Landlord’s Contribution Clause Samples
The 'Landlord’s Contribution' clause defines the amount or type of financial support the landlord will provide toward the tenant’s costs, typically related to improvements or alterations of the leased premises. In practice, this may involve the landlord agreeing to pay a set sum or reimburse the tenant for specific construction or fit-out expenses, often subject to conditions such as approval of plans or completion of work to a certain standard. The core function of this clause is to clarify the landlord’s financial obligations, thereby reducing disputes and ensuring both parties understand the extent of the landlord’s support for tenant improvements.
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Landlord’s Contribution. Landlord shall contribute rent abatements up to the total amount of ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000.00) (“Landlord’s Contribution”) on account of the cost of refurbishing the Leased Premises including design and engineering costs. Landlord’s Contribution shall be available to Tenant only as follows:
(i) Tenant shall submit to Landlord a written request to utilize a portion of Landlord’s Contribution as an abatement of one or more monthly installments of Base Rent (as hereinafter defined) (each a “Contribution Request”); (ii) each Contribution Request shall include evidence reasonably satisfactory to Landlord that Tenant has actually paid to contractors and other relevant professionals an amount at least equal to the amount sought in the Contribution Request in connection with construction, design and or other service and materials directly related to and necessary in connection with the Expansion Project (“Refit Expenses”); (iii) unless a Contribution Request is disputed by Landlord within ten (10) days from receipt by Landlord, Tenant shall be entitled to abatement of Base Rent monthly installment(s) first payable not less than thirty (30) days from submission of such Contribution Request to Landlord; (iv) in addition to the foregoing: (A) Tenant shall be limited to no more than three (3) contribution requests per year; (B) each Contribution Request shall be in an amount not less than the lesser of the remaining unused portion of Landlord’s Contribution and the Base Rent payable for one (1) month and shall specify how Tenant intends to apply the Base Rent abatements to upcoming monthly installment(s) of Base Rent; and (C) monthly abatements of Base Rent shall be applied to whole months and Tenant shall have no right to a partial abatement of monthly Base Rent other than with respect to the last Contribution Request.
Landlord’s Contribution. (A) As an inducement to Tenant entering into this Lease, Landlord shall apply an allowance not to exceed FOUR HUNDRED SEVENTY-SEVEN THOUSAND THREE HUNDRED and 00/100 Dollars ($477,300.00) to be used by Landlord to pay for the cost of the performance of Landlord’s Work (including the cost of all necessary permits and licenses, architectural and construction management fees) (“Landlord’s Contribution”). Tenant shall be responsible for paying any sums incurred to complete the Landlord’s Work in excess of the Landlord’s Contribution. Landlord shall have no duty to proceed with Landlord’s Work if the current Budget anticipates Excess Costs and Tenant has not timely paid sums in excess of the Landlord’s Contribution. In addition, Tenant shall be exclusively responsible for installing Tenant’s telecommunication equipment and cabling, and moving into (or out of) the Replacement Premises, including all costs associated therewith
(B) Conditions. Notwithstanding anything to the contrary herein contained:
(i) Landlord shall have no obligation to advance funds on account of Landlord’s Contribution unless and until Landlord has received the requisition in question.
(ii) Except with respect to work and/or materials previously paid for by Tenant, as evidenced by paid invoices and written lien waivers provided to Landlord, Landlord shall have the right to have Landlord’s Contribution paid to directly to Tenant’s contractor(s), consultants, service providers, and vendor(s). In no event shall Landlord’s Contribution be applied to any fees paid to Tenant or any affiliate of Tenant.
(iii) Landlord shall have no obligation to pay Landlord’s Contribution in respect of any requisition submitted after the date which is one (1) year after the Replacement Premises Commencement Date.
(iv) Tenant shall not be entitled to any unused portion of Landlord’s Contribution.
(v) Landlord’s obligation to pay any portion of Landlord’s Contribution shall be conditioned upon there existing no Default of Tenant under the Lease at the time that Landlord would otherwise be required to make such payment.
