CONSTRUCTION AND POSSESSION. The Tenant Improvements shall be constructed by independent contractors to be employed by and under the supervision of Landlord, as general contractor, in accordance with plans prepared by Dennxx Xxxxx xxx Associates, to be attached as Exhibit "B" ("Working Drawings"). Landlord shall construct the Tenant Improvements in accordance with all existing applicable municipal, local, state and federal laws, statutes, rules, regulations and ordinances. Landlord shall be responsible for and shall pay the cost of the Tenant Improvements up to the amount of Four Hundred Eighty-Eight Thousand Four Hundred Five and No/100 Dollars ($488,405.00) ("Tenant Improvement Allowance"). In the event the cost of Tenant Improvements is less than the Tenant Improvement Allowance, the monthly rental under the f case shall be reduced at the rate of Fifteen Dollars ($15.00) per month for each One Thousand Dollars ($1,000.00) of the Tenant Improvement Allowance not used. The cost of the Tenant Improvements including fit-up of special areas shall include a fee of eight and one half percent (8.5%) to cover all Landlord's Costs and Expenses including but riot limited to: a field superintendent temporary on-site facilities; home office administration, supervision, and coordination; financing fees, and construction interest Landlord hereby guarantees that, under no circumstance, will the expense for Tenant Improvements exceed the said allowance without Tenant's prior approval Tenant shall have the right to approve the budget of the Tenant Improvements prior to the Landlord's contracting for the improvements. If the cost of the Tenant improvements exceed the Tenant Improvement Allowance by virtue of Tenant's written approval, Tenant shall pay for such excess costs in cash within thirty (30) days after Landlord has provided Tenant with evidence that Landlord's progress payments to subcontractors has exceeded said Tenant Improvement budget. All costs for Tenant Improvements shall be fully documented to and verified by Tenant. Anything to the contrary in the foregoing notwithstanding, Landlord shall provide Tenant with a list of contractors to whom Landlord proposes to let the contract for the Tenant Improvements to be constructed by Landlord hereunder. Tenant shall promptly notify Landlord of any reasonable objections to the use of any such contractor and shall also provide Landlord with the name of any contractor Tenant desires to have an opportunity to bid on the contract to construct the Tenant Improvements. Landlord will consult with Tenant in the final selection of a contractor and the letting of any contract to construct the Tenant Improvements. Tenant shall not unreasonably object to the selection of a contractor chosen by Landlord or the terms of the contract for the construction of the Tenant Improvements agreed to by Landlord.
Appears in 2 contracts
Samples: Lease Agreement (8x8 Inc), Lease Agreement (8x8 Inc)
CONSTRUCTION AND POSSESSION. The Tenant Improvements shall be constructed by independent contractors to be employed by and under the supervision of Landlord, as general contractor, in accordance with plans prepared by Dennxx Xxxxx xxx Associates, to be attached as Exhibit "B" ("Working Drawings"). 4.1 Landlord shall construct the Tenant Improvements in accordance conformity with all existing applicable municipal, local, state the schematic attached hereto as Exhibit E and federal laws, statutes, rules, regulations the architectural drawings listed at Exhibit F at its cost and ordinances. Landlord shall be responsible for and shall pay the at no cost of the Tenant Improvements up to the amount of Four Hundred Eighty-Eight Thousand Four Hundred Five and No/100 Dollars ($488,405.00) ("Tenant Improvement Allowance"). In the event the cost of Tenant Improvements is less than the Tenant Improvement Allowance, the monthly rental under the f case shall be reduced at the rate of Fifteen Dollars ($15.00) per month for each One Thousand Dollars ($1,000.00) of the Tenant Improvement Allowance not usedTenant. The cost of the Tenant Improvements including fit-up of special areas shall include a fee design, permitting and out-of-pocket construction costs of eight and one half percent (8.5%) to cover all Landlord's Costs and Expenses the Tenant Improvements, including but riot not limited to: a field superintendent temporary on-site facilities; home office administrationto architectural and engineering fees, supervisioncosts of processing and obtaining permits from the City of San Diego and any other governmental entity with jurisdiction over the Premises, water and sewer connection charges and other expenses related thereto. Notwithstanding the forgoing, Tenant shall pay all costs of Tenant Improvements which are due to change orders to Exhibit E or Exhibit F requested by Tenant and approved by Landlord, or improvements requested by Tenant and approved by Landlord which are not included in Exhibit E or Exhibit F.
4.2 Landlord shall use good faith, diligent efforts to tender possession of the Premises with the Tenant Improvements Substantially Complete to Tenant on the estimated Term Commencement Date as set forth in Section 2.1.5(a). Tenant agrees that in the event Landlord fails to tender possession of the Premises with the Tenant Improvements Substantially Complete to Tenant on or before the estimated Term Commencement Date, this Lease shall not be void or voidable and Landlord shall not be liable to Tenant for any loss or damage resulting therefrom, and coordination; financing feesTenant expressly waives any right to terminate this Lease because of delays in completion of Tenant Improvements. In no event, however, shall Tenant’s obligation to pay Basic Annual Rent, Operating Expenses, and construction interest any other amounts under this Lease commence until the actual Term Commencement Date. Notwithstanding the foregoing, in the event Landlord hereby guarantees that, under no circumstance, will fails to tender possession of the expense for Premises to Tenant with the Tenant Improvements exceed Substantially Complete on or before six (6) months after the said allowance without Tenant's prior approval estimated Term Commencement Date as set forth in Section 2.1.5(a), Tenant shall have the right to approve terminate this Lease by giving written notice to Landlord within ten (10) days thereafter, in which event Landlord shall return to Tenant all amounts previously deposited with Landlord.
4.3 Prior to entry by Tenant onto the budget Premises before the Term Commencement Date, for installing fixtures, placement of personal property, or any other purpose, Tenant shall furnish to Landlord evidence satisfactory to Landlord that insurance coverages required of Tenant under the provisions of Article 21 are in effect. Entry by Tenant Improvements onto the Premises prior to the Landlord's contracting Term Commencement Date for the improvements. If the cost such purposes shall be subject to all of the Tenant improvements exceed terms and conditions of this Lease other than the Tenant Improvement Allowance by virtue payment of Tenant's written approvalBasic Annual Rent and Operating Expenses, Tenant shall pay for such excess costs in cash within thirty (30) days after Landlord has provided Tenant with evidence that Landlord's progress payments to subcontractors has exceeded said Tenant Improvement budget. All costs for Tenant Improvements shall be fully documented to and verified by Tenant. Anything to the contrary in the foregoing notwithstanding, Landlord shall provide Tenant with a list of contractors to whom Landlord proposes to let the contract for the Tenant Improvements to be constructed by Landlord hereunder. Tenant shall promptly notify Landlord of any reasonable objections to the use of any such contractor and shall also provide Landlord not interfere with the name of any contractor Tenant desires to have an opportunity to bid on the contract to construct the Tenant Improvements. Landlord will consult with Tenant in the final selection of a contractor and the letting of any contract to construct the Tenant Improvements. Tenant shall not unreasonably object to the selection of a contractor chosen performance by Landlord or the terms of the contract for the Landlord’s contractor with construction of the Tenant Improvements agreed Improvements, shall be limited to the last ten (10) days prior to the estimated Substantial Completion of the Premises, and shall be made only with the advance written consent of Landlord, which consent shall not be unreasonably withheld. In the event of entry by LandlordTenant or its agents onto the Premises prior to the Term Commencement Date, Tenant agrees to indemnify, protect, defend and hold harmless Landlord and its contractors and agents from any and all loss or damage to property, completed work, fixtures, equipment, materials or merchandise, or from liability for death of or injury to any person arising from Tenant’s entry onto the Premises, except to the extent caused by the gross negligence or willful misconduct of Landlord or its agents or contractors.
