Common use of Capital Expense Reserve Clause in Contracts

Capital Expense Reserve. With respect to each Collateral Property, the Borrower shall pay to the Lender on each Interest Payment Date the amount set forth for such Collateral Property on Exhibit B attached hereto. The Lender will transfer such amount into a Subaccount (the "Capital Reserve Subaccount"). Additionally, upon thirty (30) days' prior notice to the Borrower, the Lender may reassess the amount of the monthly payment required under this Section 11.03 from time to time in its reasonable discretion (based upon its then current underwriting standards). If the funds in the Capital Reserve Subaccount shall exceed the amounts due for Approved Capital Expenditures pursuant to the terms hereof, the Lender may return any excess to the Borrower or, if future payments hereunder are then required, credit such excess against such future payments. If the Lender determines in its reasonable judgment that the funds in the Capital Reserve Subaccount will be insufficient to pay (or in excess of) the amounts due or to become due for Approved Capital Expenditures, the Lender may increase (or decrease) the monthly contribution required to be made by the Borrower to the Capital Reserve Subaccount. Provided that no Default or Event of Default has occurred and is continuing, the Lender shall disburse funds held in the Capital Reserve Subaccount to the Borrower, within 15 days after the delivery by the Borrower to the Lender of a request therefor (but not more often than once per month), in increments of at least $5,000 provided that (i) such disbursement is for an Approved Capital Expenditures; (ii) Lender shall have (if it desires) verified (by an inspection conducted at the Borrower's expense) performance of the work associated with such Approved Capital Expenditures if the cost of such work exceeds $50,000; and (iii) the request for disbursement is accompanied by (A) a certificate from a senior financial officer of the Borrower certifying (w) that such funds will be used to pay or reimburse the Borrower for Approved Capital Expenditures and a description thereof, (x) that all outstanding trade payables (other than those to be paid from the requested disbursement or those constituting Permitted Indebtedness) have been paid in full, (y) that the same has not been the subject of a previous disbursement, and (z) that all previous disbursements have been used to pay the previously identified Approved Capital Expenditures, and (B) reasonably detailed documentation satisfactory to the Lender as to the amount, necessity and purpose therefor. Any such disbursement of more than $10,000 to pay (rather than reimburse) Approved Capital Expenditures may, at the Lender's option, be made by joint check payable to the Borrower and the payee on such Approved Capital Expenditures.

Capital Expense Reserve. With respect to each Collateral Property, the Borrower shall pay to the Lender on each Interest Payment Date the amount set forth for such Collateral Property on Exhibit B attached hereto. The Lender will transfer such amount into a Subaccount (the "Capital Reserve Subaccount"). Additionally, upon thirty (30) days' prior notice to the Borrower, the Lender may reassess the amount of the monthly payment required under this Section 11.03 from time to time in its reasonable discretion (based upon its then current underwriting standards). If the funds in the Capital Reserve Subaccount shall exceed the amounts due for Approved Capital Expenditures pursuant to the terms hereof, the Lender may return any excess to the Borrower or, if future payments hereunder are then required, credit such excess against such future payments. If the Lender determines in its reasonable judgment that the funds in the Capital Reserve Subaccount will be insufficient to pay (or in excess of) the amounts due or to become due for Approved Capital Expenditures, the Lender may increase (or decrease) the monthly contribution required to be made by the Borrower to the Capital Reserve Subaccount. Provided that no Default or Event of Default has occurred and is continuing, the Lender shall disburse funds held in the Capital Reserve Subaccount to the Borrower, within 15 days after the delivery by the Borrower to the Lender of a request therefor (but not more often than once per month), in increments of at least $5,000 provided that (i) such disbursement is for an Approved Capital Expenditures; (ii) Lender shall have (if it desires) verified (by an inspection conducted at the Borrower's expense) performance of the work associated with such Approved Capital Expenditures if the cost of such work exceeds $50,000; and (iii) the request for disbursement is accompanied by (A) a certificate from a senior financial officer of the Borrower certifying (w) that such funds will be used to pay or reimburse the Borrower for Approved Capital Expenditures and a description thereof, (x) that all outstanding trade payables (other than those to be paid from the requested disbursement or those constituting Permitted Indebtedness) have been paid in full, (y) that the same has not been the <PAGE> subject of a previous disbursement, and (z) that all previous disbursements have been used to pay the previously identified Approved Capital Expenditures, and (B) reasonably detailed documentation satisfactory to the Lender as to the amount, necessity and purpose therefor. Any such disbursement of more than $10,000 to pay (rather than reimburse) Approved Capital Expenditures may, at the Lender's option, be made by joint check payable to the Borrower and the payee on such Approved Capital Expenditures.. 11.04

