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agreed upon and approved by the City. The Owners shall be required to obtain a land alteration <br /> permit and agree to restore the subject property as required in the land alteration permit. An escrow <br /> agreement shall be executed contemporaneously with this Agreement to guaranty restoration will be <br /> completed on the subject property. <br /> 3. INTEREST IN RIGHT-OF-WAY. Nothing in this Agreement shall be deemed a <br /> wavier or abandonment of the City's interest in the right-of-way within Lydiard Avenue. <br /> 4. COST, MAINTENANCE AND REPAIR. In consideration of being allowed to <br /> encroach on the City's right-of-way, the Owners shall be solely responsible for all costs relating to <br /> the repair of the seawall. <br /> 5. HOLD HARMLESS AND INDEMNITY. The Owners, their successors, heirs, <br /> and assigns, hereby agree to indemnify and hold the City harmless from all costs and expenses, <br /> claims and liability,including attorney's fees,relating to or arising out of this grant to the Owners of <br /> permission by the City to encroach within the City's right-of-way. The Owners further agree to <br /> indemnify and hold the City harmless from any damage caused, in whole or in part, by the <br /> encroachment into the City's right-of-way and the City's use of the right-of-way. <br /> 6. TERMINATION. If the portion of the seawall within Lydiard Avenue interferes <br /> with the use, maintenance, or repair of the City's right-of-way, the Owners shall remove the <br /> interference, at their sole expense. If the Owners fail to remove any interference as provided in this <br /> paragraph, then the City may, at its sole discretion, terminate this Agreement at any time by giving <br /> the Owners thirty (30) days advance written notice, and may then remove the interference and <br /> charge the cost to the Owners or have it assessed against the subject property. <br /> 7. RECORDING. This Agreement shall be recorded against the title to the subject <br /> property and shall be binding upon the Owners,their heirs,assigns, and successors in interest. <br /> 13550002 2 <br />