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Borrower and Borrower's contractors shall rely in rehabilitating the Improvements (including the <br />landscaping, parking, and common areas). Provided that the Construction Plans are consistent <br />with the requirements of this Agreement, approval of the Construction Plans by City shall be <br />deemed approval thereof by City. <br />3.11 Construction Pursuant to Plans. Borrower shall rehabilitate the Improvements in <br />accordance with the approved Construction Plans (as such plans may be modified consistent with <br />this Agreement and approved by City), and pursuant to the Conditions of Approval, and all other <br />permits and approvals granted by the City and /or the City pertaining to rehabilitation of the <br />Project. Borrower shall comply with all directions, rules and regulations of any fire marshal, <br />health officer, building inspector or other officer of every governmental agency having <br />jurisdiction over the Property or the Project. Each element of the work shall proceed only after <br />procurement of each permit, license or other authorization that may be required for such element <br />by any governmental agency having jurisdiction. All design and construction work on the <br />Project shall be performed by licensed contractors, engineers or architects, as applicable. <br />3.12 Change in Construction Plans. If Borrower desires to make any material change <br />in the approved Construction Plans, Borrower shall submit the proposed change in writing to the <br />City for their written approval, which approval shall not be unreasonably withheld or delayed if <br />the Construction Plans, as modified by any proposed change, conform to the requirements of this <br />Agreement and any approvals issued by City after the Effective Date. If a proposed change is <br />neither approved nor denied by City within thirty (30) days following the date the proposed <br />change is received by City as evidenced by City's written acknowledgement, it shall be deemed <br />approved. If rejected, the previously approved Construction Plans shall continue to remain in <br />full force and effect. Any change in the Construction Plans required in order to comply with <br />applicable codes shall be deemed approved, so long as such change does not substantially nor <br />materially change the architecture, design, function, use, or amenities of the Project as shown on <br />the latest approved Construction Plans. Approval of changes to the Construction Plans by City <br />shall be deemed approval thereof by City. Nothing in this Section is intended to or shall be <br />deemed to modify the City's standard plan review procedures. <br />3.13 Defects in Plans. City shall not be responsible to Borrower or to any third party <br />for any defect in the Construction Plans or for any structural or other defect in any work done <br />pursuant to the Construction Plans. Borrower shall indemnify, defend (with counsel reasonably <br />approved by City) and hold harmless the Indemnitees from and against all Claims arising out of, <br />or relating to, or alleged to arise from or relate to defects in the Construction Plans or defects in <br />any work done pursuant to the Construction Plans whether or not any insurance policies shall <br />have been determined to be applicable to any such Claims. Borrower's indemnification <br />obligations set forth in this Section shall survive the expiration or earlier termination of this <br />Agreement and the recordation of a Certificate of Completion. It is further agreed that City does <br />not, and shall not, waive any rights against Borrower which they may have by reason of this <br />indemnity and hold harmless agreement because of the acceptance by City, or Borrower's <br />deposit with City of any of the insurance policies described in this Agreement. Borrower's <br />indemnification obligations pursuant to this Section shall not extend to Claims arising due to the <br />gross negligence or willful misconduct of the Indemnitees. <br />1755895.2 <br />