13.3 No Rent Abatement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
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14. Condemnation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
14.1 Complete Taking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
14.2 Partial Taking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
14.3 Lease Remains in Effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
15. Provisions on Termination of Term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
15.1 Surrender of Possession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
15.2 Removal of Personal Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
15.3 Title to Personal Property Not Removed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
15.4 Management of Premises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
15.5 Correction of Deficiencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
16. Notices and Demands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
17. Right of Entry; Examination of Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
18. Landlord May Grant Liens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
19. Quiet Enjoyment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
20. Applicable Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
21. Preservation of Gross Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
22. Hazardous Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
22.1 Hazardous Material Covenants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
22.2 Tenant Notices to Landlord . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
22.3 Extension of Term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
22.4 Participation in Hazardous Materials Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
22.5 Environmental Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
22.6 Hazardous Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
22.7 Hazardous Materials Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
22.8 Hazardous Materials Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
23. Assignment and Subletting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
24. Indemnification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
25. Holding Over . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
26. Estoppel Certificates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
27. Conveyance by Landlord . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
28. Waiver of Jury Trial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
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29. Attorneys' Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
30. Severability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
31. Counterparts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
32. Binding Effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
33. Waiver and Subrogation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
34. Memorandum of Lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
35. Incorporation of Recitals and Attachments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
36. Titles and Headings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
37. Usury Savings Clause . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
38. Joint and Several . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
39. Survival of Representations, Warranties and Covenants . . . . . . . . . . . . . . . . . . . . . . . . . . 43
40. Interpretation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
EXHIBITS EXHIBIT A(1) LEGAL DESCRIPTION OF THE PREMISES EXHIBIT A(2) LEGAL DESCRIPTION OF ACQUIRED PARCELS EXHIBIT A(3) LEGAL DESCRIPTION OF EXCHANGED PARCEL EXHIBIT B LANDLORD PERSONAL PROPERTY EXHIBIT C SAMPLE PROCEDURES FOR DETERMINING BLENDED ANNUAL PERCENTAGE RATE EXHIBIT D APPRAISAL PROCESS EXHIBIT E PERMITTED EXCEPTIONS EXHIBIT F GROUP LEASES
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AMENDED AND RESTATED LEASE AND SECURITY AGREEMENT
THIS AMENDED AND RESTATED LEASE AND SECURITY AGREEMENT ("LEASE") is made and entered into as of the 18th day of June, 1996 by and between Nationwide Health Properties, Inc., a Maryland corporation ("LANDLORD"), and Alternative Living Services, Inc., a Delaware corporation (as successor by merger to New Crossings International Corporation) ("TENANT").
R E C I T A L S:
A. Landlord and New Crossings International Corporation, a Nevada corporation ("NEW CROSSINGS"), are parties to that certain Lease and Security Agreement dated as of December 15, 1995, as amended by that certain Acknowledgment, Consent and Amendment of Lease Documents dated as of May 23, 1996 (the "FIRST AMENDMENT"), by and among Landlord, New Crossings and Tenant (as amended, the "ORIGINAL LEASE"), pursuant to the terms and conditions of which Landlord agreed to lease to Tenant, and Tenant agreed to lease from Landlord, on terms and conditions as more specifically set forth in the Original Lease, that certain real property, all improvements thereon and all appurtenances thereto, presently used as a residential and/or healthcare and/or long-term care facility which provides various services for the infirm, frail and/or elderly, including, without limitation, residential, assistance with daily living functions, long term healthcare services and other medically related services (collectively, "ALF/ILF") licensed for eighty (80) units, located at 739 E. Parkcenter Boulevard, Boise, Idaho 83706 and more specifically described in Exhibit "A" of the Original Lease, together with the furniture, machinery, equipment, appliances, fixtures and other personal property used in connection therewith ("LANDLORD PERSONAL PROPERTY") as more specifically described on Exhibit "B" attached hereto (but specifically excluding vehicles and supplies) (collectively, the "RIVER PLACE PREMISES").
