Common use of Initial Alterations Clause in Contracts

Initial Alterations. The parties acknowledge that Tenant shall make alterations and improvements to the Premises following the delivery of the Premises to Tenant in Delivery Condition and prior to commencing business therein (the “Initial Alterations”). The construction of the Initial Alterations shall be governed by Paragraph 9 below, except that, with regard to the Initial Alterations only, the Alteration Operations Fee provided for in Paragraph 9.a. below shall be two and one-half percent (2 ½%) of the hard construction costs of the Initial Alterations, but not more than a total of Two Dollars ($2.00) per rentable square feet of the Premises. The aforementioned Alteration Operations Fee shall also constitute payment for access, elevator usage and loading docks during normal construction hours, and water and electricity for the customary construction of the Initial Alterations. The general contractor selected by Tenant to construct the Initial Alterations, and reasonably approved by Landlord pursuant to Paragraph 9.a. below, is referred to hereinafter as “Tenant’s Contractor.” Without limitation of any provision herein, the Initial Alterations shall include the installation of sub-meters for the measurement of electricity consumed at the Premises. In no event shall Tenant or Tenant’s Contractor be given access to the Premises for purposes of constructing the Initial Alterations until the plans therefor have been approved by Landlord and Tenant and Tenant has delivered to Landlord the insurance certificates required by Landlord in connection with the work (as required in the first sentence of the third grammatical paragraph of Paragraph 9.a. below) and required under Paragraph 15 below. If Landlord is prepared to deliver the Premises to Tenant, but Tenant is not given access to the Premises for the purposes of constructing the Initial Alterations because the conditions of the immediately preceding sentence have not been satisfied, then for purposes of Paragraph 3.b. above, Landlord shall be deemed to have delivered the Premises to Tenant in Delivery Condition on the date that Landlord was prepared to so deliver the Premises to Tenant, notwithstanding the fact that Tenant and Tenant’s Contractor are not permitted access for purposes of construction until the aforementioned conditions are satisfied.

Initial Alterations. The parties acknowledge that Promptly following the Delivery Date (as defined in Paragraph 3.b. above), Tenant shall make commence construction of the alterations and improvements Tenant desires to make in the Premises following the delivery of the Premises to Tenant in Delivery Condition and prior to commencing business therein Tenant’s initial occupancy (the “Initial Alterations”). The construction of the Initial Alterations shall be governed by Paragraph 9 below, except that, with regard to the Initial Alterations only, the Alteration Operations Fee provided for in Paragraph 9.a. below shall be two and one-half percent (2 ½%) a fixed amount of the hard construction costs of the Initial Alterations, but not more than a total of Two Fifty Four Thousand Nine Hundred Dollars ($2.00) per rentable square feet of the Premises. The aforementioned Alteration Operations Fee 54,900.00), which amount shall also constitute payment for access, elevator usage and during Business Hours, use of loading docks during normal construction hours, Business Hours and water and electricity utilities for the customary construction of the Initial Alterations. The general contractor selected by Tenant to construct the Initial Alterations, and reasonably approved by Landlord pursuant to Paragraph 9.a. below, is referred to hereinafter as “Tenant’s Contractor.” Without limitation of any provision herein, the Initial Alterations shall include the installation of sub-meters for the measurement of electricity consumed at the Premises. In no event shall Tenant or Tenant’s Contractor be given access to the Premises for purposes commencement of constructing construction of the Initial Alterations until the plans therefor have been approved by Landlord and Tenant pursuant to the terms hereof, and Tenant has delivered to Landlord the insurance certificates required by Landlord in connection with the work (as required in the first sentence of the third grammatical paragraph of Paragraph 9.a. below) and required under Paragraph 15 below. If Landlord is prepared to deliver the Premises to TenantTenant in Delivery Condition, but Tenant is not given access to the Premises for the purposes of constructing the Initial Alterations because the conditions of the immediately preceding sentence have not been satisfied, then for purposes of Paragraph Paragraphs 2.b. and 3.b. above, Landlord shall be deemed to have delivered the Premises to Tenant in Delivery Condition on the date that Landlord was prepared to so deliver the Premises to Tenant, notwithstanding the fact that Tenant and Tenant’s Contractor are not permitted access for purposes of to commence construction until the aforementioned conditions are satisfied.

