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ARTICLE V
<br /> MAINTENANCE; TAXES; INSURANCE; AND OTHER MATTERS
<br /> Section 5.1. Maintenance. Utilities,Taaces and Assessments. Throughout the Term of this
<br /> Lease Agreement, as part of the consideration for the rental of the Property, all improvement,
<br /> repair and maintenance of the Property are the sole responsibility of the City, and the City will
<br /> pay for or otherwise arrange for the payment of all utility services supplied to the Property,
<br /> which may include, without limitation, janitor service, security, power, gas, telephone, light,
<br /> heating, water and all other utility services, and shall pay for or otherwise arrange for the
<br /> payment of the cost of the repair and replacement of the Property resulting from ordinary wear
<br /> and tear or want of care on the part of the City or any assignee or sublessee thereof. In exchange
<br /> for the Lease Payments herein provided, the Authority agrees to provide only the Property, as
<br /> hereinbefore more specifically set forth. The City waives the benefits of subsections 1 and 2 of
<br /> Section 1932, Section 1933(4) and Sections 1941 and 1942 of the California Civil Code, but
<br /> such waiver does not limit any of the rights of the City under the terms of this Lease Agreement.
<br /> The City will pay or cause to be paid all taxes and assessments of any type or nature, if
<br /> any, charged to the Authority or the City affecting the Property or the respective interests or
<br /> estates therein; provided that with respect to special assessments or other governmental charges
<br /> that may lawfully be paid in installments over a period of years, the City is obligated to pay only
<br /> such installments as are required to be paid during the Term of this Lease Agreement as and
<br /> when the same become due.
<br /> The City may, at the City's expense and in its name, in good faith contest any such taxes,
<br /> assessments, utility and other charges and, in the event of any such contest, may permit the taxes,
<br /> assessments or other charges so contested to remain unpaid during the period of such contest and
<br /> any appeal therefrom unless the Authority shall notify the City that, in its reasonable opinion, by
<br /> nonpayment of any such items the interest of the Authority in the Property will be materially
<br /> endangered or the Property or any part thereof will be subject to loss or forfeiture, in which event
<br /> the City will promptly pay such taxes, assessments or cfiarges or provide the Authority with full
<br /> security against any loss which may result from nonpayment, in form satisfactory to the
<br /> Authority. The City shall promptly notify the Assignee of any tax, assessment, utility or other
<br /> charge it elects to contest.
<br /> Section 5.2. Modification of Property. The City has the right, at its own expense, to
<br /> make additions, modifications and improvements to the Property or any portion thereof. All
<br /> additions, modifications and improvements to the Property will thereafter comprise part of the
<br /> Property and become subject to the provisions of this Lease Agreement. Such additions,
<br /> modifications and improvements may not in any way damage the Property, prevent the City's
<br /> beneficial use of the property, or cause the Property to be used for purposes other than those
<br /> authorized under the provisions of state and federal law; and the Property, upon completion of
<br /> any additions, modifications and improvements made thereto under this Section, must be of a
<br /> value which is not substantially less than the value thereof immediately prior to the making of
<br /> such additions,modifications and improvements.
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<br /> 338802 2.DOC
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