HomeMy WebLinkAboutVisit Huntington Beach formerly Huntington Beach Marketing and Visitors Bureau - 2012-01-27 ASSIGNMENT AND ASSUMPTION OF LEASE AGREEMENT
This Assignment and Assumption of Lease Agreement ("Assumption Agreement") is entered into as of
April 3, 2022 , by and between Visit Huntington Beach (formerly Huntington Beach
Marketing&Visitors Bureau),a 501(c)6 California corporation("Assignor"), and the Huntington Beach
International Surfing Museum, a non-profit, 501(c)museum (collectively "Assignee"), and the City of
Huntington Beach,a municipal corporation of the State of California("City").
•
WHEREAS,the City is the owner of the real property located at 411 Olive Avenue,Huntington Beach,CA
commonly referred to as the Surf Museum;
WHEREAS, the Assignor and the City entered into that certain Lease between the City of Huntington
Beach and Visit Huntington Beach to equip, operate and maintain a Surf Museum open to the public(the
"Premises")on January 27,2012(the"Lease"); and
WHEREAS,the Assignor desires to assign all of its right,title and interest in the Lease to the Assignee and
Assignee desires to assume Assignor's obligations under the Lease.
WHEREAS,pursuant to Section 27 of the Lease,the Assignor shall not voluntarily assign the Lease without
the prior written consent of the City;
NOW, THEREFORE, for good and valuable consideration,the receipt and sufficiency of which is hereby
acknowledged,the parties hereby agree as follows:
1. Assignment. Assignor hereby assigns to Assignee all of its right, title and interest in and to the
Agreement including any grants, rights or entitlements of Assignor under the Lease, subject to all of the
terms, covenants, conditions and provisions of the Lease.
2. Assumption. From and after the date hereof, Assignee hereby assumes, covenants and agrees to keep ..
and perform each and every obligation of Assignor under the Lease. Assignee agrees to be bound by each
and every provision of the Leases as if it had executed the same.
3. Assignor's Representations and Warranties. Assignor represents and warrants to Assignee that:
(a) the Lease is in full force and effect on a month-to month tenancy with no holdover penalty
imposed and unmodified except as provided in this Agreement;
(b)Assignor's interest in the Lease is free and clear of any liens,encumbrances or adverse interests
of third parties;
(c) Assignor possesses the requisite legal authority to assign its interest in the Lease as provided
herein.
(d)There are no sums due and owing by Assignor under the Lease as of the effective date hereof,
and there exists no condition of default thereunder.
4. City Consent. To the extent required under the Lease, the City hereby consents to the assignment and
assumption of the Lease from Assignor to Assignee under the terms set forth herein.
5. Indemnification. Assignor and Assign agree to protect, defend, indemnify and hold harmless City, its
officers, elected or appointed officials, employees, agents and volunteers from and against any and all
claims, damages, losses, expenses,judgments, demands and defense costs (including, without limitation,
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costs and fees of litigation(including arbitration) of every nature or liability of any kind or nature) arising
out of or in connection with this Assignment Agreement.
6. Expenses. The parties hereto will bear their separate expenses in connection with this Assignment
Agreement and its performance.
7. Entire Agreement. This Assignment Agreement embodies the entire understanding of the parties hereto
and there are no other agreements or understandings written or oral in effect between the parties relating to
the subject matter hereof unless expressly referred to by reference herein. This Assignment Agreement
may be amended or modified only by an instrument of equal formality signed by the parties or their duly
authorized agents.
8. Governing Law. This Assignment Agreement shall be governed by and construed in accordance with
the laws of the State of California and each of the parties hereto submits to the non-exclusive jurisdiction
of the courts of the State of California in connection with any disputes arising out of this Assignment
Agreement.
9. Successors and Assigns. This Assignment Agreement and the provisions hereof shall be binding upon
and shall inure to the benefit of the successors and assigns of the parties.
10. Attorneys' Fees. In the event of a dispute arising under this Assignment Agreement, the prevailing
party shall not be entitled to recover all reasonable attorneys' fees.
11. Counterparts. This Assignment Agreement may be executed in two or more counterparts, each of
which shall be deemed an original but all of which together shall constitute one and the same
instrument. Facsimile signatures shall be deemed the same as originals.
IN WITNESS WHEREOF, Assignor,Assignee and the City have executed this instrument as of this 3rd
day of April ,2022.
ASSIGNOR: THE CITY: fi".
Visit H ntin on Beach,a.California corporation The City of jiku ach:
By: By: M# .
Name: 6,44,1 fly\,tC.C.F..{Z_ Name: V12S•)U4 -TiZE-yNOCA •
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Title:PP-65 ; CF—O Title: Doz.. OF CopM-owtt'1 [ -t .
Date:+"l •yv Date: l"( - 3'Z2
ASSIGNEE: ASSIGNEE:
Huntington Beach International Surfing Huntington Bea •n ' al Surfing
Museum Museum
By: By:
Name: B/ 71 ,� Name: "i�'7`F1L 7C-2/A,/v,F/V'
Title: C Title: X!'-Cc.'7v- //e1Z_7`7&
Date: /_,54 Date: -3 2
APPROVED AS O FORM
Page 2 of 2 By:
g CHAE ATES
CITY RNEY
CITY OF H GTON BFArµ
,4
Council/Agency Meeting Held:
Deferred/Continued to: _
'gApproved El Conditionally Approved El Denied'City clerk's Signature
[Council Meeting Date: 1/27/2012 Department 1D Number: ED 12-04
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Bob Hall, Deputy City Manager/Director of Economic Development
SUBJECT: Approve Lease Between the City of Huntington Beach and the
Huntington Beach Marketing and Visitors Bureau for 411 Olive Avenue
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue: The City Counc I is asked to approve a five-year lease with the
Huntington Beach Marketing and Visitors Bureau for the property located at 411 Olive
Avenue, for the continuing operation of a surf museum.
Funding Source: Not applicable; the City will receive $250 per month/$3,000 annual in
lease revenue for first year, and $500 per month/$6,000 annual in lease revenue second
year with yearly CPI increases thereafter. Current lease is $10 per year.
Recommended Action: Motion to:
A) Approve and authorize the Mayor and City Clerk to execute the "Lease Agreement
Between the City of Huntington Beach and the Huntington Beach Marketing and Visitors
Bureau for Operation of a Surf Museum at 411 Olive Avenue."
B) Terminate the existing Lease Agreement Between the City of Huntington Beach and
Huntington Beach International Surfing Museum Foundation for the Property Located at
411 Olive Avenue.
Alternative Action(s):
Do not approve the lease agreement with the Huntington Beach Marketing and Visitors
Bureau and provide direction to staff.
xB -1- Item I . - I
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 1/27/2012 DEPARTMENT ID NUMBER: ED 12-04
Analysis: The City Council approved a one-year lease with the International Surfing
Museum Foundation on November 7, 1988, for the operation of a museum at 411 Olive
Avenue. The lease was executed in June 1990, and has been in effect on a month -to -month
basis since that time at a cost of $10 per year. During this time, the City has remained
responsible for all maintenance and improvements while the museum has remained in
operation.