Initial Alterations. The parties acknowledge that Tenant A. Except as provided in Paragraph 42 below, Landlord shall not be required to make alterations and any alterations, additions or improvements to the Premises following the delivery of and the Premises shall be leased to Tenant in Delivery Condition an "as-is" condition. B. Tenant, at its expense, shall construct, furnish or install all improvements, alterations, additions, equipment or fixtures within the Premises that are necessary for Tenant's occupancy C. If Tenant is not in default under this Lease and prior to commencing business therein (the “Initial Alterations”). The construction of the Initial Alterations Lease is in full force and effect, then Landlord, at Tenant's request, shall be governed by Paragraph 9 below, except that, with regard reimburse Tenant up to the Initial Alterations only, the Alteration Operations Fee provided for in Paragraph 9.a. below shall be two and onesum of Eighty-half percent (2 ½%) of the hard construction costs of the Initial Alterations, but not more than a total of Nine Thousand Two Hundred Seventy Dollars ($2.0089,270.00) per rentable square feet ("Landlord's Allowance") for the cost of Tenant's Work, in accordance with the following procedures: (i) Prior to commencing Tenant's Work, Tenant shall submit to Landlord a copy of Tenant's contract with Tenant's general contractor showing the total cost of Tenant's Work. (ii) During the course of construction of Tenant's Work, Landlord shall disburse to Tenant on account of Landlord's Allowance a fraction of each progress payment due to Landlord's general contractor, which fraction shall have as its numerator Sixty-Nine Thousand Two Hundred Seventy Dollars ($69,270.00) and shall have as its denominator the total cost of construction of Tenant's Work as shown in the contract previously submitted to Landlord; provided, however, that Landlord shall not be required to disburse to Tenant more than Sixty-Nine Thousand Two Hundred Seventy Dollars ($69,270.00) until all of the Premisesconditions set forth in Clause (iii) below have been satisfied. The aforementioned Alteration Operations Fee Tenant shall also constitute pay the balance of each progress payment due to Tenant's general contractor. (iii) When Tenant's Work has been completed and Tenant is open for accessbusiness, elevator usage and loading docks during normal construction hours, and water and electricity for then Landlord shall reimburse Tenant up to the customary construction sum of the Initial Alterations. The general contractor selected by Tenant to construct the Initial Alterations, and reasonably approved Landlord's Allowance less amounts previously disbursed by Landlord pursuant to Paragraph 9.a. below, is referred to hereinafter as “Tenant’s Contractor.” Without limitation of any provision herein, the Initial Alterations shall include the installation of sub-meters Clause (ii) above for the measurement costs of electricity consumed at Tenant's Work provided that Tenant shall furnish to Landlord the Premises. In no event shall Tenant or following: (a) A statement from Tenant’s Contractor be given access to the Premises for purposes of constructing the Initial Alterations until 's architect certifying that Tenant's Work has been completed in compliance with the plans therefor have been and specifications approved by Landlord and in compliance with all applicable governmental laws, codes, regulations and ordinances; (b) An itemized statement of such costs, certified as correct by Tenant; (c) Copies of paid invoices evidencing that all work for which reimbursement is requested has been paid for in full by Tenant; (d) Unconditional mechanic's lien releases from Tenant's general contractors, suppliers, materialmen and all subcontractors who have done work or supplied materials to the Premises; and (e) An estoppel certificate executed by Tenant and Tenant has delivered to Landlord the insurance certificates required by Landlord as described in connection with the work (as required in the first sentence Paragraph 28 of the third grammatical paragraph Lease. D. All cost of Paragraph 9.a. below) and required under Paragraph 15 below. If Landlord is prepared to deliver the Premises to Tenant, but Tenant is not given access to the Premises for the purposes 's Work in excess of constructing the Initial Alterations because the conditions of the immediately preceding sentence have not been satisfied, then for purposes of Paragraph 3.b. above, Landlord Landlord's Allowance shall be deemed to have delivered the Premises to Tenant in Delivery Condition on the date that Landlord was prepared to so deliver the Premises to paid solely by Tenant, notwithstanding the fact that Tenant and Tenant’s Contractor are not permitted access for purposes of construction until the aforementioned conditions are satisfied.

