Common use of Cost Budget Clause in Contracts

Cost Budget. Prior to the commencement of the construction of the Improvements, and after Tenant has accepted all bids for the Improvements, Tenant shall provide Landlord with a detailed breakdown, by trade, of the final costs to be incurred or which have been incurred, as set forth more particularly in Sections 2.2.1.1 through 2.2.1.8, above, in connection with the design and construction of the Improvements to be performed by or at the direction of Tenant or the Contractor, which costs form a basis for the amount of the Contract (the "Final Costs"). Prior to the commencement of construction of the Improvements, Tenant shall determine the amount (the "Over-Allowance Amount") by which the Final Costs exceed the Improvement Allowance. Tenant will also determine the ratio of the Over-Allowance Amount to the Final Costs (e.g., if the Over-Allowance Amount were to be One Million One Hundred Seventy-Four Thousand Eight Hundred Twenty-Four and 00/100 Dollars ($1,174,824.00), the ratio would be sixteen point six percent (16.6%) Over-Allowance Amount and eighty-three point four percent (83.4%) Improvement Allowance). The ratio applicable to the Over-Allowance Amount may be referred to herein as "Tenant's Ratio") and the ratio applicable to the Improvement Allowance may be referred to herein as "Landlord's Ratio." Tenant's determination of the Over-Allowance Amount, Tenant's Ratio and Landlord's Ratio are subject to Landlord's reasonable approval. Tenant shall pay Tenant's Ratio of the amounts due to the Contractor at the same time Landlord makes its monthly disbursement of the Landlord's Ratio of the amounts due to the Contractor in accordance with Section 2.2 above. In the event that, after the Final Costs have been delivered by Tenant to Landlord, the costs relating to the design and construction of the Improvements shall increase in a way that results in the Final Costs being in excess of the Improvement Allowance (or otherwise further increases the amount by which the Final Costs are in excess of the Improvement Allowance), such excess shall be paid by Tenant out of its own funds, but Tenant shall continue to provide Landlord with the documents described in Sections 2.2.2.1(i), (ii), (iii) and (iv) of this Work Letter, above, for Landlord's approval, prior to Tenant paying such costs.

Cost Budget. Prior to the commencement of the construction of the Improvements, and after Tenant has accepted all bids for the Improvements, Tenant shall provide Landlord with a detailed breakdown, by trade, of the final costs to be incurred or which have been incurred, as set forth more particularly in Sections 2.2.1.1 through 2.2.1.8, above, in connection with the design and construction of the Improvements to be performed by or at the direction of Tenant or the Contractor, which costs form a basis for the amount of the Contract (the "Final Costs"). Prior to the commencement of construction of the Improvements, Tenant shall determine the amount (the "Over-Over­- Allowance Amount") by which the Final Costs exceed the Improvement Allowance. Tenant will also determine the ratio of the Over-Allowance Over­-Allowance Amount to the Final Costs (e.g., if the Over-Allowance Over­-Allowance Amount were to be One Million One Hundred Seventy-Four Seventy­-Four Thousand Eight Hundred Twenty-Four Twenty­-Four and 00/100 Dollars ($1,174,824.00), the ratio would be sixteen point six percent (16.6%) Over-Allowance Over­-Allowance Amount and eighty-three eighty­three point four percent (83.4%) Improvement Allowance). The ratio applicable to the Over-Allowance Over­-Allowance Amount may be referred to herein as "Tenant's Ratio") and the ratio applicable to the Improvement Allowance may be referred to herein as "Landlord's Ratio." Tenant's determination of the Over-Allowance Over-­Allowance Amount, Tenant's Ratio and Landlord's Ratio are subject to Landlord's reasonable approval. Tenant shall pay Tenant's Ratio of the amounts due to the Contractor at the same time Landlord makes its monthly disbursement of the Landlord's Ratio of the amounts due to the Contractor in accordance with Section 2.2 above. In the event that, after the Final Costs have been delivered by Tenant to Landlord, the costs relating to the design and construction of the Improvements shall increase in a way that results in the Final Costs being in excess of the Improvement Allowance (or otherwise further increases the amount by which the Final Costs are in excess of the Improvement Allowance), such excess shall be paid by Tenant out of its own funds, but Tenant shall continue to provide Landlord with the documents described in Sections 2.2.2.1(i), (ii), (iii) and (iv) of this Work Letter, above, for Landlord's approval, prior to Tenant paying such costs.

