Agmt 2006 Mercy Housing California XXXIII (4)

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5.6 Change in Construction Plans. If Developer desires to make any material change in the Construction Plans, Developer shall submit the proposed changes to the Agency and City for approval, which approval shall not be unreasonably withheld or delayed ifthe Construction Plans, as modified by any proposed change, conform to the requirements of this Agreement, the Scope of Development, the Project approvals and the Conditions of Approval. For purposes of this Section 5.6, a "material change" means (i) a change which will substantially alter the external appearance of the Project, including any color change, (ii) an individual change that will result in an increase in construction costs in the amount of $50,000 or more, or (iii) an individual change will result an increase in construction costs in the amount of $150,000 or more taking into consideration cumulative changes to date. Unless such proposed change is rejected within five (5) business days, Agency shall be deemed to have approved such change. If rejected within such time period, the previously approved Construction Plans shall continue to remain in full force and effect. Any change in the Construction Plans required in order to comply with applicable law shall be deemed approved, so long as such changes do not substantially, nor materially, change the architecture, design, function, use, or other amenities of the Project as shown on the latest approved Construction Plans. 5.7 Defects in Plans. Neither Agency nor City shall be responsible to Developer or to any third party for any defect in the Construction Plans or for any structural or other defect in any work done pursuant to the Construction Plans. Developer shall indemnify, defend (with counsel approved by Agency) and hold harmless the Indemnitees from and against any Claim for damage to property or injury to or death of any person arising out of or in any way relating to defects in the Construction Plans or defects in any work done pursuant to the Construction Plans whether or not any insurance policies shall have been determined to be applicable to any such Claims. Developer's indemnification obligations set forth in this Section shall survive the termination of this Agreement and the recordation of a Certificate of Completion. It is further agreed that Agency and City do not, and shall not, waive any rights against Developer which they may have by reason of this indemnity and hold harmless agreement because of the acceptance by Agency or City, or Developer's deposit with Agency of any of the insurance policies described in this Agreement. 5.8 Equal Opportunitv. During the work of rehabilitation ofthe Project there shall be no discrimination on the basis ofrace, religion, color, creed, religion, sex, sexual orientation, marital status, ancestry or national origin in the hiring, firing, promoting or demoting of any person engaged in work on the Project. Developer shall direct its contractors and subcontractors to refrain from discrimination on such basis. 5.9 Prevailing Wage Policy. Developer shall carry out and shall cause its contractors to carry out the rehabilitation of the Project in conformity with all applicable laws and regulations, including without limitation, all applicable federal and state labor laws and standards. To the extent applicable to the Project, Developer and its subcontractors and agents, shall comply with California Labor Code Section 1720 et seq. and regulations adopted pursuant thereto ("Prevailing Wage Laws") and shall be responsible for carrying out the requirements of such provisions. Developer shall indemnify, defend (with counsel approved by Agency), protect and hold harmless the Indemnitees from and against any and all Claims whether known or 803698-6 16