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event of default that has not been cured at the time of the exercise of the Extension Option <br />or at the commencement of the Extension Option Period, or (c) there have been more than <br />three (3) events of default under the Lease and City is not willing, in City's sole, absolute and <br />unfettered discretion, to waive the provisions of this clause (c). <br />4. Rental. Given the public benefit derived from The Science Factory's scientific and <br />educational services, The Science Factory shall pay to City on an annual basis the nominal <br />amount of one dollar ($1). Payment shall be made to City's Finance Department, or to such <br />other department as City shall designate. The total rental amount shall be paid by The <br />Science Factory to City in advance, on or before the first day of each year of the term of this <br />Lease. <br />5. Taxes. The Land and Building are currently exempt from assessment of real property taxes. <br />The Science Factory shall be solely responsible for the maintenance and preservation of the <br />tax- exempt status of the Land and Building. City shall cooperate with The Science Factory <br />in The Science Factory's preparation of documents necessary to preserve such tax- exempt <br />status. If The Science Factory fails to maintain and preserve the tax- exempt status of the <br />Land and Building, The Science Factory shall pay all property taxes and assessments on the <br />Land and Building before delinquency. <br />6. Repairs and Maintenance. <br />6.1 At all times during the Lease term, The Science Factory at its sole cost and expense <br />shall keep and maintain the Land (including, without limitation, the irrigation system <br />serving the land unless and to the extent that City has elected to maintain the <br />irrigation system pursuant to Section 6.2, below) and the Building in good order, <br />condition and repair, including, without limitation, any repairs, maintenance, <br />replacements or alterations arising by reason of or necessitated by The Science <br />Factory's use or occupancy of the Land or Building and any act, omission, misuse, <br />or negligence of The Science Factory, its agents, employees, contractors and invitees. <br />6.2 City may elect, from time to time upon notice to The Science Factory, to assume at <br />City's cost and expense the obligation of maintaining, repairing, removing or <br />replacing the irrigation system currently serving the Land, which also serves other <br />portions of the Park. <br />7. Alterations and Improvements. The Science Factory may not substantially alter or <br />improve the Land or Building without City's prior written approval of the plans and <br />specifications prior to commencement of work, which approval will not be unreasonably <br />denied, withheld or conditioned. For purposes of this Section 7, alterations or improvements <br />to the Building or to any portion of the Land other than the West Pond area shall not be <br />deemed to be substantial (and may be made without City's prior written approval) if cost of <br />the labor and materials to construct and install alterations or improvements on or in the <br />Building or the Land is in the aggregate less than $10,000 in any one calendar year; any <br />alterations or improvements of or on the West Pond area must be approved in advance by <br />City. In any event, regardless of whether City's prior written approval is required, all <br />GROUND LEASE - 4 Exhibit B - Page 4 of 12 <br />