P075T Original Lease

)rding ~equested by# pllelUJe(return to: Ll Craft Harbors )7 Fiji Way .na del Rey, ca ra r . TO WHOM ••• • NOTICE OF LEASE that on the 27th day October, of described parcel 1966# the County of land situated of Los Angeles, Craft Harbor sometimes of the County referred to as Parcel hereto IT MAY CONCERN: take notice Please of Los Angeles within State did lease the following del Rey Small hereinafter the Marina of California, described 12 herein LL.D., M.D., M.D., M.D., legally to in exhibit "A" attached Burack, and incorporated G. Cadoo, H. Haller, McBride, Richard B. Agee, M.D., Herbert M.D •• Donald Blair C. Filler, M.D., Austin P. Haller, M.D., Theodore M.D., Daniels William Frederick D. Hansen, P. McGinn, M.D •• J. David Kirksey, LL.D •• Japk Morgan, M.D., C. Ronald LL.D., HerbertC. Prl11wltz, M.D •• Richard M. Rarick, R. Paul St.Amand, Tretheway, LL.D., Anthony uals, under J. Volante# M.D., and Ronald C. Woods, conditions M.D., 'as individof lease. file of certain set forth 1n said indenture The original the Clerk of said indenture of Supervisors is on flle ln the official of the County of the Board of Los Angeles. County of Los Angeles Department of Small Craft Harbors By -.,----...-:--::-:-...•.•.. Leo Bialis, Harbor STATE OF CALIFORNIA County of Los Angeles } 88. --..--,;o-:--~-Controller On this day of ,. A.D. # 19 , before me, JAMES S. MIZE;-ACting Cler~of the ~oard of Supervisors or-rhe County or Los Angeles, State of California# residing therein, duly commissioned and sworn, personally appeared LEO BIALIS, known to me to be the Harbor Controller of the Department or Small Craft Harbors of the County of Los Angeles and the person who executed the within instrument on behalf of the County therein named, and acknowledged to me that such County executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year of this certificate first above written. JAMES By S. MIZE# Acting Clerk of the Board of Supervisors Deputy .< LEA - --AJl- , S -- --E THIS LEASE made this _ ..•• ';;)_(.:..._ 19~~, by the County of Los Angeles, hereinafter called "County," and Richard B. Agee, M.D., Herbert Burack, M.D., Donald G. Cadoo, LL.D., Blair C, Filler, M.D., Austin P. Haller, M.D., Theodore H. Haller, M.D., Daniels D. Hansen, M.D., J. David Kirksey, M.D.] C. Ronald McBride, M.D., William P. McGinn, LL.D., Jack Morgan, LL.D., Herbert C. Prillwitz, M.D., Frederick M. Rarick, M.D.] R. Paul St.Amand, M.D., Richard Tretheway, LL.D., Anthony J. Volante, M.D., and Ronald C. Woods, M.D., as individuals, hereinafter called "Lessee," WITNESSETH: of the terms, conditions, and covenants That in consideration herein contained, to be kept and performed by the parties hereto and the strict, prompt and punctual performance and covenants of each of the terms, conditions by Lessee on his part agreed to be kept and performed, County by these presents does lease and demise unto Lessee, and Lessee by these presents does lease, hire, and take from County the following described parcel of land, consisting of a total of 52,710 square feet and situated in the Marina del Rey Small Craft Harbor of the County of Los Angeles, State of California, hereinafter in Exhibit sometimes referred to as IIA,l1 ttached hereto and a Parcel Number 75 legally described incorporated herein. TO HAVE AND TO HOLD said leased premises lease and upon terms and conditions 1. for the term of this as follows: DEFINITION OF TERMS. attached The following words have in this lease the significance to them in this paragraph1 unless otherWise apparent "BOARD" means the Board of Supervisors Angeles. "COMMISSION" means the Small Craft Harbor Advisory from the context: of the County of Los Commission of the County of Los Angeles. llCOUNTyll means the County of Los Angeles. l1DEPARTMENT" means the Department County of Los Angeles. l1DESIGN CONTROL BOARDI means the board appointed ! of Small Craft Harbors of' the by the Board of Supervisors to review and approve the architectural constructed at Marina del Rey. design and arrange- ment of facilities t "DIRECTOR" Harbors means of the County "ENGINEER" The word The word The words permissive. The word aire, assignee interest means "PROPERTY" "SECTION" ; ..' the Director the County Engineer includes e of the Department of Small. Craft of the County of Los Angeles. property. of this lease. and the word "MAyis li of Los Angeles. both real and personal means a section "SHALL" and "WILL" are mandatory "SUBLESSEEIt includes or transferee licensee, permittee, concessionto any of or from Lessee under With respect in the property demised contained this lease. shall be construed according but Words and phrases to the context technical herein and the approved usage of the American language, words and phrases, meaning and such others as have acquired a peculiar para- and appropriate by law, or are defined are to be construed meaning in the preceding graph of this section, peculiar, according to such technical, and appropriate or definition. tense include gender the future include the Words used in this lease in the present as well as the present; feminine words used in the masculine includes and the neuter and the neuter number includes the masculine and femithe singu- nine; the singular lar; the word person. 2. the plural and the plural Itpersonltincludes a corporation as well as a natural TERM. commencing upon The term of this lease shall be sixty (60) years, CG. the first day of September, 1966. 3. PURPOSE OR USE OF PROPERTY. The leased premises struction, include operation shall be used only and exclusively of a medical arts center, for conto and maintenance offices for the practice commonly of medicine and dentistry; laboratoriAc of medicine of and other facilities and dentistry; associated with the practice offices and, at the option of Lessee, such as law, engineering, for the practice except other professions and architecture, that not more than thirty per cent (30%) of total floor space may be allocated for use by such other professions, incidental Whatsoever and such other related uses approved and for no the and purposes thereto as are specifically without the written other purposes approval of County; ", ( -~, L uses and purposes above listed are set forth to define the maximum contemplated scope of permissible uses and purposes, and their enumeration is not intended to be authorization for any specific use or purpose. that the uses of the said predo not include the following: and medical or It is also expressly understood mises which are permitted hereinabove retail sales of merchandise other than pharmaceuticals dental supplies, except sundry items dispensed by vending machines. There shall be no actual construction upon said premises except con- that required by Sections 5 and 6 hereof, and except that additional struction allowed upon approval of Director pursuant to Section8 hereof. Lessee shall conform to and abide by all rules and regulations relating to the operations herein authorized and shall be subject at all times to applicable rules, regulations, resolutions, ordinances and the Federal and statutes of the County of Los Angeles, State of California, Government, and all other governmental agencies where applicable; where permits are required for such operations the same must be first had and obtained from the regUlatory body having jurisdiction before such operation 1s undertaken. thereof 4. ACTIVE PUBLIC USE. The ultimate object of this lease is the complete and continuous use of the premises herein demised by and for the benefit of the publiC, without discrimination being the development therefrom. as to race or religion, the immediate object and realization of the greatest possible revenue It is agreed that said immediate and ultimate objects are Accordingly, Lessee covenants and agrees to the end consistent and compatible. that he will operate said premises fully and continuously that the public may enjoy maximum benefits and County may obtain maximum revenue therefrom. In the event of any dispute or controversy relating hereto, this objects. lease shall be construed With due regard to the aforesaid 5. PLANS AND SPECIFICATIONS FOR REQUIRED CONSTRUCTION. Phase I construction (1) shall include, but is not limited to: A medical arts building of at least 7,000 square feet gross floor space; t (2) A parking (3) Landscaping ~ .j': '. 1 ' > lot to accommodate at least6 cars per 1,000 square feet of building floor space; parking lot, and tenwesterly reserved by of of building, foot landscape the ten-foot the County; (4) mises. strip along Lincoln and utilities Boulevard easement access and Interim landscaping of remainder of demised pre~ Phase II construction improvements not included shall comprise any and all additional appli- in the final plans and specifications cable to Phase I. Prior to commencing after commencement Department construction and within ninety (90) days of the term of this lease, Lessee plans and outline of the demised shall file with specifications premises in its six (6) sets of schematic ultimate development for the proposed entirety (both phases). Such schematic generally plans and outline accepted specifications shall conform community Within to the standards in the architectural specifications. plans and outsets of the as standards for schematic plans and outline ninety (90) days after approval Lessee of such schematic line specifications, preliminary estimated hundred shall file With Department six (6) plans and specifications cost of which for said Phase I construction, Within shall be not less than $150,000. one plans twenty (120) days after approval Lessee of Phase I preliminary and specifications, shall file with Department six (6) sets of The times for for Phase II however, until pre~ final plans and specifications submitting improvements preliminary for Phase I construction. and final plans and specifications of Lessee; shall be at the discretion provided, that no construction liminary ments of Phase II improvements shall commence and final plans and specifications by County. for said Phase II improve- have been approved Such final plans and specifications Standards of Construction and Architectural adopted shall conform Treatment to Minimum del Rey for Marina Small Craft Harbor and subsequent as heretofore thereto, by the Board on January 1961 3, to approval by amendments and shall be subject Director, Design Control • Board and Engineer. Design Control No construction e shall have begin until approved said Director, Board and Engineer said final plans and specifications. of the approved plans and specifications or of with- No modification said improvements, including landscaping, shall be made by Lessee Design Control Board, and out the prior approval Engineer. 