Shutterfly 2008 Annual Report Download - page 99

Download and view the complete annual report

Please find page 99 of the 2008 Shutterfly annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

Notwithstanding anything to the contrary herein, Landlord shall contribute an amount (such amount being the “Improvements Allowance”)
not to exceed $16.00 per rentable
square foot of the Premises ($1,638,400.00 based on the rentable square footage of 102,400) towards the costs incurred by Landlord and/or Tenant in designing, planning and
constructing the Improvements. In the event the costs incurred in connection with designing, planning and constructing the Improvements exceed the Improvements Allowance
(subject to application of the Additional Tenant Improvement Allowance, as hereinafter defined), Tenant shall be solely responsible for bearing and paying any such excess costs within
thirty (30) days of Landlord’
s written demand therefor. In the event the costs incurred by Landlord and/or Tenant in connection with designing, planning and constructing the
Improvements are less than the Improvements Allowance, Tenant shall provide Landlord with written notice prior to August 31, 2007 which may direct Landlord to pay such excess
amounts directly to Tenant’
s contractor/vendors for additional improvements to the Premises conducted by or for Tenant, or apply such excess amounts against the Minimum Rental
payment(s) next due from Tenant until such excess amounts have been exhausted. Without limiting the foregoing, Landlord acknowledges that “
the costs incurred by Landlord and/or
Tenant in designing, planning and construction the Improvements”
shall be deemed to include the cost to obtain any and all (i) operating permit(s) that Tenant may be required to obtain
(if any) in order for Tenant to operate for Tenant’s permitted use as described in Article 6(a) of this Lease; (ii) construction permits (including costs associated with any “
express
review” process); (iii) space planning; (iv) construction documents; (v) upfit costs; and (vi) any additional costs associated with the upfit.
3. ADDITIONAL TENANT IMPROVEMENT ALLOWANCE
Upon written request to Landlord, Landlord agrees to provide Tenant with an additional improvement allowance up to a maximum of $250,000.00 (the “
Additional Tenant
Improvement Allowance”)
to be used by Tenant for additional improvements to the Premises, and/or furniture, fixtures or equipment for the Premises. Any such elected Additional
Tenant Improvement Allowance shall be amortized over the entire eighty-
nine (89) month term at an annual interest rate of ten percent (10%) and paid by Tenant as part of the
Minimum Rent due under the Lease. Landlord and Tenant shall amend this Lease as necessary to reflect such increased rent obligation.