Common use of Construction Allowance Clause in Contracts

Construction Allowance. Landlord will contribute to the costs of performing the Tenant Improvement Work, as depicted on the Approved Working Drawings, to the extent of the lesser of (a) One Million Six Hundred Sixty Nine Thousand Three Hundred Fifty Dollars ($1,669,350) for the Tenant Improvement Work to the Phase I Premises and One Million Nine Hundred Twenty Eight Thousand Three Hundred Sixty Two and 50/100 Dollars ($1,928,362.50) for the Tenant Improvement Work to the Phase II Premises or (b) the actual cost for such work (such amount for each Phase being the “Construction Allowance” for such Phase). The amount of the Construction Allowance for each Phase shall be disbursed pursuant to Section 6.2. Except as otherwise provided in Section 5.3 of this Work Letter, below, Tenant shall pay all costs in excess of the Construction Allowance for the design and construction of the Tenant Improvements. Except as otherwise specified in this Work Letter, the Construction Allowance may be applied only to the payment or reimbursement of: (i) the cost of obtaining Permits; (ii) the reasonable out of pocket costs paid by Landlord to any third-party consultant to review and approve the Final Working Drawings, or the Approved Working Drawings and costs incurred by Landlord in reviewing proposed Change Orders; and (iii) documented costs of labor and materials incorporated into the Tenant Improvements (excluding all costs of furnishings, furniture, trade fixtures, equipment, signage and other personal property, including switches, servers, routers and similar data and telecommunications cabling and equipment) (“Permitted Allowance Items”).

Construction Allowance. Landlord will contribute Lessee shall proceed to construct certain improvements within the Premises in compliance with certain plans and specifications prepared on behalf of the Lessee (the "Plans"). The Plans for the construction of the improvements to the Premises shall be mutually approved by the parties in writing prior to commencement of construction. The improvements to the Premises shall include all costs associated with the interior finish-out construction, construction of performing a backup generator and related screening at a location adjacent to the Tenant Improvement Work, Premises as depicted on EXHIBIT "A-4" attached hereto and incorporated herein, any architectural drawings prepared on behalf of the Approved Working DrawingsLessee, and a fee payable to Compass Management and Leasing, Inc. ("Compass") as the co-construction manager to be retained by the Lessor to supervise the construction, in an amount equal to four percent (4%) of the Construction Allowance (as hereinafter defined). Lessee has retained The Staubach Company ("TSC") as a co-construction manager. Compass and TSC shall jointly manage the construction of the improvements to the extent Premises. The parties shall mutually endeavor to complete the construction of the improvements on or before May 1, 1998. The design and materials to be utilized for the screening surrounding the backup generator shall be subject to the written approval of the Lessor, such approval not to be unreasonably withheld or delayed. Such screening shall include, at a minimum, the construction of bollards and aggregate tilt walls surrounding the generator. Lessee shall be solely responsible for the removal of the generator and screening upon the expiration or earlier termination of this Lease, and shall repair all damages to the Premises or the surrounding areas occasioned by such removal. Lessee shall not permit Lessee's contractors or any subcontractor to commence any work in connection with the construction of the improvements to the Premises until appropriate insurance has been obtained and certificates evidencing such insurance coverage have been delivered to and approved by Lessor. Lessee agrees to indemnify, defend and hold Lessor harmless from and against all claims, liabilities, costs, damages and expenses of whatever nature, including those to the property of Lessee, arising out of or in conjunction with the performance of the construction of the improvements to the Premises. Lessor shall provide the Lessee with a Construction Allowance (herein so called) in an amount equal to the lesser of (a) One Million Six Hundred Sixty Nine Thousand Three Hundred Fifty Dollars ($1,669,350) for the Tenant Improvement Work actual cost of construction of the improvements to the Phase I Premises and One Million Nine Hundred Twenty Eight Thousand Three Hundred Sixty Two and 50/100 Dollars ($1,928,362.50) for the Tenant Improvement Work to the Phase II Premises Premises; or (b) the actual cost for such work (such amount for each Phase being the “Construction Allowance” for such Phase)sum of $400,000.00. The amount of Lessor's obligation to pay the Construction Allowance for each Phase shall be disbursed pursuant subject to Section 6.2the Lessor's prior receipt of invoices and lien waivers from any third parties providing construction services to the Premises, together with such other documentation as the Lessor shall reasonably require. Except as otherwise provided in Section 5.3 Lessor shall have the option of this Work Letter, below, Tenant either paying amounts due to such third parties either to the Lessee or directly to such third parties. Lessee shall pay be responsible for the timely payment of all construction costs in excess of the Construction Allowance Allowance. Lessee shall have sole responsibility for compliance with all applicable statutes, codes, ordinances and other regulations for all construction performed on behalf of Lessee within the design Premises, including without limitation, any applicable environmental regulations related thereto. In addition, the improvements to be constructed by the Lessee within the Premises shall be constructed and construction installed in compliance with the requirements of the Tenant Improvements. Except Americans With Disabilities Act of 1990, as otherwise specified in this Work Letteramended, any applicable state statute, and all rules and regulations promulgated thereunder (collectively, the Construction Allowance may "ADA"). Lessee, at Lessee's sole cost and expense, shall be applied responsible for compliance with all provisions of the ADA