Common use of Expansion Project Clause in Contracts

Expansion Project. Seller has construction work in progress at Jordan Valley Hospital with a budgeted completion cost of $15,512,401 (the "Expansion Project"). Both Seller and Buyer wish for the work on the Expansion Project to continue during the Pre-Closing Period. To this end, Seller agrees, in all material respects and consistent with Seller's practice prior to the date hereof with respect thereto, to (i) continue to plan, design, construct, equip, obtain government approvals and implement the Expansion Project consistent with its approved plans, specifications, schedule and budget; (ii) discharge its obligations and enforce its rights against the Contractors; (iii) pay all invoices and other amounts owed to any Contractor or other party in order to fund the costs and expenses of the Expansion Project, including, without limitation, the cost of labor, materials, equipment, tools and services (the "Work") provided by any Contractor (but excluding retainage under each individual contract), in accordance with the terms and conditions of such invoice or any contract relating to the Expansion Project, including the Construction Agreement (the "Expansion Costs"); (iv) obtain from (a) the Other Contractors, an invoice (a "Cut-Off Invoice") for all Expansion Costs incurred for Work performed in connection with the Expansion Project for the period between the date of the most recent invoice prior to the date hereof and the date hereof and monthly invoices for work performed in connection with the Expansion Project thereafter in the ordinary course of business and (b) the General Contractor, all Draw Requests in the ordinary course of business; (v) provide to Buyer as soon as practicable after Sellers receipt thereof, copies of the Cut-Off Invoices and a copy of the Draw Request for the calendar month during which the date hereof occurs (the "Pro-Rated Draw Request") together with a calculation of the pro-rated amount of the Pro-Rated Draw Request, if applicable, representing the Expansion Costs for Work performed in connection with the Expansion Project from and after the date hereof; (vi) provide to Buyer monthly reports of the Expansion Costs throughout the Pre-Closing Period (which reports shall be provided within three (3) business days of the end of each calendar month and shall include, for such month, (a) the Draw Request and (b) the Other Contractor's invoices (collectively, the "Contractors' Interim Invoices"); and (vii) obtain from Buyer the approval of any material changes in the scope or schedule of the Expansion Project, or any material increase in the budgeted costs.