2013-544 Sheriff - State of North Carolina Ground Lease Agreement for New Jail $1

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($1.00) for the Term. 4. Condition of Premises. Lessor agrees to deliver the Premises to Lessee in its present condition. Except as otherwise expressly provided herein, Lessee acknowledges that the Premises is being delivered "as is", that Lessee has performed preliminary investigations and reviews and has concluded on its own judgment that the Premises are suitable for the purposes intended, without any representations or warranties of any kind (including, without limitation, any express or implied warranties of merchantability, fitness or habitability) from Lessor or any agent of Lessor. Lessees's entry into possession shall constitute conclusive evidence that as of the date thereof the Premises were in good order and satisfactory condition. Lessee further acknowledges that this Lease is subordinate to all existing easements and rights of way encumbering the Premises, including any easements benefiting adjacent land owned by Lessor. S. Use of Premises and Leasehold Improvements. The Premises shall be used by Lessee for the construction, maintenance and operation of a jail facility together with other accessories and appurtenances related thereto, as said facility is more particularly described in Exhibit B attached hereto and incorporated herein by this reference (said facility and all fixtures, accessories and appurtenances constructed or installed on the Premises in connection therewith are collectively referred to herein as the "Leasehold Improvements"). If Lessee ceases to use the Premises for the purposes herein described or makes other uses of the Premises without the express written consent of Lessor, Lessor may terminate this Lease and reenter and take possession of the Premises. 6. Plan_Approval. Prior to the commencement of any construction on the Premises, and before any building materials have been delivered to the Premises by Lessee or under Lessee's authority, Lessee shall provide the DAC and the State Construction Office ("SCO"), a division of the North Carolina Department of Administration, for their review, such plans and specifications for the construction of the Leasehold Improvements as said agencies my require. Review and approval of said construction plans and specifications by the DAC or SCO are solely for Lessor's own purposes and should not be construed as warranting the appropriateness or adequacy of the Leasehold Improvements for Lessee's intended use of the Premises or the appropriateness or adequacy of any such plans or specifications for any other purpose. All plans and specifications for the development of the Premises and construction of the Leasehold Improvements, as modified or supplemented from time to time, are collectively referred to herein as the "Approved Plans" and shall be attached hereto and incorporated herein as Exhibit C. 7. Construction of Leasehold Improvements. The Premises shall be developed and the Leasehold Improvements shall be constructed by Lessee, at its sole cost and expense, in compliance with all the applicable governmental laws and regulations. Lessee shall commence construction of the Leasehold Improvements no later than thirty six (36) months following the Effective Date. Construction of the Leasehold Improvements shall be deemed to have commenced when Lessee begins site grading or site preparation. After construction of the Leasehold Improvements is commenced, the same shall be prosecuted diligently, in a good and workmanlike manner and in accordance with the Approved Plans. During the Term, Lessee shall have the right to replace, add to, alter or otherwise modify the Leasehold Improvements; provided Page 2 of 17