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(c) Use of Clubhouse <br /> Prior to the issuance of the 13th building permit for the Project, the City and Ponderosa Homes <br /> II, Inc. shall have entered into an agreement ("Clubhouse Use Agreement") for use of the <br /> Clubhouse by residents living in the Valley Trails residential neighborhood as identified in the <br /> Land Use Element of the City's General Plan ("Valley Trails Residents"). The Clubhouse Use <br /> Agreement shall include, but not be limited to, the following provisions: <br /> (i) Valley Trails Residents shall be allowed to use the Clubhouse at no <br /> charge for meetings a total of 12 times a year, but no more than once monthly for a period of 3 <br /> hours per meeting. <br /> (ii) In order to use the Clubhouse, Valley Trails Residents shall be <br /> required to enter into a use agreement with the Homeowners' Association, which shall be in a <br /> form as set forth in the Clubhouse Use Agreement, and shall include requirements for: use and <br /> occupancy of the facility; a cleaning/damage deposit; and a valid Certificate of Liability <br /> Insurance certificate naming the City and the Homeowners' Association as additional insureds. <br /> (iii) City shall not be responsible for scheduling the use of the <br /> Clubhouse or any damage to the Clubhouse that may occur as a result of the use of the <br /> Clubhouse by the Valley Trails Residents. <br /> (iv) The Homeowners' Association shall indemnify and hold the City <br /> harmless for any administrative, legal or equitable actions arising out of the use of the Clubhouse <br /> by the Valley Trails Residents. <br /> SECTION 5. CITY OBLIGATIONS <br /> 5.1 Vested Right to Develop the Project. <br /> (a) Vested Entitlements and Project Approvals. <br /> Except as specifically set forth herein, as of the Effective Date, Developer shall have the vested <br /> right to develop the Property in accordance with the Project Approvals, any Subsequent <br /> Approvals, and the "Existing Rules." Existing Rules include the City's General Plan, the City's <br /> Municipal Code, and all other adopted City ordinances, resolutions, rules, regulations, guidelines <br /> and policies in effect on the Effective Date. <br /> (b) Processing Subsequent Approvals. <br /> 9 <br />