6. REQUIRED of said Director, CONSTRUCTION covenants SCHEDULE. and agrees that Within sixty (60) days for Lessee expressly after the approval in Section 5, Lessee improvements laterals of the final plans and specifications shall in good faith Gommence therein, including required as provided of the construction described and underground sewer, water With (includsaid such for power, light, telephone, teleVision, ing fire lines), approved gas lines and landscaping, in accordance plans and specifications, and shall complete and shall diligently prosecute construction seventy the same not later than two hundred of the final plans and due to fire, control of Lessee by (270) days after prOVided the date of approval specifications; earthquake, shall extend that any delay in construction or other event beyond said construction must war, labor dispute, the time in which be completed the length of time of such delay. Failure within of Lessee to commence or diligently prosecute said work said time shall constitute Even though Lessee a default of Lessee hereunder. those improve- is not required to construct ments designated as Phase II, Lessee the application agrees that, for the sole purpose the procom- of determining visions pleted of full square foot rental under of Section by August 12 of this lease, said Phase II shall be deemed of whether 31, 1969 regardless under planning, said Phase II construcor will not be tion is in existence, constructed by Lessee. RENTAL in progress, 7. PAYMENT SECURITY. receipt from Lessee of the sum of rna •••• Dollars ($ County hereby acknowledges WI •••••• 1IYIIft ...•• AD ./1 •••• - •......•. ---equal to six (6) full monthly This ••......• of '.tTl ••••••••• ) installments square foot rental for the demised premises. sum shall be used and I :~ i One-half of said sum shall be applied toward the payment of rent of said sum shall' be rent, and shall be is said first accruing under this lease, and one-half retained by County as a guarantee so applied. to cover delinquent In the event all or any part of said sum so deposited applied against any rent due and unpaid the Lessee shall reimburse deposit, so that at all times during the life of this lease said depOSit Failure to maintain the full amount of said Upon forfeiture or ter- shall be maintained. deposit mination shall sUbject this lease to forfeiture. of this lease any portion of said deposit due the Lessee shall be returned. At any time subsequent to the first five (5) years of the term of this lease Lessee may substitute quent rent a corporate for said cash deposit to cover delin- surety bond, issued by a surety company licensed said bond and company to transact business in the State of California, to be in all respects deposit. satisfactory to County, in an amount equal to said 8. ADDITIONAL CONSTRUCTION. Lessee may, at its own expense, make or construct, made or constructed, improvements or cause to be other than those required by Sections repairs, or changes in the leased preadditions, alterations, uses set forth in improvement, 5 and 6, additions, alterations, mises provided such proposed improvements, repairs or changes are within the scope of permissible Section 3, and further prOVided addition, approval alteration, of Director. that each specific proposed repair, or change must first have the written Director may refuse permission improvement, addition, for the construcalteration, tion of any proposed additional repair or change, and hiS decision will be final. If Director approves mit plans and specifications construction said proposed to Director construction, and Engineer Lessee shall sub- and may commence upon receipt of written approval thereof from Director, With such terms Design Control Board and Engineer and conditions and upon compliance relating to the construction as Director may impose. 9. LANDSCAPING. Lessee shall, at its own cost and expense and to the satisfaction of County, install and maintain landscaping upon the demised premises. A general layout of proposed landscaping shall be submitted as part of improvements of the site. the plans and specifications for all proposed This will include the landscaping of all areas between any street and to create a pleasplans and set back lines and such other areas as are necessary ing development of the project as a whole. of Director, All landscaping layout must have the approval Engineer. 10. PERFORMANCE Design Control Board, and AND SURETY BONDS. Lessee shall at its own cost and expense, furnish County three (3) separate corporate County, as follOWS: (a) Within ten (10) days prior to commencement hereunder, of any surety bonds, 1n all respects satisfactory to the construction Lessee shall furnish a corporate surety performance bond, issued by a surety company licensed in an to transact business in the State of California, amount equal to fifty per cent (50%) of the contract price of any construction required of Lessee pursuant to Sections 5 and 6, said bond and said company to be in all respects, including amount thereof, satisfactory to County, naming Lessee as principal and said company as surety, and County as obligee, to assure full and satisfactory Lessee of Lessee1s obligation contained performance by in Sections 5 and 6 and landscap- to build, construct, and install improvements ing upon the demised premises. (b) Within ten (10) days prior to commencement of any construction hereunder, Lessee shall furnish a corporate surety bond, issued by a surety company licensed to transact business principal, obligee, aforesaid in the State of California, with Lessee as and said company as suretY1 and County as in a sum equal to fifty per cent (50%) of the contract price of any construction, provisions, guaranteeing supplies, payment for all materials, and equipment, provender, used in, upon, for or about the performance work or for labor done thereon of any County from, Iy and all of said construction kind whatsoever and protecting liability, loss or damages arising from failure to make In the event that Lessee employs a hereinbefore licensed such payment. contractor for the construction obtains from said contractor required and similar bond or to or contractors bonds in like amount, in all respects satisfactory County, County, upon application naming of County as an additional by Lessee and upon the obligee under such bond bonds ~n lieu of or bonds, will accept said contractor1s the bonds otherWise required by this paragraph and paragraph (a) of this Section. (c) Lessee shall furnish a corporate surety bond in •••• ), guaranteeing Dollars the removal of all the amount of ($ ••• debris or submerged craft emanating from the premises herein demised, whether on said premises or elsewhere, which may obstruct traffic or interfere in any way with the proper use of the navigable waters of Marina del Rey Small Craft Harbor, guaranteeing tion or other termination anchorage the removal prior to the expiraof this lease, of all mooring, pilings and floats in the on the back land owned, the and slip facilities, water area, and all improvements operated or maintained by Lessee, and guaranteeing leaving of the ground in a level and usable condition and the removal of all facilities not designated by Director to be left in place; Director shall give Lessee thirty (30) of any of the days written notice for the performance guarantees hereinbefore (d) proVided for. The Lessee shall have the option to deposit with cash or United States Government the County of Los Angeles, securities in all respects satisfactory to the County of Los Angeles in lieu of any corporate surety bonds required herein. Said cash or securities shall be deemed deposited with the County for all the purposes enumerated herein and shall be so deposited for the benefit of the County under the same terms and conditions as set forth herein with , t , " 11. GROSS RECEIPTS. as used in this lease is defined property to be The term "gross receipts" all money, including commissions cash, receipts, but not limited assets, or other things of value, sales, rentals, fees and to, gross charges, made or earned, and all gross sums received sublessees, or accrued, thereof, licensees, or earned by or conuse or or per- Lessee and all his assignees, cessionaires, occupation, formed, whether collected permittees from any business, transacted or any combination originating, in whole or in part, on the premises, the rendition or supplying including but not limited to, rental, of services, and the sale of taxes applicable sublessees, or supplying shall not where goods, wares or merchandise; thereto, licensees required less sales and eXcise by Lessee, to be collected his assignees, and permittees in connection With the rendering of services include or goods, wares or merchandise. Gross receipts fees, charges or rentals paid to a Lessee are reported by a sublessee the gross receipts percentage rental of such sublessee schedule and subject to the set forth in Section 13. for any overhead limitation to, There shall be no deduction or cost or expense salaries, collection, wages, of operation, from gross receipts such as, but without cost of goods, interest, debt amortization, insurance discount, credit card and bad debt charges, prOVided for herein. the amount and taxes, except as specifically Gross receipts importer's excise shall include of any manufacturer's of any property or tax included in the prices or material sold, even though the manufacturer thereof, and it is immaterial charge. or importer is also the retailer of such excise tax is whether the amount stated as a separate Federal, Gross receipts, however, shall not include State, Municipal of whether or other taxes collected thereof from the consumer as a (regardless separate agency, the amount is stated to the consumer to a governmental but the amount Charge) and paid periodically by Lessee accompanied by a tax return or statement, of such taxes shall be shown on the books and records to be maintained. elsewhere herein required \ r 12. SQUARE FOOT AND HOLDING square foot rental RENTALS. for the whole •••.