Landlord’s Contribution. (a) Landlord agrees to pay to Tenant an amount not to exceed the applicable Landlord's Contribution toward the cost of the Initial Installations for Area A and Area B, provided as of the date on which Landlord is required to make payment thereof pursuant to paragraph 9(b), (i) the Lease is in full force and effect, and (ii) no Event of Default then exists. Tenant shall pay all costs of the Initial Installations in excess of Landlord's Contribution. Landlord's Contribution shall be payable solely on account of labor directly related to the Initial Installations and materials delivered to Area A and Area B in connection with the Initial Installations, except that Tenant may apply up to 5% of Landlord's Contribution to pay "soft costs", consisting of architectural, consulting, engineering and legal fees incurred in connection with the Initial Installations. Tenant shall not be entitled to receive any portion of Landlord's Contribution not actually expended by Tenant in the performance of the Initial Installations in accordance with this paragraph 8, nor shall Tenant have any right to apply any unexpended portion of Landlord's Contribution as a credit against Rent or any other obligation of Tenant hereunder. Upon the completion of the Initial Installations and satisfaction of the conditions set forth in paragraph 9(b), or upon the occurrence of the date which is twelve months after the Rent Commencement Date for the applicable space, whichever first occurs, any amount of Landlord's Contribution which has not been previously disbursed shall be retained by Landlord.
(b) Landlord shall pay Landlord's Contribution for Area A and Area B to Tenant following commencement of Tenant's business operations in Area A and Area B, respectively, and the final completion of the Initial Installations in such space, within 30 days after submission by Tenant to Landlord of a written requisition therefor, signed by the chief financial officer of Tenant and accompanied by (i) copies of paid invoices covering all of the Initial Installations, (ii) a written certification from Tenant's architect stating that the Initial Installations described on such invoices have
Landlord’s Contribution. Tenant shall be entitled to a landlord contribution toward the cost of preparing the Premises for Tenant’s use and occupancy and the construction of alterations and improvements therein in the amount of $3,408,910.00 (the “Landlord Contribution”), which shall be applied to the construction of the Tenant Improvements in accordance with the terms of this Work Letter. Provided and on condition that Tenant is not in material default beyond applicable notice and cure periods at the time of application, Tenant shall be entitled to apply any unused portion of the Landlord’s Contribution as a credit against Rent due under the Lease as amended by the Amendment. Tenant is not required to use any portion of the Landlord Contribution toward the Tenant Improvements, and may apply any portion of the Landlord Contribution toward either the Tenant Improvements or toward credit against Rent due under the Lease, at Tenant’s sole discretion. Should Landlord fail to disburse the Landlord Contribution as required herein, Tenant shall have the right to elect, by written notice to Landlord within thirty (30) days after such default, to offset against monetary obligations owed by Tenant under the Lease, as amended by the Amendment, in the amount that Landlord was obligated to but did not disburse. Except as otherwise provided in this Work Letter or Section 4(a) of the Amendment, in no event shall Landlord be obligated to make disbursements pursuant to this Work Letter (i) in a total amount which exceeds the Landlord’s Contribution, or (ii) if Tenant fails to pay any portion of any “Over-Allowance Amount,” as that term is defined in Section 4.2.2 of this Work Letter.
Landlord’s Contribution. Provided that this Lease is in full force and no monetary Event of Default shall have occurred and is continuing hereunder and provided that there are no outstanding mechanic’s lien, financing statement or other lien, charge or order in existence filed against Landlord, or against all or any portion of the Premises, the Building or the Real Property due to any act or omission of Tenant or any Tenant Party, that has not been actually released and discharged of record or bonded or insured over to the reasonable satisfaction of Landlord, Landlord shall contribute, as hereinafter provided, an amount (“Landlord’s Contribution”) equal to a maximum of Six Hundred Forty Seven Thousand Two Hundred Eighty and 00/100 Dollars ($647,280.00) (based upon the product of $40.00 multiplied by 16,182 Rentable Square Feet) toward Tenant’s actual cost of Tenant’s Initial Alterations to be performed by or on behalf of Tenant and Soft Costs (as defined below) incurred in connection with Tenant’s Initial Alterations; provided, however, that no more than twenty-five percent (25%) of Landlord’s Contribution shall be applied to the reimbursement of space planning, engineering and design costs, third party construction management fees, permitting, furniture, moving and other soft costs (collectively, “Soft Costs”) and, further provided, that Tenant’s Plans for Tenant’s Initial Alterations comply with Article 4. Data and voice equipment, cabling, wiring and related expenses and the cost of Tenant’s server room (if any) shall not be deemed to be Soft Costs for this purpose.
