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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 Engineers to submit the Approved Working Drawings to the appropriate governmental on cities 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 consuuctlon of the Tenant Improvements, Neither Landlord nor any Landlord Party shell 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 otherwise issued. 3.2 Landlord's Selection mid Retention of the Constructor. 3.2.1 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 Improvements such its 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) slid is 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 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 One Contractor to famish all subcontractors/employees a copy of the Department of Industrial Relations prevailing wage rates which Lessor will post at One job site. For farther information on prevailing wage: httn//www din en aov/dlsr/statistics research.hhnl (c) Landlord shall require the Contractor to comply with (and to cause its subcontractors to comply with) the payroll record keeping and nvailabi lily requirement of § 1776 of the Labor Code. (d) Landlord shall require the Contractar to (and to cause its subcontractors to Lessor/contractor to) make travel and subsistence payments to workers needed for performance of work in uccordance with One Labor Code. (e) Prior to commencement of work, Landlord shall require the Contractor to contact die Division of Apprenticeship Sumdads and comply with §1777.5, §1777.6, and § 1777.7 offhe Labor Code and Applicable Regulations. 3.3 Delivery of Premises; Substantial Completion Punch List Items. 33.1 Delivery of Premises. Landlord shall deliver the Premises to Tenant upon Substantial Completion or the Tenant Inysrovements. Subject 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 (or cause to be constructed) the Tenant Improvements in accordance with the Construction Drawings) and to all of Landlord's other express obligations under the Lease (including, under Section 21 of the Lease), Landlord shall have no duly or obligation to improve, or pay for any improvement for, the Premises or any portion thereof and Tenant shall accept the same in its Tenant shall accept the Prennises in ds.then existing condition on the Delivery Date, "AS -IS", "WITHALL FAULTS". 3.3.2 Substantal Completion. For purposes or this [.ease, "Substantial Completion" shall occur upon (and the Prennises shall be "Substantially Complete" upon) the substantial completion of ounstr ction of the Tenant Improvements pursuant to the Approved Working Drawings, as evidenced by a "signoll'- on the building permit card by so inspector of the applicable governmental authority (typically the city in which the Building is located), with the exception of any Punch List Items (defined below) and any tenant fixtures. work-slations, built,m furniture, orcquipmenl to be installed by Telninl or under the supervision ot'Contactor. 3.3.3 Patch LIM Items. Afton the Substantial Completion by Landlord of the Tenant Improvements, representatives of Landlord,'fenant mid the Contractor shall completely Inspect the Promises and complete a list (die "Punch List') of all Punch List hems diLflied below). Authorized representatives or Landlord. Tenant and the Contractor shall execute said Punch List to indicate their approval thereof. Landlord shnli cause the Contractor to complete all Punch List Items described on the Puich List as soon as reasonably possible following the approval of such Punch List, As used herein, "Punch List Reins" means- all items of construction VVhlCIl entail one or more details of construction. decoration. mechanical adjustment lir installation that do not i nnerially and OCIM Sely affect the use and occupancy orally potion ol'the premise; tin, the normal conduct OrT'enants business. 861 11'Civie Center Or - C'iM nJ'.S'nnm: bm Lrase 3 Hi l it C