•.• 1:11 _ •••••. of the premises here-.) The annual in demised per square shall be foot, or the total of cents ($0 .••••••••••• I'IQ •••••• AD ./1•.•..........•. _-- Dollars ($l.,J't •••••.•. _.._ ~------_·). Said annual square foot rental shall be paid to County installments. Said installments ,..,.. ••• ","I' in twelve (12) equal monthly payable in advance shall be due and month, starting comple- on the first day of each calendar month next succeeding With the calendar the date of substantial tion of Phases I and II constructed starting With the calendar pursuant to Sections5 and 6, or the commencement of month next succeeding use by the public pursuant demised. of any of the improvements required to be constructed herein to Sections 5 and 6 or of any portion of the premises For the purpose tal, the determination improvements improvements of commencing of Director liability for said square foot rensaid shall be final as to whether completed or whether have been substantially or any portion any of said by the public. of the premises are being u$ed No use by the public portions of any of said improvements or of any adjoining completion of of the parcel hereby demised as determined shall be made until said improvements by Director. and agreed that Lessee may desire to com- It is further understood complete the aforesaid improvements in stages and to progressively of said improvements demised and mence public adjoining pleted. opening use of the various portions portions of the parcel herein as the same may be comcompletion and In the event of such a program to publiC use, satisfactory completed of progressive to County, and opened adjusted the annual square foot rental for the portions accordingly improvements to use shall commence in the proportion that the and shall be equitably and areas completed and area. and opened to the publiC use bear to of Director as to said the whole improvement equitable adjustment The decision shall be final. any of the foregoing provisions, it is under- Notwithstanding stood and agreed that on the first day of the month of the construction of folloWing the date for completion Phase I improvements, • , , , " as said date is established in Section6, the bid square foot rental shall be applicable premises which the approved to that portion of the demised show as being final plans and specifications with the exception occupied by Phase I improvements, that area containing of that portion of the interim landscaping on the Phase II construcIt is tion site (said landscaping understood regardless is part of Phase I construction). and agreed that such rental shall be payable on said date of whether or not Phase I construction has been in fact comthe foregoing it is pleted and/or opened to public use. understood Notwithstanding and agreed that on September 1,1969, the bid square foot regardless of rental shall be applicable to the entire demised premises, Whether or not Phase I and Phase II construction has been completed. Prior to the start of square foot rental payments as in this section above prOVided for, Lessee shall pay to County each month in of one-third of the contemplated advance a "holding rental" consisting total monthly installment 1966. of square foot rental, starting on the first In the event of the start of proportionate completion, as in day of September, square foot rentals under a program of progressive this section above provided for, the "holding rental" for that portion of the demised premises foot rental. If Director construction finds that Lessee has completed shall be abated thus made subject to square his improvements and but cannot utilize or utility it due to failure of the County to comshall order the abatement lines are provided, of which plete roadways lines, Director all rental payments until roadways and utility in the opinion of the Director Lessee's functions. are available for the operation of the If Lessee fails to commence of improvements or diligently prosecute construction in at the time agreed upon in Section6, and continues such failure for ten (10) days, said "holding rental" one-half of the said total monthly payable monthly in advance installment shall increase to of square foot rental, starting on the first day of the calendar The deter- month next succeeding the tenth calendar day of said failure. mination as to Whether Lessee has failed to commence or to diligently prosecute construction shall be made by Director and Director's decision ,; . .. shall be final. If Lessee's said failure to commence or diligently pro- secute construction continues for a period of thirty (30) calendar days, of square foot rental shall be due and starting on the first day of the period. the full total monthly installment payable each month in advance thereafter calendar month next succeeding the end of said thirty-day 13. PERCENTAGE RENTALS. The square foot rental agreed upon in Section 12 is a minimum rental, payable in lawful money of the United States. The money received as square foot rental for any calendar month shall be applied to the payment of the percentage rental for said calendar month as provided for in this Section 13. Within fifteen (15) days after the close of each and every calendar month of the term hereof, Lessee shall pay to County a sum in like money, less the amount of the monthly installment of annual square foot rental previously paid for said calendar month under Section 12, equal to the total of the following for said previous calendar month: (a) TWENTY Per Cent (20%) of gross receipts from the rental or other fees charged for the use of boat slips, anchorages, moorings, dockside gear lockers or storage space, and such other facilities and services ancillary thereto as are provided in common to all tenants; (b) TEN Per Cent (10%) of gross receipts from the dry storage, launching, or retrieving of small boats, and from rental of landside gear lockers or storage space; (c) SEVEN AND ONE-HALF Per Cent (7~) of gross receipts from fees, charges or rentals for occupancy of structures including apartment units; hotel or motel accommodations, house trailers, and offices or similar space utilized for banking; financial, or investment activities; calor administrative actiVities internal cleri- of business enterprises, or the rendering of ser- real estate and insurance brokerage; legal; medical, engineering, or similar professional vices; but excepting stores; shops or other commercial establishments the gross receipts pertaining to percentage rentals and specifically to Which are SUbject required or authorized (d) ONE Per Cent (1%) of gross receip • '" t from the sale of new or used boats, boat trailers, house trailers and trailer cabanas; said gross receipts shall include all credits given for used items taken in trade as part payment for new items, as reflected in the bills of sale, but the trade-in allowance for a used item taken in trade may be deducted from the subsequent sale price of said used item if said used item is sold Within 120 days of the date of the bill of sale which established (e) said trade-in allowancei FIVE Per Cent (5%) of gross receipts from boat brokmarine insurance commissions where the sale erage and from of insurance is conducted in conjunction with boat sales and/ or boat brokerage; (f) TWENTY Per Cent (20%) of any commissions or fees collected from itinerant vendors or from service enterprises based outside the demised premises; (g) TWENTY Per Cent (20%) of gross receipts from rentals sites and or other fees charged for use of trailer-cabana such other facilities and services ancillary prOVided in common to all tenants; (h) thereto as are TWENTY-FIVE Per Cent (25%) of any commissions or paid to Lessee for the right to install or devices, includ- other compensation coin-operated vending or service machines ing pay telephones, or FIVE Per Cent (5%) of the gross receipts of any such coin-operated machines or devices owned, rented, or leased by Lessee or his sublessee; (i) TEN Per Cent (10%) of gross receipts from the opera- tion of a bar, tavern, cocktail lounge or other such facility engaged primarily in the on-premises sale of alcoholic bever- ages, except that gross receipts from such facilities as are established and operated in conjunction with a restaurant or similar food service facility on the same premises may be reported under subsection (j)j (j) THREE Per Cent (3%) of gross receipts from the operation of food service facilities J including bar or cocktail or similar facility lounge in conjunction with restaurant when food service is the primary purposej (k) ONE AND ONE-HALF Cents ($0.015) per each gallon of • gasoline, diesel fuel or mixed fuel sold or SIX Per Cent(6%) of gross receipts of such sales, whichever is the greater; (1) FIVE Per Cent (5%) of gross receipts from sales bya fuel sales facility of petroleum or fuel products other than those covered by subsection (m) (k) above; FIFTEEN Per Cent (15%) of gross receipts from club except that separate dues, initiation fees, and assessments, assessments (n) for capital improvements are exempted; TWENTY Per Cent (20%) of gross receipts from parking fees; (0) TEN Per Cent (10%) of gross receipts from the rental of boats, outboard motors, fishing tackle, and other recreation equipment and from the sale of live bait; (p) THREE Per Cent (3%) Of gross receipts from boat haul- out, repair, painting, and similar activities; (q) FIVE Per Cent (5%) of gross receipts from fees, charges or rentals from the leasing or charter of boats for a term of six (6) months or more; (r) SIX Per Cent (6%) of boats; gross receipts from the opera- tion of sportfishing (s) ONE Per Cent (1%) of gross receipts from the sale of goods and services; miscellaneous (t) FIVE Per Cent (5%) of gross receipts from any and approved by Director which are not prosubparagraphs. rentals agreed to be paid by all other activities Vided for in the preceding If the total of the percentage Lessee, when computed on an