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<br />Ic) Rights-of-Way
<br />If this Lease is for a right-of-way covering one or more pipe-
<br />lines or conduits, the lease Premises include only land actually
<br />underlying the pipelines or conduits, and lessor hereby grants to
<br />lessee a non-exclusive right to go onto the lands adjacent to the
<br />lease Premises as is reasonable and necessary for installation,
<br />inspection and maintenance of the pipelines or conduits.
<br />
<br />6. RULES, REGULATIONS AND TAXES
<br />la) Lessor and Lessee shall comply with and be bound by all
<br />presently existing or subsequently enacted rules, regulations,
<br />statutes or ordinances of the State Lands Commission or any
<br />other governmental agency or entity having lawful authority and
<br />jurisdiction.
<br />
<br />Ib) Lessee recognizes and understands in accepting this Lease
<br />that it may be liable for a possessory interest tax imposed by a city
<br />or county on its leasehold interest and that its payment of such
<br />a tax shall not reduce the amount of consideration due Lessor
<br />under this Lease and that Lessor shall have no liability for the
<br />payment of such a tax.
<br />
<br />7. INDEMNITY
<br />la) Lessor shall not be liable and Lessee shall indemnify, hold
<br />harmless and, at the option of Lessor, defend Lessor, its officers,
<br />agents, and employees against and for any and all liability, claims,
<br />damages or injuries of any kind and from any cause, occurring on
<br />the Lease Premises or improvements, or arising out of or con-
<br />nected in any way with the issuance of this Lease.
<br />
<br />(b) Lessee shall give prompt notice to Lessor in case of any
<br />accident, injury or casualty on the Lease Premises.
<br />
<br />8. LIABILITY INSURANCE
<br />(a) If so specified in Section 1 or 2, Lessee shall obtain at its
<br />own expense and keep in full force and effect during the Lease
<br />term with an insurance company acceptable to Lessor compre-
<br />hensi~e liability insurance, for specified categories and amounts,
<br />insuring Lessee and Lessor against any and all claims or liability
<br />arising out of the ownership, use, occupancy, condition or main-
<br />tenance of the Lease Premises and all improvements.
<br />
<br />Ibl The insurance policy or policies shall name the State as an
<br />additional insured or co-insured party as to the Lease Premises
<br />and shall identify the Lease by its assigned number. Lessee shall
<br />provide Lessor with a certificate of such insurance and shall
<br />keep such certificate current.
<br />
<br />(c) The liability insurance coverage specified in this Lease shall be
<br />in effect at all times during the Lease term and subsequently
<br />until all of the Lease Premises have been either accepted as im-
<br />proved by Lessor or restored pursuant to Paragraph 13.
<br />
<br />9~ SURETY BOND
<br />(a) If so specified in Section 1, Lessee shall provide a surety bond
<br />or other security device acceptable to Lessor, for the specified
<br />amount, and naming the State of California as the assured, to
<br />guarantee to Lessor the faithful observance and performance
<br />by Lessee of all of the terms, covenants and conditions of this
<br />Lease.
<br />
<br />(b) Lessor may increase the amount of the surety bond or other
<br />security device to cover any additionally authorized improve-
<br />ments, alterations or purposes and any modification of
<br />consideration.
<br />
<br />(c) The surety bond or other security device shall be maintained
<br />in full force and effect at all times during the Lease term and sub-
<br />sequently until all of the Lease Premises have been either
<br />accepted as improved by Lessor or restored pursuant to Para-
<br />graph 13.
<br />
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<br />10. ASSIGNMENT, ENCUMBRANCING OR SUBlEmNG
<br />la) Lessee shall not either voluntarily or by operation of law,
<br />assign, transfer, mortgage, pledge, hypothecate or encumber this
<br />Lease and shall not sublet the Lease Premises, in whole or in part,
<br />or allow any person other than the Lessee's employees, agents,
<br />servants and invitees to occupy or use all or any portion of the
<br />Lease Premises without the prior written consent of Lessor.
<br />
<br />(b) This Lease shall be appurtenant to littoral or riparian land
<br />and any ownership interest or use rights of Lessee in such lands
<br />and it shall not be severed from such rights or interests without
<br />the prior written consent of Lessor.
<br />
<br />..
<br />
<br />11. DEFAULT AND REMEDIES
<br />(a) Default:
<br />The occurrence of anyone or more of the following events
<br />shall constitute a default or breach of this Lease by Lessee:
<br />
<br />11) Lessee's failure to make any payment of rental, royalty,
<br />or other conSideration as required under this Lease.
<br />
<br />12) Lessee's failure to obtain or maintain liability insurance
<br />or a surety bond or other security device as required under
<br />this Lease.
<br />
<br />13) Lessee's vacation or abandonment of the Lease
<br />Premises during the Lease term.
<br />
<br />14) Lessee's failure to observe or perform any other term,
<br />covenant or condition of this Lease to be observed or per-
<br />formed by the Lessee when such failure shall continue for a
<br />period of sixty 160) days after Lessor's giving written notice;
<br />however, if the nature of Lessee's default or breach is such
<br />that more than sixty 160) days are reasonably required for its
<br />cure, then Lessee shall not be deemed to be in default or
<br />breach if Lessee commences such cure within such sixty 160)
<br />day period and diligently proceeds with such cure to
<br />completion.
<br />
<br />Ib) Remedies:
<br />In the event of a default or breach by Lessee and Lessee's
<br />failure to cure such default or breach, Lessor may at anytime and
<br />with or without notice do anyone or more of the follOWing:
<br />
<br />(1) Re-enter the Lease Premises, remove all persons and
<br />property, and respossess and enjoy such premises.
<br />
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<br />12) Terminate this Lease and Lessee's right of possession
<br />, of the Lease Premises. Such termination shall be effective
<br />upon Lessor's giving written notice and upon receipt of such
<br />notice Lessee shall immediately surrender possession of the
<br />Lease Premises to lessor.
<br />
<br />13) Maintain this lease in full force and effect and recover
<br />any rental, royalty, or other consideration as they become due
<br />without terminating Lessee's right of possession regardless
<br />of whether Lessee shall have abandoned the Lease
<br />Premises.
<br />
<br />14) Exercise any other right or remedy which Lessor may
<br />have at law or in equity.
<br />
<br />12. LESSEE'S TERMINATION
<br />Lessee may terminate this Lease for any reason upon giving
<br />Lessor at least sixty 160) days prior written notice. Lessee agrees that
<br />on the effective date of termination it shall responsibly leave and
<br />surrender the Lease Premises to Lessor in a state of good order,
<br />condition, repair, and restoration as provided under Paragraphs 4(b)
<br />and 13. The exercise of such right of termination shall not release
<br />Lessee from liability for any unpaid but accrued rental, royalty or other
<br />consideration which may be due under this Lease or from any other
<br />obligations still applicable under the Lease. No portion of any rental
<br />paid by Lessee in advance shall be refunded.
<br />
<br />J,
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