Paragraphs

1. Leased Premises

2. Term

3. Consideration

4. Use Of Leased Premises

5. Subletting

6. Joint Inspection and Inventory Report

7. Environmental Baseline Survey and Finding of Suitability to Lease

8. Alterations

9. Access by Government

10. Utilities and Services

11. Non-Interference with Government Operations

12. Protection and Maintenance Services

13. Environmental Protection Provisions

14. Termination

15. Environmental Contamination

16. Non-Environmental Indemnification by Lessee

17. Insurance

18. Labor Provision

19. Submission of Notices

20. Audit

21. Agreement

22. Failure to Insist on Compliance

23. Disputes

24. Covenant Against Contingent Fees

25. Liens

26. Taxes

27. Easements and Rights-of-Way

28. Administration

29. Surrender

30. Interest

31. Availability of Funds

32. Applicable Rules and Regulations

33. Quiet Possession

34. Facilities Required by Government

35. Exhibits

THIS LEASE, made this __________ day of ____________, ____, by and between THE UNITED STATES OF AMERICA, acting by and through the Department of the Navy, herein called "Government", and THE COUNTY OF ORANGE, CALIFORNIA, herein called "Lessee".

WITNESSETH:

WHEREAS, Government has declared certain real and personal property at Marine Corps Air Station, El Toro (hereinafter referred to as "the Installation"), as more particularly described in Paragraph 1, surplus and Lessee has identified an immediate need to use such real and personal property; and

WHEREAS, it has been determined pursuant to the provisions of
10 U.S.C. § 2667 (f)(1), and delegations made thereunder that this Lease will facilitate state and local economic adjustment efforts pending final disposition of the real and personal property; and

WHEREAS, it has been determined pursuant to 10 U.S.C. § 2667 (f)(2) and delegations made there under that a public interest will be served as a result of this Lease, the fair market value of the Lease is either unobtainable or not compatible with such public benefit, and that consequently, consideration for this Lease will be at less than fair market value; and

WHEREAS, to the extent that this Lease involves storage, treatment and disposal of toxic or hazardous materials, the Secretary of the Navy has determined that the proposed use of the premises, subject to the terms and conditions of this Lease, meets the criteria of 10 U.S.C. § 2692(b)(9) and (10); and

WHEREAS, after consultation with the Environmental Protection Agency it has been determined that the leased premises is suitable for lease, and that the uses contemplated hereunder are consistent with protection of human health and the environment; and

WHEREAS, Lessee is recognized by the Secretary of the Defense, through the Office of Economic Adjustment, as the local redevelopment authority with the responsibility for the redevelopment of the Installation; and

WHEREAS, Lessee has the power to acquire and lease federal military Installations, and Lessee desires to enter into this Lease,

NOW THEREFORE: in consideration of the terms, covenants, and conditions hereinafter set forth, Government and Lessee hereby agree as follows:
 
 

1. LEASED PREMISES:

Government does hereby lease, rent and demise to Lessee, and Lessee does hereby hire and rent from Government, the premises depicted in Exhibit A, hereinafter referred to as the "Leased Premises" provided, however, that the buildings, structures and other improvements thereon shall not be used or occupied unless specifically enumerated in Exhibit B, and in that event, only for those specific uses described therein. Nothing in the preceding sentence shall limit the Lessee's obligation to protect and maintain the Leased Premises, including all buildings, structures and other improvements thereon. The buildings described in Exhibit H hereof are not a part of the Leased Premises. The exhibits referred to herein and elsewhere in this Lease are attached hereto and made a part hereof.

Additional buildings, structures and improvements may be added by written amendment to this Lease, by mutual consent of the Lessee and the Government. Such amendments are subject to the necessary documentation, findings and determinations required by NEPA and by the Department of Defense policy on the environmental review process to reach a Finding of Suitability to Lease . Each party agrees to expedite the negotiation and processing of such amendments.
 
 

2. TERM:

The term of this Lease shall be for the period of five (5) years beginning on ______________, 2000 and ending either on ________________, 2005 or upon the effective date of a conveyance or a lease in furtherance of conveyance of any part of Leased Premises, whichever occurs first, unless sooner terminated in accordance with the provisions of Paragraph 14 hereof.
 
 
 
 
 
 

3. CONSIDERATION:

3.1 As consideration for this Lease, Lessee agrees to provide protection and maintenance to the extent described in Paragraph 12 for the Leased Premises. All revenue received by Lessee shall be applied by Lessee to the protection, maintenance, repair, improvement and other costs related to Leased Premises. "Other costs" may include reasonable, necessary and customary appraisal fees, tenant improvement costs (including asbestos abatement, if necessary, and minor capital improvement), real estate brokerage commissions, and property management and marketing expenses incurred pursuant to a plan or plans previously approved by Government.

3.2 The word "revenue" as used in this paragraph 3 means rental income and any other miscellaneous income derived from the rental of real or personal property on the Leased Premises and the provision of any service with respect to that property, excluding sales tax, use and occupancy tax, franchise tax and other miscellaneous taxes, building fees, planning fees and inspection fees. All revenue shall be promptly deposited in a special fund designated as the "El Toro Rental Revenue Account" to be maintained by the County Treasurer. No money shall be drawn from said account for any purpose other than those described in this paragraph and paragraph 12. Within thirty (30) days of the end of the term of this Lease, or at its earlier termination, the balance of any revenue remaining in the account shall be paid to Government. Security deposits for faithful performance, anticipated charges for utilities, common services and other purposes, regardless of how those deposits are denominated, shall be placed in a sub-account within the El Toro Rental Revenue Account, to be used for any legally permissible purpose under this Lease, including return of any unobligated balance to the payer.

3.3 Lessee shall reimburse Government monthly, on the first of each month, for any costs incurred which are specifically attributable to an action (or inaction) of Lessee or sublessees. Government will advise lessee of such costs on a monthly basis.

3.4 Consistent with standard accounting practices for tax purposes, Lessee shall maintain adequate records and books of account for income to and expenses paid from the El Toro Rental Revenue Account. Lessee shall provide Government with access to such records and books of account and proper facilities for inspection thereof at all reasonable times.

4. USE OF LEASED PREMISES:

4.1 Leased Premises may be used, in the absence of prior written approval by Government for any other use, for those uses described in Exhibit B and in accordance with the restrictions described in Sections 8 of the Finding of Suitability to Lease (Exhibit E). Lessee understands and acknowledges that this Lease is not and does not constitute a commitment by Government with regard to the ultimate disposal of Leased Premises, in whole or in part, to Lessee or any agency or instrumentality thereof, or to any sublessee.

