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6.1E Page 26 excepted. Lessee shall allow Lessor to inspect the Premises to verify the condition of the Premises and its contents. 38. LEASE, APPPURTENANT RIGHTS, PUBLIC RIGHT OF WAY 38.1 Lessor is the owner of the public right of way surrounding the Premises described herein. Lessee, through a separate Lease agreement granted by the Lessor, has obtained the permission of Lessor to perform certain acts upon and within the public right of way. Lessor, as Lessor, has granted to Lessee, as Lessee, a Lease for the use of a portion of the public right of way surrounding the Premises ('lLease Area") for the purpose of walk-up business, pick ups and deliveries, and outdoor seating consisting of tables and chairs. The Lease is personal to the Lessee, non-assignable, and terminable and revocable at the will of the Lessor. The areas governed by the Lease are not a part of the Premises defined by the Lease. The Lessee does not hold any estate or interest in the property of the City in the public right of way by virtue of this Lease. The City may formulate rules, conditions of Lease, regulations and a permit process for the use of the public property and right of way area surrounding and in close proximity to the Premises, and the uses of other areas in the public right way of the City. The areas surrounding the Premises may be governed thereby and the Lessee agrees to be bound by these rules and regulations and obtain such permits or Leases as may be required. These areas may be governed by this Lease to the extent it is not in conflict with City rules, regulations, and permit requirements as they now or hereafter exist. Lessor shall at all times retain exclusive final authority over the public right of way including the Lease Area. Lessor shall have the right to perform any and all acts of construction and maintenance in the public right of way, including the Lease Area, as fully and completely as if the Lease for the use of the Lease Area did not exist. Lessor will not be liable to the Lessee by reason of any injury to or interference with Lessee's business or property for any inconvenience or damages caused thereby. The Lease term applicable to the Premises does not apply to the Lease Area and Lessor retains the right at its sole discretion to terminate or revoke said Lease at any time. Termination or revocation of the Lessee's use of the Lease Area is not a grounds for termination of the Lease. Termination or restriction of the use of the Lease Area does not reduce rental payments due under the Lease Agreement. 39. AMENDMENT 39.1 The terms of this Agreement may be amended only in writing and by mutual agreement between the Agency's Executive Director and the Lessee. 40. COMPLIANCE WITH LAWS 40.1 The Parties hereto shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local governments in the performance of their rights, duties and obligations under this Lease, including all applicable laws, ordinances, codes and regulations pertaining to the storage, handling, preparation and service of food. ATTY/AGR/2010.012 022610 Initials 23