Common use of Costs of Pre-Development and Pre Clause in Contracts

Costs of Pre-Development and Pre. Leasing Work. AIR shall be responsible for payment of all costs and expenses of any pre-development and pre-leasing work (including, but not limited to, entitlements, zoning and environmental studies) (the “Pre-Development/Pre-Leasing Work”, and such costs and expenses related thereto, the “Pre-Development/Pre-Leasing Costs”) for a Land Bank Asset that are incurred by or on behalf of AIR (or its Affiliates) before AIR sends an Additional Property Notice to DevCo with respect to such Land Bank Asset, as well as all costs and expenses incurred by or on behalf of AIR (or its Affiliates) in connection with AIR’s consideration of whether to proceed with entering into a Master Lease for such Land Bank Asset. If and to the extent DevCo performs Pre-Development/Pre-Leasing Work with respect to a Land Bank Asset and incurs Pre-Development/Pre-Leasing Costs in connection therewith, such Pre-Development/Pre-Leasing Costs incurred by DevCo will be deemed its costs of “business development”, payable solely by DevCo (absent a specific agreement and/or alternate arrangement with AIR that has been memorialized in writing by the Parties). Notwithstanding the foregoing, in the event AIR makes an offer to DevCo, or DevCo makes an offer to AIR, for DevCo to perform any Pre-Development/Pre-Leasing Work on AIR’s behalf, and the Parties so mutually agree, then the amount of all actual, out-of-pocket Pre-Development/Pre-Leasing Costs incurred by DevCo in performing such Pre-Development/Pre-Leasing Work shall be reimbursed by AIR, together with the payment of an additional fee to DevCo, the amount of which, and the timing of payment to DevCo of the foregoing, shall be determined pursuant to the mutual agreement of the Parties.