Common use of Construction Improvements Clause in Contracts

Construction Improvements. Section 11.1 Except for nonstructural Alterations not exceeding $25,000 in the aggregate, Tenant shall not make or suffer to be made any Alterations in, on or to the Premises or any part thereof without the prior written consent of Landlord which consent shall not be unreasonably withheld, conditioned, or delayed. When applying for any such consent, Tenant shall furnish plans and specifications for the Alterations. Tenant shall keep the Premises free from any liens arising out of any work performed, materials furnished or obligations incurred by Tenant in connection with such Alterations. Landlord shall have the right to post and keep posted at the Premises any notices which Landlord may reasonably deem proper for the protection of Landlord, the Premises and/or the Building from such liens. Furthermore, Tenant shall not at any time during the Lease Term make any Alteration in or to the Premises or to any building thereon, unless: (a) the same shall be performed in a professional workmanlike manner, at Tenant's sole cost and expense, and shall not weaken or impair the structural strength, or lessen the value, of such buildings as shall be on the Premise at the time, or change the purposes for which such buildings may be used (other than for the uses permitted under Section 6.1 of this Lease); (b) Tenant shall pay when due or bond all claims for labor or material furnished to or for Tenant at or for use in or on the Premises, which claims may be secured by any mechanics or materialmen's lien against the Premises or any interest therein; and Tenant shall hold Landlord harmless from any and all claims, costs, or damages arising from labor or materials so furnished or alleged to have been furnished. Tenant agrees to promptly pursue and resolve any illegitimate claims for labor and materials and, if necessary, Landlord shall cooperate in the resolution of such claims at Tenant's expense. Tenant shall deliver to Landlord written notice of its intention to commence any work on or in the Premises at least ten (10) days prior to such commencement, and Landlord shall have the right, but not the obligation, to post a notice of non-responsibility at the Premises as provided by law; (c) before the commencement of any such work, such plans and specifications shall be filed with and approved by all governmental departments or authorities having jurisdiction, and any public utility company having an interest therein, and all such work shall be done subject to and in accordance with the requirements of law and local regulations of all governmental departments or authorities having jurisdiction and of such public utility company, including, without limitation, any requirements that Tenant obtain construction permits for such work and a certificate of occupancy upon completion; and (d) furnish to Landlord a letter guaranteeing the completion of such work, free and clear of all liens, encumbrances, chattel mortgages, conditional bills of sale, security agreements and financing statements according to said plans and specifications therefore. None of the foregoing requirements shall prevent Tenant from contesting in good faith any lien against the Premises, as long as such contest prevents foreclosure of the lien and Tenant causes such lien to be bonded or insured over in a manner acceptable to Landlord in its sole discretion. Section 11.2 Unless otherwise provided by Landlord in writing ------------ at the time Landlord approves Tenant's request for such Alterations, all Alterations to the Premises made by Tenant shall become the property of Landlord and shall remain upon the Premises at the expiration of this Lease, except that Tenant may remove all personal property, trade fixtures, machinery and equipment installed by Tenant, and fully restore and damage caused by such removal. Landlord shall provide written notice to Tenant at the time when Landlord's approval is given for such Alteration, indicating whether Landlord requires Tenant ripen such expiration or termination of this Lease to remove any or all such Alterations, and restore the Premises to the condition that would exist except for such Alterations. For any Alterations for which the consent of Landlord is not required under Paragraph 11.1 above, at Landlord's sole election, (i) Tenant shall, at Tenant's sole expense, promptly remove such Alterations upon expiration or earlier termination of this Lease and restore the Premises to the condition existing as of the Commencement Date, normal wear and tear excepted, or (ii) such Alterations shall become the property of Landlord and shall remain upon the Premises at the expiration of this Lease, except that Tenant may remove all personal property, trade fixtures, machinery and equipment installed by Tenant, and fully restore and damage caused by such removal. Such removal, restoration, and repair shall be completed by Tenant not later than the expiration or sooner termination of this Lease.

