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SECTION 4 GENERAL PROVISIONS 1. GENERAL These provisions are applicable to all leases. permits. rights-or- way, easements, or licenses or other interests in real property con- veyed by the State Lands Commission. 2. CONSIDERATION (a) Categorle. (1) Rental: Lessee shall pay the annual rental as stated in Section 1 or 2 to Lessor without deduction, delay or offset, on or before the beginning date of this Lease and on or before each anni- versary of its beginning date during each year of the Lease term. (2) Royalty or other consideration: Lessee shall pay a royalty or other consideration in the amount. method and manner as specified in Section 1 or 2. . (3) Non-Monetary Consideration: If a monetary rental, royalty, or other consideration is not specified in Section 1 or 2, consideration to Lessor for this Lease shall be the public use, benefit, health or safety, as appropriate. however Lessor shall have the right to review such consideration at any time and to set a monetary rental if the State Lands Commission. at its sole discretion, deter- mines that such action is in the best interest of the State. Lessee shall notify Lessor within ten (10) days in the event that the public is charged any direct or indirect fee for use and enjoyment of the Lease Premises. (b). Modification Lessor may modify the amount or rate of consideration effec- tive on each fifth anniversary of the beginning date of this Lease. Should Lessor fail to exercise such right effective on any fifth anniversary it may do so effective on anyone (1) ofthe next four (4) anniversaries following such fifth anniversary, without prejudice to its right to effect such modification on the next or any succeed- ing fifth anniversary. Any modification of the amount or rate of consideration made pursuant to this paragraph shall conform to Title 2, Division 3 of the California Administrative Code and no such modification shall become effective unless Lessee is given written notice at least sixty (60) days prior to the effective date. (c) Penalty and Interest Any installments of rental, royalty, or other consideration accruing under this Lease not paid when due shall be subjecttoa penalty and shall bear interest as specified in Public Resources Code Section 6224 and Section 2. 3. BOUNDARIES This Lease is not intended to establish the State's boundaries and is made without prejudice to either party regarding any boundary claims which may be asserted presently or in the future. 4. LAND USE (a) General: .. Lessee shall use the Lease Premises only for the purpose or purposes stated in Section 1 or 2 and only for the operation and maintenance of the improvements authorized in Section 1 or 2. Lessee shall commence use of the Lease Premises within ninety (90) days of the beginning date of this lease. Thereafter Lessee's discontinuance of such use for a period of ninety (90) days shall be conclusively presumed to be an abandonment. (b) Repair. and Maintenance: Lessee shall, at its own expense, keep and maintain the Lease Premises and all improvements in good order and repair and safe condition. (c) Addition.. Aheratlons and Removal: (1) Additions - No improvements other than those ex- pressly authorized in Section 1 or 2 of this Lease shall be con- structed by the Lessee on the Lease Premises without the prior written consent of Lessor. Lessee shall notify Lessor within ten (10) days after commencing the construction of authorized improvements and within sixty (60) days after completing them. (2) Alteration or Removal - Except as provided under this Lease, no alteration or removal of existing improvements on or natural features of the Lease Premises shall be undertaken without the prior written consent of Lessor. (d) Con.ervation: Lessee shall practice conservation of water and other natural resources and shall prevent pollution and harm to the environ- ment in or on the Lease Premises. \, (e) Enjoyment: Nothing in this Lease shall preclude Lessee from excluding persons from the Lease Premises when their presence or activity constitute a material interference with Lessee's use and enjoy- ment of the Lease Premises as provided under this Lease. (f) Discrimination: Lessee in its use of the Lease Premises shall not discriminate against any person or class of persons on the basis of race, color, ereed, national origin, sex, age, or phYSical handicap. (g) Residential U.e: Unless otherwise allowed under this Lease, improvements on the Lease Premises shall not be used as a residence~)f for the purpose of mooring a floating residence. 6. RESERVATIONS. ENCUMBRANCES AND RIGHTS-Of-WAY (a) Reservations: (1) Lessor expressly reserves all natural resources in or on the Lease Premises, including but not limited to oil, coal, natural gas and other hydrocarbons, minerals, aggregates, timber and geothermal resources, as well as the right to grant leases in and over the Lease Premises for the extraction of such natural resources, however such leasing shall be neither inconsistent nor incompatible with the rights or privileges of Lessee under this Lease. (2) Lessor expressly reserves a right to go on the Lease Premises and all improvements for any purpose associated with this Lease or for carrying out any function required by law. or the rules, regulations or management policies of the State Lands Commission. Lessor shall have a right of reason- able access to the Lease Premises across Lessee owned or occupied lands adjacent to the Lease Premises for any pur- pose associated with this Lease. (3) Lessor expressly reserves to the public an easement for convenient access across the Lease Premises to other State-owned lands located near or adjacent to the Lease Premises and a right of reasonable passage across and along any right-of-way granted by this Lease, however, such ease- ment or right-of-way shall be neither inconsistent nor in- compatible with the rights or privileges of Lessee under this Lease. (4) Lessor expressly reserves the right to lease, convey, or encumber the Lease Premises, in whole or in part, during the lease term for any purpose not inconsistent or incompatible with the rights or privileges of Lessee under this Lease. (b) Encumbrance.: This Lease may be subject to pre-existing contracts, leases~ licenses, easements, encumbrances and claims and it is made without warranty by Lessor of title, condition or fitness of the land for the stated or intended use. I=nrm ~1 1 ~ /7/R.4\