Appears in 2 contracts
Samples: Lease (Genelux Corp), Lease (Genelux Corp)
CONSTRUCTION AND POSSESSION. The Tenant Improvements shall be constructed by independent contractors to be employed by constructed, at Landlord's sole expense, in accordance with the Final Working Drawings and under the supervision of Landlord, as general contractor, in accordance with plans prepared by Dennxx Xxxxx xxx Associates, to be attached as Exhibit "B" ("Working Drawings"). Landlord and shall construct the Tenant Improvements in accordance comply with all existing applicable municipal, local, state and federal laws, statutes, rules, regulations and ordinances. Landlord shall at its sole expense repair all latent defects respecting the Premises and all violations of laws, statutes, rules, regulations and ordinances in effect as of the Commencement Date. Landlord's obligations with respect to the correction of such defects shall be limited to the cost to correct the defective work and Landlord shall not be liable for any consequential damages or other loss or damage incurred by Tenant. Landlord and Tenant have approved the architectural, mechanical and electrical working drawings ("Working Drawings") attached as Exhibit "B", and the scope of work and budget ("Budget") attached as Exhibit "C". Prior to August 3, 1992, Tenant agrees to reduce the scope of work of the Working Drawings so as to reduce the Budget to a maximum cost of Nine Hundred Fifty Thousand and No/100 Dollars ($950,000.00) ("Maximum Tenant Improvement Cost"). Landlord and Tenant shall be responsible for and shall pay the cost of the Tenant Improvements as defined in Exhibit "B" and Exhibit "C" as follows: Landlord shall pay (i) the first 785,160 and (i) Fifty Percent (50%) of the remaining cost up to the amount of Four Hundred Eighty-Eight Thousand Four Hundred Five and No/100 Dollars ($488,405.00) ("Maximum Tenant Improvement Allowance")Cost. In the event the cost of Tenant Improvements is less than the Tenant Improvement Allowance, the monthly rental under the f case shall be reduced at the rate of Fifteen Dollars ($15.00) per month for each One Thousand Dollars ($1,000.00) of the Tenant Improvement Allowance not used. The cost of the Tenant Improvements including fit-up of special areas shall include a fee of eight and one half percent (8.5%) to cover all Landlord's Costs and Expenses including but riot limited to: a field superintendent temporary on-site facilities; home office administration, supervision, and coordination; financing fees, and construction interest Landlord hereby guarantees that, under no circumstance, will the expense for Tenant Improvements exceed the said allowance without Tenant's prior approval Tenant shall have pay the right to approve the budget balance of the Tenant Improvements prior to the Landlord's contracting for the improvements. If the cost of the Tenant improvements exceed Improvements. In the event Tenant makes any changes to the Final Working Drawings which increase the Tenant Improvement Allowance cost ("Cost Increase"), the Cost Increase shall be paid for by virtue Tenant in cash within seven (7) days after payment by Landlord to the General Contractor. In the event Tenant makes any changes to the Final Working Drawings after August 3, 1992 which cause the General Contractor's construction schedule to be delayed, the Commencement Date shall occur one (1) day in advance of Substantial Completion as defined below for each day of delay. Landlord shall deliver possession of the Building in good condition and repair, broom clean, reasonable wear and tear excepted, on or before the Intended Commencement Date. Landlord by delivery of possession to Tenant represents that the Building is structurally sound and meets all code requirements as of the Commencement Date. Landlord shall provide a warranty, excluding routine maintenance or damage caused by the negligence or misuse by Tenant's written approval, on the Building for one (1) year from the Commencement Date. If Landlord is unable to deliver possession of the Premises to Tenant on or before the Intended Commencement Date, for whatever reason, Landlord shall not be in default under this Lease, nor shall this Lease be void, voidable or cancelable by Tenant until the lapse of forty five (45) days after the Intended Commencement Date (the "Delivery Grace Period"); however, the Lease Commencement Date shall not be deemed to have occurred until such date as Landlord notifies Tenant that the Premises are ready for occupancy and substantial completion of the Premises has occurred. Notwithstanding the foregoing, the Delivery Grace Period shall be extended one day for every day of delay in completion caused by labor strikes, material shortages, inclement weather, or other causes beyond the reasonable control of Landlord. If Landlord is unable to deliver possession of the Premises to Tenant within the Delivery Grace Period, Tenant shall pay be entitled to rental abatement hereunder of one day's rent for such excess costs each day beyond said 45-day period in cash within thirty (30) days after Landlord has provided which the Premises are not substantially complete. The delay in the commencement of rent shall be the sole and exclusive remedy of Tenant with evidence that Landlord's progress payments to subcontractors has exceeded said Tenant Improvement budget. All costs for Tenant Improvements shall be fully documented to and verified respect by Tenant. Anything to the contrary in the foregoing notwithstanding, Landlord shall provide Tenant with a list of contractors to whom Landlord proposes to let the contract for the Tenant Improvements to be constructed failure by Landlord hereunder. Tenant shall promptly notify Landlord of any reasonable objections to achieve substantial completion within the use of any such contractor and shall also provide Landlord with the name of any contractor Tenant desires to have an opportunity to bid on the contract to construct the Tenant Improvements. Landlord will consult with Tenant in the final selection of a contractor and the letting of any contract to construct the Tenant Improvements. Tenant shall not unreasonably object to the selection of a contractor chosen by Landlord or the terms of the contract for the construction of the Tenant Improvements agreed to by Landlorddelivery grace period.
Appears in 1 contract
Samples: Lease Agreement (Visx Inc)
CONSTRUCTION AND POSSESSION. The Tenant Interior Improvements and Building Shell shall be constructed by independent contractors to be employed by and under the supervision of LandlordSobrato Construction Corporation, as general contractor. The final plans for such Interior Improvements shall be prepared as expeditiously as possible and shall be subject to the reasonable approval by the parties, in accordance with plans prepared by Dennxx Xxxxx xxx Associates, to which approval shall not be attached as Exhibit "B" ("Working Drawings")unreasonably withheld or delayed. Landlord shall construct the Tenant Interior Improvements and Building Shell in accordance with all existing applicable municipal, local, state and federal laws, statutes, rules, regulations and ordinances. The Building Shell and Tenant Interior Improvements are generally described in Exhibit E. The final plans shall be consistent with Exhibit E and shall be based upon and consistent with the plan for the Building Shell attached as Exhibit A, and with the Tenant Floor Plans to be submitted as provided in Exhibit E. Landlord shall be responsible for and shall pay the entire cost of the Building Shell. Costs for all Tenant Interior Improvements up to the amount of Four Hundred Eighty-Eight Thousand Four Hundred Five and No/100 Dollars ($488,405.00) ("Tenant Improvement Allowance"). In the event the cost of Tenant Improvements is less than the Tenant Improvement Allowance, the monthly rental under the f case shall be reduced at the rate of Fifteen Dollars ($15.00) per month paid for each One Thousand Dollars ($1,000.00) of the by Tenant Improvement Allowance not used. The cost of the Tenant Improvements including fit-up of special areas shall include a fee of eight and one half percent (8.5%) to cover all Landlord's Costs and Expenses including but riot limited to: a field superintendent temporary on-site facilities; home office administration, supervision, and coordination; financing fees, and construction interest Landlord hereby guarantees that, under no circumstance, will the expense for Tenant Improvements exceed the said allowance without Tenant's prior approval Tenant shall have the right to approve the budget of the Tenant Improvements prior to the Landlord's contracting for the improvements. If the cost of the Tenant improvements exceed the Tenant Improvement Allowance by virtue of Tenant's written approval, Tenant shall pay for such excess costs in cash within thirty ten (3010) days after Landlord has provided Tenant with written evidence that of Landlord's progress payments to subcontractors has exceeded said Tenant Improvement budgetsub-contractors. Landlord to retain 10% from progress payment to sub-contractors until completion of punch list corrective work. All costs for Tenant Interior Improvements shall be fully documented to and verified by Tenant. Anything Tenant reserves the right to require Landlord to secure three competitive bids from sub-contractors on any item costing in excess of TWENTY FIVE THOUSAND AND 00/100 ($25,000.00) DOLLARS. Landlord and Tenant to execute a standard construction contract containing provisions customarily contained in such contracts providing reasonable protection to the contrary in interests of the foregoing notwithstanding, Landlord shall provide Tenant with a list of contractors to whom Landlord proposes to let the contract for the Tenant Improvements to be constructed by Landlord hereunderparties. Tenant shall promptly notify Landlord of any reasonable objections to the use of any such contractor and shall also provide Landlord with the name of any contractor Tenant desires to have an opportunity to bid on the contract to construct the Tenant Improvements. Landlord will consult with Tenant in the The final selection of a contractor and the letting successful sub-contractors for the interior improvements shall be subject to Tenant's approval. Upon receipt of all competitive bids, Tenant shall retain the right to negotiate with any contract subcontractor subject to construct the Tenant Improvementsreasonable approval of Lessor. Tenant shall not unreasonably object to have the right to record a chattel mortgage, personal property lease, or other security interest on the lease hold improvements that it has paid for and that have become an integral part of the real estate; Tenant's rights hereunder will revert to the selection of a contractor chosen by Landlord or upon Tenant's surrender at the terms end of the contract for the construction term or sooner termination of the Tenant Improvements agreed to by Landlordthis Lease.
