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i <br /> EXHIBIT 2 <br /> environmental laws and required in connection with the construction of the homes and the <br /> routine operation and maintenance of the Property. <br /> 10.5 Notice of Environmental 1Vlatter . Grantee shall immediately advise City in <br /> writing of any of the following. (a)any pending or threatened environmental claim against <br /> Grantee or the Property;or(b)any condition or occurrence that. (i)results in noncompliance with <br /> any applicable environmental law; (ii)could reasonably be anticipated to cause the Property to be <br /> subject to any restrictions on the ownership,occupancy,use or transferability of the Property { <br /> tinder any environmental Law; or, (iii)could reasonably be anticipated to form the basis of an <br /> environmental claim against the Property or Grantee. <br /> 10.6 Environmental IndeEgufficalLon by the Grantee. Grantee agrees to defend, <br /> indemnify and hold harmless the City and its respective officers, directors, employees and <br /> agents, contractors, special counsel, and representatives(collectively the "Indemniiees")from <br /> and against any and all obligations(including removal and rezxrediation), losses, claims ! <br /> (including third party claims),suits,judgments, .liabilities,penalties, damages (including <br /> consequential and punitive damages), costs and expenses (including consultants,and attorneys' <br /> fees) of whatever bind 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 any <br /> Hazardous Materials on the Property, other than resulting from the gross negligence or willful <br /> misconduct of any Indenmitee. <br /> 11. OTHER AFFIRMATIVE COVENANTS <br /> Grantee hereby agrees and declares that the following covenants shall run with the land <br /> and shall be binding on Grantee,its successors and assigns: <br /> 11.1 Existence, The sole member of Grantee'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 CertRln Matters. Grantee shall give notice to City,within ten(10) <br /> business days of Grantee's learning thereof,of each of the following: <br /> (a) any filed litigation or claim affecting or relating to the Property and <br /> involving an amount in excess of$5,000; and any litigation or claim that might subject Grantee <br /> or any general partner to liability in excess of$5,000,whether covered by insurance or not; <br /> (b) any dispute between Grantee and a Goverwnental Authority relating to � <br /> the Property,the adverse determination of which might materially affect the Properly; <br /> (c) any change in G-rantee's principal place of business; <br /> (d) any aspect of the Improvements that is not in substantial conformity with � <br /> the plans or code; <br /> e an event which after the giving of all required( ) y g g q d notices and the expiration <br /> of all applicable cure periods,would constitute an l;vent of Default; <br /> 1 <br /> City Council 16 —29 5/19/2026 <br />