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The Defects Notice shall specify the date by which Developer must remedy the specific defects <br />identified in the Defects Notice in order to avoid action by the City, which date, except in the <br />case of an emergency situation, shall be no less than fifteen (15) days after Developer's actual <br />receipt of the Defects Notice. If the City determines a hazardous situation exists which must be <br />remedied immediately ("emergency situation'% then the City will provide written notice to <br />Developer specifying the emergency situation must be remedied within twenty-four (24) hours or <br />such other time as may be mutually agreed upon by the Parties. <br />If after notice from the City Developer fails to correct the specific defects <br />identified in the Defects Notice within the time period specified in the Defects Notice, the City <br />shall have the right to remedy the specific defects identified in the Defects Notice.. City or its <br />assignees shall have the right of access, ingress and egress upon and across the Maintenance <br />Areas as may be necessary to complete such remedial work. The City may retain, as its election, <br />its own contractors, or the Developer's contractors, or other third party maintenance company to <br />complete the remedial work. Any costs incurred by the City for the remedial work needed to <br />remedy the specific defects identified in the Defects Notice shall, unless patently unreasonable, <br />be borne solely by the Developer. The City shall provide a written itemized invoice and back-up <br />documentation for such costs (e.g., documentation evidencing the number of worker hours spent <br />performing the remedial work, receipts for the purchase of any materials or lease of any <br />equipment needed to perform the remedial work, mechanics' lien releases, etc.) to Developer <br />within thirty (30) days' after the completion of the remedial work. Developer shall remit <br />payment to the City within thirty (30) days from Developer's receipt of the invoice and back-up <br />documentation. The Parties agree that any remedial work undertaken by the City under this <br />section shall not terminate the 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 <br />(including damage to property and injury to persons), demands, losses, obligations, judgments, <br />liabilities, costs and expenses (including, without limitation, attorneys' and other fees) arising <br />from or in any way connected to any injury to persons or damage to property caused by the <br />negligence or willful misconduct of Developer or its agents during any installation or <br />maintenance activities by 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 <br />the Developer's obligations under this Agreement. Upon recording the Declaration of <br />Covenants, Conditions and Restrictions for Developer Property, and after assigning Developer's <br />rights and obligations under this Agreement to the Association, the Association shall have all <br />rights and obligations of Developer set forth in this Agreement, and Developer shall thereafter <br />have no further rights, liabilities or obligations under this Agreement and shall be automatically <br />released from all liability under this Agreement. The written notice of the assignment to the <br />Association of the Developer's rights and obligations under this Agreement shall contain <br />SNaH:485365450.6 -3- <br />