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covenants running with the land. References herein to the Developer, if there be <br />more than one, shall mean each and all of them. <br />3. Defective Material or Labor <br />In case any material or labor supplied by the Developer shall be defective or <br />unsuitable, then the City may reject the same, in which event such rejected material <br />shall be removed and replaced with approved materials and the rejected work shall <br />be done anew to the specifications and approval of the City and at the sole cost and <br />expense of the Developer. <br />I. Indemnification <br />The Developer shall and does hereby indemnify, defend and hold the City, its Council, <br />agents, employees, attorneys and representatives harmless against and in respect to any <br />and all claims, demands, actions, suits, proceedings, losses, costs, expenses, <br />obligations, liabilities, damages, recoveries and deficiencies, including interest <br />penalties and attorney's fees, including without limitation, any litigation which may be <br />commenced by the Developer that the City incurs or suffers which arises out of, results <br />from or relates to any of the following: <br />1. Failure by the Developer to observe or perform any covenant, condition, obligation <br />or agreement on its part either jointly or severally to be observed or performed <br />under this Development Agreement. <br />2. Failure by the Developer to pay Developer's contractors, subcontractors, laborers <br />or material men. <br />3. Failure by the Developer to pay for materials that Developer has ordered. <br />4. Approval by the City of the PUD plans, the final plat plans and other PUD <br />conditions. <br />5. ApprovaI by the City of any final plat. <br />6. Failure to obtain necessary permits and authorizations to construct the Plan A <br />Activities. <br />7. Construction of the Project. <br />8. All costs and liabilities arising because building permits were issued prior to the <br />completion and acceptance of the improvements or because there were delays in <br />12 <br />623964v4 <br />