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respective insurance carriers of either Lessee or Lessor of any other remedies available to said
<br />carriers
<br />62. Initial Improvements and Work. Lessor, through the “General Contractor” (as defined below),
<br />shall construct, furnish and install within the Premises, including outside yard area, those items of
<br />construction (the “Work”) shown on the “Plans” (as defined below). It is the intent and
<br />agreement of the parties that the Work is comprised of all work (including all hard and soft costs
<br />associated with the design and construction of improvements for the Premises, but excluding any
<br />costs for furniture, fixtures, Trade Fixtures and other such similar personal property used in
<br />connection with the operation of the Shelter) to enable Lessee to furnish and install the Shelter
<br />and comprehensive supportive services, which such facility shall contain sleeping areas,
<br />restrooms, showers, laundry rooms, kitchen and storage areas, common areas, and offices, and all
<br />other ancillary improvements in connection therewith to enable Lessee to operate the Shelter.
<br />The architectural, structural, grading, mechanical, electrical, plumbing, sewer and fire/life safety
<br />standards that shall be applicable to the construction required to complete the Work, shall be
<br />subject to Lessor’s rules and regulations applicable to the performance of the Work (collectively,
<br />the “Work Standards”). Lessor hereby appoints Jeremy Ogulnick as Lessor’s representative
<br />(“Lessor’s Representative”) to act for Lessor in all matters in connection with the Work. Lessee
<br />hereby appoints _____ as Lessee’s representative^) (“Lessee’s Representative^)”) to act
<br />for Lessee in all matters in connection with the Work and Lessee shall be responsible for all costs
<br />authorized by Lessee’s Representative(s). All inquiries, requests, instructions, authorizations and
<br />other communications with respect to the Work shall be made to Lessor’s Representative or
<br />Lessee’s Representative(s), as the case may be. Authorizations made by Lessee’s
<br />Representative(s) shall be binding on Lessee. Authorizations made by Lessor’s Representative
<br />shall be binding on Lessor. Either party may change its representatives under this Section 62 at
<br />any time by written notice to the other party, but any such change shall be effective only upon
<br />receipt by the other party. Notwithstanding the foregoing, in no event shall any direction by
<br />Lessor’s Representative or Lessee’s Representative(s) constitute a change in the terms or
<br />conditions of the Lease, unless the Lease is expressly modified in a writing executed by both
<br />Lessor and Lessee. All work shall be done pursuant to those architectural, electrical, mechanical,
<br />plumbing, life safety and structural drawings and specifications (including all finishes) for the
<br />Work, which shall be approved by Lessor and Lessee (collectively, the “Plans”). Lessee may not
<br />make any material changes, modifications or alterations in the Plans (collectively, “Lessee
<br />Changes”) at any time without Lessor’s prior written approval thereof which shall not be
<br />unreasonably withheld, conditioned or delayed and the cost of any such Lessee Changes shall be
<br />added to the Cost of the Work and shall not be included in the “Contingency Amount” (as defined
<br />below) and in the event of any such approved Lessee Changes, the Cost Estimate shall be
<br />increased by the amount of such Lessee Changes. Lessor may from time to time during the
<br />prosecution of the Work require reasonable modifications or amendments to the Plans due to
<br />unforeseeable conditions or to the extent changes are required to comply with applicable Laws
<br />(“Lessor Changes”) and the cost of any such Lessor Changes shall be included in the
<br />“Contingency Amount” (as defined below), unless it is considered a “Change Order” (as defined
<br />below) approved by Lessee. Lessor acknowledges and agrees that Lessor shall be solely
<br />responsible for causing the Work to be constructed and maintained, in accordance with all
<br />applicable Laws, including, without limitation, the provisions of the American with Disabilities
<br />Act, 42 U.S.C. Section 12101 et seq. and any governmental regulations with respect thereto (the
<br />“ADA”) and other similar Laws. Additionally, to the extent applicable to the Work, Lessor shall
<br />be responsible for complying with all pertinent prevailing wage laws pursuant to California Labor
<br />Code sections 1720, et seq. Lessee shall pay the entire “Cost of the Work”. As used herein, the
<br />term “Cost of the Work” means all costs and expenses in connection with the design, furnishing,
<br />construction and installation of the Work, including without limitation: (a) all architectural,
<br />12926447.1
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