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<br />to and finally approve the Work. Owner further agrees to assign to Construction Manager the <br />rights and obligations arising out of such change orders, provided, however, Owner agrees to <br />compensate Construction Manager for the agreed-upon cost of such changes(s) and the Cost of <br />Construction Manager's additional services. Owner's rights, benefits, and obligations under <br />resulting Change Orders, subject to the same reservations as set forth in the immediately <br />preceding sentence, will be deemed assigned to and assumed by Construction Manager. <br /> <br />5. Construction Manager agrees that in return for the Assignment of Prime Contracts <br />referenced herein, it shall accept the City's rights, and agrees it shall be responsible to Prime <br />Contractors for the City's responsibilities, including full payment, for amounts due Prime <br />Contractors under the Prime Contracts. Construction Manager's obligation to pay the Prime <br />Contractors is conditioned upon Construction Manager receiving payment from Owner for the <br />work for which Prime Contractor requests or claims a payment is due, subject to terms of the <br />Prime Contracts. <br /> <br />6. Construction Manager further agrees that it shall indemnify and hold City <br />harmless from any and all claims, costs, disputes, requests for equitable adjustment or any other <br />additional recovery sought by a Prime Contractor under its Prime Contract due to the errors, <br />negligence, or breach of contract of Construction Manager or its subcontractors. This <br />indemnification and hold harmless will not apply to the extent any such claims, costs, disputes, <br />requests, or attempted recoveries arise from the City's failure to perform its obligations under the <br />CM Agreement or this Assignment or from any delay by the City in exercising rights reserved to <br />it under this Assignment. <br /> <br />7. Subject to the terms of the CM Agreement and this Assignment, City retains its <br />continued ownership in the Project and land, the right to enforce all City-issued permits and City <br />ordinances relevant to the Project, and all police power authority over the Project area and <br />persons working in or affected by the Project. <br /> <br />IN WITNESS WHEREOF, the undersigned parties have executed this Assignment effective the <br />date first above written. <br /> <br />CITY OF ELK RIVER <br />Owner <br /> <br />By: <br />Its: <br /> <br />RJM CONSTRUCTION MANAGEMENT <br />SERVICES CORPORATION <br />Construction Manager <br /> <br />By: <br />Its: <br /> <br />310619vl JMS EL185-6 <br /> <br />2 <br />