Common use of SEISMIC UPGRADES Clause in Contracts

SEISMIC UPGRADES. 10.1 If seismic upgrades are required by the City of Seattle or any other governmental entity as a result of a change in laws that affects all improvements and not as the sole result of Tenant's Work, Tenant shall perform such work and shall share in the cost of seismic upgrades in an amount equal to 50% of the portion of the Premises leased by Tenant (but not subleased to Landlord), e.g. 1/3 space occupied X 50% = 17%. 10.2 Except as described in Section 10.1, if any work by Tenant on the Premises results in a requirement by the City of Seattle that certain seismic upgrades be made to the Building, then the parties agree that: (a) Tenant shall pay all amounts up to $400,000 of the required seismic upgrades; (b) Landlord shall be responsible for all amounts in excess of $400,000 up to $600,000; (c) Tenant will finance Landlord's portion of the seismic upgrades referred to in Subsection 10.2(b), which shall be payable by Landlord to Tenant through a fifty percent (50%) rent reduction, plus interest at a rate of eight percent (8%) per year, commencing as funds are expended. (d) Tenant and Landlord will share the additional cost of seismic upgrades which exceed $600,000, on a 50/50 basis, with Tenant's portion determined by multiplying fifty percent (50) times the percentage of space leased (but not subleased by Landlord) (e.g. 50% x 2/3 Building = 34%).