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6.10.2 Lessee hereby agrees that Lessor shall not be liable for injury to
<br /> Lessee's business or any loss of income therefrom for damage to the goods, wares, merchandise
<br /> or other property of Lessee, Lessee's employees, agents, contractors, invitees, subtenants or any
<br /> other person in or about the Premises, the Regional Center or any other improvements on the
<br /> Premises. Except for negligent, reckless or intentionally tortious acts or omissions of Lessor or
<br /> its employees or agents, Lessor shall not be liable for injury to the person of Lessee, Lessee's
<br /> employees, agents, contractors, invitees or subtenants,whether such damage or injury is caused
<br /> by or results from fire, steam, electricity, gas, water or rain, or the breakage, leakage, obstruction
<br /> or other defects of pipes, sprinklers, wires, appliances,plumbing, air conditioning or lighting
<br /> fixtures, whether said damage or injury results from conditions arising from the Regional Center
<br /> or from other sources or places. Lessor shall not be liable for any damages arising from any act
<br /> or omission of any other tenant in the building or any other third party.
<br /> ARTICLE 7
<br /> DAMAGE, DESTRUCTION OF BUILDING OR IMPROVEMENTS
<br /> Section 7.1 Lessee's Obligation to Repair. In the event of damage to or destruction
<br /> of the Regional Center or any improvements on or to the Premises to be covered by the insurance
<br /> described in Article 6:
<br /> 7.1.1 Damage Less than Twenty-Five Percent of Replacement Cost. If:
<br /> (i) the cost of repairing or reconstructing the Regional Center or improvements to the condition
<br /> and form immediately prior to such damage or destruction does not exceed twenty-five percent
<br /> (25%) of the then-new replacement cost of the improvements and adequate funds are available
<br /> from the insurance acquired pursuant to Article 6 to effect such repair or restoration, all as is
<br /> determined by the insurance appraiser provided for in Article 6, (ii) such funds are available for
<br /> repair or reconstruction under the terms of any Permitted Debt, and (iii) such repairs or
<br /> reconstruction of any such damage or destruction can be made under then existing laws,
<br /> ordinances, statutes,or regulations of any governmental authorities applicable thereto (or can be
<br /> so made with minor and nonmaterial changes to the former condition and form of property
<br /> damaged or destroyed), then Lessee shall effect, and the funds derived from insurance acquired
<br /> pursuant to Article 6 shall be made available (subject to the rights of the holders of any Permitted
<br /> Debt) to effect, such repair and reconstruction of the structure or improvement so damaged or
<br /> destroyed to substantially its condition prior to said damage or destruction with such alterations
<br /> thereto as Lessee shall reasonably determine prudent or valuable under the circumstances,
<br /> including any changes required to comply with applicable law, with the then-prevailing
<br /> construction practices or financial or rental market conditions applicable to the Premises. If the
<br /> funds are not adequate, Lessee shall deposit in a Joint Account prior to the commencement of
<br /> any construction work a sufficient sum(or secured assurances that a sufficient sum will be
<br /> available when needed) in an amount not to exceed One Hundred Thousand Dollars ($100,000)
<br /> or the amount of the deductible on the physical damage insurance (whichever is higher), adjusted
<br /> every fifth (5th) anniversary of the Commencement Date as provided in Section 7.5 ("Maximum
<br /> Lessee Required Contribution"), so that, taken together with the insurance funds available for
<br /> construction purposes, there will then be held(or be assured of holding when needed) in cash a
<br /> sum equal to or exceeding the estimated cost of all labor, materials, and other construction costs,
<br /> 12
<br /> GROUND LEASE COE--EPFD
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