Example ContractsClausesDisbursement of Tenant Improvement Allowance
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Allowance. Paragraph 11 of the First Amendment is deleted and replaced with the following:

# Improvement Allowance. and have agreed that the costs of both the Phase 1 Improvements and the Phase 2 Improvements (collectively, “ Improvements”) shall be paid by (excepting the cost of the Phase 2 Demolition Plans which shall be at the sole cost of , not to exceed ), although shall provide an allowance not to exceed or per rentable square foot for both the Phase 1 Expansion Space and the Phase 2 Expansion Space to be utilized toward the cost of the Improvements (including the cost for removal and disposal of any FF&E located in the Phase 1 Expansion Space) (the “ Improvement Allowance”); provided, however, that any costs to be paid from the Improvement Allowance must be incurred and submitted to on or before , and any costs incurred or submitted to on or after , shall not be eligible for payment from the Improvement Allowance. For the avoidance of doubt, may apply all or any portion of the Improvement Allowance to eligible costs incurred to complete the Phase 1 Improvements and shall not be required to limit use of the Improvement Allowance in proportion to the Floor Area included in the Phase 1 Expansion Space.

Tenant shall exercise the 14th Floor Expansion Option, if at all, by Tenant’s delivery to Landlord of written notice thereof (the “Tenant’s Option Exercise Notice”) not later than ten (10) days after Tenant’s receipt of Landlord’s Option Notification. Tenant’s Option Exercise Notice shall advise Landlord that Tenant either # elects to lease the 14th Floor Expansion Space on the terms set forth in Landlord’s Option Notification or # elects to lease the 14th Floor Expansion Space, but desires to have the fair market rent and market tenant improvement allowance (if any) for the subject 14th Floor Expansion Space determined by appraisal in accordance with the procedures set forth in attached [Exhibit B]. If Tenant’s Option Exercise Notice does not specify whether Tenant has selected [(i) or (ii)])] from the immediately preceding sentence, Tenant shall be deemed to have selected item (i). If Tenant’s Option Exercise Notice selected item (ii), then the parties shall comply with the procedures of [Exhibit B] to determine the fair market rent and the market improvement allowance (if any) for the 14th Floor Expansion Space (with the fifteen (15) day period referred to in the first sentence of [Exhibit B] being the fifteen (15) day period following the date of Tenant’s Option Exercise Notice) and the results of the appraisal procedure shall be binding on the parties and Tenant may not revoke its exercise of the of the 14th Floor Expansion Option.

Tenant shall have until six (6) months following the Term Commencement Date (the “TI Deadline”), to submit Fund Requests (as defined in the Work Letter) to Landlord for disbursement of the unused portion of the TI Allowance, after which date Landlord’s obligation to fund any such costs for which Tenant has not submitted a Fund Request to Landlord shall expire. Base Rent shall be increased to include the amount of the Additional TI Allowance disbursed by Landlord in accordance with this Lease amortized over the portion of the initial Term occurring after the expiration of the Abatement Period (as defined below) at a rate of eight percent (8.00%) annually. The amount by which Base Rent shall be increased shall be determined as of the Term Commencement Date and Base Rent shall be increased accordingly and the payments of such increased Base Rent shall commence after expiration of the Abatement Period. If such determination of the increase in Base Rent as of the Term Commencement Date does not reflect use by Tenant of all of the Additional TI Allowance, then it shall be determined again as of the TI Deadline, with Tenant paying (on the next succeeding day that Base Rent is due under this Lease (the “TI True-Up Date”)) any underpayment of the further adjusted Base Rent for the period beginning on the day after the Abatement Period expires and ending on the TI True-Up Date. For purposes of clarification, the annual upward adjustments of Base Rent described in [Section 2.3] shall apply to any increase in Base Rent arising from any disbursement of the Additional TI Allowance. Landlord shall not be obligated to expend any portion of the Additional TI Allowance unless and until Landlord shall have received from Tenant a letter in the form attached as [Exhibit D] hereto executed by an authorized officer of Tenant.

