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notify OWNER of any such claim, action, proceeding or determination, or if CITY fails to <br />cooperate in the defense, OWNER shall not thereafter be responsible to defend, indemnify, <br />or hold harmless CITY. CITY may in its discretion participate in the defense of any such <br />claim, action, proceeding or determination. <br />8.2 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 <br />omission of OWNER, its officers, agents, employees, subcontractors, predecessors in <br />interest, successors, assigns and independent contractors for any violation of any federal, <br />state or local law, ordinance or regulation relating to industrial hygiene or to environmental <br />conditions on, under or about the Property, including, but not limited to, soil and <br />groundwater conditions, and OWNER shall defend, at its expense, including attorneys' <br />fees, CITY, its officers, agents and employees in any action based or asserted upon any <br />such alleged act or omission. CITY may in its discretion participate in the defense of any <br />such action. <br />8.3 Reservation of Rights. With respect to Section 8.1 and Section 8.2 herein, CITY reserves, <br />the right to either (1) approve the attomey(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, or (2) conduct its own defense; provided, however, that the <br />indemnifying party shall reimburse the indemnified party forthwith for any and all <br />reasonable expenses incurred for such defense, including attorneys' fees, upon billing and <br />accounting therefor. <br />8.4 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 <br />covenants not to sue or otherwise challenge any land use approval affecting the Property <br />and in effect as of the Effective Date. Such agreement and covenant includes, without <br />limitation, the covenant against any direct suit by OWNER or its successor in interest, or <br />any participation, encouragement or involvement whatsoever that is adverse to CITY by <br />OWNER or its successor in interest, other than as part of required response to lawful orders <br />of a court or other body of competent jurisdiction. OWNER hereby expressly waives, on <br />behalf of itself and its successors in interest, any claim or challenge to any land use <br />approval affecting the Property and in effect as of the Effective Date. <br />OWNER hereby acknowledges that it has read and is familiar with the provisions of <br />California Civil Code Section 1542, which is set forth below: <br />A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS <br />THAT THE CREDITOR OR RELEASING PARTY DOES NOT <br />KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE <br />TIME OF EXECUTING THE RELEASE AND THAT, IF <br />KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY <br />AFFECTED HIS OR HER SETTLEMENT WITH THE <br />DEBTOR OR RELEASED PARTY. <br />55394.00002\31553187.13 <br />#211240 11 A-37 <br />