Cost Budget. Prior to the commencement of the construction of the Improvements, and after Tenant has accepted all bids for the Improvements, Tenant shall provide Landlord with a detailed breakdown, by trade, of the final costs to be incurred or which have been incurred, as set forth more particularly in Sections 2.2.1.1 through 2.2.1.8, above, in connection 712812.03/WLA 214064-00120/9-26-13/gjn/gjn -8- 0000 XXXXXXXX XXXXX, XXX XXXXX [Second Amendment/Substitute Premises Amendment] [Entropic Communications, Inc.] with the design and construction of the Improvements to be performed by or at the direction of Tenant or the Contractor, which costs form a basis for the amount of the Contract (the "Final Costs"). Prior to the commencement of construction of the Improvements, Tenant shall determine the amount (the "Over-Allowance Amount") by which the Final Costs exceed the Improvement Allowance. Tenant will also determine the ratio of the Over-Allowance Amount to the Final Costs (e.g., if the Over-Allowance Amount were to be One Million One Hundred Seventy-Four Thousand Eight Hundred Twenty-Four and 00/100 Dollars ($1,174,824.00), the ratio would be sixteen point six percent (16.6%) Over-Allowance Amount and eighty-three point four percent (83.4%) Improvement Allowance). The ratio applicable to the Over-Allowance Amount may be referred to herein as "Tenant's Ratio") and the ratio applicable to the Improvement Allowance may be referred to herein as "Landlord's Ratio." Tenant's determination of the Over-Allowance Amount, Tenant's Ratio and Landlord's Ratio are subject to Landlord's reasonable approval. Tenant shall pay Tenant's Ratio of the amounts due to the Contractor at the same time Landlord makes its monthly disbursement of the Landlord's Ratio of the amounts due to the Contractor in accordance with Section 2.2 above. In the event that, after the Final Costs have been delivered by Tenant to Landlord, the costs relating to the design and construction of the Improvements shall increase in a way that results in the Final Costs being in excess of the Improvement Allowance (or otherwise further increases the amount by which the Final Costs are in excess of the Improvement Allowance), such excess shall be paid by Tenant out of its own funds, but Tenant shall continue to provide Landlord with the documents described in Sections 2.2.2.1(i), (ii), (iii) and (iv) of this Work Letter, above, for Landlord's approval, prior to Tenant paying such costs.

Cost Budget. Prior to the commencement of the construction of the Tenant Improvements, and after Tenant has accepted all bids for the Tenant Improvements, Tenant shall provide Landlord with a written detailed breakdowncost breakdown (the “Final Costs Statement”), by trade, of the final costs to be incurred incurred, or which have been incurred, as set forth more particularly in Sections Section 2.2.1.1 through 2.2.1.8, 2.2.1.8 above, in connection with the design and construction of the Tenant Improvements to be performed by or at the direction of Tenant or the Contractor, Contractor (which costs form a basis for the amount of the Contract construction contract with the Contractor, if any (the "“Final Costs"”). Prior Tenant shall be responsible for all the Final Costs, and Tenant shall pay all such costs directly to the commencement of construction of Contractor or other party requesting payment as and when due, provided that nothing contained in this sentence shall be construed to waive Tenant’s right to receive the ImprovementsTenant Improvement Allowance, the Additional Tenant shall determine Improvement Allowance, the amount (HVAC Allowance or the "Over-Allowance Amount") by which Roof Allowance. In addition, to the extent the Final Costs exceed the Tenant Improvement Allowance. Allowance and the Additional Tenant will also determine Improvement Allowance (“Over Allowance Amount”), Tenant shall pay, concurrently with each disbursement by Landlord pursuant to Section 2.2.2, a pari passu portion of the Tenant Improvement costs subject to such request, equal to the ratio of obtained by dividing the Over-Over Allowance Amount to by the Final Costs (e.g.“Pro Rata Share”), multiplied by portion of the Tenant Improvement costs subject to such request. For purposes of illustration only, if the Over-Final Costs are $500,000, the total allowance payable by Landlord (i.e., the Tenant Improvement Allowance Amount were and the Additional Tenant Improvement Allowance) is $250,000, and the applicable bills and invoices submitted to be One Million One Hundred Seventy-Four Thousand Eight Hundred Twenty-Four and 00/100 Dollars Landlord for a disbursement pursuant to Section 2.2.2 is $100,000, Landlord would disburse $50,000 ($1,174,824.00250,000/$500,000 x $100,000), and Tenant would pay the ratio would be sixteen point six percent (16.6%) Over-Allowance Amount and eighty-three point four percent (83.4%) Improvement Allowance). The ratio applicable to the Over-Allowance Amount may be referred to herein as "Tenant's Ratio") and the ratio applicable to the Improvement Allowance may be referred to herein as "Landlord's Ratio." Tenant's determination of the Over-Allowance Amount, Tenant's Ratio and Landlord's Ratio are subject to Landlord's reasonable approval. Tenant shall pay Tenant's Ratio of the amounts due to the Contractor at the same time Landlord makes its monthly disbursement of the Landlord's Ratio of the amounts due to the Contractor in accordance with Section 2.2 aboveremaining $50,000. In the event that, after the Final Costs have been delivered by Tenant Landlord to LandlordTenant, the costs relating to the design and construction of the Tenant Improvements shall increase in a way that results in the Final Costs being change, any additional costs necessary to such design and construction in excess of the Improvement Allowance (or otherwise further increases the amount by which the Final Costs are in excess shall, to the extent they exceed the remaining balance of the Tenant Improvement Allowance), such excess shall be paid by Tenant out to Landlord in the same method as the payment by Tenant of its own funds, but Tenant shall continue to provide Landlord with the documents described in Sections 2.2.2.1(i), (ii), (iii) and (iv) of this Work Letter, above, for Landlord's approval, prior to Tenant paying such costsOver-Allowance Amount set forth herein.