Landlord’s Contribution. Provided that this Lease is in full force and effect, and there is no default in Tenant’s obligation to pay Fixed or additional rent, and no other material event of default shall have occurred and is then continuing hereunder (or in such event, upon the cure of any such default), Landlord shall contribute, as hereinafter provided, an amount (“Landlord’s Contribution”) equal to a maximum of Two Hundred Sixty-Five Thousand, Six Hundred Dollars ($265,600) for the Premises toward Tenant’s actual cost of Tenant’s alterations to be performed by or on behalf of Tenant in the Premises, and “soft costs” incurred in connection with Tenant’s alterations, including architectural and engineering fees and other soft costs incurred in connection with Tenant’s alterations. Soft Costs shall mean the cost of space planning, engineering and design costs, third party construction management fees, permitting, furniture, moving and other soft costs and data and voice equipment, cabling, wiring and related expenses and the cost of Tenant’s server room. Landlord shall not be obligated to commence payment of Landlord’s Contribution for the Premises until April 1, 2011.
Landlord’s Contribution. Landlord shall, in the manner hereinafter set forth, contribute up to Four Million One Hundred Eighty-four Thousand Forty and 00/100 Dollars ($4,184,040.00) (i.e., $70.00 per rentable square foot of Premises) ( “ Landlord’s Contribution ” ) towards the cost of Landlord’s Work to be performed in the Premises and as otherwise provided below in this Section 4.7. In the event that the aggregate hard and soft costs of Landlord’s Work (the “Total Cost”) exceeds Landlord’s Contribution, Tenant shall pay to Landlord the amount of such excess pari passu with the application of the Landlord’s Contribution, i.e., each month as Landlord applies Landlord’s Contribution to the Total Cost, Tenant shall contribute an amount equal to the product of (i) the total amount of the Total Cost multiplied by (ii) a fraction, the numerator of which is the amount by which the Total Cost exceeds Landlord’s Contribution and the denominator of which is the Total Cost. Notwithstanding the foregoing, after the completion of Landlord’s Work, provided Tenant has occupied the Premises for its business purposes, Tenant shall be entitled to apply any unused portion of Landlord’s Contribution towards soft costs, including cabling, furniture and moving costs. L▇▇▇▇▇▇▇ has previously paid to Tenant or T▇▇▇▇▇’s architect a space planning allowance in the amount of $6,000.20.
Landlord’s Contribution. Landlord shall have no obligation to provide any contribution to Tenant in respect of the Expansion Premises except as expressly provided in the Expansion Amendment.
Landlord’s Contribution. B-2 Landlord's Statement ........................................................ 45
Landlord’s Contribution. Landlord shall contribute an amount up to $2,238,305 ("Landlord's Contribution") toward the costs incurred for the Initial Improvements and Change Orders, including costs for engineering and architectural services and permitting and construction management fees. Landlord has no obligation to pay for costs of the Initial Improvements or Change Orders in excess of Landlord's Contribution. If the cost of the Initial Improvements and/or Change Orders exceeds the Landlord's Contribution, Tenant shall pay such overage to Landlord on a prorata basis as construction of the Initial Improvements and/or Change Orders progresses, within thirty (30) days after invoice. If Landlord's Contribution exceeds the total cost paid by Landlord toward the cost of the Initial Improvements and the Change Orders as of the Commencement Date, then, at Tenant's option, such excess shall be applied within sixty (60) days after the Completion Date as follows:
(i) a maximum of Five and No/100 Dollars ($5.00) per Rentable Square Foot shall be applied as a credit against Tenant's actual moving expenses and actual costs for its signage, phone systems and cabling [provided that no more than Two and No/100 Dollars ($2.00) per Rentable Square Foot out of such excess may be applied as a credit against Tenant's actual moving expenses], and (ii) in the event any excess remains after application under clause (i) preceding, a maximum of One and No/100 Dollar ($1.00) per Rentable Square Foot shall be applied as a credit against Tenant's first required payment of Base Rent. The Landlord Contribution amount set forth above is based on a base contribution amount of $25.00 per Rentable Square Foot within the Premises, proportionately reduced to reflect the preset delayed Commencement Dates for certain portions of the Premises as set forth in Section 2 of Appendix F. In the event Tenant triggers an earlier Commencement Date for any portion of the Premises by occupying such portion earlier than the preset dates, the Landlord Contribution shall be increased proportionately and paid within thirty (30) days after such occupancy. In addition, in the event the Rentable Square Footage of the Premises is adjusted under Section 1C of this Lease, the Landlord Contribution shall be adjusted accordingly.