LIMITATION ON TENANT'S REPAIRS Sample Clauses

LIMITATION ON TENANT'S REPAIRS. If: (i) Tenant's Repairs requires Tenant to replace a capital item, being an item which is reasonably expected to have a useful life in excess of one year ("Capital Replacement"), and (ii) such Capital Replacement is required at any time during the last sixty (60) months of the Term, and (iii) the Capital Replacement is expected to cost in excess of $10,000.00, and (iv) the Capital Replacement has a "Recovery Period" (as determined under the Internal Revenue Code and Regulations applicable thereto) which exceeds the balance of the Term, then Tenant shall so notify Landlord in writing, and of the cost and other specific arrangements in regard to Tenant's proposed Capital Replacement, and the remaining provisions of this Section shall apply. Landlord and Tenant shall reasonably and mutually agree whether the Capital Replacement proposed by Tenant is appropriate under the circumstances, or whether a less costly Capital Replacement is appropriate, or whether a satisfactory repair not including a Capital Replacement is practicable. Such agreement shall be based on, among other things, local industry standards for properties comparable to the Demised Premises. Neither party's agreement shall be unreasonably withheld or delayed. The cost of each and every Capital Replacement upon which Landlord and Tenant agree, as aforesaid, shall be shared by Landlord and Tenant as follows: (i) Landlord shall pay the amount determined by multiplying the total costs paid for such Capital Replacement by a fraction, the numerator of which is the total number of days contained in the Recovery Period of the Capital Replacement less the number of days from the date the Capital Replacement was placed in service to the date of the expiration of the Term, and the denominator of which is the total number of days contained in the Recovery Period of the Capital Replacement; and (ii) Tenant shall pay the entire balance of the total costs for such Capital Replacement. Each of the parties shall pay its portion of the costs of a Capital Replacement as and when payment for the same is due with respect to all such Capital Replacement work. If after the computation of the cost of the Capital Replacement as aforesaid, the Term is extended for either the Expansion Space Term or a Renewal Term, Landlord's portion of the cost of Capital Replacement shall be re-computed within thirty (30) days after each such extension, and Tenant shall then pay to Landlord the difference between that which the Landlo...