Common use of PAYMENT OF COST OF THE TENANT IMPROVEMENTS Clause in Contracts

PAYMENT OF COST OF THE TENANT IMPROVEMENTS. 6.1 Tenant is entitled to a "Tenant Improvement Allowance" of $30.00 per rentable square foot. Rentable square footage is identified as 29,992 square feet. Such tenant allowance shall be used for: 6.1.1 Payment of the cost of preparing the space plan and final working drawings and specifications including mechanical, electrical, plumbing and structural drawings and of all other aspects of the Tenant Improvement Plans. 6.1.2 The payment of plan check, permit and license fees relating to construction of the Tenant Improvements. 6.1.3 Construction of the Tenant Improvements, including without limitation the following: 6.1.3.1 Installation within the Premises of all partitioning, doors, floor coverings, ceilings, wall coverings and painting, millwork and similar items. 6.1.3.2 All electrical wiring, installation of building standard lighting fixtures, outlets and switches and other electrical work to be installed within the Premises. 6.1.3.3 The furnishing and installation of all duct work, terminal boxes, diffusers and accessories required for the completion of the heating, ventilation and air conditioning systems within the Premises, including the cost of meter and key control for after hours heating, ventilation and air conditioning. 6.1.3.4 Any additional Tenant requirements including but not limited to odor control, special heating, ventilation and air conditioning, noise or vibration control or other special systems. 6.1.3.5 All fire and life safety control systems such as fire walls, halon, fire alarms, including piping, wiring and accessories installed within the Premises, except fire sprinklers. 6.1.3.6 All plumbing, fixtures, pipes and accessories to be installed within the Premises. 6.1.3.7 Testing and inspection costs. 6.1.3.8 Contractor's fees, including but not limited to any fees based on general conditions. 6.1.3.9 All applicable Washington State sales taxes. 6.1.3.10 All demolition and patching of existing walls, doors, relites, electrical, floor covering, lighting, etc. are included in the allowance. Landlord shall bear the cost of abatement of any hazardous materials disturbed as a result of the tenant improvements. 6.2 The cost of each item shall be charged against the Tenant Improvement Allowance. In the event that the cost of installing the Tenant Improvements, as established by the final pricing schedule to be determined by Landlord and Tenant, exceeds the Tenant Improvement Allowance, or if any of the Tenant Improvements are not to be paid out of the Tenant Improvement Allowance, then at Tenant's option, the excess of up to $10.00 per rentable square foot or $299,920 shall be paid by Tenant to Landlord over the term of the lease. This excess of up to $299,920 shall be amortized over the term of the lease at an interest rate of 10%, and tenant shall pay Landlord this monthly amortized amount as additional rent. In the event excess Tenant Improvement costs exceed the Tenant Improvement Allowance and the amount to amortized of $10.00 per rentable square foot, or $299,920, then this excess shall be paid in full by Tenant to Landlord not later than ten (10) days after invoice from Landlord to Tenant for same. The parties acknowledge that Tenant may apply for a sales tax exclusion or abatement available to certain businesses for certain equipment and improvements. Landlord shall reasonably cooperate with Tenant to apply for and implement same if it is available to Tenant. 6.3 Tenant and Landlord acknowledge that additional items have been added to the Definition of Shell and Core (Exhibit C-1). These items are listed in D30, D3020, D50, D5010 I. and are noted by an underscore of the description. Tenant and Landlord shall mutually approve the design and construction costs for these items. Tenant has agreed to reimburse Landlord one-third (1/3) of the total cost for these items (including fees, sales tax, etc.) not later than ten (10) days after receipt of invoice from Landlord to Tenant. 6.4 If, after the Tenant Improvement Plans have been established and the final pricing has occurred, Tenant shall require changes or substitutions to the Tenant Improvement Plans, any additional costs thereof shall be paid by Tenant to Landlord not later than ten (10) days after invoice from Landlord to Tenant for the same. Landlord shall have the right to decline Tenant's request for a change to the Tenant Improvement Plans if such changes are inconsistent with the other provisions of this Agreement or if the change would, in Landlord's opinion, delay completion of the Tenant Improvements beyond the Commencement Date. 6.5 In the event that the cost of the Tenant Improvements increases as set forth in Landlord's final pricing due to the requirements of any governmental agency and such increases exceed any available remaining amount of the Tenant Improvement Allowance, Tenant shall pay Landlord the amount of such increase within ten (10) days after receipt of Landlord's invoice for the same. EXHIBIT B TENANT IMPROVEMENTS WORK LETTER AGREEMENT (Page 3 of 3)

PAYMENT OF COST OF THE TENANT IMPROVEMENTS. 6.1 7.1. Tenant is entitled to a "Tenant Improvement Allowance" of $30.00 22 per rentable square foot. Rentable square footage is identified foot ("RSF" as 29,992 square feetdefined in the Lease), plus $165,000. Such tenant allowance Tenant Allowance shall be used only for: 6.1.1 7.1.1. Payment of the cost of preparing the space plan and final working drawings and specifications specifications, including mechanical, electrical, plumbing and structural drawings and of all other aspects of the Tenant Improvement Plans; provided, however that Landlord shall provide $0.15/RSF allowance to Tenant for the cost of preliminary space plans with respect to the Tenant Improvements. 6.1.2 7.1.2. The payment of plan check, permit and license fees relating to construction of the Tenant Improvements. 6.1.3 7.1.3. Construction of the Tenant Improvements, including without limitation the following: 6.1.3.1 7.1.3.1. Installation within the Premises of all partitioning, doors, floor coverings, ceilings, wall coverings and painting, millwork and similar items. 