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8 behalf of Lessee shall be constructed and rehabilitated in a good, skillful and professional manner, in compliance with all applicable Legal Requirements and in accordance with all of the requirements of the Project Homekey Agreement. Lessee shall bear the entire and sole cost of planning, designing, engineering, financing, constructing, supervising, and inspecting the Improvements, including all fees and mitigation measures. Section 4.2 Permits, Licenses and Easements. Lessor agrees to use Lessor's best reasonable efforts to assist Lessee in obtaining any and all permits, licenses, easements and other authorizations required by any governmental authority with respect to any construction, rehabilitation or other work to be performed on the Leased Premises and to grant, or to assist Lessee in obtaining, as applicable, all permits, licenses, easements and other governmental authorizations that are necessary or helpful for public or private utilities or facilities as may be reasonably necessary or desirable in connection with the construction or operation of the Improvements. Payment of all fees, costs and expenses associated with any of the foregoing shall be the responsibility of Lessee, and Lessor shall have no responsibility to pay any such fees, costs or expenses. Section 4.3 Construction Contract. Lessor shall enter into one or more construction contracts with one or more general contractors for the rehabilitation and construction work for the Improvements with a general contractor reasonably acceptable to the Lessor, which general contractor shall be duly licensed in the State of California and shall have significant experience in organizing and contracting development projects of the type and scale similar to the Project. Section 4.4 Prevailing Wage Requirements. (a) The Lessee shall and shall cause its contractors and subcontractors to pay prevailing wages in the construction and rehabilitation of the Improvements as those wages are determined pursuant to Labor Code Sections 1720 et seq., and the implementing regulations of the Department of Industrial Relations (the "DIR"), to employ apprentices as required by Labor Code Sections 1777.5 et seq., and the implementing regulations of the DIR and comply with the other applicable provisions of Labor Code Sections 1720 et seq., 1777.5 et seq., 1810-1815 and implementing regulations of the DIR. (b) All calls for bids, bidding materials and the construction contract documents for the construction of the Improvements must specify that: (1) No contractor or subcontractor may be listed on a bid proposal nor be awarded a contract for the construction of the Improvements unless registered with the DIR pursuant to Labor Code Section 1725.5. (2) The Development is subject to compliance monitoring and enforcement by the DIR. (c) The Lessee, as the "awarding body", shall register the construction of the Improvements as required by Labor Code Section 1773.3 as set forth in the DIR's online form PWC-100 within two (2) days after entering into the construction contract and provide evidence of such registration to the Lessor within two (2) days of such registration and any additional registration reporting to the DIR. DRAFT