Common use of Cost Budget Clause in Contracts

Cost Budget. Prior to the commencement of the construction of the Tenant Improvements, and after Tenant has accepted all bids for the Tenant Improvements, Tenant shall provide Landlord with a written detailed cost breakdown (the “Final Costs Statement”), by trade, of the final costs to be incurred, or which have been incurred, as set forth more particularly in Section 2.2.1.1 through 2.2.1.8 above, in connection with the design and construction of the Tenant Improvements to be performed by or at the direction of Tenant or the Contractor (which costs form a basis for the amount of the construction contract with the Contractor, if any (the “Final Costs”). Tenant shall be responsible for all the Final Costs, and Tenant shall pay all such costs directly to the Contractor or other party requesting payment as and when due, provided that nothing contained in this sentence shall be construed to waive Tenant’s right to receive the Tenant Improvement Allowance, the Additional Tenant Improvement Allowance, the HVAC Allowance or the Roof Allowance. In addition, to the extent the Final Costs exceed the Tenant Improvement Allowance and the Additional Tenant Improvement Allowance (“Over Allowance Amount”), Tenant shall pay, concurrently with each disbursement by Landlord pursuant to Section 2.2.2, a pari passu portion of the Tenant Improvement costs subject to such request, equal to the ratio obtained by dividing the Over Allowance Amount by the Final Costs (“Pro Rata Share”), multiplied by portion of the Tenant Improvement costs subject to such request. For purposes of illustration only, if the Final Costs are $500,000, the total allowance payable by Landlord (i.e., the Tenant Improvement Allowance and the Additional Tenant Improvement Allowance) is $250,000, and the applicable bills and invoices submitted to Landlord for a disbursement pursuant to Section 2.2.2 is $100,000, Landlord would disburse $50,000 ($250,000/$500,000 x $100,000), and Tenant would pay the remaining $50,000. In the event that, after the Final Costs have been delivered by Landlord to Tenant, the costs relating to the design and construction of the Tenant Improvements shall change, any additional costs necessary to such design and construction in excess of the Final Costs shall, to the extent they exceed the remaining balance of the Tenant Improvement Allowance, be paid by Tenant to Landlord in the same method as the payment by Tenant of the Over-Allowance Amount set forth herein.

Cost Budget. Prior to the commencement of the construction of the Tenant Improvements, and after Tenant has accepted all bids for the Tenant Improvements, Tenant shall provide Landlord with a written detailed cost breakdown (the “Final Costs Statement”)breakdown, by trade, of the final costs to be incurred, incurred or which have been incurred, as set forth more particularly in Section Sections 2.2.1.1 through 2.2.1.8 2.2.1.8, above, in connection 712812.03/WLA 214064-00120/9-26-13/gjn/gjn -8- 0000 XXXXXXXX XXXXX, XXX XXXXX [Second Amendment/Substitute Premises Amendment] [Entropic Communications, Inc.] with the design and construction of the Tenant Improvements to be performed by or at the direction of Tenant or the Contractor (Contractor, which costs form a basis for the amount of the construction contract with the Contractor, if any Contract (the “"Final Costs”"). Prior to the commencement of construction of the Improvements, Tenant shall be responsible for all determine the Final Costs, and Tenant shall pay all such costs directly to amount (the Contractor or other party requesting payment as and when due, provided that nothing contained in this sentence shall be construed to waive Tenant’s right to receive the Tenant Improvement Allowance, the Additional Tenant Improvement Allowance, the HVAC "Over-Allowance or the Roof Allowance. In addition, to the extent Amount") by which the Final Costs exceed the Improvement Allowance. Tenant Improvement Allowance and will also determine the Additional Tenant Improvement Allowance (“Over Allowance Amount”), Tenant shall pay, concurrently with each disbursement by Landlord pursuant to Section 2.2.2, a pari passu portion ratio of the Tenant Improvement costs subject to such request, equal to the ratio obtained by dividing the Over Over-Allowance Amount by to the Final Costs (“Pro Rata Share”), multiplied by portion of the Tenant Improvement costs subject to such request. For purposes of illustration onlye.g., if the Final Costs are Over-Allowance Amount were to be One Million One Hundred Seventy-Four Thousand Eight Hundred Twenty-Four and 00/100 Dollars ($500,0001,174,824.00), the total allowance payable by Landlord ratio would be sixteen point six percent (i.e., 16.6%) Over-Allowance Amount and eighty-three point four percent (83.4%) Improvement Allowance). The ratio applicable to the Tenant Over-Allowance Amount may be referred to herein as "Tenant's Ratio") and the ratio applicable to the Improvement Allowance may be referred to herein as "Landlord's Ratio." Tenant's determination of the Over-Allowance Amount, Tenant's Ratio and Landlord's Ratio are subject to Landlord's reasonable approval. Tenant shall