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EXHIBIT 1D SCCTION 3 CONSTRUCfION•DELIVCRV OF PRESMEN• SUBSTANTIALCOMPLETION ({INCH LIST ITrMS 3.1 Petmlit., Landlord will cause Landlord's Architect and the Engineers to submit the Approved Working Drawings to the appropriate governmental entities and otherwise apply for all applicable bullding and other pewits and approvals (collectively, ,Permits") (If ony) necessary or required (In Landlord's good faith discretion) for the Contractor to commence, perform and fully complete the construction of the Tenant Improvements, Netdner Landlord nor any Landlord party shall have any obligation or liability to Tenant If any Pennit (Including, without Iluiltalion, oily building permit, certificate o roccupancy, or equivalent) Is not timely or otherwise Issued. 3.2 LandIQlVii Selection and Retention of the Contractor. 3.2.1 Landlord shall submit (he Construction Drawings for die Premises on a fixed contract amount (or GMAX) basis to a general contractor selected by Landlord (the "Contractor"), which Contractor shall be independently retained by Landlord (pursuant to such construction contract form as Landlord shell In good faith determine) to construct 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 01) ilia Tenant Improvements such as tirellife safety, PIVAC, structural and electrical work. 3.2.2 Landlord reserves the absolute right, without the need for consultation with or the consent oFTerlalli, to !emirate the Contractor for nonperformance (as determined in good faith by Landlord) and in such case Landlord may select another general contractor to complete the Tenant Improvements. Notwithstanding any 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 misconduct of my Contractor (or any subcontractor thereoq for any lesson, 3.2.3 If the Tenant Improvements shall constitute "public works: pursuant to Labor Code 111720.2, the following shall apply: (a) Landlord shall require the Contractor to comply with (and to oause 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 prevailing wages be paid to oppropriate work classifications In all bid specifications and subcontmcig, (b) Landlord shall require the Contractor to flusish all subcontrnctots/wnployees a copy or the Department or Industrial Relations prevailing wage rates which Lessor will post at the Job site. For further information on prevailing wage: Afro•//www dlrc�eov/dial tatistics imitorchhtml (a) Landlord shall require the Contractor to oomply with (and to cause Its subcontractors to comply with) the payroll record keeping and availability requirement or§1776 of the Labor Code, (d) Landlord shall require the Contractor to (and to cause its subcontractors to Lessor/cmltroctur to) make travel and subsistence payments to workers needed for performance of work in accordance with the labor Code. (a) Prior to Commencement of work, Landlord shall require the Contractor to contact the Division of Apprenticeship Standards and eoniply with § 1777.5, § 1777,6, and § 17717 of the Labor Code and Applicable Regulations, 3.3 Dclivcry of premises' S bstnntial Completion Punch List Its. 3.3.1 Delivery et' Premises, Landlord shall deliver the Premises to Tenant upon Substantial Completlon of the Tenant Improvements. Subject to Landlord's obligations under this Work Letter (including Landlord's obligations to perform (m•cause to be perfonnod) the Landlord's Work and to construct (or cause to be Constructed) die Tenant Improvements in accordance with the Construction Dinwings) and to all of Landlord's other express obligations under the Lease (including, under Section of the Lease), Landlord shall have no duty or obligation to improve, or pay for tiny improvement for, the Promises or any portion thereof and Tenant shall accept the some in Its Tennnt shall accept the Promises in N. then existing condition on the Delivery Date, "AS-08", "WITH ALL FAULTS", 3.3.7 "ubstmlllnl Cmmliletion. Por purposes of Oils Lease, "Substantial Completion" shall occur upon (and the Promises shall be "Substantmlly Complete" upon) (he substantial completion ofconstruction of the Tenant Improvements pursuant to the Approved Working Drawings, as evidenced by a "signolT' an the building permit card by an Inspector of the applicable govenumemal authority (typically (he oily in which the Building is located), with die exceptun of oily punch List Items (defined below) and any tenant fixtures. workstations, built-in furniture, orequlpment to be installed by Tenant or under the supervision of Contractor. 3.3.3 Pouch Lisl (tcmg. Alter the Substantial Completion by Landlord of the Tenant Improvements. representatives of Landlord. Tennnt and the Conuuc(ur shot[ completely inspect the Promises and complete a list (ire "Punch List") or all Punch List Items (defined below). Authorized representmivcsofLandlord. Tenant tint] ilia Contractor shnllexecute said Pariah List (aIndicate their approval thereor, Landlord shall cause the Coatnrclor to complete all Punch List Items described oil the Paich Llalaa soon as reasonably possible following die approvol orsuch Pat all Llsd. As used hewin, "I'it ❑c11 List II cats' in cans all items et' cc astru ct ion which enroll one or more details of co nsa9llion. decoratial, mechanical adjustment or ins toIIoil 'In thin do not meb nutty and ndvaseiy afrect Ilia ase gild accupon cy of any portion aFthe Premises lb r the normal conduct orTensnt's business. 301 11,Civic Center Dr-CI(r of Snnm.l nu nano ENNhit C 80A-352