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5. ALTERATIONS AND FIXTURES. Lessee has accepted the Premises in their <br /> present condition (as-is). After prior written consent of Lessor, Lessee may make alterations, <br /> additions and improvements in said Premises, at Lessee's sole cost and expense. In the <br /> performance of such work, Lessee agrees to comply with all laws, ordinances, rules, and <br /> regulations of any proper public authority, and to save Lessor harmless from damage, loss or <br /> expense to the extent(in both amount and scope)that Lessee is afforded coverage for such <br /> damage, loss or expense by the State of Washington Self-Insurance Program and the Tort Claims <br /> Act(RCW 4.92.060; RCW 4.92.130). Upon termination of this Lease, if Lessor elects to not <br /> retain Lessee's alterations and improvements, Lessee shall remove such improvements installed <br /> by Lessee and restore the Premises to its original condition not later than the termination date, at <br /> Lessee's sole cost and expense. Any such improvements not so removed shall be removed at <br /> Lessee's expense including the cost to repair any damage caused by such removal. All <br /> alterations and improvements made to the Premises by either the Lessor or Lessee shall become <br /> part of the building and shall remain on the Premises at the option of the Lessor without <br /> compensation to the Lessee. <br /> 6. LIENS. In the event the Premises shall at any time during the term of this lease <br /> become subject to any suit brought to enforce a lien or any statement or claim of lien filed to <br /> enforce a lien resulting from the furnishing of materials or labor to Lessee on the Premises, <br /> Lessee may contest such lien by legal proceedings but shall, in any event, cause such lien, at its <br /> sole cost,to be discharged within thirty(30) days after notice thereof by the substitution <br /> therefore of a mechanic's lien release bond, by posting of adequate security for the payment <br /> thereof(including all expenses incident thereto), or by such other method as shall be reasonably <br /> satisfactory to Lessor. <br /> 7. HOLD HARMLESS CLAUSE. <br /> A. The Lessee shall defend, indemnify and hold harmless Lessor, its officers, elected officials, <br /> agents, employees, and volunteers harmless from any and all claims, injuries, damages, <br /> losses or suits including attorney fees and costs arising out of or resulting from the use of the <br /> Premises or any other act, error or commission by the Lessee or Lessee's officers, elected <br /> officials, agents, employees, or volunteers in connection with this Lease. <br /> B. The Lessee's obligation herein shall include, but not be limited to, investigating, adjusting <br /> and defending all claims alleging loss from action, error or omissions by the Lessee, Lessee's <br /> employees, agents or subcontractors. <br /> C. Solely for the purpose of indemnification and defense as provided in this Lease,the Lessee <br /> specifically waives any immunity under the State Industrial Insurance Law, Title 51 RCW. <br /> The Lessee expressly acknowledges that this waiver of immunity under Title 51 RCW was <br /> the subject of mutual negotiation and was specifically entered into pursuant to the provisions <br /> of RCW 4.24.115. <br /> 8. LIABILITY INSURANCE: The Lessee shall, at its own expense, maintain self- <br /> insurance as provided herein, including General Liability Insurance in the minimum limits of one <br /> million dollars ($1,000,000 per occurrence and no less than$2,000,000 in the annual aggregate. <br /> The Lessee agrees to supply the Lessor with a certificate of insurance establishing (1)that its <br /> insurance obligations as herein provided have been met, (2)that the insurance policy or policies <br /> as herein required are not subject to cancellation without at least sixty(60) days advance written <br /> notice to the Lessor, and(3)that the City of Everett, its officers, employees and agents are <br /> named as an additional named insured. <br /> 2 <br />