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is authorized by this Lease
<br />"Lessor" shall be defined as the state of California, acting by and through the California State Lands Commission, including the
<br />Commissioners, their alternates and designates, the Executive Officer, and the staff of the California State Lands Commission.
<br />"Regulatory Agency" shall include any Federal, State, County, Municipal, or Local agency having jurisdiction over the Lease Premises.
<br />"Repairs" shall be defined as all work of any kind made to maintain, change, restore, strengthen, replace, alter, or otherwise affect any
<br />Improvement on the Lease Premises.
<br />"Residence" shall be defined as any Improvement, whether permanent, movable, or temporary, or a portion thereof, which is for the time
<br />being a home or place of lodging. A Residence includes any Improvement affixed to the land such as trailers or cabins, built on a raised
<br />foundation such as stilts or pilings, and floating residences such as boats, barges, arks, and houseboats, and any combination of such
<br />Improvements which provide residential accommodations to the Lessee or others. "Residence" shall not include transitory, intermittent,
<br />recreational use of facilities such as campgrounds.
<br />"Residential Use" shall be defined as Improvements such as, but not limited to, sundecks, and sunrooms which are extensions of, or
<br />additions to, the upland property and are not water -dependent uses. Although the various uses or Improvements which may fall under
<br />this definition may vary by geographic area, lease type, or other factors, it is the intention of the parties to include in this definition all
<br />uses and Improvements which are not water -dependent but residential in nature, or those uses and Improvements which are not consistent
<br />with common law public trust principles and values.
<br />3. CONSIDERATION
<br />(a) Absolute Triple Net Lease
<br />This Lease is an absolute triple net lease, pursuant to which Lessor has no obligation with respect to the payment of taxes,
<br />insurance, the cost of maintenance, utilities and repairs or other costs or obligations associated with the Leased Premises,
<br />except as expressly stated herein.
<br />(b) Rent
<br />Lessee agrees to pay Lessor rent as stated in this Lease, in annual installments, for the use and occupancy of the Lease Premises.
<br />The first installment shall be due on or before the beginning date of this Lease and all subsequent installments shall be due on or
<br />before each anniversary of its beginning date during each year of the Lease term, or as otherwise provided in this Lease. Said sums
<br />shall be paid in lawful money of the United States of America. Lessee shall send said rent to the mailing address of Lessor.
<br />Timeliness of receipt of remittances sent by mail shall be governed by the postmark date as stated in Government Code Section
<br />11002. Invoices for rent due may be provided by Lessor as a courtesy. Lessor's failure to, or delinquency in, providing invoices
<br />shall neither excuse Lessee from paying rent, nor extend the time for paying rent.
<br />(c) Modification
<br />Lessor may modify the method, amount, or rate of consideration effective on each fifth anniversary of the beginning date of this
<br />Lease. Should Lessor fail to exercise such right effective on any fifth anniversary it may do so effective on any one (1) of the next four
<br />(4) anniversaries following such fifth anniversary, without prejudice to its right to effect such modification on the next or any
<br />succeeding fifth anniversary of the beginning date. No such modification shall become effective unless Lessee is given at least thirty
<br />(30) days' notice prior to the date of the Commission meeting wherein the rent modification is considered, or thirty (30) days' notice
<br />prior to the effective date of the increase, whichever provides a greater notice period.
<br />If the consideration for this Lease is based on a percentage of income, royalties, profits, or any similar business performance
<br />indicators, Lessee shall provide Lessor with financial statements and all other documents necessary to determine the relevant basis for
<br />income.
<br />(d) Penalty and Interest
<br />Any installments of rent accruing under this Lease not paid when due shall be subject to a delinquency charge equal to five
<br />percent (5%) of the principal sum due. Annual payments shall bear interest as specified in Public Resources Code Section 6224 and
<br />the Lessor's then existing administrative regulations governing penalty and interest.
<br />(e) Non -Monetary Consideration
<br />If the consideration to Lessor for this Lease is the public use, benefit, health, or safety, Lessor shall have the right to review such
<br />consideration at any time and set a monetary rental if the Lessor, at its sole discretion, determines that such action is in the best
<br />interest of the State. Lessee's assignment or transfer of this Lease pursuant to Section 3 Paragraph 11 below to any third party which
<br />Form51.16 (Rev. 10/14)
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