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iWa:11:111PA <br />10.2 Compliance with Environmental Laws. Developer shall: (a) comply with <br />all environmental laws and environmental permits applicable to the construction of the <br />Property; (b) immediately pay or cause to be paid all costs and expenses incurred by reason <br />of such compliance; (c) keep the Property free and clear of any environmental claims or <br />liens imposed pursuant to any environmental law; and, (d) obtain and renew all <br />environmental permits required for ownership or use of the Property. <br />10.3 Presence of Hazardous Materials. Developer shall not, and shall not <br />permit anyone else to, generate, use, treat, store, handle, release, or dispose of Hazardous <br />Materials on the Property, or transport or permit the transportation of Hazardous Materials <br />to or from the Property, except for de minimis quantities used at the Property in compliance <br />with all applicable environmental laws and required in connection with the construction of <br />the homes and the routine operation and maintenance of the Property. <br />10.4 Notice of Environmental Matters. Developer shall immediately advise City <br />in writing of any of the following: (a) any pending or threatened environmental claim <br />against Developer or the Property; or (b) any condition or occurrence that: (i) results in <br />noncompliance with any applicable environmental law; (ii) could reasonably be anticipated <br />to cause the Property to be subject to any restrictions on the ownership, occupancy, use or <br />transferability of the Property under any environmental Law; or, (iii) could reasonably be <br />anticipated to form the basis of an environmental claim against the Property or Developer. <br />10.5 Environmental Indemnification by the Developer. Developer agrees to <br />defend, indemnify and hold harmless the City and its respective officers, directors, <br />employees and agents (collectively the "Indemnitees") from and against any and all <br />obligations (including removal and remediation), losses, claims (including third party <br />claims), suits, judgments, liabilities, penalties, damages (including consequential and <br />punitive damages), costs and expenses (including consultants, and attorneys' fees) of <br />whatever kind or nature whatsoever that may at any time be incurred by, imposed on, or <br />asserted against the Indemnitees directly or indirectly based on, or arising or resulting from <br />any Hazardous Materials on the Property, other than resulting from the gross negligence or <br />willful misconduct of any hidemnitee. <br />11. OTHER AFFIRMATIVE COVENANTS <br />The following provisions shall apply, except to the extent that City Project Manager <br />otherwise consents in writing: <br />11.1 Existence. The sole member of Developer's managing general partner shall <br />maintain its existence in good standing under the laws of the State of California. <br />11.2 Notice of Certain Matters. Developer shall give notice to City, within ten <br />(10) days of Developer's learning thereof, of each of the following: <br />(a) any filed litigation or claim affecting or relating to the <br />Property and involving an amount in excess of $5,000; and any litigation or claim that <br />19 <br />80A-27 <br />