Capital Expense Reserve. With respect (a) On the date hereof, Borrower shall deposit with Lender a portion of the Initial Floating Rate Loan Advance in an amount equal to each Collateral Property$600,000 (the “Initial CapEx Deposit”). In addition, from and after the earlier of (i) March 6, 2008 and (ii) the first (1st) Payment Date following the prepayment of the Floating Rate Loan, Borrower shall pay to the Lender on each Interest Payment Date an amount equal to $6,561 (such monthly payments are collectively referred to herein as, the amount set forth for such Collateral Property on Exhibit B attached hereto“Monthly CapEx Funds”). The Lender will transfer such amount amounts into a Subaccount (the "“Capital Reserve Subaccount"”). Additionally, upon thirty (30) days' ’ prior notice to the Borrower, the Lender may reassess the amount of the monthly payment required under this Section 11.03 from time to time in its reasonable discretion 3.4 not more than once every six (6) months (based upon its then current underwriting standards). If the funds in the Capital Reserve Subaccount shall exceed the amounts due for Approved Capital Expenditures pursuant to the terms hereof, the Lender may return any excess to the Borrower or, if future payments hereunder are then required, credit such excess against such future payments. If the Lender determines in its reasonable judgment that the funds in the Capital Reserve Subaccount will be insufficient to pay (or in excess of) the amounts due or to become due for Approved Capital Expenditures, the Lender may increase (or decrease) the monthly contribution required to be made by the Borrower to the Capital Reserve Subaccount. Provided that no Default or Event of Default has occurred and is continuing, the Lender shall disburse funds constituting the Initial CapEx Deposit, the Monthly CapEx Funds and/or any amounts transferred from the Required Repairs Subaccount and held in the Capital Reserve Subaccount to the Borrower, within 15 fifteen (15) days after the delivery by the Borrower to the Lender of a request therefor (but not more often than once per month), in increments of at least $5,000 provided that (i) such disbursement is for an Approved Capital ExpendituresExpense; (ii) Lender shall have (if it desires) verified (by an inspection conducted at the Borrower's ’s expense) performance of the work associated with such Approved Capital Expenditures if the cost Expense in excess of such work exceeds $50,000; and (iii) the request for disbursement is accompanied by (A) a certificate from a senior financial officer of the Borrower an Officer’s Certificate certifying (w1) that such funds will be used to pay or reimburse the Borrower for Approved Capital Expenditures Expenses and a description thereof, (x2) that all outstanding trade payables (other than those to be paid from the requested disbursement or those constituting Permitted Indebtedness) have been paid in full, (y3) that the same has not been the subject of a previous disbursement, and (z4) that all previous disbursements have been used to pay the previously identified Approved Capital ExpendituresExpenses, and (B) reasonably detailed documentation lien waivers or other evidence of payment satisfactory to Lender, (C) at Lender’s option, a title search for the Property indicating that the Property is free from all Liens, claims and other encumbrances not previously approved by Lender and (D) such other evidence as Lender shall reasonably request that the Approved Capital Expenses at the Property to be funded by the amount, necessity requested disbursement have been completed and purpose thereforare paid for or will be paid upon such disbursement to Borrower. Any such disbursement of more than $10,000 to pay (rather than reimburse) Approved Capital Expenditures Expenses may, at the Lender's ’s option, be made by joint check payable to the Borrower and the payee on such Approved Capital ExpendituresExpenses.

Capital Expense Reserve. With respect (a) On the date hereof, Borrower shall deposit with Lender a portion of the Initial Floating Rate Loan Advance in an amount equal to each Collateral Property$400,000 (the “Initial CapEx Deposit”). In addition, from and after the earlier of (i) March 6, 2008 and (ii) the first (1st) Payment Date following the prepayment of the Floating Rate Loan, Borrower shall pay to the Lender on each Interest Payment Date an amount equal to $5,293 (such monthly payments are collectively referred to herein as, the amount set forth for such Collateral Property on Exhibit B attached hereto“Monthly CapEx Funds”). The Lender will transfer such amount amounts into a Subaccount (the "“Capital Reserve Subaccount"”). Additionally, upon thirty (30) days' ’ prior notice to the Borrower, the Lender may reassess the amount of the monthly payment required under this Section 11.03 from time to time in its reasonable discretion 3.4 not more than once every six (6) months (based upon its then current underwriting standards). If the funds in the Capital Reserve Subaccount shall exceed the amounts due for Approved Capital Expenditures pursuant to the terms hereof, the Lender may return any excess to the Borrower or, if future payments hereunder are then required, credit such excess against such future payments. If the Lender determines in its reasonable judgment that the funds in the Capital Reserve Subaccount will be insufficient to pay (or in excess of) the amounts due or to become due for Approved Capital Expenditures, the Lender may increase (or decrease) the monthly contribution required to be made by the Borrower to the Capital Reserve Subaccount. Provided that no Default or Event of Default has occurred and is continuing, the Lender shall disburse funds constituting the Initial CapEx Deposit, the Monthly CapEx Funds and/or any amounts transferred from the Required Repairs Subaccount and held in the Capital Reserve Subaccount to the Borrower, within 15 fifteen (15) days after the delivery by the Borrower to the Lender of a request therefor (but not more often than once per month), in increments of at least $5,000 provided that (i) such disbursement is for an Approved Capital ExpendituresExpense; (ii) Lender shall have (if it desires) verified (by an inspection conducted at the Borrower's ’s expense) performance of the work associated with such Approved Capital Expenditures if the cost Expense in excess of such work exceeds $50,000; and (iii) the request for disbursement is accompanied by (A) a certificate from a senior financial officer of the Borrower an Officer’s Certificate certifying (w1) that such funds will be used to pay or reimburse the Borrower for Approved Capital Expenditures Expenses and a description thereof, (x2) that all outstanding trade payables (other than those to be paid from the requested disbursement or those constituting Permitted Indebtedness) have been paid in full, (y3) that the same has not been the subject of a previous disbursement, and (z4) that all previous disbursements have been used to pay the previously identified Approved Capital ExpendituresExpenses, and (B) reasonably detailed documentation lien waivers or other evidence of payment satisfactory to Lender, (C) at Lender’s option, a title search for the Property indicating that the Property is free from all Liens, claims and other encumbrances not previously approved by Lender and (D) such other evidence as Lender shall reasonably request that the Approved Capital Expenses at the Property to be funded by the amount, necessity requested disbursement have been completed and purpose thereforare paid for or will be paid upon such disbursement to Borrower. Any such disbursement of more than $10,000 to pay (rather than reimburse) Approved Capital Expenditures Expenses may, at the Lender's ’s option, be made by joint check payable to the Borrower and the payee on such Approved Capital ExpendituresExpenses.