B. Pursuant to the terms of that certain Side Letter Agreement dated December 15, 1995, between Landlord and Tenant, as amended by the First Amendment, Tenant desires to construct on that portion of the Premises (as hereinafter defined) located at 741 E. Parkcenter Boulevard, Boise, Idaho 83706 and more particularly depicted on the "Design Drawings" described in the Development Agreement (as hereinafter defined), an additional ALF/ILF licensed for seventy-eight (78) units (the "RIVER PLACE EXPANSION PREMISES"), and Landlord will fund a portion of the construction of the River Place Expansion Premises pursuant to the terms of that certain Development Agreement of even date herewith between Landlord, as owner, and Tenant, as developer (the "DEVELOPMENT AGREEMENT").
C. In connection with the development of the River Place Expansion Premises, (i) Landlord has agreed to purchase that certain unimproved real property located adjacent to the
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River Place Premises and more specifically described in Exhibit "A(2)" attached hereto (the "ACQUIRED PARCELS"), (ii) Landlord has agreed to lease the Acquired Parcels to Tenant, and Tenant has agreed to lease the Acquired Parcels from Landlord, (iii) Landlord has agreed to transfer all of its estate, right, title and interest in and to that certain unimproved portion of the River Place Premises described in Exhibit "A(3)" attached hereto (the "EXCHANGED PARCEL") to Douglas W. Tamura, an individual, in exchange for a portion of the Acquired Parcels, and (iv) Tenant has agreed to substitute its leasehold interest in the Exchanged Parcel for a leasehold interest in the Acquired Parcels. For all purposes herein, the River Place Premises, excluding the Exchanged Parcel and the River Place Expansion Premises, shall be collectively referred to in this Lease as the "ORIGINAL RIVER PLACE PREMISES".
D. The foregoing property owned by Landlord, including, without limitation, the Original River Place Premises and the River Place Expansion Premises (which is collectively more specifically described on Exhibit "A(1)" attached hereto), together with the furniture, machinery, equipment, appliances, fixtures and other personal property used in connection therewith and conveyed to Landlord pursuant to Section 6.7 below, shall be collectively referred to in this Lease as the "PREMISES".
E. Landlord and Tenant now desire to amend and restate the Original Lease in its entirety to reflect the parties agreements and modifications of the Original Lease.
NOW, THEREFORE, taking into account the foregoing Recitals, and in consideration of the covenants and conditions herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree to amend and restate the Original Lease in its entirety as follows:
1. TERM.
1.1 TERM. The term of this Lease shall commence on December 15, 1995 and shall end on December 31, 2014 (the "INITIAL TERM") unless extended pursuant to Section 1.2 or earlier terminated in accordance with the provisions hereof. The Initial Term and all Renewal Terms are referred to collectively as the "TERM".
1.2 RENEWAL TERMS. The Term may be extended for three (3) separate renewal terms (each a "RENEWAL TERM") of ten (10) years each, upon the satisfaction of all of the following terms and conditions:
1.2.1 Not more than thirty (30) days before or after the
date which is fifteen (15) months prior to the end of the then
current Term, Tenant shall give Landlord written notice that Tenant
desires to determine the applicable Minimum Rent and Expansion
Premises Minimum Rent for a subsequent Renewal Term pursuant to the
provisions of Sections 2.3 and 3.3 below for the purpose of
evaluating whether Tenant desires to exercise its right to extend
the then current Term for one (1) Renewal Term. On or before the
date which is twelve (12)
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months prior to the end of the then current Term, Tenant shall give
Landlord written notice if Tenant desires to exercise its right to
extend the then current Term for one (1) Renewal Term.
1.2.2 There shall be no continuing Event of Default
under this Lease, either on the date of Tenant's notices to
Landlord pursuant to Section 1.2.1 above, or on the last day of the
then current Term.
