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SECTION 3 CONSTRUCTION: DELIVERY OF PREMISES• SUBSTANTIAL COMPLETION• PUNC14 LIST ITEMS 3.1 Permits. Landlord will cause Landlord's Architect and this 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 Permit (including, without limitation, any building permit, certificate of occupancy, or equivalent) is not timely orotherwise issued. 3.2 Landlord's Select ioil and Retention of the Contractot, 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 file subcontractor or subcontractors to perform particular trades (or components no 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 ilia 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 orally Contractor (or any subcontractor thereof) for any reason. 3,2.3 If the Tenant Improvements shall constitute "public works: pursuantto Labor Code § 1720.2, the following shall apply: (a) Landlord shall require the Contractor to comply with (and to cause its subcontractors to comply wide) 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. (h) Landlord shall require the Contractor to furnish all subcontractors/employees a copy of the Department or Industrial Relations prevailing wage rates which Lessor will post at ilia Job site. For further information on prevailing wage: htto://www.dir cat ggv/disr/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/conbroctor to) snake travel and subsistence payments to workers needed for performance of work in accordance with the Labor Code. (e) Prior to commencement of work, Landlord shall require the Contractor to contact the Division of Apprenticeship Semdads slid comply with § 1777.5, §1777.6, and § 1777.7 of the Labor Code and Applicable Regulations. 3.3 Delivery of Premises: Substantial Completion• Punch List Items. 3.3.1 Delivery of Premises. Landlord shall deliver [he Premises to 'fallout upon Substantial Completion of the Tenant Improvements. Subject to Landlord's obligations under [his Work Letter (including Landlord's obligations to perfomr (or cause to be performed) [he Landlord's Work and to construct (or cause to be consuiicted) the Tenant improvements in accordance with the Construction Drawings) and to all of Landlord's other express obligations under the Lease (including, under Section 2.1 of the Lease), Landlord shall have no duty 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 Premises in its then existing condition on the Delivery Date, "AS -IS", "WITH ALL FAULTS". 3.3.2 Stilislantial Com iletion, For purposes of this Lease, "Substantial Completion" shall occur upon (and the Premises shall be "Subs(antially Complete" upon) the substantial completion orconstmction ofthe Tenant Improvements pursuant to the Approved Working Drawings, as evidenced by a "signor'' on the building permit card by tan 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 -stations, built-in furniture, or equipment to be installed by Tenant or under [he supervision of Contractor. 3.3.3 Unch List Items. Allen• the Substantial Completion by Landlord of the Tempt Improvements. mpresentntives of Landlord, 'tenant land the Contractor shall completely inspect [die Premises and complete a list (the "Punch List") of all Punch List hems (defined below). Authorized represcnmtivcs of Landlord. Tenant and the Contractor shall execute said Punch List to indicate their approval thereof Landlord shall cause the Contractor to complete all Punch List Items described oil the Paich List as soon as reasonably possible following the approval orsuch Punch List, As used herein, "Parch List Items" trans all items of construction which entail one or more details of construction, decoration. mechanical adjustment or installation that do not materially and adversely affect the use and occupancy of oily portion of Ore premises for the nornnal conduct of'Penn ll's business. 801 ircinie Center Dr.- Oly of.SantflAna Lease 3 13ah ill itC