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Dec 19 2008 9: 46AM Gek Coon, 6 Keen LLP (209) 9451 p. 3 any and all to IState building or construction codes and as hereinafter specified WHEREAS, District and City agree that they jointly participated in the negotiation and drafting of this Agreement, having sought advice and legal counsel of their own choice, NOW, THEREFORE, it is agreed as follows; 1. Nature of Right Conferred. District intends hereby to assent only to a temporary encroachment upon the District's Land, all subject to the tetms hereof. Nothing in this Agreement constitutes a grant or other disposition of any land or interest in land which is owned or otherwise occupied by the District. City acknowledges that the lands upon which the facilities of the District are located may not be entirely owned by the District, and further acknowledges that the consent contained in this Agreement relates only to the rights of the District by virtue of its ownership or of an easement or easements upon Subject Property or upon land owned in fee by District. It is understood that nothing in this Agreement shall be considered as a representation by the District of the authority to grant any interest In land over, across, or under any property owned or controlled by any person other than the District and City shall obtain any further grants or consents from all others owning interests in the underlying easement land. It is further agreed that any right granted to City hereunder shall be inferior and subordinate to the rights of the District. Except as herein expressly permitted, City shall not place or permit to be placed on, in, across, or through said easement or right-of-wayanybuilding,structure, explosive,well,guywire, oranyother obstruction, nor do or permit to be done, anything which may interfere with the full and exclusive enjoyment by the District of the easement or right-of-way owned by it. City shall not authorize or permit encroachment by others or utilize the easement or right-of-way area in anymannerwhich may endanger,Interfere,or make more expensive the proper use and operation of any works or property of the District without first obtaining the written consent of the District. 2. Assignments and Sublicenses. City may not,without the prior written consent ofthe District, assign or otherwise transfer any right created by this Agreement provided, however,that City will remain responsible for all of City's obligations in this Agreement until District shall have approved in writing such assignment or transfer and until the proposed transferee has assumed in writing all of City's obligations hereunder. District's approval of the proposed transferee shall be limited to District's review of the financial capability of the proposed transferee and its determination that the proposed transferee's financial capability is sufficient in light of the obligations to be imposed on such transferee by this Agreement. City shall not authorize or permit others to utilize any facilities, structures, easements or right-of-way area which are the subject matter of this Agreement In any way not expressly authorized by this Agreement. 3. Indemnity. Release and Insurance A. As a major inducement and consideration for the license and permission herein, City shall (1) indemnify and hold harmless and (ii) release the District, its officers, 2