Common use of Approval of Budget for the Tenant Improvements Clause in Contracts

Approval of Budget for the Tenant Improvements. Notwithstanding anything to the contrary set forth elsewhere in this Work Letter or the Lease, Landlord shall not have any obligation to expend more than thirty-three percent (33%) of the TI Allowance until Landlord and Tenant shall have approved in writing the budget for the Tenant Improvements (the “Approved Budget”). The Approved Budget shall identify the Excess TI Costs which shall be paid by Tenant and shall establish a pari passu reimbursement ratio for the amount reimbursed by Landlord (as may be adjusted on account of any Changes) in the proportion of the TI Allowance to the total cost of the Tenant Improvements set forth in the Approved Budget (the “Reimbursement Ratio”). Tenant shall pay all of the costs and expenses incurred in connection with the Tenant Improvements as they become due. Landlord shall not be obligated to reimburse Tenant for costs nor expenses relating to the Tenant Improvements that exceed thirty-three percent (33%) of the TI Allowance prior to Landlord’s approval of the Approved Budget or that exceed the amount of the TI Allowance. Landlord shall not unreasonably withhold, condition or delay its approval of any budget for Tenant Improvements that is proposed by Tenant.