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 (or a phase thereof, as the case may be), and after Tenant has accepted all bids for the Tenant Improvements (or a phase thereof, as the case may be), Tenant shall provide Landlord with a detailed breakdown, by trade, of the good faith estimated costs to be incurred or which have been incurred, as set forth more particularly in Sections 2.2.1.1 through 2.2.1.10, above, in connection with the design and construction of the applicable phase 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 applicable phase of the Tenant Improvement project (the “Estimated Budget”). The difference between the amount of the Estimated Budget and 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) is referred to herein as the “Over-Allowance Amount”. In the event that an Over-Allowance Amount exists in connection with any particular construction project involving the construction of the Improvements, then Tenant shall pay a percentage of each amount requested by Contractor or otherwise disbursed under this Work Letter, which percentage shall be equal to the Over-Allowance Amount divided by the amount of the Estimated Budget (after deducting from the Estimated Budget any amounts expended in connection with the preparation of the Construction Drawings, and the cost of other Tenant Improvement Allowance Items incurred prior to the commencement of construction of the Tenant Improvements) and such payments by Tenant (the “Over-Allowance Payments”) shall be a condition to Landlord’s obligation to pay any amounts from the Tenant Improvement Allowance. In the event that, after the Estimated Budget has been delivered by Tenant to Landlord, the costs relating to the design and construction of the Tenant Improvements shall change, any additional costs necessary to such design and construction in excess of the Estimated Budget, shall be in accordance with the terms of the immediately preceding sentence and the amounts to be disbursed by Landlord pursuant to the terms of this Work Letter thereafter shall be accordingly adjusted so that Landlord’s disbursements in the aggregate pursuant to the terms of this Work Letter and Tenant’s Over-Allowance Payments are each proportionate to the adjusted Estimated Budget. All Tenant Improvements paid for by the Over-Allowance Amount shall be deemed Landlord’s property under the terms of the Lease.

Construction Contract; Cost Budget. Prior to Xxxxxx'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 Landlord (collectively, the “Contract”)which approval shall not be unreasonably withheld or delayed. Prior to the commencement of the construction of the Tenant Improvements (or a phase thereof, as the case may be)Improvements, and after Tenant Xxxxxx has accepted all bids for the Tenant Improvements (or a phase thereof, as the case may be)Improvements, Tenant shall provide Landlord with a detailed breakdown, by trade, of the good faith estimated final costs to be incurred or which have been incurred, as set forth more particularly in Sections 2.2.1.1 through 2.2.1.102.2.1.8 of this Tenant Work Letter, above, in connection with the design and construction of the applicable phase 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 applicable phase of the Tenant Improvement project (the “Estimated Budget”). The difference between the amount of the Estimated Budget and Contract (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) is referred to herein as the “Over-Allowance Amount”"Final Costs"). In the event that an Over-Allowance Amount exists in connection with any particular construction project involving the construction of the Improvements, then Tenant shall pay a percentage of each amount requested by Contractor or otherwise disbursed under this Work Letter, which percentage shall be equal to the Over-Allowance Amount divided by the amount of the Estimated Budget (after deducting from the Estimated Budget any amounts expended in connection with the preparation of the Construction Drawings, and the cost of other Tenant Improvement Allowance Items incurred prior Prior to the commencement of construction of the Tenant Improvements) and such payments by , Tenant shall supply Landlord with cash in an amount (the “"Over-Allowance Payments”Amount") shall be a condition equal to Landlord’s obligation to pay any amounts from the difference between the Final Costs exceed the sum of (i) the Tenant Improvement Allowance, plus (ii) any Additional Allowance elected to be received by Tenant pursuant to Section 2.1.2 above). The Over-Allowance Amount shall be disbursed by Landlord prior to the disbursement of any of the then remaining portion of the Allowances, and such disbursement shall be pursuant to the same procedure as the Allowances. In the event that, after the Estimated Budget has Final Costs have been delivered by Tenant to Landlord, the costs relating to the design and construction of the Tenant Improvements shall change, any additional costs necessary to such design and construction in excess of the Estimated BudgetFinal Costs, shall be in accordance paid by Tenant to Landlord immediately as an addition to the Over- Allowance Amount or at Landlord's option, Tenant shall make payments for such additional costs out of its own funds, but Tenant shall continue to provide Landlord with the terms of the immediately preceding sentence documents described in Sections 2.2.2.1 (i), (ii), (iii) and the amounts to be disbursed by Landlord pursuant to the terms (iv) of this Tenant Work Letter thereafter shall be accordingly adjusted so that Letter, above, for Landlord’s disbursements in the aggregate pursuant 's approval, prior to the terms of this Work Letter and Tenant’s Over-Allowance Payments are each proportionate to the adjusted Estimated Budget. All Tenant Improvements paid for by the Over-Allowance Amount shall be deemed Landlord’s property under the terms of the Leasepaying such costs.