pay Tenant's Ratio of the Additional Tenant Improvement Allowance) is $250,000, and amounts due to the applicable bills and invoices submitted Contractor at the same time Landlord makes its monthly disbursement of the Landlord's Ratio of the amounts due to Landlord for a disbursement pursuant to the Contractor in accordance with Section 2.2.2 is $100,000, Landlord would disburse $50,000 ($250,000/$500,000 x $100,000), and Tenant would pay the remaining $50,0002.2 above. In the event that, after the Final Costs have been delivered by Landlord Tenant to TenantLandlord, the costs relating to the design and construction of the Tenant Improvements shall change, any additional costs necessary to such design and construction increase in a way that results in the Final Costs being in excess of the Improvement Allowance (or otherwise further increases the amount by which the Final Costs shall, to the extent they exceed the remaining balance are in excess of the Tenant Improvement Allowance), such excess shall be paid by Tenant out of its own funds, but Tenant shall continue to provide Landlord with the documents described in the same method as the payment by Sections 2.2.2.1(i), (ii), (iii) and (iv) of this Work Letter, above, for Landlord's approval, prior to Tenant of the Over-Allowance Amount set forth hereinpaying such costs.

Cost Budget. Prior to the commencement of the construction of the Tenant Improvements, and after Tenant has accepted all bids for the Tenant Improvements, Tenant shall provide Landlord with a written detailed cost breakdown (the “Final Costs Statement”)breakdown, by trade, of the final costs to be incurred, incurred or which have been incurred, as set forth more particularly in Section Sections 2.2.1.1 through 2.2.1.8 2.2.1.9, above, in connection with the design and construction of the Tenant Improvements to be performed by or at the direction of Tenant or the Contractor (Contractor, which costs form a basis for the amount of the construction contract with the Contractor, if any Contract (the “"Final Costs”"). , and the date Tenant provides such Final Costs to Landlord shall be responsible for all known as the "Final CostsCosts Delivery Date." For purposes hereof, and Tenant the "Over-Allowance Amount" shall pay all such costs directly be equal to the Contractor or other party requesting payment as and when due, provided that nothing contained in this sentence shall be construed to waive Tenant’s right to receive difference between (i) the Tenant Improvement Allowance, the Additional Tenant Improvement Allowance, the HVAC Allowance or the Roof Allowance. In addition, to the extent amount of the Final Costs exceed and (ii) the sum of the amount of the Tenant Improvement Allowance and plus the Additional amount of the TIA Increase, if any, which Tenant Improvement Allowance (“Over Allowance Amount”), Tenant shall pay, concurrently with each disbursement by Landlord elects to utilize pursuant to the terms of Section 2.2.22.2.2 of this Tenant Work Letter. The Over-Allowance Amount shall be delivered from Tenant to Landlord (on a pro-rata basis, a pari passu portion based upon the percentage of the Tenant Improvement costs subject to completed) within ten (10) days of Tenant's receipt of an invoice for such request, equal to the ratio obtained by dividing the Over Allowance Amount by the Final Costs (“Pro Rata Share”), multiplied by portion of the Tenant Improvement costs subject to such request. For purposes of illustration only, if the Final Costs are $500,000, the total allowance payable by Landlord (i.e., the Tenant Improvement Over-Allowance and the Additional Tenant Improvement Allowance) is $250,000, and the applicable bills and invoices submitted to Landlord for a disbursement pursuant to Section 2.2.2 is $100,000, Landlord would disburse $50,000 ($250,000/$500,000 x $100,000), and Tenant would pay the remaining $50,000Amount. In the event that, after the Final Costs have been delivered by Landlord to TenantDelivery Date, the costs relating any revisions, changes, or substitutions shall be made to the design and construction of Construction Drawings or the Tenant Improvements shall changeImprovements, any additional costs necessary to which arise in connection with such design and construction in excess of the Final Costs shallrevisions, to the extent they exceed the remaining balance of the Tenant Improvement Allowance, changes or substitutions or any other additional costs shall be paid by Tenant to Landlord in the same method immediately upon Landlord's request as the payment by Tenant of an addition to the Over-Allowance Amount set forth hereinAmount. In addition, if the Final Working Drawings or any amendment thereof or supplement thereto shall require alterations in the Base, Shell and Core (as contrasted with the Tenant Improvements), and if Landlord in its sole and exclusive discretion agrees to any such alterations, and notifies Tenant of the need and cost for such alterations, then Tenant shall pay the cost of such required changes upon receipt of bills therefor. Tenant shall pay all direct architectural and/or engineering fees in connection therewith, plus a reasonable administration fee to Landlord.

