Common use of LESSOR'S WORK Clause in Contracts

LESSOR'S WORK. Lessor acknowledges that it has inspected and is fully familiar with the Demised Premises and that it has accepted the Demised Premises in "AS IS" condition. Notwithstanding the aforementioned: (a) Third Floor Premises - (i) Prior to the Lease Commencement Date, all of the work in the Third Floor Premises as set forth on the space plan attached hereto as Exhibit "E" (the "Lessor's Work") shall be completed. Lessor's obligation with respect to the build-out of the Third Floor Premises and Lower Lobby Premises including Lessor's Work, shall not exceed the sum of $187,500.00 ("Lessor's Contribution"). Any costs in excess of $187,500.00 shall be paid by Lessee promptly upon submission of invoice(s) thereof. Subject to the foregoing, in the event that the Budget (defined below) for the Third Floor Premises, as approved by the parties, is less than Lessor's Contribution ($187,000.00), Lessee shall be entitled to utilize all or a portion of the remaining balance of Lessor's Contribution (less the costs allocable to the Drawings as set forth below) toward any further improvements and/or decorations to be performed by Lessor to the Lower Lobby premises (in addition to the build-out of such Premises described in Section 26 (b) below), subject to the applicable terms of this Agreement. Notwithstanding anything herein to the contrary, not more than ten (10%) percent of Lessor's Contribution shall be applied towards the preparation of the Drawings (as defined in Paragraph 26(a)(ii) below) or other soft costs incurred by Lessee and any cost and expense in excess thereof shall be paid by Lessee even if the aggregate of Lessor's Contribution shall be less than $187,500.00. (ii) Lessee shall cause its architects to produce construction drawings and its mechanical engineers or contractor to produce mechanical drawings (sprinkler, air conditioning, heating, electrical and plumbing drawings (collectively, the "Drawings") covering all mechanical elements with respect to the build out of the Demised Premises including Lessor's Work. Lessee shall submit the Drawings within ten (10) business days of the execution of this Lease. Within ten (10) business days of Lessor's receipt of the Drawings, Lessor shall prepare an itemized budget (the "Budget") for the Lessor's Work. Lessee shall approve or disapprove the Budget within ten (10) business days of its receipt. The Drawings shall be subject to Lessor's approval which shall not be unreasonably withheld, delayed or conditioned. (iii) If Lessee approves the Budget, the work shall commence immediately after such approval. (iv) If Lessor fails to submit the Budget and if completion of the Demised Premises as required hereunder within the time periods stipulated shall be delayed due to such failure or requests, then each full day of such delay shall equal one (1) day of Lessor Delay. If Lessee fails to submit the Drawings and/or approve or disapprove the Budget submitted by Lessor within the time periods stipulated, or if Lessee shall request any change in the Drawings or Budget once approved and if completion of the Demised Premises shall be delayed due to such request, then each full day of such delay shall equal one (1) day

LESSOR'S WORK. Lessor acknowledges that it has inspected As soon as reasonably practicable subsequent to the date hereof, Lessor, at Lessor's sole cost and is fully familiar with expense, shall complete the Demised following improvements to the Expansion Premises and that it has accepted the Demised Access Premises in "AS IS" condition. Notwithstanding the aforementioned: (a) Third Floor Premises - (i) Prior to the Lease Commencement Datecollectively, all of the work in the Third Floor Premises as set forth on the space plan attached hereto as Exhibit "E" (the "Lessor's Work"): a. Lessor shall extend Lessee's currently existing cranework system into the Expansion Premises; ▇. ▇▇▇▇▇▇ shall install two (2) twenty-five (25) ton cranes into the Expansion Premises. These cranes shall be completedP & H Class D cranes which are radio controlled with cab seating or such other equivalent cranes as Lessee shall approve in writing, which approval shall not be unreasonably withheld or delayed; ▇. Lessor's obligation with respect ▇▇▇▇▇▇ shall remove the existing demising partitions currently located on the west and south walls of the Expansion Premises; ▇. ▇▇▇▇▇▇ shall erect a separate demising partition on the northernmost boundary of the Expansion Premises. The partition is to consist of steel sheets comparable to the build-out of steel sheet partitions located in the Third Floor Original