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 Contract (including Contractor's proposal and customary construction contractall exhibits and back-up documentation associated with such Contract) to Landlord for its approval, reasonably approved by Landlord (collectivelywhich approval shall not be unreasonably withheld, the “Contract”)conditioned or delayed. Prior to the commencement of the construction of the Tenant Improvements (or a phase thereof, as the case may be), and after Tenant has accepted all bids for the Tenant Improvements (or a phase thereof, as the case may be)Improvements, Tenant shall provide Landlord with a detailed breakdown, by trade, of the good faith estimated anticipated costs to be incurred or which have been incurred, as set forth more particularly in Sections 2.2.1.1 through 2.2.1.102.2.1.9, above, in connection with the design and construction of the applicable phase of the such 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 applicable phase of the Tenant Improvement project Contractor (the “Estimated Budget”"Anticipated Costs"). The Prior to the commencement of construction of such Tenant Improvements, Tenant shall identify the amount equal to the difference between the amount of the Estimated Budget Anticipated Costs and 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) is referred to herein as the “Over-Allowance Amount”). In the event that an the Anticipated Costs are greater than the amount of the Tenant Improvement Allowance (the "Anticipated Over-Allowance Amount exists in connection with any particular construction project involving the construction of the ImprovementsAmount"), then then, Tenant shall pay a percentage EXHIBIT B -4- of each amount requested by the Contractor or otherwise to be disbursed under this Tenant Work Letter, which percentage (the "Percentage") shall be equal to the Anticipated Over-Allowance Amount divided by the amount of the Estimated Budget Anticipated Costs (after deducting from the Estimated Budget Anticipated Costs 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) ), and such payments by Tenant (the “Over-"Over- Allowance Payments”") shall be a condition to Landlord’s 's obligation to pay any amounts from the Tenant Improvement AllowanceAllowance (the "Tenant Improvement Allowance Payments"). In After Tenant's initial determination of the event thatAnticipated Costs, after the Estimated Budget has been delivered by Tenant shall advise Landlord from time to Landlord, time as such Anticipated Costs are further refined or determined or the costs relating to the design and construction of the Tenant Improvements shall change, any additional costs necessary to such design and construction in excess of the Estimated Budget, shall be in accordance with the terms of the immediately preceding sentence otherwise change and the amounts to be disbursed by Landlord pursuant to Anticipated Over-Allowance Amount, and the terms of this Work Letter thereafter shall be accordingly adjusted so that Landlord’s disbursements in the aggregate pursuant to the terms of this Work Letter and Tenant’s Over-Allowance Payments are each proportionate to shall be adjusted such that the adjusted Estimated Budget. All Tenant Improvements paid for Improvement Allowance Payments by Landlord and the Over-Allowance Amount Payments by Tenant shall be deemed accurately reflect the then-current amount of Anticipated Costs. In connection with any Over-Allowance Payments made by Tenant pursuant to this Section 4.2.1, Tenant shall provide Landlord with the documents described in Sections 2.2.2.1 (i), (ii), and (iii) of this Tenant Work Letter, above, for Landlord’s property under 's approval, prior to Tenant paying such costs. Notwithstanding anything set forth in this Tenant Work Letter to the terms contrary, but subject to the last sentence of Section 3.4 above, construction of the LeaseTenant Improvements shall not commence until (a) Landlord has approved the Contract, and (b) Tenant has procured and delivered to Landlord a copy of all Permits for the applicable Tenant Improvements.

Construction Contract; Cost Budget. Tenant shall engage submit the Contractor under a commercially reasonable and customary construction contractcontract (the "Contract") to Landlord for its approval, reasonably approved by Landlord (collectively, the “Contract”)which approval shall not be unreasonably withheld or delayed. Prior to the commencement of the construction of the Tenant Improvements (or a phase thereof, as the case may be)Improvements, and after Tenant has accepted all bids for the Tenant Improvements (or a phase thereof, as the case may be)Improvements, Tenant shall provide Landlord with a detailed breakdown, by trade, of the good faith estimated final costs to be incurred or which have been incurred, as set forth more particularly in Sections 2.2.1.1 through 2.2.1.102.2.1.8 of this Tenant Work Letter, above, in connection with the design and construction of the applicable phase 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 amount of the work Contract (the "Final Costs"). Prior to the commencement of the applicable phase construction of the Tenant Improvement project Improvements, Tenant shall supply Landlord with cash in an amount (the “Estimated Budget”). The "Over-Allowance Amount") equal to the difference between the amount of the Estimated Budget Final Costs and 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) is referred to herein as the “Over-Allowance Amount”). In the event that an The Over-Allowance Amount exists in connection with any particular construction project involving the construction of the Improvements, then Tenant shall pay a percentage of each amount requested by Contractor or otherwise disbursed under this Work Letter, which percentage shall be equal to the Over-Allowance Amount divided disbursed by the amount of the Estimated Budget (after deducting from the Estimated Budget any amounts expended in connection with the preparation of the Construction Drawings, and the cost of other Tenant Improvement Allowance Items incurred Landlord prior to the commencement disbursement of construction any of the then remaining portion of the Tenant Improvements) Improvement Allowance, and such payments by Tenant (the “Over-Allowance Payments”) disbursement shall be a condition pursuant to Landlord’s obligation to pay any amounts from the same procedure as the Tenant Improvement Allowance. In the event that, after the Estimated Budget has Final Costs have been delivered by Tenant to Landlord, the costs relating to the design and construction of the Tenant Improvements shall change, any additional costs necessary to such design and construction in excess of the Estimated Budget, shall be in accordance with the terms of the immediately preceding sentence and the amounts to be disbursed by Landlord pursuant to the terms of this Work Letter thereafter shall be accordingly adjusted so that Landlord’s disbursements in the aggregate pursuant to the terms of this Work Letter and Tenant’s Over-Allowance Payments are each proportionate to the adjusted Estimated Budget. All Tenant Improvements paid for by the Over-Allowance Amount shall be deemed Landlord’s property under the terms of the Lease.by