For the past several years, the Huntington Beach Marketing and Visitors Bureau (MVB) has
worked with the International Surfing Museum Foundation in pursuit of opportunities to keep
the museum in Huntington Beach, and partnerships to improve upon the Museum's collection
and reputation as a world -class surfing museum. The MVB's Strategic Destination Plan
contains a specific initiative to investigate a new/expanded, community -based, international
surfing museum, and the goal to proactively support new and expanded visitor attractions,
events, facilities, and related amenities and infrastructure. Housing a museum of this caliber
is an important part of the "Surf City USA" experience that attracts both daytime and
overnight visitors to the community.
It is recommended that 411 Olive Avenue, the site of the International Surfing Museum, be
leased to the Huntington Beach Marketing and Visitors Bureau for a five-year period for the
operation of a surfing museum, and that the existing lease with the International Surf
Museum Foundation be terminated. For the first year, the lease with the MVB requires a
monthly payment to the City of $250, which will increase to $500 in years two through five,
with yearly CPI increases starting in the third year. The City may provide a rent credit not to
exceed the annual amount of rent to assist in upgrades deemed necessary to accommodate
a world -class museum. In addition, the MVB will be permitted to sublease the property to
another nonprofit, including the International Surf Museum itself, and only for the purpose of
operating a surf museum. The benefit to the City in approving this lease is that it guarantees
the operation of a museum in the Downtown, will assist in attracting additional visitors to the
City, and will also reduce the City's financial obligations as it will no longer be responsible for
maintenance of the facility, as that will now be the responsibility of the MVB.
Strategic Plan Goal: Enhance Economic Development
Environmental Status: Not Applicable
Attachment(s):
-2- 1/24/2012 5.05 PM
Item 1. - 2 xB -2-
AL 1 s
LEASE AGREEMENT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
HUNTINGTON BEACH MARKETING AND VISITORS BUREAU
.41
THIS AGREEMENT is made and entered into thisJ day of.ic>
20 / �-- , by and between THE CITY OF HUNTINGTON BEACH, a municipal corporation of
the State of California (hereinafter referred to as "CITY"), and HUNTINGTON BEACH
MARKETING AND VISITORS BUREAU, a California Corporation (hereinafter referred to as
"Lessee").
WHEREAS, City owns certain real property (hereinafter referred to as the "Premises"), in
the City of Huntington Beach, and Lessee desires to lease the aforesaid Premises in the manner
set forth below.
NOW, THEREFORE, the parties covenant and agree as follows:
SECTION 1. SUPERSEDING OF PRIOR LEASE
This Lease shall supersede and replace any and all existing lease agreement(s) for the
Premises currently entered into or in effect between the City and any other entities.
SECTION 2. USE OF THE PREMISES
The Premises are let for the purpose of operation of a surf museum and must be open to
the public. City reserves the right to prohibit the sale of any item or article which is
objectionable or beyond the scope of the merchandise necessary for proper service to the public
or public safety. The surf museum shall be in operation a minimum of three hundred (300) days
during a calendar year. Hours of operation will be agreed upon by the parties.
City, pursuant to the terms of this Lease, grants to Lessee for the purposes stated herein,
the right, privilege and duty to equip, operate and maintain a surf museum open to the public
located on the Premises (hereinafter sometimes referred to as the "Surf Museum"). Lessee shall
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not use the Premises for any other purpose or business. A map depicting the Premises is set forth
in Exhibit "A", which is attached hereto and incorporated herein by this reference. This Lease
is not intended to confer third -party beneficiary status to anyone.
SECTION 3. RESERVATIONS ENCUMBRANCES AND RIGHTS -OF -WAY
(a) City expressly reserves all natural resources in, on, under the Premises, including,
without limitation, oil, coal, natural gas and other hydrocarbons, minerals,
aggregates, timber and other geothermal resources, as well as the right to grant
leases or other contractual arrangements in and over the Premises for the
extraction of such natural resources. However, such leasing or other arrangement
shall be neither inconsistent nor incompatible with the rights or privileges of
Lessee under this Lease.
(b) City expressly reserves a right to enter upon the Premises with as much advance
written, verbal or electronic notice as possible to Lessee for any reason associated
with public health, safety or welfare, or for the protection of life, limb or property.
In all other cases unless otherwise specifically set forth herein, City reserves the
right for such entry but City shall give Lessee at least twenty-four (24) hours
advance written, verbal or electronic notice. City shall have a right of reasonable
access to the Premises across Lessee owned, controlled or occupied lands adjacent
to the Premises, if any, for any purpose associated with this Lease.
(c) City expressly reserves the right to lease, convey, or encumber the Premises, in
whole or in part, for any purpose not inconsistent or incompatible with the rights
or privileges of Lessee under this Lease. In addition, Lessee agrees to subordinate
the Lease to any existing or future City financing regarding the Premises or any
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portion thereof. Lessee also agrees to cooperate and provide any documentation
necessary for City to obtain any such financing.
(d) This Lease is subject to use as a surf museum only.
SECTION 4. TIME OF ESSENCE
Time shall be of the essence of this Lease and each and all of its terms, covenants or
conditions in which performance is a factor.
SECTION 5. TERM
This lease shall be for a term of five (5) years commencing at 12:01 A.M. on the 7N
day of 20�_, and ending at 12:01 A.M. on _7 -7- ,
2017
unless sooner terminated as herein provided. The Lease Agreement may be terminated by either
party for any reason upon thirty days (30) written notice.
SECTION 6. CONDITIONS OF PREMISES AS IS
The taking of possession of the Premises by Lessee shall, in itself, constitute
acknowledgment that the Premises are in good and tenantable condition. Upon taking possession
of the Premises, Lessee agrees to accept the Premises in their presently existing condition, "as
is", and agrees that City shall not be obligated to make any alterations, additions or betterments
thereto.
SECTION 7. DURATION OF PUBLIC FACILITIES
By entering into this Lease, City makes no stipulation as to the type, size, location or
duration of public facilities (excluding the Premises), including, without limitation, any City
parking lots to be maintained on property owned, controlled or occupied by City.
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SECTION 8. ADDITIONS, ALTERATIONS AND REMOVAL
(a) No modifications, alterations or additions to the Premises, including, without
limitation, construction of Improvements or changes to structural design, or
landscape design, shall be constructed or made by Lessee without Lessee first
obtaining the prior written approval of City, which will not be unreasonably
withheld.
(b) Except as provided under this Lease, no alteration or removal of existing
Improvements on or natural features of the Premises shall be undertaken without
Lessee first obtaining the prior written approval of City.
(c) Lessee's obligation to obtain City's prior written approval is separate and
independent of Lessee's obligation to obtain any permits from City, such as,
without limitation, a building permit.
SECTION 9. CITY'S CONTRACT ADMINISTRATOR
City's Economic Development Director, or his or her designee, shall be City's Contract
Administrator for this Lease with the authority to act on behalf of City for the purposes of this
Lease, and all City approvals and notices required to be given herein to City shall be so directed
and addressed.
