Common use of Initial Tenant Improvements Clause in Contracts

Initial Tenant Improvements. In connection with Tenant’s performance of the Tenant’s Initial Construction (as defined in Exhibit B), Landlord at its expense shall demolish the existing tenant improvements in the Leased Premises (“Demolition Work”). Landlord may, at its election, cause the Demolition Work to be performed by the contractor engaged by Tenant, pursuant to a separate contract with Landlord. Landlord shall complete the Demolition Work on or before the date ten (10) days after the execution and delivery of the Lease. If such work is not sufficiently completed by such date to permit the commencement of Tenant’s Initial Construction without interference (and such delay is not due to an act or request by Tenant and Tenant is otherwise ready to commence its work), then the Scheduled Term Commencement Date shall be delayed by one day for each day of delay in such completion of the Demolition Work. Landlord at its expense shall also construct the common area corridors on the floor in building standard condition (the “Corridor Work”) and construct a new demising wall separating such corridor from the initial Leased Premises (studs and corridor-side sheetrock only to the point of turnover to Tenant for the commencement of Tenant’s Initial Construction) (the “Demising Wall Work”). The parties will reasonably cooperate with each other to coordinate the Corridor Work (such that such work is substantially completed by the date Tenant’s Initial Construction is substantially completed) and the Demising Wall Work by Landlord with Tenant’s Initial Construction. Notwithstanding the foregoing, Landlord may, at its election, cause the Corridor Work and/or the Demising Wall Work to be performed by the contractor engaged by Tenant, pursuant to a separate contract with Landlord, in which event such work shall be performed concurrently with Tenant’s Initial Construction. If Landlord’s contractor is performing the Demising Wall Work, Landlord shall substantially complete the Demising Wall Work on or before the date ten (10) days after the execution and delivery of the Lease. If the Demising Wall Work is performed by Landlord’s contractor and is not sufficiently completed on or before such date to permit the commencement of Tenant’s Initial Construction without interference (and such delay is not due to an act or request by Tenant and Tenant is otherwise ready to commence its work), then the Scheduled Term Commencement Date shall be delayed by one day for each day of delay in such completion of such work. All other preparation work in the initial Leased Premises shall be performed in accordance with Exhibit B.

Initial Tenant Improvements. The initial improvements to the Premises shall be made in accordance with this Section 8.1. Landlord, through its general contractor approved by Tenant, shall construct the Premises, perform the work and make the installations in the Premises, at Landlord’s cost, pursuant to the plans and specifications described on Exhibit B hereto (the "Leasehold Improvements"). In connection with Tenant’s performance addition, upon substantial completion of the Tenant’s Initial Construction (as defined in Exhibit B)Premises and after Tenant has accepted delivery thereof, Landlord at its expense shall demolish remove the existing tenant improvements in Muni Operator restroom and passenger shelter, and the Leased Premises (“Demolition Work”)adjacent sidewalks. The Landlord may, at its election, cause shall install new sidewalks pursuant to Department of Public Works requirements. The Leasehold Improvements and the Demolition Work other work to be performed by Landlord hereunder are referred to collectively as "Landlord's Work". In conducting the contractor engaged removal work, Landlord shall use commercially reasonable efforts to leave undamaged and in place the existing electrical service conduit that provides electrical service to the existing bathroom and shelter. Landlord shall secure and pay for any building and other permits and approvals, government fees, licenses and inspections necessary for the proper performance and completion of Landlord's Work. Tenant will cooperate with Landlord in its efforts to obtain such permits and approvals. Landlord shall provide copies to Tenant promptly following receipt thereof. Landlord shall be responsible for arranging for all inspections required by ▇▇▇▇▇▇'s Bureau of Building Inspection. Landlord shall comply with and give notices required by all laws, rules, regulations, ordinances, building restrictions and lawful orders of public authorities bearing on the Landlord's Work. Without limiting the foregoing, construction of the Leasehold Improvements shall comply with all applicable disabled access laws, including, without limitation, the requirements of the Americans with Disabilities Act of 1990, Title 24 of the California Code of Regulations (or its successor) and Tenant's requirements for program accessibility. Landlord shall pay prevailing wages in connection with construction of the Leasehold Improvement Work as further provided in Section 22.23 (Prevailing Wages), below, and shall not use tropical hardwood wood products, virgin redwood wood products as further provided in Section 22.25 (Tropical Hardwood and Virgin