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SECTION CONSTRUCTION; DELIVERY OP P12EMISES; SUBSTANTIAL COMPLETION: PUNCH LIST ITEMS 3.1 Permits. Landlord will cause Landlord's Architect and the Engineers 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 dnc Tenant Improvements. Neither Landlord nor any Landlord Party shall have any obligation or liability to Tenant if any Permit (including, without limitation, any building permit, certificate of occupancy, or equivalent) is not timely or othevvise issued. 3.2 Landlord's Selection and Retention of the Contractor. 3.2.1 Landlord shall submit the Construction Drawings for the Premises on a fixed contract amount (o' 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 Improvements 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 in 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, on account of any nonperformance or any misconduct crony Contractor (or any subcontractor thereof) for any reason. 3.2.3 If the Tenant hnprovements 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 et seq. of the Labor Code which requires prevailing wages be paid w appropriate work classifications in all bid specifications and subcontracts. (b) Landlord shall require the Contractor to furnish all subcontractors/employees a copy of the Department of Industrial Relations prevailing wage rates which Lessor will post at the job site. For further information on prevailing wage: htto://www.dir.ca,gov/dlsr/statistics research.html (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/contractor to) make travel and subsistence payments to workers needed for performance of work in accordance with the Labor Code. (e) Prim- to commencement of work, Landlod shall require the Contractor to contact the Division of Apprenticeship Snundards and comply with §1777.5, §1777.6, and §1777.7 of the Labor Code and Applicable Regulations. 3.3 Delivery ol'Premises; Substantial Comoletiom Pu nch List Items. 3.3.1 Delivery of Premises. Landlord shall deliver the Premises to Tenant upon Substantial Completion of the Tenant Improvements. Subject to Landlord's obligations under this WmIc Letter (including Landlord's obligations to perfomn (or cause to be performed) the Landlord's Work and to construct (or cause to he constructed) the Tenant Improvements in accordance with the Construction Drawings) and to all of Landlord's other express obligations nuclei the Lease (including, under Section 9.1 of the Lease), Landlord shall have no duty or obligation to improve, or pay for any improvennent for. the Premises or any portion thereof and Tenant shall accept the same in its Tenant shall accept the Premises in its then existing condition on the Delivery Date, "AS -IS", "WITI I ALL FAULTS". 3.3 .2 Substantial Completion. For purposes of this Lease, "Substantial Completion' Shall occur Upon (and the Premises shall be "Substantially Complete' upon) the substantial completion of construction 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 the exception bran ' fany Punch List Items defined below) and any tenant GXtUrCS, woiic-stations, built-in furniture, or equipment to be installed by Tenant or under the supervision of Contractor, 3.3.3 Punch Us( Items. Atter the Substantial Completion by Landlord of the Tenant Improvenncnts, represcnmuVes of Landlord, Tenant and the Contracon shall completely inspect the Premises and complete a list (the "Punch List-) of all Punch List Items (defined below). Aulhorizcd representatives of Landlord. Tenant and the Contractor shall execute said Punch List to indicate their approval thereof. Landlord shall cause the Contractor to complete all Parch List hCmS described on the Punch List as soon as reasonably possible following the approval of such Punch List. As used herein_ --Punch List Items means all items of construction which entail one at more detnilS of conSLJUC6011. decoration. mechanical adjusment or installation that do not nunterially and adversely affect the use and occupancy of any potion of the Premises for the normal conduct of Teaanl S business-. 80111'Civie Center Dr—City o/SmunAna Lease 3 Fsh,h,i C