SECTION 10. RENT
Upon issuance of a Certificate of Occupancy Lessee agrees to pay to City as rent (the
"Rent") for the use and occupancy of the Premise a base rent of $250 a month for the first year,
$500 a month for the second year, $500 a month for each successive year subject to an increase
by the Annual Consumer Price Index. Lessee shall pay the Rent monthly to City at the City
Treasurer's Office, P.O. Box 711, Huntington Beach, California, 92648, or at such other place or
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places as City may from time -to -time designate by written notice delivered to Lessee. Lessee
shall pay the Rent, which must be received by the City Treasurer within ten (10) calendar days
after the end of the month for which the Rent is being paid, or on the next business day if the
eleventh day falls on a weekend or holiday.
SECTION 11. LATE CHARGE AND PENALTY
If the Rent is not received by the City Treasurer within ten (10) calendar days after the
end of the month for which the Rent is being paid, or the next business day if the twentieth day
falls on a weekend or holiday, Lessee shall pay the following late charge and penalty: (1) a late
charge of ten percent (10%) shall be applied to any outstanding balance after any payment
hereunder is due but unpaid; and (2) one and a half percent (1 1/2%) penalty per month shall be
added for each month the Rent is due but unpaid. With respect to any other payments required
by Lessee, a one and a half percent (1 1/2%) penalty per month shall be added for each month
such payment hereunder is due but unpaid.
SECTION 12. INDEMNIFICATION DEFENSE AND HOLD HARMLESS AGREEMENT
Lessee hereby agrees to protect, defend, indemnify and hold harmless City, its officers,
elected or appointed officials, employees, agents and volunteers from and against any and all
claims, damages, losses, expenses, judgments, demands and defense costs (including, without
limitation, costs and fees of litigation (including arbitration) of every nature or liability of any
kind or nature) arising out of or in connection with (1) the use or occupancy of the Premises by
Lessee, its officers, employees or agents, or (2) the death or injury of any person or the damage
to property caused by a condition of the Premises, or (3) the death or injury of any person or the
damage to property caused by any act or omission of Lessee, its officers, employees or agents, or
(4) any failure by Lessee to keep the Premises in a safe condition, or (5) Lessee's (or Lessee's
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agents and/or sublessees; if any) performance of this Lease or its failure to comply with any of its
obligations contained in this Lease by Lessee, its officers, agents or employees except such loss
or damage which was caused by the sole negligence or willful misconduct of City. Lessee shall
hold all Trade Fixtures, personal property and trade inventory on the Premises at the sole risk of
Lessee and save City harmless from any loss or damage thereto by any cause whatsoever, except
such loss or damage which was caused by the sole negligence or willful misconduct of City.
Lessee will conduct all defense at its sole cost and expense and City shall approve selection of
Lessee's counsel, approval not to be unreasonably withheld. This indemnity shall apply to all
claims and liability regardless of whether any insurance policies are applicable. The policy
limits do not act as limitation upon the amount of indemnification to be provided by Lessee.
SECTION 13. WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY
INSURANCE
Lessee acknowledges awareness of Section 3700 et seq. of the California Labor Code,
which requires every employer to be insured against liability for workers' compensation. Lessee
covenants that it shall comply with such provisions prior to the commencement of this Lease.
Lessee shall obtain and furnish to City workers' compensation and employers' liability insurance
in amounts not less than the State statutory limits. Lessee shall require all sublessees and
contractors to provide such workers' compensation and employers' liability insurance for all of the
sublessees' and contractors' employees. Lessee shall furnish to City a certificate of waiver of
subrogation under the terms of the workers' compensation and employers' liability insurance and
Lessee shall similarly require all sublessees and contractors to waive subrogation.
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SECTION 14. GENERAL PUBLIC LIABILITY INSURANCE
In addition to the workers' compensation and employers' liability insurance and Lessee's
covenant to defend, hold harmless and indemnify City, Lessee shall obtain and furnish to City, a
policy of general public liability insurance, including motor vehicle coverage against any and all
claims arising out of or in connection with the Premises. This policy shall indemnify Lessee, its
officers, employees and agents, while acting within the scope of their duties, against any and all
claims arising out of or in connection with the Premises, and shall provide coverage in not less
than the following amount: combined single limit bodily injury and property damage, including
products/completed operations liability and blanket contractual liability, of ,One Million Dollars
($1,000,000.00) per occurrence. If coverage is provided under a form which includes a
designated general aggregate limit, the aggregate limit must be no less than One Million Dollars
($1,000,000.00) for the Premises. This policy shall name City, its officers, elected or appointed
officials, employees, agents, and volunteers as Additional Insureds, and shall specifically provide
that any other insurance coverage which may be applicable to the Lease shall be deemed excess
coverage and that Lessee's insurance shall be primary.
Under no circumstances shall said above -mentioned insurance contain a self -insured
retention, or a "deductible" or any other similar form of limitation on the required coverage.
SECTION 15. PROPERTY INSURANCE
Lessee shall provide before commencement of this Lease and shall obtain and furnish to
City, at Lessee's sole cost and expense, property and fire insurance with extended coverage
endorsements thereon, by a company acceptable to City authorized to conduct insurance business
in California, in an amount insuring for the full insurable value of all Improvements, Trade
Fixtures, personal property whether or not owned or leased by Lessee, and all trade inventory in
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or on the Premises against damage or destruction by fire, theft or the elements. This policy shall
contain a full replacement cost endorsement naming Lessee as the insured and shall not contain a
coinsurance penalty provision. The policy shall also contain an endorsement naming City as an
Additional Insured. The policy shall contain a special endorsement that such proceeds shall be
used to repair, rebuild or replace any such Improvements, Trade Fixtures, personal property
whether or not owned or leased by Lessee, and all trade inventory so damaged or destroyed; and
if not so used, such proceeds (excluding any insurance proceeds for Trade Fixtures, personal
property whether or not owned or leased by Lessee, and trade inventory, but only to the extent
the insurance proceeds specifically cover those items) shall be paid to City. The policy shall also
contain a special endorsement that if the Premises are so destroyed triggering the parties' ability
to terminate as set forth in Section 52 (Destruction) below, and either party elects to terminate
the Lease, the entire amount of any insurance proceeds (excluding such proceeds for Trade
Fixtures, personal property whether or not owned or leased by Lessee and trade inventory, but
only to the extent the insurance proceeds specifically cover those items) shall be paid to City.
The proceeds of any such insurance payable to City may be used, in the sole discretion of City,
for rebuilding or repair as necessary to restore the Premises or for any such other purpose(s) as
City sees fit.
This policy shall also contain the following endorsements:
(a) The insurer shall not cancel or reduce the insured's coverage without (30)
days prior written notice to City;
(b) City shall not be responsible for premiums or assessments on the policy.
A complete and signed certificate of insurance with all endorsements required by this
Section shall be filed with City prior to the execution of this Lease. At least thirty (30) days
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prior to the expiration or termination of any such policy, a signed and complete certificate of
insurance showing that coverage has been renewed shall be filed with City.
SECTION 16. INCREASE IN AMOUNT OF GENERAL PUBLIC LIABILITY
AND PROPERTY INSURANCE
Not more frequently than once every two (2) years, if, in the sole opinion of City, the
amount and/or scope of general public liability insurance in Section 21 above and/or property
insurance coverage in Section 22 above at that time is not adequate, Lessee shall increase the
insurance coverage as reasonably required by City.
