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d. Prior to Subgrantee's submission of any Disbursement Request, the Owner shall <br />have all necessary approvals, licenses and permits required for construction and operation of the <br />Project except those which cannot be obtained until completion of the Project. <br />e. Subgrantee shall permit and/or shall cause the Owner to permit, as applicable, the <br />City, upon reasonable notice, to examine all books, records, contracts, plans, permits, bills and <br />statements of account pertaining to the Project and to make copies as the City may require. <br />f. Subgrantee shall cause the Owner to obey and comply with all federal, state and <br />local laws, rules and regulations in connection with the Project. <br />g. Subgrantee agrees to provide and/or obtain all matching funds, if any, required by <br />the Grant Agreements. Subgrantee agrees to pay for all of the costs incurred to construct the <br />Improvements including any cost overruns in excess of those in the sources and uses set forth in <br />Exhibit C. <br />h. Subgrantee represents that all uses to which the Grants funds shall be used will be <br />grant eligible uses as provided for within the Grant Agreements. <br />i. Subgrantee will indemnify and hold the City harmless relative to the Grant <br />Agreements to the extent that its performance or lack thereof under the terms of this Agreement <br />places the City in non-compliance with the Grants. <br />VIII. DEFAULT <br />Any one or more of the following shall constitute an "Event of Default" under this <br />Agreement: <br />a. Subgrantee shall default in the performance or observance of any agreement, <br />covenant or condition required to be performed or observed by Subgrantee under the terms of <br />this Agreement, and such default shall not be remedied within thirty (30) days after written <br />notice to Subgrantee from the City specifying such default. <br />b. Subgrantee shall be in default of any material term of any other agreement <br />relating to the Project to which it is a party, and such default shall not be remedied within any <br />applicable cure period. <br />c. Any representation or warranty made by Subgrantee herein or any document or <br />certificate furnished to the City shall prove to be materially incorrect or misleading as of the date <br />made. <br />d. Subgrantee engages in any illegal activities that have or are likely to have a <br />material adverse effect on the Project. <br />5 <br />