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Agreement shall, in the City's discretion, be grounds for termination of this Agreement pursuant <br />to Section 18 . The Lessee expressly acknowledges and agrees that the City has no obligation to <br />maintain or repair the Premises. <br />10. UTILITIES The Lessee shall pay for all utilities furnished to the Premises. <br />11. LIENS The Lessee agrees to pay for all labor done or materials furnished in <br />repair, replacement or improvement of the Premises by the Lessee, and to keep the Premises, <br />Improvements and the Lessee's possessory interest therein free and clear of any lien or <br />encumbrance of any kind whatsoever created by the Lessee's act or omission. <br />12. ASSIGNMENT OR SUBLETTING This Agreement shall not be assigned or <br />transferred, nor shall the Lessee have the right to sublet the Premises or any part thereof without <br />the written consent of the City of San Leandro City Council evidenced by a resolution thereof <br />duly adopted for said purpose. <br />13. CITY HELD HARMLESS To the fullest extent allowed by law, the Lessee <br />agrees to defend (with counsel reasonably acceptable to the City) and hold harmless the City and <br />its elected and appointed officers, officials, employees, agents and representatives (all of the <br />foregoing, collectively the "Indemnitees ") from and against all liabilities, losses, damages, fines, <br />deficiencies, penalties, claims, demands, suits, actions, causes of action, legal or administrative <br />proceedings, judgments, costs and expenses (including without limitation reasonable attorneys' <br />fees and court costs) (all of the foregoing, collectively "Claims ") resulting from or arising in <br />connection with use of the Premises by the Lessee, its agent and employees, arising out of the <br />construction, repair, alteration, relocation, use and maintenance of said structure and Premises <br />and the Improvements thereon, including without limitation, Claims arising as a result of injury, <br />death or property damage, and Claims arising as a result of or in connection with any release of <br />any Hazardous Material in or about the Premises by the Lessee, or the Lessee's agents, <br />employees, invitees, contractors, or subcontractors, or any other violation of any Environmental <br />Law by the Lessee or the Lessee's agents, employees, invitees, contractors or subcontractors. <br />The indemnity obligations of the Lessee under this shall not extend to Claims to the extent they <br />arise as a result of the Indemnitees' gross negligence or willful misconduct. The Lessee likewise <br />agrees to keep all Improvements upon the Premises insured against loss by fire in an amount to <br />be designated by the City from time to time and in companies to be approved by the City. The <br />Lessee assumes all risk of damage to the Premises, except acts of God. <br />14. INSURANCE Until further notice the Lessee shall maintain in force an <br />insurance policy, or policies, which will insure and indemnify the City against liability or <br />financial loss resulting from injury occurring to persons in or about the demised structure and <br />Premises in an amount not less than Two Million Dollars ($2,000,000) combined single limit <br />applying to bodily and personal injury, death and property damage. Such insurance shall name <br />the City, its officers, officials, agents and employees as additional insured and /or loss payee. <br />Such policy or policies shall be written on an occurrence basis, shall be issued by an insurance <br />carrier licensed to do business in the State of California with current A.M. Best's rating of no <br />less than A: VII, and shall name the City and the Indemnitees as additional insureds. This <br />amount may be increased a reasonable amount from time to time if deemed necessary by the <br />City. <br />3 <br />