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WARRANTY AGREEMENTWARRANTY AGREEMENT y KNOW ALL MEN BY THESE PRESENTS: THAT WHEREAS FH1, LLC (hereinafter referred to as the "Owner"), has applied to the City of Yelm, a political subdivision of Thurston County of the State of Washington, (hereinafter referred to as the "City") for the approval by the City of a certain plat of a subdivision to be known as PALISADES WEST PLAT, a copy of which plat is attached hereto and made a part hereof as "Exhibit A", on which said plat are shown areas offered by the Owner to be dedicated to public use as streets, alleys and other rights of way, and other public facilities and improvements; and WHEREAS, it is necessary in the interest of public welfare that the areas so offered to be dedicated are to be constructed in accordance with the sp4ecifications hereinafter set forth; and WHERE, in accordance with the items of RCW 58.17 and Title 16 of the Yelm Municipal Code, the City has adopted subdivision regulations which require that all improvements be constructed in a manner consistent with the City's development regulations; Now therefore, TO INDUCE THE city to approve said plat and to accept the dedication of said areas as public streets, easements and other improvements, the Owner does hereby unconditionally promise and agree to and with the City as follows: The Owner unconditionally warrants to the City, its successors and assigns that, for a period of 12 (twelve) months from the date of final plat approval, the improvements required to be constructed and dedicated to the public under the terms of the plat will be free from defects and that the work will conform with the requirements and specifications of the Development Guidelines of the City. Upon any breach of warranty, the Owner agrees to promptly repair or replace any defective work at no cost to the City, and to provide all labor, equipment and materials necessary therefore, at no cost to the City. 2. In the event the Owner shall fail or neglect to fulfill his obligations under this agreement, the City shall have the right to construct or cause to be constructed, repaired, or replaced pursuant to public advertisement and receipt and acceptance of bids, said street, utilities and other improvements, as shown on said plat, and the Owner shall be liable to WARRANTY AGREEMENT Page 1 of 2 K:\TEXT\++Project Files++\2005 PF\05017\FH1 WARRANTY AGREEMENT.doc pay and indemnify the City, upon completion of such construction, the final total cost to the City, including but not limited to engineering, legal and contingent costs, together with any damages, either direct or consequential, which the City may sustain on account of the failure of the Owner to carry out and execute all provisions of this agreement. 3. The obligations imposed or implied by this agreement shall not be assigned, tran or assumed by any person or entity that is not a part of this agre ithout prior written consent of the City. Stev berlain AG MEMBER STATE OF WASHINGTON) ss COUNTY OF THURSTON ) On this ~' day of ~~~_~ , 20~, before me, the undersigned, a Notary Public ip%and for the State of Washington, duly commissioned and sworn, personally appeared sT~h/ c. cN,~,,,e~,c..,y-,N ~RN~~, r,~~, c~that executed the foregoing instrument, and acknowledged the said instrument to be a free and voluntary act and deed ,for the uses and purposes therein mentioned, and on oath stated that he/she/they was (were) authorized to execute the said instrument. Witness my hand and official seal hereto affixed the day and year first above written. Given under my hand and seal this ~ 7~ay of ~ , 20a ~ State cf Washin toza Ngfary Publ~n and fvr the ~ g ttat o ashington,`residing in NANCY A. TRAIL Commisslon Expires AUGUST 31, 2010 My CO ISSI n expires: WARRANTY AGREEMENT Page 2 of 2 K:\TEXT\++Project Files++\2005 PF\05017\FH1 WARRANTY AGREEMENT.doc