Initial Alterations. The parties acknowledge that Tenant shall intends to make alterations certain Alterations, additions and improvements to the Premises following the delivery of the Premises to Tenant in Delivery Condition and prior to commencing business therein (the “Initial Alterations”)) to the Additional Premises after the Additional Premises Commencement Date to make the same more suitable for Tenant’s occupancy during the balance of the Lease term. The construction of the Initial Alterations shall be subject to Landlord’s approval in accordance with Paragraph 9 of the Lease and otherwise governed by Paragraph 9 belowof the Lease, except thatas expressly set forth in this Amendment, with regard to the Initial Alterations only, and except further that the Alteration Operations Fee provided for set forth in Paragraph 9.a. below 9 of the Lease shall be two calculated for the Initial Alterations using a percentage factor of one and one-half percent (2 ½%1 1/2%) of the hard construction costs of the Initial Alterations, but not more rather than a total of Two Dollars five percent ($2.00) per rentable square feet of the Premises. The aforementioned Alteration Operations Fee shall also constitute payment for access, elevator usage and loading docks during normal construction hours, and water and electricity for the customary construction of the Initial Alterations5%). The general contractor selected by Tenant and approved by Landlord in accordance with Paragraph 9 of the Lease to construct the Initial Alterations, and reasonably approved by Landlord pursuant to Paragraph 9.a. below, Alterations is referred to hereinafter as “TenantContractor”. If so requested by Tenant in writing at the time Tenant requests Landlord’s Contractor.” Without limitation approval of any provision hereinthe Initial Alterations, and provided that Tenant shall expressly reference this Paragraph 5 of this Amendment, Landlord shall advise Tenant in writing at the time of Landlord’s approval of the Initial Alterations shall include as to whether Landlord will waive its right pursuant to Paragraph 9.b. of the installation of sub-meters for the measurement of electricity consumed at the Premises. In no event shall Lease to require that Tenant or Tenant’s Contractor be given access to the Premises for purposes of constructing remove the Initial Alterations until from the plans therefor have been approved by Landlord and Tenant and Tenant has delivered to Landlord Premises at the insurance certificates required by Landlord in connection with the work (as required in the first sentence expiration or sooner termination of the third grammatical paragraph of Paragraph 9.a. below) Lease and required under Paragraph 15 below. If Landlord is prepared to deliver restore the Additional Premises to Tenanttheir prior condition, but Tenant is not given access ordinary wear and tear excepted. Landlord’s failure to expressly waive such requirement in writing shall preserve Landlord’s right to exercise the Premises for the purposes of constructing foregoing election as respects the Initial Alterations because the conditions of the immediately preceding sentence have not been satisfied, then for purposes of Paragraph 3.b. above, Landlord shall be deemed to have delivered the Premises to Tenant in Delivery Condition on the date that Landlord was prepared to so deliver the Premises to Tenant, notwithstanding the fact that Tenant and Tenant’s Contractor are not permitted access for purposes of construction until the aforementioned conditions are satisfiedAlterations.

Initial Alterations. The parties acknowledge that Tenant shall make alterations and improvements to Between the Premises following the delivery of the Premises to Tenant in Delivery Condition and prior to commencing business therein (the “Initial Alterations”). The construction of the Initial Alterations shall be governed by Paragraph 9 below, except that, with regard to the Initial Alterations only, the Alteration Operations Fee provided for in Paragraph 9.a. below shall be two and one-half percent (2 ½%) of the hard construction costs of the Initial Alterations, but not more than a total of Two Dollars ($2.00) per rentable square feet of the Premises. The aforementioned Alteration Operations Fee shall also constitute payment for access, elevator usage and loading docks during normal construction hours, and water and electricity for the customary construction of the Initial Alterations. The general contractor selected by Tenant to construct the Initial Alterations, and reasonably approved by Landlord pursuant to Paragraph 9.a. below, date this Lease is referred to hereinafter as “Tenant’s Contractor.” Without limitation of any provision herein, the Initial Alterations shall include the installation of sub-meters for the measurement of electricity consumed at the Premises. In no event shall Tenant or Tenant’s Contractor be given access to the Premises for purposes of constructing the Initial Alterations until the plans therefor have been approved executed by Landlord and Tenant and May 31, 2000, Tenant, at Tenant's sole cost and expense, shall make such initial tenant improvements in the Premises as Tenant has delivered