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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 />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 attorney(s) that the indemnifying party selects, hires or <br />otherwise engages to defend the indemnified party hereunder, which approval shall not be <br />unseasonably 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 />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 covenants <br />not to sue or otherwise challenge any land use approval affecting the Property and in effect as of <br />the Effective Date. 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 than <br />as part of required response to lawful orders of a court or other body of competent jurisdiction. <br />Owner hereby expressly waives, on behalf of itself and its successors in interest, any claim or <br />challenge to any land use approval affecting the Property and in effect as of the Effective Date. <br />8.5. Survival. The provisions of Sections 8.1 and 8.2 shall survive the termination of this <br />Agreement. <br />9. MORTGAGEE PROTECTION. <br />9.1. The parties hereto agree that this Agreement shall not prevent or limit Owner, in any <br />manner, at Owner's sole discretion, from encumbering the Property or any portion thereof or any <br />improvement thereon by any mortgage, deed of trust or other security device securing financing <br />with respect to the Property. City acknowledges that the lenders providing such financing may <br />require certain Agreement interpretations and modifications and agrees upon request, from time <br />to time, to meet with Owner and representatives of such lenders to negotiate in good faith any <br />such request for interpretation or modification. City will not unreasonably withhold its consent to <br />any such requested interpretation or modification provided such interpretation or modification is <br />consistent with the intent and purposes of this Agreement. In furtherance of the foregoing, and <br />notwithstanding anything stated to the contrary in this Agreement, any Mortgagee of the Property <br />shall be entitled to the following rights and privileges: <br />9.1.1. Default under Agreement Does Not Impair Lien of any Mortgage. Neither <br />entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, <br />diminish or impair the lien of any mortgage on the Property, the Leasehold Estate, or any Sub <br />Leasehold Estate made in good faith and for value, unless otherwise required by law. <br />9.1.2. Request for Notices of Default by Mortgagee. The Mortgagee of any mortgage <br />or deed of trust encumbering the Property, the Leasehold Estate, or Sub Leaschold Estate, or any <br />Exhibit 4 Ordinance No. NS-3071 <br />