SECTION 17. CERTIFICATES OF INSURANCE; ADDITIONAL INSURED
ENDORSEMENTS
Prior to commencement of this Lease, Lessee shall furnish to City certificates of
insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages
as required by this Lease; these certificates shall:
(a) provide the name and policy number of each carrier and policy;
(b) shall state that the policy is currently in force; and
(c) shall promise to provide that such policies shall not be canceled or
modified without thirty (30) days' prior written notice of City; however ten (10)
days' prior written notice in the event of cancellation for nonpayment of
premium, which 10-day notice provision shall not apply to property insurance in
Section 22 above.
Lessee shall maintain the foregoing insurance coverages in force during the entire term of
the Lease or any renewals or extensions thereof or during any holdover period.
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The requirement for carrying the foregoing insurance coverages shall not derogate from
Lessee's defense, hold harmless and indemnification obligations as set forth in this Lease. City
or its representatives shall at all times have the right to demand the original or a copy of any or
all the policies of insurance. Lessee shall pay, in a prompt and timely manner, the premiums on
all insurance hereinabove required.
SECTION 18. INSURANCE HAZARDS
Lessee shall not commit or permit the commission of any acts on the Premises nor use or
permit the use of the Premises in any manner that will increase the existing rates for, or cause the
cancellation of any liability, property, or other insurance policy for the Premises or required by
this Lease. Lessee shall, at its sole cost and expense, comply with all requirements of any
insurance carrier providing any insurance policy for the Premises or required by this Lease
necessary for the continued maintenance of these policies at reasonable rates.
SECTION 19. MAINTENANCE OF PREMISES
Lessee agrees to maintain the entire Premises in good order and repair, at Lessee's sole
cost and expense, during the entire term of this Lease or any renewals or extensions thereof or
during any holdover period, pursuant to the City's maintenance standards. Except as provided
above, Lessee, at its sole cost and expense, shall perform any maintenance and repairs including,
without limitation, facility maintenance and landscape maintenance on the Premises.
Lessee's obligation includes, without limitation, maintaining and operating the Premises
in total in a clean, safe, wholesome and sanitary condition free of trash, garbage or obstructions
of any kind and in compliance with any and all present and future laws, general rules or
regulations of any governmental authority now, or at any time during the entire term of this
Lease or any renewals or extensions thereof or during any holdover period, in force, relating to
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sanitation or public health, safety or welfare, or for the protection of life, limb or property; and
Lessee shall at all times faithfully obey and comply with all laws, rules and regulations
applicable thereto. Lessee, at its sole cost and expense, shall remedy without delay any
defective, dangerous or unsanitary condition(s) caused by Lessee or anyone related thereto.
Provided, however, that Lessee shall have no obligation to repair or maintain sewer lines or
respond to sewer leaks.
Lessee shall have the right to refuse that City paint, stain or seal the Premises' exterior
surfaces as required. All exterior metal surfaces, except the roof, shall be painted with rust
resistant paint no less than once every other year. Any and all graffiti on the Premises shall be
removed by Lessee, at its sole cost and expense, within forty-eight (48) hours of Lessee
receiving notice thereof or of Lessee becoming aware of such graffiti. In addition, with or
without notice from City, Lessee shall, at its sole cost and expense, repair and/or replace any
broken glass within forty-eight (48) hours of its becoming broken, regardless of cause, except by
fault of City. Except as provided above for graffiti and broken glass, Lessee, at its sole cost and
expense and with or without notice from City, shall repair and/or replace all damage or
destruction to the Premises caused by act(s) of vandalism as soon as possible but in no event
later than fourteen (14) days after the date such damage or destruction occurred. Lessee, at its
sole cost and expense, shall repair and/or replace all other damage or destruction to the Premises,
regardless of cause, except by fault of City.
Lessee shall comply with all written notices served by City with regard to the care and
maintenance of the Premises. Any written notice hereunder shall specify the work to be done
and the period of time deemed to be reasonably necessary for completion of such work. Should
Lessee fail to commence making the necessary repairs within seven (7) days after receiving such
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notice, or within twenty-four (24) hours of the glass becoming broken in the case of broken
glass, or fail to diligently proceed to complete the necessary repairs within the period of time
reasonably specified in the City's notice, or within forty-eight (48) hours of the glass becoming
broken in the case of broken glass, or within the forty-eight (48) hour time period for removing
graffiti, or within fourteen (14) days of the date that the vandalism damage or destruction
occurred, City shall proceed to cause the required work to be performed, and Lessee shall
promptly reimburse City for the cost of labor and materials thereof and pay City a penalty on
such costs at the penalty rate set forth in Section I I above from the date the costs were incurred
by City to the date they are reimbursed to City by Lessee.
Lessee hereby expressly waives the right to make repairs at the expense of City and the
benefit, if any, of the provisions of Sections 1941 and 1942 of the California Civil Code relating
thereto.
SECTION 20. RENT CREDIT
A rent credit may be available, at City's sole discretion, for any City approved tenant
improvements made by the Lessee, not to exceed the annual amount of rent. A maximum of
$3,000 rent credit could be taken for the first year, $6,000 for the second and $6,000 plus an
increase as indicated in Section 10 herein. Lessee must submit to City a schedule of
performance regarding the completion of tenant improvements. If schedule of performance is
not met according to City's discretion, the Property reverts back to the City.
City in its sole discretion may decide to give Lessee rent credit if Lessee undertakes (1)
any repair or maintenance obligation of City under this Lease, (2) any work City in its sole
discretion deems necessary and appropriate or (3) any Lessee improvements. Prior to Lessee
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undertaking any such work, City must agree in writing to the amount of and procedures for the
rent credit, the work to be done by Lessee and the cost of such work.
SECTION 21. DAMAGE, DESTRUCTION OR NUISANCE
Lessee shall not commit or permit the commission by others of any damage or
destruction of, on, or to the Premises and/or Surf Museum. Lessee shall not maintain, commit or
permit the maintenance or commission of any nuisance as defined in Section 3479 and/or Section
3480 of the California Civil Code on the Premises; and Lessee shall not use or permit the use of
the Premises for any unlawful purpose.
SECTION 22. TAXES
This Lease may create a possessory interest in property, which is subject to taxation. In
the event that such possessory interest is created, Lessee agrees to be subject to the payment of
and to pay taxes levied on such interest, at its sole cost and expense. Lessee also agrees to pay,
at its sole cost and expense, before they become delinquent all other lawful taxes, assessments or
charges, which at any time may be levied by any governmental agency including, without
limitation, the State, County, City or any tax or assessment levying body upon any interest in this
Lease, or any possessory right which Lessee may have in or to the Premises, by reason of
Lessee's use or occupancy thereof or otherwise, as well as all taxes, assessments, and charges on
Trade Fixtures, personal property and trade inventory in, on, or about the Premises. Upon
request, Lessee shall promptly furnish to City satisfactory evidence establishing such payment.
Lessee shall comply with all laws, regulations and ordinances regarding the collection of taxes
due a government agency.
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SECTION 23. PAYMENT OF OBLIGATIONS
Lessee shall promptly pay, at its sole cost and expense, before they become delinquent,
any and all bills, debts, liabilities and obligations incurred by Lessee in connection with Lessee's
occupation and use of the Premises and/or operation of the Surf Museum. Upon request, Lessee
shall promptly furnish to City satisfactory evidence establishing such payment.
