Common use of Manner of Reimbursement to Tenant Clause in Contracts

Manner of Reimbursement to Tenant. If the total Interior Improvement Costs exceeds the Interior Improvement Allowance, Tenant shall pay one hundred percent (100%) of each progress payment due to the contractor constructing the Interior Improvements, and submit to Landlord a request for reimbursement which bears the same relationship to the total amount of the progress payment in question as the amount Landlord is obligated to pay for the cost of constructing the Interior Improvements. For purposes of illustration only, if the total Interior Improvement cost (excluding the Non-Interior Improvement Items) of constructing the Interior Improvements is estimated to be $30,000,000.00 then Tenant’s share thereof would be $16,825,680.00 (the excess over Landlord’s total Interior Improvement Allowance of $13,174,320.00 assuming the area of the building is 109,786+ square feet), or 56.09% of the total Interior Improvements Cost. If the first progress payment due the contractor is $100,000.00 then Tenant’s share of such progress payment would be $56,090.00 (or 56.09% of such progress payment), and Tenant would submit a request to Landlord for reimbursement of 43.91% of such progress payment, or $43,910.00. With each request for reimbursement, Tenant shall provide Landlord with a copy of the related invoice(s), copies of the paid check(s) representing payment of said invoice(s) and copies of conditional lien releases signed by the general contractor in charge of the Interior Improvements. Landlord shall pay within fifteen (15) business days of receipt of all the required documents its prorata share of said payment. For each succeeding progress payment, Tenant would likewise be obligated for 56.09% thereof, with the exception that Landlord, at its option, may retain (i) a pro rata share of the final ten percent (10%) of the Interior Improvement contract until 62 days after recordation of a Notice of Completion on the Premises for which Tenant is responsible for having recorded, and (ii) if applicable, the amount of one hundred fifty percent (150%) of the claim secured by any lien which may, notwithstanding the conditional lien releases signed by such general contractor, have been filed against the Premises. If Tenant fails to pay any amount when due, then Landlord may after five (5) days written notice (but without the obligation to do so) draw on the Letter of Credit or the Security Deposit and advance such funds on Tenant’s behalf, and Tenant shall be obligated to restore the Letter of Credit to its original amount and reimburse Landlord for all costs incurred by Landlord in advancing such funds.