Alterations Allowance Clause Samples
The Alterations Allowance clause defines the conditions under which a tenant may make changes or improvements to a leased property, and specifies any financial contribution the landlord will provide toward these alterations. Typically, this clause outlines the types of modifications permitted, the approval process required, and the maximum amount or scope of the landlord’s allowance, such as covering the cost of installing new fixtures or making layout changes. Its core practical function is to clarify both parties’ responsibilities and financial commitments regarding property modifications, thereby preventing disputes and ensuring that alterations are managed in an orderly and agreed-upon manner.
Alterations Allowance. Notwithstanding anything to the contrary in Paragraph 9 below, Landlord shall contribute toward the cost of the design, construction and installation of the Initial Alterations (including, without limitation, Tenant’s Contractor’s fee and the Alteration Operations Fee provided for in Paragraph 9.a. below) an amount not to exceed One Million Seventy-One Thousand Nine Hundred Sixty-Six and No/100ths Dollars ($1,071,966.00) (the “Alterations Allowance”). No portion of the Alterations Allowance may (A) be applied to the cost of equipment, trade fixtures, moving expenses, furniture, signage or cabling, (B) be applied to any portion of the Premises which is then the subject of a sublease, or (C) be used to prepare any portion of the Premises for a proposed subtenant or assignee. Notwithstanding anything to the contrary herein, Tenant shall not be entitled to receive (and Landlord shall have no obligation to disburse) all or any portion of the Alterations Allowance if Tenant is in default under the Lease at the time Tenant requests such disbursement, but Tenant shall be entitled to receive the subject disbursement after such default is cured, subject to Tenant complying with all other conditions for the disbursement provided for herein within the Availability Period (as defined below). Notwithstanding anything to the contrary in this Paragraph 4.b., the Alterations Allowance shall be available for disbursement pursuant to the terms hereof only during the fifteen (15) month period (the “Availability Period”) commencing on the Delivery Date. Accordingly, if any portion of the Alterations Allowance has not been utilized (and Tenant has not submitted to Landlord invoices evidencing such costs) prior to the end of the Availability Period, such unused portion shall be forfeited by Tenant.
Alterations Allowance. Landlord hereby grants Tenant the right to use up to $500,000.00 (the “Alterations Allowance”) for the reimbursement of costs expended by Tenant for the purchase and installation of improvements or FF&E which are permanently affixed to or used in the Premises (the “Refurbishments”). Tenant shall construct any Refurbishments constituting improvements as “Alterations” in accordance with the terms of this Article 8; provided, however, Tenant shall not be required to provide a bond under the last sentence of Section 8.4 with respect thereto. If Tenant elects to use any portion of the Refurbishment Allowance, Tenant shall provide written notice thereof to Landlord, together with invoices marked paid or other reasonable evidence of costs expended by Tenant on the Refurbishments, and with applicable lien releases (the “Disbursement Request”). All Disbursement Requests must be made, if at all, on or before the later of November 30, 2015, and six (6) months after the Lease Commencement Date. Tenant shall have no right to access any portion of the Alterations Allowance after such date. Landlord shall pay the applicable portion of the Alterations Allowance to Tenant within thirty (30) days after receipt of a Disbursement Request. If Tenant elects to use any portion of the Alterations Allowance, then Tenant shall be required to pay to Landlord, as Additional Rent under this Lease, the “Additional Monthly Base Rent” as defined below, to repay the Alterations Allowance to Landlord, on a monthly basis on each month during
Alterations Allowance. Pursuant to the terms of Section 8.6 of the Lease, Tenant was entitled to an Alterations Allowance of up to $500,000.00 (the “Alterations Allowance”). Notwithstanding any provision to the contrary contained in the Lease, Landlord and Tenant hereby acknowledge and agree that Tenant has utilized and /100 Dollars ($ . ) of the Alterations Allowance (the “Utilized Alterations Allowance”).
Alterations Allowance. In Paragraph 4.d.i. of the Lease, (i) the Alterations Allowance is increased to Two Million Eight Hundred Eighty Eight Thousand Nine Hundred Seventy Dollars ($2,888,97.00)(which is $52.50 per rsf based on 55,028 rsf) and (ii) the portion of the Alterations Allowance that may be applied to reasonable space planning, architectural and engineering costs for the design of the Tenant Improvements is increased to Three Hundred Eighty Five Thousand Five Hundred Seventy Four Dollars ($385,574.00) (which is $7.00 per rsf based on 55,028 rsf).
Alterations Allowance. 3.1 Upon Tenant’s written request and satisfaction of the conditions set forth in Section 3.2 below, Landlord will contribute to the cost of any Alterations that Tenant hereafter performs in the Premises pursuant to Section 5 of the Existing Lease up to a maximum amount of Four Hundred Sixteen Thousand Six Hundred Twenty-Two Dollars ($416,622.00) (calculated on the basis of $3.00 per rentable square foot in the Premises) (the “Alterations Allowance”). The Alterations Allowance may only be applied to the payment or reimbursement of documented “hard costs” of labor and materials and “soft costs” relating to the Alterations, together with any supervisory fee payable to Landlord pursuant to Section 5.1(c) of the Existing Lease. Tenant shall pay for all costs of Alterations in excess of the Alterations Allowance.
3.2 Provided that the Lease is then in full force and effect, Landlord shall pay the Alterations Allowance (or such portion thereof properly applied for by Tenant) to Tenant within thirty (30) days after satisfaction of each of the following conditions: (i) Tenant’s delivery to Landlord of invoices and other reasonably satisfactory evidence of the cost of the Alterations; (ii) with respect to any portion of the Alterations requiring a building permit, Tenant’s delivery to Landlord of a certificate issued by Tenant’s architect certifying, for the benefit of Landlord, that such portion of the Alterations has been completed in accordance with the plans approved by Landlord (excepting only minor field changes not inconsistent with the intent of such approved plans and any change orders approved by Landlord) and in compliance with all applicable Governmental Requirements; (iii) Tenant’s delivery to Landlord of lien releases, in statutory form, from the Tenant’s contractor, major subcontractors, and any other persons and entities providing work or materials covered by such statement who have given a preliminary 20-day notice in accordance with California Civil Code Section 3097; and (iv) Tenant’s delivery to Landlord of as-built plans and specifications for the Alterations, if appropriate (provided that, in all cases, Tenant shall deliver to Landlord reasonably detailed plans and specifications for its cabling).
3.3 If Tenant fails to submit reasonably satisfactory documentation requesting disbursement of the Alterations Allowance on or before the Termination Date (as such date may be extended), Landlord shall have no further obligation to provide the Altera...
Alterations Allowance. Commencing on the Effective Date, Section 4(c) of the Lease shall be deleted in its entirety.