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Lease or any associated environmental review against any challenge by a third parry, whether or not Lessor chooses to raise a defense
<br />against such a challenge.
<br />(e) Lessee shall notify Lessor immediately in case of any accident, injury, or casualty on the Lease Premises.
<br />9. INSURANCE
<br />(a) Lessee shall obtain and maintain in Full Force and effect during the term of this Lease comprehensive general liability insurance
<br />and property damage insurance, with such coverage and limits as may be reasonably requested by Lessor from time to time, but in
<br />no event for less than the sum(s) specified against any and all claims or liability arising out of the ownership, use, occupancy,
<br />condition, or maintenance of the Lease Premises and ail improvements.
<br />(b) The insurance policy shall identify the Lease by its assigned number. The specific Improvements shall also be generally
<br />identified, as well as their location oil state owned property. The coverage provided shall be primary and non-contributing. Lessee
<br />shall keep such policy current. Lessor sltall be named as a "certificate holder" and/or an "additional interest" on the policy. Lessee
<br />shall provide Lessor with a cun•ent certificate of insurance at all times. At Lessor's request, Lessee shall provide a fall copy of the
<br />current insurance policy, along with any and all endorsements or other such documents affecting the coverage. Lessor will not be
<br />responsible For any premiums or other assessments on the policy.
<br />(c) The insurance coverage specified in this Lease shall be in effect at all times during the Lease term and subsequently until Lessor
<br />has either accepted all of the Lease Premises as improved or restored by Lessee as provided elsewhere in this Lease. Lessee shall
<br />notify Lessor within Five (5) business days if the insurance is canceled for any reason.
<br />10. SURETY BOND
<br />(a) When required by Section 1 of this Lease, Lessee shall provide a surety bond or other security device acceptable to Lessor, for the
<br />specified amount, and naming the State of California, California State Lands Commission as the assured, to guarantee to Lessor the
<br />faithful observance and performance by Lessee of all of the terms, covenants, and conditions of this Lease.
<br />(b) Lessor may require an increase in the amount of the surety bond or other security device to cover any additionally authorized
<br />Improvements, any modification of consideration, or to provide for inflation or other increased need for security. The surety bnnd or
<br />other security device may be increased on each fifth anniversary of the beginning date of this Lease. Should Lessor Fail to exercise such
<br />right effective on any fifill anniversary, it may do so effective on any Line (1) of the next four (4) anniversaries following such Fifth
<br />anniversary without prejudice to its right to effect such modification on the next or any succeeding fifth anniversary. No such
<br />modification shall become effective unless Lessee is given at least Illiity (30) clays' notice prior to the date of the Commission meeting
<br />wherein the modification of the bond or security is considered, or thirty (30) clays' notice prior to the effective date of the increase,
<br />whichever provides more notice.
<br />(c) ]"he surety bond or other security device shall be maintained in full force and effect at all times during the Lease term and
<br />subsequently until Lessor has either accepted all ❑r the Lease Premises as improved or restored by Lessee as provided elsewhere in
<br />this Lease. Lessee must first seek approval of Lessor before changing the type of security device used, or the bond holler.
<br />11, ASSIGNf'NIENT, ENCUNIBRANCING OR SUBLETTING
<br />(a) Lessee shall not either voluntarily or by operation of Iaw, assign, transfer, mortgage, pledge, hypothecate or encumber this Lease
<br />and shall not sublet the Lease Premises, in whole or in part, or allow any person other than the Lessee's employees, agents, servants
<br />and invitees to occupy or rise all or any portion of the Lease Premises without the prior written cLin sell t of Lessor, which consent shall
<br />not be unreasonably withheld.
<br />(1) Notwithstanding the fiiregoing prohibition against transfer and assignment, the Lease may be transferred by Lessee if the
<br />transfer is caused by the death of a spouse and the full interest of the deceased spouse is transferred to a surviving spouse; or the
<br />transfer is caused by the dissolution of the marriage of Lessee and the full interest of one of the spouses is transferred to the other
<br />spouse. lit the event of such a transfer, Lessor shall be notified in writing within 30 days of the transfer.
<br />(2) Notice to Lessor of Successor TrtrStee(5): lit the event this Lease is held in trust, and the Lessee is a trustee thereof, the
<br />substitution or succession of a new trustee shall not be an assignment or transfer for the pur)yoses of this Paragraph. Lessee (and
<br />by operation of law, any successor trustee) agrees to provide prompt notice to Lessor of any succession or substitution of trustee
<br />in accordance with Paragraph 16(c) of General Provisions, no later than sixty (60) days after the named trustee as appears on the
<br />face of this Lease becomes unable or ceases to serve as trustee for arty reason.
<br />(b) The following shall be deemed to be an assignnteut or transfer within the meaning of this Lease:
<br />f i ) If Lessee is a business elttit) , any dissolution, merger, consolidation or tither reorganization of Lessee, or the sale or other
<br />Form 5 1.1G ( Rev. 10/ 14 )
<br />Page 6 off2
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