deems necessary or advisable, subject to Landlord's prior written approval of such improvements, which approval shall not be unreasonably withheld. Tenant shall prepare and submit to Landlord for Landlord's approval plans and specifications for the insurance certificates required by Landlord initial tenant improvements, which approval shall not be unreasonably withheld. All initial tenant improvements shall be made in connection with accordance with, and comply and otherwise be subject to, the work (as required in the first sentence provisions of the third grammatical paragraph of Paragraph 9.aLease (except Section 6. below1) and required under Paragraph 15 belowshall in all respects comply with all laws related thereto. If As an inducement to Tenant to make the initial tenant improvements, Landlord is prepared to deliver the Premises shall provide to Tenant, but in accordance with this paragraph, a tenant improvement allowance in the amount of up to $45,234 to reimburse Tenant for the costs of the initial tenant improvements. Provided Tenant is not given access to in default under this Lease, the Premises tenant improvement allowance (or so much thereof as may have been utilized by Tenant between the date this Lease is executed by Landlord and Tenant and May 31, 2000 as evidenced by bills marked paid for the purposes initial tenant improvements submitted to Landlord) shall be paid by Landlord to Tenant within thirty (30) days after the date Tenant provides to Landlord final mechanics' lien waivers for all contractors, subcontractors and material suppliers who have established lien rights and bills marked paid for all of constructing Tenant's initial tenant improvements in the Initial Alterations because the conditions of the immediately preceding sentence have not been satisfiedPremises; provided, then for purposes of Paragraph 3.b. abovehowever, Landlord shall be deemed have no obligation to have delivered provide Tenant any amount of the tenant improvement allowance that has not been disbursed to Tenant pursuant to the preceding by June 30, 2000. EXHIBIT "C" attached to and made a part of the lease bearing the lease reference date of April 22, 1999, by and between CALWEST INDUSTRLKL PROPERTIES, LLC, a California limited liability company, as Landlord, and HMT TECHNOLOGY CORPORATION, as Tenant, for the Premises to Tenant in Delivery Condition on the date that Landlord was prepared to so deliver the Premises to Tenant, notwithstanding the fact that Tenant and Tenant’s Contractor are not permitted access for purposes of construction until the aforementioned conditions are satisfiedcommonly known as Mission Industrial Park.

Initial Alterations. The parties acknowledge Lessor's Work -------------- Lessee shall accept the Premises in its "as is" condition as of the Commencement Date. It is expressly understood and agreed that Tenant Lessor shall make alterations and improvements have no responsibility or obligation to perform any work with respect to the shell, floor, entrance, mezzanine, walls, ceiling, lighting fixtures, HVAC system, toilet room, utilities systems, or otherwise with respect to the Premises following except as set forth in Paragraph 2.2 of this Lease except as set forth below. Lessee Improvement Allowance ---------------------------- Lessor shall obtain three (3) bids to carpet and repaint the delivery existing office areas. The amount of the Premises lowest bid shall be provided to Tenant Lessee in Delivery Condition and prior to commencing business therein the form of a Lessee Improvement Allowance (the “Initial Alterations”"Allowance"). The Lessee shall be responsible, at Lessee's sole cost and expense, to complete said work during the construction of the Initial Alterations its additional offices. Lessor shall be governed by Paragraph 9 below, except that, also provide Lessee with regard an additional allowance ("Amortized Improvement Allowance") up to the Initial Alterations only, the Alteration Operations Fee provided for in Paragraph 9.a. below shall be two Fifty Thousand and one-half percent (2 ½%) of the hard construction costs of the Initial Alterations, but not more than a total of Two no/100 Dollars ($2.0050,000.00) per rentable square feet for Lessee's construction of improvements in the Premises. The aforementioned Alteration Operations Fee Amortized Improvement Allowance shall also constitute payment for accessbe amortized over the Initial Term of the Lease at an interest rate of Ten percent (10%) per annum and paid as additional rent each month, elevator usage and loading docks during normal construction hoursalong with, and water in addition to Base Rent, throughout the Initial Lease Term. Lessee shall be responsible for any cost of improvements beyond the total of the Allowance and electricity the Amortized Improvement Allowance. The total amount of the Amortized Improvement Allowance shall be established upon completion of the improvements and shall be specified and mutually agreed upon in a Commencement Date Memorandum, attached hereto as Exhibit F. The Allowance and the Amortized Improvement Allowance shall be used only for the customary cost of construction and installation of the Initial Alterations. The