4.2 Lessee shall not undertake any activity that may affect an identified historic or archeological property, including excavation, construction, alteration or repairs of Leased Premises, without the approval of Government. Buried cultural materials may be present on the premises. If such materials are encountered, Lessee shall stop work immediately and notify Government.

4.3 Leased Premises shall not be used for aircraft operations of any kind.

4.4 Lessee’s use of the premises for agricultural purposes shall be limited to the existing agricultural parcels, and shall be subject to the provisions provided at Exhibit I. In addition, the use of the premises shall be subject to the existing month-to-month tenancies to:

Bordier (original lease N62474483RP02821

Elite (original lease N6871197RP07Q09

Megarro (N6247489RP00Q14)

4.5 4. PEST MANAGEMENT. Lessee shall, at his own expense, control by mechanical means or by pesticide/herbicide application all noxious weeds and undesirable weeds and rodents, insects and other pests on the Leased Premises. The term "pesticide" includes herbicides, insecticides, fungicides, rodenticides and algaecides. Lessee shall be responsible for complying with all federal, state and local environmental standards including obtaining required permits. At the beginning of each calendar year, Lessee shall furnish the Station POC a Pest Management Plan on the form in Exhibit J. This annual plan shall contain the following information regarding all pesticides which the LESSEE will use on the Station.

(a) Common name, concentration of the product

(b) Product formula

(c) Amount to be used

(d) Target pest or weed

(e) Crop and acreage to be treated

(f) Application rate/acre

(g) Time/ Frequency application

(h) Environmental Protection Agency Registration No.

Changes in the Lessee’s pesticide application program such as target pest, application time and frequency, name of pesticide and total amount of the product to be used must be reported to and approved by the Government prior to application..

5. SUBLETTING:

5.1 Lessee may sublease the Leased Premises, provided the sublease is made subject to all terms and conditions of this Lease and does not include any provision that is inconsistent with it. The sublease shall contain a copy of this Lease as an attachment and shall terminate immediately upon the expiration or any earlier termination of this Lease, without any liability on the part of Government to Lessee or any sublessee. Any proposed sublease which involves the use of hazardous or toxic materials, including those of an explosive, flammable or pyrotechnic nature, as provided in 10 U.S.C. § 2692, shall require prior Government approval, unless approved in connection with the Lease. Such consent shall not be unreasonably withheld or delayed. Government will make every reasonable effort to make a decision within 30 calendar days of the date it receives Lessee’s request to sublet, together with the prospective sublessee’s completed application. Under no circumstance shall Lessee assign this Lease.

5.2 Under any sublease made, with or without consent, the sublessee shall be deemed to have assumed all of the obligations of Lessee under this Lease, except for those contained in paragraph 3. No sublease shall relieve Lessee of any of its obligations hereunder.

5.3 Upon its execution, a copy of the sublease shall immediately be furnished to Government. Should a conflict arise between the provisions of this Lease and a provision of a sublease, the provisions of this Lease shall take precedence. No sublease shall be construed to diminish or enlarge any of the rights or obligations of either of the parties under this Lease.

5.4 Whenever a provision of this Lease imposes a requirement or limitation on Lessee with respect to Leased Premises, the provision shall be understood to impose the identical requirement or limitation on the sublessee. Any notice given by Government to Lessee under the terms of this Lease shall serve as notice to the sublessee. For purposes of this paragraph 5, interests in the use of Leased Premises, regardless of how they may be denominated by Lessee, are collectively referred to as a "sublease" and the party acquiring such interest as the "sublessee."

6. JOINT INSPECTION & INVENTORY REPORT:

6.1 Prior to the effective date of this Lease, a joint inspection of Leased Premises has been conducted by representatives of Lessee and Government, and a complete inventory of Government real and personal property located therein has been made. The Joint Inspection and Inventory Report describes the condition of Leased Premises and notes deficiencies which are found to exist. The Joint Inspection and Inventory Report is attached as Exhibit C.

6.2 Each inventory contained in the Joint Inspection and Inventory Report is identified by building number or facility number and signed and dated by both parties to the Lease. All personal property in a building, unless specifically excepted by terms and conditions of this Lease shall remain with the building.

6.3 Leased Premises shall be delivered to Lessee "AS IS", "WHERE IS". Government makes no warranty as to Leased Premises’ usability generally or as to its fitness for any particular purpose. Any safety and/or health hazards identified in the joint inspection shall be corrected prior to any use or occupancy.

6.4 In the event the Lease is terminated and the parties have not agreed to enter into a new Lease, a lease in furtherance of conveyance or an agreement for the sale of the property, Lessee shall return the Leased Premises to Government in the same condition in which it was received, reasonable wear and tear and acts of God excepted. Lessee may at its expense and with prior written approval of Government, which approval shall not be unreasonably withheld or delayed, (a) replace any personal property with personal property of like kind and utility, (b) repair any personal property in a good and workmanlike manner and (c) dispose of any worn out, obsolete or non-functioning personal property, in accordance with applicable laws and regulations.
 
 

7. ENVIRONMENTAL BASELINE SURVEY AND FINDING OF SUITABILITY

TO LEASE:

The executive summary of the Environmental Baseline Survey (EBS) and a Finding of Suitability to Lease (FOSL) are attached hereto as Exhibits D and E, respectively. The EBS sets forth the existing environmental conditions of Leased Premises as represented by the baseline survey which has been conducted by Government. The FOSL sets forth the basis for Government’s determination that Leased Premises are suitable for leasing. Lessee is hereby made aware of the restrictions contained in the FOSL and shall conduct its activities in accordance therewith.

8. ALTERATIONS:

8.1 Lessee shall not construct or make any substantial alterations, additions, excavations, or improvements to or upon, or otherwise modify Leased Premises in any way (collectively "Work"), including those which may adversely affect the cleanup, human health or the environment, without the prior written consent of Government, with the exception of those activities described in Exhibit F, attached hereto and made part hereof, which shall not require Government review and consent. Such consent shall not be unreasonably withheld or delayed. Government will make every reasonable effort to make a decision within 30 calendar days of the date it receives Lessee’s request to perform the Work, together with the related plans therefor. Such consent may involve a requirement to provide Government with a performance and payment bond satisfactory to it in all respects and other requirements deemed necessary to protect the interest of Government. For Work in the proximity of operable units, which are shown on Exhibit G hereof, such consent may include a requirement for written approval by Government’s Remedial Project Manager. All such Work shall be done in a workmanlike manner and be subject to the requirements of all state and local building codes.

