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respective insurance carriers of either Lessee or Lessor of any other remedies available to said carriers <br />62.Initial Improvements and Work, Lessor, through the "General Contractor" (as defined below),shall co nstruct, furnish and install within the Promises, including outside yard area, those items ofconstruction (the "Work") shown on the "Plans" (as defined helow), It is the intent andagreement of the parties that the Work is comprised of all work (including all hard and soft costsassociated with the design and construction of improvements for the Premises, but excluding anycosts for furniture, fixtures, Trade Fixtures and other such similar personal property used inconnection with the operation of the Shelter) to enable Lessee to furnish and install the Shelterond comprehensive supportive services, which such facility shall contain sleeping areas,restrooms, showers, laundry rooms, kitchen and storage areas, common areas, and offices, and allother ancillary improvements in connection therewith to enable Lessee to operate the Shelter.The architectural, structural, grading, mechanlcol, electrical, plumbing, sewer and fire/life safetystandards that shall be applicable to the construction required to complete the Work, shall hesubject to Lessor's rules and regulations applicable to the performance of the Work (collectively,the "Work Standarda'1, Lessor hereby appoints Jeremy Ogulnick as Lessor's representative("Leoaor's Representative") to act for Lessor in all matters in connection with the Work. Lesseehereby appoints ____ as Lessee's representative(s) ("Lessee's Representative(•)") to actfor Lessee in all matters in connection with the Work and Lessee shall be responsible for all costsauthorized by Lessee's Representative(s). All inquiries, requests, lnstn1ctions, authorizations andother communications with respect to the Work shall be made to Lessor's Representative orLessee's Representative(s), as the case may be, Authorizations made by Lessee'sReprosentative(s) shal l be binding on Lessee, Authorizations made by Lessor's Representativeshall be binding on Lessor, Either party may change its representatives under this Section 62 atany time by written notice to the other party, but any such change shall be effective only uponreceipt by the other party. Notwithstanding the foregoing, in no event shall any direction byLessor's Representative or Lessee's Representative(s) constitute a change in the terms orconditions of the Lease, unless the Lease is expressly modified in a writing executed by bothLessor and Lessee, All work shall he done pursuant to those architectural, electrical, mechanical,plumbing, life safety and structural drawings and specifications (including all flnishes) for theWork, which shall be approved by Lessor and Lessee (collectively, the "Plans"), Lessee may notmake any material changes, modiflcations or alterations in the Plans (collectively, "LesseeChang .. ') at any time without Lessor's prior written approval thereof which shall not beunreasonably withheld, conditioned or delayed and the cost of any such Lessee Changes shall beadded to the Cost of the Work and shall not he included in the "Contingency Amount" (as definedbelow) and in the event of any such approved Lessee Changes, the Cost Estimate shall heincre&sed by the amount of such Lessee Changes. Lessor may from time to time during theprosecution of the Work require reasonable modifications or amendments to the Plans due tounforeseeable conditions or to the extent changes are required to comply with applicable Laws("Lessor Changes") and the cost of any such Lessor Changes shall be Included In the"Contingency Amount'' (as defined below), unless It is considered a "Change Order" (as definedbelow) approved by Lessee, Lessor acknowledges and agrees that Lessor shall be solelyresponsible for causing the Work to be constructed and maintained, in accordance with allapplicable Laws, including, without limitation, the provisions of the American with DisabilitiesAct, 42 U.S,C. Section 12101 et seq. and any governmental regulations with respect thereto (the "ADA") and other similar Laws. Additionally, to the e,tent applicable to the Work, Lessor shall he responsible for complying with all pertinent prevailing wage laws pursuant to California Labor Code sections 1720, et seq, Lessee shall pay the entire "Cost of the Work", As used herein, the term "Cost of the Work" means all costs and expenses in connection with the design, furnishing, construction and installation of the Work, including without limitation: (a) all architectural, <br />7 <br />12926441.1 <br />EXHIBIT 1