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GRANTOR: LEISURE SPORTS, INC. APN: 941-1311-36-3 AND 941-1311-39 <br />PROJECT: JOHNSON DRIVE ECONOMIC DEVELOPMENT ZONE PROJECT <br />D. In the event GRANTOR sells, conveys or assigns any property interest, <br />encumbered by the Agreement prior to CITY exercising the rights grant herein, <br />GRANTOR shall notify the successor or assigner of the rights and obligations of <br />both parties as included herein. <br />D. In case of unpredictable delays in construction, upon written notification by CITY, <br />the terms of the TCE may be extended by an amendment to this Agreement. <br />GRANTOR shall be compensated based on the fair market value at the time of the <br />extension. Payment shall be made to the GRANTOR for the extension prior to the <br />expiration of the original TCE period. <br />E. CITY shall indemnify, defend and hold harmless GRANTOR from and against all <br />claims, causes of action, damages, liabilities, injuries, actions, costs and expenses <br />(including reasonable attorneys' fees and costs), arising from or related to CITY's <br />use of the TICE area, exercise of CITY's rights under this Agreement, or work <br />performed in connection with the Project. The provisions of the immediately <br />preceding sentence shall not be applicable to the extent of GRANTOR's gross <br />negligence or willful misconduct. <br />F. Rights of ingress to and egress from the GRANTOR's remaining property shall be <br />maintained at all times during the construction period. <br />5. CITY Performed Work. All work done under this Agreement shall conform to all applicable <br />building, fire and sanitary laws, ordinances, and regulations relating to such work, and shall be <br />done in a good workmanlike manner. All structures, improvements or other facilities, when <br />removed, and relocated, or reconstructed by the CITY or its authorized agent, shall be left in as <br />good condition as found. <br />6. Indemnification. CITY shall indemnify, defend, and hold harmless GRANTOR from and <br />against all claims, causes of action, damages, liabilities, cost and expenses (including <br />reasonable attorney fees and costs), arising from or related to CITY's use of the Property and <br />exercise of CITY's rights under this Agreement, except as to action, damages, liabilities or costs <br />due to GRANTOR's gross negligence or willful misconduct. <br />7. Right of Possession and Use. CITY's right of possession and use of the Permanent <br />Easement and TCE, including the right to remove and dispose of improvements, and install and <br />connect utilities, shall commence on the date the amount of funds as specified in Section 3.A <br />herein are deposited into the escrow controlling this transaction. The consideration shown in <br />Section 3.A includes, but is not limited to, full payment for the possession and use from that <br />date, including interest and damages if any. <br />8. Notice to Successors. If GRANTOR sells, conveys or assigns any property interest <br />encumbered by this Agreement before the CITY exercises its rights, GRANTOR shall notify the <br />successor or assignor of the rights and obligations under this Agreement. <br />9. Escrow Instructions. GRANTOR authorizes CITY to prepare and file escrow instructions <br />in accordance with this Agreement on behalf of both parties. <br />10. Hazardous Wastes. The acquisition price of the Permanent Easement and TCE being <br />acquired in this transaction reflects the fair market value of the Property without the presence of <br />contamination. If the Property being acquired is found to be contaminated by the presence of <br />Page 3 of 6 <br />17277282.2 <br />