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2. ENCROACHMENT AUTHORIZATION. The City hereby approves the <br /> encroachment in the City's easement areas on the Subject Property for the Improvement subject to <br /> the conditions set forth in this Agreement. Further conditions of encroachment approval are: <br /> • The City shall have no responsibility to maintain or repair the Improvement located within <br /> the City's easement areas. <br /> • The Improvement located on the Subject Property must not impact or increase water <br /> drainage on the abutting properties or cause any adverse drainage patterns or erosion <br /> to the abutting properties. <br /> • The Owners are fully responsible and liable for any and all damage caused to the <br /> Improvement because of the Improvement being constructed in the City's easement <br /> areas. <br /> • The owner of the Subject Property will own and maintain the Improvement. <br /> Further, Owners agree that the Improvement shall be constructed consistent with all <br /> applicable federal, state and local laws and regulations. <br /> 3. HOLD HARMLESS AND INDEMNITY. In consideration of being allowed to <br /> encroach in the City's easement areas, Owners, for themselves,their heirs and assigns,hereby agree <br /> to indemnify and hold the City harmless from any damage caused to the Subject Property, including <br /> the Improvement in the City's easement areas, caused in whole or in part by the encroachment <br /> into the City's easement areas. <br /> 4. TERMINATION OF AGREEMENT. The City may terminate this Agreement <br /> at any time if it is reasonably necessary for the City to occupy the easement areas for drainage or <br /> utility purposes and the Improvement is inconsistent with the City' s use of the easement areas. <br /> Prior to termination, the City will give the then owner of the Subject Property thirty (30) days <br /> advance written notice, except that no notice period will be required in the case of an emergency <br /> condition as determined solely by the City and this Agreement may then be terminated <br /> immediately. The property owner shall remove that portion of the Improvement to the extent it <br /> impacts the easement areas to the effective date of the termination of this Agreement. If the <br /> owner fails to do so, the City may remove the Improvement to the extent it impacts the easement <br /> 199463v1 2 <br />