Cost Budget. Prior to the commencement of the construction of the Tenant Improvements, and after Tenant has accepted all bids for the Tenant Improvements, Tenant shall provide Landlord with a written detailed cost breakdown (the “Final Costs Statement”)breakdown, by trade, of the final costs to be incurred, incurred or which have been incurred, as set forth more particularly in Section Sections 2.2.1.1 through 2.2.1.8 2.2.1.8, above, in connection with the design and construction of the Tenant Improvements to be performed by or at the direction of Tenant or the Contractor (Contractor, which costs form a basis for the amount of the construction contract with the Contractor, if any Contract (the “"Final Costs”"). Prior to the commencement of construction of the Improvements, Tenant shall be responsible for all determine the Final Costs, and Tenant shall pay all such costs directly to amount (the Contractor or other party requesting payment as and when due, provided that nothing contained in this sentence shall be construed to waive Tenant’s right to receive the Tenant Improvement Allowance, the Additional Tenant Improvement Allowance, the HVAC "Over­- Allowance or the Roof Allowance. In addition, to the extent Amount") by which the Final Costs exceed the Improvement Allowance. Tenant Improvement Allowance and will also determine the Additional Tenant Improvement Allowance (“Over Allowance Amount”), Tenant shall pay, concurrently with each disbursement by Landlord pursuant to Section 2.2.2, a pari passu portion ratio of the Tenant Improvement costs subject Over­-Allowance Amount to such request, equal to the ratio obtained by dividing the Over Allowance Amount by the Final Costs (“Pro Rata Share”), multiplied by portion of the Tenant Improvement costs subject to such request. For purposes of illustration onlye.g., if the Final Costs are Over­-Allowance Amount were to be One Million One Hundred Seventy­-Four Thousand Eight Hundred Twenty­-Four and 00/100 Dollars ($500,0001,174,824.00), the total allowance payable by Landlord ratio would be sixteen point six percent (i.e., 16.6%) Over­-Allowance Amount and eighty­three point four percent (83.4%) Improvement Allowance). The ratio applicable to the Tenant Over­-Allowance Amount may be referred to herein as "Tenant's Ratio") and the ratio applicable to the Improvement Allowance may be referred to herein as "Landlord's Ratio." Tenant's determination of the Over-­Allowance Amount, Tenant's Ratio and Landlord's Ratio are subject to Landlord's reasonable approval. Tenant shall pay Tenant's Ratio of the Additional Tenant Improvement Allowance) is $250,000, and amounts due to the applicable bills and invoices submitted Contractor at the same time Landlord makes its monthly disbursement of the Landlord's Ratio of the amounts due to Landlord for a disbursement pursuant to the Contractor in accordance with Section 2.2.2 is $100,000, Landlord would disburse $50,000 ($250,000/$500,000 x $100,000), and Tenant would pay the remaining $50,0002.2 above. In the event that, after the Final Costs have been delivered by Landlord Tenant to TenantLandlord, the costs relating to the design and construction of the Tenant Improvements shall change, any additional costs necessary to such design and construction increase in a way that results in the Final Costs being in excess of the Improvement Allowance (or otherwise further increases the amount by which the Final Costs shall, to the extent they exceed the remaining balance are in excess of the Tenant Improvement Allowance), such excess shall be paid by Tenant out of its own funds, but Tenant shall continue to provide Landlord with the documents described in the same method as the payment by Sections 2.2.2.1(i), (ii), (iii) and (iv) of this Work Letter, above, for Landlord's approval, prior to Tenant of the Over-Allowance Amount set forth hereinpaying such costs.

