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limitation, all costs of design, engineering, materials, labor, construction and inspection arising in <br /> connection with the Improvements; all payments arising under any contracts entered into for the <br /> construction of the Improvements; all costs incurred in connection with obtaining <br /> governmental approvals, certificates, permits, easements, rights-of-way, or sites required as a <br /> part of the construction of the Improvements; and all out-of-pocket expenses, including interest <br /> costs, incurred in connection with the construction of the Improvements. The City shall not be <br /> liable to any contractor, engineer, attorney, materialman or other parry employed or contracted <br /> with, in connection with the construction of the Improvements, but shall only be obligated to <br /> reimburse the Developer in the manner and to the extent of revenues provided in Section 3 of <br /> this Agreement. After completion of the Improvements and acceptance of the Improvements by <br /> the City,the City shall operate and maintain the Improvements at its expense. <br /> 5. Indemnity. The Developer shall indemnify and hold the City and Zone No. 4 <br /> harmless from and against all losses, costs, damages, expenses and liabilities (herein collectively <br /> referred to as "Losses")of whatsoever nature, including, but not limited to, attorneys'fees, costs of <br /> litigation, court costs, amounts paid in settlement and amounts paid to discharge judgments <br /> relating to any claim, lawsuit, cause of action or other legal action or proceeding brought against <br /> the City and Zone No. 4, or to which the City and Zone No. 4 may be a party, even if groundless, <br /> false or fraudulent, directly, or indirectly resulting from, arising out of or relating to the <br /> acquisition, purchase or construction of the Improvements. In the event of any action brought <br /> against the City in which indemnification by the Developer is applicable, the City shall promptly <br /> give written notice to the Developer, and the Developer shall assume the investigation and <br /> defense of such action, including the employment of counsel and the payment of all expenses. <br /> The City and Zone No. 4 shall have the right, at their expense, to employ separate counsel and to <br /> participate in the investigation and defense of any such action. The Developer shall not be liable <br /> for the settlement of any such action made by the City and Zone No. 4 without the consent of the <br /> Developer; provided, however, that in the event of any settlement entered into with the consent of <br /> the Developer or of any final judgment for a plaintiff in such action, the Developer shall <br /> indemnify and hold the City and Zone No. 4 harmless from and against any losses incurred by <br /> reason of such settlement or judgment. The expiration of the terms of this Agreement shall not <br /> relieve the Developer from any liability hereunder arising prior to the expiration of this <br /> Agreement, provided; however, notwithstanding anything to the contrary herein, the Developer's <br /> indemnity for each portion of the Improvements accepted by the City for operation and <br /> maintenance shall be coterminous with the warranty period for the particular Improvements. <br /> 6. Continuing Securities Disclosure. To the extent the City elects to issue bonds as <br /> provided in Section 3(d), the Developer agrees to provide periodic information and notices of <br /> material events regarding the Developer and the development within Zone No. 4 in accordance with <br /> the Securities and Exchange Commission Rule 15c2-12. Any notices provided in <br /> accordance with this Section 6 shall also be provided to the other parties to this Agreement. <br /> 7. Construction of Improvements. All improvements will be constructed in a <br /> good and workmanlike manner in accordance with the Development Regulations, City Code, and <br /> all other applicable regulatory agencies. <br /> 4 <br />