Premises and Lower Lobby shall be insulated to the same R value as those partitions removed pursuant to clause c. immediately above. It is acknowledged and agreed by Lessee that materials from the partitions removed pursuant to clause c. immediately above may be salvaged and re-installed by Lessor; ▇. ▇▇▇▇▇▇ shall provide the necessary labor and materials to construct the Access Premises; ▇. ▇▇▇▇▇▇ shall adjust the heating equipment currently located in the Original Premises necessary to provide heat and airflow into the Expansion Premises. Lessor shall further install any additional equipment necessary to maintain the heating specifications contained in the Lease, including Lessorbuilding pressurization. Lessee's Work, shall not exceed ability to conduct normal business operations in the sum of $187,500.00 Expansion Premises and Access Premises ("Lessor's ContributionWork Standard"). Any costs in excess of $187,500.00 shall be paid by Lessee promptly upon submission of invoice(s) thereof. Subject to Lessor will complete the foregoing, in Punch List as soon as reasonably practical after the event that the Budget (defined below) for the Third Floor Premises, as approved by the parties, is less than Lessor's Contribution ($187,000.00), Lessee shall be entitled to utilize all or a portion of the remaining balance of Lessor's Contribution (less the costs allocable to the Drawings as set forth below) toward any further improvements and/or decorations to be performed by Lessor to the Lower Lobby premises (in addition to the build-out of such Premises described in Section 26 (b) below), subject to the applicable terms of this Agreement. Notwithstanding anything herein to the contrary, not more than ten (10%) percent of Lessor's Contribution shall be applied towards the preparation of the Drawings (as defined in Paragraph 26(a)(ii) below) or other soft costs incurred by Lessee and any cost and expense in excess thereof shall be paid by Lessee even if the aggregate of Lessor's Contribution shall be less than $187,500.00Completion Date. (ii) Lessee shall cause its architects to produce construction drawings and its mechanical engineers or contractor to produce mechanical drawings (sprinkler, air conditioning, heating, electrical and plumbing drawings (collectively, the "Drawings") covering all mechanical elements with respect to the build out of the Demised Premises including Lessor's Work. Lessee shall submit the Drawings within ten (10) business days of the execution of this Lease. Within ten (10) business days of Lessor's receipt of the Drawings, Lessor shall prepare an itemized budget (the "Budget") for the Lessor's Work. Lessee shall approve or disapprove the Budget within ten (10) business days of its receipt. The Drawings shall be subject to Lessor's approval which shall not be unreasonably withheld, delayed or conditioned. (iii) If Lessee approves the Budget, the work shall commence immediately after such approval. (iv) If Lessor fails to submit the Budget and if completion of the Demised Premises as required hereunder within the time periods stipulated shall be delayed due to such failure or requests, then each full day of such delay shall equal one (1) day of Lessor Delay. If Lessee fails to submit the Drawings and/or approve or disapprove the Budget submitted by Lessor within the time periods stipulated, or if Lessee shall request any change in the Drawings or Budget once approved and if completion of the Demised Premises shall be delayed due to such request, then each full day of such delay shall equal one (1) day

LESSOR'S WORK. Following execution of the Lease by Lessor acknowledges that it has inspected and is fully familiar Lessee, Lessor shall reinstall the building core of the Premises to a mutually agreed upon condition in compliance with the Demised mutually agreed upon plans, specifications and working drawings and the attached SCHEDULE 1 to this Addendum No. 2 (the "Core Contract"). The portion of Lessor's Work included in the Core Contract will be at Lessor's sole cost. The Core Contract will include completion of the bathrooms in the Premises to mutually agreed upon building standard condition in compliance with the mutually agreed upon plans, specifications and that it has accepted working drawings and any modifications to the Demised Premises in "AS IS" conditionnecessary to cause the Premises to comply with applicable laws, including, without limitation, fire rated doors on all exit corridors and the requirements of the Americans With Disabilities Act and any similar state laws. Notwithstanding Any work of a curative nature necessary to cause the aforementioned: Premises to comply with applicable laws will be performed as a part of Lessor's Work under the Core Contract, at Lessor's sole cost. The Core Contract will also include: (a) Third Floor Premises - securing the easterly boundary of the Project from adjacent property in an appropriate locked manner, and (ib) Prior sealing and restriping the Project's Parking Area. The second of such contracts (the "Lessee Improvements Contract") shall be for the construction of improvements to the Lease Commencement DatePremises as specified in the plans and specifications originally prepared by Lessor for completion of the finishes and other interior improvements to the Premises (the "Original Plans"), all as modified by Lessee and approved by Lessor in accordance with this PARAGRAPH 64 (the "Lessee Improvements"). All of the work described in the Third Floor Premises as set forth on the space plan attached hereto as Exhibit "E" (the this PARAGRAPH 64 is collectively, "Lessor's Work") shall be completed. Lessor's obligation Work shall be promptly completed by Lessor in a good and workmanlike manner, and in accordance with respect working drawings, plans, and specifications for the Premises mutually agreed upon by Lessor and Lessee. Lessee will review and submit required changes to the build-out Original Plans to Lessor as soon as reasonably possible. Lessor will then have ten (10) days to approve (such approval not to be unreasonably withheld) or to provide Lessee with written objections to such changes (such process to repeat until the plans, specifications and working drawings are mutually agreed upon by Lessor and Lessee). Thereafter, such mutually approved plans, specifications and working drawings will be attached hereto and made a part of the Third Floor Premises and Lower Lobby Premises including Lease. As part of Lessor's Work, shall not exceed the sum of $187,500.00 ("Lessor's Contribution"). Any costs in excess of $187,500.00 shall be paid by Lessee promptly upon submission of invoice(s) thereof. Subject Lessor will provide electricity to the foregoing, in Premises. Lessee will have the event that right to use the Budget (defined below) existing electrical panels and electrical wiring for the Third Floor PremisesPremises without Lessor charging any costs therefor against the Lessee Improvement Allowance. Lessor represents and warrants to Lessee that such existing electrical panels and wiring comply with applicable codes. In addition, as approved part of the Lessee Improvements, Lessee will have the right to install card or code access readers at any exterior entrances to the Premises it so desires. Lessee will be entitled to the maximum signage on the exterior facade of the Premises as is allowed by the parties, is less than Lessor's Contribution applicable law ($187,000.00including any variance obtained by Lessee), and Lessee shall be entitled to utilize all or a portion the top one-half (1/2) of the remaining balance monument sign located at the Project, Lessee's sign panel installation to be included in Lessor's Work, and both the cost of the panel and the installation thereof to be charged against the Lessee Improvement Allowance. Lessee shall not be liable for any loss, cost, damage, or expense incurred or claimed by Lessor or any other person or party on account of the construction or installation of Lessor's Contribution Work. Lessor agrees to obtain, at Lessor's cost, any necessary consents of third parties for all of the above-described signage, including, without limitation, approvals required pursuant to that certain Declaration of Covenants, Conditions and Restrictions dated December 24, 1986, and recorded February 4, 1987, as File No. 87-063214 of the Official Records of San Diego County, California (less the "CC&Rs"). Lessor represents and warrants to Lessee based on Lessor's due diligence and proper investigation that the "approving agent" (defined in the CC&Rs) does not exist and that no approvals of the existing Premises or of Lessor's Work are required. Lessor hereby agrees to indemnify, hold harmless and defend Lessee from and against all PAGE 25 ---- ---- ---- ---- claims (including consequential damages) arising out of the failure of the existing Premises or Lessor's Work to comply with the CC&Rs. Lessee will have the right to offset against Base Rent and other charges due under this Lease any costs allocable it incurs due to any such failure and/or the Drawings as set forth below) toward any further improvements and/or decorations to breach of such representation. Lessor hereby acknowledges and agrees that the compliance of Lessor's Work and the plans, specifications and