Cost Budget. Prior to the commencement of the construction of the Tenant Improvements, and after Tenant has accepted all bids for the Tenant Improvements, Tenant shall provide Landlord with a written detailed cost breakdown (the “Final Costs Statement”)breakdown, by trade, of the final costs to be incurred, incurred or which have been incurred, as set forth more particularly in Section Sections 2.2.1.1 through 2.2.1.8 2.2.1.8, above, in connection with the design and construction of the Tenant Improvements to be performed by or at the direction of Tenant or the Contractor (Contractor, which costs form a basis for the amount of the construction contract with the Contractor, if any Contract (the “"Final Costs”"). Prior to the commencement of construction of the Improvements, Tenant shall be responsible for all determine the Final Costs, and Tenant shall pay all such costs directly to amount (the Contractor or other party requesting payment as and when due, provided that nothing contained in this sentence shall be construed to waive Tenant’s right to receive the Tenant Improvement Allowance, the Additional Tenant Improvement Allowance, the HVAC "Over-Allowance or the Roof Allowance. In addition, to the extent Amount") by which the Final Costs exceed the Improvement Allowance. Tenant Improvement Allowance and will also determine the Additional Tenant Improvement Allowance (“Over Allowance Amount”), Tenant shall pay, concurrently with each disbursement by Landlord pursuant to Section 2.2.2, a pari passu portion ratio of the Tenant Improvement costs subject to such request, equal to the ratio obtained by dividing the Over Over-Allowance Amount by to the Final Costs (“Pro Rata Share”), multiplied by portion of the Tenant Improvement costs subject to such request. For purposes of illustration onlye.g., if the Final Costs are Over-Allowance Amount were to be One Million One Hundred Seventy-Four Thousand Eight EXHIBIT B Hundred Twenty-Four and 00/100 Dollars ($500,0001,174,824.00), the total allowance payable by Landlord ratio would be sixteen point six percent (i.e., 16.6%) Over-Allowance Amount and eighty-three point four percent (83.4%) Improvement Allowance). The ratio applicable to the Tenant Over-Allowance Amount may be referred to herein as "Tenant's Ratio") and the ratio applicable to the Improvement Allowance may be referred to herein as "Landlord's Ratio." Tenant's determination of the Over-Allowance Amount, Tenant's Ratio and Landlord's Ratio are subject to Landlord's reasonable approval. Tenant shall pay Tenant's Ratio of the Additional Tenant Improvement Allowance) is $250,000, and amounts due to the applicable bills and invoices submitted Contractor at the same time Landlord makes its monthly disbursement of the Landlord's Ratio of the amounts due to Landlord for a disbursement pursuant to the Contractor in accordance with Section 2.2.2 is $100,000, Landlord would disburse $50,000 ($250,000/$500,000 x $100,000), and Tenant would pay the remaining $50,0002.2 above. In the event that, after the Final Costs have been delivered by Landlord Tenant to TenantLandlord, the costs relating to the design and construction of the Tenant Improvements shall change, any additional costs necessary to such design and construction increase in a way that results in the Final Costs being in excess of the Improvement Allowance (or otherwise further increases the amount by which the Final Costs shall, to the extent they exceed the remaining balance are in excess of the Tenant Improvement Allowance), such excess shall be paid by Tenant out of its own funds, but Tenant shall continue to provide Landlord with the documents described in the same method as the payment by Sections 2.2.2.1(i), (ii), (iii) and (iv) of this Work Letter, above, for Landlord's approval, prior to Tenant of the Over-Allowance Amount set forth hereinpaying such costs.