Excess Development Costs Sample Clauses
The Excess Development Costs clause defines how costs that exceed the originally agreed-upon budget for a development project are handled between the parties. Typically, this clause specifies which party is responsible for paying any additional expenses that arise if the actual development costs surpass the initial estimates, and may outline procedures for notification and approval of such overruns. Its core practical function is to allocate financial risk and responsibility for cost overruns, ensuring both parties understand their obligations and reducing the potential for disputes over unexpected expenses.
POPULAR SAMPLE Copied 1 times
Excess Development Costs. Subject to the terms of this Section 4.1(f), Landlord's obligation to solely fund Total Development Costs will not exceed $525 per rentable square foot in the Building (the “Initial Cost Limit”). If Total Development Costs exceed the Initial Cost Limit, then (i) Landlord shall be responsible for 50% of the Total Development Costs in excess of the Initial Cost Limit ("Landlord's Excess Development Costs") and (ii) Tenant shall be responsible for the remaining 50% of Total Development Costs in excess of the Initial Cost Limit (the “Tenant's Excess Development Costs”, together with Landlord's Excess Development Costs, the "Excess Development Costs"), subject to the application of the Allowance as set forth in this Section 4.1(f). In the event that the estimated (as reasonably determined by the Landlord) or actual Total Development Costs are greater than the Initial Cost Limit (i.e., Landlord is expected to pay the Landlord's Excess Development Cost and Tenant is expected to pay Tenant's Excess Development Costs), then Landlord shall promptly notify Tenant (the “Excess Development Cost Notice”). Thereafter, Landlord and Tenant shall work in good faith, for a period not to exceed thirty (30) days from the date that Landlord delivers the Excess Development Cost Notice to Tenant (the “VE Period”), to value engineer the Improvements in an effort to decrease the Total Development Costs below the Initial Cost Limit. Any cost associated with such value engineering design process will be the responsibility of Tenant, subject to Landlord’s obligations with respect to the Allowance pursuant to Article 4, and any changes requested by Tenant as a part of the value engineering process shall be a Change subject to Section 2.7(c); provided, however, any delays associated with the Tenant's efforts to value engineer the Improvements will not constitute a Tenant Delay but will constitute an Excusable Delay as provided below, and the parties anticipate that any such Change shall result in a decrease in the Total Development Costs (i.e., that there will be no additional Change Order Costs beyond the cost of value engineering). If, within the VE Period, Landlord and Tenant are unable to value engineer the Landlord’s Work so that the Total Development Costs are below the Initial Cost Limit, then Landlord shall notify Tenant of the amount of Excess Development Cost (after taking into account the reduction, if any, in the Total Development Costs that result from Landlord's and Tenant...
Excess Development Costs. In the event there are any Excess Development Costs, then CV shall be obligated to contribute to the Company the amount of additional capital necessary to pay or satisfy such Excess Development Costs. CV shall contribute to the Company the amount of such additional capital required pursuant to this Section 5.2.2 within thirty (30) calendar days following the receipt by CV of written notice from the Managers specifying the need for the additional capital. In the event CV fails to contribute to the Company the amount of additional capital required pursuant to this Section 5.2.2 within such thirty (30) calendar day period, as its sole and exclusive remedy, Legacy may elect to characterize such additional capital as an ACC Deficit Amount and contribute the same to the Company pursuant to Section 5.4 hereof and, in such a case, CV shall be subject to the Non-Contributing Member Deduction set forth in Section 6.1 hereof.
Excess Development Costs. Each Party shall promptly inform the JSC in writing upon such Party determining that it has incurred or is likely to incur Joint Development Costs for a Calendar Year that exceed the portion of the Joint Development Costs allocated to such Party in the Joint Development Budget for such Calendar Year (“Excess Development Costs”). To the extent such Excess Development Costs fall under the definition of “Joint Development Costs,” they shall be treated as Joint Development Costs hereunder and shared equally (50/50) between the Parties. In the event either Party identifies Excess Development Costs, the Parties shall discuss in good faith through the JSC the Joint Development Costs that are necessary and reasonable in order to perform the activities set forth in the CDP and any proposed amendments to the Joint Development Budget.
Excess Development Costs. In the event there are any Excess Development Costs, then Newpar shall be obligated to contribute to the Company the amount of additional capital necessary to pay or satisfy such Excess Development Costs. Newpar shall be obligated to contribute to the Company the amount of such additional capital required pursuant to this Section 5.2.2 within thirty (30) calendar days following the receipt by Newpar of written notice from the Managers specifying the need for the additional capital. In the event Newpar fails to contribute to the Company the amount of additional capital required pursuant to this Section 5.2.2 within such thirty (30) calendar day period, as its sole and exclusive remedy, Legacy may elect to characterize such additional capital as an ACC Deficit Amount and contribute the same to the Company pursuant to Section 5.4 hereof and, in such a case, Newpar shall be subject to the Non-Contributing Member Deduction set forth in Section 6.1 hereof.
Excess Development Costs. Notwithstanding Section 7.2.6(a), in the event a Party performing Phase 1A Activities or ▇▇▇-▇▇▇ ▇▇▇▇▇ ▇▇ ▇▇▇▇▇▇▇▇▇▇ for which it is responsible under the applicable Development Plan incurs more than [ * ] percent ([ * ]%) of aggregate Development Costs budgeted for such activities in the applicable Development Budget (the amount more than [ * ]%, “Excess Development Costs”), the other Party shall not be obligated to bear its Specified Percentage of such Excess Development Costs, except: (x) if the Parties approve such Excess Development Costs (either before or after they are incurred); or (y) to the extent such Excess Development Costs are attributable to (i) a change in Applicable Law, (ii) a force majeure event, (iii) variation in actual patient enrollment from projected patient enrollment, (iv) a change to a Clinical Trial protocol required or requested by any Regulatory Authority, or (v) unanticipated increases in the cost of raw materials.
Excess Development Costs. In the event there are any Excess Development Costs, then the Managers shall deliver written notice to G II, which written notice shall set forth the purpose and amount of such Excess Development Costs and the amount of additional capital required to pay or satisfy such Excess Development Costs. G II shall be obligated to contribute to the Company the amount of any additional capital required to pay or otherwise satisfy such Excess Development Costs. In the event G II fails to contribute to Company the amount of additional capital required pursuant to this Section 5.1.4 within thirty (30) calendar days after the receipt of such notice, (in which case G II will be characterized as the Non-Contributing Member), then Legacy may elect to characterize the additional capital required pursuant to this Section 5.1.4 as an ACC Deficit Amount and contribute the same to the Company pursuant to Section 5.2 hereof, and, in such a case, the Non-Contributing Member shall be subject to the Non-Contributing Member Deduction set forth in Section 6.1 hereof.