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NOW, TI-TEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS, <br />THE PARTIES AGREE AS FOLLOWS: <br />1_ The City hereby grants Landowner(s) permission to encroach into the City's <br />right-of-wayfdraixnage and utility easements in their sides and rear yard to the extent indicated on <br />the attached EXHIBIT "A". <br />2. Nothing in this Agreement shall be deemed an abandonment, vacation or waiver <br />of the City's interest in the right-,of-way/drainage and utility easement(s). <br />3 , Landowners, for themselves, their heirs, successors and assigns, hereby agree to <br />defend, indemnify and hold the City harmless from all costs and expenses, claims and liability, <br />including attorney fees, relating to or arising out of the grant to Landowners permission to <br />encroach into the City's sides and rear yard right of way/drainage and utility easement(s). <br />Landowners further agree to indemnify and hold the City harmless from any damage caused to <br />the Subject Property as a result of maintenance of the City's right of way/drainage and utility <br />easement(s), including any damage to the boulder type retaining wall within the sides and rear <br />yard caused in whole or part by the encroachment into the City's sides and rear yard right of <br />way/drainage and utility cas ment(s). <br />4. The City does not warrant title or guarantee the continuing right of Landowners to <br />maintain the boulder 13Te retaining wall within the City's sides and rear yard right of <br />way/drainage and utility casement(s). <br />5. Landowners may not replace the boulder type retaining wall in the City's sides <br />and rear yard right of way/drainage and utility easement(s) if the boulder type retaining wall is <br />damaged more than fifty percent (50%) of its fair market value, as measured immediately prior <br />to the damage. <br />2 <br />