Who is responsible for verifying compliance with laws and the adequacy of the Design and Construction Standards for their intended purpose when opening a The Standardx franchise?

To the extent that any of the matters in this Section 3 involve compliance with the Design and Construction Standards, Franchisee shall cause its Consultants and contractors to implement the direction provided by Hyatt during the review process in order to ensure that the Project complies with the Design and Construction Standards.

Franchisee's contracts with all Consultants and contractors shall provide that all concepts, plans, specifications and designs, and any changes thereto or departures therefrom subsequently made, shall be submitted for Approval to Franchisee and Hyatt prior to implementation. Franchisee acknowledges that Hyatt's design and construction reviews shall not consist of a Peer Review, but rather are intended only to assist Franchisee and its Consultants in complying with their obligations. Such reviews do not relieve Franchisee or its Consultants of their responsibility to determine the completeness and coordination of their documents and to ensure that the design and construction of the Project comply with applicable Legal Requirements. Peer Review shall be conducted by third party professional consultants retained by Franchisee to review the Consultants' work.

Upon completion of the Project, Franchisee shall give Hyatt a written certificate or opinion from Franchisee's architect, licensed professional engineer, or recognized expert consultant stating that the Hotel conforms to all applicable Legal Requirements (including, without limitation, requirements governing public accommodations for persons with disabilities).

At Hyatt's request, Franchisee (i) must give Hyatt copies of all certificates of architects, contractors, engineers, and designers and such other similar verifications and information Hyatt reasonably requests and (ii) make available to Hyatt copies of all reports, studies, draw requests, schedules and other documents and materials of Franchisee, its contractors, suppliers and consultants relating to the design, construction and furnishing of the Hotel.

requirements or the adequacy of budgets), compliance with applicable Legal Requirements (including but not limited to environmental, construction density, labor or any other kind of regulations), or the obtaining of any necessary licenses, permits or authorizations, all of which shall be the exclusive responsibility of Franchisee, to be obtained and complied with at the cost and expense of Franchisee.

The scope of Hyatt's review and Approval of plans, designs and specifications is limited solely to brand adequacy and relationship of spaces, quality standards, and the aesthetics of the building for use as a hotel of the applicable brand (a "Brand hotel"). All reviews and Approval by Hyatt are for the sole and exclusive benefit of Franchisee and Hyatt and no other person or party shall have the right to rely on any such reviews or Approval by Hyatt. Notwithstanding Hyatt's right of review and Approval, Franchisee and Hyatt acknowledge and agree that none of the Consultants or other contractors of Franchisee will be agents or employees of Hyatt.

Hyatt agrees to use commercially reasonable efforts in connection with its review and approval of plans and its approval to open the Hotel in affiliation with the Proprietary Marks, including by making a reasonable number of visits to the Site and providing reasonable guidance and advice relating to the Hotel's development or conversion. Franchisee must pay Hyatt's then current fees (if any) for any additional guidance, services or assistance (beyond what Hyatt typically provides to similarly situated Brand Hotels, subject to Reasonable Deviations) that Franchisee requests, and that Hyatt (at its option) agrees to provide, in connection with the Hotel's development or conversion. Hyatt's review and approval of plans, its providing construction, design, architectural, planning and/or related services in connection with the Hotel (whether before or after signing this Agreement), and its approval to open the Hotel in affiliation with the Proprietary Marks are intended only to determine compliance with Hyatt's pre-opening requirements. Hyatt's determination that Franchisee has met all of Hyatt's pre-opening requirements will not constitute a representation or warranty, express or implied, that the Hotel complies with any laws or is safe for occupancy, nor shall such determination act as a waiver of Franchisee's non-compliance, or of Hyatt's right to demand full compliance, with such pre-opening requirements or any other provision of this Agreement. Hyatt will have no liability to Franchisee for the Hotel's construction or renovation. It is Franchisee's responsibility to ensure that the Hotel (a) complies with Hyatt's requirements as communicated to Franchisee by Hyatt, (b) complies with all Accessibility Laws and other applicable ordinances, building codes, and permit requirements, and (c) is safe for occupancy.

Franchisee shall manage all aspects of the construction of the Project. In performing these responsibilities, Franchisee, either on its own or through its Consultants or contractors, shall, without limiting any other obligations of Franchisee:

• (a) Cause qualified and professionally licensed third party consultants expert in the commissioning of fire and life safety and MEP systems to test, balance and commission such systems, and to issue written reports to Franchisee and Hyatt certifying that they have tested, balanced and commissioned such systems and that such systems are fully operational and ready for use (such reports to be received by Hyatt prior to final review by Hyatt of the Project and turnover of the Hotel in accordance with the Franchise Agreement).
• (b) Provide Hyatt with certification from a qualified, professionally licensed independent structural engineer or firm, certifying that the Hotel building as designed and constructed meets or exceeds all applicable structural requirements, including without limitation seismic, wind, storm and flood, and all other applicable Legal Requirements.
• (c) Ensure that Franchisee's Consultants and contractors conduct a final work list and punch list survey of the Project and correct all defects prior to requesting final review and Approval of the Project by Hyatt. Upon correction of all defects and completion of all remaining work items identified on the punch list, Franchisee shall provide Hyatt with a copy of the punch list signed by the Consultants and contractors reflecting that such work has been completed to Hyatt's satisfaction, and shall request a final review of the Project by Hyatt.

Source: Item 18 — OTHER INCOME (LOSS), NET (FDD pages 187–399)