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<br />Agency may otherwise agree in writing, Agency shall have no responsibility for <br />management or maintenance of the Property or the Project. The Agency shall <br />retain responsibility for items related to the interim rehabilitation of the Property <br />under Section 4.4 of this Agreement. <br /> <br />5.4 Repair. Maintenance and Security. Throughout the term of this <br />Agreement, Manager shall maintain the Property and the Project in habitable and <br />tenantable living conditions as appropriate given the anticipated short-term <br />occupancy of the Project, and given the existing physical condition of the <br />Property. Without limiting the foregoing, Manager agrees to maintain the Project <br />and the Property in a condition free of all waste, nuisance, debris, unmaintained <br />landscaping, graffiti, disrepair, abandoned vehicles/appliances, and illegal <br />activity, and shall take all reasonable steps to prevent the same from occurring <br />on the Property or at the Project. Manager shall prevent and/or rectify any <br />physical deterioration of the Property and the Project and shall make all repairs <br />and replacements necessary to keep the Property and the improvements located <br />thereon in good condition and repair. Subject to the limitations imposed by the <br />Business Plan, the Manager will (i) pay all expenses from funds on deposit in the <br />Project Operating Account (as defined in Section 4.2), (ii) negotiate and <br />recommend to the Agency contracts for janitorial, maintenance, trash removal, <br />pest control, and other services required to operate the Project, and (iii) purchase <br />supplies, equipment and materials necessary to lease, operate and maintain the <br />Project. Manager will at all times act in the best interests of Agency and will <br />secure for the benefit of Agency any discounts or rebates obtainable in <br />connection with such purchases and service contracts. <br /> <br />All service contracts will be executed in the name of Manager and will be <br />terminable on 3D-days notice, will require that the contractor provide evidence of <br />appropriate insurance coverage, and will not be in excess of the amounts <br />specified in the Business Plan. If the City and Manager agree to terminate this <br />Agreement with only 1 D days written notice as provided for in Section 3.2, and <br />this requires the Manager to terminate a service contract such that the <br />termination triggers early cancellation fee in the service contract, the City will <br />reimburse the Manager for this cancellation fee. The Manager will endeavor to <br />negotiate service contracts that either do not contain cancellation fees, or contain <br />cancellation fees that are nominal. <br /> <br />If the Agency breaches its obligation to reimburse the Manager for costs <br />incurred under Section 4.3, the Agency agrees to hold the Manager harmless <br />and indemnify the Manager for any additional costs, fees, penalties, or legal <br />costs incurred by Manager because of the Agency's breach. <br /> <br />5.5 Personnel. On the basis of the staffing plan contained in the <br />Business Plan, Manager shall hire, pay, supervise, and discharge (as necessary) <br />the personnel necessary to lease, maintain and operate the Project (collectively, <br />the "Personnel"). All Personnel shall in every instance be employees of <br />Manager and not of Agency. Manager shall have the right to supervise and <br /> <br />776633-4 Final <br />