Common use of Maintenance Obligation Clause in Contracts

Maintenance Obligation. ‌ The Concessioner shall be solely responsible for maintenance, repairs, housekeeping, and groundskeeping for all Concession Facilities to the satisfaction of the Director. To assist in the fulfillment of this obligation, the Concessioner agrees to expend not less than five and four-tenths percent (5.4%) of the Concessioner's annual gross receipts annually (as defined in Sec. 2(i) hereof) on all facilities maintenance activities and maintenance payroll not covered by the Component Renewal Reserve described in Sec. 10(c), not expended on the construction of a “structure,” a “major rehabilitation,” or the installation or replacement of “fixtures and non-removable equipment” (as these terms are defined in 36 CFR Part 51), and not expended on the Concession Facilities Improvement Program described in Sec. 9(d). Furthermore, as this repair and maintenance expense amount is a minimum, the Concessioner may be required to expend additional amounts above this minimum to ensure the Concession Facilities are maintained to the satisfaction of the Director.