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⦁ District Indemnity. District is responsible for carrying out the Transit <br />Obligations using AHSC grant proceeds in accordance with the AHSC Documents, <br />including, but not limited to, any disbursement deadlines contained therein. District shall <br />indemnify, defend, and hold harmless Developer and City, and its elected and appointed <br />officials, affiliates, directors, officers, partners, members, agents and employees (each, an <br />“Developer Indemnified Party” and "City Indemnified Party") against any and all claims, <br />actions, demands, suits, causes of action, losses, liabilities, injuries, costs, damages, or <br />expenses (collectively, “Claims”), including, without limitation, any direct, indirect or <br />consequential loss, liability, damage, or expense, court costs and attorneys’ fees, arising <br />out of or in connection with the District’s performance of or failure to perform its <br />obligations to complete the Transit Obligations, in the manner and within the time <br />periods set forth in the AHSC Documents, including any claims, losses or liabilities <br />caused by said failure to perform that results in a default under the AHSC Loan. <br />However, in no event shall the Developer Indemnified Party or the City Indemnified Party <br />be indemnified hereunder for any Claims to the extent said Claims result from such <br />party’s gross negligence or willful misconduct. District agrees to pay all of the Developer <br />Indemnified Party’s and the City Indemnified Party's costs and expenses, including but <br />not limited to reasonable attorneys’ fees, which may be incurred in any effort to enforce <br />any term of this Agreement, caused by a District breach of the Agreement, including, but <br />not limited to, all such costs and expenses which may be incurred by any Developer <br />Indemnified Party and the City Indemnified Party in any legal action, mediation, or <br />arbitration proceeding brought by HCD or other third party. <br />⦁ Developer Indemnity. Developer is responsible for carrying out the Developer <br />Obligations using AHSC Financing in accordance with the AHSC Documents, including, <br />but not limited to, any disbursement deadlines contained. Developer shall indemnify, <br />defend, protect, and hold harmless the District and its affiliates, directors, officers, <br />partners, members, agents and employees (each, an “District Indemnified Party”) and the <br />City Indemnified Party against any and all Claims, including, without limitation, any <br />direct, indirect or consequential loss, liability, damage, or expense, court costs and <br />attorneys’ fees, arising out of or in connection with Developer’s performance of or failure <br />to perform its Developer Obligations to complete construction and development of the <br />Housing Development, in the manner and within the time periods, and to otherwise <br />perform any covenants, set forth in the AHSC Documents including any claims, losses or <br />liabilities caused by said failure to perform that results in a default under the AHSC Loan. <br />However, in no event shall the District Indemnified Party or the City Indemnified Party <br />be indemnified hereunder for any Claims to the extent said Claims result from such <br />party’s gross negligence or willful misconduct. Developer agrees to pay all of the costs <br />and expenses of the District Indemnified Party and the City Indemnified Party, including <br />but not limited to reasonable attorneys’ fees, which may be incurred in any effort to <br />enforce any term of this Agreement, caused by a Developer breach of the Agreement, <br />including, but not limited to, all such costs and expenses which may be incurred by any <br />District Indemnified Party and City Indemnifed Party in any legal action, mediation, or <br />arbitration proceeding brought by HCD or other third party. <br />4