Cost Budget. Prior to the commencement of the construction of the Improvements, and after Tenant has accepted all bids for the Improvements, Tenant shall provide Landlord with a detailed breakdown, by trade, of the final costs to be incurred or which have been incurred, as set forth more particularly in Sections 2.2.1.1 through 2.2.1.82.2.1.9, above, in connection with the design and construction of the Tenant Improvements to be performed by or at the direction of Tenant or the Contractor, which costs form a basis for the amount of the Contract (the "Final Costs"). Prior , and the date Tenant provides such Final Costs to Landlord shall be known as the commencement of construction of the Improvements"Final Costs Delivery Date." For purposes hereof, Tenant shall determine the amount (the "Over-Allowance Amount"" shall be equal to the difference between (i) by which the amount of the Final Costs exceed and (ii) the Improvement Allowance. Tenant will also determine the ratio sum of the amount of the Tenant Improvement Allowance plus the amount of the TIA Increase, if any, which Tenant elects to utilize pursuant to the terms of Section 2.2.2 of this Tenant Work Letter. The Over-Allowance Amount shall be delivered from Tenant to Landlord (on a pro-rata basis, based upon the Final Costs percentage of the Tenant Improvement completed) within ten (e.g., if the Over-Allowance Amount were to be One Million One Hundred Seventy-Four Thousand Eight Hundred Twenty-Four and 00/100 Dollars ($1,174,824.00), the ratio would be sixteen point six percent (16.6%10) Over-Allowance Amount and eighty-three point four percent (83.4%) Improvement Allowance). The ratio applicable to the Over-Allowance Amount may be referred to herein as "days of Tenant's Ratio") and the ratio applicable to the Improvement Allowance may be referred to herein as "Landlord's Ratio." Tenant's determination receipt of an invoice for such portion of the Over-Allowance Amount, Tenant's Ratio and Landlord's Ratio are subject to Landlord's reasonable approval. Tenant shall pay Tenant's Ratio of the amounts due to the Contractor at the same time Landlord makes its monthly disbursement of the Landlord's Ratio of the amounts due to the Contractor in accordance with Section 2.2 above. In the event that, after the Final Costs have been delivered by Tenant to LandlordDelivery Date, the costs relating any revisions, changes, or substitutions shall be made to the design and construction of Construction Drawings or the Improvements shall increase Tenant Improvements, any additional costs which arise in a way that results in the Final Costs being in excess of the Improvement Allowance (connection with such revisions, changes or otherwise further increases the amount by which the Final Costs are in excess of the Improvement Allowance), such excess substitutions or any other additional costs shall be paid by Tenant out to Landlord immediately upon Landlord's request as an addition to the Over-Allowance Amount. In addition, if the Final Working Drawings or any amendment thereof or supplement thereto shall require alterations in the Base, Shell and Core (as contrasted with the Tenant Improvements), and if Landlord in its sole and exclusive discretion agrees to any such alterations, and notifies Tenant of its own fundsthe need and cost for such alterations, but then Tenant shall continue pay the cost of such required changes upon receipt of bills therefor. Tenant shall pay all direct architectural and/or engineering fees in connection therewith, plus a reasonable administration fee to provide Landlord with the documents described in Sections 2.2.2.1(i), (ii), (iii) and (iv) of this Work Letter, above, for Landlord's approval, prior to Tenant paying such costs.