annual basis for any calendar year, is less than the sum of all rental payments actually made by Lessee for said calendar year, Lessee shall be allowed credit for any amount by which the payments actually made exceed the greater of (1) the sum of the square foot rentals for the calendar year, or (2) the sum of percentage rentals agreed to be paid, computed on an annual basis for the calendar year. If any of the items, services, goods or facilities mentioned subparagraphs in (a) through (t) of this paragraph be provided by Lessee or licensees. concessionaires or nermittees. its sublessees. assignees. • assignees, licensees, concessionaires cable percentage 14. thereof paid to County. RENT RENEGOTIATION Section 504 of the Bond Resolution • be and permittees, and the appliTO MEET LEGAL REQUIREMENTS. described in Section46 of without the usual charges therefor according to the price list or schedule provided for in Section 16, or iT said usual charge be not collected in full, the proper amount thereof shall nevertheless included in the gross receipts reported by Lessee and its sublessees. this lease requires that each lease provide that the square foot rentals and percentage rentals be subject to increase if and when the Board of Supervisors shall find and determine that such increase is under the terms required to permit the County to meet its obligations of said Bond Resolution. In the event that the Board of Supervisors determines that it is required to increase rentals to meet its obligations under the Bond Resolution, it may increase the square foot rentals and percentage ren- tala provided for in this lease to the extent required to meet said obligations, except that the Lessee shall bear no more than his propor- tionate share of the total increase required to meet said obligations as reasonably determined by the Director, and, in any event. the amount of any such increase shall not exceed ten per cent (10%) of the previously existing square foot rentals and percentage rentals. Rental increases under this section shall not be made during the first five (5) years of the term hereof nor more often than every ten (10) years thereafter. 15. GENERAL RENT RENEGOTIATION AND ARBITRATION. Except as provided in Section 14, the square foot and percentage rentals hereinbefore the first t•• provided for shall apply and be in effect for years of the term hereof. At the end year t,...(11) of said period, and at the end of every period thereafter, hereinafter. 'In (10) the said rentals shall be readjusted as prOVided Such rentals shall be readjusted by Lessee and County, in accordance with standards of and for fair market value hereinafter forth, at some time not more than nine (9) months and not less than set six (6) Lessee same months before the beginning agree upon of each such period, in the event the and County shall cannot the readjustment of three (3) of rentals, be determined one of whom by the two by a board shall real estate one by Lessee, appraisers, be appointed by County, and the third (2) appraisers not been above so appointed. by mutual County agreement give to If the rentals within Lessee the three-month a written have readjusted prescribed, period shall notice demanding submission of any unresolved issues to (15) to said board of real estate appraisers on behalf and nominating of County. the person fifteen its real If either act as real estate days from appraiser Within the service of such notice County Lessee shall appoint estate party appraiser shall and notify notified of such appointment. in writing JUdge not have the other of the appointment of the Superior of Los Angeles, appraiser so of its real estate Court shall, of the State upon request appraiser, the Presiding in and of California, of either for the County party, appoint the real estate for the party chosen within shall ten so in default. be unable If the two (2) real estate upon the third real appraisers appraiser to agree estate (10) days after the third Judge real the appointment estate appraiser Court estate upon of the second shall real estate by the party. by appraiser, Presiding Any be appointed of either shall of said Superior of real request vacancy on the board or which filled appraisers appointment be filled the party place. who made the original to the vacant of If notso within ten (10) days shall from the commencement by the said said vacancy, Presiding the vacant upon position be filled party. shall, Judge request of either The Board appointment determine thereof majority of real estate appraisers upon immediately upon the ~nd of its members, the amount enter the discharge and notify of its duties the parties A of readjusted sixty rentals in writing Within (60) days after who agree its appointment. thereto may of the real estate appraisers readjust of the such rentals, such readjustment value of this to be based upon lease, taking a determination the fair market uses permitted into consideration conditions, and thereunder and all of its terms, restrictions, and data franchise value, earning power. and all of the factors to be considered the laws of that at all shall be in relating to such value required or proper determining eminent times the fair market in the State value of leaseholds also under domain during of California; provided the term that of th1.s lease the total demised required to meet of such rentals shall produce in such amount the property hereby at least Code of Board its proportionate Section County 26360 under share of the revenue required Bond by Government the obligations and the revenue that certain Revenue Resolution of the County of Supervisors renegotiation mum rental referred to in Section 46; and, notWithstanding of this Section be lower than the and arbitration this lease provisions shall never 15. the miniof under the product ,ta cents --------------~~_multiplied the event notice by the square said real feet of the leased appraisers estate ($•• 1••••••••••••••••••• land and water area. In fail to determine rentals shall within sixty and give (60) days. a of the amounts of real of readjusted appraisers new board estate be appointed in the manner hereinbefore If prescribed. said readjusted the beginning shall rentals shall not be finally the same for any reason until after determined must rate of any period for Which be readjusted, as a credit Lessee continue to pay rentals at the former when as the and against the amount of the readjusted that the amount the beginning made and rentals fixed finally determined; rentals provided, shall shall however, from readjusted proper former the two borne real accrue be made of said period by Lessee expenses at the of each shall adjustment rates for payments The costs appointed Costs during said interim. apprai~ers of be (2) real estate by the parties by the party estate 16. so appointing. shall and expenses between of the third the parties. appraiser be equally diVided CONTROLLED shall PRICES. times maintain a complete list or schedule Lessee of the prices thereof, whether at all charged for all goods or services. or combinations hereby demised, supplied to the public supplied on or from the premises the same are by Lessee or by its sublessees. Or licensees. assignees, concessionaires. permittees • Said prices shall be fair and reasonable, based upon the following two (2) considerations: First, that the property herein demised is intended to serve a public use and to provide needed facilities to the public at fair and reasonable cost; second~ that Lessee is entitled to a fair and reasonable return upon his investment pursuant to this lease. In the event that Director notifies Lessee that any of said prices are not fair and reasonable, Lessee shall have the right to confer With Director and to justify said prices. If, after reasonable conference and consultation, Director shall determine that any of said prices are not fair and reasonable, the same shall be modified by permittees or Lessee or its sublessees, assignees, concessionaires, licensees, as directed. The Lessee may appeal the determination of the Director to the Board of Supervisors, whose decision shall be final and conclusive. Pending such appeal, the prices fixed by the Director, shall be the maximum charged by the Lessee. 17. MONTH TO MONTH TENANCY. If Lessee holds over after the expiration of this lease for any cause, such holding over shall be deemed to be a tenancy from month to month only, at the same rental per month and upon the same terms, conditions, restrictions and provisions as herein contained. Such holding over shall include any time employed by Lessee to remove machines, appliances and other equipment during the thirty-day period hereinafter 18. prOVided for such removal. OF INSTALLATIONS OR IMPROVEMENTS. DISPOSITION Title to all structures, bUildings or improvements constructed by Lessee upon the demised premises, and all alterations, additions, or betterments thereto, shall remain in Lessee until termination of this lease; and upon such termination, whether by expiration of the term hereof, cancellation for good cause, forfeiture, or otherwise, title to said structures, buildings, improvements and all alterations, additions or betterments thereto, and all improvements made to or upon said premises, shall, at the option of County, vest in County without compensation improvements part thereof. therefor to Lessee, and said structures, bUildings, and shall remain upon and be surrendered with the premises as Nothing contained herein shall be construed to deny or abrogate the right of Lessee to recei.ve any and all proceeds which are attributable improvements, to the taking in eminent domain of business installations, structures and bUildings belonging to Lessee immediately prior to the taking of possession by the condemning authority as said rights are set forth in Section 43 of said lease. However, in the event of termination Or expiration of this lease, the County may require the Lessee to remove, at the sole cost and expense of Lessee, and not later than the termination or expiration date, all works, structures and improvements of any kind Whatsoever placed or maintained on said premises, whether below, on, or above the ground by Lessee or others, including, but not limited