Common use of Payment for Tenant Improvements Clause in Contracts

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 amortized over the lesser of the next seven (7) years of the Lease Term or the remainder of the Lease Term.

Payment for Tenant Improvements. Pursuant to Exhibit Tenant shall receive from ------------------------------- Landlord an allowance ("CAllowance") of Thirty Six and 40/100 Dollars ($36.40) per net rentable square foot for the first 73,500 of net rentable area leased by Tenant hereunder, and Thirty One and 20/100 Dollars ($31.20) per net rentable square foot for all space in excess of 73,500 square feet of net rentable area leased by Tenant hereunder, all as a credit against the Tenant Improvement work to be performed or paid as follows: (i) If the Initial Premises (as defined below) includes partial floors and Tenant wishes to finish the service areas (such as the computer room and mail room) so as to be able to service the Building when it is fully occupied, Landlord will cause such service areas to be fully finished by the Commencement Date, and Landlord shall pay the full share of the Allowance allocable to such service areas. Rent and Additional Rent on such service areas shall be as set forth in Section 2(d) of Exhibit C attached hereto. (ii) The Allowance may be applied to all costs of design, architectural, engineering and construction fees; provided the Allowance allocable to a phase of the Premises upon which construction has not begun shall not be paid until commencement of Tenant Improvements construction on such phase. The Allowance shall be paid by Landlord upon receipt of invoices for work actually performed or materials supplied. (iii) Any allocable portion of the Tenant Improvements. Tenant may obtain a loan for all or Allowance not used with respect to a portion of the amount expended for Premises shall be paid to Tenant upon demand or applied to the next phase of the Tenant Improvements, which loan will not be secured by the Leased Premises or . (iv) All costs of designing and constructing the Tenant Improvements in any mannerexcess of the Allowance shall be borne solely by Tenant. If the budgeted cost of designing or constructing the Tenant obtains a loanImprovements exceeds the Allowance, all payments for the Tenant Improvements shall be shared by Landlord will pay all applicable loan origination points and/or financing acquisition fees (not exceeding two and one half percent (2-1/2%) Tenant in proportion to their estimated sharing of the loan amount) and reasonable and customary total 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 Landlord may adjust that event sharing ratio from time to time if the cost of completing the Tenant Improvements has increased pursuant to change orders approved by Landlord would pay the principal amount to and Tenant. Such amounts shall be amortized to paid by Landlord and Tenant on a monthly basis no later than the same date when required under the TI Payment is made. The first $5 per useable square foot of construction contract for the excess would be amortized over the next five (5) years of the Lease Term and the remainder would be amortized over the lesser of the next seven (7) years of the Lease Term or the remainder of the Lease TermTenant Improvements.

Payment for Tenant Improvements. Pursuant to Exhibit Tenant shall receive from ------------------------------- Landlord an allowance ("CAllowance", ) of Thirty Five Dollars ($35.00) per square foot of net rentable area in the Premises as a credit against the Tenant Improvement work to be performed or paid as follows: (i) If the Initial Premises (as defined below) includes partial floors and Tenant wishes to finish the service areas (such as the computer room and mail room) so as to be able to service the Building when it is fully occupied, and provided such service areas are not on Floor 2 of the Building, Landlord will cause such service areas to be fully finished by the Commencement Date, and Landlord shall pay the full share of the Allowance allocable to such service areas. Rent and Additional Rent on such service areas shall be as set forth in Section 2(d) of Exhibit C attached hereto. (ii) The Allowance may be applied to all costs of design, architectural, engineering and construction fees; provided the Allowance allocable to a phase of the Premises upon which construction has not begun shall not be paid until commencement of Tenant Improvements construction on such phase. The Allowance shall be paid by Landlord upon receipt of invoices for work actually performed or materials supplied. (iii) Any allocable portion of the Tenant Improvements. Tenant may obtain a loan for all or Allowance not used with respect to a portion of the amount expended for Premises shall be paid to Tenant upon demand or applied to the next phase of the Tenant Improvements, which loan will not be secured by the Leased Premises or . (iv) All costs of designing and constructing the Tenant Improvements in any mannerexcess of the Allowance shall be borne solely by Tenant. If the budgeted cost of designing or constructing the Tenant obtains a loanImprovements exceeds the Allowance, all payments for the Tenant Improvements shall be shared by Landlord will pay all applicable loan origination points and/or financing acquisition fees (not exceeding two and one half percent (2-1/2%) Tenant in proportion to their estimated sharing of the loan amount) and reasonable and customary total 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 Landlord may adjust that event sharing ratio from time to time if the cost of completing the Tenant Improvements has increased pursuant to change orders approved by Landlord would pay the principal amount to and Tenant. Such amounts shall be amortized to paid by Landlord and Tenant on a monthly basis no later than the same date when required under the TI Payment is made. The first $5 per useable square foot of construction contract for the excess would be amortized over the next five (5) years of the Lease Term and the remainder would be amortized over the lesser of the next seven (7) years of the Lease Term or the remainder of the Lease TermTenant Improvements.