Common use of Excess Tenant Improvements Clause in Contracts

Excess Tenant Improvements. Landlord and Tenant acknowledge that the Projected Total Project Cost has been determined based on an expectation that twenty percent (20%) of the Building would be improved with “fixed wall” Tenant Improvements. Landlord and Tenant expect that, in fact, the Tenant Improvements will be substantially all “fixed wall.” Furthermore, the Projected Total Cost was not expected to include the cost of “side lights” installed in office demising walls located next to the doors it offices in the Building, although it is now expected that “side lights” will be installed next to each office door in the Building. The construction of these excess Tenant Improvements involves expenses to Landlord which have not been included in the Projected Total Project Cost and will, therefore, be treated separately from the calculation of Annual Rent. Landlord and Tenant have agreed that Landlord will incur Eight Hundred Sixty Thousand Dollars ($860,000) in expense in the construction of the additional “fixed walls” and that Landlord will incur One Hundred Twelve Thousand Dollars ($112,000) in expense in the installation of the “side lights.” The additional expenses associated with these specific excess Tenant Improvements shall be repaid to Landlord through the payment by Tenant of Additional Rent payable, on a monthly basis throughout the Initial Term, in an amount equal to Fourteen Thousand Ninety Two Dollars ($14,092). Such amount shall not be (i) subject to increases pursuant to Section 2.5 of this Lease, nor (ii) included in the determination of Option Term Annual Rent, nor (iii) considered a Tenant Change hereunder. In lieu of paying the Additional Rent described above, Tenant may elect, in a writing delivered to Landlord on or before June 30, 1995, to pay to Landlord the Nine Hundred Seventy Two Thousand Dollars ($972,000) cost of the excess Tenant Improvements, in a lump sum cash payment, which, if Tenant makes such election, shall be due and payable from Tenant, as Additional Rent, to Landlord within five (5) days after Landlord’s written demand therefor. It is Landlord’s expectation that these funds will be required at the time of the recordation of the construction loan for the Building.

Excess Tenant Improvements. If the construction costs exceed the TIA -------------------------- of TWENTY-FOUR AND 00/100 DOLLARS ($24.00) per rentable square foot, Landlord and Tenant acknowledge that agrees to pay for same, up to an additional FIVE AND 00/100 DOLLARS ($5.00) per rentable square foot (the Projected Total Project Cost has been determined based on an expectation that twenty percent (20%"Excess TIA") of but only if the Building would be improved with “fixed wall” Tenant Improvements. Landlord and Tenant expect that, in fact, the Tenant Improvements will be substantially all “fixed wall.” Furthermore, the Projected Total Cost was not expected costs are physical improvements to include the cost of “side lights” installed in office demising walls located next to the doors it offices in the Building, although it is now expected that “side lights” will be installed next to each office door in or are part of the Buildinginstallation, wiring or cabling of (but not the purchase of) the Tenant's trade fixtures, furnishings or equipment. The construction of these excess Tenant Improvements involves expenses to Landlord which have not been included in the Projected Total Project Cost and will, therefore, be treated separately from the calculation of Annual Rent. Landlord and Tenant have agreed that Landlord will incur Eight Hundred Sixty Thousand Dollars ($860,000) in expense in the construction of the additional “fixed walls” and that Landlord will incur One Hundred Twelve Thousand Dollars ($112,000) in expense in the installation of the “side lights.” The additional expenses associated with these specific excess Tenant Improvements Excess TIA shall be repaid to Landlord through the payment by Tenant to Landlord, plus interest thereon at the rate of Additional Rent payablethirteen percent (13%). As soon as the Excess TIA is calculated, Landlord shall send a notice thereof to Tenant. Interest shall accrue on such Excess TIA from the date the Excess TIA is actually paid by the Landlord for the construction costs, regardless of when the notice thereof is provided to Tenant; provided, however, Tenant may, at Tenant's option pay the Excess TIA to Landlord, in full, within ten (10) days after receipt of Landlord's notice, in which event no interest shall accrue or be payable with respect to the Excess TIA. In the event Tenant does not so pay the Excess TIA as a lump sum payment, Tenant agrees to pay, on a monthly basis throughout the Initial Termfirst (1st) day of each and every month, starting with the first (1st) day of the calendar month after the calendar month in which the Commencement Date falls, an amount equal to Fourteen Thousand Ninety Two Dollars ($14,092)the Amortized Excess TIA. Such amount The "Amortized Excess TIA" shall not be (i) subject to increases pursuant to Section 2.5 mean the total Excess TIA spent by the Landlord, plus the current applicable interest thereon, based on an amortization which will pay all interest and principal thereof on a level payment amortization by the end of the initial term of this Lease. After the initial establishment of the amount of the monthly payment necessary to amortize the Excess TIA, nor (ii) included in Landlord shall have no further obligation to ▇▇▇▇ Tenant therefor, and Tenant shall make such monthly installments, on the determination of Option Term Annual Rentsame day as base rent is due, nor (iii) considered a Tenant Change hereunderwithout further notice. In lieu of paying the Additional Rent described above, Tenant may elect, in a writing delivered to Landlord on or before June 30, 1995, Failure to pay to Landlord the Nine Hundred Seventy Two Thousand Dollars ($972,000) cost same shall constitute a default of the excess Tenant Improvements, in a lump sum cash payment, which, if Tenant makes such election, shall be due and payable from Tenant, as Additional Rent, to Landlord within five (5) days after Landlord’s written demand therefor. It is Landlord’s expectation that these funds will be required at the time of the recordation of the construction loan for the BuildingLease.