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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 /> 1755895.3 8 <br />