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3.14 Defects in Plans. Neither Agency nor City shall be responsible to Developer or to <br />any third party for any defect in the Construction Plans or for any structural or other defect in <br />any work done pursuant to the Construction Plans. Subject to the last sentence of this Section <br />3.14, Developer shall indemnify, defend (with counsel approved by Agency) and hold harmless <br />the Indemnitees from and against all Claims arising out of, or relating to, or alleged to arise from <br />or relate to defects in the Construction Plans or defects in any work done pursuant to the <br />Construction Plans whether or not any insurance policies shall have been determined to be <br />applicable to any such Claims. Developer's indemnification obligations set forth in this Section <br />shall survive the expiration or earlier termination of this Agreement and the recordation of a <br />Certificate of Completion. It is further agreed that Agency and City do not, and shall not, waive <br />any rights against Developer which they may have by reason of this indemnity and hold harmless <br />agreement because of the acceptance by Agency, or Developer's deposit with Agency of any of <br />the insurance policies described in this Agreement. Developer's indemnification obligations <br />pursuant to this Section shall not extend to Claims arising due to the gross negligence or willful <br />misconduct of the Indemnitees. Developer's indemnification obligations set forth in this Section <br />shall not apply if: (i) Developer terminates this Agreement pursuant to Section 4.1.2(b) and <br />neither Developer nor an entity affiliated with Developer, including without limitation, a <br />Controlled Affiliate, completes construction of the Project, or (ii) Agency terminates this <br />Agreement and neither Developer nor an entity affiliated with Developer, including without <br />limitation, a Controlled Affiliate, completes construction of the Project. <br />3.15 Certificate of Completion for Project. Promptly after completion of construction <br />of the Project, issuance of a final Certificate of Occupancy by the City and the written request of <br />Developer, the Agency will provide an instrument ("Certificate of Completion") so certifying, <br />provided that at the time such certificate is requested all applicable components of the Project <br />have been completed. The Certificate of Completion shall be conclusive evidence that <br />Developer has satisfied its obligations regarding the development of the Property. <br />The Certificate of Completion shall be issued substantially in the form attached hereto as <br />Exhibit C, and at Developer's option, shall be recorded in the Official Records. The Certificate <br />of Completion shall not constitute evidence of compliance with or satisfaction of any obligation <br />of Developer to any holder of a deed of trust or mortgage securing money loaned to finance the <br />Project or any part thereof and shall not be deemed a notice of completion under the California <br />Civil Code, nor shall such Certificate provide evidence that Developer has satisfied any <br />obligation that survives the expiration of this Agreement, including without limitation, <br />Developer's obligations pursuant to the Regulatory Agreement. <br />3.16 Equal Opportunity. During the construction of the Project, there shall be no <br />discrimination on the basis of race, color, religion, creed, sex, sexual orientation, marital status, <br />ancestry or national origin in the hiring, firing, promoting or demoting of any person engaged in <br />construction of the Project, and Developer shall direct its contractors and subcontractors to <br />refrain from discrimination on such basis. <br />3.17 Prevailing Wage Requirements. To the full extent required by all applicable state <br />and federal laws, rules and regulations, if any, Developer and its contractors and agents shall <br />comply with California Labor Code Section 1720 et seq. and the regulations adopted pursuant <br />thereto ("Prevailing Wage Laws"), and shall be responsible for carrying out the requirements of <br />1178986-5 12 <br />