8.2 Lessee shall provide Government with prior written notification and a full description of all proposed Work on Leased Premises, including: information required by Government to comply with the National Environmental Policy Act (NEPA) and the National Historical Preservation Act, a projected schedule and cost thereof, and an analysis as to how and why such Work will or will not be visible from the exterior of the building situated on Leased Premises or be substantially likely to adversely affect the environmental cleanup of Leased Premises, human health, or the environment, or adversely impact the building structure. Such written notification shall be delivered by Lessee to Government’s representative as designated in paragraph 19 of this Lease.

8.3 Upon termination, revocation or surrender of this Lease or any sublease, Lessee shall, at the option of Government, either:

8.3.1 Promptly remove all Work and restore Leased Premises to the same or as good condition as existed on the date of entry under this Lease, reasonable wear and tear and acts of God excepted; or

8.3.2 Abandon such work in place, at which time title to said Work shall vest in Government.

8.3.3 In either event all personal property and trade fixtures of Lessee or any third person may be removed and Lessee shall repair any damages to Leased Premises resulting from such removal.
 
 

9. ACCESS BY GOVERNMENT:

In addition to access required under paragraph 13, at all reasonable times throughout the term of this Lease, Government shall be allowed access to Leased Premises for any reasonable purposes upon notice to Lessee. Government normally will give Lessee or any sublessee forty-eight (48) hour prior notice of its intention to enter Leased Premises, unless it determines the entry is required for safety, environmental, operations or security purposes. When access is sought to portions of the Leased Premises not open for general access, i.e., private offices and the like, such notice shall be in writing. Lessee shall have no claim on account of any entries against Government or any officer, agent, employee, contractor or subcontractor of Government. All keys to the buildings and facilities occupied by Lessee or any sublessee shall be made available to Government upon request. Any access by the Government will take into consideration its obligations under paragraph 33.
 
 

10. UTILITIES AND SERVICES:

10.1 Procurement of utilities, i.e., electricity, water, gas, steam, sewer, telephone and trash removal will be the responsibility of Lessee. Lessee agrees to obtain needed utility services from any private or municipal supplier which should, during the term of Lease, become able to deliver such services to Leased Premises. In the event that Government shall furnish Lessee with any utilities or services maintained by Government, which Lessee may require in connection with its use of Leased Premises, Lessee shall pay Government the cost incurred in providing such utilities or services in addition to the consideration required under this Lease. Such charges will be determined by Government in accordance with applicable laws and regulations. The volume of utilities used by Lessee shall be determined by metering devices or engineering estimates. It is expressly agreed and understood that Government in no way warrants the continued availability, maintenance or adequacy of any utilities or services furnished to Lessee.

10.2 Lessee shall furnish Government with any utilities maintained by Lessee which Government may require. In the event it does so, Government shall reimburse Lessee for the cost incurred in providing such utilities, which amount shall be agreed upon between the parties.
 
 

11. NON-INTERFERENCE WITH GOVERNMENT OPERATIONS:

Lessee shall not conduct operations or make any alterations that would interfere with or otherwise restrict environmental cleanup or restoration actions by Government, Environmental Protection Agency (EPA), state environmental regulators, or their contractors. Environmental cleanup, restoration or testing activities by these parties shall take priority over Lessee’s use of Leased Premises in the event of any conflict. However, Government and Lessee agree to coordinate to minimize potential conflicts between necessary remediation of environmental contamination, including investigation and remedial actions, and Lessee’s and sublessees’ use of Leased Premises.
 
 

12. PROTECTION AND MAINTENANCE SERVICES:

12.1 Lessee shall furnish all labor, supervision, materials, supplies and equipment necessary for the operation, maintenance and repair of the following building systems and appurtenances: structural (including roof); fencing; plumbing; electrical; heating and cooling systems; exterior utility systems (including fire hydrants and mains); pavement and grounds maintenance (including grass cutting, shrub trimming and tree removal); pest and weed control; security and fire protection within Leased Premises; refuse collection, removal and disposal; and utilities maintenance necessary for the protection of Leased Premises. Government shall not be required to furnish any services or facilities to Lessee or to make any repair or alteration in or to Leased Premises. Lessee hereby assumes the full and sole responsibility for the protection, maintenance and repair of leased premises as set forth in this paragraph. For specifics as to such protection and maintenance required to be provided by Lessee hereunder, the following provisions shall apply:

12.1.1 The degree of maintenance and repair services to be furnished by Lessee hereunder shall be that which is sufficient to assure weather tightness, structural stability (excluding any seismic retrofit and/or modification to foundations resulting from extraordinary natural occurrences such as earthquakes and landslides), protection from fire hazards or erosion, and elimination of safety and health hazards, which arise during the term of the Lease and which are not caused by the actions of Government or its employees, contractors or agents, so that Leased Premises being serviced will remain in the condition in which they existed at the commencement of the Lease as documented in the Joint Inspection and Inventory Report prepared pursuant to Paragraph 6, ordinary wear and tear and acts of God excepted. This obligation shall not apply to any pre-existing defective conditions (exclusive of safety and/or health hazards) of Leased Premises or to special conditions which were identified in the Joint Inspection and Inventory Report (Exhibit C). Any repair to correct such pre-existing defective conditions shall be at Lessee’s option and expense. Government, upon due notice, may inspect Leased Premises to ensure performance of the maintenance set forth herein.

12.2 Lessee shall promptly remove debris, trash and other useless materials from Leased Premises. Upon termination or expiration of this Lease, Lessee shall leave Leased Premises without containers, Lessee’s equipment, and other undesirable materials, and in an acceptably clean condition.

12.3 Lessee shall provide or cause to be provided all security services necessary to assure security and safety within the Leased Premises. Any crimes or other offenses, including traffic offenses and crimes and offenses involving damage to or theft of Government property, shall be reported to the appropriate authorities for their investigation and disposition and to Government as property owner.

12.4 Lessee shall take or cause to be taken, all reasonable and necessary fire protection precautions at Leased Premises.

12.5 Lessee is responsible for the repair and maintenance of all utility systems, distribution lines, connections and equipment on the Leased Premises, which are understood to include appurtenant utility easements. These systems include but are not limited to: heating plants, steam lines, traps, transformers, substations, power distribution lines (overhead and underground), poles, towers, gas mains, water and sewage mains, water tanks, fire protection systems, hydrants, lift stations, manholes, isolation valves, meters, storm water systems and catch basins. Lessee is responsible for obtaining any necessary permission or providing any notices required prior to performing work on said appurtenant easements.

12.6 Lessee shall ensure only trained and qualified persons are utilized in performance of the maintenance and protection services specified in this paragraph.