SECTION 24. UTILITIES AND SERVICES
Lessee shall be responsible for the payment of all utility charges, including, without
limitation, gas, electricity, water, telephone service, cable TV service, and the furnishing of all
necessary refuse and garbage containers and the removal and disposal of all rubbish, refuse and
garbage resulting from the operation of the Premises and/or the Surf Museum. All such rubbish,
refuse and garbage removed shall be disposed of in accordance with applicable laws and local
ordinances. Pursuant to Health Department regulations, Lessee must maintain an active refuse
account at all times for the duration of this Agreement. All trash containers and/or trash bins
shall be adequately screened and located to the satisfaction of City. For the purposes of this
Section, sewage disposal shall be construed as a utility. All such charges shall be paid by Lessee
directly to the provider of the service and shall be paid as they become due and payable. Upon
request, Lessee shall promptly furnish to City satisfactory evidence establishing such payment.
SECTION 25. BUSINESS LICENSE
Lessee shall maintain a business license from City during the entire term of this Lease or
any renewals or extensions thereof or during any holdover period.
SECTION 26. SIGNS. ADVERTISING AND APPROVAL OF NAME
Lessee must go through appropriate entitlement processes for all signage requests.
However, City shall have the right to approve in its sole discretion and at any time require Lessee
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to change or remove signs, names, placards, decorations or advertising placed on, or inscribed,
painted or affixed upon the Premises. Should City approve of any sign, name, placard,
decoration or advertising, Lessee shall maintain the same at all times during the entire term of
this Lease or any renewals or extensions thereof or during any holdover period in good
appearance and repair. All signs, names, placards, decorations or advertising must comply with
all requirements of any governmental authority with jurisdiction.
SECTION 27. NO ASSIGNING SUBLEASING OR ENCUMBERING
(a) Prohibition of Assignment. The parties acknowledge that City is entering into
the Lease in reliance upon the experience and abilities of Lessee and its
principals. Consequently, Lessee shall not voluntarily assign, encumber or
otherwise transfer its interest in the Lease or in the Premises, or sublease all or
any part of the Premises, or allow any other person or entity (except Lessee's
authorized representatives) to occupy or use all or any part of the Premises
without the prior written consent of City, which consent shall not be unreasonably
withheld. Provided, however, that City's consent shall not relieve Lessee from
any and all of its obligations, liabilities, duties or responsibilities under this Lease.
Any assignment, encumbrance, occupation or use, sublease or other transfer
without such consent shall be voidable and, at City's sole discretion, shall
constitute a Default of this Lease.
(b) Consent to Transfer. City's consent to any assignment, encumbrance, occupation
or use, sublease or other transfer is subject to Lessee providing City with evidence
satisfactory to City that the proposed, assignee, encumbrancer, occupier or user,
sublessee or other transferee has suitable financial strength, experience and
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character for operation and control of the Premises and the Surf Museum and that
the use of the Premises by the proposed assignee, encumbrancer, occupier or user,
sublessee or other transferee is consistent with that specified herein, and is
commercially reasonable. Any proposed assignee, encumbrancer, occupier or
user, sublessee or other transferee shall agree to abide by the terms and conditions
of the Lease including, without limitation, all the obligations, liabilities, duties
and responsibilities of Lessee, and other conditions imposed upon it pursuant to
law. An approval by City to one assignment, encumbrance, occupation or use,
sublease or other transfer shall not be deemed to be an approval to any other
assignment, encumbrance, occupation or use, sublease or other transfer.
(c) Voluntary assignment defined. Except as otherwise expressly provided herein,
any dissolution, merger, consolidation or reorganization of Lessee, or the sale or
other transfer resulting in a transfer of a controlling percentage of the capital stock
of Lessee (other than a transfer by will, devise, bequest, intestate succession, a
transfer to or between the family members of Lessee, or a transfer to or between
one or more trusts for the benefit of Lessee and/or Lessee's family members,
where applicable) shall be deemed a voluntary assignment.
(d) Exceptions. Notwithstanding the foregoing paragraphs or anything to the
contrary contained herein, City's consent shall not be required for an assignment
or subleasing to an Affiliate, Subsidiary or Successor of Lessee (for purposes
hereof, an "Affiliate," a "Subsidiary" and a "Successor" of Lessee are defined as
follows: (a) an "Affiliate" is any corporation which directly or indirectly controls
or is controlled or is under common control with Lessee (for this purpose,
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"control" shall mean the possession, directly or indirectly, of the power to direct
or cause the direction of the management and policies of such corporation,
whether through the ownership of voting securities or by contract or otherwise),
(b) a "Subsidiary" shall mean any corporation or partnership not less than twenty-
five percent (25%) of whose outstanding stock shall, at the time, be owned
directly or indirectly by Lessee and which is at least as creditworthy as Lessee,
and (c) a "Successor" shall mean a corporation or partnership in which or with
which Lessee is merged or consolidated, in accordance with applicable statutory
provisions for merger or consolidation of corporations, or a corporation or
partnership acquiring a substantial portion of the property and assets of Lessee.
SECTION 28. TERMS BINDING ON SUCCESSORS
All the terms, covenants and conditions of this Lease shall inure to the benefit of and be
binding upon the parties and their successors, including, without limitation, their assignees,
encumbrancers, occupiers or users, sublessees or other transferees. The provisions of this
Section shall not be deemed as a (1) waiver of any of the prohibitions and conditions against
assignments, encumbrances, occupations or uses, subleases or other transfers hereinbefore set forth,
or (2) City's consent thereto. If more than one lessee is a party to this Lease, the obligations of the
lessees shall be joint and several. Even if City's consent is not required, Lessee shall immediately
provide City with written notice of any, assignment, encumbrance, occupation or use, sublease or
other transfer.
SECTION 29. DEFAULT
The occurrence of any one or more of the following events shall constitute a material default
and breach ("Default") of this Lease by Lessee:
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(a) Lessee's failure to make any payment of the Rent or other payment required to be
made by Lessee at the time required for payment under this Lease.
(b) Lessee's failure to obtain or maintain the insurances and/or the security deposit as
required under this Lease.
(c) Lessee's vacating or abandonment of the Premises during the entire term of this
Lease or any renewals or extensions thereof or during any holdover period.
Closure of the Surf Museum for more than a combined total of one hundred
eighty (180) days in a calendar year, excluding any days of closure of the Surf
Museum caused by City, shall be deemed an abandonment of the Premises.
(d) Lessee's violation of Section 19 (Indemnification, Defense and Hold Harmless
Agreement), Section 34 (No Assigning, Subleasing or Encumbering), Section 47
(Hazardous Substances), Section 48 (Nondiscrimination), Section 62 (Conflict of
Interest) or Section 64 (Compliance with Laws).
(e) The insolvency of Lessee as evidenced by a receiver being appointed to take
possession of all or substantially all of Lessee's assets located at or on the
Premises or of Lessee's interest in this Lease, or the making by Lessee of a
general arrangement or assignment for the benefit of creditors, or Lessee's filing a
petition in bankruptcy, whether voluntary or involuntary, or the attachment,
execution or the judicial seizure of substantially all of Lessee's assets located at or
on the Premises or of Lessee's interest in the Lease.