Appears in 1 contract
Samples: Lease Agreement (Hadco Corp)
CONSTRUCTION AND POSSESSION. Article 4 of the Lease is hereby deleted and replaced with the following: The Tenant Improvements shall be constructed by independent contractors accept the Expansion Area "as is where is" and, except as set forth in Section 6 below, Landlord has made no agreement to be employed by and under the supervision of Landlord, as general contractor, in accordance with plans prepared by Dennxx Xxxxx xxx Associates, to be attached as Exhibit "B" ("Working Drawings")improve or perform any work thereon. Landlord shall construct the Tenant Improvements in accordance with all existing applicable municipal, local, state and federal laws, statutes, rules, regulations and ordinances. Landlord shall be responsible for constructing improvements in the Premises pursuant to plans that have been approved by Landlord, which approval shall not be unreasonably withheld, delayed or conditioned ("Tenant Improvements"). Tenant shall submit the plans for such Tenant Improvements to Landlord for review and approval prior to beginning any of the Tenant Improvements. Landlord's approval of such plans shall pay not be considered a representation or warranty that such plans or Tenant Improvements comply with all applicable laws, codes and/or regulations. Tenant shall have the right to select the contractor to build the Tenant Improvements which contractor shall be acceptable to Landlord, which acceptance shall not be unreasonably withheld, delayed or conditioned. Any and all contractors must comply with any and all applicable codes, laws and regulations applicable to the Premises including without limitation Landlord's reasonable rules and regulations applicable to the Premises. Landlord has agreed to provide Tenant with an allowance of $867,750.00 to be used towards the cost of the Tenant Improvements up to the amount of Four Hundred Eighty-Eight Thousand Four Hundred Five and No/100 Dollars ($488,405.00) ("Tenant Improvement the "TI Allowance"). In , which TI Allowance and the event the cost of Tenant Improvements is less than the Tenant Improvement Allowance, the monthly rental under the f case shall be reduced at the rate of Fifteen Dollars ($15.00) per month for each One Thousand Dollars ($1,000.00) of the Tenant Improvement Allowance not used. The cost of the Tenant Improvements including fit-up of special areas shall include a fee of eight and one half percent (8.5%) to cover all Landlord's Costs and Expenses including but riot limited to: a field superintendent temporary on-site facilities; home office administration, supervision, and coordination; financing fees, and construction interest Landlord hereby guarantees that, under no circumstance, will the expense for Tenant Improvements exceed the said allowance without Tenant's prior approval Tenant shall have the right to approve the budget of the Tenant Improvements prior to the Landlord's contracting for the improvements. If the cost of the Tenant improvements exceed the Tenant Improvement Allowance by virtue of Tenant's written approval, Tenant shall pay for such excess costs in cash within thirty (30) days after Landlord has provided Tenant with evidence that Landlord's progress payments to subcontractors has exceeded said Tenant Improvement budget. All costs for Tenant Improvements shall be fully documented to and verified by Tenant. Anything subject to the contrary in following provisions: (i) any TI Allowance that remains after payment of all of the foregoing notwithstanding, Landlord shall provide Tenant costs associated with a list of contractors to whom Landlord proposes to let the contract for the Tenant Improvements up to a maximum of $110,526.00 will be constructed credited by Landlord hereunder. to Tenant towards the Minimum Rent next becoming due and any amounts remaining which are in excess of such maximum shall promptly notify Landlord belong to Landlord; (ii) the TI Allowance shall be used only for the payment of any reasonable objections costs relating to the use of any such contractor and shall also provide Landlord with the name of any contractor Tenant desires to have an opportunity to bid on the contract to construct the Tenant Improvements. Landlord will consult with Tenant in the final selection of a contractor and the letting of any contract to construct the Tenant Improvements. Tenant shall not unreasonably object to the selection of a contractor chosen by Landlord or the terms of the contract for the construction of the Tenant Improvements agreed (including without limitation the costs of preparing plans and construction drawings, the cost of any and all voice and data cabling, and the cost to relocate Tenant's existing employees within the Existing Premises as necessary to perform the construction of the Tenant Improvements; (iii) the Tenant Improvements shall be made by Tenant at the sole cost and expense of Tenant subject to the reimbursement thereof with the TI Allowance and shall be performed in accordance with all provisions of the Lease (including without limitation Article 15 thereof), including compliance with all applicable governmental laws, ordinances and regulations; (iv) Tenant shall be solely responsible for any and all costs of the Tenant Improvements in excess of the TI Allowance; (v) if the cost of the Tenant Improvements is in excess of the TI Allowance ("Excess"), Tenant shall have the option of either paying all costs incurred for such Excess first out of Tenant's funds before any of the TI Allowance is disbursed or depositing Tenant's funds in the amount of the Excess into a construction type escrow to be held and disbursed in accordance with an escrow agreement mutually acceptable to Tenant and Landlord; (vi) it shall be a condition of Landlord's obligation to pay any installment of the TI Allowance for work performed by any contractor or supplier, that Tenant shall provide or cause to be provided to Landlord a copy of all contracts with contractors and subcontractors and contractor's and subcontractor's affidavits and waivers of lien covering all labor and material used and expended for which contractors and subcontractors are requesting payment, all in form and content reasonably satisfactory to Landlord; (vii) it shall be a condition to Landlord's obligation to pay or credit any amount of TI Allowance that Tenant is not then in default under any of the other material terms, covenants and conditions of this Lease beyond any applicable notice and cure period provided for in the Lease; and (viii) the TI Allowance shall be advanced as costs are incurred.. Tenant shall not be responsible for or obligated to pay any fee to or to reimburse Landlord for any expenses associated with Landlord's review, approval or coordination of such Tenant Improvements.
Appears in 1 contract
Samples: Standard Lease Agreement (Cray Inc)
CONSTRUCTION AND POSSESSION. The 4.1 Landlord has constructed Tenant Improvements within the Premises for Tenant's use and occupancy ("TENANT IMPROVEMENTS") in conformity with the schematic attached hereto as EXHIBIT E and the architectural drawings listed at EXHIBIT F at its cost and at no cost to Tenant. Tenant shall pay all costs of changes to the Tenant Improvements requested by Tenant and approved by Landlord, or improvements requested by Tenant and approved by Landlord which are not included in EXHIBIT E or EXHIBIT F.
4.2 Prior to entry by Tenant onto the Premises before the Term Commencement Date, for installing fixtures, placement of personal property, or any other purpose, Tenant shall furnish to Landlord evidence satisfactory to Landlord that insurance coverages required of Tenant under the provisions of Article 21 are in effect. Entry by Tenant onto the Premises prior to the Term Commencement Date for such purposes shall be constructed subject to all of the terms and conditions of this Lease other than the payment of Basic Annual Rent and Operating Expenses, shall not interfere with the performance by independent contractors Landlord or Landlord's contractor with construction activities at the Project, shall be limited to the last ten (10) days prior to the estimated Substantial Completion of the Premises, and shall be employed by and under made only with the supervision advance written consent of Landlord, as general contractor, in accordance with plans prepared by Dennxx Xxxxx xxx Associates, to which consent shall not be attached as Exhibit "B" ("Working Drawings"). Landlord shall construct the Tenant Improvements in accordance with all existing applicable municipal, local, state and federal laws, statutes, rules, regulations and ordinances. Landlord shall be responsible for and shall pay the cost of the Tenant Improvements up to the amount of Four Hundred Eighty-Eight Thousand Four Hundred Five and No/100 Dollars ($488,405.00) ("Tenant Improvement Allowance")unreasonably withheld. In the event of entry by Tenant or its agents onto the cost of Tenant Improvements is less than the Tenant Improvement Allowance, the monthly rental under the f case shall be reduced at the rate of Fifteen Dollars ($15.00) per month for each One Thousand Dollars ($1,000.00) of the Tenant Improvement Allowance not used. The cost of the Tenant Improvements including fit-up of special areas shall include a fee of eight and one half percent (8.5%) to cover all Landlord's Costs and Expenses including but riot limited to: a field superintendent temporary on-site facilities; home office administration, supervision, and coordination; financing fees, and construction interest Landlord hereby guarantees that, under no circumstance, will the expense for Tenant Improvements exceed the said allowance without Tenant's prior approval Tenant shall have the right to approve the budget of the Tenant Improvements Premises prior to the Landlord's contracting Term Commencement Date, Tenant agrees to indemnify, protect, defend and hold harmless Landlord and its contractors and agents from any and all loss or damage to property, completed work, fixtures, equipment, materials or merchandise, or from liability for the improvements. If the cost death of the Tenant improvements exceed the Tenant Improvement Allowance by virtue of or injury to any person arising from Tenant's written approvalentry onto the Premises, Tenant shall pay for such excess costs in cash within thirty (30) days after Landlord has provided Tenant with evidence that Landlord's progress payments to subcontractors has exceeded said Tenant Improvement budget. All costs for Tenant Improvements shall be fully documented to and verified by Tenant. Anything except to the contrary in extent caused by the foregoing notwithstanding, Landlord shall provide Tenant with a list gross negligence or willful misconduct of contractors to whom Landlord proposes to let the contract for the Tenant Improvements to be constructed by Landlord hereunder. Tenant shall promptly notify Landlord of any reasonable objections to the use of any such contractor and shall also provide Landlord with the name of any contractor Tenant desires to have an opportunity to bid on the contract to construct the Tenant Improvements. Landlord will consult with Tenant in the final selection of a contractor and the letting of any contract to construct the Tenant Improvements. Tenant shall not unreasonably object to the selection of a contractor chosen by Landlord or the terms of the contract for the construction of the Tenant Improvements agreed to by Landlordits agents or contractors.