Capital Expense Reserve. With respect (a) On the date hereof, Borrower shall deposit with Lender a portion of the Initial Tranche B Loan Advance in an amount equal to each Collateral Property$200,000 (the “Initial CapEx Deposit”). In addition, from and after the earlier of (i) April 1, 2008 and (ii) the first (1st) Payment Date following the prepayment of the Tranche B Loan, Borrower shall pay to the Lender on each Interest Payment Date an amount equal to $6,123. (such monthly payments are collectively referred to herein as, the amount set forth for such Collateral Property on Exhibit B attached hereto“Monthly CapEx Funds”). The Lender will transfer such amount amounts into a Subaccount (the "“Capital Reserve Subaccount"”). Additionally, upon thirty (30) days' ’ prior notice to the Borrower, the Lender may reassess the amount of the monthly payment required under this Section 11.03 from time to time in its reasonable discretion 3.4 not more than once every six (6) months (based upon its then current underwriting standards). If the funds in the Capital Reserve Subaccount shall exceed the amounts due for Approved Capital Expenditures pursuant to the terms hereof, the Lender may return any excess to the Borrower or, if future payments hereunder are then required, credit such excess against such future payments. If the Lender determines in its reasonable judgment that the funds in the Capital Reserve Subaccount will be insufficient to pay (or in excess of) the amounts due or to become due for Approved Capital Expenditures, the Lender may increase (or decrease) the monthly contribution required to be made by the Borrower to the Capital Reserve Subaccount. Provided that no Default or Event of Default has occurred and Table of Contents is continuing, the Lender shall disburse funds constituting the Initial CapEx Deposit, the Monthly CapEx Funds and/or any amounts transferred from the Required Repairs Subaccount and held in the Capital Reserve Subaccount to the Borrower, within 15 fifteen (15) days after the delivery by the Borrower to the Lender of a request therefor (but not more often than once per month), in increments of at least $5,000 provided that (i) such disbursement is for an Approved Capital ExpendituresExpense; (ii) Lender shall have (if it desires) verified (by an inspection conducted at the Borrower's ’s expense) performance of the work associated with such Approved Capital Expenditures if the cost Expense in excess of such work exceeds $50,000; and (iii) the request for disbursement is accompanied by (A) a certificate from a senior financial officer of the Borrower an Officer’s Certificate certifying (w1) that such funds will be used to pay or reimburse the Borrower for Approved Capital Expenditures Expenses and a description thereof, (x2) that all outstanding trade payables (other than those to be paid from the requested disbursement or those constituting Permitted Indebtedness) have been paid in full, (y3) that the same has not been the subject of a previous disbursement, and (z4) that all previous disbursements have been used to pay the previously identified Approved Capital ExpendituresExpenses, and (B) reasonably detailed documentation lien waivers or other evidence of payment satisfactory to Lender, (C) at Lender’s option, a title search for the Property indicating that the Property is free from all Liens, claims and other encumbrances not previously approved by Lender and (D) such other evidence as Lender shall reasonably request that the Approved Capital Expenses at the Property to be funded by the amount, necessity requested disbursement have been completed and purpose thereforare paid for or will be paid upon such disbursement to Borrower. Any such disbursement of more than $10,000 to pay (rather than reimburse) Approved Capital Expenditures Expenses may, at the Lender's ’s option, be made by joint check payable to the Borrower and the payee on such Approved Capital ExpendituresExpenses.