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relationship and: (i) with regard to eighty-five percent (85%) of the total hotel <br />occupants, not occupied by the same occupant for less than eight (8) hours or in <br />excess of thirty (30) consecutive days; or (ii) with regard to fifteen percent (15%) of <br />the total hotel occupants, not occupied by the same person for less than eight (8) <br />hours. Notwithstanding the aforementioned, the parties may agree by mutual <br />consent to change the definition of transient accommodations to adjust for different <br />commercial conditions. Transient accommodations shall not include the carrying on <br />of any trade or business, provision of any sales or services, or any other nonresidential <br />activity in guest rooms, except nothing herein shall prohibit the use of guest rooms, <br />meeting rooms or the lobby for business meetings, training sessions, seminars, <br />exhibits and conferences in conjunction with business conventions or conferences <br />conducted at the hotel. Transient accommodations shall not include the offering of <br />any service not offered in the majority of the hotels in the San Francisco Bay Area <br />SMSA, without prior written approval of City. <br />"First Class" means a hotel offering notably high -quality accommodations, service and <br />physical atmosphere. <br />3. TERM <br />The term of this lease shall be THIRTY (30) years, commencing on the first day of <br />the twelfth month after date of award of this lease by City or the first day of the <br />month immediately following the date Lessee opens the leased premises for business, <br />whichever is earlier, unless sooner terminated as herein after provided. Lessee shall <br />have the option to renew this lease for two ten (10) years terms which option shall be <br />executed by giving City notice in writing of Lessee's desire to exercise the option. The <br />notice must be received by City at least one hundred and eighty (180) days prior to <br />the expiration date of the original lease term. <br />4. USE OF PREMISES <br />In accordance with Exhibit B hereof, the demised premises shall be used by Lessee for <br />the construction, establishment, and operation of a first-class hotel for transient <br />accommodations, interior courtyard, swimming pool, tennis courts, rooms for <br />meetings and banquets, parking, landscaped open space, the vending of food, and <br />other uses incidental thereto, excluding the providing of live entertainment. <br />Lessee shall not use or permit the demised premises or any part thereof to be used in <br />whole or in part for any purpose other than as hereinabove set forth at any time <br />during the term of this lease, except with the prior written consent of the City, nor <br />any use in violation of any present or future laws, ordinances, general rules or <br />rev. 3-12-96 (SRM) <br />rev. 6-5-96 (SRM) 2 <br />