(f) Lessee's failure to observe or perform any other term, covenant, obligation, duty,
responsibility or condition of this Lease to be observed or performed by Lessee
when such failure shall continue for a period of thirty (30) days after City's giving
written notice to Lessee, or such earlier period if specifically set forth in this
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Lease; however, if the nature of such failure is such that more than thirty (30)
days are reasonably required for its cure, then Lessee shall not be deemed to be in
Default if Lessee notifies City of the length of the additional time required to cure
and receives City's written approval of the additional time required, which
approval will not be unreasonably withheld, and commences such cure within
such thirty (30) day period and diligently proceeds with such cure to completion
during such additional time period approved by City.
SECTION 30. REMEDIES
(a) Cumulative Nature of Remedies. In the event of any Default by Lessee, City shall
have the remedies described in this Section in addition to all other rights and
remedies provided by law or equity, to which City may resort cumulatively or in
the alternative:
(1) Reentry without Termination. City may at City's sole discretion reenter
the Premises, and, without terminating the Lease, at any time and from
time to time relet the Premises or any part or parts of them for the account
and in the name of Lessee or otherwise. Any reletting may be for the
remainder of the term or for a longer or shorter period. City may in City's
sole discretion eject all persons or eject some and not others or eject none.
In addition, City may in its sole discretion remove some or all of the Trade
Fixtures, personal property and trade inventory from the Premises. City
may store such removed Trade Fixtures, personal property and trade
inventory in a public warehouse or other location at the sole cost, expense
and risk of Lessee, and for the account of and in the name of Lessee. City
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shall apply all rents from reletting as follows: first, to the payment of
reasonable expenses (including brokers' commissions) paid or incurred by
or on behalf of City in recovering possession, placing the Premises in
good condition, and preparing or altering the Premises for reletting;
second, to the reasonable expense of securing new subtenants; third, to the
fulfillment of Lessee's covenants to the end of the term. City may execute
any leases or subleases made under this provision either in City's name or
in Lessee's name and City shall be entitled to all rents from the use,
operation or occupancy of the Premises. Lessee shall nevertheless pay to
City on the dates specified in this Lease the equivalent of all sums
required of Lessee under this Lease, plus City's expenses, less the
proceeds of any reletting or attornment.
(2) Termination. In the event of a Default by Lessee, City may at City's sole
discretion terminate this Lease by giving Lessee written notice of
termination. In the event City terminates this Lease, City may recover
possession of the Premises (which Lessee shall immediately surrender and
vacate upon demand) and remove all persons therefrom, and Lessee shall
comply with, without limitation, Sections 56 and 57 below. City also shall
be entitled to recover as damages all of the following:
(A) The worth at the time of the award of any unpaid Rent or other
charges which have been earned at the time of termination;
(B) The worth at the time of the award of the amount by which the
unpaid Rent (each month's Rent would be calculated as the
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average Rent for that same month in the preceding years, or if
Lessee did own/operate the Surf Museum in the preceding years,
then each month's Rent would be calculated as the average of all
months Lessee owned/operated the Surf Museum) and other
charges which would have been earned after termination until the
time of the award exceeds the amount of the loss of such rental and
other charges that Lessee proves could have been reasonably
avoided;
(C) The worth at the time of the award of the amount by which the
unpaid Rent (each month's Rent would be calculated as the
average Rent for that same month in the preceding years, or if
Lessee did not own/operate the Surf Museum in the preceding
years, then each month's Rent would be calculated as the average
of all months Lessee owned/operated the Surf Museum) and other
charges for the balance of the term after the time of the award
exceeds the amount of the loss of such rental and other charges that
Lessee proves could have been reasonably avoided;
(D) Any other amount necessary to compensate City for the detriment
proximately caused by Lessee's failure to perform its obligations,
liabilities, duties or responsibilities under this Lease; and
(E) At City's sole discretion, such other amounts in addition to or in
lieu of the foregoing as may be permitted from time to time by
applicable California law.
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As used in Sections 37(a)(2)(A) and (B) above, the "worth at the time of the
award" shall be computed by allowing interest at the rate of twelve percent (12%) per
annum. As used in Section 37(a)(2)(C) above, the "worth at the time of the award" shall
be computed by discounting such amount at the discount rate of the Federal Reserve
Bank of San Francisco at the time of the award, plus one percent (1%). The amount
recoverable by City pursuant to Section 37(a)(2)(D) above shall include, without
limitation, any costs or expenses incurred by City in maintaining or preserving the
Premises after such Default.
(3) Use of Personal Property. City may at City's sole discretion use the Trade
Fixtures, personnel property and/or trade inventory located on, about or
appurtenant to the Premises without compensation and without liability for
use or damage, or store them in a public warehouse or other location at the
sole cost, expense and risk of Lessee, and for the account of and in the
name of Lessee.
(b) Election of Remedy. The election of one remedy for any one item shall not
foreclose an election of any other remedy for another item or for the same item at
a later time.
(c) City's Right to Cure Lessee's Default. Upon continuance of any Default, City
may in its sole discretion, but is not obligated to, cure such Default at Lessee's
sole cost and expense. If City at any time, by reason of such Default by Lessee,
pays any sum or does any act, the sum paid by City plus the reasonable cost of
performing such act, together with a penalty thereon at the penalty rate set forth in
Section 11 above from the date the costs were incurred or the act performed by
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City to the date they are reimbursed to City by Lessee, shall be due as additional
rent not later than five (5) days after service of a written demand therefor on
Lessee, including reasonably detailed documentation of the amount owed. No
such payment or act shall constitute a waiver of Default or of any remedy for
Default or render City liable for any loss or damage resulting from any such act.
(d) Waiver of Rights. Lessee hereby waives any right of redemption or relief from
forfeiture under California Code of Civil Procedure Sections 1174 or 1179, or
under any other present or future law, in the event Lessee is evicted or City takes
possession of the Premises by reason of any Default by Lessee hereunder.
(e) Other Rights of City. No act of City, including, without limitation, City's entry
on the Premises, efforts to relet the Premises, or maintenance of the Premises,
shall be construed as an election to terminate this Lease unless a written notice of
such intention is given to Lessee by City or unless the termination thereof is
decreed by a court of competent jurisdiction. Notwithstanding if City elects to
continue the Lease in full force and effect after a Default by Lessee and to relet
the Premises, City may at any time after such reletting elect to terminate this
Lease for any such Default.
SECTION 31. CUMULATIVE REMEDIES
The remedies given to City in this Lease shall not be exclusive but shall be cumulative
and in addition to all remedies now or hereafter allowed by law or elsewhere provided in this
Lease. City shall have the right to exercise any other right or remedy which City may have at
law or in equity including, without limitation, City's rights under the unlawful detainer laws.
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SECTION 32. WAIVER OF DEFAULT
The waiver by City of any Default by Lessee of any of the provisions of this Lease shall
not constitute a continuing waiver or a waiver of any subsequent Default by Lessee either of the
same or another provision of this Lease.
