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<br />and enjoyment of the Lease Premises as provided under this
<br />Lease.
<br />
<br />(h) Discrimination
<br />Lessee in its use of the Lease Premises shall not
<br />discriminate against any person or class of persons on the
<br />basis ofrace, color, creed, religion, national origin, sex, age,
<br />or handicap.
<br />
<br />(i) Residential Use
<br />No portion of the Lease Premises shall be used as a
<br />location for a residence or for the purpose of mooring a
<br />structure which is used as a residence. For purposes of this
<br />Lease, a residence or floating residence includes but is not
<br />limited to boats, barges, houseboats, trailers, cabins or
<br />combinations of such facilities or other such structures wlùch
<br />provide overnight accommodations to the Lessee or others.
<br />
<br />5.
<br />
<br />RESERVATIONS, ENCUMBRANCES AND RIGHTS-
<br />OF-WAY
<br />(a) Reservations
<br />(I) Lessor expressly reserves all natural resources in or
<br />on the Lease Premises, including but not limited to
<br />timber and minerals as defined under Public
<br />Resources Code Sections 6401 and 6407, as well as
<br />the right to grant leases in and over the Lease
<br />Premises for the extraction of such natural
<br />resources; however, such leasing shall be neither
<br />inconsistent nor incompatible with the rights or
<br />privileges of Lessee under this Lease.
<br />
<br />(2) Lessor expressly reserves a right to go on the Lease
<br />Premises and all improvements for any purpose
<br />associated with this Lease or for carrying out any
<br />function required by law, or the rules, regulations or
<br />management policies of the State Lands
<br />Commission. Lessor shall have a right of
<br />reasonable access to the Lease Premises across
<br />Lessee owned or occupied lands adjacent to the
<br />Lease Premises for any purpose associated with this
<br />Lease.
<br />
<br />(3) Lessor expressly reserves to the public an easement
<br />for convenient access across the Lease Premises to
<br />other State-owned lands located near or adjacent to
<br />the Lease Premises and a right of reasonable
<br />passage across and along any right-of-way granted
<br />by this Lease; however, such easement or right-of-
<br />way shall be neither inconsistent nor incompatible
<br />with the rights or privileges of Lessee under this
<br />Lease.
<br />
<br />(4) Lessor expressly reserves the right to lease, convey,
<br />or encumber the Lease Premises, in whole or in
<br />part, during the Lease term for any purpose not
<br />inconsistent or incompatible with the rights or
<br />privileges of Lessee under this Lease.
<br />
<br />Page 2
<br />
<br />(b) Encumbrances
<br />This Lease may be subject to pre-existing contracts,
<br />leases, licenses, easements, encumbrances and claims
<br />and is made without warranty by Lessor of title,
<br />condition or fitness of the land for the stated or intended
<br />purpose.
<br />
<br />6.
<br />
<br />RULES, REGULATIONS AND TAXES
<br />(a) Lessee shall comply with and be bound by all presently
<br />existing or subsequently enacted rules, regulations, statutes or
<br />ordinances of the State Lands Commission or any other
<br />governmental agency or entity having lawful authority and
<br />jurisdiction.
<br />
<br />(b) Lessee understands and agrees that a necessary condition
<br />for the granting and continued existence of this Lease is that
<br />Lessee obtain and maintain all permits or other entitlements.
<br />
<br />(c) Lessee accepts responsibility for and agrees to pay any
<br />and all possessory interest taxes, assessments. user fees or
<br />service charges imposed on or associated with the leasehold
<br />interest, improvements or the Lease Premises, and such
<br />payment shall not reduce rental due Lessor under this Lease
<br />and Lessor shall have no liability for such payment.
<br />
<br />7.
<br />
<br />INDEMNITY
<br />(a) Lessor shall not be liable and Lessee shall indemnify,
<br />hold harmless and, at the option of Lessor, defend Lessor, its
<br />officers, agents, and employees against and for any and all
<br />liability, claims, damages or injuries of any kind and from any
<br />cause, arising out of or connected in any way with the
<br />issuance, enjoyment or breach of this Lease or Lessee's use
<br />of the Lease Premises except for any such liability, claims,
<br />damage or injury solely caused by the negligence of Lessor,
<br />its officers, agents and employees.
<br />
<br />(b) Lessee shall notify Lessor immediately in case of any
<br />accident, injury or casualty on the Lease Premises.
<br />
<br />8.
<br />
<br />INSURANCE
<br />(a) Lessee shall obtain and maintain in full force and effect
<br />during the term of this Lease comprehensive general liability
<br />insurance and property damage insurance, with such coverage
<br />and limits as may be reasonably requested by Lessor from
<br />time to time, but in no event for less than the sum(s) specified,
<br />insuring Lessee and Lessor against any and all claims or
<br />liability arising out of the ownership, use, occupancy,
<br />condition or maintenance of the Lease Premises and all
<br />improvements.
<br />
<br />(b) The insurance policy or policies shall name the State of
<br />California, its officers, employees and volunteers as insureds
<br />as to the Lease Premises and shall identify the Lease by its
<br />assigned number. Lessee shall provide Lessor with a
<br />certificate of such insurance and shall keep such certificate
<br />current. The policy (or endorsement) must provide that the
<br />insurer will not cancel the insured's coverage without thirty
<br />(30) days prior written notice to Lessor. Lessor will not be
<br />responsible for any premiums or other assessments on the
<br />
<br />Form 51.15 (Rev. 4/96)
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