results in royalties, profits, or any form of compensation, whether monetary or otherwise, shall give Lessor the right to reevaluate the
<br />requirements of this Lease as stated in Section 3 Paragraph 11. Lessee shall be given at least thirty (30) days' notice prior to the date
<br />of the Commission meeting wherein the rent modification is considered, or thirty (30) days' notice prior to the effective date that this
<br />Lease is converted to a monetary rental, whichever provides more notice.
<br />(f) Place for Payment of Rent
<br />All rent that becomes due and payable under this Lease shall be paid to Lessor in person or by United States mail at the Sacramento
<br />Offices of the California State Lands Commission, currently at 100 Howe Avenue, Suite 100-South, Sacramento, CA 95825-8202, or
<br />at any other place or places that Lessor may designate by written notice to Lessee. Alternately, Lessee may contact Lessor's accounting
<br />department for Lessor's current practices for payment by credit card or electronic fund transfer.
<br />4. BOUNDARIES
<br />This Lease is not intended to establish the State's boundaries and is made without prejudice to either party regarding any boundary
<br />or title claims which may be asserted presently or in the future.
<br />5. LAND USE
<br />(a) General
<br />(1) Lessee shall use the Lease Premises only for the purpose or purposes stated in this Lease and only for the operation and
<br />maintenance of the Improvements expressly authorized in this Lease. Lessee shall commence use of the Lease Premises within
<br />ninety (90) days of the beginning date of this Lease or within ninety (90) days of the date set for construction to commence as set
<br />forth in this Lease, whichever is later.
<br />(2) All demolition, construction, remodeling, reconstruction, maintenance, repairs, removal, or remediation performed on the
<br />Lease Premises at any time by Lessee shall first be authorized by all appropriate Regulatory Agencies. Lessee is solely
<br />responsible for determining what approvals, authorizations, or certifications are required, and shall be solely responsible for all
<br />costs incurred thereby. In addition, Lessee shall obtain and comply with preventative or remedial measures required by any
<br />environmental reports, assessments, or inspections, including, but not limited to those required by the California Environmental
<br />Quality Act and/or the National Environmental Policy Act, or as otherwise required by law or reasonably requested by Lessor.
<br />Nothing in this Lease shall be interpreted as a pre -approval of any permit, certification, or any other precondition required for
<br />the use of the Lease Premises.
<br />(b) Continuous Use
<br />Lessee's use of the Lease Premises shall be continuous from commencement of the Lease until its expiration. Lessee's
<br />discontinuance of such use for a period of ninety (90) days shall be presumed to be an abandonment unless Lessee demonstrates to
<br />Lessor's satisfaction that Lessee's use of the Lease Premises is consistent with similarly situated properties. In the event of an
<br />abandonment, Lessor may elect to terminate the Lease as provided in Paragraph 12(a)(3). Abandonment of the Lease Premises shall
<br />not relieve Lessee of any obligations under this Lease.
<br />(c) Repairs and Maintenance
<br />(1) Lessor shall not be required to make any Repairs in, on, or about all or part of the Lease Premises. Lessee shall, at all times
<br />during the term of this Lease and without any cost or expense to Lessor, keep and maintain the Lease Premises, including all
<br />Improvements, in good order and repair and in a clean; safe, sanitary, and orderly condition.
<br />(2) Lessee shall make, or cause to be made, any Repairs which may be required by any Regulatory Agency. Lessee shall observe
<br />and comply with, any law, statute, ordinance, plan, regulation, resolution, or policy applicable to the Lease Premises in making
<br />such Repairs. All work shall be performed with reasonable diligence, completed within a reasonable time, and performed at the
<br />sole cost and expense of Lessee.
<br />(3) Lessee expressly accepts the Lease Premises "as is" and expressly acknowledges that:
<br />(i) Lessor has made no representations or warranties as to the suitability of the Lease Premises for any Improvements.
<br />Lessee shall conduct all tests necessary to determine the suitability of the Lease Premises for any proposed use or
<br />Improvements authorized; and
<br />(ii) Lessor has made no representations or warranties as to the quality or value of any Improvements found on the Lease
<br />Premises, or of their conformity to any applicable building codes, zoning ordinances, or other regulations. Lessee agrees to
<br />inspect any preexisting Improvements at its own cost to determine whether such Improvements are safe and suitable for the
<br />Form51.16 (Rev. 10/14)
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