Common use of Payment of Contractor Clause in Contracts

Payment of Contractor. Once Landlord and Tenant have agreed upon the Approved Bid, and a contract for the construction of the Tenant Improvements has been entered into with the Contractor, Landlord shall be responsible for making monthly progress payments to Contractor in accordance with the construction contract, subject to reimbursement by Tenant pursuant to the following procedure. Once the Approved Bid has been agreed upon, if the total Approved Bid is in excess of the Base Tenant Improvement Allowance, Tenant shall reimburse Landlord each month, within twenty (20) days of receipt of bills or invoices representing the current months’ payment obligation to the Contractor (the “Monthly Payment”), for that portion of the Monthly Payment determined by taking a fraction, the numerator of which is the difference between the Bid Price and the Base Tenant Improvement Allowance, and the denominator of which is the Approved Bid, and multiplying the Monthly Payment by such fraction. Landlord shall have no obligation to pay Contractor unless and until Landlord shall have received such sum from Tenant. Any delays in construction of the Tenant Improvements caused as a result of Tenant’s failure to timely Landlord as provided herein, shall be deemed to be a Tenant Delay for which Tenant shall be solely responsible.

Payment of Contractor. In the alternative, in Landlord’s sole and absolute discretion, Landlord may elect to allow Tenant to pay its share of the Final Bid price pursuant to the following procedure. Once Landlord and Tenant have agreed upon the Approved Bid, Final Bid and a contract for the construction of the Tenant Improvements Final Bid price has been entered into with the Contractorcontractor, Landlord shall be responsible for making monthly progress payments to Contractor the contractor in accordance with the construction contract, subject to reimbursement by Tenant pursuant to the following procedure. Once the Approved Bid has been agreed upon, if the total Approved Bid is in excess of the Base Tenant Improvement Allowance, Tenant shall reimburse Landlord each month, within twenty (20) days of receipt of bills or invoices representing the current months’ payment obligation to the Contractor contractor (the “Monthly Payment”), for that portion of the Monthly Payment determined by taking a fraction, the numerator of which is the difference between the Final Bid Price and the Base Tenant Leasehold Improvement Allowance, and the denominator of which is the Approved Final Bid, and multiplying the Monthly Payment by such fraction. Landlord shall have no obligation to pay Contractor the contractor unless and until Landlord shall have received such sum from Tenant. Any delays in construction of the Tenant Improvements caused as a result of Tenant’s failure to timely reimburse Landlord as provided herein, shall be deemed to be a Tenant Delay for which Tenant shall be solely responsible.

Payment of Contractor. Once Landlord and shall pay to the Tenant have agreed upon Contractor Landlord’s Contribution as it becomes due (subject to Landlord’s reasonable requirements including, without limitation, the Approved Biddelivery of reasonable documentation of such costs, lien waivers, and a contract for the construction of the Tenant Improvements has been entered into with the Contractorarchitects certifications). Additionally, Landlord shall, upon presentation by Tenant of proof of payment reasonably acceptable to Landlord (including, but not limited to, paid invoices, copies of canceled checks and lien waivers), pay to Tenant a portion of Landlord's Contribution equal to the amount paid by Tenant to any contractors hired directly by Tenant; provided that such contractors were approved by Landlord in writing. Tenant shall be responsible for making monthly progress the payment of all costs and expenses incurred in connection with the Tenant Improvements which exceed Landlord’s Contribution; provided that Tenant shall not be required to make any payments to the Tenant Contractor until the Landlord’s Contribution has been expended in accordance with the construction contract, subject to reimbursement by Tenant pursuant to the following procedurefull. Once the Approved Bid Landlord’s Contribution has been agreed upon, if the total Approved Bid is paid in excess of the Base Tenant Improvement Allowancefull by Landlord, Tenant shall reimburse Landlord each month, within twenty (20) days of receipt of bills or invoices representing the current months’ payment obligation to the Contractor (the “Monthly Payment”), for that portion of the Monthly Payment determined by taking a fraction, the numerator of which is the difference between the Bid Price pay all remaining costs and the Base Tenant Improvement Allowance, and the denominator of which is the Approved Bid, and multiplying the Monthly Payment by such fraction. Landlord shall have no obligation to pay Contractor unless and until Landlord shall have received such sum from Tenant. Any delays expenses incurred in construction of connection with the Tenant Improvements caused as a result of Tenant’s failure promptly upon being presented an invoice for such costs and expenses by Landlord. Notwithstanding anything to timely Landlord as provided the contrary set forth herein, in no event shall Landlord be deemed required to be a pay any for any costs in connection with the Tenant Delay for which Tenant shall be solely responsibleImprovements which, in the aggregate, exceed Landlord’s Contribution.