Allowance for Tenant Work Clause Samples
The Allowance for Tenant Work clause defines the landlord's provision of a specified monetary amount or budget for the tenant to use toward improvements or alterations within the leased premises. Typically, this allowance covers costs such as construction, installation of fixtures, or other modifications necessary for the tenant's business operations, with the tenant responsible for any expenses exceeding the allowance. This clause ensures that tenants can customize the space to suit their needs while clearly delineating financial responsibility, thereby preventing disputes over renovation costs and facilitating a smoother move-in process.
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Allowance for Tenant Work. Prior to the date of this Second Amendment, Tenant has performed certain tenant improvement work (the "TENANT WORK") in the Second Expansion Premises. Landlord shall reimburse Tenant for all or some portion of the total cost to Tenant of all labor, materials, and services supplied in the construction or installment of the Tenant Work, together with all design costs and other fees and expenses properly allocable to the performance of the Tenant Work (Collectively, the "PROJECTS COSTS") through an allowance (the "ALLOWANCE") in an amount of up to $100,000.00. Provided that no default then exists with respect to Tenant's obligation to pay any rent and Tenant is then lawfully in occupancy of the Second Expansion Premises in the routine conduct of its business, Landlord shall pay to Tenant a sum in the amount of the lower of the $100,000.00 or the actual Project Costs within 10 business days after the last to occur of the following: (i) Landlord's building manager's receipt and approval of a statement from Tenant's architect or general contractor (the "SUBSTANTIAL COMPLETION CERTIFICATE") certifying that substantial completion of the Tenant Work has occurred; (ii) Tenant has delivered to Landlord a certificate of occupancy from TOWN OF SALEM for the Second Expansion Premises; (iii) Landlord has received full lien waivers for all of the Tenant Work; and (iv) Tenant has submitted to Landlord a written request for payment of the Allowance. Tenant shall be solely responsible for all Project Costs for the Second Expansion Premises in excess of the Allowance. Project Costs shall not include, and the Allowance shall not be payable with respect to, any overhead or other "internal" costs or expenses of Tenant, any costs or expenses which are not actually paid to third parties unaffiliated with Tenant, or any costs of purchasing, leasing, and/or installing any equipment or other personal property which will not become part of the Second Expansion Premises and the property of Landlord upon installation in the Second Expansion Premises.
Allowance for Tenant Work. Notwithstanding the foregoing, Landlord shall provide an allowance (“Allowance”) of up to $143,273.00 to be used towards: (i) Tenant’s reasonable, direct out-of-pocket costs of designing and performing permanent leasehold improvements, including the “clean room” (and all permanent leasehold improvements associated with the clean room) previously installed by Tenant (“Work”) in the Premises, and (ii) reasonable out-of-pocket costs, if any, paid by Landlord to third parties in connection with the Work. Tenant shall engage its own designers and contractors for the Work as described below, and Landlord shall reimburse Tenant based on Tenant’s submission of a customary tenant’s affidavit respecting the Work, invoices, paid receipts and other reasonable evidence of payment, and the submission of customary architect’s certificates, lien waivers and affidavits of payment, all reasonably satisfactory to Landlord. If Tenant does not use the entire Allowance for the purposes permitted herein, or does not submit the foregoing documentation to Landlord, by August 31, 2007, then Landlord shall be entitled to the savings and Tenant shall receive no credit therefor. Any personal property, trade fixtures or equipment, including, but not limited to, modular or other furniture, and cabling or other items for communications or computer systems, whether or not shown on any plan approved by Landlord, shall be provided by Tenant, at Tenant’s sole cost.
Allowance for Tenant Work. Landlord shall pay the cost of construction of the Tenant Work directly to Landlord's general contractor or other contractor approved by Landlord, which approval shall not be unreasonably withheld.
Allowance for Tenant Work. Tenant shall receive as a credit against the cost of the Tenant Work an amount up to $7,631 less ten percent (10%) of actual construction costs thereof which shall be retained by Landlord for construction management, to be applied toward the cost of the construction of the Tenant Work ("Improvement Allowance"). Landlord shall pay the cost of construction of the Tenant Work directly to Landlord's general contractor and charge the cost thereof against the Improvement Allowance.