to, wharves, piers, docks, slips, bulkheads, seawalls, piling, channels, concrete foundations, structures and buildings; and Lessee shall, upon the expiration of this lease, immediately restore, and quit, and peace- fully surrender possession of, said premises to County in at least as good and usable condition, acceptable to the Director, as the same were in at the time of first occupation thereof by Lessee or others, ordinary wear and tear excepted, and shall, in any event, leave the surface of the ground in a level, graded condition, with no excavations, holes, hollows, hills or humps. Should Lessee fail to so remove said structures, buildings and improvements and restore said premises, County may sell, remove or demolish the same, in event of which sale, removal or demolitj.on Lessee shall reimburse County for any cost or expense thereof in excess of any consideration County as a result of such sale, removal or demolition. Prior to such termination Lessee shall remove at its cost and expense such machinery, appliances or fixtures as are not firmly affixed to said structures, buildings and improvements; should Lessee received by fail to so remove said appliances or fixtures prior to such termination, Lessee shall lose all right, title and interest in and thereto, and County may elect to keep the same upon the premises or to sell, • remove, or demolish the same, in event of which sale, removal or demolition Lessee shall reimburse County for any cost or expense thereof in excess of any consideration sale, removal or demolition. Title to all utility lines, sWitchboards, and all other service facilities constructed transformer vaults received by County as a result of said or installed by Lessee or upon the demised premises shall vest in County upon construction installation. 19. PLACE OF PAYMENT AND FILING. All rentals shall be paid to and all statements and reports herein required shall be filed With Department. Checks, drafts and money orders shall be made payable to the County of Los Angeles. 20. SERVICE OR WRITTEN NOTICE OR PROCESS. or is If Lessee is not a resident of the State of California, an association or partnership Without a member or partner resident of Lessee shall file With said state, or is a foreign corporation, Department a designation of a natural person residing in the County of giving his name, residence, and busi- Los Angeles, State of California, ness address, as the agent of Lessee for the service of written notice or for service of process in any court action between Lessee and County, arising out of or based upon this lease, and the delivery to such agent of written notice or a copy of any process in such action shall constitute a valid service upon Lessee. If for any reason service of such written notice or of such process upon such agent is not possible, then Lessee may be personally served with such written notice or process outside of the State of California and such service shall constitute valid service upon Lessee; and it is further expressly agreed that Lessee is amenable to such process and submits to the jurisdiction of the court so acquired and waives any and all objection and protest thereto. Written notice shall be deemed sufficient if said notice is deposited in the United States mail, postage prepaid, addressed to Lessee at the premises above described or to such other address that Lessee may in writing file with Directorj provided, however, that nothing herein contained shall preclude or render inoperative service of such notice upon the Lessee in the manner prescribed by law. 21. DEFAULT, This lease is made upon the condition that if the rents or other other sums which Lessee herein agrees to pay, or any part thereof, shall be unpaid on the date on which the same shall become due, or if other default be made in any of the terms. agreements. conditions. or covenants herein contained on the part of Lessee. or should Lessee abandon or cease to use the premises for a period of thirty (30) days at anyone time. except when prevented by fire, earthquake, strikes or other calamity beyond its control, then and in such event. at the option of County as eVidenced by resolution of Board. this lease shall be forfeited, and County may exercise all rights of entry and re-entry upon the demised premises and may operate for its own and sole benefit said premises and all improvements thereon. Lessee shall not be considered in default as to any provision of this lease when such default is the result of, or pursuant to, any process, order or decree of any court or regUlatory body of competent jurisdiction, In the event Lessee is in default hereunder in the payment of rent or other sums prOVided to be paid by Lessee, no default with respect thereto shall be declared by the County until after the expiration of ten (10) days written notice to Lessee to cure such default, In the event Lessee shall default in keeping, observing or performing any of the other covenants, conditions, provisions or agreements herein required to be kept, observed or performed by Lessee, County shall give written notice of such default to Lessee and Lessee shall have thirty (30) days after service of said notice in which to cure, remedy and correct said defaUlt, or in which to commence and diligently pursue the performance of the thing or work required to be Should Lessee fail to done to cure, correct and remedy said default, so cure, remedy and correct said default, or commence and diligently pursue such corrective or remedial action within and during said thirty (30) day period, County shall have the right to forfeit this lease as proVided in the first paragraph of this section. •• Notwithstanding any remedy terminate available this lease any of the foregoing, to it for breach nor declare hereunder thereof County shall not exercise not of by Lessee and will because the same to be forfeited on the part notice of Lessee any default County shall or breach have unless and until given a written of such default of trust or defaults to any beneficiary gagee under or trustee under a deed or to any mortor any part the notice to any mortgage notice affecting be sent the demised premises with thereof. the Lessee Said shall simultaneously paragraph. referred mail, to in the preceding postage or each prepaid, of them It shall be sent benefi- by registered ciary County addressed shall as the trustee, or mortgagee from time to time instruct addressed as shown said on or, in the absence of trust of such instructions, After receipt the deed trustee, or mortgage. or mortgagee of said notice, referred have beneficiary (hereinafter of them, to collectively the right and are as "encumbrance power cured, defaults to cure this may (a) holdeI'll), or each the defaults shall shall specified and if all of said defaults force manner: of rental, taxes, sum and effect. Said lease remain in full be cured in the following If said default insurance of money, County be in the payment utility premiums, charges, holder or any other said encumbrance proper may pay the same to thirty-five notice (35) or other payee within days after mailing of the aforesaid holder. of default to to said encumbrance County Lessee County If, after holder any payment the by the encumbrance pays shall the as aforesaid, thereof same or any part refund to County, to promptly holder. said payment encumbrance (b) If said breach graph money (i) (a) above be other than as specified be cured in subparaof and cannot by the payment be cured if as aforesaid, within the default (35) shall thirty-five days after the mailing holder by of the said notice County to encumbrance holder said encumbrance commences • foreclosure by judicial action or trust deed sale of its encumbrance (said 35-day period shall be extended by the time in which encumbrance holder is prevented from commencing foreclosure by any order, judgment or decree of any court or regUlatory body of competent jurisdiction, but such extension shall not extend beyond a period of 100 days from the effective date of said order, judgment or decree); and (ii) said foreClosure action is prosecuted With reasonable diligence; and (iii) within thirty-five (35) days after such fore closure sale the purchaser thereat (whether or not such purchaser is the encumbrance holder) cures, remedies and corrects said default, or commences and diligently pursues the performance of the thing or work required to be done to cure, correct and remedy said default. Notwithstanding any of the foregoing, and in the event County declares the lease forfeited and secures possession under the provisions of this paragraph, the encumbrance holder, within sixty (60) days of such forfeiture and securing of possession, may request and receive a lease covering the premises subject to his encumbrance and running to said encumbrance holder and his successors and assigns. Said lease shall have the same provisions and conditions as this lease, except to the extent that any provisions of this lease are, through the passage of time or for other reasons, obviously inapplicable. Said lease shall have a term that shall commence upon the date of the County's securing possession of the premises demised herein and said lease shall terminate on the termination date of this lease. The County shall deliver possession of the property immediately upon the execution of said new lease. The encumbrance holder shall, however, pay County the amount of ground or holding rentals due under this • lease on and after the date County has secured possession less any net rentals or other income which County may have received on account of said property during the time County may have been in possession of the premises. In addition, the encumbrance holder shall pay any and all rentals unpaid by Lessee under the original lease at the time of forfeiture thereof. However, said encumbrance holder shall be liable only for that proportionate amount of rent attributable to that portion of the demised premises covered by his encumbrance. In addition, said encumbrance holder shall also pay any and all taxes, current or delinquent, that have been levied or assessed against that portion of the demised premises covered by its encumbrance. 