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Unruh Civil Rights Act, Civil Code Section 51, et seq.. Developer shall indemnify, defend (with <br />counsel approved by City) and hold harmless the Indemnitees from and against any and all <br />Claims arising in connection with the breach of Developer's obligations set forth in this Section <br />whether or not an insurance policies shall have been determined to be applicable to any such <br />Claims. It is further agreed that City does not and shall not waive any rights against Developer <br />which it may have by reason of this indemnity and hold harmless. agreement because of the <br />acceptance by City, or Developer's deposit with City of any of the insurance policies described <br />in this Agreement. Developer's indemnification obligations set forth in this Section shall not <br />apply to Claims to the extent arising from the gross negligence or willful misconduct of the <br />Indemnitees. Developer's defense and indemnification obligations set forth in this Section 3.18 <br />shall survive the expiration or earlier termination of this Agreement and the issuance of a <br />Certificate of Completion for the Project. <br />3.19 Liens and Stop Notices. Until the expiration of the term of the Regulatory <br />Agreement and full repayment of the Loan, if a claim of a lien or stop notice is given or recorded <br />affecting the Project or the Property, Developer shall within thirty (30) days of such recording or <br />service: (a) pay and discharge (or cause to be paid and discharged) the same; or (b) effect the <br />release thereof by recording and delivering (or causing to be recorded and delivered) to the party <br />entitled thereto a surety bond in sufficient form and amount; or (c) provide other assurance <br />satisfactory to City that the claim of lien or stop notice will be paid or discharged. The <br />provisions of this Section 3.19 shall apply from and after Developer's acquisition of the Property. <br />3.20 Right of City to Satisfy Liens on the Property. If Developer fails to satisfy or <br />discharge any lien or stop notice on the Property pursuant to and within the time period set forth <br />in Section 3.19 above, the City shall have the right, but not the obligation, to satisfy any such <br />liens or stop notices at Developer's expense with prior written notice to Developer and all sums <br />advanced by City for such purpose shall be part of the indebtedness secured by the Deed of <br />Trust. In such event Developer shall be liable for and shall immediately reimburse City for such <br />paid lien or stop notice. Alternatively, the City may require Developer to immediately deposit <br />with City the amount necessary to satisfy such lien or claim pending resolution thereof. The <br />City may use such deposit to satisfy any claim or lien that is adversely determined against <br />Developer. Developer shall file a valid notice of cessation or notice of completion upon <br />cessation of construction of the Improvements for a continuous period of thirty (30) days or <br />more, and shall take all other reasonable steps to forestall the assertion of claims or liens against <br />the Property or the Improvements. The City may (but has no obligation to), with prior written <br />notice to Developer, record any notices of completion or cessation of labor, or any other notice <br />that the City deems necessary or desirable to protect its interest in the Property and the <br />Improvements. <br />3.21 Performance and Payment Bonds. Prior to commencement of construction work <br />on the Project, Developer shall cause its general contractor to deliver to the City copies of <br />payment bond(s) and performance bond(s) issued by a reputable insurance company licensed to <br />do business in California, each in a penal sum of not less than one hundred percent (100 %) of the <br />scheduled cost of construction of the Project. The bonds shall name the City as co- obligee. In <br />lieu of such performance and. payment bonds, subject to City's approval of the form and <br />substance thereof, Developer may submit evidence satisfactory to the City of the contractor's <br />ability to commence and complete construction of the Project in the form of an irrevocable letter <br />1865087.6 15 <br />