Payment for Tenant Improvements Sample Clauses
The Payment for Tenant Improvements clause outlines the landlord's or tenant's obligations regarding the funding and reimbursement for modifications or upgrades made to the leased premises. Typically, this clause specifies the types of improvements covered, the process for submitting costs or invoices, and any limits or conditions on payment, such as requiring prior approval or setting a maximum allowance. Its core function is to clearly allocate financial responsibility for tenant improvements, thereby preventing disputes over who pays for alterations and ensuring both parties understand their obligations.
POPULAR SAMPLE Copied 8 times
Payment for Tenant Improvements. As used herein, the term “Application for Payment” shall mean, collectively, (A) a request for payment of the General Contractor approved by Landlord, in the appropriate AIA form or other form reasonably approved by Landlord showing the schedule, by trade, of percentage of completion of the Tenant Improvements, and detailing the portion of the Tenant Improvements completed and the portion not completed, (B) copies of invoices for which payment is sought through the subject disbursement; and (C) an executed partial lien release from the General Contractor with respect to the work for which payment is sought in connection with the Tenant Improvements. In Landlord’s sole discretion, Landlord may withhold from the amounts paid to the General Contractor a ten percent (10%) retention (the aggregate amount of any such retentions to be known as the “Retainage”), which Retainage shall be paid to the General Contractor in accordance with the terms of the construction contract between Landlord and the General Contractor. As described in Section 4 (a) and Section 6 of this Exhibit F, Tenant shall have paid to Landlord any Excess Costs or Change Order Excess Costs prior to commencement of such work, and as such, those amounts shall be applied first against any Application for Payment. Thereafter, Landlord shall pay to the General Contractor the remaining balance of the Application for Payment (the “Balance”) less applicable Retainage, and Tenant shall pay to Landlord ten percent (10%) of the Balance within five (5) business days of receipt of a copy of the Application for Payment. Notwithstanding the foregoing, (i) upon the final Application for Payment, within five (5) business days Tenant shall pay to Landlord the full remaining balance of Tenant’s Contribution; and (ii) Landlord shall be responsible for Construction Costs in excess of Tenant’s Contribution, Landlord’s Contribution, and Excess Costs and Change Order Excess Costs.
Payment for Tenant Improvements. The Tenant Improvement Costs shall be paid solely by Tenant as follows:
Payment for Tenant Improvements. Within five (5) business days after the Budget is approved by Lessor and Lessee, Lessee shall deposit Lessee's share of the amount budgeted for the entire Tenant Improvement construction schedule (together with the cost of any Tenant Improvements already made) in an interest bearing escrow account with Lessor's Construction Lender the interest being credited to Lessee, provided that, if Lessor's Construction Lender fails to agree in writing that, upon any foreclosure, Lender or any other successor in interest to Lessor, will either apply the deposited amount in accordance with the provisions of this Lease or return same to Lessee, said escrow account shall be opened at an institution, other than Lessor's Construction Lender, pursuant to joint escrow instructions of Lessor and Lessee providing for disbursements in accordance with this Lease. Lessee's share is the portion of the budgeted amount not paid from the Tenant Improvement Allowance as described in the following sentence. Said construction lender (or other institutional escrow holder, as the case may be) shall issue payments from said account pursuant to the construction contract for the Tenant Improvements with a portion of each payment being taken from the Tenant Improvement Allowance (in the same ratio as the Tenant Improvement Allowance bears to the entire Budget total) and the balance being paid from Lessee's deposit, until the Tenant Improvement Allowance is exhausted, whereupon any remaining payments shall be made 100% by Lessee. Lessor shall manage the construction of the Tenant Improvements for a supervision fee of 2.5% of the Budget (as the same may change by agreement of the parties) due and payable in nine equal monthly installments beginning on the first day of the calendar month following the calendar month in which the Budget is first approved.
Payment for Tenant Improvements. Landlord shall pay, pursuant to the terms and conditions of the Work Letter Agreement, the cost and expense of Tenant Improvements in an amount not to exceed the Tenant Improvement Allowance. The cost and expense of any Tenant Improvements in excess of the Tenant Improvement Allowance, shall be paid by the Tenant in accordance with the provisions of the Work Letter Agreement.