Appears in 1 contract
CONSTRUCTION AND POSSESSION. The 4.1 Landlord hereby tenders to Tenant, immediately upon execution of this Lease, early possession of the Premises for construction of interior improvements for its use and occupancy (“Tenant Improvements Improvements”) and installation of fixtures, equipment and other personal property, and Tenant accepts such possession of the Premises, subject to all of the agreements, terms, covenants and conditions of this Lease other than the obligation of Tenant to pay Basic Annual Rent and Operating Expenses prior to the Term Commencement Date. Without limiting the generality of the forgoing, Tenant shall be constructed by independent contractors have in place the insurance required of Tenant pursuant to be employed by and under Article 21 of this Lease prior to entry upon the supervision of Landlord, as general contractor, in accordance with plans prepared by Dennxx Xxxxx xxx Associates, to be attached as Exhibit "B" ("Working Drawings"). Landlord Premises.
4.2 Tenant shall construct the Tenant Improvements in accordance with all existing applicable municipaltenant improvement plans (“Tenant Improvement Plans”) at Tenant’s expense, localincluding the expense of design, state permitting and federal lawsconstruction, statutessubject to Landlord providing the Tenant Improvement Allowance described in Section 4.3 below. The Tenant Improvement Plans, rulesand any revisions and supplements thereto, regulations shall be subject to the written approval of Landlord, which approval shall not be unreasonably withheld or delayed (and ordinancesshall be deemed approved if Landlord does not respond to a written request for approval within ten (10) days after the request). Tenant shall obtain and provide to Landlord a certificate of occupancy, if required, as soon as possible after completion of the Tenant Improvements.
4.3 Landlord shall be responsible contribute for and shall pay the cost of the Tenant Improvements up to the amount sum of Four Hundred Eighty-Eight Thousand Four Hundred Five and No/100 Dollars $262,320 ($488,405.00) ("the “Tenant Improvement Allowance"”). In the event the cost of Tenant Improvements , which is less than the Tenant Improvement Allowance, the monthly rental under the f case shall be reduced calculated at the rate of Fifteen Dollars ($15.00) 15.00 per month for each One Thousand Dollars ($1,000.00) square foot of the Tenant Improvement Allowance not used. The cost Rentable Area of the Tenant Improvements including fit-up of special areas shall include a fee of eight and one half percent (8.5%) to cover all Landlord's Costs and Expenses including but riot limited to: a field superintendent temporary on-site facilities; home office administration, supervision, and coordination; financing fees, and construction interest Landlord hereby guarantees that, under no circumstance, will the expense for Tenant Improvements exceed the said allowance without Tenant's prior approval Tenant shall have the right to approve the budget of the Tenant Improvements prior to the Landlord's contracting for the improvementsPremises. If the cost of the Tenant improvements exceed Improvements exceeds the Tenant Improvement Allowance, Tenant shall pay such excess as the costs are incurred. The Tenant Improvement Allowance shall be disbursed by Landlord to Tenant as work progresses in accordance with the provisions of Section 4.5. The Tenant Improvement Allowance may be used for design, permitting and out-of-pocket construction costs of the Tenant Improvements, including any amounts paid to architects and engineers, but excluding any amounts paid to or for (i) project coordinators, construction consultants or similar consultants, (ii) furniture, fixtures and equipment (other than cage wash, fume hoods, autoclave and other laboratory equipment), (iii) telephone and data cabling and equipment (but shall include a telephone/data closet within the Premises), and (iv) moving costs.
4.4 Tenant shall prepare a Tenant Improvement Budget, including design fees, costs of processing and obtaining permits from any governmental agency with jurisdiction over the Premises, architect fees and other direct costs incurred in the design and construction of the Tenant Improvements. The Tenant Improvement Budget and all revisions thereto, shall be subject to Landlord’s approval, which shall not be unreasonably withheld or delayed.
4.5 As work progresses on the Tenant Improvements, Tenant shall submit an application for payment (“Application for Payment”) to Landlord no more often than monthly, and by the twentieth (20th) day of the month, for disbursement of the Tenant Improvement Allowance. Applications for Payment may be made only for work actually completed or services actually provided and shall include a detailed description of such completed Tenant Improvement work or services. Applications for Payment shall include copies of the invoices to Tenant by Tenant’s contractor(s) or other vendors for the work completed. As a condition of payment of any Application for Payment, Landlord shall require the certification by both Tenant and Tenant’s architect that the described Tenant Improvement Work or services have been completed. Landlord shall disburse the requested funds from the Tenant Improvement Allowance by virtue directly to the invoicing party (or, in Landlord’s discretion, directly to Tenant) no later than the tenth (10th) day of Tenant's written approvaleach calendar month for Applications for Payment with required supporting documentation received on or before the twentieth (20th) day of the previous calendar month. Tenant agrees to reasonably cooperate with Landlord in compiling the Applications for Payment in form and content satisfactory to Landlord’s lender.
4.6 If the Tenant Improvement Budget, as it may be revised from time to time, exceeds the amount of the Tenant Improvement Allowance, as initially adopted or as revised from time to time because of changes in work, cost overruns, or otherwise, Tenant shall pay for such excess costs the overage on a monthly basis as the work progresses pursuant to reasonable requirements of Landlord and Landlord’s lender.
4.7 Tenant shall, at its expense, install any improvements in cash within thirty (30) days after Landlord has provided Tenant with evidence that Landlord's progress payments addition to subcontractors has exceeded said those listed on the Tenant Improvement budget. All costs for Budget which are necessary to ensure (i) the Premises are completed in accordance with the Tenant Improvements shall be Improvement Plans, (ii) the Premises are fully documented to operational, and verified by Tenant. Anything to the contrary in the foregoing notwithstanding(iii) a certificate of occupancy, Landlord shall provide Tenant with a list of contractors to whom Landlord proposes to let the contract if required, is issued for the Tenant Improvements to be constructed by Landlord hereunder. Tenant shall promptly notify Landlord of any reasonable objections to the use of any such contractor and shall also provide Landlord with the name of any contractor Tenant desires to have an opportunity to bid on the contract to construct the Tenant Improvements. Landlord will consult with Tenant in the final selection of a contractor and the letting of any contract to construct the Tenant Improvements. Tenant shall not unreasonably object to the selection of a contractor chosen by Landlord or the terms of the contract for the construction Premises.
4.8 Any portion of the Tenant Improvements agreed Improvement Allowance which is not disbursed to Tenant by Landlordthe end of the initial term of the Lease shall be credited to Basic Annual Rent first payable during any extension term, or, if the term is not extended, shall otherwise be added to the Security Deposit described in Article 9 and shall be used or returned to Tenant as provided therein.