working drawings therefor, with all applicable governmental laws, codes and regulations shall be performed by solely Lessor's responsibility. Lessee assumes no liability or responsibility resulting from the failure of Lessor to comply with all applicable governmental laws, codes and regulations or for any defect in any of Lessor's Work. Lessor further agrees to indemnify, defend and hold harmless Lessee from all losses, liabilities, actions, damages, costs and expenses claimed, asserted or arising in connection with any of the Lower Lobby premises foregoing. Lessor shall submit to at least three (in 3) mutually approved general contractors for bid the working drawings, plans and specifications for the Lessee Improvements. In addition to the build-out of such Premises described in Section 26 (b) below)general contractor, subject to Lessee will also have approval rights over the applicable terms of this Agreement. Notwithstanding anything herein to the contrary, not more than ten (10%) percent of Lessor's Contribution shall be applied towards the preparation of the Drawings (as defined in Paragraph 26(a)(ii) below) or other soft costs incurred by Lessee and any cost and expense in excess thereof shall be paid by Lessee even if the aggregate of Lessor's Contribution shall be less than $187,500.00. (ii) Lessee shall cause its architects to produce construction drawings and its mechanical engineers or contractor to produce mechanical drawings (sprinkler, air conditioning, heatingmechanical, electrical and plumbing drawings (collectively, the "Drawings") covering all mechanical elements with respect to the build out contractors selected. Both Lessor and Lessee shall be provided a copy of each bid. Selection of the Demised Premises including general contractor to be used to perform the Lessee Improvements will be made by Lessor with the approval of Lessee, which approval will not be unreasonably withheld. Thereafter, Lessor will enter into the Lessee Improvements Contract for construction of the Lessee Improvements, and Lessor shall provide Lessee with a copy of said contract for review and approval, such approval not to be unreasonably withheld. Lessor agrees to use all commercially reasonable efforts to obtain the best possible prices for labor and materials to be used in the construction of the Lessee Improvements. The Lessee Improvements Contract shall require the general contractor to comply with Lessor's construction rules and regulations set forth in PARAGRAPHS 70.1-70.9 below (adjusted as applicable to apply to such general contractor). Lessor agrees to obtain any necessary consents under the CC&Rs. Lessor and such general contractor are responsible for compliance with all applicable codes and regulations of duly constituted authorities having jurisdiction as far as the performance of Lessor's Work is concerned, for compliance with the CC&Rs and for compliance with all applicable safety regulations, OSHA or other regulatory agencies, and Lessor further agrees to indemnify and hold Lessee harmless for Lessor's actions arising from Lessor's Work. Lessor agrees that upon Lessee's written request, Lessor will enforce all warranty claims under the Core Contract and the Lessee shall submit the Drawings Improvements Contract. If Lessor fails to enforce same within thirty (30) days of Lessee's written request, Lessee may enforce same at Lessor's cost, which if not paid to Lessee within ten (10) business days of the execution of invoice Lessee may offset against Base Rent and other charges next becoming due under this Lease. Within ten (10) business days of Lessor's receipt of the Drawings, Lessor shall prepare an itemized budget (the "Budget") for the Lessor's Work. Lessee shall approve or disapprove the Budget within ten (10) business days of its receipt. The Drawings shall be subject to Lessor's approval which shall not be unreasonably withheld, delayed or conditionedLease until fully reimbursed. (iii) If Lessee approves the Budget, the work shall commence immediately after such approval. (iv) If Lessor fails to submit the Budget and if completion of the Demised Premises as required hereunder within the time periods stipulated shall be delayed due to such failure or requests, then each full day of such delay shall equal one (1) day of Lessor Delay. If Lessee fails to submit the Drawings and/or approve or disapprove the Budget submitted by Lessor within the time periods stipulated, or if Lessee shall request any change in the Drawings or Budget once approved and if completion of the Demised Premises shall be delayed due to such request, then each full day of such delay shall equal one (1) day