1.2.3 Concurrently with the notices required under
Section 1.2.1, Tenant, as tenant under the Group Leases (as defined
and described on Exhibit "F" attached hereto), shall give Landlord
notices with respect to the renewal or extension of the then
current lease term of the Group Leases. Tenant hereby acknowledges
and agrees that the exercise of its renewal option set forth in
this Section 1.2 is contingent upon the concurrent exercise of all
of Tenant's renewal options under Section 1.2 of each of the Group
Leases. In no event shall Tenant be entitled to exercise its
renewal options under this Section 1.2 unless Tenant concurrently
exercises its renewal options under Section 1.2 of all of the Group
Leases.
1.2.4 All other provisions of this Lease shall remain in
full force and effect and shall continuously apply throughout the
Renewal Term(s).
1.3 CONSTRUCTION OF EXPANSION PREMISES. Tenant shall construct the River Place Expansion Premises, and Landlord shall fund such construction, in accordance with the terms and conditions of the Development Agreement.
2. ORIGINAL RIVER PLACE PREMISES RENT. During the Initial Term and all Renewal Terms Tenant shall pay to Landlord, with respect to the Original River Place Premises, minimum rent ("MINIMUM RENT") and additional rent ("ADDITIONAL RENT") as follows:
2.1 INITIAL TERM MINIMUM RENT. During the Initial Term, Tenant shall pay to Landlord Minimum Rent of $568,244.50 annually. Such Minimum Rent with respect to each month shall be paid in advance and in equal monthly installments of $47,353.71 on the first business day of each such calendar month.
2.2 INITIAL TERM ADDITIONAL RENT.
2.2.1 Commencing with the third Lease Year and
continuing thereafter, Tenant agrees to pay Additional Rent to
Landlord on a quarterly basis in arrears no more than 45 days after
the end of each quarter of the Lease Year. Such Additional Rent
shall be equal to the sum of (i) ten percent (10%) of the amount by
which the Gross Revenues for the Lease Year through the applicable
quarter exceed the prorated Gross Revenues for the applicable
portion of the Base Year and (ii) five percent (5%) of the amount
by which the Gross Medicare Home Health Revenues for the Lease Year
through the applicable quarter exceed the prorated Gross Medicare
Home Health Revenues for the applicable portion of the Base Year
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and (iii) five percent (5%) of the amount by which the Gross
Non-Medicare Home Health Revenues for the Lease Year through the
applicable quarter exceed the prorated Gross Non-Medicare Home
Health Revenues for the applicable portion of the Base Year.
2.2.2 "GROSS REVENUES" shall be calculated according to
generally accepted accounting principles consistently applied
("GAAP") and shall be defined as all revenues generated by the
operation, sublease and/or use of the Original River Place Premises
in any way, excluding (i) contractual allowances during the Term
for billings not paid by or received from the appropriate
governmental agencies or third party providers; (ii) all proper
resident billing credits and adjustments according to GAAP relating
to health care accounting; (iii) federal, state or local sales or
excise taxes and any tax based upon or measured by said revenues
which is added to or made a part of the amount billed to the
resident or other recipient of such services or goods, whether
included in the billing or stated separately; (iv) Gross Medicare
Home Health Revenues; and (v) Gross Non-Medicare Home Health
Revenues.
2.2.3 "GROSS MEDICARE HOME HEALTH REVENUES" shall be
calculated according to GAAP and shall be defined as all revenues
not disallowed by the Medicare program (or any successor program)
for Medicare home health services provided by Tenant or any
Affiliate of Tenant to the residents of the Original River Place
Premises.
2.2.4 "GROSS NON-MEDICARE HOME HEALTH REVENUES" shall be
calculated according to GAAP and shall be defined as all revenues
generated by Tenant or any Affiliate of Tenant for non-Medicare
home health services to the residents of the Original River Place
Premises, excluding Gross Medicare Home Health Revenues.
2.2.5 "LEASE YEAR" shall be defined as the twelve (12)
calendar month period commencing on January 1, 1996 and ending on
December 31, 1996 and each successive twelve (12) calendar month
period thereafter during the Term.
2.2.6 The "BASE YEAR" during the Initial Term shall mean
the year ending on December 31, 1997.
2. ...
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