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Agency shall defend and indemnify and hold harmless Shea and its officers, <br />employees, partners, agents, attorneys and owners against any claims or litigation brought <br />by third parties and directly arising from the sole negligence or willful misconduct of <br />Agency or its agents which may arise out of or in any manner be connected with the <br />performance by Agency of its duties under this Agreement or with respect to the Shea <br />Project. <br /> <br /> {}507 Rights of Access <br /> For the purpose of assuring compliance with this Agreement, representatives of <br />Agency shall have the right of access to and over the Shea Project Site, without charges <br />or fees, at normal construction hours during the period of construction for the purposes of <br />this Agreement, including, but not limited to, the inspection of the work being performed <br />in constructing the improvements, so long as such representatives comply with all safety <br />rules. Shea will not be responsible in any a~aanner whatsoever for any liabilities arising <br />fi.om the negligence, gross negligence or willful misconduct of Agency, or any of its <br />agents, servants, employees and contractors in connection with the exercise of the right of <br />access granted hereunder. <br /> <br /> {}508 Local, State and Federal Laws; Prevailing Wages Policy <br /> Shea shall carry out the construction of the improvements in conformity with all <br />applicable laws, including the Prevailing Wages Policy of Agency set forth in its <br />Resolution No. RDA 88-07. <br /> <br /> §509 Anti-Discrimination During Construction <br /> Shea, for itself and its successors and assigns, agrees that in the construction of <br />the improvements provided for in this Agreement, Shea will not discriminate against any <br />employee or applicant for employment because of race, color, creed, religion, age, sex, <br />sexual preference, marital status, handicap, national origin or ancestry. <br /> §510 Taxes, Assessments, Encumbrances and Liens <br /> <br /> Shea shall p~ay when due all real estate taxes and assessments assessed and levied <br />on the Shea Project Site for any period subsequent to conveyance of title to or delivery of <br />possession of the Acquisition Parcels. Prior to the issuance ora Certificate of <br />Completion for a Project Phase, Shea shall not, except as expressly permitted by <br />Section 511 of this Agreement, place or allow to be placed on such Project Phase or any <br />part thereof any mortgage, deed of trust, grant deed, encumbrance or lien unauthorized by <br />this Agreement. Shea shall remove or have removed any levy or attachment made on <br />such Project Phase or any part thereof, Or assure the satisfaction thereof, within a <br />reasonable time but in any event prior to a sale thereunder. Nothing herein contained <br />shall be deemed to prohibit Shea from contesting the validity or amounts of any tax, <br />assessment, encumbrance or lien, nor to limit the remedies available to Shea in respect <br />thereto. <br /> <br /> Shea understands that under certain conditions its control of any Project Phase or <br /> portion thereof under this Agreement may give rise to the imposition of a possessory <br /> interest tax on said property, and in such event, Shea agrees to pay when due any such <br /> possessory interest tax. <br /> <br /> 27 <br />wc-21875' <br /> <br /> <br />