Appears in 1 contract
Samples: Lease (Acucela Inc)
CONSTRUCTION AND POSSESSION. The Tenant (a) Landlord shall construct at Landlord's sole cost and expense, (i) the Building Shell for Building A and Building B and Site Improvements shall be constructed by independent contractors to be employed by and under the supervision of Landlord, as general contractor, in accordance with plans prepared the Building Shell and Site Improvement Plans, and (ii) the Core Improvements for Building A and Building B in accordance with the Core Improvement Plans (collectively, the "Project Plans" and the "Project Work"). The Project Plans are described on Exhibit B attached hereto and have been reviewed and approved by Dennxx Xxxxx xxx AssociatesTenant. Landlord shall notify Tenant of any material changes to the Project Plans. Landlord agrees to furnish all of the material, to be attached as Exhibit labor and equipment for the construction of the Project Work in a good and workmanlike manner in conformance with the Project Plans and in compliance with all then applicable building laws, ordinances, orders, rules, regulations and requirements of all federal, state and municipal governments with jurisdictional authority over the construction of the Project Work, including, but not limited to, the Americans With Disabilities Act and Title 24 (the "B" ("Working DrawingsApplicable Laws"). Landlord shall obtain all necessary final inspections and approvals from the governmental authorities having jurisdiction over the Project Work, as well as a certification of substantial completion of the Project Work by Landlord's architect, unless prevented from so doing as a result of the construction of the Tenant Improvements, in which case Landlord and Tenant shall cooperate to acquire such certificate in conjunction with the approval of the Tenant Improvements. In connection with the Project Work, Landlord agrees to maintain all construction warranties and guarantees for the mutual benefit of Landlord and Tenant, provided that Tenant does not void any of such construction warranties and guarantees as a result of the construction of the Tenant Improvements.
(b) At such time as Landlord has completed the Project Work to the extent that construction of the Tenant Improvements can actually commence as reasonably determined by Landlord's architect, Tenant shall construct the Tenant Improvements in accordance with all existing applicable municipalthe tenant improvement plans and specifications approved by Landlord as set forth herein ("Tenant Improvement Plans") at Tenant's expense, localincluding (i) design and architectural fees, state (ii) engineering fees, (iii) costs of processing and federal lawsobtaining permits from the City of San Diego and any other governmental entity with jurisdiction over the Premises, statutes(iv) water and sewer connection charges and other expenses related thereto, rulesand (v) any other costs and expenses for the design, regulations permitting and ordinancesconstruction of the Tenant Improvements, subject to Landlord providing the Tenant Improvement Allowance described in Paragraph 4(d) below. The Tenant Improvements shall be constructed in accordance with the Union Guidelines attached hereto as Exhibit C. The Tenant Improvement Plans may show the location of trash enclosures, Hazardous Material enclosures, HVAC enclosures, and emergency generators located outside of the Premises, subject to the reasonable approval of Landlord. Tenant shall retain its own architect, engineers and contractors for the design and construction of the Tenant Improvements. Landlord and Tenant agrees that the architect for the Tenant Improvements shall be responsible Pacific Cornerstone Architects, and the contractor for the Tenant Improvements shall be selected by Tenant, subject to Landlord's reasonable approval; provided that Tenant shall have the right to substitute a different architect or contractor (subject to Landlord's reasonable approval) if, in Tenant's sole and absolute discretion, the architect's or contractor's performance is unacceptable to Tenant or Tenant and the architect or contractor are unable to consummate a formal agreement for their services. Tenant shall, at Tenant's sole cost and expense, (i) cause to be prepared by Tenant's architect proposed Tenant Improvement Plans, and, (ii) submit two sets of the proposed Tenant Improvement Plans to Landlord for Landlord's approval, which approval shall pay not be unreasonably withheld or delayed. Any revisions and supplements to the Tenant Improvement Plans shall also be subject to the approval of Landlord, which approval shall not be unreasonably withheld or delayed. After Landlord has approved the Tenant Improvement Plans in writing, Tenant shall proceed with due diligence to perform the construction and complete the Tenant Improvements as described in the Tenant Improvement Plans, including obtaining and paying the cost of all permits and fees required for construction of said Tenant Improvements. Tenant shall obtain and provide to Landlord a certificate of occupancy as soon as possible after completion of the Tenant Improvements. Upon final completion of the Tenant Improvements, Tenant shall furnish Landlord copies of all final inspections and approvals issued by any governmental authority having jurisdiction over the work of improvement and of Tenant's legal occupancy of the Premises. The Tenant Improvements up constructed by Tenant shall become part of the real property comprising the Premises unless otherwise agreed by Landlord in writing.
(c) Tenant shall only use contractors and subcontractors which have procured, paid for and maintain worker's compensation insurance and public liability insurance in an amount not less than $1,000,000 and which are licensed in the State of California. Prior to commencement of such work, Tenant shall provide Landlord with certificates of insurance evidencing such coverage, endorsed to name Landlord and Tenant as an additional insureds.
(d) Landlord shall pay for the amount cost of Four Hundred Eighty-Eight Thousand Four Hundred Five and No/100 Dollars (Tenant Improvements the sum of $488,405.00) 100.00 per square foot of Rentable Area in the Premises ("Tenant Improvement Allowance"). In the event If the cost of Tenant Improvements is less than exceeds the Tenant Improvement Allowance, Tenant shall pay such excess as the monthly rental under the f case costs are incurred. The Tenant Improvement Allowance shall be reduced at disbursed by Landlord to Tenant. The Tenant Improvement Allowance may be used only for the rate following items and costs:
(i) Payment of Fifteen the reasonable fees of Tenant's architect, engineers and other consultants incurred or paid by Tenant in connection with the Tenant Improvements up to, but not exceeding, an aggregate amount equal to Four Dollars ($15.004.00) per month Rentable Square Foot of the Premises;
(ii) The payment of plan check, permit and license fees relating to construction of the Tenant Improvements, including water and sewer connection charges;
(iii) The cost of construction of the Tenant Improvements but, unless specifically provided to the contrary herein, only to the extent such Tenant Improvements will be permanently affixed to the Premises and become a part of the realty under applicable laws;
(iv) The cost of any changes in the Project Plans when such changes are requested by Tenant or required by the Tenant Improvement Plans for each One Thousand the construction of the Tenant Improvements, such costs to include all direct architectural and/or engineering fees and expenses incurred in connection therewith;
(v) The cost of any changes to the Tenant Improvement Plans or Tenant Improvements required by any applicable laws, codes, regulations, ordinances, or building codes;
(vi) Costs associated with Tenant's fixturization of the Premises (including cabling and telecommunications costs), not to exceed Eight Dollars ($1,000.008.00) per square foot of Rentable Area;
(vii) Any costs described in subsections (i) through (vi) above contained in a change order requested by Tenant and approved by Landlord.
(e) Tenant shall prepare a budget for the Tenant Improvements ("Tenant Improvement Budget"), including design fees, costs of processing and obtaining permits from the City of San Diego and any other governmental agency with jurisdiction over the Premises, architect fees and other costs incurred in the design and construction of the Tenant Improvements. The Tenant Improvement Budget, and all revisions thereto, shall be subject to Landlord's approval, which shall not be unreasonably withheld or delayed. As work progresses on the Tenant Improvements, Tenant shall submit an application for payment ("Application for Payment") to Landlord no more often than monthly, and by the twenty-fifth (25th) day of the month, for disbursement of the Tenant Improvement Allowance not usedAllowance. The cost of the Applications for Payment may be made only for work actually completed or services actually provided (including any deposits Tenant Improvements including fit-up of special areas is obligated to submit) and shall include a fee detailed description of eight such completed Tenant Improvement work or services. Applications for Payment shall include copies of the invoices to Tenant by Tenant's contractor(s) or other vendors for the work completed. As a condition of payment of any Application for Payment, Landlord may require the certification by both Tenant and one half Tenant's architect that the described Tenant Improvement Work or services have been completed. Landlord shall disburse the requested funds, less a ten percent (8.510%) retention, the aggregate of which shall be referred to cover all Landlord's Costs and Expenses including but riot limited to: a field superintendent temporary on-site facilities; home office administration, supervision, and coordination; financing fees, and construction interest Landlord hereby guarantees that, under no circumstance, will herein as the expense for Tenant Improvements exceed the said allowance without Tenant's prior approval Tenant shall have the right to approve the budget of the Tenant Improvements prior to the Landlord's contracting for the improvements. If the cost of the Tenant improvements exceed "Retention Amount," from the Tenant Improvement Allowance by virtue to the invoicing party (or, in Landlord's discretion, directly to Tenant) no later than the tenth (10th) day of Tenant's written approval, each calendar month for Applications for Payment with required supporting documentation received on or before the twenty-fifth (25th) day of the previous calendar month. Tenant agrees to reasonably cooperate with Landlord in compiling the Applications for Payment in form and content satisfactory to Landlord.
