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29 WHEREAS, the Owner desires to construct and maintain the retaining wall, parking lot 30and landscaping shown in Exhibit A attached hereto (“Encroachments”) within the Easement 31Area for the benefit of the Owner’s Property; 32 NOW THEREFORE, in consideration of the mutual covenants contained herein and for 33other good and valuable consideration, the parties agree as follows: 341. The Owner shall have the right to use the Easement Area to construct, maintain 35and repair the Encroachments, subject to the terms and conditions of this Agreement. 36 2. The Encroachments shall be constructed, maintained and repaired by the Owner at 37the Owner’s sole cost and expense holding the City free and clear of same. The Owner shall 38maintain the Encroachments in a neat, clean and safe condition. 39 3. The Owner shall be responsible for obtaining and paying for all permits, 40variances, approvals, costs, fees and other expenses necessary to construct, maintain and repair 41the Encroachments. The Owner shall construct, maintain and repair the Encroachments in 42compliance with all laws, rules, regulations, codes and ordinances imposed by all governmental 43authorities which have jurisdiction over the Easement Area. 44 4. The Owner hereby releases and discharges the City, and its officers, employees, 45contractors and agents from all damages, liabilities, claims, demands and actions arising out of 46the use and existence of the Encroachments within the Easement Area, including but not limited 47to damages caused to the Encroachments as a result of the exercise by the City, and its officers, 48employees, contractors and agents, of the easement rights granted under the Storm and Sanitary 49Sewer Easement, except to the extent caused by the gross negligence or intentional misconduct 50of the City, its officers, employees, contractors and agents. The Owner hereby further agrees to 51indemnify, defend and hold the City, and its officers, employees, contractors and agents,