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7 <br /> 4. Condition of Premises. Lessor agrees to deliver the Premises to Lessee in its present <br /> condition. Except as otherwise expressly provided herein, Lessee acknowledges that the <br /> Premises is being delivered "as is", that Lessee has performed preliminary investigations and <br /> reviews and has concluded on its own judgment that the Premises are suitable for the purposes <br /> intended, without any representations or warranties of any kind (including, without limitation, <br /> any express or implied warranties of merchantability, fitness or habitability)from Lessor or any <br /> agent of Lessor. Lessees's entry into possession shall constitute conclusive evidence that as of <br /> the date thereof the Premises were in good order and satisfactory condition. Lessee further <br /> acknowledges that this Lease is subordinate to all existing easements and rights of way <br /> encumbering the Premises,including any easements benefiting adjacent land owned by Lessor. <br /> 5. Use of Premises and Leasehold Improvements. The Premises shall be used by Lessee for <br /> the construction,maintenance and operation of a jail facility together with other accessories and <br /> appurtenances related thereto,as said facility is more particularly described in Exhibit B attached <br /> hereto and incorporated herein by this reference (said facility and all fixtures, accessories and <br /> appurtenances constructed or installed on the Premises in connection therewith are collectively <br /> referred to herein as the "Leasehold Improvements"). If Lessee ceases to use the Premises for <br /> the purposes herein described or makes other uses of the Premises without the express written <br /> consent of Lessor, Lessor may terminate this Lease and reenter and take possession of the <br /> Premises Comment[gmt2]:Rejected. <br /> 6. Plan Approval. Prior to the commencement of any construction on the Premises, and <br /> before any building materials have been delivered to the Premises by Lessee or under Lessee's <br /> authority,Lessee shall provide the DAC and the State Construction Office("SCO"),a division of <br /> the North Carolina Department of Administration, for their�eview such plans and Comment[gmt3]:Rejected. This is a standard <br /> specifications for the construction of the Leasehold Improvements as said agencies my require. provision in state ground leases. The state may <br /> inherit the Leasehold Improvements at the expiration <br /> Review and approval of said construction plans and specifications by the DAC or SCO are solely of the Term or the earlier termination of the Lease <br /> for Lessor's own purposes and should not be construed as warranting the appropriateness or and must have some say in the structures constructed <br /> on the land. The level of approval will be at the <br /> adequacy of the Leasehold Improvements for Lessee's intended use of the Premises or the determination ofDAC and SCO. <br /> appropriateness or adequacy of any such plans or specifications for any other purpose. All plans <br /> and specifications for the development of the Premises and construction of the Leasehold <br /> Improvements, as modified or supplemented from time to time 6Ta th@.,,Fi#@r appfav l of ° <br /> DAC ,are collectively referred to herein as the"Approved Plans"and shall be attached Comment[gmt4]:Rejected. <br /> hereto and incorporated herein as Exhibit C. <br /> 7. Construction of Leasehold Improvements. The Premises shall be developed and the <br /> Leasehold Improvements shall be constructed by Lessee, at its sole cost and expense, in <br /> compliance with all the applicable governmental laws and regulations. Lessee shall commence <br /> construction of the Leasehold Improvements no later than Comment[gmt5]:Rejected,but see increase <br /> thin six 6 months following the Effective Date. Construction of the Leasehold from 12 months to 24 months. <br /> Improvements shall be deemed to have commenced when Lessee begins site grading or site Comment[L61:State agreed to 36 month not to <br /> preparation. After construction of the Leasehold Improvements is commenced,the same shall be exceed start time. <br /> prosecuted diligently, in a good and workmanlike manner and in accordance with the Approved <br /> Plans. During the Term, Lessee shall have the right to replace, add to, alter or otherwise modify <br /> the Leasehold Improvements; provided that any such substitution, addition, alteration or <br /> modification shall receive the prior written approval of the DAC and SCO and shall be consistent <br /> Page 2 of]7 <br />