Above-Allowance Costs Clause Samples

Above-Allowance Costs. If the Approved Cost Estimate indicates that Tenant’s TI Costs will exceed the TI Allowance and the Excess TI Allowance, then Tenant shall pay such excess amount (the “Above-Allowance Costs”) to Landlord in cash prior to, and as a condition to, the commencement of the Tenant Improvements. Tenant’s obligation to pay the Above-Allowance Costs prior to the commencement of the Tenant Improvements is both a material covenant by Tenant and a condition precedent, for Landlord’s benefit only, to Landlord’s obligation to commence the Tenant Improvements. In no event shall the Approved Cost Estimate or Landlord’s estimate of the Excess TI Allowance or the Above-Allowance Costs limit Tenant’s obligation to pay the full amount of Tenant’s TI Costs (subject to the TI Allowance and the Excess TI Allowance). Tenant shall be responsible for the full amount of Tenant’s TI Costs, subject only to Landlord’s contribution of the TI Allowance and the Excess TI Allowance.