SECTION 33. CITY'S DEFAULTS/LESSEE'S REMEDY
In the event City fails to perform any material obligation of City under the Lease within
ninety (90) days after receiving written notice from Lessee specifying the nature of such default,
or, if the nature of City's obligation is such that more than ninety (90) days are required for its
performance, if City fails to commence such performance within such ninety (90) day period and
thereafter diligently prosecute the same to completion, then City shall be in default of this
obligation. If City's default materially interferes with Lessee's use of the Premises for its
intended purpose, Lessee shall have the option to terminate the Lease by giving City at least
sixty (60) days' written notice of its intent to terminate. In such a situation, Lessee must still
comply with all of its obligations, liabilities, duties and responsibilities under the Lease,
including, without limitation, paying any Rent due up to the time of termination and surrendering
the Premises pursuant to Sections 56 and 57 below. This remedy of termination is Lessee's sole
and exclusive remedy for a default by City.
SECTION 34. CONSENT
When City's consent/approval is required under this Lease, its consent/approval for one
transaction or event shall not be deemed to be a consent/approval to any subsequent occurrence
of the same or any other transaction or event.
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SECTION 35. HOLDOVER
Should Lessee hold over and continue in possession of the Premises after expiration or
termination of this Lease, with or without the express prior written consent of City, Lessee's
continued occupancy of the Premises shall constitute a month -to -month tenancy, subject to all
the terms and conditions of this Lease, at the same monthly rent plus an additional ten percent
(10%) of of the previous calendar year's annual Rent divided by twelve (12) (or the average
monthly Rent for all months Lessee owned/operated the Surf Museum if Lessee has
owned/operated the Surf Museum for less than one (1) year) or that month's actual Rent,
whichever is greater, and shall not constitute a renewal or extension of the Lease term.
SECTION 36. WAIVER OF CLAIMS
Lessee hereby waives any claim against City, its officers, elected or appointed officials,
employees, agents or volunteers for damage or loss caused by any suit or proceeding directly or
indirectly attacking the validity of this Lease, or any part thereof, or caused by any judgment or
award in any suit or proceeding declaring this Lease null, void or voidable, or delaying the Lease
or any part thereof from being carried out.
SECTION 37. INSPECTION OF PREMISES
Upon at least twenty-four (24) hours advance written, verbal or electronic notice given by
City to Lessee, Lessee shall permit City or City's agents, representatives or employees to enter
the Premises at all reasonable times for the purpose of inspecting, investigating and surveying
the Premises to determine whether Lessee is complying with the terms of this Lease and for the
purpose of doing other lawful acts that may be necessary to protect City's interest in the
Premises or to perform City's duties under this Lease. City also shall have the right in its sole
discretion to do any and all work of any nature necessary for the preservation, maintenance and
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operation of property owned, controlled or occupied by City. Lessee shall be given reasonable
notice when such work becomes necessary, and Lessee shall adjust the operation of the Surf
Museum in such a manner that City may proceed expeditiously.
SECTION 38. PHOTOGRAPHY
Lessee acknowledges and agrees that City may grant permits to third parties engaged in
the production of still and motion pictures and related activities to take photographs
or videos of or on the Premises when such permission shall not interfere with the primary
business of Lessee, all without providing Lessee with notice or requiring consent by Lessee.
SECTION 39. HAZARDOUS SUBSTANCES
Lessee represents and warrants that its use or occupation of the Premises shall not
generate any Hazardous Substance (as defined below in this Section), and it shall not store or
dispose on the Premises nor transport to or over the Premises any Hazardous Substance during
the entire term of this Lease or any renewals or extensions thereof or during any holdover period.
The foregoing restrictions shall not be deemed to restrict or prohibit the use by Lessee of
ordinary cleaning products as customarily used in Lessee's ordinary course of business at the
Surf Museum, provided that Lessee complies with all provisions of law as to the use, storage and
disposal of such products. Lessee further agrees to clean up and remediate any such Hazardous
Substance on the Premises, and agrees to protect, defend, indemnify and hold harmless City, its
officers, elected or appointed officials, employees, agents and volunteers from and against any
and all claims, damages, losses, expenses, judgments, demands and defense costs (including,
without limitation, costs and fees of litigation (including arbitration) of every nature or liability
of any kind or nature) arising out of or in connection with any such Hazardous Substance and
any damage, loss, or expense or liability resulting from any such Hazardous Substance including,
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without limitation, all attorney's fees, costs and penalties incurred as a result thereof except any
release caused by the sole negligence or willful misconduct of City. Lessee will conduct all
defense at its sole cost and expense and City shall approve selection of Lessee's counsel. This
indemnity shall apply to all claims and liability regardless of whether any insurance policies are
applicable. The policy limits do not act as limitation upon the amount of indemnification to be
provided by Lessee. "Hazardous substance" shall be interpreted broadly to mean any substance
or material defined or designated as a hazardous or toxic waste, hazardous or toxic material,
hazardous or toxic or radioactive substance, or other similar term, by any Federal, State or local
environmental law, regulation or rule presently in effect or promulgated in the future, as such
law, regulation or rule may be amended from time to time; and it shall be interpreted to include,
without limitation, any substance which after release into the environment will or may
reasonably be anticipated to cause sickness, death or disease.
SECTION 40. NONDISCRIMINATION
Lessee and its employees shall not discriminate because of race, religion, color, ancestry,
sex, age, national origin or physical handicap against any person by refusing to furnish such
person any accommodation, facility, rental, service or privilege offered to or enjoyed by the
general public. Nor shall Lessee or its employees publicize the accommodation, facilities,
rentals, services or privileges in any manner that would directly or inferentially reflect upon or
question the acceptability of the patronage of any person because of race, religion, color,
ancestry, sex, age, national origin or physical handicap.
In the performance of this Lease, Lessee shall not discriminate against any employee or
applicant for employment, because of race, religion, color, ancestry, sex, age, national origin or
physical handicap. Lessee shall take affirmative action to ensure that applicants are employed
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and that employees are treated during employment, without regard to their race, religion, color,
ancestry, sex, age, national origin or physical handicap. Such action shall include, without
limitation, the following: employment, upgrading, demotion or transfer; recruitment or
recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and
selection for training, including, without limitation, apprenticeship. Lessee shall post in
conspicuous places, available to all employees and applicants for employment, notices setting
forth the provisions of this Section.
Lessee shall permit access to its records of employment, employment advertisements,
application forms, and other pertinent data and records by City, the State Fair Employment
Practices Commission or any other agency with jurisdiction over these matters, for the purpose
of investigation to ascertain compliance with this Section.
City may determine a violation of this Section to have occurred upon receipt of a final
judgment having that effect from a court in an action to which Lessee was a party, or upon
receipt of a written notice from the State Fair Employment Practices Commission or other
government agency with jurisdiction over these matters that it has investigated and determined
that Lessee has violated the Fair Employment Practices Act or other applicable discrimination
law and has issued an order which has become final, or obtained an injunction. In the event of
violation of this Section, City shall have the right to terminate this Lease, and any loss of revenue
sustained by City by reason thereof shall be borne and paid for by Lessee, at its sole cost and
expense.
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SECTION 41. LIENS
Lessee shall keep the Premises free and clear from any and all liens, including, without
limitation, mechanics' or materialmens' liens, claims and demands for work performed,
materials furnished, or operations conducted on or about the Premises or by reason of any use or
occupancy by Lessee, or any person claiming under Lessee. When applicable, Lessee shall
cause a notice of nonresponsibility to be posted and recorded pursuant to California Civil Code
Section 3094.
