Common use of Budget For Tenant Improvements Clause in Contracts

Budget For Tenant Improvements. Before the commencement of construction of the Tenant Improvements, Landlord shall obtain a detailed breakdown by trade of the costs incurred or that will be incurred in connection with the design and construction of the Tenant Improvements (the “Budget”). The Budget shall be based upon the TI Construction Drawings approved by Tenant and shall include a payment to Landlord of administrative rent (“Administrative Rent”) in the amount of $150,000 for monitoring and inspecting the construction of the Tenant Improvements and Changes, which sum shall be payable from the TI Fund (as defined in Section 5(d)). Administrative Rent shall include, without limitation, all out-of-pocket costs, expenses and fees incurred by or on behalf of Landlord arising from, out of, or in connection with monitoring the construction of the Tenant Improvements and Changes, and shall be payable out of the TI Fund. Tenant shall have the right to use a third party construction manager reasonably acceptable to Landlord with respect to the design, construction and construction management of the Tenant Improvements (and Landlord hereby approves Xxxx Xxxxx of Xxxxx Xxxx LaSalle as Tenant’s construction manager). The cost of such third party construction manager may be paid out of the TI Allowance following presentment of an invoice pursuant to a schedule to be agreed upon by Landlord and Tenant. Tenant shall either (i) approve and deliver the Budget to Landlord within five (5) business days of the receipt of the same and Tenant’s failure to respond shall constitute a Tenant Delay to the extent completion of Landlord’s Work is actually delayed, or (ii) notify Landlord within five (5) business days after Tenant’s receipt of the Budget that Tenant will instruct the TI Architect to revise the TI Construction Drawings to change the amount of the Budget, in which case such changes shall be made to the TI Construction Drawings only in accordance with this Work Letter and the revised TI Construction Drawings shall be provided to the General Contractor for repricing whereupon Landlord shall revise the Budget for Tenant’s approval. This procedure shall be repeated until the Budget is approved by Tenant which approval shall not be unreasonably withheld, delayed or conditioned, and if the process is repeated more than once then each day until the Budget is approved by Tenant shall constitute a Tenant Delay (to the extent of an actual delay in the completion of Landlord’s Work). If the Budget is greater than the TI Allowance, Tenant shall pay the difference to Landlord pursuant to a schedule to be determined by Landlord in its sole and absolute discretion; provided, however, in no event shall Landlord require Tenant to pay to Landlord more than 50% of the difference, in cash, prior to the commencement of construction of the Tenant Improvements or Changes, nor shall Landlord require Tenant to pay more than 50% of the difference to Landlord prior to the point when the Tenant Improvements are at least 50% completed, for disbursement by Landlord as described in Section 5(d). If following Substantial Completion of the Tenant Improvements, there remain Excess TI Costs which have not been billed to Tenant, Tenant shall, after receipt of reasonably acceptable evidence of the same from Landlord, pay the same to Landlord which costs will be amortized on a straight line basis over the first ten (10) months of the Base Term of the Lease (commencing after the date of Delivery of the Premises to Tenant with Landlord’s Work Substantially Complete; provided, however, that if any Excess TI Costs are billed to Tenant after the date of the Delivery then the commencement date for the straight line amortization of such Excess TI Costs over the remainder of such 10–month period shall commence on Tenant’s receipt of the xxxx for the applicable Excess TI Costs) with interest at 8% per annum as Additional Rent, and such amortized amounts will be payable by Tenant monthly at the same time and place as Base Rent commencing with the first payment of Base Rent after the Construction Period. Notwithstanding anything to the contrary contained herein, in no event may the cost of the Tenant Improvements (including Changes) exceed $275.00 per rentable square foot of the Premises without Landlord’s prior written consent which consent may be granted or withheld in Landlord’s sole and absolute discretion.