22. SUBLEASE, ASSIGNMENTS AND SUCCESSORS. At least thirty (30) days written notice of intention to sublet portions of the demised premises to others shall be given to Director. During said thirty day period, Director shall approve or disapprove said proposed sublease. In the event of disapproval, said proposed The gross receipts of any sublessee under sublease shall not be made. any such sublease shall be included within the definition of "Gross Receipts" as set forth in Section 11. Any and all sublessees shall be subject to and bound by each and all of the terms and conditions of this lease and in particular those pertaining to control of prices pursuant to Section 16. The term "sublease" as used in this paragraph shall include any license, permit, concession, assignment or transfer of any interest in or to said property by Lessee, and the term "sublessee" shall include any licensee, permittee, concessionaire, assignee or transferee of or from Lessee. Lessee may, without prior approval of Director, sublease portions of the demised premises {including, but not limited to, single residential units, boat slips, and dry storage racks) for a period not to exceed one year, for indivi dual nonbusiness, noncommercial uses. Lessee may at any time request approval by the Director of a plan to sublease specific residential units for stated periods in excess of one year. No condominium or co- operative dwelling plan of any kind shall be employed Without the approval of Director. • Lessee fer, mortgage, interest bona may fide execute under may. with the consent grant and of the County. give, assign, Lessee's to a transhypothecate, this lease control of, or encumber estate the leasehold so created, estate, therewith lender on the security of the leasehold in connection and Lessee necessary therefor have the is to any and all instruments to complete and proper be given right such loan and perfect Any such bona fide the security lender shall to such lender. at any time during force (a) and effect: the term of the loan and while this lease in full To do any act or thing prevent all a forfeiture required of Lessee rights shall in order to and of Lessee's So done hereunder such acts or things prevent a forby feiture Lessee. (b) of Lessee's rights hereunder as if done To realize to acquire under lieu on the security and succeed of the leasehold estate and to the interest of Lessee herein by foreclosure of foreclosure to convey. to said or by a deed and thereafter or assignment at such lender's or option title assign, or sublease estate the interest person to leasehold that to any other provided, perform however, said person shall agree terms, Two and be bound by any and all in this security conditions (2) and covenants copies shall date contained lease. devices of any and all be filed With or instruments Director prior to the effective Director prior thereto. proassign, or thereof, notice and Lessee shall give written Except Vided, Lessee of any changes Section either or amendments as in this shall not. 22 specifically directly or grant therein, or license lease hereinbefore give. or indirectly control hypothecate, any interest. portion whole encumber, right transfer, of this lease the whole or privilege premises this or sublet the use or any of the demised of the same in therein shall or in part. Neither nor any interest be assignable, or transferable in proceedings in attachment. • garnishment, or execution against Lessee, or in voluntary or involuntaken by tary proceedings in bankruptcy or insolvency or receivership or against Lessee or by any process of law, and possession of the whole or any part of the demised premises shall not be divested from Lessee in such proceedings or by any process of law, without written consent of County. Any violations of the provisions of this paragraph shall give County the right to terminate this lease immediately and without any of the notices required in Section 21 above. The holder of a trust deed, or any other bona fide lender, shall not be required to cure any default or breach if said holder or lender is unable to secure possession of the property and if it is necessary for him to have possession in order to cure the default or breach. In the event that a period of time is necessary in order for the holder of a trust deed or any other bona fide lender to completely cure a default or breach, then he shall not be in default so long as he exercises diligence in the curing of such default or breach. The holder of a deed of trust or any other bona fide lender shall have all of the rights with respect to the demised premises as set forth in the deed of trust or mortgage or other lending document approved by the County as herein set forth, including the right to commence an action against the Lessee for the appointment of a receiver and to obtain possession of the demised premises under and in accordance With the terms of said deed of trust, mortgage or other lending instrument. Each and all of the provislons, agreements, terms, covenants and condltlons herein contained to be performed, fulfilled, observed and kept shall be blnding upon the heirs, executors, administrators, successors and assigns of the respective parties hereto, and all rights, privileges and benefits arising under this lease and in favor of either party shall be available in favor of the heirs, executors, administrators, successors and assigns thereof respectively; prOVided, that no assignment or subletting by or through Lessee in violation of the provisions of this lease shall vest any rights in any such assignment or sublease. ·~ • or more of the 23. LIENS. At least ten (10) days prior to commencement of construction, Lessee shall furnish County with written notice of intention to commence construction so that County may post upon premises hereby demised a notice of non-responsibility. 24. WAIVER OF CONDITIONS OR COVENANTS. Any waiver by County of any breach of anyone covenants, conditions, terms and agreements of this lease shall not be construed to be a waiver of any subsequent or other breach of the same or of any other covenant, condition) term or agreement of this lease) nor shall failure on the part of County to require exact full and com- plete compliance with any of the covenants, conditions) terms or agreements of this lease be construed as in any manner changing the terms hereof or estopping County from enforcing the full provisions hereof, nor shall the terms of this lease be changed or altered in any manner whatsoever other than by written agreement of County and Lessee. No delay, failure, or omission of County to re-enter the demised premises or to exercise any right, power, privilege or option, arising from any default, nor any subsequent acceptance of rent then or thereafter accrued shall impair any such right, power, privilege or option or to be construed as a waiver of or acquiescence relinquishment of any right. in such default or as a (No notice to Lessee shall be required to restore or revive "time of the essence" after the waiver by County of any defaUlt.) No option, right, power, remedy, or privilege of County shall be construed as being exhausted by the exercise thereof in one or more instances. The rights, powers, options and remedies given County by this agreement 25. shall be cumulative. PROPERTY INSURANCE. Throughout the term of this lease and during Lessee's occupancy of the demised premises, Lessee, at its own cost and expense, shall insure against loss of or damage to all buildings, structures, eqUipment and improvements thereon, resulting from fire, lightening, vanda- lism, malicious mischief, and those risks ordinarily defined in "extended coverage." ·." .~ • insured; upon the occurrence of any loss the Such insurance shall be in an amount equal to 90% of the full replacement value of said bUildings) structures) equipment and improvements) and shall be placed and maintained with such insurance company or companies and in such form as shall be satisfactory to County. All such insurance policies) along with their endorsements, shall name County assn proceeds of such insurance shall be held by County in trust for the named insureds as their interests appear. In the event of such loss Lessee shall be obligated to rebuild or replace the destroyed or damaged bUildings, structures, equipment and improvements to the full satisfaction of County. Said obligation to rebuild or replace is not County shall reimburse dependent upon the eXistence of insurance. Lessee for said rebuilding or replacement out of and to the full extent of the proceeds of said insurance as payments are required for said purposes. replacement Any surplus or proceeds after said rebuilding or shall be distributed to the named insureds as their interests appear. Duplicate policy or policies evidencing such insurance coverage, in such form as shall be acceptable to County, shall be filed with Director prior to the commencement of construction of such improve- ments, and such policy or policies shall prOVide that such insurance coverage will not be cancelled or reduced without at least thirty (30) days prior written notice to Director. At least thirty (30) days prior to the expiration of any such policy, a certificate shoWing that such insurance coverage has been renewed shall be filed with Director. 