13. ENVIRONMENTAL PROTECTION PROVISIONS:

13.1 Lessee shall comply with all applicable Federal, state and local laws, regulations and standards that are or may become applicable to Lessee’s activities on Leased Premises.

13.2 Lessee or any sublessee shall be solely responsible for obtaining at its cost and expense any environmental permits required for its operations under the Lease, independent of any existing permits held by Government. Any and all environmental permits required for any of Lessee’s or sublessees’ operations or activities will be subject to prior concurrence of Government. Lessee acknowledges that Government will not consent to being named a secondary discharger or co-permittee for any operations or activities of Lessee or any sublessee under the Lease. In the event Government is named as a secondary discharger or co-permittee for any activity or operation of Lessee or any sublessee, Government shall have the right to take reasonable actions necessary to prevent, suspend, or terminate such activity or operation, including terminating this Lease, without liability or penalty.

13.3 Government’s rights under this Lease specifically include the right for Government officials to inspect upon reasonable notice Leased Premises for compliance with environmental, safety and occupational health laws and regulations, whether or not Government is responsible for enforcing them. Such inspections are without prejudice to the right of duly constituted enforcement officials to make such inspections. Government normally will give Lessee or sublessee twenty-four (24) hours prior notice of its intention to enter Leased Premises unless it determines the entry is required for safety, environmental, or security purposes. Lessee shall have no claim on account of any entries against the United States or any officer, agent, employee, contractor or subcontractor thereof.

13.4 MCAS El Toro is an Installation identifiedas a National Priorities List (NPL) Site under the Comprehensive Environmental Response Compensation and Liability Act (CERCLA) of 1980, as amended. Lessee acknowledges that Government has provided it with a copy of the Federal Facility Agreement (FFA) entered into by the United States Environmental Protection Agency (EPA) Region, the state equivalent, and the Navy. Government will provide Lessee with a copy of any amendments thereto. Lessee agrees that should any conflict arise between the terms of such agreement as it presently exists or may be amended ("FFA," "Interagency Agreement" or "IAG") and the provisions of this Lease, the terms of the FFA or IAG will take precedence. Lessee further agrees that notwithstanding any other provision of this Lease, Government assumes no liability to Lessee or its sublessees or licensees should implementation of the FFA interfere with Lessee’s or any sublessee’s and licensee’s use of Leased Premises. Lessee shall have no claim on account of any such interference against the United States or officer, agent, employee, contractor or subcontractor thereof, other than for abatement of rent, where applicable.

13.5 Government, EPA and the State, and their officers, agents, employees, contractors and subcontractors, have the right, upon reasonable notice to Lessee and/or any sublessee, to enter upon Leased Premises for the purposes enumerated in this subparagraph and for such other purposes consistent with any provisions of the environmental cleanup program (including but not limited to the BRAC Cleanup Plan, FFA, or IAG) and the Installation Restoration Program (IRP). The sites under the IRP are depicted in Exhibit G attached hereto and made a part of this lease. Access by Government may be required for:

13.5.1 to conduct investigations and surveys, including, where necessary, drilling, soil and water sampling, test-pitting, testing soil borings and other activities related to the cleanup program;

13.5.2 to inspect field activities of Government and its contractors and subcontractors in implementing the cleanup program;

13.5.3 to conduct any test or survey required by EPA or applicable state equivalent relating to the implementation of the cleanup program;

13.5.4 to construct, operate, maintain or undertake any other response or remedial action as required or necessary under the cleanup program, including but not limited to monitoring wells, pumping wells and treatment facilities.

13.6 Lessee agrees to comply with the provisions of any health or safety plan in effect under the IRP or the FFA during the course of any of the above described response or remedial actions. Government shall provide a copy of any such plan to Lessee. Any inspection, survey, investigation or other response or remedial action will, to the extent practicable, be coordinated with representatives designated by Lessee and any sublessee. Lessee and sublessee shall have no claim on account of such entries against the United States or any officer, agent, employee, contractor or subcontractor thereof. In addition, Lessee shall comply with all applicable Federal, state and local occupational safety and health regulations.

13.7 Lessee further agrees that in the event of any sublease of Leased Premises, Lessee shall provide to EPA and applicable state equivalent by certified mail a copy of the agreement or sublease of Leased Premises (as the case may be) within fourteen (14) calendar days after the effective date of such transaction. Lessee may delete the financial terms and any other proprietary information from the copy of any agreement of sublease furnished pursuant to this condition.

13.8 Lessee shall strictly comply with the hazardous waste permit requirements under the Resource Conservation and Recovery Act or its applicable state equivalent. Except as specifically authorized by Government in writing, Lessee must provide at its own expense such hazardous waste management facilities complying with all laws and regulations. Government hazardous waste management facilities will not be available to Lessee. Government EPA identification numbers shall not be used by Lessee. Any violation of these prohibitions shall be deemed a material breach of this Lease.

13.9 DoD component accumulation points for hazardous and other waste will not be used by Lessee or any sublessee. Neither will Lessee or sublessee permit its hazardous wastes to be commingled with hazardous waste of DoD Component.

13.10 Lessee shall have a Government-approved plan for responding to hazardous waste, fuel and other chemical spills prior to commencement of operations on Leased Premises. The contingency plan shall be consistent with the provisions of California Code of Regulations, Title 22, Chapter 15, Article 4, beginning with section 66265.50. Such plan shall be independent of Installation plan and, except for initial fire response and/or spill containment, shall not rely on use of Installation personnel or equipment. Should Government provide any personnel or equipment whether for initial fire response and/or spill containment, or otherwise on request of Lessee, or because Lessee was not, in the opinion of Government, conducting timely cleanup actions, Lessee agrees to reimburse Government for its costs in association with such response or cleanup.

13.11 Lessee shall not conduct any subsurface excavation, digging, drilling, or other disturbance of the surface, with the exception of patching of paved surfaces, emergency utility repairs, and work on existing agricultural parcels as indicated in Exhibit I, without the prior written approval of Government.

13.12 The presence of known ACM, LBP or PCBs is fully identified in the Finding of Suitability for Lease, attached as Exhibit E.

13.12.1 Government is not responsible for any removal or containment of ACM, LBP or PCBs. If Lessee intends to make any improvements or repairs that require the disturbance of or removal of asbestos, an appropriate asbestos disposal plan must be incorporated into the plans and specifications and submitted to Government for approval. The asbestos disposal plan will identify the proposed disposal site for the asbestos, or in the event the site has not been identified, will provide for disposal at a licensed facility authorized to receive it.

