General Building. a. Floor slabs shall be level with no greater than standard creative office deviations in elevation (i.e., no more than 1/8” over 10 feet), and smooth surfaces, and ready for carpet installation. Any floor levelling or trenching shall match the existing floors with regards to color and aggregate as Tenant will be utilizing concrete floors throughout. b. All penetrations through rated assemblies and systems shall be sealed and fireproofed if required by building regulations. c. Existing interior surfaces of ceilings, exterior walls and floor areas that are intended to become finished surfaces, pursuant to all applicable building and energy codes, shall be sandblasted and/or ready to receive finishes, or be detailed per Tenant’s plans. Surfaces that will receive sheetrock, insulation, or other coverings, do not require sandblasting. d. All building core and common areas (interior and exterior), including stairwells, and utility rooms shall be fully upgraded, painted and complete pursuant to plans and specifications mutually agreed to between Landlord and Tenant, and shall be constructed in compliance with applicable codes and regulatory agency requirements. Landlord shall provide the keying and hardware for the Base Building, which hardware styles, finishes and materials shall be subject to Landlord’s and Tenant’s reasonable agreement. For clarity, Landlord’s Work shall include repainting of the entire exterior of both the Phase I Premises and the Phase II Premises (unless otherwise mutually agreed by Tenant and Landlord in their respective reasonable discretion). e. Landlord shall furnish and install all sky lights and windows/perimeter window systems (min NC 35) pursuant to the Approved Working Drawings for Landlord’s Work, with finishes and materials subject to Landlord’s and Tenant’s reasonable approval. f. Landlord shall provide at the ground or garage area(s) for Tenant’s secured bicycle and general storage items. g. Landlord shall cause Landlord’s Work to be constructed to include any Specialized Improvements as directed by Tenant (as further set forth in (j) below). Any Specialized Improvements not set forth in (j) below shall be at Tenant’s sole cost and expense and may cause Tenant Delays. h. Conduit pathway from Tenant’s premises to roof, as well as provisions on the roof for mounting of limited communication equipment. i. As part of the Phase II Work, the Roof Deck shall be constructed at Landlord’s sole cost and expense in the area depicted on the renderings shown on Exhibit G attached hereto and pursuant to the Construction Drawings. Landlord shall provide the Roof Deck with egress (which may include exterior stairs and/or an elevator) and lighting for exiting and life safety in accordance with state and federal Applicable Laws (and in accordance with an A-Type occupancy). The Roof Deck shall have ample electrical for lighting, gas and plumbing for heating and BBQ, and planters/landscaping (including irrigation lines) as reasonably agreed upon by Landlord and Tenant. The Roof Deck shall be ADA compliant with live load limits sufficient for A-Type occupancy. All skylights on the Roof Deck must be designed and screened in such a way as to create maximum useable deck space and such design shall be subject to Tenant’s reasonable approval. The Roof Deck shall in no event be smaller than 5,000 usable square feet. The Phase II HVAC system shall be designed without package units on the Roof Deck or in such a way as meets Tenant’s reasonable approval. j. Landlord shall include as part of Base Building (and not included in the Tenant Improvement Allowance) in accordance with the Construction Drawings: one (1) gym/meditation area with shower facilities (such shower facilities to count towards the two (2) shower core limit), two (2) shower and restroom cores in the Phase I Premises, three (3) restroom cores in the Phase II Premises, one (1) standard office kitchen in the Phase I Premises, one (1) standard office kitchen in the Phase II Premises, and one (1) reception area in the Phase I Premises. Tenant may elect to upgrade either or both of the standard office kitchens to accommodate a test/lab kitchen and/or a cafeteria at its sole cost and expense (which shall be considered a Specialized Improvement subject to the terms of the Lease and the Tenant Work Letter). If Tenant elects to upgrade either or both of the standard office kitchens, then Landlord shall, at its sole cost and expense and instead of delivering such standard office kitchens, deliver the base, shell and core, associated infrastructure (including design fees and other soft costs) of such non-standard kitchens (including plumbing [waste lines, as well as hot and cold water], grease traps (including necessary site work), floor drains, increased electrical capacity (as required by Tenant, not to exceed the Building’s electrical capacity in any event), and dedicated exhaust [though Tenant shall be responsible for the cost of any PCU or scrubber required by Applicable Law]), and structural work associated with such added infrastructure, with all kitchen equipment and improvements (including finishes and fixtures) beyond such scope constructed and paid for exclusively by Tenant. Given the specialized nature of this work, the Contractor(s) will engage a kitchen subcontractor reasonably acceptable to Tenant for such work. k. Intentionally deleted. l. Exterior lighting and landscaping which shall be consistent with the quality of landscaping and lighting for other comparable Class A creative office properties in the West Los Angeles area and subject to the reasonable and timely approval of Tenant, provided that if Tenant requires any particular landscaping or exterior lighting which exceeds Landlord’s reasonable budgeted allocation for such items then Tenant shall be responsible the incremental increase in the cost therefor. m. Landlord’s Work shall be generally consistent with the plan attached hereto as Exhibit B-2 (the “Proposed Phase I Design”); provided that (i) the Proposed Phase I Design shall be subject to City required changes, modifications or clarifications during and as a result of the permit process (provided that any such changes, modifications, and clarifications shall be subject to Tenant’s reasonable approval; except that any changes to the number, location or size of windows, doors, skylights or other openings in the base building structure shall not require Tenant’s approval [except that, if the number of such items is reduced by the permitting process, and if the parties have the discretion to pick which of such items shall be eliminated, Tenant shall have the right to reasonably approve which items are eliminated]), and (ii) the executive restroom contained in the Proposed Phase I Design shall be at Tenant’s sole cost and expense. Landlord and Tenant each acknowledge and agree that, based on the currently available information, neither party believes that the Proposed Phase I Design would trigger full building structural upgrades to the Phase I Premises (a “Full Structural Upgrade”). However, if the Proposed Phase I Design does in fact trigger a Full Structural Upgrade, the parties shall work together in good faith to modify the Proposed Phase I Design so that a Full Structural Upgrade shall not be required. In no event shall a Full Structural Upgrade be incorporated into Landlord’s Work unless Landlord and Tenant, each in their sole and absolute discretion, mutually agree to incorporate same into Landlord’s Work. The foregoing shall not limit any of Landlord’s other obligations set forth in this Exhibit B-1 or elsewhere in this Lease, including Landlord’s obligation to ensure that the Phase I Premises and the Phase II Premises are both delivered to Tenant in structurally sound condition.
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Sources: Lease Agreement (Sweetgreen, Inc.), Lease Agreement (Sweetgreen, Inc.)