Budget For Tenant Improvements. Before the commencement of construction of the Tenant Improvements, Landlord Tenant shall obtain a detailed breakdown breakdown, by trade trade, of the costs incurred or that will be incurred incurred, in connection with the design and construction of the Tenant Improvements and the Warm Shell Improvements (the “Budget”), and deliver a copy of the Budget to Landlord for Landlord’s approval, which shall not be unreasonably withheld, conditioned or delayed. The Budget shall be based upon the TI Construction Drawings approved by Landlord. Tenant and shall deliver to Landlord a copy of any amendments to the initial Budget for approval, which shall not be unreasonably withheld, conditioned or delayed. The Budget shall include a payment to Landlord of administrative rent (“Administrative Rent”) in the amount of $150,000 (i) for monitoring and inspecting the construction of the Tenant Improvements equal to 1% of the aggregate of the Tenant Improvement Allowance and ChangesAdditional Tenant Improvement Allowance (each as hereinafter defined), which sum shall be payable from the TI Fund Tenant Improvement Allowance and/or the Additional Tenant Improvement Allowance, plus (as defined in Section 5(d)). Administrative Rent shall includeii) for monitoring and inspecting the construction of the Warm Shell Improvements an amount equal to the actual, without limitation, all reasonable and verifiable out-of-pocket costs, expenses and fees costs incurred by or on behalf of Landlord arising from, out of, or in connection with the Warm Shell Improvements, which sum shall be payable from the Warm Shell Improvement Allowance. Landlord shall provide Tenant with a written accounting, including supporting documentation, of such costs incurred by Landlord in monitoring and inspecting the construction of the Warm Shell Improvements prior to Tenant Improvements and Changes, and shall be payable out being obligated to reimburse such costs or prior to any portion of the TI Fund. Tenant shall have the right Warm Shell Improvement Allowance being applied to use a third party construction manager reasonably acceptable to Landlord with respect to the design, construction and construction management of the Tenant Improvements (and Landlord hereby approves Xxxx Xxxxx of Xxxxx Xxxx LaSalle as Tenant’s construction manager). The cost of reimburse such third party construction manager may be paid out of the TI Allowance following presentment of an invoice pursuant to a schedule to be agreed upon by Landlord and Tenant. Tenant shall either (i) approve and deliver the Budget to Landlord within five (5) business days of the receipt of the same and Tenant’s failure to respond shall constitute a Tenant Delay to the extent completion of Landlord’s Work is actually delayed, or (ii) notify Landlord within five (5) business days after Tenant’s receipt of the Budget that Tenant will instruct the TI Architect to revise the TI Construction Drawings to change the amount of the Budget, in which case such changes shall be made to the TI Construction Drawings only in accordance with this Work Letter and the revised TI Construction Drawings shall be provided to the General Contractor for repricing whereupon Landlord shall revise the Budget for Tenant’s approval. This procedure shall be repeated until the Budget is approved by Tenant which approval shall not be unreasonably withheld, delayed or conditioned, and if the process is repeated more than once then each day until the Budget is approved by Tenant shall constitute a Tenant Delay (to the extent of an actual delay in the completion of Landlord’s Work). If the Budget is greater than the TI Allowance, Tenant shall pay the difference to Landlord pursuant to a schedule to be determined by Landlord in its sole and absolute discretion; provided, however, in no event shall Landlord require Tenant to pay to Landlord more than 50% of the difference, in cash, prior to the commencement of construction of the Tenant Improvements or Changes, nor shall Landlord require Tenant to pay more than 50% of the difference to Landlord prior to the point when the Tenant Improvements are at least 50% completed, for disbursement by Landlord as described in Section 5(d). If following Substantial Completion of the Tenant Improvements, there remain Excess TI Costs which have not been billed to Tenant, Tenant shall, after receipt of reasonably acceptable evidence of the same from Landlord, pay the same to Landlord which costs will be amortized on a straight line basis over the first ten (10) months of the Base Term of the Lease (commencing after the date of Delivery of the Premises to Tenant with Landlord’s Work Substantially Complete; provided, however, that if any Excess TI Costs are billed to Tenant after the date of the Delivery then the commencement date for the straight line amortization of such Excess TI Costs over the remainder of such 10–month period shall commence on Tenant’s receipt of the xxxx for the applicable Excess TI Costs) with interest at 8% per annum as Additional Rent, and such amortized amounts will be payable by Tenant monthly at the same time and place as Base Rent commencing with the first payment of Base Rent after the Construction Period. Notwithstanding anything to the contrary contained herein, in no event may the cost of the Tenant Improvements (including Changes) exceed $275.00 per rentable square foot of the Premises without Landlord’s prior written consent which consent may be granted or withheld in Landlord’s sole and absolute discretioncosts.

