Common use of Landlord’s Interior Improvements Allowance Clause in Contracts

Landlord’s Interior Improvements Allowance. Landlord agrees to furnish Tenant with an Interior Improvement allowance of One Hundred Twenty and no/100 Dollars ($120.00) per square foot of gross leasable area within the building (e.g., $13,174,320.00 based on the 109,786+ square foot Building and not on the total Building size of 111,465 ± square feet) (hereinafter referred to as the “Interior Improvement Allowance”). In addition to the Interior Improvement Allowance, Landlord agrees to reimburse Tenant for fifty percent (50%) of Tenant’s out of pocket cost, up to a maximum of an aggregate total amount of $50,000 for both Buildings 5 and 6, for any costs incurred by Tenant which are necessary to remediate problems in the slab floor of the Premises caused by moisture and cracking in excess of what would be expected for a building in the Ardenwood area. The excess moisture and excess cracking, if any, shall reasonably be determined by a third party professional by making moisture vapor tests and by taking floor core samples from the first floor of the Premises. The parties hereto understand and agree, that said reimbursement shall not include any cost Tenant may incur for testing or samples or for any cost other than the cost to correct the excessive moisture and excessive cracking of said floor as reflected in the results from the aforementioned tests (which cost to correct excludes normal cement floor cracking and normal moisture vapor for buildings in the Ardenwood area). Said test shall be performed as soon as reasonably possible under Tenant‘s direction and a report shall be delivered to both parties within thirty (30) days of the execution of this Lease. Landlord shall reimburse Tenant for its share as referenced above within thirty (30) days of receipt of proof of payment from Tenant and an unconditional signed lien release. Notwithstanding anything to the contrary herein, Landlord shall not provide an allowance on the Building Connector. The Interior Improvement Allowance shall be considered Landlord’s total monetary contribution with respect to the Interior Improvements, which allowance shall be used for the payment of the direct cost of constructing the approved Interior Improvements. Tenant is obligated to pay directly all costs for permits, license, and fees of any type, builder’s risk insurance, real property taxes (as referenced in Paragraph 8 (“Tax Increases During Construction Period”) and for its furniture, lab equipment, personal property, trade fixtures, and the Building Connector (collectively “Non-Interior Improvement Items”) The parties agree that none of Landlord’s Interior Improvement Allowance shall be used for Non-Interior Improvement Items. Notwithstanding anything to the contrary herein, the Interior Improvement Allowance shall be used only for real property improvements.