(f) Landlord shall pay for such excess costs in cash to Tenant the amount of the Retention Amount within thirty (30) days after all of the following have occurred: (i) Landlord has provided received evidence of payments by Tenant with evidence that Landlord's progress payments equal to subcontractors has exceeded said or in excess of the Tenant Improvement budget. All costs Allowance for items of cost which are reimbursable hereunder, (ii) lien releases from all contractors, subcontractors, laborers, materialmen or other parties performing any portion of the Tenant Improvement Work; together with, if Landlord so elects, mechanics' lien endorsements from the title company which has issued title insurance to Landlord with regard to the Development (iii) Landlord has determined that no substandard work exists which adversely affects the mechanical, electrical, plumbing, heating, ventilating and air conditioning, life-safety or other systems of the Premises, the structure or exterior appearance of the Premises, or any other Development Occupant's use of the Development, (iv) the Tenant's architect delivers to Landlord a certificate, in a form reasonably acceptable to Landlord, certifying that the construction of Tenant Improvements shall be fully documented has been completed in accordance with the Tenant Improvement Plans approved by Landlord, (v) submittal to Landlord of the final inspection cards from of all governmental agencies, along with the certificate of occupancy and verified by Tenant. Anything to the contrary (vi) Tenant is not otherwise in the foregoing notwithstanding, default of any of its obligations hereunder.
(g) Landlord shall provide tender possession of the Premises to Tenant with a list for construction of contractors to whom Landlord proposes to let the contract for the Tenant Improvements at such time as the Project Work has progressed to be constructed by Landlord hereunderthe point that construction of the Tenant Improvements can actually commence, but subject to reasons of Force Majeure and Tenant Delay, no later than February 1, 2001. Tenant agrees that, subject to reasons of Force Majeure and Tenant Delay, in the event possession of the Premises for construction of the Tenant Improvements is not tendered to Tenant by February 1, 2001, this Lease shall promptly notify not be void or voidable and Landlord shall not be liable to Tenant for any loss or damage resulting therefrom; provided, however, but subject to reasons of Force Majeure and Tenant Delay, if the Premises are tendered to Tenant after February 1, 2001, the Term Commencement Date shall be extended one day for each day of delay beyond February 1, 2001. Without limiting the generality of the foregoing, Tenant expressly waives any reasonable objections right to terminate this Lease because of delays in completion of construction of the Premises; provided however, subject to reasons of Force Majeure and Tenant Delay, if the Premises are not tendered to Tenant for construction of the Tenant Improvements on or before April 1, 2001, Tenant at its election by written notice given to Landlord on or before April 15, 2001, may terminate this Lease, in which event Landlord shall return to Tenant the Security Deposit and any other monies deposited with Landlord, and neither Landlord nor Tenant shall have any further obligation to the use other. The term "Commencement Date" shall mean the earlier of any such contractor and shall also provide (i) the date Tenant receives a certificate of occupancy for the Premises after completion of the Tenant Improvements, or (ii) six (6) months after Landlord with tenders possession of the name Premises to Tenant for construction of any contractor Tenant desires to have an opportunity to bid on the contract to construct the Tenant Improvements. Landlord will consult with Notwithstanding reasons of Force Majeure, but subject to Tenant Delay, in the final selection of a contractor and the letting of any contract to construct the Tenant Improvements. Tenant shall event Landlord has not unreasonably object to the selection of a contractor chosen by Landlord or the terms tendered possession of the contract Premises to Tenant for the construction of the Tenant Improvements agreed on or before October 1, 2001 (such date, as the same may be extended by matters of Tenant Delay, being referred to herein as the "Outside Delivery Date"), then in such event, Tenant shall have the right to terminate this Lease by Landlordwritten notice delivered to Landlord on or before the date that is ten (10) days after the Outside Delivery Date. Also, notwithstanding anything herein to the contrary, in the event the Loan which is the subject of the Loan Commitment is not funded within ninety (90) days of the satisfaction of the Loan Commitment Condition, then either party may, by written notice to the other, tendered within five (5) business days of such ninetieth (90th) day, terminate this Lease. In the event of such termination, any and all monies deposited with Landlord by Tenant hereunder shall be reimbursed to Tenant within ten (10) days of such termination, including, but not limited to, any and all Security Deposits and payments of rent hereunder.
Appears in 1 contract
Samples: Lease Agreement (Illumina Inc)
CONSTRUCTION AND POSSESSION. As a material part of this Lease, Tenant agrees to make improvements to the interior of the Premises ("Tenant Improvements") as generally shown on the preliminary space plan, attached as Exhibit "B". The Tenant Improvements shall be constructed by independent contractors to be employed by and under the supervision of Landlord, as general contractor, in accordance with plans prepared by Dennxx Xxxxx xxx Associates, to be attached as Exhibit "B" ("Working Drawings"). Landlord shall construct the Tenant Improvements in accordance with all existing applicable municipal, local, state and federal laws, statutes, rules, regulations and ordinances. Landlord Tenant shall be responsible for and shall pay all costs associated with the cost construction of the Tenant Improvements up with the exception of costs necessary to bring the amount of Four Hundred Eighty-Eight Thousand Four Hundred Five Premises, in their current condition, (i) into compliance with all required existing applicable municipal, local, state and No/100 Dollars federal laws, statutes, rules, regulations and ordinances, including, but not limited to, ADA and Title 24; and ($488,405.00ii) into good working order and repair, including HVAC, plumbing and electrical systems and the parking lot, roof membrane and landscaping. The aforementioned costs ("Tenant Improvement Allowance"). In the event the cost of Tenant Improvements is less than the Tenant Improvement Allowance, the monthly rental under the f case i) and (ii) shall be reduced at the rate of Fifteen Dollars ($15.00) per month for each One Thousand Dollars ($1,000.00) of the Tenant Improvement Allowance not usedborne by Landlord. The cost of the Tenant Improvements including fit-up of special areas shall include a fee of eight and one half percent (8.5%) to cover all Landlord's Costs and Expenses including but riot limited to: a field superintendent temporary on-site facilities; home office administration, supervision, and coordination; financing fees, and construction interest Landlord hereby guarantees that, under no circumstance, will the expense for Tenant Improvements exceed the said allowance without Tenant's prior approval Tenant shall have the right to approve the budget Tenant's selection of the architect and contractors associated with design and construction of Tenant Improvements prior Improvements, which approval shall not be unreasonably withheld. If Landlord, for any reason whatsoever, cannot deliver possession of the said Premises to Tenant by the Commencement Date, this Lease shall not be void or voidable, nor shall Landlord be liable to Tenant for any loss or damage resulting therefrom; but in that event the Commencement Date and Expiration Date of the Lease and all other dates affected thereby shall be revised to conform to the date of Landlord's contracting for delivery of possession. Notwithstanding the improvements. If the cost foregoing, if Landlord cannot deliver possession of the said Premises to Tenant improvements exceed on or before October 1, 1995, Tenant, upon written notice to Landlord, shall be entitled to terminate this Lease without further liability to Landlord or Tenant. The delay in the Tenant Improvement Allowance by virtue commencement of Tenant's written approval, Tenant rent and/or the termination of the Lease provided herein shall pay for such excess costs in cash within thirty (30) days after Landlord has provided be the sole and exclusive remedy of Tenant with evidence that Landlord's progress payments to subcontractors has exceeded said Tenant Improvement budget. All costs for Tenant Improvements shall be fully documented to and verified respect by Tenant. Anything to the contrary in the foregoing notwithstanding, Landlord shall provide Tenant with a list of contractors to whom Landlord proposes to let the contract for the Tenant Improvements to be constructed failure by Landlord hereunder. Tenant shall promptly notify Landlord of any reasonable objections to the use of any such contractor and shall also provide Landlord with the name of any contractor Tenant desires to have an opportunity to bid on the contract to construct the Tenant Improvements. Landlord will consult with Tenant in the final selection of a contractor and the letting of any contract to construct the Tenant Improvements. Tenant shall not unreasonably object to the selection of a contractor chosen by Landlord or the terms deliver possession of the contract for the construction of the Tenant Improvements agreed to by LandlordPremises.
