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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 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 the Tenant Improvements. Neither Landlord nor any Landlord Party shall have any obligation or liability to Tenant if any Pemtit (including, without limitation, any building permit, certificate of occupancy, or equivalent) is not timely or otherwise 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 (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 fallh 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 ot) the Tenant Improvements such as fire/life safety, FIVAC, 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 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 et seq. of the Labor Code which requires prevailing wages be paid to appropriate work classifiealions in all bid specifications and subcontracts. (b) Landlord shall require the Contractor to furnish all subcontractors/employees a copy or the Department or Industrial Relations prevailing wage rates which Lessor will post at the job site. For further information on prevailing wage: htto://wrvtw.dir cn aov/disr(statistics research htrnl (c) Landlord shall require the Contractor to comply with (and to cause its subcontractors to comply with) the payroll record keeping and availability requirement or§1776 of the Labor Code. (d) Landlord shall require the Contractor to (and to cause its subeonuacto s to Lessor/contractor to) make travel and subsistence payments to workers needed for perm mance of work in accordance with the Labor Code. (e) Prior to conhmencement of work, Landlord shall require the Contractor to contact the Division of Apprenticeship Standards and conmply with § 1777.5, § 1777.6, and § 1777.7 of the Labor Code and Applicable Regulations. 3.3 Delivery of Premises, Substantial Comnl etlow Punch List Items. 3.3.1 Delivery of Premises. Landlord shall deliver the Premises to Tenant upon Substantial Completion of the 'Fenno, Improvements. Subject to Landlord's obligations under this Work Letter (including Landlord's obligations to perfom (or cause to be perfanned) 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 Iandlord's other express obligations under file Lease (including, under Section 9.1 of the Lease), Landlord shall have no duty or obligation to improve, or pay for any improvement lm% the Premises or any portion thereof and Tenant shall accept the same in its Tenant shall accept the Prenmises in its then existing condition on the Delivery Date, "AS -IS", "WITH ALL FAULTS". 33.2 Substantial Comnlcfnn. For proposes of Otis Lease, "Substantial Completion" shall occur upon (and the Premises shall be "Substantially Complete" upon) the substantial completion ofconstruction 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 die exception of any Punch List Items (defined below) and any tenant fixtures, work•stralons, built-in furniture, orequipment to be installed by Tenant or under the supervision orContractor. 3.3.3 Pouch I-Isl Items. Alter the Substantial Completion by Landlord of the Tenant Improvements. representatives of Landlord, Tenant and the Contractor shall complcudy inspect the Premises and complete a list (the "Punch List') of all Punch List Items (defiled below). Authorized representatives- or Landlord. Tenant and the Contractorshall execute said Punch List to indicate their approval thereof. Landlord shall cause the Contractor lu complete all Punch List Items described on the Pmich List as soon os reasonably possible following Ore approval orsuch Punch List, As used Inerrin, "Panrh List Items" means all items of construction which entail one or more details or consuvelion. decoration,. mechanical adjustment or installation that do not materadversely jolly and adveely affect the use and Occupancy of any portion nrthe Premises far the normal conduct ofTenan Ps business. 861 MCirie Cemsr Dr— Cir)•ofs tr.lnrr I.rnsu 3 EdllibilC