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adverse physical conditions and the full extent thereof may not be revealed by Tenant's inspections, reviews
<br />and studies of the Hangar.
<br />6.2 Maintenance of Hangar. Throughout the term of this Agreement, Tenant shall, at
<br />Tenant's sole cost and expense, maintain the Hangar, clean, broom swept, fluid spills immediately contained,
<br />pick up and properly disposed; waste receptacles clean inside and out with liners; oils, paints, gasoline,
<br />lubricant containers, batteries properly stored off the floors, on shelves or in cabinets with approved
<br />containment and clean up products readily available, however, City shall maintain the structural components
<br />of the hangar, including doors and door mechanisms. Tenant shall maintain the Hangar in a clean and orderly
<br />condition at all times, and in accordance with California Department of Industrial Safety and Fire Codes
<br />which may apply to aircraft hangar storage and other applicable federal, state and local laws and ordinances.
<br />Tenant hereby waives the provisions of California Civil Code Sections 1941 and 1942 with respect to City's
<br />obligations for tenant ability of the Hangar and Tenant's right to make repairs.
<br />6.3 Alterations. Tenant shall not make any alterations to the Hangar nor shall Tenant
<br />hang anything from ceiling, walls, beams, doors, or fixtures in the Hangar; nor shall Tenant add fixtures or
<br />improvements or in any other way modify the Hangar without City's prior written consent, which may be
<br />withheld in City's sole and absolute discretion. Any and all such work approved by City shall be conducted
<br />at Tenant's sole cost and expense. Any alterations made shall remain on and be surrendered at the expiration
<br />or sooner termination of the Agreement, provided, however, that City may, at City's sole election, demand
<br />the removal from the Hangar of all fixtures and improvements or of certain fixtures or improvements or
<br />both as specified in the notice: provided for below. A demand to take effect at the normal expiration of the
<br />term shall be affected by notice given at least thirty (30) days before the expiration date. A demand to take
<br />effect on any other termination of the Agreement shall be affected by notice given in or concurrently with
<br />notice of such termination or within sixty (60) days after such termination. Tenant shall comply with the
<br />notice before the expiration date for normal termination, and within thirty (30) days after the notice for other
<br />terminations.
<br />6.4 Utilities. Except for electrical services which shall be provided by City, Tenant shall
<br />be responsible for the payment of all costs for utility services to the Hangar. City shall not be liable for the
<br />failure to provide electrical services if it is prohibited from doing so by events or actions beyond its control.
<br />7. PROHIBITION AGAINST ASSIGNMENTAND SUBLETING. Tenant shall not assign or
<br />transfer, whether voluntarily, involuntarily or by operation of law, its interest in this Agreement or any part
<br />hereof. No such assignment or transfer shall be valid or binding. An attempted assignment or transfer shall
<br />be grounds for City's termination of this Agreement. As used in this Section 6, the term "assignment" shall
<br />include a "more than twenty-five percent (25%) change in ownership of Tenant." A "more than 25% change
<br />in ownership of Tenant" shall mean, if Tenant is a corporation, the transfer of more than twenty-five percent
<br />(25%) of the voting stock of Tenant, or if Tenant is a general partnership, the transfer of the right to share
<br />in more than 25% of the profits of such partnership; or, if Tenant is a limited partnership a transfer of more
<br />than twenty-five percent (25%) of the voting rights of the general partner thereof to individuals or entities
<br />which were not theretofore general partners of Tenant. In addition, the parking of aircraft not owned or
<br />under exclusive lease by Tenant in the Hangar shall constitute a sublease for the purpose of this Article.
<br />8. INDEMNITY.
<br />8.1 Indemnity. Tenant shall indemnify, hold harmless and defend City, its elected
<br />officials, officers and employees, from and against any and all actions, claims, damages (including but not
<br />limited to special and consequential damages), administrative proceedings, interest, fines, charges, penalties
<br />GREG BATLA HANGAR #22 LEASE AGREEMENT
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