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Owner of any claim, action, proceeding or determination included within this Section 7.1, and <br />City shall cooperate in the defense. If City fails to promptly notify Owner of any such claim, <br />action, proceeding or determination, or if City fails to cooperate in the defense, Owner shall not <br />thereafter be responsible to defend, indemnify, or hold harmless City as to that claim, action, <br />proceeding, or determination. City may in its discretion participate in the defense. <br />7.2. Environmental Assurances. Owner shall indemnify and hold City, its officers, agents, <br />and employees free and harmless from any liability, based or asserted, upon any act or omission <br />of Owner, its officers, agents, employees, subcontractors, predecessors in interest, successors, <br />assigns and independent contractors for any violation of any federal, state or local law, ordinance <br />or regulation relating to industrial hygiene or to environmental conditions on, under or about the <br />Property, including, but not limited to, soil and groundwater conditions, and Owner shall defend, <br />at its expense, including attorneys' fees, City, its officers, agents and employees in any action <br />based or asserted upon any such alleged act or omission. City may in its discretion participate in <br />the defense. <br />7.3. Reservation of Rights. With respect to Section 7.1 and Section 7.2 herein, City reserves, <br />the right to either (1) approve the attorney(s) that the indemnifying party selects, hires or <br />otherwise engages to defend the indemnified party hereunder, which approval shall not be <br />unreasonably withheld, conditioned, or delayed, or (2) conduct its own defense; provided, <br />however, that the indemnifying party shall reimburse the indemnified party forthwith for any and <br />all reasonable expenses incurred for such defense, including attorneys' fees, upon billing and <br />accounting therefor. <br />7.4. Challenge to Existing Land Use Approvals. By accepting the benefits of this Agreement, <br />Owner, on behalf of itself and its successors in interest, hereby expressly agrees and covenants <br />not to sue or otherwise challenge any land use approval affecting the Property and in effect as of <br />the Effective Data Such agreement and covenant includes, without limitation, the covenant <br />against any direct suit by Owner or its successor in interest, or any participation, encouragement <br />or involvement whatsoever that is adverse to City by Owner or its successor in interest, other <br />than as part of required response to lawful orders of a court or other body of competent <br />jurisdiction. Owner hereby expressly waives, on behalf of itself and its successors in interest, any <br />claim or challenge to any land use approval affecting the Property and in effect as of the <br />Effective Date. <br />7.5. Waiver. <br />7.5.1. Owner hereby acknowledges that it has read and is familiar with the provisions <br />of California Civil Code Section 1542, which is set forth below: <br />"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS <br />WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO <br />EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING <br />THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST <br />HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT <br />WITH THE DEBTOR." <br />_22_ <br /> <br />