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EXHIBIT 1 <br />Mechanics Lien <br />Section 5.13. At all times during the term of this lease, District shall keep the Premises <br />and all Improvements now or hereafter located on the Premises free and clear of all liens and <br />claims of liens for labor, services, materials, supplies, or equipment performed on or furnished <br />to the Premises. Should District fail to pay and discharge or cause the Premises to be released <br />from any such lien or claim of lien within thirty (30) days after service on District of written <br />request from City to do so, City may pay, adjust, compromise and discharge any such lien or <br />claim of lien on any terms and in any manner that City may deem appropriate. In that event, <br />District shall on or before the first day of the next calendar month following any such payment <br />by City, reimburse City for the full amount paid by City in paying, adjusting, compromising, <br />payment by City, reimburse City for the full amount paid by City in paying, adjusting, <br />compromising, and discharging that lien or claim of lien, including any attorneys' fees or other <br />costs expended by City together with interest at the then -maximum legal rate from the date of <br />payment by City to the date of repayment by District. <br />Zoning and Use Permit <br />Section 5.14. Should District deem it necessary or appropriate to obtain any use <br />permit, variance, or entitlements of the Premises to construct significant improvements, City <br />agrees to execute any documents, petitions, applications, and authorizations that may be <br />necessary or appropriate to construct Significant Improvements. Any permits, variances, <br />entitlements, and/or plans necessary to construct Significant Improvements shall be obtained <br />at the sole cost and expense of District and District agrees to protect and save City and the <br />property of City, including the Premises, free and harmless from any cost or expense. <br />Ownership of Improvements <br />Section 5.15. With the exception of Previous Improvements discussed in Section 5.01, <br />title to all Improvements, including Significant Improvements, to be constructed on the <br />Premises by District shall be owned by City unless expressly agreed in writing by the parties. <br />District agrees to execute, acknowledge, deliver to City any instrument requested by City as <br />necessary in City's opinion to perfect City's right, title, and interest to the improvements, <br />including Significant Improvements. <br />ARTICLE 6- ENCUMBRANCE OF LEASEHOLD ESTATE <br />Section 6.01. District shall not encumber the leasehold estate under this lease without <br />the express written permission of City, which permission shall not be unreasonably withheld. <br />#iznazVz <br />75B-13 <br />