Common use of Construction Contract; Cost Budget Clause in Contracts

Construction Contract; Cost Budget. Tenant shall engage the Contractor under a commercially reasonable and customary construction contract, reasonably approved by Landlord (collectively, the “Contract”). Prior to the commencement of the construction of the Tenant Improvements, and after Tenant has accepted all bids for the Tenant Improvements, Tenant shall provide Landlord with a detailed breakdown, by trade, of the final costs to be incurred or which have been incurred, as set forth more particularly in Sections 2.2.1.1 through 2.2.1.9, above, in connection with the design and construction of the Tenant Improvements to be performed by or at the direction of Tenant or the Contractor, which costs form a basis for the estimated total costs of the work of the Tenant Improvement project (the “Final Budget”). Prior to the commencement of construction of the Tenant Improvements, Tenant shall inform Landlord of the amount (the “Over-Allowance Amount”), if any, by which the amount of the Final Budget exceeds the amount of the Tenant Improvement Allowance (less any portion thereof already disbursed by Landlord, or in the process of being disbursed by Landlord, on or before the commencement of construction of the Tenant Improvements). Tenant shall be responsible to pay any Over-Allowance Amount in progress payments on a pro rata basis based on the total Over-Allowance Amount as compared to the Tenant Improvement Allowance.

Construction Contract; Cost Budget. Tenant shall engage submit to Landlord a copy of the construction contract and general conditions with Contractor under a commercially reasonable and customary construction contract, reasonably approved by Landlord (collectively, the “Contract”)) for Landlord’s records. Prior to the commencement of the construction of the Tenant Improvements, and after Tenant has accepted all bids for the Tenant Improvements, Tenant shall provide Landlord with a written detailed breakdowncost breakdown (the “Final Costs Statement”), by trade, of the final costs to be incurred incurred, or which have been incurred, as set forth more particularly in Sections Section 2.2.1.1 through 2.2.1.9, 2.2.1.8 above, in connection with the design and construction of the Tenant Improvements to be performed by or at the direction of Tenant or the Contractor, Contractor (which costs form a basis for the estimated total costs amount of the work of the Tenant Improvement project Contract, if any (the “Final BudgetCosts”). Prior to To the commencement of construction of the Tenant Improvements, Tenant shall inform Landlord of the amount (the “Over-Allowance Amount”), if any, by which the amount of extent the Final Budget exceeds the amount of Costs exceed the Tenant Improvement Allowance (less any portion thereof already disbursed by Landlord, or in the process of being disbursed by Landlord, on or before the commencement of construction of the Tenant Improvements). , Tenant shall be responsible to pay any make payments for such additional costs (the “Over-Allowance Amount Amount”) out of its own funds, but Tenant shall provide Landlord with the documents described in progress payments on a pro rata basis based on the total Over-Allowance Amount as compared Sections 2.2.2.1(i), (ii), and (iii) above prior to the Tenant Improvement Allowancepaying such costs.

Construction Contract; Cost Budget. Tenant shall engage the Contractor under a commercially reasonable and customary construction contract, reasonably approved by Landlord (collectively, the “Contract”). Prior to the commencement of the construction of the Tenant Improvements, and after Tenant has accepted all bids for the Tenant Improvements, Tenant shall provide Landlord with a detailed breakdown, by trade, of the final costs to be incurred or which have been incurred, as set forth more particularly in Sections 2.2.1.1 through 2.2.1.92.2.1.7, above, in connection with the design and construction of the Tenant Improvements to be performed by or at the direction of Tenant or the ContractorTenant, which costs form a basis for the estimated total costs amount of the work Contract (the “Final Costs”). If the Final Costs equal an amount greater than the amount of the Tenant Improvement project Allowance (after deducting from the “Final Budget”). Prior Tenant Improvement Allowance any amounts expended in connection with the preparation of the Construction Drawings, and the cost of all other Tenant Improvement Allowance Items incurred prior to the commencement of construction of the Tenant Improvements, Tenant shall inform Landlord of the amount ) (the “Over-Allowance Amount”), if anythen Tenant shall pay a percentage of each amount otherwise disbursed under this Tenant Work Letter, which percentage shall be equal to the Over-Allowance Amount divided by which the amount of the Final Budget exceeds the amount Costs, and such payment by Tenant shall be a condition to Landlord’s obligation to pay any amounts of the Tenant Improvement Allowance (less any portion thereof already disbursed Allowance. In the event that, after the Final Costs have been delivered by Tenant to Landlord, or in the process of being disbursed by Landlord, on or before costs relating to the commencement of design and construction of the Tenant Improvements). Tenant Improvements shall change, any additional costs necessary to such design and construction in excess of the Final Costs, shall be responsible paid by Tenant in accordance with this Section 4.2.1, as an addition to pay any the Over-Allowance Amount in progress payments on a pro rata basis based on the total Over-Allowance Amount as compared to the Tenant Improvement AllowanceAmount.