13.12.2 ACM which during the term of this Lease becomes damaged or deteriorated through the passage of time, as the result of a natural disaster or as a consequence of Lessee’s activities under this Lease, including but not limited to any emergency, will be abated by Lessee at its sole cost and expense. Notwithstanding Paragraph 13.12.1 above, in an emergency, Lessee will notify Government as soon as practicable of emergency ACM responses. Lessee shall be responsible for monitoring the condition of existing ACM on Leased Premises for deterioration or damage and accomplishing repairs or abatement pursuant to the applicable conditions of this Lease.
 
 

13.13 Lessee shall indemnify and hold harmless Government from any costs, expenses, liabilities, fines or penalties resulting from discharges, emissions, spills, storage or disposal arising from Lessee’s occupancy, use or operations, or any other action by Lessee or any sublessee giving rise to Government liability, civil or criminal, or any other action by Lessee or any sublessee giving rise or responsibility under Federal, state or local environmental laws. Lessee’s obligations hereunder shall apply whenever Government incurs costs or liabilities for Lessee’s activities or activities of any sublessee as provided hereunder. This provision shall not require indemnification to the extent that losses and costs are solely attributable to the fault or negligence of the United States of America, its officers, agents, employees or contractors. This provision shall survive the expiration or termination of this Lease.

13.14 Storage, treatment or disposal of toxic or hazardous materials on the Leased Premises is prohibited excepted as authorized by Government in accordance with 10 U.S.C. § 2692.

13.15The responsibility of Government to indemnify and hold harmless Lessee and any sublessees against toxic torts and other environmental claims shall be in accordance with Public Law 102-484, Section 330, as amended.13.16 The Lessee and sublessees shall not use or access groundwater, and shall not disturb, or cause to be disturbed, groundwater monitoring wells and equipment.

13,17 Irrigation of IRP Sites 3 and 5 is prohibited.

13.18 Lessee shall notify its employees, contractors and sublessees who will be on the leased premises of the conditions and restrictions in the use of the leased premises.

13.18 Lessee shall not move, destroy or otherwise disturb any existing groundwater monitoring well, soil vapor extraction (SVE) well, or lysimeter.
 
 
 
 
 
 

14. TERMINATION:

14.1 Government shall have the right to terminate this Lease, in whole or in part, without liability, upon thirty (30) calendar days notice:

14.1.1 In the event of a national emergency as declared by the President or the Congress of the United States; or

14.1.2 In the event of breach by Lessee of any terms and conditions hereof. In the event of a breach involving the performance of any obligation, Lessee shall be afforded sixty (60) calendar days from the receipt of Government's notice of intent to terminate to complete the performance of the obligation or otherwise cure the subject breach and avoid termination of this Lease, unless Government determines that a shorter period is required for safety, environmental, operations or security purposes. In the event that Government shall elect to terminate this Lease on account of the breach by Lessee of any of the terms and conditions, Government shall be entitled to recover and Lessee shall pay to Government:

14.1.2.1 The costs incurred in reacquiring possession of the Leased Premises.

14.1.2.2 The costs incurred in performing any obligation on the part of Lessee to be performed hereunder.

14.1.2.3 An amount equal to the aggregate of any maintenance obligations and charges assumed hereunder and not paid or satisfied, which amounts shall be due and payable at the time when such obligations and charges would have accrued or become due and payable under this Lease.

14.1.2.4 In no event will any breach by Lessee entitle Government to accelerate Lessee's obligations hereunder.

14.1.3 Upon Government making a final decision regarding disposal of Leased Premises that is inconsistent with continued use thereof by Lessee under this Lease.

14.2 Lessee shall have the right to terminate this Lease upon thirty (30) calendar days written notice to Government in the event of breach by Government of any of the terms and conditions hereof. In the event of a breach involving the performance of any obligation, Government shall be afforded sixty (60) calendar days from the receipt of Lessee's notice of intent to terminate to complete performance of the obligation or otherwise cure the subject breach and avoid termination of this Lease. Lessee shall also have the right to terminate this Lease in the event of damage to or destruction of all of the improvements on Leased Premises or such a substantial portion thereof as to render Leased Premises incapable of use for the purposes for which it is leased hereunder, provided:

14.2.1 Government either has not authorized or directed the repair, rebuilding or replacement of the improvements or has made no provision for payment for such repair, rebuilding or replacement by application of insurance proceeds or otherwise; and

14.2.2 That such damage or destruction was not occasioned by the fault or negligence of Lessee or any of its officers, agents, servants, employees, sublessees, licensees or invitees, or by any failure or refusal on the part of Lessee to fully perform its obligations under this Lease.

14.2.3 If Government requires Lessee to vacate all or a substantial portion of Leased Premises pursuant to paragraph 15 of this Lease for a period in excess of thirty (30) calendar days, Lessee may terminate this Lease by written notice to Government given at any time while Lessee shall continue to be denied use of all or a substantial portion of Leased Premises. Lessee shall thereafter surrender possession of Leased Premises within fifteen (15) calendar days of such notice.
 
 

15. ENVIRONMENTAL CONTAMINATION:

In the event environmental contamination is discovered on Leased Premises which creates, in Government’s determination, an imminent and substantial endangerment to human health or the environment which necessitates evacuation of Leased Premises, and notwithstanding any other termination rights and procedures contained in this Lease, Lessee shall vacate or require any sublessee to vacate Leased Premises immediately upon notice from Government of the existence of such a condition. Exercise of this right by Government shall be without liability, except that Lessee shall not be responsible for the payment of consideration, the amount of deduction to be determined on a daily pro-rata basis, during the period Leased Premises is vacated. Government’s exercise of this right herein to order the Leased Premises immediately vacated does not alone constitute a termination of the Lease, but such right may be exercised in conjunction with any other termination rights provided in this Lease or by law.
 
 

16. NON-ENVIRONMENTAL INDEMNIFICATION BY LESSEE:

16.1 Lessee shall at all times relieve, indemnify, protect, defend and save harmless the United States of America, and all of its officers, agents and employees from any and all claims and demands, actions, proceedings, losses, liens, costs and judgments of any kind and nature whatsoever, including expenses incurred in defending against legal actions, for death or injury to persons or damage to property and for civil fines and penalties that may arise from or be caused directly or indirectly by:

16.1.1 Any dangerous, hazardous, unsafe or defective condition, in or on Leased Premises, of any nature whatsoever, which may be caused by any act, omission, neglect, or any use or occupation of the premises by Lessee, its officers, agents, employees, sublessees, licensees or invitees;

16.1.2 Any operation conducted upon or any use or occupation of Leased Premises by Lessee, its officers, agents, employees, sublessees, licensees or invitees under or pursuant to the provisions of this Lease or otherwise;

16.1.3 Any act, omission, or negligence of Lessee, its officers, agents, employees, sublessees, licensees or invitees, regardless of whether any act, omission or negligence of Government, its officers, agents or employees contributed thereto;

16.1.4 Any failure of Lessee, its officers, agents, employees or sublessees to comply with the terms or conditions of this Lease or any applicable federal, state, regional or municipal law, ordinance, rule or regulation.

