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2890662.3 9 <br />3.12 Construction Pursuant to Plans. Developer shall construct the Project in <br />accordance with the approved Construction Plans, the Conditions of Approval, and all other <br />permits and approvals granted by the City pertaining to development of the Project. Developer <br />shall comply with all directions, rules and regulations of any fire marshal, health officer, building <br />inspector or other officer of every governmental agency having jurisdiction over the Property or <br />the Project. Each element of the work shall proceed only after procurement of each permit, <br />license or other authorization that may be required for such element by any governmental agency <br />having jurisdiction. All design and construction work on the Project shall be performed by <br />licensed contractors, engineers or architects, as applicable. <br />3.13 Change in Construction Plans. If Developer desires to make any material change <br />in the approved Construction Plans, Developer shall submit the proposed change in writing to the <br />City for its written approval, which approval shall not be unreasonably withheld or delayed if the <br />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. The Parties shall meet in <br />good faith to discuss the changes if the City propose to reject the changes. Any change in the <br />Construction Plans required in order to comply with applicable codes shall be deemed approved, <br />so long as such change does not substantially nor materially change the design, function, use, or <br />amenities of the Project as shown on the latest approved Construction Plans. <br />3.14 Defects in Plans. City shall not be responsible to Developer 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. Developer shall indemnify, defend (with counsel approved <br />by City) and hold harmless the Indemnitees (defined in Section 3.17 below) from and against all <br />Claims arising out of, or relating to, or alleged to arise from or relate to defects in the <br />Construction Plans or defects in any work done pursuant to the Construction Plans whether or <br />not any insurance policies shall have been determined to be applicable to any such Claims. <br />Developer’s indemnification obligations set forth in this Section shall survive the expiration or <br />earlier termination of this Agreement and the recordation of a Certificate of Completion. It is <br />further agreed that City do not, and shall not, waive any rights against Developer which they may <br />have by reason of this indemnity and hold harmless agreement because of the acceptance by <br />City, or Developer’s deposit with City of any of the insurance policies described in this <br />Agreement. Developer’s indemnification obligations pursuant to this Section shall not extend to <br />Claims arising due to the gross negligence or willful misconduct of the Indemnitees. <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 City will provide an instrument (“Certificate of Completion”) so certifying. <br />The Certificate of Completion shall be conclusive evidence that Developer has satisfied its <br />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 />31