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SECTION3 <br />CONSTRUCTION: DELIVERY OF PREMIS S• SUBSTANTIAL COMPLETION PUNCH LIST ITEMS <br />3.1 Permits. Landlord will cause Landlord's Architect and Ore Engineers to submit the Approved Working Drawings to the <br />appropriate governmental entities and otherwise apply for all applicable building and other permits and approvals (collectively, "Permits") ((Pally) <br />necessary or required (in Landlord's good faith discretion) for the Contractor to commence, perform and fully complete the construction of the <br />Tenant improvements. Neither Landlord nor any Landlord Party shall have any obligation or liability to Tenant if any Penadt (including, without <br />limitation, any building permit, cerdficate oroccupancy, or equivalent) is not timely or otherwise Issued. <br />3.2 Landlord's Selection and Retention of the Contractor. <br />3.2.1 Landlord shall submit the Construction Drawings for the Premises on a fixed contract amount (or GMAX) basis to a <br />general contractor selected by Landlord (the "Contractor"), which Contractor shall be independently retained by Landlord (pursuant to such <br />construction contract form as Landlord shall in good faith determine) to construct the Tenant Improvements in accordance with the Construction <br />Drawings. Landlord reserves the right to designate the subcontractor or subcontractors to perform particular trades (or components of) the Tenant <br />Improvements such as fire/lifesafety, HVAC, structural and electrical work. <br />3.2.2 Landlord reserves tile absolute right, without the need for consultation with or the consent of Tenant, to terminate the <br />Contractor for nonperformance (as determined in good faith by Landlord) and In such case Landlord may select another general contractor to <br />complete the Tenant improvements. Notwithstanding any provision of this Work Letter to the contrary, Tenant hereby waives all claims against <br />Landlord, and Landlord shall have no responsibility or liability to Tenant, on account of any nonperfbmiance or any misconduct of any Contractor <br />(or any subcontractor thereof) for any reason, <br />3.2.3 If the Tenant Improvements shall constitute "public works: pursuant to Labor Code §1720.2. the following shall apply: <br />(a) Landlord shall require the Contractor to comply with (and to cause its subcontractors to comply with) <br />prevailing wage requirements and be subject to restrictions and penalties in accordance with §1770 et seq, of the Labor Code which requires <br />prevailing wages be paid to appropriate work classifications In all bid specifications and subcontracts. <br />(b) Landlord shall require the Contractor to furnish all subcontractors/employees a copy of the Department of <br />Industrial Relations prevailing wage rates which Lessor will post at die job site. For further information on prevailing wage: <br />http:/lwww.dircagov/dfsr/statistics researchhiml <br />(c) Landlord shall require the Contractor to comply with (and to cause its subcontractors to comply with) the <br />payroll record keeping and availability requirement of§1776 of the Labor Code. <br />(d) Landlord shall require the Contractor to (and to cause its subcontractors to Lessor/contractor to) make travel <br />and subsistence payments to workers needed for performance of work in accordance with the Labor Code. <br />(a) Prior to commencement of work, Landlord shall require the Contractor to contact the Division of <br />Apprenticeship Standards and Comply with § 1777.5, § 1777.6, and § 1777.7 of the Labor Code and Applicable Regulations. <br />3.3 Delivery of Premises• Substantial Comnlctiom Punch List Items. <br />3.3.1 Delivery' of Premises, Landlord shall deliver die Premises to Tenant upon Substantial Completion of the Tenant <br />Improvements. Subject to Landlord's obligations under this Work Letter (including Landlord's obligations to perform (or cause to be performed) the <br />Landlord's Work and to construct (or cause to be constructed) the Tenant Improvements in accordance with the Construction Drawings) and to all of <br />Landlord's other express obligations under the Lease (including, tinder Section 2.1 of the Lease), Landlord shall have no duty or obligation to <br />improve, or pay for any improvement for, the Premises or any portion thereof and Tenant shall accept the some in its Tenant shall accept the <br />Premises in its, then existing condition on the Delivery Date, "AS -IS". "WITH ALL FAULTS % <br />3.3.2 Substantial Completion. For purposes of this Lease, "Substantial Completion" shall occur upon (and the Premises <br />shall be "Substantially Complete" upon) the substantial completion of construction of the Tenant Improvements pursuant to the Approved Working <br />Drawings, as evidenced by a "signoll" on the building permit card by on inspector of the applicable governmental authority (typically the city in . <br />which the Building is located), with die exception of any Punch List Items (defined below) aid any tenant fixtures, workstations, buiit-in furniture, <br />arequipment to be installed by Tenant or under tie supervision orCont actor. <br />3.3.3 Punch List hems. Alter the Substantial Completion by Landlord of the Tenant Improvements. representatives or <br />Landlord, Tenant and the Contractor shall completely inspect the Premises and complete a list (die "Punch List") of all Punch List Items (defined <br />below). Authorized representatives orLendlord. Tenant and the Contractor shall execute said Punch List to indicate their approval thereof Landlord <br />shall cause the Contractor to complete all Punch List Items described oil the Porich List as soon Out reasonably possible Following the approval orsuch <br />Punch List. As used herein, "Punch List l[emv" means all items of construction which entail one or more details of construction. decoration. <br />mechanical adjustment or installation That du not materially and adversely affect the use and occupancy of any portion oFthe Premises for the normal <br />conduct orTenant's business. <br />al! WCh ie Ceruer Ur- 0l, ofSamtre Ana Lrnre 3 lixhihn C <br />