Construction Contract; Cost Budget. Tenant shall engage the Contractor under a commercially reasonable and customary construction contract, reasonably approved by Landlord (collectively, the “Contract”). Prior to the commencement of the construction of the Tenant Improvements, and after Tenant has accepted all bids for the Tenant Improvements, Tenant shall provide Landlord with a detailed breakdown, by trade, of the final costs to be incurred or which have been incurred, as set forth more particularly in Sections 2.2.1.1 through 2.2.1.9, above, in connection with the design and construction of the Tenant Improvements to be performed by or at the direction of Tenant or the Contractor, which costs form a basis for the estimated total costs of the work of the Tenant Improvement project (the “Final Budget”). Prior to the commencement of construction of the Tenant Improvements, Tenant shall inform Landlord of the amount (the “Over-Allowance Amount”), if any, by which the amount of the Final Budget exceeds the amount of the Tenant Improvement Allowance (less any portion thereof already disbursed by Landlord, or in the process of being disbursed by Landlord, on or before the commencement of construction of the Tenant Improvements). Tenant shall be responsible to pay any a percentage of each disbursement under this Tenant Work Letter, which percentage shall be equal to the amount of the Over-Allowance Amount in progress payments on a pro rata basis based on Amount, divided by the total Over-Allowance Amount as compared amount of the Final Budget (provided that with respect to the Tenant Improvement Allowance.HVAC System Work the EXHIBIT B -7- BRITANNIA POINTE GRAND BUSINESS PARK [Portola Pharmaceuticals, Inc.] [First Amendment]

Construction Contract; Cost Budget. Prior to Tenant's execution of the construction contract and general conditions with Contractor (the "Contract"), Tenant shall engage submit the Contractor under a commercially reasonable and customary construction contractContract to Landlord for its approval, reasonably approved by which approval shall not be unreasonably withheld or delayed. Landlord shall advise Tenant within five (collectively, 5) business days after Landlord's receipt of the “Contract”)Contract if the same is unsatisfactory or incomplete in any respect. Prior to the commencement of the construction of the Tenant Improvements, and after Tenant has accepted all bids for the Tenant Improvements, Tenant shall provide Landlord with a written detailed breakdowncost breakdown (the "Final Costs Statement"), by trade, of the final costs to be incurred incurred, or which have been incurred, as set forth more particularly in Sections 2.2.1.1 Section 2.3.1.1 through 2.2.1.9, 2.3.1.9 above, in connection with the design and construction of the Tenant Improvements to be performed by or at the direction of Tenant or the Contractor, Contractor (which costs form a basis for the estimated total costs of the work of the Tenant Improvement project (the “Final Budget”). Prior to the commencement of construction of the Tenant Improvements, Tenant shall inform Landlord of the amount (the “Over-Allowance Amount”), if any, by which the amount of the Contract, if any (the "Final Budget Costs"). If and to the extent Final Costs as set forth in the Final Costs Statement (or as such Final Costs may subsequently be adjusted based on new information as the work proceeds) exceeds the amount of the Tenant Improvement Allowance (less any portion thereof already disbursed by LandlordAllowance, or in Tenant will pay such overage after the process disbursement of being disbursed by Landlord, on or before the commencement of construction of the Tenant Improvements). Tenant shall be responsible to pay any Over-Allowance Amount in progress payments on a pro rata basis based on the total Over-Allowance Amount as compared to the Tenant Improvement Allowance.

Construction Contract; Cost Budget. Prior to Tenant's execution of the construction contract and general conditions with Contractor (the "Contract"), Tenant shall engage submit the Contract to Landlord for its approval, which approval shall not be unreasonably withheld or delayed. The Contract shall provide for a guaranteed maximum price or a stipulated sum as the contract amount and shall be fully executed and delivered by Tenant and Contractor under a commercially reasonable and customary construction contract, reasonably approved by Landlord (collectively, prior to the “Contract”)commencement of construction. Prior to the commencement of the construction of the Tenant Improvements, and after Tenant has accepted all bids for the Tenant Improvements, Tenant shall provide Landlord with a written detailed breakdowncost breakdown (the "Final Costs Statement"), by trade, of the final costs to be incurred incurred, or which have been incurred, as set forth more particularly in Sections Section 2.2.1.1 through 2.2.1.9, 2.2.1.8 above, in connection with the design and construction of the Tenant Improvements to be performed by or at the direction of Tenant or the Contractor, Contractor which costs form a basis for the estimated total costs amount of the work of the Tenant Improvement project Contract, if any (the “"Final Budget”Costs"). Prior to the commencement of construction of the Tenant Improvements, Tenant shall inform supply Landlord of the with evidence that Tenant has cash-on-hand in an amount (the “"Over-Allowance Amount”), if any, ") by which the amount of the Final Budget exceeds the amount of Costs exceed the Tenant Improvement Allowance (less any portion thereof already disbursed by Landlord, or in the process of being disbursed by Landlord, on or before the commencement of construction of the Tenant Improvements). Tenant agrees that Tenant shall be solely responsible to pay any for payment of the Over-Allowance Amount in progress payments on a pro rata basis based on the total Over-Allowance Amount as compared to the Tenant Improvement AllowanceAmount.