26. INDEMNITY CLAUSE AND CASUALTY INSURANCE. Lessee shall at all times relieve, indemnify, protect and save harmless County and its Boards, offlcers, agents, and employees from any and all claims and liability, including expenses incurred in defending against the same, for the death of or injury to persons or damage to property, including owned or controlled by or in the possession of County, any of its officers, agents or employees, that may in whole or in part arise from or be caused by (a) the operation, maintenance, use or occupation of the herein demised premises by •• Lessee, officers, observe (b) the acts, employees and abide omissions or permittees, by any of the terms rule any applicable Lessee law, ordinance, indemnify, officers, to so relieve, each of its Boards, periods officers, termination Lessee of this injury Hundred Thousand and Fifty damage; members lease, of occupancy employees of this .. or negligence • of Lessee, its agents, to or of and any of Lessee of this or conditions lease the obligation County, during and save harmless shall continue its agents, or other or (c) the failure or regulation; protect and employees, or of holding or permittees, lease. over by Lessee, beyond the expiration shall maintain comprehensive damage in full general liability force and effect during with the term bodily liability limits insurance and property Thousand Dollars Thousand of not less than One Hundred injury Dollars ($100,000) per person and Three ($300,000) Dollars agrees per occurrence ($50,000) of death or bodily of property per occurrence its Board and Lessee thereof, shall policy that County, of SuperVisors agents such and and and County's be named and Board's officers, insureds employees, insurance as additional under liability or policies. policy within eVidencing ten such insurance coverage shall be A duplicate filed lease with Director (10) days entry of the execution the premises such insurance thirty of this herein coverage (30) days to by County and and prior to any shall upon that demised, shall prior said policy prOVide not be cancelled written notice of any has been or reduced to Director. such policy, renewed Without at least thirty shOWing shall At least a policy (30) days prior that the expiration ance coverage such insurwith Director. or extended insurance be filed The amounts shall manner be subject of casualty by this Section required to renegotiation of rent at the same time and in the same as the amounts hereunder. 27. WORKMAN'S shall COMPENSATION INSURANCE. during the term of this lease, Lessee in an amount Compensation maintain in force and With Insurance. coverage satisfactory to Director, Workman's A certificate eVidencing such insurance • coverage herein shall demised. be filed with Director prior to entry upon the premises 28. FAILURE TO PROCURE INSURANCE. of failure on the part County of Lessee may, to procure or renew procure In case the herein or renew therewith to County required insurance, at its discretion, such insurance and all monies upon demand. and pay any and all premiums so paid by County shall in connection by Lessee. be repaid, 29. Lessee assessments, State, in this TAXES AND ASSESSMENTS. agrees to pay before which delinquency at any all lawful taxes, by the fees or charges or any time may be levied County lease tax or assessment right levying which body upon any interest in or to by reason or any possessory covered hereby Lessee may have thereon the premises of its use assessments, ances, or to the improvements or otherwise, or occupancy thereof as well as all taxes, fixtures, appli- fees and charges and property on goods, owned merchandise, equipment by it in, on or about said premises. 30. ACCOUNTING RECORDS. to determine the amount Lessee months of and provide at all times keep, true, for the payment dUl'ing the term or cause accurate to be and to In order of the rental of this kept, lease, due hereunder, and for twelve shall thereafter, locally, records to the satisfaction and double-entry relative of Director, books complete of account, such records show all transactions supported sales by documents to the conduct entry of operations, and to be limit to, of original tapes, such as, but without invoices. registers slips, All cash register shall and purchase by means sales be recorded of each of cash which a publicly customer's Said cash display receipt the amount or certify shall Which sale and automatically recorded issue the amount cases in a sales sales slip. totals and registers counters case, in all have locked-in transaction not, are constantly accumulating thereto, and and which a tape canlocated are in either be reset, on which and in addition numbers Within the register Beginning of daily transaction sales details imprinted. a matter and ending cash register readings shall be made record. •• No later render to County than the 15th day of each a detailed month, statement together showing with the preceding County calendar as elsewhere of amount herein provided, and shall remittance so shown to be due. hereinabove Books or made of account and records • calendar gross month, Lessee shall receipts during to the amount accompany payable same with required shall be kept as premises shall or at such other have the right location available at the demised is agreeable reasonable restriction the monthly demised to County, times and County at any and all without and of of the to examine and audit said books and records for the purpose statements of determining receipts the accuracy derived thereof of gross from occupancy premises. County may require the installation Which YEAR. year" as used herein months, shall mean a period year lease the of any additional it deems accountnecessary. ing methods 31. or machines ACCOUNTING in its sole discretion The term of twelve commencing and ending beginning period "accounting (12) consecutive concurrently calendar the first accounting with the beginning of the term of this calendar month year" on the last day of the twelfth of said term; thereafter the following shall "accounting months. be each of twelve 32. COST (12) consecutive OF AUDIT. Lessee does calendar In the event records ritorial necessary location and books limits not make available premises its original or within agrees the ter- of account at the leased of the County incurred of Los Angeles, Lessee to pay all at the expenses where by County and books in conducting of account any audit said records BY COUNTY. are maintained. 33. ENTRY and County enter upon its duly authorized premises representatives or agents times may duror said demised of this at any and all reasonable of determining ing the term not Lessee any other lease for the purpose the terms whether is complying purpose with and conditions of County. hereof, or for incidental to the rights •• 34. RIGHT OF ENTRY AS AGENT. re-entry upon the demised premises, .. In any and all cases in which provision is made herein for termination of this lease, or for exercise by County of right of entry or or in case of abandonment or vaca- tion of the premises by Lessee, Lessee hereby irrevocably appoints County the agent of Lessee to enter upon the demised premises and remove any and all persons and property whatsoever situated upon the demised premises and place all or any portion of said property, except such property as may be forfeited to County, in storage for the account of and at the expense of Lessee. In such case County may relet the premises upon such terms as County may deem fit, and if sufficient sum shall not be thus realized, after paying the expenses of such reletting and collecting, to satisfy the rent and other sums herein reserved to be paid, Lessee agrees to pay any deficiency, collecting. Lessee hereby exempts and agrees to save harmless County from any cost, loss or damage arising out of or caused by any such entry or re-entry upon the demised premises and the removal of persons and property and storage of such property by County and its agents. and to pay the expenses of such reletting and 35. MAINTENANCE OF PREMISES. Lessee shall give prompt notice to County of any fire or damage that may occur from any cause Whatsoever. Lessee shall, to the satis- faction of Director, keep and maintain the leased premises and all improvements of any kind which may be erected, installed or made thereon by Lessee in good and substantial repair and condition, including painting, and shall make all necessary repairs and alterations thereto. County shall not at any time be required to make any improvements Or repairs Whatsoever discretion except that County may at its sole filling, grading, slope protect- do any necessary dredging, ing, construction facilities, of sea walls, or repair of water system, sewer roads, or other County facilities in order to protect the premises. leased premises or the adjoining Lessee expressly agrees to maintain the leasehold in a safe, clean, wholesome and sanitary condition, to the complete satisfaction of Director and in compliance With all applicable laws. Lessee fur- ther agrees to provide proper containers for trash and garbage and to keep the demised premises, both land and water areas thereof, free and clear of rubbish and litter. County shall have the right to enter upon and inspect the said premises at any time for cleanliness and safety. 36. REPAIRS BY COUNTY. Lessee shall from time to time make any and all necessary repairs to or replacement of any equipment, structure, structures, or other physical improvements, upon the demised premises, in order to comply with any and all regulations, of California, laws or ordinances of the state County of Los Angeles or other governmental body, which may be applicable. If Lessee fails to make any such repairs or replacements as required, County may notify Lessee of said default in writing, and should Lessee fail to cure said default and make said repairs or replacements within a reasonable time as established by County, County may make such repairs or replacements and the cost thereof, including, but not limited to, the cost of labor, materials and equipment, shall be charged against Lessee and shall become a part of the rental for the period next following the period of default, or the same may be prorated over a period of time to be determined by the County. 37. SPECIAL SERVICES. In addition to the rental charges as herein provided, Lessee shall pay all service charges for furnishing water, power, sewage disposal, light, telephone service, garbage and trash collection and all other utilities, to said premises. 38. SIGNS, AWNINGS, UTILITY LINES, AERIALS, AND ANTENNAE. No signs or awnings shall be erected or maintained upon the demised premises (other than inSide any buildings constructed by Lessee or sublessee), except such signs as show the business or profession of Lessee or sublessee. All such signs must be approved by Director. •• All utility tioned conform treatment lines, and specifically in Section to the minimum mentioned HAZARDOUS standards in Section , , the ones for the utilities Aerials and antennae menshall 6, shall be underground. of construction and architectural 5. 