Budget For Tenant Improvements. Before the commencement of construction of the Tenant Improvements, Landlord shall obtain a detailed breakdown by trade of the costs incurred or that will be incurred in connection with the design and construction of the Tenant Improvements (the “"Budget”"); provided, however, that if the costs for Landlord’s Work set forth in the Budget exceed the amount of the TI Allowance, Tenant may require that Landlord make reasonable modifications to the proposed Tenant Improvements. Any such modifications required by Tenant pursuant to the immediately preceding sentence shall constitute a Change Request and any delay in the completion of Landlord’s Work caused by such modifications shall constitute a Tenant Delay. The Budget shall be based upon the TI Construction Drawings approved by Tenant and shall include a payment to Landlord of administrative rent (“"Administrative Rent”") in equal to 3% of the amount of $150,000 TI Costs for monitoring and inspecting the construction of the Tenant Improvements and Changes, which sum shall be payable from the TI Fund (as defined in Section 5(d)). Administrative Rent shall include, without limitation, all out-of-pocket costs, expenses and fees incurred by or on behalf of Landlord arising from, out of, or in connection with monitoring the construction of the Tenant Improvements and Changes, and shall be payable out of the TI Fund. Tenant shall have the right to use a third party construction manager reasonably acceptable to Landlord with respect to the design, construction and construction management of the Tenant Improvements (and Landlord hereby approves Xxxx Xxxxx of Xxxxx Xxxx LaSalle as Tenant’s construction manager). The cost of such third party construction manager may be paid out of the TI Allowance following presentment of an invoice pursuant to a schedule to be agreed upon by Landlord and Tenant. Tenant shall either (i) approve and deliver the Budget to Landlord within five (5) business days of the receipt of the same and Tenant’s failure to respond shall constitute a Tenant Delay to the extent completion of Landlord’s Work is actually delayed, or (ii) notify Landlord within five (5) business days after Tenant’s receipt of the Budget that Tenant will instruct the TI Architect to revise the TI Construction Drawings to change the amount of the Budget, in which case such changes shall be made to the TI Construction Drawings only in accordance with this Work Letter and the revised TI Construction Drawings shall be provided to the General Contractor for repricing whereupon Landlord shall revise the Budget for Tenant’s approval. This procedure shall be repeated until the Budget is approved by Tenant which approval shall not be unreasonably withheld, delayed or conditioned, and if the process is repeated more than once then each day until the Budget is approved by Tenant shall constitute a Tenant Delay (to the extent of an actual delay in the completion of Landlord’s Work). If the Budget is greater than the TI Allowance, Tenant shall pay the difference to deposit with Landlord pursuant to a schedule to be determined by Landlord in its sole and absolute discretion; provided, however, in no event shall Landlord require Tenant to pay to Landlord more than 50% of the difference, in cash, prior to the commencement of construction of the Tenant Improvements or Changes, nor shall Landlord require Tenant to pay more than 50% of the difference to Landlord prior to the point when the Tenant Improvements are at least 50% completed, for disbursement by Landlord as described in Section 5(d). If following Substantial Completion of the Tenant Improvements, there remain Excess TI Costs which have not been billed to Tenant, Tenant shall, after receipt of reasonably acceptable evidence of the same from Landlord, pay the same to Landlord which costs will be amortized on a straight line basis over the first ten (10) months of the Base Term of the Lease (commencing after the date of Delivery of the Premises to Tenant with Landlord’s Work Substantially Complete; provided, however, that if any Excess TI Costs are billed to Tenant after the date of the Delivery then the commencement date for the straight line amortization of such Excess TI Costs over the remainder of such 10–month period shall commence on Tenant’s receipt of the xxxx for the applicable Excess TI Costs) with interest at 8% per annum as Additional Rent, and such amortized amounts will be payable by Tenant monthly at the same time and place as Base Rent commencing with the first payment of Base Rent after the Construction Period. Notwithstanding anything to the contrary contained herein, in no event may the cost of the Tenant Improvements (including Changes) exceed $275.00 per rentable square foot of the Premises without Landlord’s prior written consent which consent may be granted or withheld in Landlord’s sole and absolute discretion.