Redwood Ban), below. The Leasehold Improvements shall be deemed to be "substantially completed" for purposes of this Lease when they have been sufficiently completed so that Tenant can occupy the Premises and conduct its business for its intended uses in the reasonable judgment of Tenant, pursuant through its Director of Transportation or his designee. The Leasehold Improvements shall be deemed substantially completed and shall be approved by Tenant even though there may remain minor details that would not interfere with Tenant's use ("punch list items"). Tenant shall deliver to Landlord a separate contract list of punch list items within 30 days after ▇▇▇▇▇▇'s acceptance of the Premises, and Landlord shall diligently pursue to completion all such items. No approval by Tenant or any of its Agents of the completion of the Leasehold Improvements for purposes of this Lease shall be deemed to constitute approval of any governmental or regulatory authority with jurisdiction over the Premises, and nothing herein shall limit Landlord’s obligations to obtain all such approvals. Landlord and Tenant acknowledge that Landlord shall complete the Demolition Work on or before the date ten (10) days after the execution and delivery Leasehold Improvements exclusive of the Leaseinstallation of telecommunications, data and computer cabling facilities and equipment. If Tenant, at Tenant's sole cost and expense, shall be responsible for installing such work is not sufficiently completed by such date facilities and equipment, provided that Landlord shall furnish access to permit the commencement of Tenant’s Initial Construction without interference (and such delay is not due to an act or request by Tenant and its consultants and contractors to the main telephone service serving the Premises for which access is needed for proper installation of all such facilities and equipment including, but not limited to, wiring. Tenant is otherwise ready shall have the right to commence its work), then enter the Scheduled Term Commencement Date shall be delayed by one day for each day of delay in such completion Premises at reasonable times during the course of the Demolition WorkLeasehold Improvements work in order to install such facilities and equipment. Tenant and Landlord at its expense shall also construct the common area corridors on the floor in building standard condition (the “Corridor Work”) and construct a new demising wall separating such corridor from the initial Leased Premises (studs and corridor-side sheetrock only to the point of turnover to Tenant for the commencement of Tenant’s Initial Construction) (the “Demising Wall Work”). The parties will reasonably cooperate with each other use their good faith efforts to coordinate any such activities to allow the Corridor Work (such that such work is substantially completed by the date Tenant’s Initial Construction is substantially completed) Leasehold Improvements and the Demising Wall Work by Landlord with Tenant’s Initial Construction. Notwithstanding the foregoing, Landlord may, at its election, cause the Corridor Work and/or the Demising Wall Work installation of such facilities and equipment to be performed by the contractor engaged by Tenant, pursuant to completed in a separate contract with Landlord, in which event such work shall be performed concurrently with Tenant’s Initial Construction. If Landlord’s contractor is performing the Demising Wall Work, Landlord shall substantially complete the Demising Wall Work on or before the date ten (10) days after the execution timely and delivery of the Lease. If the Demising Wall Work is performed by Landlord’s contractor and is not sufficiently completed on or before such date to permit the commencement of Tenant’s Initial Construction without interference (and such delay is not due to an act or request by Tenant and Tenant is otherwise ready to commence its work), then the Scheduled Term Commencement Date shall be delayed by one day for each day of delay in such completion of such work. All other preparation work in the initial Leased Premises shall be performed in accordance with Exhibit B.cost-effective manner.

Initial Tenant Improvements. In connection with Tenant’s performance of the Tenant’s Initial Construction (as defined in Exhibit B), Landlord at its expense shall demolish the existing tenant improvements in the Leased Premises construct (“Demolition Work”). Landlord may, at its election, cause the Demolition Work to be performed by the contractor engaged by Tenant, pursuant to a separate contract with Landlord. Landlord shall complete the Demolition Work on or before the date ten (10a) days after the execution and delivery of the Lease. If such work is not sufficiently completed by such date to permit the commencement of Tenant’s Initial Construction without interference (and such delay is not due to an act or request by Tenant and Tenant is otherwise ready to commence its work), then the Scheduled Term Commencement Date shall be delayed by one day for each day of delay in such completion of the Demolition Work. Landlord at its expense shall also construct the common area corridors on the floor in building standard condition (the “Corridor Work”) and construct (b) a new demising wall separating such corridor from the initial Leased Additional