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i0a:11-111 a <br />6.3 All Other Construction, Demolition, Alterations, Improvements and <br />Reconstruction. Following the completion of construction of the Initial Improvements, and except <br />as specified in Sections 6.1 and 6.2, any construction, alterations, additions, major repairs, <br />demolition, improvements or reconstruction of any kind shall require the prior written consent of the <br />Lessor, which consent shall not be unreasonably conditioned, delayed or withheld and may require <br />their respective governing body's approval (e.g. Board of Supervisors' and City Council approval). <br />Tenant shall perform all work authorized by this Section at its sole cost and expense, including, <br />without limitation, with insurance proceeds approved for such use in accordance with Article VII, if <br />any, and in compliance with all applicable Laws in all material respects. <br />6.4 Requirements of Governmental Agencies. At all times during the Term of this Lease, <br />Tenant, at Tenant's sole cost and expense, shall: (i) make all alterations, improvements, demolitions, <br />additions or repairs to the Premises and/or the Improvements required to be made by any law, <br />ordinance, statute, order or regulation now or hereafter made or issued by any federal, state, county, <br />local or other governmental agency or entity; (ii) observe and comply in all material respects with all <br />Laws now or hereafter made or issued respecting the Premises and/or the Improvements (subject to <br />Tenant's right to contest such Laws in accordance with Section 4.4); (iv) indemnify, defend and hold <br />County, Agency, the Premises and the Improvements free and harmless from any and all liability, <br />loss, damages, fines, penalties, claims and actions resulting from Tenant's failure to comply with and <br />perform the requirements of this Article VI. <br />6.5 Lessor Obligations. Tenant specifically acknowledges and agrees that County, Agency <br />and Lessor Parties do not and shall not have any obligations with respect to the maintenance, <br />alteration, improvement, demolition, replacement, addition or repair of any Improvements. <br />6.6 Lessor Reservations. Without limiting Lessor's rights with respect to the Premises, <br />Lessor reserves for themselves, their successors and assigns those rights necessary to assure proper <br />maintenance and operation of the Premises and to permit any steps to be taken which the Lessor <br />deems necessary or desirable to maintain, repair, improve, modify or reconstruct the Premises. The <br />rights reserved to Lessor in this section or any other section of this Lease shall be exercised by the <br />Lessor at their sole discretion, unless otherwise provided herein. <br />ARTICLE VII <br />DAMAGE AND RESTORATION <br />7.1 Damage and Restoration. In the event the whole or any part of the Improvements shall <br />be damaged or destroyed by fire or other casualty, damage or action of the elements which is fully <br />covered by insurance required to be carried by Tenant pursuant to this Lease or in fact caused by <br />Tenant, at any time during the Term, Tenant shall with all due diligence, at Tenant's sole cost and <br />expense, repair, restore and rebuild the Improvements on substantially the same plan and design as <br />existed immediately prior to such damage or destruction and to substantially the same condition that <br />existed immediately prior to such damage, with any changes made by Tenant to comply with then <br />applicable Laws and with any upgrades or improvements that Tenant may determine in its reasonable <br />discretion. If Tenant desires to change the use of the Premises following such casualty, then Tenant <br />may make appropriate changes to the Premises to accommodate such changed use after approval of <br />such change of use by the Lessor pursuant to Article IV above. This Article shall not apply to <br />cosmetic damage or alterations. In the event that Tenant shall determine, subject to the rights of the <br />Leasehold Mortgagees and Limited Partner, if applicable, by notice to the Lessor given by the later <br />of ninety (90) days after the date of the damage or destruction or thirty (30) days after receipt by <br />Page 124 <br />F R M • <br />