CALIFORNIA, STATE OF EMPLOYMENT DEVELOPMENT DEPARTMENT (3)

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SECTION 3 CONSTRUCTION; DELIVERY OF PREMISES• SUBSTANTIAL COMPLETION; PUNCH LIST ITEMS 3.1 Permits. Landlord will cause Landlord's Architect and the Bngbmeers to submit the Approved Working Drawings to the appropriate governmental entities and otherwise apply for all applicable building and other permits and approvals (collectively, "Permits") (if any) necessary or required (in Landlord's good faith discretion) for the Contractor to commence, perform and fully complete the construction of the Tenant Improvements. Neither Landlord nor any Landlord Party shall have city obligation of liability to Tannin if ally Peh»it (including, without limitation, any building permit, certificate ofoccupancy, or equivalent) is not timely orotherwlse issued. 3.2 Landlord's Selection and Retention of the Contractor. 3.23 Landlord shall submit the Construction Drawings for the 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 shall 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 of) the Tenant llnprovements such as 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 of Tenant, to terminate the Contractor for nonperformance (as determined in good faith by Landlord) and fn 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, oh account of any nonperformance or any misconduct of any Contractor (or any subcontractor thereof) for any reason, 3.2.3 If the Tenant Improvements shall constitute "public works: pursuant to Labor Code §1720.2, the following shall apply: (a) 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 prevailing wages be paid to appropriate work classifications in all bid specifications and subcontracts. (b) Landlord shall require the Contractor to furnish all subcamractors/employees a copy of the Department of Industrial Relations prevailing wage rates which Lessor will post at the job site, For further information oil prevailing wage: httn:/Iwww.dircaeov/dlsr/statistics research.hwil (c) 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 of the Labor Code. (d) Landlord shall require the Contractor to (and to cause its subcontractors to Lessor/conu•ocuir to) make travel tad subsistence payments to workers needed for perl'unmulce of work in accordance with the Labor Code. (e) Prior to commencement of work, Landlord shall require the Contractor to contact the Division of Apprenticeship Standards and comply with § 1777.5, §1777.6, and §1777.7 ofthe Labor Code and Applicable Regulations, 3.3 Delivery of Premises: Substantial Cumulation Punch List Items. 3,3.1 Delivery of Premises. Landlord shall deliver the Premises to 'fenant upon Substantial Completion of the Tenant Improvencrum Subjeet to Landlord's obligations under this Work Letter (including Landlord's obligations to perform (or cause to be performed) the Landlord's Work and to construct (o cause to be constructed) the Tenant Improvements in accordance with the Construction Drawings) and to all of iaadlord's other express obligations under the Lease (including, under Section 9.1 of the Lease), Landlord shall have no duty or obligation to improve, or pay for any improvement for, the Preniscs or any portion thereof and "fenant shall accept the same in its Tenant shall accept the Prcnnises in its,then existing condition on the Delivery Date, "AS -IS", "WITH ALL FAULTS". 3.3.2 Substantial Completion. For purposes of tills Lease, "Substantial Completion" shall occur upon (and the premises shall be "Subs(aniitdly Complete" upon) the substantial completion ofconshuction of the Tenant Improvements pursuant to the Approved Working Drawings, as evidenced by a "signoll— on the building permit card by an inspector of the applicable governmental authority (typically the city in which the Building is located), with tie exception of any Punch List hems (defined below) and any tenant fixtures. work -stations, built-in furniture, orequipment to be installed by Tenant or under the supervision of Contractor. 3.3.3 Parch List Items,. After the Substantial Completion by Landlord of the T(niaat hmprovennents. representatives of 1,1111dlord, Tennnt and the Contractor shut[ completely Inspect [lie Promises and complete a list (die "Punch List") of all Punch List Items (dclined below), Authorized representatives of tandlord-'fenant nml the Contractor shut[ execute said Punch List to indicae their approval thereof. Landlord shall cause the Contractor to complete all Punch List Items described oil the Punch List as soon as reasonably possible following the uppra-al ol'such Punch List, As used herein, "Punch List Items' means all items of construction which entail one or inure details of construction. decoration. mechanical adjustment at installation that CIO not materially and adversely affect the use and occupancy of any partial) critic Prenises liar the normal conduct of Tenant's business, 801 tv Civic Center Dr. -Cho• ofS'nnar.tna Cruse 3 L".chiha C