Premises (studs and corridor-side sheetrock only to the point of turnover to Tenant for the commencement of Tenant’s Initial ConstructionConstruction Work under Exhibit B hereto) (the “Demising Wall Work”). Within the common area corridor and other non-Tenant portion of the floor resulting from such demising work, Landlord is responsible for reconfiguration of life safety systems, HVAC, electrical wiring, painting, and finishing, and Tenant is responsible for reconfiguration of such elements within its Leased Premises (subject to reimbursement from the Tenant Work Allowance). The parties will reasonably cooperate with each other to coordinate the Corridor Work (such that such work is substantially completed by the date Tenant’s Initial Construction Work in the Additional Premises is substantially completed) and the Demising Wall Work by Landlord with Tenant’s Initial Construction(prior to the Delivery Date). Notwithstanding the foregoing, Landlord may, at its election, cause the Corridor Work and/or the Demising Wall Work to be performed by the contractor engaged by Tenant, pursuant to a separate contract with Landlord, in which event such work shall be performed concurrently with Tenant’s Initial ConstructionConstruction Work. If Landlord’s contractor is performing the Demising Wall Work, Landlord shall substantially complete the Demising Wall Work on or before the date ten (10Delivery Date for the Additional Premises. Notwithstanding the foregoing, if Tenant exercises the Initial Expansion Right for the balance of Floor 12 under Section 2.01(c) days after above, then Landlord shall not be obligated to perform any Corridor Work or Demising Wall Work in connection with the execution and delivery of the Lease. If Additional Premises and the Demising Wall Work is performed by Landlord’s contractor and is not sufficiently completed on or before such date to permit the commencement of Tenant’s Initial Construction without interference (and such delay is not due to an act or request by Tenant and Tenant is otherwise ready to commence its work), then the Scheduled Term Commencement Date shall be delayed by one day for each day of delay in such completion of such workExpansion Premises under Section 2.01. All other preparation work in for the initial Leased Premises Additional Premises, together with all refurbishment work for the Existing Subleased Premises, shall be performed by Tenant in accordance with Exhibit B.B attached hereto.

Initial Tenant Improvements. In connection with Tenant’s performance (a) Landlord shall be responsible, at Landlord's cost, for ensuring that as of the Tenant’s Initial Construction Commencement. Date the Premises is in compliance with all requirements of the Americans With Disabilities Act and that the deferred maintenance items with respect to the HVAC system described in the December 5, 1995 memorandum from ▇▇▇▇▇▇▇▇▇▇▇ Mechanical, Incorporated to ▇▇▇▇▇ ▇▇▇▇▇ has been completed. (as defined in Exhibit B)b) Tenant shall be responsible for completing all refurbishments to the interior of the Premises, Landlord at its expense shall demolish including, without limitation, repainting, recarpeting, erecting exterior signage complying with the provisions of this Lease, installing telecommunications and security systems, and making such minor modifications to the configuration of the existing tenant improvements in offices as Landlord may reasonably approve (the Leased Premises (“Demolition Work”"Initial Tenant Improvements"). Landlord maymay require, as a condition to its consent to any change in the existing floor plan or any other modification to the Premises which is structural in nature, that Tenant remove all such improvements at its election, cause the Demolition Work to be performed by the contractor engaged by Tenant, pursuant to a separate contract with Landlord. Landlord shall complete the Demolition Work on or before the date ten (10) days after the execution and delivery end of the Lease. If such work is not sufficiently completed by such date to permit Lease Term and return the commencement of Tenant’s Initial Construction without interference (and such delay is not due to an act or request by Tenant and Tenant is otherwise ready to commence its work), then the Scheduled Term Commencement Date shall be delayed by one day for each day of delay in such completion of the Demolition Work. Landlord at its expense shall also construct the common area corridors on the floor in building standard condition (the “Corridor Work”) and construct a new demising wall separating such corridor from the initial Leased Premises (studs and corridor-side sheetrock only to the point of turnover to Tenant for the commencement of Tenant’s Initial Construction) (the “Demising Wall Work”). The parties will reasonably cooperate with each other to coordinate the Corridor Work (such that such work is substantially completed its original condition, reasonable wear and tear excepted, if so requested by the date Tenant’s Initial Construction is substantially completed) and the Demising Wall Work by Landlord with Tenant’s Initial ConstructionLandlord. Notwithstanding the foregoing, Tenant may make minor changes in office sizes and configurations (provided the total number of offices is not reduced by more than 5% and the reconfigured