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4.3 Indemnification. Developer shall defend (with counsel reasonably acceptable to City), <br /> indemnify, assume all responsibility for, and hold harmless City Parties, from and against, any <br /> and all claims, liabilities and obligations, including attorneys' fees and costs, arising directly or <br /> indirectly from the work to construct the Project, including the design, development, and <br /> construction thereof, whether such claims shall accrue or be discovered before or after expiration <br /> or termination of this Agreement. Developer's indemnity obligations under this Section 4.3 shall <br /> not extend to claims occasioned by the sole negligence or willful misconduct of City Parties. <br /> The provisions of this Section 4.3 shall survive termination or expiration of this Agreement. <br /> 4.4 Defense Indemnification and Cooperation in the Event of a Le�al Challen�e. City and <br /> Developer shall cooperate in the defense of any court action or proceeding instituted by a third <br /> party or other governmental entity or official challenging the validity of any provision of this <br /> Agreement, or the Project Approvals ("Litigation Challenge"), and the Parties shall keep each <br /> other informed of all developments relating to such defense, subject only to confidentiality <br /> requirements that may prevent the communication of such information. To the extent Developer <br /> desires to contest or defend such Litigation Challenge, (i) Developer shall take the lead role <br /> defending such Litigation Challenge and may, in its sole discretion, elect to be represented by the <br /> legal counsel of its choice; (ii) City may, in its sole discretion, elect to be separately represented <br /> by the legal counsel of its choice in any such action or proceeding with the reasonable costs of <br /> such representation to be paid by Developer; (iii) Developer shall reimburse City, within ten (10) <br /> business days following City's written demand therefor, which may be made from time to time <br /> during the course of such litigation, all reasonable costs incurred by City in connection with the <br /> Litigation Challenge, including City's administrative, legal, and court costs and City Attorney <br /> oversight expenses; and (iv) Developer shall indemnify, defend, and hold harmless City Parties <br /> from and against any damages, attorneys' fees or cost awards, including attorneys' fees awarded <br /> under Code of Civil Procedure section 1021.5, assessed ar awarded against City by way of <br /> judgment, settlement, or stipulation. Any proposed settlement of a Litigation Challenge shall be <br /> subject to City's approval not to be unreasonably withheld, conditioned or delayed. If the terms <br /> of the proposed settlement would constitute an amendment or modification of this Agreement or <br /> any Project Approvals, the settlement shall not become effective unless such amendment or <br /> modification is approved by City in accordance with Applicable Law, and City reserves its full <br /> legislative discretion with respect thereto. If Developer opts not to contest or defend such <br /> Litigation Challenge, City shall have no obligation to do so. <br /> ARTICLE 5 ANNUAL REVIEW, DEFAULT AND REMEDIES <br /> 5.1 Annual Review. <br /> 5.1.1 Purpose. As required by California Government Code section 65865.1, the City <br /> and Developer shall review this Agreement and all actions taken pursuant to the terms of this <br /> Agreement with respect to the development of the Project every 12 months following the <br /> Effective Date to determine good faith compliance with this Agreement. Each annual review <br /> shall also document (i) the status of the Project development and (ii) any extension of the Term <br /> of this Agreement pursuant to Section 1.3 above. <br /> 5.1.2 Conduct of Annual Review. The annual review shall be conducted as provided in <br /> this Section 5.1. By December lst of each year, Developer shall provide documentation of its <br /> 27 <br /> ATTY/AGR/2013.134/STANFORD DEVELOPMENT AGREEMENT <br /> REV: OS-14-13 PT <br />