with respect to the use, occupation or alteration of the Expansion Premises. Lessor, at Lessor's sole cost and expense, shall be responsible for compliance with the ADA with respect to all common areas of the Project and with respect to the exterior of the Expansion Premises, to the extent, but only to the payment extent that such compliance is not caused by Lessee's use, occupation or reimbursement of: alteration of the Expansion Premises. Lessee acknowledges that (i) it has inspected and accepts the cost of obtaining Permits; Expansion Premises, (ii) the reasonable out of pocket costs paid by Landlord to any third-party consultant to review buildings and approve improvements comprising the Final Working Drawingssame are suitable for the purpose for which the Expansion Premises are leased, or the Approved Working Drawings and costs incurred by Landlord in reviewing proposed Change Orders; and (iii) documented costs the Expansion Premises are in good and satisfactory condition, and (iv) no representations as to the condition of labor and materials incorporated into the Tenant Improvements Expansion Premises, nor any other promises to alter, remodel or improve the Expansion Premises have been made by the Lessor (excluding all costs unless otherwise expressly set forth in this Amendment. The taking of furnishingspossession of the Expansion Premises by the Lessee shall be deemed evidence that the Expansion Premises were in a satisfactory condition at the time of possession; provided, furniturehowever, trade fixtures, equipment, signage and other personal property, including switches, servers, routers and similar data and telecommunications cabling and equipment) (“Permitted Allowance Items”)that nothing herein shall relieve the Lessor of its obligations under SECTION 4 of the Lease with respect to the Premises."

Construction Allowance. Provided Tenant is not in default, Landlord will agrees to contribute the sum of up to $10.00 per rentable square foot in the costs Premises as shown in the jointly approved final plans, which is currently estimated at One Hundred Seventy-Four Thousand, Five Hundred Forty Dollars ($174,540.00) (“Construction Allowance”) toward the cost of performing the Initial Alterations in preparation of Tenant’s occupancy of the Premises, plus one-half (1/2) the cost of each new demising wall being constructed in the Premises included in the Initial Alterations. For purposes of this Lease, a demising wall is a wall that separates the Premises from other tenants and the other areas of the Building. The Construction Allowance shall be payable to Tenant Improvement Workas a single payment following: (1) completion of the Initial Alterations (or the portion in the designated phase) including punchlist items as described below; (2) issuance of a final (not temporary) certificate of occupancy for the Premises (or the scope of work for the phase) by the applicable governmental agency(ies): (3) the certification of Tenant and its architect that the Initial Alterations (or for the work in the designated phase) have been installed in a good and workmanlike manner in accordance with the approved plans, and in accordance with applicable laws, codes and ordinances; (4) full and final contractor’s, subcontractor’s and material supplier’s waivers of liens which shall cover all Initial Alterations (or all work in the designated phase) and all other statements and forms required for compliance with the mechanics’ lien laws of the State of Utah; (5) general contractor and architect’s completion affidavits; (6)_plans and specifications for the initial Alterations, together with a certificate from an AIA architect that such plans and specifications comply in all material respects with all laws affecting the Building, Property and Premises; (7) Tenant furnishing Landlord with an accurate architectural “as-built” plan of the Initial Alterations as depicted constructed, which plan shall be incorporated into this Exhibit D by this reference for all purposes, and (8) copies of all construction contracts for the Initial Alterations, together with copies of all change orders, if any; together with all such invoices, contracts, or other supporting data as Landlord or Landlord’s Mortgagee may reasonably require. The Construction Allowance shall be disbursed in the amount reflected on the Approved Working Drawingsreceipted bills meeting the requirements above. Upon making payment of the Construction Allowance, Landlord and Tenant shall also jointly notify the escrow agent that all remaining funds in the escrow account may be returned to Tenant. Notwithstanding anything herein to the extent of the lesser of (a) One Million Six Hundred Sixty Nine Thousand Three Hundred Fifty Dollars ($1,669,350) for the Tenant Improvement Work contrary, Landlord shall not be obligated to the Phase I Premises and One Million Nine Hundred Twenty Eight Thousand Three Hundred Sixty Two and 50/100 Dollars ($1,928,362.50) for the Tenant Improvement Work to the Phase II Premises or (b) the actual cost for such work (such amount for each Phase being the “Construction Allowance” for such Phase). The amount disburse any portion of the Construction Allowance for each Phase during the continuance of an uncured default under the Lease, and Landlord’s obligation to disburse shall be disbursed pursuant to Section 6.2. Except as otherwise provided in Section 5.3 of this Work Letter, below, Tenant shall pay all costs in excess of the Construction Allowance for the design only resume when and construction of the Tenant Improvements. Except as otherwise specified in this Work Letter, the Construction Allowance may be applied only to the payment or reimbursement of: (i) the cost of obtaining Permits; (ii) the reasonable out of pocket costs paid by Landlord to any third-party consultant to review and approve the Final Working Drawings, or the Approved Working Drawings and costs incurred by Landlord in reviewing proposed Change Orders; and (iii) documented costs of labor and materials incorporated into the Tenant Improvements (excluding all costs of furnishings, furniture, trade fixtures, equipment, signage and other personal property, including switches, servers, routers and similar data and telecommunications cabling and equipment) (“Permitted Allowance Items”)if such default is cured.