offices are of a standard and reusable size and incorporate the same finishes as the remainder of the Premises), eliminate the main corridor on the second floor of the Premises and eliminate the basement lunch room (provided that Tenant leaves in place all existing kitchen appliances and fixtures), without any obligation to restore the Premises at the end of the Lease Term. Landlord mayshall advise Tenant at the time it approves any request for modifications to the Premises whether Landlord reserves the right, as a condition of its consent, to require restoration with respect to the modification approved. (c) Tenant shall cause its architects and engineers to prepare all drawings and specifications necessary to describe in reasonable detail the scope and nature of the proposed Initial Tenant Improvements, including all documentation necessary to describe all structural, mechanical, electrical, lighting, life safety, fire sprinkler and other components of the proposed improvements (the "Contract Documents"). Tenant shall deliver the Contract Documents to Landlord's property manager for Landlord's approval. Within five (5) business days following delivery of the Contract Documents to Landlord's property manager, Landlord shall notify Tenant of its approval or disapproval of the Contract Documents and, if Landlord disapproves the Contract Documents, the revisions Landlord will require. As promptly as reasonably possible thereafter, Tenant shall submit revised Contract Documents to Landlord's property manager, incorporating the revisions required by Landlord. All revised Contract Documents shall be subject to Landlord's approval in the manner described above. If Landlord fails to approve or disapprove any Contract Documents within five (5) business days following delivery to Landlord's property manager, Landlord shall be deemed to have approved the Contract Documents so submitted, Tenant shall also be responsible for obtaining all government permits and approvals required to complete the Initial Tenant Improvements. (d) Tenant shall enter into a guaranteed maximum price construction contract with Raiser Construction Company substantially in the form attached hereto as Exhibit "C" to complete all of the Initial Tenant Improvements other than the installation of telecommunications and security systems, for which Tenant shall contract with specialty contractors reasonably acceptable to Landlord. Landlord agrees to have a Landlord representative in attendance at weekly project meetings with Tenant and its electionprimary contractors during both the planning and construction phases of the Initial Tenant Improvements. Tenant shall not be required to pay Landlord a separate fee for construction administration or supervision in connection with the Initial Tenant Improvements. (e) Landlord shall provide to Tenant a tenant improvement allowance in the amount of Two Hundred Thirty-Seven Thousand Three Hundred and No/100 Dollars ($237,300) (the "Tenant Improvement Allowance") to cover costs actually incurred by Tenant in completing the Initial Tenant Improvements, cause including without limitation the Corridor Work and/or cost of Tenant's architects and engineers, permit fees and related "soft costs." Tenant shall be responsible for paying all costs of the Demising Wall Work Initial Tenant Improvements in excess of the Tenant Improvement Allowance. In the event the full Tenant Improvement Allowance is not expended to pay for the Initial Tenant Improvements, the excess shall be performed applied by Landlord as a credit against the contractor engaged Base Monthly Rent next due and payable. All disbursements from the Tenant Improvement Allowance shall be made pro rata with payments made directly by Tenant, based on a budget for the Initial Tenant Improvements approved by Landlord and Tenant, as it may be amended from time to time. Landlord shall disburse funds from the Tenant Improvement Allowance either directly to Raiser Construction Company, its subcontractors and suppliers or Tenant's specialty contractors pursuant to a separate contract with Landlord, in which event such work draw requests submitted on AIA G702 or G703 forms and approved by Tenant or to Tenant upon presentation to Landlord of invoices evidencing amounts advanced by Tenant. All disbursements shall be performed concurrently with made within five (5) business days following a request therefor, accompanied by appropriate supporting documentation, including without limitation evidence of corresponding direct payments by Tenant’s Initial Construction. If Landlord’s contractor is performing the Demising Wall Work, Landlord shall substantially complete the Demising Wall Work on or before the date ten (10) days after the execution and delivery of the Lease. If the Demising Wall Work is performed by Landlord’s contractor and is not sufficiently completed on or before such date to permit the commencement of Tenant’s Initial Construction without interference (and such delay is not due to an act or request by Tenant and Tenant is otherwise ready to commence its work), then the Scheduled Term Commencement Date shall be delayed by one day for each day of delay in such completion of such work. All other preparation work in the initial Leased Premises shall be performed in accordance with Exhibit B..

