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Alterations, so that Lessor may post appropriate notices of non-responsibility, and Lessee hereby <br />grants permission to Lessor to enter onto the Premises for that purpose. Lessee, at its cost, shall <br />provide to Lessor a performance bond equal to 125% of the total estimated cost of any proposed <br />Alterations prior to commencement of work thereon. All work on Alterations shall be performed <br />in a workerlike manner and shall comply with all applicable governmental permits, laws, <br />ordinances and regulations, including, but not limited to, any procedures promulgated by Lessor. <br />All work on Alterations shall be completed by contractors licensed in the State of California <br />which shall have in place prior to commencement of work the policies of insurance required of <br />Lessee by Section 18 below, as evidenced by a certificate of insurance delivered to and approved <br />by Lessor. Lessor shall have the right to enter onto the Premises and to inspect construction of <br />the Alterations during construction. All Alterations and fixtures, whether temporary or <br />permanent in character, made in or upon or added to the Premises by Lessee shall be Lessor's <br />property at the end of the Lease Term without compensation to Lessee, subject to the provisions <br />of Section 24 below. <br /> <br /> 13. Utilities. <br /> <br /> Lessee shall arrange and pay for all utilities, if any, including without limitation, water, <br />electric, gas, garbage, communications and sewer services, to be used in connection with this <br />Lease. If Lessor is required to contract with a utility to provide access for service to Lessee at <br />the Premises for Lessee's sole use, Lessee shall pay to Lessor the sum of $200.00 upon receipt of <br />a bill therefor to partially defray administrative costs. <br /> <br /> 14. Maintenance and Repair. <br /> <br /> Lessee shall, at Lessee's sole expense, keep the Premises free from all debris and waste, <br />including any improvements located thereon, in a safe condition and in good order, condition and <br />repair at all times during the Lease Term at Lessee's sole cost and expense. Lessee shall, at <br />Lessee's sole expense, repair any area damaged by Lessee, Lessee's agents, employees and <br />visitors. Lessee acknowledges that Lessor is under no duty to repair or make improvements to <br />the Premises. If Lessee fails to perform Lessee's obligations under this Section 14, Lessor may <br />immediately terminate this Lease as provided for under Sections 4 and 22. Lessor may enter <br />upon the Premises after ten (10) days prior written notice to Lessee (except in the case of an <br />emergency, in which case no notice shall be required) and perform such obligations on Lessee's <br />behalf and expense as provided in Section 23(a) of this Lease. At the end of the Lease Term, <br />Lessee shall surrender the Premises to Lessor in the same condition as when received, ordinary <br />wear and tear excepted. <br /> <br /> 15. Liens. <br /> <br /> Lessee shall not permit any mechanics' or materialmen's liens, stop orders or other liens <br />(collectively, "Liens") to be filed against the Premises nor against Lessee's leasehold interest <br />therein by reason of labor or materials furnished to the Premises at Lessee's instance or request. <br />If any such liens are filed against the Premises, Lessee shall cause the same to be discharged of <br />record either by payment of the claim or by posting and recording the bond contemplated by <br />California Civil Code Section 3143, within twenty (20) days after demand by Lessor. Lessee <br />shall indemnify, hold harmless, and defend Lessor from and against any such liens. <br /> <br /> -5- <br /> 895092.2 <br /> <br /> <br />