16.2 Lessee also agrees to indemnify Government and pay for all damages or loss suffered by Government, including but not limited to damage or loss of Government property and injury to Government employees caused by or arising out of the conditions, operations, uses, occupations, acts, omissions or negligence referred to in subparagraphs 16.1.1 through 16.1.4. The term "persons" as used in this paragraph shall include but not be limited to officers and employees of Lessee.

16.3 The provisions of this paragraph shall not require indemnification to the extent that losses or costs are solely attributable to the fault or negligence of the United States of America, its officers, agents, employees or contractors.

16.4 The covenants contained in this paragraph shall survive the termination of this Lease for any injury or damage occurring after commencement of the term of this Lease.

17. INSURANCE:

17.1 Lessee shall bear all risk of loss or damage to Leased Premises for any number of persons or claims arising from any one incident with respect to bodily injuries or death resulting therefrom, property damage or both, suffered or alleged to have been suffered by any person or persons resulting from the operations of Lessee, sublessees, contractors and invitees under the terms of this Lease.

17.2 Based on Lessee’s written representation regarding its financial capacity to be self insured and its request for a waiver, Government hereby waives its normal requirements for insurance insofar as Lessee is concerned, but not with respect to any sublessee.Notwithstanding this waiver, the parties recognize that Lessee presently carries excess public liability coverage for claims of $_5,000,000 or more. Lessee shall provide the excess coverage in an amount not less than the minimum combined single limit of $25,000,000. At the commencement of this Lease, Lessee shall furnish to Government a certificate of insurance consistent with the requirements of Paragraph 17.6, evidencing such excess coverage. The minimum amount of liability insurance coverage is subject to revision by Government upon renewal or modification of this lease.

17.3 As to those structures and improvements on Leased Premises constructed by or owned by Government, Lessee shall procure and maintain a standard fire and extended coverage insurance policy or policies on Leased Premises in the amount of $9,000,000. The insurance policy shall provide that in the event of loss thereunder, the proceeds of the policy or policies, at the election of Government, shall be payable to Lessee to be used solely for the demolition of damaged or destroyed structures and improvements, removal of debris and clearance of Leased Premises or for repair, restoration, or replacement of the property damaged or destroyed. Any balance of the proceeds not required for such purposes shall be paid to Government. If Government does not elect, by notice in writing to the insurer within thirty (30) calendar days after the damage or destruction occurs, to have the proceeds paid to Lessee for the purposes hereinabove set forth, then such proceeds shall be paid to Government, provided, however, that the insurer, after payment of any proceeds to Lessee, in accordance with the policy or policies, shall have no obligation or liability with respect to the use or disposition of the proceeds. Nothing herein contained shall be construed as an obligation upon Government to repair, restore or replace Leased Premises or any part thereof.

17.4 If and to the extent required by law, Lessee shall provide workers’ compensation or similar insurance in form and amounts required by law.

17.5 During the entire period this Lease shall be in effect, Lessee shall require its contractors or sublessees, or any contractor performing work at Lessee’s or sublessee’s request on Leased Premises, to carry and maintain the insurance described below:

17.5.1 Comprehensive (commercial) general liability insurance, in the amount of no less than $5 million.

17.5.2 Workers’ compensation or similar insurance in a form and amounts required by law.

17.6 All insurance which this Lease requires Lessee or others to carry and maintain shall be in such form, for such periods of time, and with such insurers as Government may reasonably require or approve. All policies or certificates issued by the respective insurers for comprehensive general liability and property damage will name Government as an additional insured; provide that any losses shall be payable notwithstanding any act or failure to act or negligence of Lessee or Government or any other person; provide that no cancellation, reduction in amount or material change in coverage thereof shall be effective until at least thirty (30) calendar days after receipt by Government of written notice thereof; provide that the insurer shall have no right of subrogation against Government; and be reasonably satisfactory to Government in all other respects. In no circumstances will Lessee be entitled to assign to any third party, rights of action which Lessee may have against Government.

Lessee and sublessees shall deliver or cause to be delivered promptly to Government a certificate of insurance evidencing the insurance required by this Lease and shall also deliver prior to expiration of any such policy, a certificate of insurance evidencing each renewal policy covering the same risks.

18. LABOR PROVISION:

During the term of this Lease, Lessee agrees as follows:

18.1 Lessee will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. Lessee shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rate of pay or other forms of compensation and selection for training, including apprenticeship. Lessee agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by Government setting forth the provisions of this nondiscrimination clause.

18.1.1 Lessee shall, in all solicitations or advertisements for

employees placed at Leased Premises by or on behalf of Lessee, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin.

18.1.2 Lessee shall send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding a notice to be provided by Government, advising the labor union or worker's representative of Lessee's commitments under this equal opportunity clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

18.1.3 Lessee shall comply with all provisions of Executive Order 11246 of September 24, 1965, as amended by Executive Order 11375 of October 13, 1967, and of the rules, regulations and relevant orders of the Secretary of Labor.

18.1.4 Lessee shall furnish all information and reports required by Executive order 11246 of September 24, 1965, as amended by Executive Order 11375 of October 13, 1967, and of the rules, regulations and relevant orders of the Secretary of Labor or pursuant thereto, and will permit access to his books, records and accounts by Government and the Secretary of Labor for purposes of investigating to ascertain compliance with such rules, regulations and orders.

18.1.5 In the event of Lessee’s noncompliance with the equal

opportunity clause of this Lease or with any of said rules, regulations or orders, this Lease may be canceled, terminated or suspended in whole or in part and Lessee may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, as amended by Executive order 11375 of October 13, 1967, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, as amended by Executive Order 11375 of October 13, 1967, or by rule, regulation or order of the Secretary of Labor, or otherwise provided by law.

18.1.6 Lessee will include the above provisions in every sublease unless exempted by rules, regulations or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, as amended by Executive Order 11375 of October 13, 1967, so that such provisions will be binding upon each sublessee. Lessee will take such action with respect to any sublessee as Government may direct as a means of enforcing such provisions including sanctions for noncompliance; provided, however, that in the event Lessee becomes involved, or is threatened with litigation with sublessee as a result of such direction by Government, Lessee may request the United States to enter into such litigation to protect the interest of the United States.

