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2. The Improvements shall be constructed, maintained and repaired by the Owners at the Owners’ sole cost and expense, holding the City free and clear of same. The Owners shall maintain the Improvements in a neat, clean and safe condition. 3. The Owners shall be responsible for obtaining and paying for all permits, variances, approvals, costs, fees and other expenses necessary to construct, maintain and repair the Improvements. The Owners shall construct, maintain and repair the Improvements in compliance with all laws, rules, regulations, codes and ordinances imposed by all governmental authorities which have jurisdiction over the Easement Area. 4. The Owners hereby covenant and agree to release, indemnify, defend and hold the City, and its mayor, council, officers, employees and agents, harmless from and against any and all claims, losses, liabilities, demands, actions, judgments, damages, penalties, fines, costs and expenses (including attorney’s fees incurred by the City) arising out of or related to: (a) the construction, maintenance and repair of the Improvements; (b) the existence of the Improvements on the Easement Area; (c) use of the Improvements and the Easement Area by the Owners, their licensees, heirs, successors and assigns; and (d) any breach by the Owners of the covenants and agreements in this Agreement. 5. In the event that the Improvements are substantially damaged or totally destroyed, are removed from the Easement Area, or the Owners fail to comply with any of the Owners’ material obligations under this Agreement, the Owners shall remove any remaining portions of the Improvements which are located within the Easement Area and the Owners’ right to construct, maintain and repair the Improvements in the Easement Area shall terminate. The Owners agree to complete such removal at their own cost and in accordance with all applicable laws, codes and regulations pertaining thereto. In the event that the Improvements are not