39. SUBSTANCES. or material Which shall be kept, stored or or No goods, merchandise, sold in or on said demised hazardous; shall said and no offensive on therein will premises are in any way explosive trade, business shall or dangerous or thereon, or occupation be done on a be carried premises, and nothing which cause an increase in the rate upon of or cause suspension or cancellation of the insurance said or other premises and the improvements No machinery leased ments premises thereon, thereon. or apparatus will shall be used injure or operated on said or improvethereon; which in any way or other said premises or adjacent premises, Section or improvements prOVided, Lessee however, that nothing keeping equipment on its in this or using 39 shall preclude said premises such or from bringing, supplies, in carrying in all usual on or about materials, customary business and machinery said business, as are appropriate or from carrying on its respects. or burning, without prior gasoline written or other consent fuel storage Open is expressly 40. flame welding prohibited NUISANCE. shall of Director. Lessee not permit and the property hereby demised to be used any for any unlawful act ings of omission purpose shall not perform, upon which or about would permit or suffer or commission thereon said property or any buildor a of or construction result in a nuisance States, violation California, hereafter 41. of the laws and ordinances or the County in force RULES of the United State of Los Angeles, as the same may be now or and effect. AND REGULATIONS. by all applicable of the County body, rules, regulations, resoluof Lessee tions, shall abide ordinances, or other statutes of Los Angeles, applicable, the State respecting California governmental where , , the use, operation, maintenance, or repair or improvement of the leased premises and equipment, and shall pay for any and all licenses required in connection With the use, operation, maintenance, ment of the leased premises. 42. RESERVATIONS. repair or improve- Lessee expressly agrees that this lease and all rights hereunder shall be subject to all prior exceptions, reservations, licenses, easements, and rights-of-way leases, of record now existing in, to, over or affecting the leased premises for any purpose whatsoever. Lessee expressly agrees that this lease and all rights hereunder shall be subject to conditions, covenants, restrictions, rightsOf-way and easements as shown on Los Angeles County Assessor's Map No. 88, recorded in Book 1, pages 53 to 70 inclusive of Assessor's Maps, in the office of the Recorder of the County of Los Angeles, including but not limited to the right of the County of Los Angeles to install, construct, maintain, service and operate sanitary sewers, . fire access roads, storm drains, drainage facilities, electric power lines, telephone lines and access and harbor utility easements, together With the right of the County to convey such easements and transfer such rights to others. 43. EMINENT DOMAIN. If the whole or any substantial part of the premises hereby leased shall be taken by any paramount public authority under the power of eminent domain then the term of this lease shall cease as to the part so taken from the day the possession of that part shall be taken for any public purpose, and from that day Lessee shall have the right to either cancel this lease or to continue in the possession of the remainder of the premises under the term herein prOVided, except that the square foot rental shall be reduced in proportion to the amount of the premises taken. All damages awarded for such taking shall belong to and be the property of County; provided, however, that County shall not be entitled to any portion of the award made for loss of business installation or structures, buildings, or other improvements belonging to " Lessee immediately prior to the taking possession by the condemning authority. 44. There on or from the Bond FREE USE OF FACILITIES. shall be no free use of services which would or facilities provided said premises in any way violate Section 506 of Resolution QUIET incorporated ENJOYMENT. performing by reference in this agreement. 45. Lessee, the quiet upon its obligations hereunder, shall have and undisturbed of this possession of the demised premises through- out the term 46. lease. BOND RESOLUTION. is hereby made Code to Chapter 14) Part 2, Division 2, Reference Title 3, of the Government to as the Act, and providing Bonds of the State certain of California, resolution sometimes referred and to that of the Board of Marina the terms by said September by 15, authorizing for the issuance of $13,000,000 and providing as adopted ordered del Rey Revenue and conditions Board 1959, of 1959 of said County of said bonds for the issuance on September and November 8, 1959, including 10, 1959, which amendments are hereby incorporated reference in full as part TIME. of this agreement. 47. Time restrictions, shall is of the essence conditions of this lease and applies to all times, this lease and limitations contained herein; bind Lessee and its sublessees, representatives, assigns, successors, heirs, administrators or legal as the case may be. FINANCING where REQUIREMENTS. is subby the the and 48. Upon FEDERAL HOUSING ADMINISTRATION this deed lease, any default under the leasehold or held ject to a mortgage Federal Federal Housing Housing or trust insured, shall reinsured COmmissioner, Commissioner, County notice give mortgagee and in writing, successors and the mortgagee and assigns, the Federal have notice declares Housing Commissioner, time within their shall of such the right at any six (6) months from the date to correct the lease the default forfeited and reinstate and secures the lease, or if County possession of the leased • premises, (6) months the mortgagee or the Federal and Housing Commissioner within of such forfeiture a new securing of possession may elect request and receive their lease running to mortgagee having or Federal Commissioner, and conditions term of this bility under, upon successors lease and assigns, and having of this lease, a term equal Housing to the remaining Commissioner's except that the Federal not extend for ground the County rental shall beyond his occupancy to deliver possession of the property and the mortgagee the amount or other been immediately or Federal rentals County of the " six to Housing the same provisions lia- there- the execution Commissioner this lease of such new lease, to pay to County Housing under have of ground which due may less any net rentals the time income received during it may have in possession property. County required may accept in lieu the bond with of the performance required and payment Housing financed with as bonds by this lease, by the Federal of a project Commissioner in connection loan, construction finds an FHA insured if County such bonds to be satisfactory on such bond. in this to form and amount and County is made a co-obligee In lieu of the requirements County may accept hazard insurance for hazard as required insurance lease, by the Federal are satisfactory Housing to County, Commissioner, and the County interests if the terms is included of such insurance as an insured under the policy as its may appear. 49. LESSEE'S WAIVER. hereby acknowledges that he has been advised dredge ground that the fill to Lessee demised materials marginal premises placed uses may consist over of hydraulic marshy fill or other lOW-lying, originally devoted including, trash but not necessarily and low production limited to, agriculture, Lessee the may not of this the conon file be oil refineries, accepts dumps oil wells. the premises there known in their present defects condition notWithstanding which fact that actually lease tents may be certain to either hereby party in the premises at the time of the execution that he is familiar plans and and Lessee acknowledges engineering With of any and all maps, soil reports in the Department of Small Craft Harbors • .' -' " ", of County and relating to the of examin- premises hereby leased and has been afforded an opportunity ing same. Lessee acknowledges cause additional engineering that the condition and construction of the land may costs above and beyond those contemplated execution by either party to this lease at the time of the thereof and Lessee agrees that it will make no demands upon alterations or any kind of labor that may of them. In addition, any and all County for any construction, be necessitated by said conditions or anyone Lessee hereby waives, withdraws, releases and relinquishes claims, suits, causes of action, rights of recission, or charges against County, its officers, agents or employees which Lessee now has or may have or assert in the future which are based upon any defects in the physical condition and thereunder, regardless of the demised premises and the soil thereon of whether or not said conditions were known at the time of the execution of this instrument. .. IN WITNESS visors, Board and attested '. ., WHEREOF, County has, by order of its Board of Superby the Chairman of said caused this lease to be subscribed by the Clerk thereof, and the Lessee has executed written. , 19_ the same the day and year first hereinabove Dated APPROVED BY BOARD OF SUPERVISORS H;,~ James S. Mize, AUG 30 1966 Acting Clerk of the Board By JAMeS s. MIZE ACTING 6i/5Iff Ii TIE"'S81iiiG, Clerk of the Board of Supervisors By ~ /.(!.~_-..-_.,.Deputy APPROVED AS TO FORM: HAROLD W. KENNEDY, County Counsel By ---tI~~TH'fE=.~C;:;:O~U",-N~T;:Y:-:.-::0:3F_..:::tl:£>0---rc~N'l-G,:,,"E_L....,E;-S ... __ Chairman, Board pf Supervisors STATE OF CALIFORNIA} County of Los Angltle,Q . aa, On this ~ day SUldrv!sors of the County of Los Angeles, personBlly appeared _../": ~ __ .___ ofA-t;;;IL"',f; 1 A. D., 19~, State of California, , before me JAMES S. MIZE, Clerk of the Board of residing therein, duly commissioned and sworn, BURTON W. CHACE , known to nie to be the Chairman of the Board of Supervisors the withIn instrument on behalf of the County therein the same. IN WITNESS WHEREOF, I and year of this certificate JAMES:.z BY' of the County of Los Angeles and the person who executed named, and acknowledged to me that such County executed have hereunto set my hand and affixed my official first above written. seal the day Clerk of the Boa. d .. of s.uperVisors J .a..•.. __ ., OS 114 U~_ tJ' Deputy

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