Average Repair Costs definition
Average Repair Costs means the average of the previous five (5) years’ “repair and maintenance” line-item costs, inclusive of any capital items. Average Repair Costs shall be calculated in order to determine the annual amount due to the CapEx Fund, as specified in section 7.4 below.
Examples of Average Repair Costs in a sentence
Commencing in Lease Year twenty (20) and extending through Lease Year twenty-five (25), Lessee shall set aside an amount equal to twenty percent (20%) per year of Average Repair Costs into a separate reserve account (until 100% of Average Repair Costs is deposited), in order to fund capital expenditures for the Premises (“CapEx Fund”), which is required to be capitalized as an improvement to the Premises.