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<br />bodies having jurisdiction over the Premises reasonably required for satisfaction of City's
<br />- reasonable inquiry.
<br />5.1.4 Insurance. Waste Management andlor Waste Management's general contractor, shall obtain
<br />insurance in commercially reasonable form for commercially reasonable limits, Copies of
<br />certificates of such insurance shall be furnished to City prior to commencement of any
<br />construction or grading work or other physical work preparatory to construction upon the
<br />Premises. Waste Management shall not commence work nor shall it allow its employees or
<br />subcontractors or anyone to commence work until all insurance required by this Section 5.1.4
<br />has been obtained and submitted to City. Waste Management (or, as specified elsewhere,
<br />the general contractor) shall take out and maintain at all times while work is in progress the
<br />policies of insurance substantially in the form set forth in Exhibit D.
<br />5.3 Soil Conditions. City makes no covenants or warranties respecting the condition of the soil, or sub-soil, or
<br />any other condition of the Premises. Waste Management shall have the right to conduct any tests, at Waste
<br />Management's sole cost and expense, it deems to be necessary to determine the condition of the soil. A copy
<br />of such soils report absent any abatement costs or proposal for removal of any "Hazardous Materials" as
<br />defined by law, if any, shall be provided to City prior to the Lease Commencement Date.
<br />5,4 Waste Management's Right to Grant Easements. Subject to City's approval which approval shall not be
<br />unreasonably withheld, conditioned or delayed, City grants to Waste Management, the right to grant public
<br />entities or public service corporations, for the purpose of serving only the Premises, rights-of-way or easements
<br />on, or over, the Premises, for poles or conduits, or both, for telephone, electricity, water, sanitary or storm
<br />sewers, or both, and for such other utilities or special district services, as long as such easements do not
<br />unreasonably interfere with existing easements on the Premises. Waste Management shall provide City with
<br />written notice at least five (5) business days prior to the proposed execution of an easement grant, and City
<br />shall provide written approval of an easement grant not to be unreasonably withheld, conditioned or delayed
<br />within ten (10) days thereafter. All such easements shall be recorded at within thirty (30) days of execution.
<br />5,5 Diligent Prosecution to Completion. Once work has begun, Waste Management shall, with commercially
<br />reasonable diligence, prosecute to completion, all construction of the improvements.
<br />5.6 Protection Against Cost or Claim. No reference to the Mechanic's Lien Law made in this Lease shall be
<br />construed to be an agreement or an acknowledgment that such law applies to improvements constructed
<br />pursuant to this Lease, or that such improvements are, or are not, public works. Waste Management shall pay,
<br />or cause to be paid, the total cast and expense of all works of improvement, as that phrase is defined in the
<br />Mechanic's Lien Law (commencing with California Civil Code Section 3109), No such payment shall be
<br />construed as rent. Waste Management shall not suffer or permit to be enforced against the Premises, or any
<br />part of it, any mechanic's, materialman's, contractor's or subcontractor's lien, arising from any work of
<br />improvement, however it may arise. However, Waste Management may, in good faith, and at Waste
<br />Management's own expense, contest the validity of any such asserted lien, claim, ordemand, provided Waste
<br />Management has furnished, within thirty (30) days of recordation of such a lien, the bond required in Civil Code
<br />Section 3143 (or any comparable statute hereafter enacted for providing a bond freeing the premises from the
<br />effect of such a lien claim). Except in the case of City's negligence or willful misconduct, Waste Management
<br />shall defend and indemnify City against all liability and loss of any type, arising out of work improvement
<br />622009-1
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