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proposed modification and necessary expenses to comply with Alcohol Beverage Control (ABC) and SAMC requirements for serving alcohol at the Zoo. In the event the expenses necessary to comply with building codes, Alcohol Beverage Control (ABC) and SAMC requirements, the Santa Ana Municipal Code and Charter, and/or the Health Department exceed $50,000 in the aggregate, the parties agree to meet and confer on a mutually agreeable solution to pay for the additional expenses. All improvements to the Premises will comply with applicable building codes, the Santa Ana Municipal Code and Charter, and any other legal requirements. Bean Sprouts will obtain all necessary permits and licenses at its expense for all improvements to the Premises. g. Title to Vest in the City: Title to all Bean Sprouts improvements constructed, installed or placed in the Premises by Bean Sprouts under this Agreement shall immediately vest in the City subject to Bean Sprouts' right to use those improvements during the term of this Agreement. h. Maintenance and Repairs of the Premises: Except for maintenance and repairs necessitated by the willful acts or negligence of Bean Sprouts, or its agents, employees, invitees, licensees or customers, City shall be responsible for the costs of maintaining the exterior of the Premises, roof, foundation and structural components of the Premises as well as the parking lot, exterior and landscaped areas. City shall also be responsible for the replacement of all mechanical systems (including without limitation, electric, HVAC and plumbing) when they reach the end of their useful life. City will have the sole discretion to determine whether the mechanical systems have reached the end of their useful life. The City will use reasonable standards in the industry to determine when mechanical systems have reached the end of their useful life. Bean Sprouts shall be responsible for maintaining the interior of the Premises throughout the term of this Agreement in good condition. City acknowledges that normal wear and tear will occur. Bean Sprouts will be responsible at its expense as follows: (1) Repairs and maintenance for all equipment, furniture, and fixtures used within the Premises including but not limited to light fixtures, light bulbs, starters, equipment motors, and other similar items; (2) Cleaning of the Premises; (3) Equipment storage and maintenance; (4) Storage and/or disposal of grease and flammable materials; (5) Storage and disposal of garbage. City shall designate location(s) of garbage bins; (6) Repair and maintenance (but not replacement) of all water, sewer and electrical lines maintained inside the Premises; Page 6 of 19 #19793v7