Appears in 1 contract
CONSTRUCTION AND POSSESSION. The Tenant Interior Improvements shall be constructed by independent contractors to be employed by and under the supervision of Landlord, as general contractor, in accordance with the preliminary plans prepared by Dennxx Xxxxx xxx Jxxx Xxxx and Associates, to be attached as Exhibit "“B" ” ("Working Drawings")“Preliminary Floor Plans”) and Guideline Specifications attached as Exhibit “C”. Landlord shall construct the Tenant Interior Improvements in accordance with the Final Tenant Floor Plans to be a consistent evolution of Exhibit “B” to be attached as Exhibit “D”. The Final Tenant Floor Plans shall provide for a minimum buildout of HVAC, lighting, sprinklers, T bar ceiling, and floor covering in all existing applicable municipalof the Building except those areas outlined in blue on Exhibit “B”. Landlord shall prepare for Tenant’s approval a not to exceed budget (“Budget”) to be attached as Exhibit “E” based on the Final Tenant Floor Plans. Tenant shall have the right to modify the Final Tenant Floor Plans to reduce the scope of work if it is dissatisfied with the Budget prior to the start of construction, localhowever, state in no event shall the Tenant Interior Improvements be less than THREE MILLION AND NO/100 DOLLARS ($3,000,000.00). All such Tenant Interior Improvements outlined on Exhibit “C” and federal laws, statutes, rules, regulations and ordinances. “D” shall Landlord shall be responsible for and shall pay the cost of the Tenant Interior Improvements up to the amount of Four Hundred Eighty-Eight Thousand Four Hundred Five and No/100 Dollars ONE MILLION EIGHT HUNDRED FIFTY THREE THOUSAND NINE HUNDRED FORTY AND NO/100 DOLLARS ($488,405.001,853,940.00) ("“Tenant Interior Improvement Allowance”). Tenant shall pay, upon Substantial completion, an amount determined by subtracting the Tenant Interior Improvement Allowance from the actual Tenant Improvement Allowance")cost. In no event shall the event the cost of Tenant Improvements is less than the actual Tenant Improvement Allowancecosts exceed the Budget, unless the monthly rental under Budget is increased by change orders which modify the f case shall be reduced at the rate scope of Fifteen Dollars ($15.00) per month for each One Thousand Dollars ($1,000.00) of the Tenant Improvement Allowance not used. The cost of the Tenant Improvements including fit-up of special areas shall include a fee of eight and one half percent (8.5%) to cover all Landlord's Costs and Expenses including but riot limited to: a field superintendent temporary on-site facilities; home office administration, supervisionwork outlined on Exhibit “D”, and coordination; financing feesprovided further, said change orders are initiated and construction interest Landlord hereby guarantees that, under no circumstance, will the expense for Tenant Improvements exceed the said allowance without Tenant's prior approval Tenant shall have the right to approve the budget of the Tenant Improvements prior to the Landlord's contracting for the improvements. If the cost of the Tenant improvements exceed the Tenant Improvement Allowance by virtue of Tenant's written approval, Tenant shall pay for such excess costs approved in cash within thirty (30) days after Landlord has provided Tenant with evidence that Landlord's progress payments to subcontractors has exceeded said Tenant Improvement budget. All costs for Tenant Improvements shall be fully documented to and verified writing by Tenant. Anything to the contrary in the foregoing notwithstanding, Landlord shall provide use its best efforts to deliver possession of the Building to Tenant with a list of contractors to whom Landlord proposes to let the contract for the all Tenant Interior Improvements to be constructed by Landlord hereunder. Tenant shall promptly notify Landlord of any reasonable objections to the use of any such contractor and shall also provide Landlord with the name of any contractor Tenant desires to have an opportunity to bid on the contract to construct the Tenant Improvements. Landlord will consult with Tenant in the final selection therein Substantially Complete as defined below one hundred twenty (120) calendar days from receipt of a contractor and the letting of any contract to construct the Tenant Improvements. Tenant shall not unreasonably object to the selection of a contractor chosen by Landlord or the terms of the contract building permit for the construction of the Tenant Interior Improvements agreed (“Best Efforts Completion Date”). Landlord agrees to commence construction after approval of the Budget, (but in no event prior to 11/15/88), and diligently pursue completion of construction. If on the date which is one hundred twenty (120) calendar days after the date Landlord receives said building permit for the construction of the Tenant Interior Improvements (“Rent Credit Date”) the Tenant Interior Improvements are not yet Substantially Complete, Tenant shall receive a credit against rent otherwise payable equal to two days of rent for every one day of delay subsequent to such date and before the Improvements are Substantially Complete. Notwithstanding the foregoing, the Best Efforts Completion Date and the Rent Credit Date shall be extended one day for every day of delay in completion caused by labor strikes, material shortages, inclement weather, or other causes beyond the reasonable control of Landlord up to a maximum extension period of two (2) months, and shall be further extended one day for every day of delay caused by Tenant, either from interference with Landlord’s work, or as a consequence of change orders requested by Tenant. However, the Best Efforts Completion Date and the Rent Credit Date shall not be extended as a consequence of any delay caused by Landlord. Except as provided above, if Landlord, for any reason whatsoever, cannot deliver possession of either Building to Tenant on or before the date by which Landlord is to use its best efforts to complete construction of Tenant Interior Improvements for the Building, as specified, this Lease shall not be void or voidable, nor shall Landlord be liable to Tenant for any loss or damage resulting therefrom; but in that event the termination date of the Lease to expire on the date which is one hundred twenty (120) months from the date on which the Building is first Substantially Complete.
Appears in 1 contract
Samples: Lease Agreement (Supertex Inc)
CONSTRUCTION AND POSSESSION. The Tenant 4.1 Landlord shall construct the Site Improvements shall be constructed by independent contractors to be employed by and under the supervision of Landlord, as general contractor, Building Shell in accordance with plans prepared by Dennxx Xxxxx xxx Associatesthe Site Plan and Building Shell Plans at Landlord's expense, including but not limited to be attached as Exhibit "B" ("Working Drawings"). Landlord all construction necessary to allow the issuance of a certificate of occupancy upon completion of the Tenant Improvements.
4.2 Tenant shall construct the Tenant Improvements in accordance with all existing the Tenant Improvements Plans at Tenant's expense, including the expense of design, permitting and construction, subject to Landlord providing the Tenant Improvement Allowance described in Section 4.3 below. In that part of the Premises to be left in "shell" condition pursuant to the Tenant Improvement Plans, which shall consist of no more than 7,000 square feet of Rentable Area, Tenant shall install at a minimum the mechanical equipment for the anticipated future load capacity of the space (but not the duct work and distribution system), a fully operational fire sprinkler system, a demising wall to separate the "shell" space from the balance of the Premises, and lighting, exiting and other improvements required by applicable municipallaw for health and safety reasons. The Tenant Improvement Plans, localand any revisions and supplements thereto, state shall be subject to the approval of Landlord, which approval shall not be unreasonably withheld or delayed. In the event of any unresolved dispute between Landlord and federal lawsTenant regarding approval of the Tenant Improvement Plans, statutes, rules, regulations the dispute shall be promptly resolved by binding arbitration under the Commercial Rules of the American Arbitration Association. Tenant shall obtain and ordinances. provide to Landlord a certificate of occupancy upon completion of the Tenant Improvements.
4.3 Landlord shall be responsible contribute for and shall pay the cost of Tenant Improvements the amount of $1,465,000. By written notice given to Landlord prior to February 28, 1999, Tenant may require Landlord to contribute for the cost of Tenant Improvements up to an additional $65.00 per square foot to fully improve some or all of the no more than 7,000 square feet left in "shell" condition, in which event the monthly installment of Basic Annual Rent will be increased by the following formula: Divide the amount of Four Hundred Eighty-Eight Thousand Four Hundred Five Landlord's additional contribution by the amount of additional space so improved, and No/100 Dollars multiply the quotient by $0.0127 divided by the ratio of the additional improved space to the total 24,000 square feet of the Premises, rounded up to the nearest 1/10th of one percent. By way of example, if Landlord contributes an additional $130,000 to improve 2,000 square feet of the 7,000 square feet left in "shell" space, the Basic Annual Rent will be increased an additional $0.069 per square foot per month, from $1.638 to $1.707 per square foot, calculated as follows: ($488,405.00130,000/2,000) x $0.0127 = $0.8255, $0.8255 / (2,000/24,000) = $0.069. In addition, if the no more than 7,000 square feet left in "shell" condition are improved with Tenant Improvements costing at least $15.00 per square foot, and the balance of the Premises are improved with Tenant Improvements costing at least $80.00 per square foot, Tenant may require Landlord, by written notice given to Landlord prior to February 28, 1999, to contribute up to an additional $5.00 per square foot for the fully-improved space, in which event the monthly installment of Basic Annual Rent shall be increased in the ratio of $.01 per square foot for every $24,000 so contributed by Landlord. Should Tenant use less than the initial $1,465,000 Landlord is obligated to contribute for Tenant Improvements, the monthly installment of Basic Annual Rent shall be reduced in the ratio of $0.0123 per square foot for each $24,000 not contributed by Landlord, but to no less than $1.534 per square foot. By way of example, if Landlord contributes only $1,400,000, the monthly installment of Basic Annual Rent would be reduced $0.033 per square foot, from $1.638 to $1.605 per square foot, calculated as follows: $65,000/24,000 x $0.0123 = $0.033. The cost of Tenant Improvements in excess of the costs to be borne by Landlord as set forth herein shall be paid by Tenant (except that Tenant shall be required to pay for only Tenant's half of any demising walls separating the Premises from space occupied by another tenant in the Building). The entire amount to be contributed by Landlord for the cost of Tenant Improvements under this Section 4.1 shall hereinafter be called the "Tenant Improvement Allowance"). In the event the cost of Tenant Improvements is less than the The Tenant Improvement Allowance, the monthly rental under the f case Allowance shall be reduced at disbursed by Landlord as work progresses pursuant to the rate requirements of Fifteen Dollars ($15.00) per month for each One Thousand Dollars ($1,000.00) its construction lender as set forth in Exhibit "H", concurrently with Tenant's progress payments of its pro rata share of the Tenant Improvement Allowance not used. The cost budget attached as Exhibit "E".