Budget For Tenant Improvements. Before the commencement of construction of the Tenant Improvements, Landlord shall obtain a detailed breakdown breakdown, by trade trade, of the costs incurred or that which will be incurred incurred, in connection with the design and construction of the Tenant Improvements Improvements, including Tenant's Share of the costs of the Central Plant (the “"Budget”"). The Budget shall be based upon the TI Construction Drawings approved by Tenant and shall include a payment to Landlord Landlord, of administrative rent (“"Administrative Rent”") in equal to 3% of the amount cost of $150,000 designing and constructing the Tenant Improvements (including an allocation of the costs of the Central Plant) for monitoring and inspecting the construction of the Tenant Improvements and ChangesImprovements, which sum shall be payable from the TI Fund (as defined in Section 5(d))Fund. Such Administrative Rent shall include, without limitation, all out-of-pocket costs, expenses and fees incurred by or on behalf of Landlord Landlord, including the cost of any overhead, arising from, out of, of or in connection with such monitoring of the construction of the Tenant Improvements Improvements, incurred by or on behalf of Landlord regardless whether Landlord's actual costs and Changes, and shall be payable out of expenses exceed the TI FundAdministrative Rent. Tenant shall have the right to use a third party construction manager reasonably acceptable to Landlord with respect to the design, construction and construction management of the Tenant Improvements (and Landlord hereby approves Xxxx Xxxxx of Xxxxx Xxxx LaSalle as Tenant’s construction manager). The cost of such third party construction manager may be paid out of the TI Allowance following presentment of an invoice pursuant to a schedule to be agreed upon by Landlord and Tenant. Tenant shall either (i) approve and deliver or disapprove the Budget to Landlord within five (5) business days of the receipt of the same and Tenant’s failure to respond shall constitute a Tenant Delay to the extent completion of Landlord’s Work is actually delayed, or (ii) notify Landlord within five (5) 10 business days after receipt thereof from Landlord. Tenant’s receipt 's failure to deliver notice of disapproval shall constitute Tenant's approval thereof. If Tenant disapproves the Budget that Budget, Tenant will instruct shall notify Landlord of such disapproval within such 10 Business Day period and the TI Architect parties shall as soon as reasonably possible meet in order to revise the TI Construction Drawings to change reduce the amount of Budget to a level that is acceptable to Tenant, provided that any delay in approving the Budget, Budget beyond the 10 Business Days provided above shall constitute Tenant Delay. Notwithstanding anything set forth in which case such changes shall be made to the TI Construction Drawings only in accordance with this Work Letter and of the revised TI Construction Drawings shall be provided to the General Contractor for repricing whereupon Landlord shall revise the Budget for Tenant’s approval. This procedure shall be repeated until the Budget is approved by Lease, Tenant which approval shall not be unreasonably withheld, delayed or conditioned, and if the process is repeated more than once then each day until the Budget is approved by Tenant shall constitute a Tenant Delay (to the extent of an actual delay in the completion of Landlord’s Work). If the Budget is greater than the TI Allowance, Tenant shall pay the difference to Landlord pursuant to a schedule to be determined by Landlord in its sole and absolute discretion; provided, however, in no event shall Landlord require Tenant required to pay to Landlord more than 50% of the difference, in cash, prior to the commencement of construction of the Tenant Improvements or Changes, nor shall Landlord require Tenant to pay more than 50% of the difference to Landlord prior to the point when the Tenant Improvements are at least 50% completed, for disbursement by Landlord as described in Section 5(d). If following Substantial Completion of the Tenant Improvements, there remain Excess TI Costs which have not been billed to Tenant, Tenant shall, after receipt of reasonably acceptable evidence of the same from Landlord, pay the same to Landlord which costs will be amortized on a straight line basis over the first ten (10) months of the Base Term of the Lease (commencing after the date of Delivery of the Premises to Tenant with Landlord’s Work Substantially Complete; provided, however, that if any Excess TI Costs are billed to Tenant after the date of the Delivery then the commencement date for the straight line amortization of such Excess TI Costs over the remainder of such 10–month period shall commence on Tenant’s receipt of the xxxx for the applicable Excess TI Costs) with interest at 8% per annum as Additional Rent, and such amortized amounts will be payable by Tenant monthly at the same time and place as Base Rent commencing with the first payment of Base Rent after the Construction Period. Notwithstanding anything to the contrary contained herein, in no event may the cost of the Tenant Improvements (including Changes) exceed $275.00 per rentable square foot any completion or performance bond in connection with any of the Premises without Landlord’s prior written consent which consent may be granted or withheld in Landlord’s sole and absolute discretionwork performed by any contractor pursuant to this Work Letter, unless Tenant shall request any such bond.