Construction Period Provisions Sample Clauses
Construction Period Provisions. Lessor and Lessee agree that, notwithstanding anything in the Lease or this Work Letter to the contrary, the following provisions shall apply during the Construction Period (defined below):
(a) The parties acknowledge that the estimated costs to complete the Warm Shell Work, the Market Ready Improvements and the Tenant Improvements are currently $33,000,000 as set forth on the budgets attached hereto as Schedule “F-2” and Schedule “F-4”. Lessor is responsible for paying the cost of the Warm Shell Work, estimated to be $11,400,000 as described on Schedule “F-2”. Lessor is also responsible for funding the Lessor’s Contribution (as defined in Paragraph 14(a) of the Lease) for the Market Ready Improvements in the amount of $9,900,000 and the Tenant Improvement Allowance (as defined in Paragraph 14(a) of the Lease) for the Tenant Improvements in the amount of $2,700,000. ▇▇▇▇▇▇ is responsible for reimbursing Lessor for the Tenant Improvement Shortfall (as defined in Paragraph 14(a) of the Lease), which amount is currently estimated to be $9,000,000. During the period from the Effective Date of this Lease through Substantial Completion of the Work (the “Construction Period”), the Lease also requires Lessee to prepay Base Rent in the amount of $2,160,000 and Additional Rent in the amount of $180,000 and deliver to Lessor a Security Deposit in the amount of $4,500,000 in the form of a Letter of Credit. Accordingly, ▇▇▇▇▇▇’s aggregate cash outlay during the Construction Period is expected to be $11,340,,000 compared with Lessor’s total cash outlay of $24,000,000 and estimated total project costs of $33,000,000 (with Lessee’s portion of such costs expected to be 34%, but such percentage will be reduced by the inclusion in Project Costs (defined below) of the portion of Lessor’s acquisition costs for the Project attributable to the value of the Building). All of ▇▇▇▇▇▇’s cash outlays during the Construction Period are expected to be paid directly to Lessor.
(b) Lessor agrees that, during the Construction Period, the amount it collects from Lessee (estimated to be $11,340,000), together with the amount of any obligation of Lessee to indemnify Lessor for damage claims caused by or resulting from ▇▇▇▇▇▇’s own acts or failures to act related to completion of construction, which amounts shall calculated to include (i) the accreted value of any payments previously made by Lessee plus (ii) the present value of the maximum amount that Lessee could be required to pay as of th...
Construction Period Provisions. Notwithstanding any other provision of this Lease or any of the Related Documents, the following shall apply and take priority over any other provision hereof or any of the Related Documents from the date hereof until the earlier of Completion or the Construction Period Termination Date:
(a) If Completion has not occurred prior to the Construction Period Termination Date which failure is not accepted by the Lessor as provided in Section 3(c) or extended to the extent provided in Section 2.06(c) of the Construction Agency Agreement; or
(b) Upon the occurrence of an Event of Default which is based upon a breach of Section 2.06(a) of the Construction Agency Agreement which is not funded as provided in Section 2.01 of the Construction Agency Agreement; or
(c) Upon the occurrence of an Event of Default described in Section 18(c) which is based upon the existence of any mechanics, materialmen or similar lien based upon goods or services provided to the Property which is not a Permitted Lien; or
(d) Upon the occurrence of an Event of Default described in Section 18(c) which is based upon a casualty loss of all or substantially all of the Property and Equipment; which, in any event, is both (i) unrelated to any breach by the Lessee, any Guarantor or the Construction Agent of any representation, warranty or obligation under any Related 52 Document, (ii) such event or circumstances are beyond the control of such Persons, and (iii) not caused by any fraud, misrepresentation, misapplication of funds or malfeasance of Lessee, then, in any such event, Lessee shall immediately pay to Lessor the Construction Risk Payment, whereupon this Lease shall terminate.