Construction Allowance. Landlord will contribute Lessor agrees to pay an amount equal to the product of (i) $35.00 multiplied by (ii) the rentable area of the Office Space (the "Construction Allowance") toward the costs of performing Lessee's Work in accordance with the Tenant Improvement Workterms of this Workletter and the Lease. Lessee may draw funds against the Construction Allowance at any time after the Actual Delivery Date and until the date four (4) months after the Commencement Date, as depicted on the Approved Working Drawings, subject to the extent of the lesser of following: (a) One Million Six Hundred Sixty Nine Thousand Three Hundred Fifty Dollars ($1,669,350) for the Tenant Improvement Work Lessor shall have no obligation to the Phase I Premises and One Million Nine Hundred Twenty Eight Thousand Three Hundred Sixty Two and 50/100 Dollars ($1,928,362.50) for the Tenant Improvement Work to the Phase II Premises or (b) the actual cost for such work (such amount for each Phase being the “Construction Allowance” for such Phase). The amount disburse any portion of the Construction Allowance for each Phase shall be disbursed pursuant to Section 6.2. Except as otherwise provided in Section 5.3 of this Work Letter, below, Tenant shall pay all costs in excess of at any time that an uncured default by Lessee exists under the Construction Allowance for the design and construction of the Tenant Improvements. Except as otherwise specified in this Work Letter, the Lease. (b) The Construction Allowance may only be applied only by Lessee to the payment or reimbursement of: (i) the cost of obtaining Permits; (ii) the reasonable out of pocket costs paid by Landlord to any third-party consultant to review and approve the Final Working Drawingspay, or the Approved Working Drawings and to reimburse Lessee for all "hard" costs incurred by Landlord in reviewing proposed Change Orders; and of Lessee's Work (iii) documented including, without limitation, costs of labor and materials incorporated into and contractors' charges for overhead, fees, general conditions and insurance premiums). (c) Lessee may not make more than one draw of the Tenant Improvements Construction Allowance in any calendar month. (excluding d) The minimum amount that may be drawn at any one time (except in case of the final draw) is Twenty Thousand Dollars ($20,000). (e) With each draw request Lessee shall submit to Lessor the following documents: (i) A true and correct copy of the application for payment by Lessee's contractors for the portion of Lessee's Work completed to date, including contractor's affidavits and sworn statements evidencing the cost of such portion of Lessee's Work performed to date (or in the case of subcontractors and materialmen, affidavits and sworn statements for the last preceding draw request); (ii) Partial or final lien waivers with respect to the portion of Lessee's Work performed to date (or in the case of subcontractors and materialmen and except for the final disbursement of the applicable Construction Allowance, partial lien waivers for the last preceding draw request); (iii) Lessee's certification to Lessor that the amounts set forth in all contractor's sworn statements are owed to Lessee's contractors for the portion of Lessee's Work performed to date; (iv) The total cost of Lessee's Work based on Lessee's final plans, as such cost may change from time to time; and (v) With the final draw request, a certificate from Lessee's architect stating that to Lessee's best information, knowledge and belief, Lessee's Work has been substantially completed in accordance with the Final Plans and the Requirements. (f) In the event that the budget submitted to Lessor in accordance with the terms of Paragraph 5 hereinabove or the certificate to be provided in accordance with subparagraph (e)(iv) hereinabove indicates that the total cost of the contemplated Lessee's Work, together with the total cost of any of Lessee's Work previously completed, will exceed the amount of the Construction Allowance, Lessor will pay Lessor's Pro Rata Share (as such term is hereinafter defined) and Lessee shall pay Lessee's Pro Rata Share (as such term is hereinafter defined) of any further costs incurred in connection with Lessee's Work until such time as Lessee has paid towards the costs of furnishings, furniture, trade fixtures, equipment, signage and other personal property, including switches, servers, routers and similar data and telecommunications cabling and equipmentLessee's Work the amount (the "Estimated Overage") (“Permitted Allowance Items”).by which the cost of the contemplated Lessee's Work