Construction Improvements. Section 11.1 11.1. Tenant shall spend a minimum of ONE MILLION ONE HUNDRED SIXTY-SIX THOUSAND FOUR HUNDRED DOLLARS ($1,166,400) (hereinafter referred to as the "Minimum Amount") on the Tenant Improvements set forth on EXHIBIT C annexed hereto exclusive of specialized work which will be of benefit to the Tenant specifically in the Landlord's opinion. Landlord agrees that Tenant may use a portion of the Minimum Amount in order to upgrade the Building and the Premises to all current applicable building and zoning codes in effect. Landlord also agrees that to the extent the deferred maintenance items and legal compliance items set forth in EXHIBIT D are not corrected by the current occupant, Tenant may use a portion of the Minimum Amount up to One Hundred Five Thousand Dollars ($105,000) to complete said deferred maintenance and legal compliance items. Tenant shall provide evidence satisfactory to the Landlord that the Minimum Amount has been expended. Tenant shall use its best efforts to complete the Tenant Improvements (as defined in EXHIBIT C annexed hereto) within three (3) months after the Commencement Date, such Tenant Improvements are to be constructed within the Premises, in accordance with the provisions of this Article 11 and EXHIBIT C. If Tenant does not spend the Minimum Amount within twelve (12) months of the Commencement Date, Tenant shall pay the difference between the actual amount spent on Tenant Improvements and the Minimum Amount to the Landlord, as compensation to the Landlord in lieu of the Tenant Improvements. Section 11.2. Except for nonstructural Alterations not exceeding $25,000 15,000 in the aggregate, Tenant shall not make or suffer to be made any Alterations in, on or to the Premises or any part thereof without the prior written consent of Landlord which consent shall not be unreasonably withheld, conditioned, withheld or delayed. When applying for any such consent, Tenant shall furnish plans and specifications for the Alterations. Tenant shall keep the Premises free from any liens arising out of any work performed, materials furnished or obligations incurred by Tenant in connection with such Alterations. Landlord shall have the right to post and keep posted at the Premises any notices which Landlord may reasonably deem proper for the protection of Landlord, the Premises and/or the Building from such liens. Furthermore, Tenant shall not at any time during the Lease Term make any Alteration in or to the Premises or to any building thereon, unless: (a) the same shall be performed in a professional workmanlike manner, at Tenant's sole cost and expense, and shall not weaken or impair the structural strength, or lessen the value, of such buildings as shall be on the Premise at the time, or change the purposes for which such buildings may be used (other than for the uses permitted under Section 6.1 of this Lease)used; (b) Tenant shall pay when due or bond all claims for labor or material furnished to or for Tenant at or for use in 20 or on the Premises, which claims may be secured by any mechanics or materialmen's lien against the Premises or any interest therein; and Tenant shall hold Landlord harmless from any and all claims, costs, or damages arising from labor or materials so furnished or alleged to have been furnished. Tenant agrees to promptly pursue and resolve any illegitimate claims for labor and materials and, if necessary, Landlord shall cooperate in the resolution of such claims at Tenant's expense. Tenant shall deliver to Landlord written notice of its intention to commence any work on or in the Premises at least ten (10) days prior to such commencement, and Landlord shall have the right, but not the obligation, to post a notice of non-responsibility at the Premises as provided by law; (c) before the commencement of any such work, such plans and specifications shall be filed with and approved by all governmental departments or authorities having jurisdiction, and any public utility company having an interest therein, and all such work shall be done subject to and in accordance with the requirements of law and local regulations of all governmental departments or authorities having jurisdiction and of such public utility company, including, without limitation, any requirements that Tenant obtain construction permits for such work and a certificate of occupancy upon completion; and (d) furnish to Landlord a letter guaranteeing the completion of such work, free and clear of all liens, encumbrances, chattel mortgages, conditional bills of sale, security agreements and financing statements according to said plans and specifications therefore. None of the foregoing requirements shall prevent Tenant from contesting in good faith any lien against the Premises, as long as such contest prevents foreclosure of the lien and Tenant causes such lien to be bonded or insured over in a manner acceptable to Landlord in its sole discretion. Section 11.2 11.3. Unless otherwise provided by Landlord in writing ------------ at the time Landlord approves Tenant's request for such Alterations, all Alterations to the Premises made by Tenant shall become the property of Landlord and shall remain upon the Premises at the expiration of this Lease, except that Tenant may remove all personal property, trade fixtures, machinery and equipment installed by Tenant, and fully restore and damage caused by such removal. Landlord shall provide written notice to Tenant at the time when Landlord's approval is given for such Alteration, indicating whether Landlord requires Tenant ripen upon such expiration or termination of this Lease to remove any or all such AlterationsAlterations (other than the Tenant Improvements performed in connection with the initial renovation of the Premises which shall not be required to be removed by Tenant), and restore the Premises to the condition that would exist except for such Alterations. For any Alterations for which the consent of Landlord is not required under Paragraph 11.1 above, at Landlord's sole election, (i) Tenant shall, at Tenant's sole expense, promptly remove such Alterations upon expiration or earlier termination of this Lease and restore the Premises to the condition existing as of the Commencement Date, normal wear and tear excepted, or (ii) such Alterations shall become the property of Landlord and shall remain upon the Premises at the expiration of this Lease, except that Tenant may remove all personal property, trade fixtures, machinery and equipment installed by Tenant, and fully restore and damage caused by such removal. Such removal, restoration, and repair (except for the Tenant Improvements) shall be completed by Tenant not later than the expiration or sooner termination of this Lease.