general contractor selected by Tenant to construct the Initial Alterationsimprovements, including all labor, materials, permits, fees, architectural and reasonably approved by Landlord pursuant to Paragraph 9.a. below, is referred to hereinafter as “Tenant’s Contractor.” Without limitation of any provision herein, the Initial Alterations shall include the installation of sub-meters for the measurement of electricity consumed at the Premisesengineering fees and costs. In no event shall Tenant the Allowance or Tenant’s Contractor the Amortized Improvement Allowance be given access used for telephone/data cabling, furniture, fixtures, equipment, personal property, moving expenses, or as a credit against rent. Payment for Lessee Improvements -------------------------------- Lessee shall deliver to Lessor, invoices, and unconditional lien releases or other documentation ("Construction Invoices"), all reasonably satisfactory to Lessor, pertaining to the cost of the Improvements. Lessee shall, as hereinafter provided, receive the Allowance, and or the Amortized Improvement Allowance to reimburse Lessee, to the extent of costs for Improvements paid by Lessee. The Allowance, and or the Amortized Improvement Allowance shall be payable by Lessor to Lessee within thirty (30) days after (1) completion of the Improvements, (2) Lessee has delivered to Lessor reasonable documentation evidencing payment ("Lessee Payment") made by Lessee to its contractors in connection with such Improvement work, together with unconditional lien releases reasonably satisfactory to Lessor, and (3) Lessee has opened for business, but in no event any later than six months after the Commencement Date of this Lease subject to 1 & 2 above. Notwithstanding any contrary provisions herein, payment by Lessor for such Improvement work shall not be due until Lessor has determined that (a) there are no applicable or claimed mechanic's liens, stop notices or the like, and (b) the Allowance, and or the Amortized Improvement Allowance are applied solely to Improvements depicted in the approved plans; provided that Lessor's determination of the foregoing shall be completed with thirty (30) days following completion of the Improvements. All other improvements to the Premises shall be at Lessee's sole cost and expense. Lessee's Work -------------- In the event Lessee does other improvements, Lessee agrees to furnish Lessor with two complete sets of Lessee's improvement plans and specifications for purposes Lessor's written approval, which approval may be withheld or denied, in Lessor's sole and absolute discretion, prior to the submission of constructing said plans to any and all governmental authorities and prior to the Initial Alterations commencement of any improvement work. The plans shall be submitted to Lessor complete with all information required for Lessee's submission to the Department of Building and Safety for the City of Los Angeles for plan check and issuance of all required permits. The plans shall include mechanical and electrical drawings showing the location of partitions, ceiling plans including light fixtures, doors, wall finishes and floor coverings, and Lessee's special requirements, if any. The plans shall also include elevations of all storefront appearances, color board(s) indicating design finish selections and a floorplan indicating the placement of Lessee's fixtures. Any such special requirements shall conform to all applicable building codes, regulations and ordinances. EXHIBIT B - WORK LETTER (continued) Lessee's Work (Continued) The Plans shall be approved or disapproved by Lessor within five (5) business days after Lessor's receipt thereof; provided that failure of Lessor to respond within such five (5) business day period shall not be deemed approval. If Lessor disapproves the Plans, or any portion thereof, Lessor shall promptly notify Lessee of the revisions which Lessor requires in order to obtain Lessor's approval. Lessee shall, within five (5) business days from Lessor's disapproval, submit to Lessor plans and specifications incorporating the revisions required by Lessor. Said revisions shall be subject to Lessor's approval, which approval shall not be unreasonably withheld or delayed. The preceding process shall continue until the plans therefor Plans have been approved by Landlord and Tenant and Tenant has delivered to Landlord the insurance certificates required by Landlord in connection with the work (as required in the first sentence of the third grammatical paragraph of Paragraph 9.a. below) and required under Paragraph 15 below. If Landlord is prepared to deliver the Premises to Tenant, but Tenant is not given access to the Premises for the purposes of constructing the Initial Alterations because the conditions of the immediately preceding sentence have not been satisfied, then for purposes of Paragraph 3.b. above, Landlord shall be deemed to have delivered the Premises to Tenant in Delivery Condition on the date that Landlord was prepared to so deliver the Premises to Tenant, notwithstanding the fact that Tenant and Tenant’s Contractor are not permitted access for purposes of construction until the aforementioned conditions are satisfiedapproved.