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set forth in the Cost Proposal and to promptly commence the construction of the Tenant <br />Improvements in accordance with the Approved Working Drawings. <br />6.Performance of the Landlord Work. <br />(a)Landlord shall cause the Contractor to obtain all applicable building permits <br />for construction of the Landlord Work ( collectively, the "Permits''), and to perform the <br />Landlord Work in a good and workmanlike manner and in compliance with the Permits <br />and all applicable Laws in effect at the time of construction. All costs associated with <br />obtaining Permits will be deducted from the Tenant Allowance. <br />(b)If any local governmental agency requires revisions to the Approved <br />Working Drawings, Tenant shall be deemed to have approved any adjustments to the <br />Approved Working Drawings and the Cost Proposal resulting therefrom. If any Authority <br />issuing Permits for the construction of the Tenant Improvements shall impose terms or <br />conditions upon the construction thereof that: (i) are inconsistent with Landlord's <br />obligations hereunder; (ii) increase the cost of constructing the Tenant Improvements; or <br />(iii)will materially delay the construction of the Tenant Improvements, Landlord and <br />Tenant shall reasonably and in good faith seek means by which to mitigate or eliminate <br />any such adverse terms and conditions. <br />7.Change Requests. No changes to the Approved Working Drawings or the agreed <br />Cost Proposal may be made without the prior written consent of Landlord, which consent may be <br />withheld in Landlord's sole discretion. If Tenant requests a change that would directly or indirectly <br />delay the Substantial Completion of the Tenant Improvements, Landlord shall not be obligated to <br />make such change unless Tenant agrees in writing that such delay (in the amount reasonably <br />determined by Landlord) is a Tenant Delay. ff Tenant requests a change to the Approved Working <br />Drawings that increases the agreed Cost Proposal, Landlord shall not be obligated to make such <br />change unless Tenant agrees in writing to pay any such increase in costs in accordance with Section <br />10. <br />8.Subshrntial Completion. When Landlord's architect certifies that the Landlord <br />Work is Substantially Complete, Landlord shall notify Tenant thereof in writing. Tenant's <br />Representative and Landlord's Representative shall at a mutually convenient date and time [but in <br />no event later than ten ( I 0) days after such notice] conduct a joint walk-through of the Premises in <br />order to review the Tenant Improvements. Based upon said walk-through, Landlord's <br />Representative and Tenant's Representative shall prepare a list of Punch List Work and, subject to <br />Force Majeure, Tenant Delays and other causes beyond Landlord's reasonable control, Landlord <br />shall complete the Punch List Work items within thirty (30) days after such joint walk-through. In <br />the event of any dispute as to whether Landlord has Substantially Completed the Tenant <br />Improvements, the City will be afforded an opportunity to provide input before the Landlord's <br />architect renders a final decision on the dispute. The decision of Landlord's architect shall be <br />final and binding on the parties. Tenant agrees that, at the request of Landlord from time to time <br />after the initial inspection, Tenant shall initial such punch list or execute revised lists of Punch List <br />Work to reflect completion or partial completion of prior Punch List Work. <br />10 <br />5910216.11 <br />EXHIBIT 1