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EXHIBIT I SECTION3 C0NSTRUCT1gN• QCLIVPRV 0 rPRI 671 M SUNTANT(A(r COMPLETI ON PUNCH LIST ITCNS 3.1 Permits. Landlord will cause Landlord's Architect and die Engineers to submit the Approved Working Drawings to the appropriate gavernmenlal entities slid otherwise apply for all applicable building and other permits and approvals (collectively, "Pa•mits") (If any) necessary or required (in Landlord's good faith discretion) for the Contractor to commence, perform and fully complete the construction orthe Tenant improvements• Neither Landlord nor any Landlord Party shall have any obligation or liability to Tenant If any Penuit (including, without Ilndtation, any building permit, certi dame o f occupancy, or equivalent) Is not timely or otherwise Issued. 3.2 Landlar'J's Selection and Retention or fit Coll(ra eter. 3.2.1 Landlord shall submit Ilia Constriction Drawings for die Premises on a fixed contract amount (or OMAX) basis to 0 general contractor selected by Landlord (the "CAmfruefer" ), which Contractor shall be independently retained by Landlord (pursuant to such construction contract farm as Landlord shall )a good faith determine) to constant the Tenant Improvements in accordance with the Construction Drawings. Landlord reserves the right to designate the subcontractor or subcontractors to perform particular trades (or components of) the Tenant Improvements such us fire/life safety, HVAC, structural and electrical work. 3.2,2 Landlord reserves the absolute right, without the need for consultation with or the consent or Tenant, to terminate the Contractor for nonperformance (as determined in good faith by Landlord) and in such case Landlord may select another general contractor to complete the Temanl improvements. Notwithstanding toy provision of this Work Letter to the contrary, Tenant hereby waives all claims against Landlord, and Landlord shall have no responsibility or liability to Tenant, on account of any nonperformance or any miseonduol of tiny Contractor (or any subcontractor thereof) for any reason• 32.3 Ifthe Tenant Improvements shall constitute "public works: pursuant to Labor Code §1720.2. the following shall apply: (s) Landlord shall require the Contractor to comply with (and to cause its subcontractors to comply with) prevailing wage requirements and be subject to restrictions and penalties in accordance with §1770 at seq. of the Labor Code which requires prevaflingwages be paid to opproprinle work classifications Inail bid specifications end subcontracts, (b) Landlord shall require Ole Contractor to ftumish all subcontractors/employees a copy orthe Department of Industrial Relations prevailing wage rates which Lessor will post at tie job site. For further information on prevailing wage: http'/7tiyww tires env/Ill statistics research hail (a) Landlord shall require the Contractor to comply with (and to cause Its subcontractors to comply with) the payroll record keeping and availability requirement of §1776 ofihc LaborCode, (d) - Landlord shall require the Contractor to (and to cause its subconbsetors to Lessor/cmhtraetor to) stake travel and subsistence payments to workers needed for performance of work in accordance with die labor Code, (a) Prior to commencement of work, Landlord shull require tilt COR(raatar to contact the Division of Apprenticeship Standards and comply with § 1777.3, §I777,6, and § 17777 of the Labor Code and Applicable Regulations, 3.3 Delivery of Prcmises' SHbstnntial Cmmille)lon• Pencil Lit Italia. 3.3.1 Delivery of Premises, Landlord shall deliver ilia Premises to Tenant upon Substantial Completion of the'fennnl improvements. Subject to Landlord's obligations under this Work Letter (including Landlord's obligations to perform (arcAuse to be perfannod) the Landlord's Work and to construct (or cause to be constructed) die Tenant Improvements In accordance with the Construction Drawings) and to all of landlord's other express obligations under the Lease (including, under Section q of the Lease), Landlord shall have no duty or obligation to improve, or pay for any innp'ovennenl for, the Premises or any portion thereof and Talent shall accept the snore in Its Tenant shnll accept the Premises in its, then existing condition on the Defivery Date, "ANS", "WITH ALL FAULTS", 3,12 Substmninl COMIDIMMI. Por purposes artiids Lease, "Subslaathll Completion" shall occur upon (and the Promises shall be';SubVintnlly Complete" upon) the substantial completion ofconstruction of the Tenant improvements pursuant to the Approved Working Drnwings, as evidenced by a "signoll" an the building permit card by tin Inspector of the applicable governmental authority (typically the city in which the Building is lucateci), with Ore exceptun orally Punch List Items (defined below) and any tenant fixtures. work -stations, bulit•in furniture, or equlpmenl to be Installed by Tennnt or under ilia supervision of Can tractor. 3.3.3 j'lanch List Ircmy. Alter the Substantial Completion by Landlord of the Tenant improvements. representntives of landlord, Tenant and the Contruetor shall completely inspect the Promises And complete s list (010 "Punch fist") orall Purnell List Items (defined below). AurlhorizeJreprusent❑tivesol'Landlord.Ten;eaend Ilia ContmcrorshallexectuesAidPuncitList toIndicate theirapprovidflereoG Landlord AMC cause the Contractor to complete all Punch List tittles described oil the Patch Listas soon as reasonably possible following Ilia approval orsuch Punch List. As used herein, "Punch List Innis" means all items al'canstruction which aunii one or more details of conseac ion. decoration, mechanical adjustment or installatnn thal tin not nrnerinlly and ndveisely street tin use slid occupnnoy orsny portion orthe Premises liar the normal conduct orTenant's business, Rill IVC1,*CwDer Dr-C'6,r, nfS'nrrminn Lwow 12xhibit C 80A-160