18.2 This Lease, to the extent that it is a contract of a character specified in the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-330) and is not covered by the Walsh-Healy Public Contracts Act (41 U.S.C. 35-45), is subject to the following provisions and exceptions of said Contract Work Hours and Safety Standards Act and to all other provisions and exceptions of said law.

18.2.1 Lessee shall not require or permit any laborer or mechanic in any workweek in which he is employed on any work under this Lease to work in excess of 40 hours in such work week on work subject to the provisions of the Contract Work Hours and Safety Standards Act unless such laborer or mechanic receives compensation at a rate not less than one and one-half times his basic rate of pay for all such hours worked in excess of 40 hours in such work week. The "basic rate of pay", as used in this clause, shall be the amount paid per hour, exclusive of Lessee’s contribution or cost for fringe benefits and any cash payment made in lieu of providing fringe benefits or the basic hourly rate contained in the wage determination, whichever is greater.

18.2.2 In the event of any violation of the provision of Paragraph 18.2.1, Lessee shall be liable to any affected employee for any amounts due, and to the United States for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic employed in violation of the provisions of paragraph 18.2.1 in the sum of ten $10.00 for each calendar day on which such employee was required or permitted to be employed on such work in excess of the standard work week of 40 hours without payment of the overtime wages required by Paragraph 18.2.1.

18.3 In connection with the performance of work required by this Lease, Lessee agrees not to employ any person undergoing a sentence of imprisonment unless the utilization of prisoners is in conformity with the provisions of Executive Order 11755.

19. SUBMISSION OF NOTICES:

No notice, order, direction, determination, requirement, consent or approval under this Lease shall be of any effect unless in writing. All correspondence, notices and claims concerning this Lease shall be directed to the addresses set out below or to such addresses as may from time to time be given by the parties. Such correspondence, notices and claims may be delivered by hand, express delivery, overnight courier or by prepaid registered or certified mail, return receipt requested.

If to Government:

Real Estate Team Leader

MCAS El Toro Master Development Program

10 Civic Center Plaza, Second Floor

Santa Ana, CA 92701

The individuals so designated shall be the representatives of the parties and the points of contact during the period of this Lease.

20. AUDIT:

This Lease shall be subject to audit by any and all cognizant Government agencies. Lessee shall make available to such agencies for use in connection with such audits all records which it maintains with respect to this Lease and copies of all reports required to be filed hereunder. Government shall provide to Lessee reasonable documentation for all billings and assessments for costs incurred, and for any other Government demands for payment. In no event shall the provisions of this paragraph be construed to authorize or require the disclosure of documents protected from disclosure by the attorney-client privilege, or otherwise, the confidentiality of which is protected by state or federal law.

21. AGREEMENT:

This Lease shall not be modified unless in writing and signed by both parties. No oral statements or representation made by, for or on behalf of either party shall be a part of this Lease. Should a conflict arise between the provisions of this Lease and any exhibit hereto, or any other agreement between Government and Lessee, the provisions of this Lease shall take precedence.
 
 

22. FAILURE TO INSIST ON COMPLIANCE:

The failure of Government to insist, in any one or more instances, upon performance of any of the terms, covenants or conditions of this Lease shall not be construed as a waiver or relinquishment of Government's right to the future performance of any such terms, covenants or conditions and Lessee's obligations in respect to such future performance shall continue in full force and effect.
 
 

23. DISPUTES:

23.1 This Lease is subject to the Contract Disputes Act of 1978, as amended (41 U.S.C. 601-613) (the Act).

23.2 Except as provided in the Act, all disputes arising under or relating to this Lease shall be resolved under this clause.

23.3 "Claim", as used in this clause, means a written demand or written assertion by Lessee or Government seeking, as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of lease terms, or other relief arising under or relating to this Lease. A claim arising under this Lease, unlike a claim relating to this Lease, is a claim that can be resolved under a lease clause that provides for the relief sought by the claimant. However, a written demand or written assertion by Lessee seeking the payment of money exceeding $100,000 is not a claim under the Act until certified as required by subparagraph 23.4 below. A voucher, invoice or other routine request for payment that is not in dispute when submitted, is not a claim under the Act. The submission may be converted to a claim under the Act, by complying with the submission and certification requirements of this clause, if it is disputed either as to liability or amount or is not acted upon in a reasonable time. "Command" used in this clause means the Southwest Division, Naval Facilities Engineering Command.

23.4 A claim by Lessee shall be made in writing and submitted within six (6) years after accrual of the claim, to the Command, for a written decision. A claim by Government against Lessee shall be subject to a written decision by the Command.

23.4.1 Lessee shall provide the certification specified in subparagraph 23.4.3 of this clause when submitting any claim:

(a) Exceeding $100,000; or

(b) Regardless of the amount claimed, when using:

23.4.3 The certification shall state as follows: "I certify that the claim is made in good faith; that the supporting data are accurate and complete to the best of my knowledge and belief; that the amount requested accurately reflects the contract adjustment for which Lessee believes Government is liable; and that I am duly authorized to certify the claim on behalf of Lessee."

23.4.4 The certification may be executed by any person duly authorized to bind Lessee with respect to the claim.

23.5 For Lessee claims of $100,000 or less, the Command, must, if requested in writing by Lessee, render a decision within 60 calendar days of the request. For Lessee-certified claims over $100,000, the Command, must, within 60 calendar days, decide the claim or notify Lessee of the date by which the decision will be made.

23.6 The Command’s, decision shall be final unless Lessee appeals or files a suit as provided in the Act.

23.7 At the time a claim by Lessee is submitted to Command or a claim by Government is presented to Lessee, the parties, by mutual consent, may agree to use ADR. When using arbitration conducted pursuant to 5 U.S.C. 575-580, or when using any other ADR technique that the agency elects to employ in accordance with the ADRA, any claim, regardless of amount, shall be accompanied by the certification described in Paragraph 23.4.3 of this clause, and executed in accordance with Paragraph 23.4.4 of this clause.

23.8 Government shall pay interest on the amount found due and unpaid by Government from (1) the date the Command receives the claim (properly certified if required), or (2) the date payment otherwise would be due, if that date is later, until the date of payment. With regard to claims having defective certifications, as defined in FAR 33.201, interest shall be paid from the date that the Command initially receives the claim. Simple interest on claims shall be paid at the rate, fixed by the Secretary of the Treasury, as provided in the Act, which is applicable to the period during which the Command receives the claim and then at the rate applicable for each 6-month period as fixed by the Treasury Secretary during the pendency of the claim.

23.9 Lessee shall proceed diligently with the performance of Lease, pending final resolution of any request for relief, claim, appeal or action arising under Lease, and comply with any decision of the Command.
 