All permits and licenses necessary for the prosecution of the Tenant Improvement Work shall be secured prior to commencement of the Tenant Improvement Work.

Costs and Construction Management Fee. The Improvement Allowance shall be used only for the payment of costs relating to the construction of the Improvements (including # the cost of preparing the Phase 1 Working Drawings and the Phase 2 Working Drawings and # payment of a construction management fee payable to ’s construction manager in the amount of two percent (2%) of the total cost of the Improvements eligible for payment from the Improvement Allowance), which costs shall pay directly out of the Improvement Allowance, for the credit of , and in no event shall any part of the Improvement Allowance be paid to or payable to , except for the portion that is allocable to the purchase by of FF&E as set forth below.

Requests for Release of First Logistics Construction Allowance Reserve Funds. Subject to the requirements of this [Section 7.8.2], the Borrowers may request withdrawals from the First Logistics Construction Allowance Reserve Account. The Borrowers shall submit to the Agent a request therefor, together with all conditions precedent to such disbursement and such additional information as the Agent may reasonably request in connection with the Borrowers’ request, at least ten (10) Business Days prior to the date on which the Borrowers request the Agent to make a disbursement from the First Logistics Construction Allowance Reserve Account. The Agent shall not be required to make more than one (1) disbursement from the First Logistics Construction Allowance Reserve Account during any calendar month. In addition, the Agent shall not be required to make disbursements from the First Logistics Construction Allowance Reserve Account unless such requested disbursement is in an amount of or more (or, if the total amount in the First Logistics Construction Allowance Reserve Account is less than , an amount equal to the remaining balance in the account) and such disbursement shall be made only upon satisfaction of each condition contained in this [Section 7.8]. The Agent shall make a disbursement from the First Logistics Construction Allowance Reserve Account in the amount requested by the Borrowers so long as each and all of the following conditions are satisfied as of the date of the request and as of the date on which such disbursement is to be made:

Requests for Release of Pactiv Construction Allowance Reserve Funds. Subject to the requirements of this [Section 7.9.2], the Borrowers may request withdrawals from the Pactiv Construction Allowance Reserve Account. The Borrowers shall submit to the Agent a request therefor, together with all conditions precedent to such disbursement and such additional information as the Agent may reasonably request in connection with the Borrowers’ request, at least ten (10) Business Days prior to the date on which the Borrowers request the Agent to make a disbursement from the Pactiv Construction Allowance Reserve Account. The Agent shall not be required to make more than one (1) disbursement from the Pactiv Construction Allowance Reserve Account during any calendar month. In addition, the Agent shall not be required to make disbursements from the Pactiv Construction Allowance Reserve Account unless such requested disbursement is in an amount of or more (or, if the total amount in the Pactiv Construction Allowance Reserve Account is less than , an amount equal to the remaining balance in the account) and such disbursement shall be made only upon satisfaction of each condition contained in this [Section 7.9]. The Agent shall make a disbursement from the Pactiv Construction Allowance Reserve Account in the amount requested by the Borrowers so long as each and all of the following conditions are satisfied as of the date of the request and as of the date on which such disbursement is to be made:

The proposed disbursement would reimburse the South Pulaski Borrower for Approved First Logistics Construction Allowance Expenses;

Compliance. The Tenant Improvement Work shall comply in all respects with # all Applicable Laws; # all applicable standards of the American Insurance Association (formerly, the National Board of Fire Underwriters) and the National Electrical Code; and # all applicable building material manufacturer’s specifications. Without limiting the foregoing, if, as a result of Tenant’s performance of the Tenant Improvement Work, Landlord becomes required under Applicable Laws to perform any inspection or give any notice relating to the Premises or the Tenant Improvement Work, or to ensure that the Tenant Improvement Work is performed in any particular manner, Tenant shall comply with such requirement on Landlord’s behalf and promptly thereafter provide Landlord with reasonable documentation of such compliance.

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