Routine Capital Expenditures Sample Clauses
The Routine Capital Expenditures clause defines which capital investments or improvements are considered part of the normal, ongoing operations of a business or property. Typically, this clause outlines the types of expenditures—such as regular maintenance, equipment replacement, or minor upgrades—that are expected to occur regularly and are not extraordinary or one-time costs. By clearly distinguishing routine capital expenditures from major or non-recurring investments, the clause helps allocate financial responsibility and ensures that parties understand which costs are included in standard operating budgets, thereby preventing disputes over unexpected or unusual expenses.
Routine Capital Expenditures. 9.2.1 Landlord shall provide to Tenant funds or make available funds from any capital replacement reserve required to be maintained by Landlord or in connection with any Community Mortgage to cover the cost of (collectively, “Routine Capital Expenditures”):
(a) Replacements, renewals and additions to any Community’s FF&E as required by Resident needs and Legal Requirements (including dietary equipment and life safety equipment); Portions of this exhibit that have been marked by [***] have been omitted pursuant to a request for confidential treatment filed separately with the Securities and Exchange Commission.
(b) Certain routine repairs and maintenance to any Community which are normally capitalized under GAAP such as exterior and interior repainting, resurfacing building walls, floors, roofs and parking areas, minor HVAC improvements and minor plumbing improvements, but which are not major repairs, alterations, improvements, renewals or replacements to any Community’s structure or exterior facade or to any Community’s mechanical, electrical, heating, ventilating, air conditioning, plumbing or vertical transportation systems, the cost of which are addressed under Section 9.3;
(c) Computers and other IT-related capital expenditures at any Community; and
(d) Periodic apartment refurbishment.
9.2.2 Tenant shall not in any case be required to advance its own funds to the cover the costs of any Routine Capital Expenditures. Tenant is authorized, subject to Landlord’s prior approval, to lease (rather than purchase) postal machines, vehicles, dishwashers, photocopiers and other equipment. Lease payments with respect to such leases shall be paid from Gross Revenues and will be a Community Expense.
9.2.3 With respect to all Routine Capital Expenditures, the following shall apply:
(a) All Routine Capital Expenditures shall be (as to both the amount of each such expenditure and the timing thereof) reasonable and necessary for the applicable Community to be maintained and operated consistent with Tenant’s Standards and in conformity with all applicable Legal Requirements and shall be in accordance with the Approved Budget with respect to Routine Capital Expenditures. All work performed in connection with any Routine Capital Expenditures shall be made in a good and workmanlike manner, consistent with Tenant’s Standards, and in accordance with all applicable Legal Requirements relating to any such work.
(b) Tenant shall be entitled to depart from any budgeted expense c...
Routine Capital Expenditures. During the period from the Effective Date to the expiration of the thirteenth (13th) full Accounting Period after the Effective Date, Manager shall transfer into the Reserve an amount equal to two percent (2%) of Gross Revenues for such period; during the period from the beginning of the fourteenth (14th) full Accounting Period to the expiration of the twenty-sixth (26th) full Accounting Period, Manager shall transfer into the Reserve an amount equal to four percent (4%) of Gross Revenues for each such Accounting Period; commencing with the beginning of the twenty-seventh (27th) full Accounting Period and for all Accounting Periods thereafter, subject to the provisions of Section 5.02.E., below, Manager shall transfer into the Reserve an amount equal to five percent (5%) of Gross Revenues for each such Accounting Period. Transfers into the Reserve shall be made at the time of each interim accounting described in Section 4.01 hereof. All amounts transferred to the Reserve shall be deducted from Gross Revenues in determining Operating Profit and shall be deposited in the special Reserve account described in Section 5.02.A.
Routine Capital Expenditures. For each Accounting Period from the Effective Date to the expiration of Fiscal Year 2013, Manager shall transfer into the FF&E Reserve an amount equal to three percent (3%) of Gross Revenues for such period; for each Accounting Period during Fiscal Year 2014, Manager shall transfer into the FF&E Reserve an amount equal to four percent (4%) of Gross Revenues for such period; for each Accounting Period from the beginning of Fiscal Year 2015 and for all Accounting Periods thereafter, subject to the provisions of Section 5.02.E, Manager shall transfer into the FF&E Reserve an amount equal to five percent (5%) of Gross Revenues for each such Accounting Period. Transfers into the FF&E Reserve shall be made at the time of each interim accounting described in Section 4.01. All amounts transferred into the FF&E Reserve pursuant to this Section 5.02.B shall be paid from Gross Revenues as Deductions; provided, however, that the payment of all other Deductions will take priority over the transfer of amounts into the FF&E Reserve.
Routine Capital Expenditures. During the period from the Opening Date to the expiration of the thirteenth (13th) full Accounting Period after the Opening Date, Manager shall transfer into the Reserve an amount equal to four percent (4%) of Gross Revenues for such period; during the period from the beginning of the fourteenth (14th) full Accounting Period and for all Accounting Periods thereafter, subject to the provisions of Section 5.02.E., below, Manager shall transfer into the Reserve an amount equal to five percent (5%) of Gross Revenues for each such Accounting Period. Transfers into the Reserve shall be made at the time of each interim accounting described in Section 4.01 hereof. All amounts transferred to the Reserve shall be deducted from Gross Revenues in determining Operating Profit and shall be deposited in the special Reserve account described in Section 5.02.A.