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2. ENCROACHMENT AUTHORIZATION. The City hereby approves the <br /> encroachment in its easement area on the Subject Property subject to the conditions set forth in this <br /> Agreement. The Owners agree that all work performed on the Subject Property shall be inspected <br /> and approved by the City Engineer and in accordance with the City Codes. The Owners shall be <br /> responsible for all costs associated with the removal of the retaining wall,the re-grading and the <br /> replacement of the sidewalk and driveway. The Owners shall be responsible for the maintenance of <br /> the sidewalk and driveway. <br /> 3. HOLD HARMLESS AND INDEMNITY. In consideration of being allowed to <br /> encroach in the City's easement area,the Owners for themselves,their heirs and assigns, hereby <br /> agree to indemnify and hold the City harmless from any damage caused to the Subject Property, <br /> including the removal of the retaining wall,the re-grading and the replacement of the sidewalk and <br /> driveway in the City's easement area, caused in whole or in part by the encroachment into the City's <br /> easement area. <br /> 4. TERMINATION OF AGREEMENT. The City may, at its sole discretion, <br /> terminate this Agreement at any time by giving the then owner of the Subject Property thirty(30) <br /> days advance written notice, except that no notice period will be required in the case of an <br /> emergency condition as determined solely by the City and the Agreement may then be <br /> terminated immediately. The property owner shall remove the sidewalk and the driveway to the <br /> effective date of the termination of this Agreement. If the owner fails to do so,the City may remove <br /> the sidewalk and driveway and charge the cost of removal back to the owner for reimbursement. <br /> 5. RECORDING. This Agreement shall run with the land and shall be recorded <br /> against the title to the Subject Property. <br /> [Signatures contained on following pages.] <br /> 177122v1 2 <br />