4.4 Landlord shall tender possession of the Premises to Tenant for construction of the Tenant Improvements including fit-up of special areas shall include a fee of eight and one half percent (8.5%) to cover all Landlord's Costs and Expenses including but riot limited to: a field superintendent temporary on-site facilities; home office administration, supervisionImprovements, and coordination; financing feesfor occupancy by Tenant thereafter, promptly upon execution of this Lease. Tenant agrees that in the event possession of the Premises is not promptly tendered to Tenant, this Lease shall not be void or voidable and construction interest Landlord hereby guarantees thatshall not be liable to Tenant for any loss or damage resulting therefrom. However, under no circumstanceif possession of the Premises is not tendered to Tenant by December 1, will 1998, the expense Term Commencement Date set forth in Section 2.1.7(a) shall be postponed one day for each day of such delay after December 1, 1998. Without limiting the generality of the foregoing, Tenant Improvements exceed the said allowance without Tenant's prior approval Tenant shall have the expressly waives any right to approve terminate this Lease because of delays in completion of construction of the budget Premises.
4.5 Tenant understands that the Site Improvements and Building Shell will not be complete at the time possession of the Premises is tendered to Tenant for construction of the Tenant Improvements prior to the Landlord's contracting for the improvements. If the cost of the Tenant improvements exceed the Tenant Improvement Allowance by virtue of Tenant's written approvalImprovements, Tenant shall pay for but will be in a condition such excess costs in cash within thirty (30) days after Landlord has provided Tenant with evidence that Landlord's progress payments to subcontractors has exceeded said Tenant Improvement budget. All costs for Tenant Improvements shall be fully documented to and verified by Tenant. Anything to the contrary in the foregoing notwithstanding, Landlord shall provide Tenant with a list of contractors to whom Landlord proposes to let the contract for the Tenant Improvements to be constructed by Landlord hereunder. Tenant shall promptly notify Landlord of any reasonable objections to the use of any such contractor and shall also provide Landlord with the name of any contractor Tenant desires to have an opportunity to bid on the contract to construct the Tenant Improvements. Landlord will consult with Tenant in the final selection of a contractor and the letting of any contract to construct the Tenant Improvements. Tenant shall not unreasonably object to the selection of a contractor chosen by Landlord or the terms of the contract for the construction of the Tenant Improvements agreed can commence. Landlord shall complete construction of the Site Improvements and Building Shell no later than the date Tenant completes construction of the Tenant Improvements. In the event that the Site Improvements and Building Shell are not completed by the date Tenant completes the Tenant Improvements, neither the term of this Lease nor Tenant's obligation to by Landlordpay Rent shall commence until the date a certificate of occupancy for the Premises would have been issued but for such delay. If the delay persists for more than four (4) months after the completion of the Tenant Improvements, Tenant at its election may terminate this Lease.
4.6 Landlord and Tenant shall diligently and in good faith cooperate with one another, and shall cause their architects and contractors to cooperate with one another, to insure timely and cost effective design, permitting and construction of the Project Work.
Appears in 1 contract
Samples: Lease (Cytel Corp/De)
CONSTRUCTION AND POSSESSION. The Tenant Improvements shall be constructed by independent contractors to be employed by and under the supervision of Landlord, as general contractor, in accordance with plans prepared by Dennxx Xxxxxx Xxxxx xxx & Associates, to be attached as Exhibit "B" ("Working Drawings"). Inc. Landlord shall construct the Tenant Improvements in accordance with all existing applicable municipal, local, state and federal laws, statutes, rules, regulations and ordinances. Landlord shall be responsible for and shall pay the cost of the Tenant Improvements up to the amount of Six Hundred Sixty Four Thousand Seven Hundred Eighty-Eight Thousand Four Hundred Five Ninety and No/100 Dollars ($488,405.00664,790.00) ("Tenant Improvement Allowance"). In the event the cost of Tenant Improvements is more than the Tenant Improvement Allowance, the monthly rental under the Lease shall be increased at the rate of Fifteen Dollars ($15.00) per month for each One Thousand Dollars ($1,000.00) of the increase in the Tenant Improvement Allowance up to a maximum increase in the Tenant Improvement Allowance of Three Hundred Thirty Two Thousand Three Hundred Ninety Five and No/100 Dollars ($332,395.00). In the event the cost of Tenant Improvements is less than the Tenant Improvement Allowance, the monthly rental under the f case Lease shall be reduced at the rate of Fifteen Ten Dollars ($15.0010.00) per month for each One Thousand Dollars ($1,000.00) of the Tenant Improvement Allowance not used. The cost of the Tenant Improvements including fit-up of special areas shall include a fee of eight and one half Nine percent (8.59%) to cover all Landlord's Costs and Expenses including but riot limited toof the following: a field superintendent superintendent, temporary on-site facilities; home office administration, supervision, and coordination; financing fees, and construction interest Landlord hereby guarantees that, under no circumstance, will the expense for Tenant Improvements exceed the interest. Costs in excess of said allowance without Tenant's prior approval Tenant shall have the right to approve the budget of the Tenant Improvements prior to the Landlord's contracting for the improvements. If the cost of the Tenant improvements exceed the Tenant Improvement Allowance Allowance, if any, shall be paid for by virtue of Tenant's written approval, Tenant shall pay for such excess costs in cash within thirty ten (3010) days after Landlord has provided Tenant with evidence that Landlord's progress payments to subcontractors sub-contractors has exceeded said Tenant Improvement budget. All costs for Tenant Improvements shall be fully documented to and verified by Tenant. Anything to Landlord and Tenant have approved the contrary in preliminary working drawings ("Preliminary Working Drawings") attached as Exhibit "B" and the foregoing notwithstandingpreliminary budget for the Tenant Improvement costs ("Preliminary Budget") attached as Exhibit "C". Based on this information, Landlord shall provide Tenant with a list of contractors to whom Landlord proposes to let prepare the contract final working drawings ("Final Working Drawings") attached as Exhibit "D" and final budget for the Tenant Improvements Improvement costs ("Final Budget") attached as Exhibit "E". In the event the Final Budget exceeds the Tenant Improvement Allowance, Landlord shall have the right to require Tenant to post a letter to credit to secure Tenant's reimbursement obligation for the difference between the Final Budget and the Tenant Improvement Allowance. In the event Tenant makes any changes to the Final Working Drawings which cause Landlord's construction schedule to be constructed by Landlord hereunder. Tenant delayed, the Commencement Date shall promptly notify Landlord occur one (1) day in advance of any reasonable objections to the use Substantial Completion as defined below for each day of any such contractor and shall also provide Landlord with the name of any contractor Tenant desires to have an opportunity to bid on the contract to construct the Tenant Improvements. Landlord will consult with Tenant in the final selection of a contractor and the letting of any contract to construct the Tenant Improvements. Tenant shall not unreasonably object to the selection of a contractor chosen by Landlord or the terms of the contract for the construction of the Tenant Improvements agreed to by Landlorddelay.
Appears in 1 contract
Samples: Sublease (Concentric Network Corp)