Payment for Tenant Improvements. Pursuant to Exhibit "C", the Tenant will pay for the Tenant Improvements. Tenant may obtain a loan for all or a portion of the amount expended for the Tenant Improvements, which loan will not be secured by the Leased Premises or the Tenant Improvements in any manner. If Tenant obtains a loan, Landlord will pay all applicable loan origination points and/or financing acquisition fees (not exceeding two and one half percent (2-1/2%) of the loan amount) and reasonable and customary costs of obtaining the loan for typical commercial bank financing, limited, however, to a loan for the TI Payment amount described below. Within thirty (30) days after the earlier of (a) Tenant meets the annual targets for gross revenue and gross margins projected for year 2000 in accordance with the pro forma budget attached 35 42 hereto as Exhibit "I" over any four (4) consecutive calendar quarters, or (b) Tenant has timely paid all Rent and other amounts due hereunder for a period of five (5) full calendar years, or (c) Landlord's lender otherwise agrees to disburse the TI Payment described below, then Landlord will pay an amount (the "TI Payment") to Tenant equal to (i) the amount expended by Tenant for Tenant Improvements, not exceeding $25.00 per useable square foot of the Leased Premises, plus interest from the date such amounts were actually disbursed by Tenant at a rate of one and one half percent (1-1/2%) in excess of Bank One Arizona's publicly announced Prime Rate in effect from time to time, not exceeding eleven percent (11%) per annum (the "Interest Rate"), less (ii) an amount equal to the rent saved because of the $2.25 per square foot discount described in Section 1(k) of this Lease together with interest on such rent savings at the Interest Rate from the date each such installment thereof would have been due. To the extent Tenant paid more than $25 per useable square foot of the Leased Premises for Tenant Improvements, Tenant may elect to have the excess, but not exceeding $10 per useable foot of the Leased Premises, amortized with 12% interest through Basic Rent increases. Tenant shall advise Landlord of its election to amortize such amount not later than Commencement of the Tenant Improvements. In that event Landlord would pay the principal amount to be amortized to Tenant on the same date when the TI Payment is made. The first $5 per useable square foot of the excess would be amortized over the next five (5) years of the Lease Term and the remainder would be amor...
Payment for Tenant Improvements. The Tenant Improvement Costs shall be paid as follows:
Payment for Tenant Improvements. Lessee shall pay when due, to all third parties involved in the design, permitting, engineering and construction of same, the entire cost of the Tenant Improvements so that construction shall be complete pursuant to the approved construction schedule described in the Work Letter Agreement.
Payment for Tenant Improvements. Within two (2) business days after ------------------------------- the Budget is approved by Lessor and Lessee, Lessee shall deposit Lessee's share of the amount budgeted for the entire Tenant Improvement construction schedule (together with the cost of any Tenant Improvements already made) with Lessor's construction lender to be held in an escrow account. Lessee's share is the portion of the budgeted amount not paid from the Tenant Improvement Allowance as described in the following sentence. Said construction lender shall issue payments from said account pursuant to the construction contract for the Tenant Improvements with a portion of each payment being taken from the Tenant Improvement Allowance (in the same ratio as the Tenant Improvement Allowance bears to the entire Budget total) and the balance being paid from Lessee's deposit, until the Tenant Improvement Allowance is exhausted, whereupon any remaining payments shall be made 100% by Lessee. Lessor shall manage the construction of the Tenant Improvements for a supervision fee of 4% of the Budget (as the same may change by agreement of the parties) due and payable in nine equal monthly installments beginning on the first day of the calendar month following the calendar month in which the Budget is first approved.
Payment for Tenant Improvements. 4.1 All costs and expenses incurred for the construction of the Improvements shall be paid by the Tenant, less credit to the Tenant from the Landlord.
4.2 Any modifications or additions required to the Premises’ life safety systems brought about by final schematic drawings and specifications (such as the addition and/or relocation of demising walls, sprinkler heads, exit lights, emergency lighting, firehorns, or the like) shall be a cost of the Improvements.
4.3 Tenant’s Cost shall be payable as follows:
(a) Tenant shall pay to Landlord prior to the commencement of construction of the improvements, an amount equal to fifty percent (50%) of the Tenant’s Costs (as then estimated by Landlord).
(b) Prior to occupancy of the Premises, Tenant shall pay to Landlord the unpaid balance (as such amount can then be reasonably estimated based on available data) of Tenant’s Costs, plus any approved modifications thereto.
4.4 The amounts payable hereunder shall constitute additional rent due under the Lease and shall be due at the time specified herein. Tenant’s failure to make any such payments when due shall constitute a default under the Lease, entitling Landlord to all of its remedies thereunder.
Payment for Tenant Improvements. Within ten (10) business days after the Budget is approved by Lessor and Lessee, Lessee shall deposit the entire amount (together with the cost of any Tenant Improvements already made) with Lessor’s construction lender to be held in an interest-bearing escrow account with interest being credited to Lessee. Said construction lender shall issue payments from said account pursuant to the construction contract for the Tenant Improvements, remaining payments shall be made 100% by Lessee. Lessor shall manage the construction of the Tenant Improvements for a supervision fee equal to four percent (4%) of the Budget (as the same may change by agreement of the parties) due and payable in nine equal monthly installments beginning on the first day of the calendar month following the calendar month in which the Budget is first approved.