 

24. COVENANT AGAINST CONTINGENT FEES:

Lessee warrants that no person or agency has been employed or retained to solicit or secure this Lease upon an agreement or understanding for a commission, percentage, brokerage or contingent fee, excepting bona fide employees or bona fide established commercial agencies maintained by Lessee for the purpose of securing business. For breach or violation of this warranty, Government shall have the right to annul this Lease without liability or in its discretion, to require Lessee to pay, in addition to the rental or consideration, the full amount of such commission, percentage, brokerage or contingent fee.

25. LIENS:

Lessee shall promptly discharge or cause to be discharged any valid lien, right in rem, claim or demand of any kind, except one in favor of Government, which at any time may arise or exist with respect to the Leased Property or materials or equipment furnished therefor, or any part thereof, and if the same shall not be promptly discharged by Lessee, or should Lessee or sublessee be declared bankrupt or make an assignment on behalf of creditors, or should the leasehold estate be taken by execution, Government reserves the right to take immediate possession without any liability to Lessee or any sublessee. Lessee and any sublessee shall be responsible for any costs incurred by Government in securing clear title to its property.
 
 

26. TAXES:

Lessee shall pay to the proper authority, when and as the same become due and payable, all taxes, assessments and similar charges which, at any time during the term of this Lease, may be imposed upon Lessee with respect to Leased Premises. Title 10 United States Code, Section 2667(e) contains the consent of Congress to the taxation of Lessee's interest in Leased Premises, whether or not the Leased Premises are in an area of exclusive federal jurisdiction. Should Congress consent to taxation of Government's interest in the property, this Lease will be renegotiated.

27. EASEMENTS AND RIGHTS OF WAY:

This Lease shall be subject to the following:

27.1 Outstanding easements and rights of way for location of any type of facility over, across, in and upon Leased Premises and to the right of Government to grant such additional easements and rights of way over, across, in or upon Leased Premises as it shall determine to be in the public interest; provided that any such additional easement or right of way shall be subject to approval of Lessee, which shall not be unreasonably withheld or delayed, and shall be conditioned on the assumption by the grantee thereof of liability to Lessee for such damages as Lessee shall suffer for property destroyed or property rendered unusable on account of the grantee’s exercise of its rights thereunder. Such easements and rights of way shall include but not be limited to those for water, gas, electricity, steam, telephone, sewer, pipelines, conduits and for any type of facility, including but not limited to those for communications, heating, cooling and power, and shall include the right to enter upon, above, below or through the surface to construct, maintain, replace, repair, enlarge or otherwise utilize Leased Premises for such purpose, without compensation, provided the surface shall be restored to the condition previously existing and provided that interference with Lessee’s use of Leased Premises is minimized to the extent practicable.

27.2 Government has constructed and installed roads, structures, facilities, pipelines, and conduits on Leased Premises. For purposes of this paragraph, these roads, structures, facilities, pipelines, conduits and Installations shall be treated as if they were within easements and rights of way. Lessee shall protect or relocate them in a manner satisfactory to Government should such protection or relocation be required as a result of Lessee’s use of Leased Premises.

27.3 All prior exceptions, reservations, easements, leases or licenses of any kind whatsoever as the same appear of record in the Office of the Recorder of Orange County.

27.4 Government has provided Lessee with copies of existing maps and plot plans in its possession which depict easements and rights of way on Leased Premises.
 
 
 
 

28. ADMINISTRATION:

Except as otherwise provided for under this Lease, Government shall, under the direction of the Command described in paragraph 23.3, have complete charge of the administration of this Lease, and shall exercise full supervision and general direction thereof insofar as the interests of Government are affected.

29. SURRENDER:

Upon the expiration of this Lease or its prior termination, Lessee shall quietly and peacefully remove itself and its property from Leased Premises and surrender the possession thereof to Government. Government may, in its discretion, declare any property which has not been removed from Leased Premises upon expiration or termination provided for above, as abandoned property upon an additional 30 calendar days notice.
 
 
 
 
 
 

30. INTEREST:

30.1 Notwithstanding any other provision of this Lease, unless paid within thirty (30) calendar days, all amounts that become payable by Lessee to Government under this Lease (net any applicable tax credit under the Internal Revenue Code) shall bear interest from the date due. The rate of interest will be the Current Value of Funds rate published by the Secretary of Treasury pursuant to 31 U.S.C. 3717 (Debt Collection Act of 1982).

Government’s obligations under this Lease are subject to the availability of funds appropriated for such purposes. Nothing in this Lease shall be interpreted to require obligations or payments by Government which are in violation of the Anti-Deficiency Act (31 USC 1341).
 
 

32. APPLICABLE RULES AND REGULATIONS:

Lessee shall comply with all Federal, State and local laws, regulations and standards that are applicable or may become applicable to Lessee’s or sublessee’ activities on Leased Premises. These include, but are not limited to, laws and regulations on the environment, construction of facilities, health, safety, food service, water supply, sanitation, use of pesticides, and licenses or permits to do business. Lessee and any sublessee are responsible for obtaining and paying for permits required for its operations under the Lease.
 
 

33. QUIET POSSESSION:

Government covenants and agrees that Lessee, upon paying the rent and all other charges hereunder provided for and observing and keeping all covenants, agreements, and conditions of this Lease on its part to be observed and kept, shall quietly have and enjoy the Leased Premises during the term of this Lease without hinderance or molestation by anyone claiming by or through Government, subject, however, to the exceptions, reservations and conditions of this Lease.

34. FACILITIES REQUIRED BY GOVERNMENT

Government reserves the right of access to and the use of those facilities listed in Exhibit I for the term of this Lease. Lessee shall bill the specific agency described in that exhibit for any costs incurred pursuant to paragraph 10 which are attributable to that agency’s use of the facilities listed.

35. EXHIBITS:

The following exhibits are attached hereto and incorporated by reference herein:

1. Description of Leased Premises.
2. Facilities to be used by Lessee.
3. Joint Inspection and Inventory Report.
4. Executive Summary of Environmental Baseline Survey for Lease.
5. Finding of Suitability to Lease.
6. Work Not Requiring Government Approval.

1. List of Facilities Required by Government

IN WITNESS WHEREOF, the parties hereto have, on the respective dates set forth below duly executed this Lease.
 
 
 
 
 
 

THE UNITED STATES OF AMERICA COUNTY OF ORANGE, CALIFORNIA
 
 
 
 
 
 

By:___________________________ By:_____________________________

Real Estate Contracting Officer Executive Director
 
 
 
 

Date:_________________________ Date:__________________________