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agrees to indemnify and save the City harmless from and against all costs and expenses <br /> incurred in or in connection with any such claim arising as aforesaid or in connection with <br /> any action or proceeding brought thereon. In case any such claim shall be made,or action <br /> brought based upon any such claim in respect of which indemnity may be sought against <br /> the Developer, upon receipt of notice in writing from the City setting forth the particulars <br /> of such claim or action, the Developer shall assume the defense thereof including the <br /> employment of counsel and the payment of all costs and expenses. The City shall have the <br /> right to employ separate counsel in any such action and to participate in the defense thereof, <br /> but the fees and expenses of such counsel shall be at the expense of the City. It is agreed <br /> and understood that the aforesaid indemnities in this Article VII shall be binding on the <br /> Developer only for such period as the Developer maintains a direct interest in the Project <br /> or Development Area. or part thereof(excluding,for example,an interest therein solely as <br /> a creditor or mortgagee), and only with respect to such direct interest in the Project or <br /> Development Area or part thereof. Provided,notwithstanding the foregoing,the Developer <br /> shall not be liable to indemnify and hold the City harmless from any portion of any such <br /> loss, liability, cost or expense which results from the negligence or willful misconduct of <br /> the City, its officials, agents, or employees. <br /> 7.2 City Indemnification of the Developer. <br /> To the extent not prohibited by law,the City, so long as the Developer maintains a direct <br /> interest in the Project or Development Area or any part thereof(excluding,for example,an <br /> interest therein solely as a creditor or mortgagee), shall indemnify and hold harmless the <br /> Developer and its directors, officers, employees and agents from any and all claims, <br /> damages, costs, and expenses, caused by the City of Decatur or any of its agents, <br /> contractors, officials or employees arising from: (i) any act of negligence or willful and <br /> wanton misconduct of the City or any of its agents,contractors,officials or employees; (ii) <br /> any breach or default on the part of the City in the performance of any of its obligations <br /> under or in respect of this Agreement; or(iii)any violation of Applicable Law. The City <br /> agrees to indemnify and save the Developer harmless from and against all costs and <br /> expenses incurred in or in connection with any such claim arising as aforesaid or in <br /> connection with any action or proceeding brought thereon. Notwithstanding the foregoing, <br /> the City of Decatur retains any and all defenses and immunities provided by the Local <br /> Governmental and Governmental Employees Tort Immunity Act, 745 ILCS 10/1-101 et <br /> seq. In addition, neither party intends this paragraph to waive its rights to limited liability <br /> under the Illinois Worker's Compensation Act or Kotecki line of cases(1461112d 155, 585 <br /> NE 2d 1023 (1991)). Provided, further, notwithstanding the foregoing, the City shall not <br /> be liable to indemnify and hold the Developer harmless from any portion of any such loss, <br /> liability, cost or expense which results from the negligence or willful misconduct of the <br /> Developer, its officials, agents, or employees. <br /> ARTICLE VIII: PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER <br /> 8.1 Prohibition Against Transfer of Project and Project Site Prior to Completion of <br /> Construction. <br /> The Developer represents and agrees that prior to Substantial Completion as certified by <br /> the City(in accordance with Sections 2.9 and 2.10 hereof)the following prohibitions and <br /> restrictions shall apply to the transfer of the Project.Nothing herein should be construed to <br /> prevent,prohibit or restrict the Developer from assigning or transferring this agreement to <br /> an affiliated entity owned or controlled by the Developer or a majority of the owners of the <br /> Developer. <br />