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ARTICLE 4 TENANT'S COVENANTS 4.1 Tenant's Equipment. All Tenant's Equipment shall be the property of Tenant, Tenant's tenants or any lessor of such equipment. Landlord shall have no interest in Tenant's Equipment. Landlord shall not be responsible for any loss or damage to Tenant's byLandlord's wrongful act or negligence. Equipment except to the extent caused g 4.2 Maintenance. Tenant shall at Tenant's expense maintain the Improvements and, to the extent imposed by law on adjacent property owners,the adjacent sidewalks and curbs in good order and condition, ordinary wear excepted, and in compliance with legal requirements. 4.3 Repairs. Tenant shall make all necessary or appropriate capital and operating repairs and replacements and renewals to the Improvements, interior and exterior, structural and non-structural, ordinary and extraordinary, and foreseen and unforeseen sufficient for proper operation thereof using materials of good quality. The need for or appropriateness of such repairs, replacements and renewals and the quality of the materials used in accomplishing the same shall be in accordance with the reasonable standards of prudent operators of similar facilities. 4.4 Nondiscrimination; Restrictions on Use. Tenant covenants that during the Term, it shall permit the Development to be used only for residential rental housing and may rent units in the Development only to persons who are 62 years of age or older (the "Senior Housing Restriction"). In addition, Tenant shall to the extent permitted by law give preference in the rental of units in the following order of priority: (i) to persons who are residents or former residents of the City, (ii)persons who have a child who is a resident of the City, (iii) persons who have at any time been full time employees of the City or an agency or department of the City and (iv)persons who are residents or former residents of the City of Long Lake (the "Orono Preference Requirement"). The Senior Housing Restriction shall apply to all units. The Orono Preference Requirement shall apply only if there is a waiting list for available units. Except for the Senior Housing Restriction and the Orono Preference Requirement it shall not discriminate upon the basis of race, color, creed, religion, ancestry, national origin or sex, affectional preference, disability, marital status or status with regard to public assistance, in the sale, lease, or rental or in the use or occupancy of the Development Property or any improvements erected or to be erected thereon, or any part thereof. Subject to the foregoing use restriction andcompliance with legal requirements the Tenant may alter or remove all or any portion of the Improvements. Any use not authorized by this Section 4.4 shall be subject to written approval of the Board of Commissioners, which it may deny in its absolute discretion. -7-