or any work, activity or other things allowed or suffered by The Science Factory to be done <br />in, or about the Land or Building; (b) any breach or default by The Science Factory of any <br />of The Science Factory's obligations under this Lease including compliance with zoning and <br />use requirements; (c) any negligent or otherwise tortious act or omissions of The Science <br />Factory, its agents, employees, invitees or contractors; or (d) the use or disposal of hazardous <br />materials on the Land or Building. The Science Factory shall, at The Science Factory's <br />expense, and by counsel satisfactory to City, defend City in any action or proceeding arising <br />from such claim and shall indemnify City for any losses or damages. Such indemnification <br />shall include but not be limited to the cost of defense of any legal claim, action, appeal or <br />review arising out of any such claim made by any third person. The foregoing indemnity <br />shall survive the expiration or earlier termination of this Lease. <br />12. Damage and Restoration. <br />12.1 If the Building is damaged or destroyed by fire or any other cause at any time during <br />the Lease term, and Section 12.2 does not apply, The Science Factory shall promptly <br />repair the damage and restore the Building. The completed repair, restoration or <br />replacement shall be equal in value, quality and use to the condition of the Building <br />immediately before the damage. Repair shall be accomplished with all reasonable <br />dispatch, subject to interruptions and delays from labor disputes and other causes <br />beyond The Science Factory's reasonable control. <br />12.2 If the Building is damaged such that the cost of restoration is reasonably estimated <br />by City to equal or exceed fifty percent (50 %) of the value of the Building prior to <br />the occurrence of the damages, then the parties shall proceed as follows: <br />12.2.1 City may elect to terminate this Lease or require The Science Factory to <br />repair the damage and restore the Building by giving written notice to The <br />Science Factory within thirty (30) days following the date of damage. <br />12.2.2 If City elects to require The Science Factory to repair the damage and restore <br />the Building, the completed repair, restoration or replacement shall be equal <br />in value, quality and use to the condition of the Building immediately before <br />the damage. Repair shall be accomplished with all reasonable dispatch, <br />subject to interruptions and delays from labor disputes and other causes <br />beyond The Science Factory's reasonable control. <br />12.2.3 If City elects to terminate this Lease, all insurance proceeds shall be <br />distributed in accordance with Section 13.2. <br />13. Insurance. The Science Factory shall obtain and maintain continuously in effect at all times <br />during the term of this Lease, at The Science Factory's expense, the following insurance on <br />the Land and Building: <br />13.1 Commercial General Liability Insurance. A commercial general liability <br />insurance policy, including bodily injury and properly damage, with combined single <br />GROUND LEASE - 6 Exhibit B - Page 6 of 12 <br />