Initial Tenant Improvements. In connection with Tenant’s performance (a) Following execution of this Lease, Tenant shall provide to Landlord, for Landlord's reasonable approval, a full set of architectural plans and specifications ("Plans") to the extent necessary for the build-out of the Tenant’s Initial Construction (as defined in Exhibit B), Landlord at its expense shall demolish the existing tenant improvements in the Leased Premises (“Demolition Work”)"Initial Tenant Improvements") and capable of being presented for the purposes of obtaining all applicable building permits from the City of Chicago. The Plans shall be prepared by a reputable architect selected by Tenant and approved by Landlord may, at its election, cause the Demolition Work to and shall be performed by the contractor engaged paid for by Tenant, pursuant to a separate contract with Landlordexcept as set forth in Section 10.5(c) below. Landlord shall complete the Demolition Work on or before the date ten (10) days after the execution and delivery of the Lease. If such work is not sufficiently completed by such date to permit the commencement of Tenant’s Initial Construction without interference (and such delay is not due to an act or request by Tenant and Tenant is otherwise ready to commence its work), then the Scheduled Term Commencement Date shall be delayed by one day for each day of delay in such completion of the Demolition Work. Landlord at its expense shall also construct the common area corridors on the floor in building standard condition (the “Corridor Work”) and construct a new demising wall separating such corridor from the initial Leased Premises (studs and corridor-side sheetrock only to the point of turnover to Tenant for the commencement of Tenant’s Initial Construction) (the “Demising Wall Work”). The parties will reasonably cooperate with each other to coordinate the Corridor Work (such that such work is substantially completed by the date Tenant’s Initial Construction is substantially completed) and the Demising Wall Work by Landlord with Tenant’s Initial Construction. Notwithstanding the foregoing, Landlord maymay engage, at its electionLandlord's sole cost and expense, cause an architect to review the Corridor Work and/or the Demising Wall Work to be performed by the contractor engaged by Tenant, pursuant to a separate contract with LandlordPlans, in which event such work Tenant shall cause its architect to coordinate with Landlord's architect. If needed, Tenant shall engage, at Tenant's sole cost and expense, a permit expediter, approved by Landlord. Upon receipt of Landlord's approval of the Plans, Tenant shall present the Plans to contractors for bids. All contractors bidding on the Initial Tenant Improvements shall be performed concurrently subject to Landlord's prior reasonable approval, which approval shall not be unreasonably withheld. Tenant shall construct or cause to be constructed in the Premises, all improvements in accordance with the provisions of this Lease, and all applicable laws, codes, ordinances, statutes and regulations. Tenant shall be responsible for all utilities consumed in the Premises during the construction of the Initial Tenant Improvements. Tenant shall also reimburse Landlord for its actual costs for rubbish removal during the construction of the Initial Tenant Improvements if rubbish removal is not provided directly by Tenant’s 's contractor. (b) During the construction of the Initial ConstructionTenant Improvements, Landlord will not charge a "Coordination or administrative" fee (or any fees associated with using the freight elevators) during normal business hours (Monday-Friday, 8:00am-6:00pm). If Currently, the after hours charge for using the freight elevator is $60.00 per hour. However, Landlord will be reimbursed by Tenant for Landlord’s contractor 's actual out-of-pocket if any of the following occur: (a) Landlord pays for the services of an outside vendor or consultant in the process of reviewing/approving Tenant's plans or construction; or (b) if Landlord incurs actual costs in the coordination/assistance of Tenant during the construction phase; or (c) a supervisory fee is performing incurred related to Tenant's use of the Demising Wall Workloading dock or hoist after normal business hours (Monday-Friday, 8:00am-6:00pm). (c) Landlord shall provide Tenant with a Tenant Improvement Allowance ("Allowance") for hard and soft costs in the amount of $35.00 per rentable square foot or $563,570.00 based on 16,102 rentable square feet, of which no more than $10.00 per rentable square foot shall be used to pay for the soft costs associated with the Initial Tenant Improvements. Tenant may take, as a base rental credit, up to $5.00 per rentable square foot of the soft costs. The Allowance shall be disbursed through a construction escrow at Near North National Title, LLC in substantially the form attached hereto as Exhibit D, which escrow shall provide interest at competitive rates. In addition to the Allowance, Landlord shall substantially complete the Demising Wall Work on or before the date ten reimburse Tenant's space planner for one (101) days after the original set of space plans and one (1) revision. (d) Upon execution of this Lease and delivery mutual approval of the LeasePlans and costs for the Initial Tenant Improvements, if the cost of the Initial Tenant Improvements exceeds the Allowance, Tenant shall deposit the difference in the cost of the Initial Tenant Improvements and the Allowance into the construction escrow. If as a result of a proposed change order, the Demising Wall Work is performed by Landlord’s contractor and is not sufficiently completed on or before such date to permit cost of the commencement of Tenant’s Initial Construction without interference Tenant Improvements increases, (and such delay is not due to an act or request increased cost exceeds the Allowance), Tenant shall upon execution of such change order, deposit the amount of the increase into the construction escrow. Any change order must be reviewed and approved by Tenant and Tenant is otherwise ready to commence its workLandlord. (e) Tenant's contractor shall make requests for payment no more frequently than monthly (the "Draw"), then the Scheduled Term Commencement Date . Each Draw shall be delayed submitted by one day Tenant's contractor to Tenant for its review and approval. After Tenant has approved such Draw, Tenant shall forward it to Landlord for its review and approval of the Draw and its determination that the Initial Tenant Improvements are in substantial compliance with the plans and specifications. Landlord shall review and submit each day of delay in such completion of such work. All other preparation work in the initial Leased Premises shall be performed in accordance with Exhibit B.Draw to Near North National Title, LLC for payment.