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SECTION 4
<br />GENERAL PROVISIONS
<br />1. GENERAL
<br />These provisions are applicable to all leases, permits, rights -or -
<br />way, essements, or licenses or other interests In real property con-
<br />veyed by the State Lands Commission.
<br />2. CONSIDERATION
<br />(a) Categories
<br />(1) Rental:
<br />Lessee shall pay the annual rental as stated in Section 1
<br />or 2 to Lessor without deduction, delay or offset, on or before
<br />the beginning date of this Lease and on or before each anni-
<br />versary of its beginning date during each year of the Lease
<br />term.
<br />(2) Royalty or other consideration:
<br />Lessee shall pay a royalty or other consideration in the
<br />amount, method and manner as specified in Section 1 or 2.
<br />(3) Non -Monetary Consideration:
<br />If a monetary rental, royalty, or other consideration is
<br />not specified in Section 1 or 2, consideration to Lessor for this
<br />Lease shall be the public use. benefit, health or safety, as
<br />appropriate, however Lessor shall have the right to review
<br />such consideration at any time and to set a monetary rental if
<br />the State Lands Commission, at its We discretion, deter-
<br />mines that such action is in the best interest of the State.
<br />Lessee shaft notify Lessor within ten (10) days in the event
<br />that the public is charged any direct or indirect fee for use"
<br />enjoyment of the Lease Premises.
<br />(b). Modification
<br />Lessor may modify the amount or rate of consideration effec-
<br />tive on each fifth anniversary of the beginning date of this Lease.
<br />Should Lessor fail to exercise such right effective on any fifth
<br />anniversary it may do so effective on anyone (1) of the next four (4)
<br />anniversaries following such fifth anniversary, without prejudice
<br />to its right to effect such modification on the next or any succeed-
<br />ing fifth anniversary. Any modification of the amount or rate of
<br />consideration made pursuant to this paragraph shall conform
<br />to Title 2, Division 3 of the California Administrative Code and no
<br />such modification shall become effective unless Lessee is given
<br />written notice at least sixty (60) days prior to the effective date.
<br />H
<br />preaaly authorized in Section 1 or 2 of this Lease shall be con-
<br />structed by the Lessee at the Lease Premises without the
<br />prior written consent of Lessor. Lessee shall notify Lessor
<br />within ten (10) days after commencing the construction of
<br />authorized improvements and within sixty (60) days after
<br />completing them.
<br />(2) Alteration or Removal — Except as provided under this
<br />Lease, no alteration or removal of existing improvements on
<br />or natural features of the Lease Premises shall be undertaken
<br />without the prior written consent of Lessor.
<br />td) Conservation:
<br />Lessee shall practice conservation of water and other natural
<br />resources and shall prevent pollution and harm to the environ-
<br />ment in or on the Lease Premises.
<br />(e) Enjoyrnent:
<br />Nothing in this Lease shall preclude Lessee from excluding
<br />persons from the Lease Premises when their presence or activity
<br />constitute a material interference with Lessee's use and enjoy-
<br />ment of the Lease Promises as provided under this Lease.
<br />(f) Discrimination:
<br />Lessee in its use of the Lease Premises shall not discriminate
<br />against any person or class of persons on the basis of race, color,
<br />creed, national origin, sex, age, or physical handicap.
<br />(g) Residential Use:
<br />Unless otherwise allowed under this Lease, improvements
<br />on the Lease Premises shall not be used as a residence or for the
<br />purpose of mooring a floating residence.
<br />5. RESERVATIONS, ENCUMBRANCES AND RIGHTS-OF-WAY
<br />(a) Reservations:
<br />(1) Lessor expressly reserves all natural resources in or on
<br />the Lease Premises, including but not limited to oil, coal,
<br />natural gas and other hydrocarbons, minerals, aggregates,
<br />timber and geothermal resources, as well as the rightto grant
<br />leases in and over the Lease Premises for the extraction of
<br />such natural resources, however such leasing shall be
<br />neither inconsistent nor incompatible with the rights or
<br />privileges of Lessee under this Lease.
<br />(c) Penalty and Interest
<br />Any installments of rental, royalty, or other consideration (2) Lessor expressly reserves a right to go on the Lease
<br />accruing under this Lease not paid when due sha11 be subject to a Premises and all improvements for any purpose associated
<br />penalty and shall bear interest as specified in Public Resources with this Lease or for carrying out any function required by
<br />Code Section 6224 and Section 2. law, or the rules, regulations or management policies of the
<br />State Lands Commission. Lessor shall have a right of reason -
<br />3. BOUNDARIES able access to the Lease Premises across Lessee owned or
<br />This Lease is not intended to establish the State's boundaries and occupied lands adjacent to the Lease Premises for any Aur-
<br />is made without prejudice to either party regarding any boundary pose associated with this Lease.
<br />claims which may be asserted presently or in the future.
<br />4. LAND USE
<br />(a) General:
<br />Lessee shall use the Lease Premises only for the purpose or
<br />purposes stated in Section 1 or 2 and only for the operation and
<br />maintenance of the improvements authorized in Section 1 or 2.
<br />Lessee shall commence use of the Lease Premises within ninety
<br />(90) days of the beginning date of this lease. Thereafter Lessee's
<br />discontinuance of such use for a period of ninety (90) days shall
<br />be conclusively presumed to be an abandonment.
<br />(b) Repairs and Maintenance:
<br />Lessee shall, at its own expense, keep and maintain the
<br />Lease Premises and ail improvements in good order and repair
<br />and safe condition.
<br />(c) Additions, Alterations and Romoval:
<br />(1) Additions — No improvements other than those ex -
<br />(3) Lessor expressly reserves to the public an easement
<br />for convenient access across the Lease Premises to other
<br />State-owned lands located near or adjacent to the Lease
<br />Promises and a right of reasonable passage across and along
<br />any right-of-way granted by this Lease, however, such ease-
<br />ment or right-of-way shall be neither inconsistent nor in-
<br />compatible with the rights or privileges of Lessee under this
<br />Lease.
<br />{4) Lessor expressly reserves the right to lease, convey, or
<br />encumber the Lease Premises, in whole or in part, during the
<br />lease term for any purpose not inconsistent or incompatible
<br />with the rights or privileges of Lessee under this Lease.
<br />(b) Encumbrances:
<br />This Lease may be subject to pre-existing contracts. leases,
<br />licenses, easements, encumbrances and claims and it is made
<br />without warranty by Lessor of title, condition or fitness of the land
<br />for the stated or intended use_
<br />Page 4 of 7 Form 51.15 (7(841
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