Common use of Payment of Contribution Clause in Contracts

Payment of Contribution. Landlord shall make periodic disbursements of Landlord’s Contribution for the benefit of Tenant, not more often than once per month. Landlord shall authorize and make payment or release of monies for the benefit of Tenant to Tenant and/or the party designated by Tenant within five (5) days after receipt of a request for payment approved by Tenant and any supporting information reasonably required in good faith by Landlord. Tenant must, in order to receive a disbursement of the Landlord’s Contribution, meet all of the following criteria: (i) Tenant or Tenant’s contractors shall submit for Landlord’s approval copies of plans and specifications for Tenant’s proposed improvements; (ii) Prior to commencement of actual construction, Tenant must submit to Landlord a copy of the approved building permit(s) from the appropriate governmental authority; and (iii) Prior to receiving progress payments for the tenant improvements (subject to a 10% retention), Tenant shall submit to Landlord a statement of Tenant’s contractor or architect that the work is complete to the extent that payment is requested. Upon completion of the Work, and in order to receive the final amounts owed (including the ten percent (10%) retention amount from Landlord, Tenant shall provide Landlord with the following: (i) Written proof (a fully signed “Certificate of Occupancy”, “Certificate of Completion” or other document authorizing Tenant’s occupancy of the Premises from the appropriate governmental authority) that the improvements were substantially completed to the satisfaction of the local building department; (ii) Complete original As-Built plans and specifications; (iii) A detailed breakdown of the total costs of the Work; (iv) Tenant’s written acknowledgment that the Work is substantially complete and Tenant is reasonably satisfied with the completion of the Work, except for any punchlist items; (v) Full and final waivers of liens and contractors’ affidavits and statements, in such form as may be reasonably required by Landlord, Landlord’s title insurance company and Landlord’s construction or permanent lender, if any, from all parties performing labor or supplying materials or services in connection with the Work showing that all of said parties have been compensated in full and waiving all liens in connection with the Premises and Building. (vi) The parties will mutually cooperate to enforce any contractor warranties issued in connection with the tenant improvement work. If Landlord fails to fulfill its obligation to disburse Landlord’s Contribution following five (5) business days’ notice from Tenant and Landlord’s failure to cure within such period, Tenant shall have the following rights, which rights shall be cumulative and in addition to any rights or remedies available to Tenant under the Lease, at law or in equity; (i) to cease performance of all or any portion of the Work, or (ii) continue to perform the Work, and offset any outstanding sums plus interest at ten percent (10%) per annum against Tenant’s obligation to pay Rent next coming due under this Lease.

Payment of Contribution. Landlord shall make periodic disbursements of Landlord’s Contribution for the benefit of Tenant, not more often than once per month. Landlord shall authorize and make payment or release of monies for the benefit of Tenant to Tenant and/or the party designated by Tenant within five (5) days after receipt of a request for payment approved by Tenant and any supporting information reasonably required in good faith by Landlord. Tenant must, in order to receive a disbursement of the Landlord’s Contribution, meet all of the following criteria: (i) Tenant or Tenant’s contractors shall submit for Landlord’s approval copies of plans and specifications for Tenant’s proposed improvements; (ii) Prior to commencement of actual construction, Tenant must submit to Landlord a copy of the approved building permit(s) from the appropriate governmental authority; and (iii) Prior to receiving progress payments for the tenant improvements (subject to a 10% retention), Tenant shall submit to Landlord a statement of Tenant’s contractor or architect that the work is complete to the extent that payment is requested. Upon completion of the Work, and in order to receive the final amounts owed (including the ten percent (10%) retention amount from Landlord, Tenant shall provide Landlord with the following: (i) Written proof (a fully signed “Certificate of Occupancy”, “Certificate of Completion” or other document authorizing Tenant’s occupancy of the Premises from the appropriate governmental authority) that the improvements were substantially completed to the satisfaction of the local building department; (ii) Complete original As-Built plans and specifications; (iii) A detailed breakdown of the total costs of the Work; (iv) Tenant’s written acknowledgment that the Work is substantially complete and Tenant is reasonably satisfied with the completion of the Work, except for any punchlist items; (v) Full and final waivers of liens and contractors’ affidavits and statements, in such form as may be reasonably required by Landlord, Landlord’s title insurance company and Landlord’s construction or permanent lender, if any, from all parties performing labor or supplying materials or services in connection with the Work showing that all of said parties have been compensated in full and waiving all liens in connection with the Premises and Building. (vi) The parties will mutually cooperate to enforce any contractor warranties issued in connection with the tenant improvement work. If Landlord fails to fulfill its obligation to disburse Landlord’s Contribution following five (5) business days’ notice from Tenant and Landlord’s failure to cure within such period, Tenant shall have the following rights, which rights shall be cumulative and in addition to any rights or remedies available to Tenant under the Lease, at law or in equity; (i) to cease performance of all or any portion of the Work, or (ii) continue to perform the Work, and offset any outstanding sums plus interest at ten percent (10%) per annum against Tenant’s obligation to pay Rent next coming due under this Lease.