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3.1 Contractors and Construction Contracts. Licensees shall enter into engineering and construction contracts for the Mitigation Work (collectively, the "Construction Contracts") solely with engineers and contractors (collectively, "Contractors") who are acceptable to Licensor in Licensor's reasonable discretion. Licensor hereby acknowledges and agrees that both Brian Kangas Foulk and DeSilva Gates Construction are acceptable to Licensor. Upon the prior written request of Licensor, all Construction Contracts shall be subject to the prior written approval of Licensor, which approval shall not be unreasonably withheld, conditioned or delayed. All Construction Contracts shall be deemed approved by Licensor ten (10) business days after the City's delivery of a complete copy of the Construction Contract to Licensor together with City's written request for approval of the same unless the City is otherwise notified in writing by Licensor within such ten (10) business day period. The Construction Contracts shall provide, in pertinent part, that (i) performance of the Mitigation Work under the Construction Contracts shall not interfere with Licensor's activities at the Project; (ii) the Contractors and all of their subcontractors, agents, suppliers and consultants shall cooperate with any of Licensor's contractors to ensure harmonious working relationships; (iii) the Contractors and all of their subcontractors, agents, suppliers and consultants shall comply with all Laws (as defined in Section 4.2 below) applicable to the Mitigation Work; (iv) all Contractors and their subcontractors, agents, suppliers and consultants shall keep all equipment a minimum of at least fifteen (15) feet back from the top of all existing lagoon slopes; and (v) each Contractor shall indemnify, defend and hold Licensor and its constituent general partners, together with its and their respective officers, directors, shareholders, affiliates, attorneys, guarantors, employees, representatives, agents, heirs, successors and assigns (collectively referred to herein and in Section 4.4 below as the "Indemnitee") harmless from and against all Claims (as defined in Section 4.4 below). 3.2 Permits and Approvals. Licensees, at Licensees' sole cost and expense, shall obtain from the Redwood Shores Owners' Association New Construction Committee (to the extent applicable), the SFBRWQCB, the Corps, the United States Fish & Wildlife Service, the United States Environmental Protection Agency, the California State Lands Commission, the Redwood City General Improvement District No. 1-64, the San Francisco Bay Conservation and Development Commission and any other governmental agencies having jurisdiction over the Property and the Mitigation Work (collectively, "Governmental Agencies"), and maintain in full force and effect throughout the entire term of E:\RE\70140\O62\LICENSE4.WPD 4