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the Defects Notice in order to avoid action by the City, which date, except in the case of an <br />emergency situation, shall be no Iess than fifteen (15) days after Developer's actual receipt of the <br />Defects Notice. If the City determines a hazardous situation exists which must be remedied <br />immediately ("emergency sitaation'�, then the City will provide written notice to Developer <br />specifying the emergency situation must be remedied within twenty-four (24) hours or such other <br />time as may be mutually agreed upon by the Parties. <br />If after notice from the City Developer fails to correct the specific defects identified <br />in the Defects Notice within the time period specified in the Defects Notice, the City shall have <br />the right to remedy the specific defects identified in the Defects Notice.. City or its assignees shall <br />have the right of access, ingress and egress upon and across the Maintenance Areas as may be <br />necessary to complete such remedial work. The City may retain, as its election, its own <br />contractors, or the Developer's contractors, or other thud party maintenance company to complete <br />the remedial work. Any costs incurred by the City for the remedial work needed to remedy the <br />specific defects identified in the Defects Notice shall, unless patently unreasonable, be bome solely <br />by the Developer. The City shall provide a written itemized invoice and back-up documentation <br />for such costs (e.g., documentation evidencing the number of worker hours spent performing the <br />remedial work, receipts for the purchase of any materials or lease of any equipment needed to <br />perform the remedial work, mechanics' lien releases, etc.) to Developer within thirty (30) days' <br />after the completion of the remedial work. Developer shall remit payment to the City within thirty <br />(30) days from Developer's receipt of the invoice and back-up documentation. The Parties agree <br />that any remedial work undertaken by the City under this section shall not terminate the <br />maintenance obligations of Developer under this Agreement. <br />5. Indemnification. Developer hereby covenants and agrees to indemnify, defend <br />(with legal counsel selected by Developer and reasonably acceptable to City), and hold City, its <br />officers, agents, and employees harmless from and against any and all claims, damages (including <br />damage to property and injury to persons), demands, losses, obligations, judgments, liabilities, <br />costs and expenses (including, without limitation, attorneys' and other fees) arising from or in any <br />way connected to any injury to persons or damage to property caused by the negligence or willful <br />misconduct of Developer or its agents during any installation or maintenance activities by <br />Developer or its contractors or agents in the Maintenance Area. <br />6. Assignment. Developer shall have the right, upon written notice to the City, to <br />assign all of Developer's rights and obligations set forth in this Agreement to a homeowners <br />association ("Association's formed to manage the residential project to be constructed on the <br />Developer Property. Developer hereby covenants and warrants for itself, and for its successors <br />and assigns, that any deed or other instrument conveying fee title to any portion of the Developer <br />Property to the Association shall expressly state and require that the Association assume all of the <br />Developer's obligations under this Agreement. Upon recording the Declaration of Covenants, <br />Conditions and Restrictions for Developer Property, and after assigning Developer's rights and <br />obligations under this Agreement to the Association, the Association shall have all rights and <br />-obligations o€Developerset-forth-in-this-Agreement; and-Developer-shall-thereai%r-have-no—fadher <br />rights, liabilities or obligations under this Agreement and shall be automatically released from all <br />liability under this Agreement. The written notice of the assignment to the Association of the <br />Developer's rights and obligations under this Agreement shall contain appropriate contact <br />information for the Association, including, without limitation, the Association's property <br />sMILHt485365450.a -3- <br />17A-7 <br />