6.1.3.2 7.1.3.2. All electrical wiring, installation of building standard lighting fixtures, outlets and switches and other electrical work to be installed within the Premises. 6.1.3.3 7.1.3.3. The furnishing and installation of all duct work, terminal boxes, diffusers and accessories required for the completion of the heating, ventilation and air conditioning systems within the Premises, including the cost of meter and key control for after hours after-hour heating, ventilation and air conditioning. 6.1.3.4 7.1.3.4. Any additional Tenant requirements including but not limited to odor control, special heating, ventilation and air conditioning, noise or vibration control or other special systems. 6.1.3.5 7.1.3.5. All fire and life safety control systems such as fire walls, sprinklers, halon, fire alarms, including piping, wiring and accessories installed within the Premises, except fire sprinklers. 6.1.3.6 7.1.3.6. All plumbing, fixtures, pipes and accessories to be installed within the Premises. 6.1.3.7 7.1.3.7. All exterior dock improvements in substantial accordance with those specifications for exterior dock improvements ("Dock Plans"). 7.1.3.8. Installation within the parking garage of a two stop elevator or product lift in substantial accordance with those specifications for parking garage lift ("Lift Plans"). 7.1.3.9. Testing and inspection costs. 6.1.3.8 7.1.3.10. Contractor's fees, including but not limited to any fees based on general conditions. 6.1.3.9 7.1.3.11. All applicable Washington State sales taxes. 6.1.3.10 All demolition 7.2. Retail sales taxes otherwise applicable to portions of construction of the Building Shell and patching of existing walls, doors, relites, electrical, floor covering, lighting, etc. are included in the allowance. Landlord shall bear the cost of abatement of any hazardous materials disturbed Tenant Improvements may be eligible for deferral pursuant to RCW 82.63 and WAC ▇▇▇-▇▇-▇▇▇▇▇ as a result of the tenant improvementsuses intended by Tenant of the Premises. Landlord agrees that in the event Tenant elects to seek such tax deferral, Landlord will cooperate with Tenant's application for the same and shall agree as a part of such application to state that the economic benefit of any such deferral shall be passed to Tenant, provided, however, that: 7.2.1. Under no circumstances shall such application delay commencement of construction of the Building Shell or any other activity contemplated hereunder; 7.2.2. In the event retail sales tax for Building Shell or Tenant Improvements is deferred, and if, for any reason, any part of the retail sales tax so deferred is subsequently required to be paid, Tenant shall promptly pay the same, together with any interest, penalties or other charges that are or become due in connection therewith; and 7.2.3. Tenant shall indemnity and hold Landlord harmless from any and all costs, expenses and claims arising out of or related to any retail sales tax deferral for the Building Shell and Tenant Improvements. The provisions of this Section 7.2 shall survive termination of this Agreement and shall specifically benefit The Quadrant Corporation whether or not The Quadrant Corporation is Landlord under the Lease. 6.2 7.3. The cost of each item shall be charged against the Tenant Improvement Allowance. In the event that the cost of installing the Tenant Improvements, as established by the final pricing schedule to be determined by Landlord and Tenant, exceeds the Tenant Improvement Allowance, or if any of the Tenant Improvements are not to be paid out of the Tenant Improvement Allowance, then at Tenant's option, the excess of up to $10.00 per rentable square foot or $299,920 shall be paid by Tenant to Landlord over the term of the lease. This excess of up to $299,920 shall be amortized over the term of the lease at an interest rate of 10%, and tenant shall pay Landlord this monthly amortized amount as additional rent. In the event excess Tenant Improvement costs exceed the Tenant Improvement Allowance and the amount to amortized of $10.00 per rentable square foot, or $299,920, then this excess shall be paid in full by Tenant to Landlord not later than ten (10) days after invoice from Landlord to Tenant for the same. The parties acknowledge that Tenant may apply for a sales tax exclusion or abatement available to certain businesses for certain equipment and improvements. Landlord shall reasonably cooperate with Tenant to apply for and implement same if it is available to Tenant. 6.3 Tenant and Landlord acknowledge that additional items have been added to the Definition of Shell and Core (Exhibit C-1)7.4. These items are listed in D30, D3020, D50, D5010 I. and are noted by an underscore of the description. Tenant and Landlord shall mutually approve the design and construction costs for these items. Tenant has agreed to reimburse Landlord one-third (1/3) of the total cost for these items (including fees, sales tax, etc.) not later than ten (10) days after receipt of invoice from Landlord to Tenant. 6.4 If, after the Tenant Improvement Plans have been established and the final pricing has occurred, Tenant shall require changes or substitutions to the Tenant Improvement Plans, any additional costs thereof shall be paid first from any Tenant Improvement Allowance savings and second by Tenant to Landlord not later than ten (10) days after invoice from Landlord to Tenant for the same. Landlord shall have the right to decline Tenant's request for a change to the Tenant Improvement Plans if such changes are inconsistent with the other provisions of this Agreement or if the change would, in Landlord's opinion, delay completion of the Tenant Improvements beyond the Commencement Date. 6.5 7.5. In the event that the cost of the Tenant Improvements increases as set forth in Landlord's final pricing due to the requirements of any governmental agency and such increases exceed any available remaining amount of the Tenant Improvement Allowance, Tenant shall pay Landlord the amount of such increase within ten (10) days after receipt of Landlord's invoice for the same. 7.6. EXHIBIT B TENANT IMPROVEMENTS WORK LETTER AGREEMENT (Page 3 Any unused portion of 3)the Tenant Improvement Allowance upon completion of the Tenant Improvements shall be paid by Landlord to Tenant or available to Tenant as a credit against any obligations of Tenant under the Lease, as elected by Tenant.