SECTION 42. INSTALLATION AND REMOVAL OF TRADE FIXTURES
Lessee shall have the right during the entire term of this Lease or any renewals or
extensions thereof, at Lessee's sole cost and expense, to install or affix in, to, or on the Premises
any machinery, equipment and other objects (the "Trade Fixtures"), for use in Lessee's trade or
business as Lessee may deem advisable. Any and all such Trade Fixtures that can be removed
without structural damage to the Premises shall, subject to Section 57 below, remain the property
of Lessee and may be removed by Lessee at any time prior to the expiration or termination of
this Lease, provided Lessee repairs any damage caused by the removal. Upon execution of this
Lease and every anniversary, Lessee shall provide City with a list of all Trade Fixtures on the
Premises.
SECTION 43. DESTRUCTION
Should the Premises be partially destroyed, this Lease shall continue in full force and
effect, and Lessee, at Lessee's sole cost and expense, shall complete the work of repairing and
restoring the Premises to their prior condition providing such work can be accomplished under
all applicable governmental laws and regulations within one hundred eighty (180) days. Should
the Premises be so far destroyed that in City's reasonable judgment they cannot be repaired or
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restored to their former condition within one hundred eighty (180) days, City shall give Lessee
notice of such determination in writing and each party may, in that party's sole discretion:
(a) Continue this Lease in full force and effect in which case Lessee shall repair and
restore, at Lessee's sole cost and expense, the Premises to their former condition;
or
(b) Terminate this Lease by giving the other party thirty (30) days' written notice of
such termination within sixty (60) days after the date that City gives Lessee notice
that the Premises cannot be repaired or restored to their former condition within
one hundred eighty (180) days. In the event that either party elects to terminate
this Lease, the entire amount of any insurance proceeds (excluding such proceeds
for Trade Fixtures, personal property whether or not owned or leased by Lessee
and trade inventory, but only to the extent that the insurance proceeds specifically
cover those items) shall be paid to City. The proceeds of any such insurance
payable to City may be used, in the sole discretion of City, for rebuilding or repair
as necessary to restore the Premises or for any other such purpose(s) as City sees
fit. In addition, if Lessee elects to terminate the Lease, Lessee must still comply
with all of its obligations, liabilities, duties and responsibilities under the Lease,
including, without limitation, paying any Rent due up to the time of termination
and surrendering the Premises, pursuant to Sections 56 and 57 below.
In the event of the damage or destruction of Improvements, Trade Fixtures and/or
personal property located on the Premises not giving rise to a termination of this Lease, Lessee
shall, at its sole cost and expense, replace and repair the same as soon as reasonably possible to
permit the prompt continuation of Lessee's business at the Premises.
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SECTION 44. NO ABATEMENT OF RENT DURING REPAIR WORK
The Rent shall not be abated for the time Lessee is prevented from using the whole or a
portion of the Premises. In addition, Lessee shall not be excused from the payment of taxes,
insurance or any other obligations for the time Lessee is prevented from using the whole or a
portion of the Premises.
SECTION 45. EMINENT DOMAIN
If, during the term of this Lease or any renewals or extensions thereof or during any
holdover period, City's real property (whether held by City in fee simple, an easement interest or
otherwise) and/or the Premises is taken in eminent domain, the entire award (that is, all forms) of
compensation, other than as provided herein, shall belong to and be paid to City. In the event of
condemnation, Lessee shall be entitled to an award of only the following forms of compensation,
if any, from the condemning authority: compensation for loss of business goodwill;
compensation for the value of any of Lessee's Trade Fixtures; compensation for the value of any
of Lessee's personal property; compensation for the value of any of Lessee's trade inventory;
and compensation for relocation benefits as authorized by law. All other forms of compensation,
such as, for example, but not by way of limitation, any bonus value of Lessee's interest in this
Lease, shall belong to and be paid to City. In the event of condemnation, unless Lessee is
allowed by the condemning authority to continue its operations on the Premises, the Lease shall
terminate on the earliest of the following dates: the date the condemning authority obtains a
prejudgment order for possession; the date title to the Premises vests in the condemning
authority; or the date when Lessee is required by the condemning authority to cease its
operations.
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SECTION 46. RELOCATION AND ASSISTANCE. BUSINESS GOODWILL AND
LEASEHOLD BONUS VALUE
Upon expiration or termination of this Lease for any reason, including, without
limitation, if City exercises its Lease buyout option, but excluding eminent domain, Lessee shall
not be entitled to any relocation rights or benefits, business goodwill or bonus value attributable
to this Lease, and Lessee expressly waives any claim to the same.
SECTION 47. QUITCLAIM DEED
Upon expiration or termination of this Lease as provided for herein, including, without
limitation, in the event City exercises its Lease buyout option, Lessee shall execute and deliver to
City within thirty (30) days thereof, a good and sufficient quitclaim deed to the rights and
interests of Lessee in the Premises and the Lease. Should Lessee fail or refuse to deliver to City
this quitclaim deed, City may record in the Orange County Recorder's Office a written notice
reciting the failure of Lessee to execute and deliver this quitclaim deed. The date of recordation
of this notice by City shall be conclusive evidence against Lessee and all persons claiming under
Lessee of the expiration or termination of this Lease and any rights or interests of Lessee in the
Premises and/or the Lease. Lessee also agrees to execute, acknowledge, and deliver to City any
other instrument requested by City as necessary to perfect City's right, title and interest to the
Premises.
SECTION 48. RESTORATION AND SURRENDER OF PREMISES/TITLE TO
IMPROVEMENTS
On expiration or termination of this Lease, including, without limitation, in the event City
exercises its Lease buyout option, Lessee shall, without compensation to Lessee, promptly
surrender and deliver the Premises to City in as good condition as such were at the
Page 32 of 40
12-3178/75071
commencement date of this Lease, reasonable wear and tear excepted. Lessee also shall, without
compensation to Lessee, surrender all Improvements to City in good condition and repair,
ordinary wear and tear excepted, free and clear of all liens and encumbrances. Lessee also shall
remove all Trade Fixtures, personal property and trade inventory. City may in its sole discretion
accept all or any portion of the Premises, as then improved with Improvements and no sum
whatsoever shall be paid to Lessee or any other person; or City may require Lessee to remove all
or any portion of such Improvements, at Lessee's own risk and cost and expense; or City may
itself remove or have removed all or any portion of such Improvements, at Lessee's own risk and
cost and expense. If required by City to do so, in removing any such Improvements, Lessee shall
restore the Premises as nearly as possible to the conditions existing prior to their installation or
construction. All such removal and restoration shall be to the satisfaction of City and shall be
completed within thirty (30) days of the expiration or termination of this Lease; provided,
however, that Lessee shall be considered a holdover tenant (pursuant to Section 42 above) after
expiration or termination of the Lease until the time Lessee completes this removal and
restoration work, including, without limitation, the removal of any Trade Fixtures, personal
property and trade inventory left on the Premises. In addition, any Trade Fixtures, personal
property or trade inventory left on the Premises after the expiration of this 30-day period,
regardless of cause, shall be deemed abandoned by Lessee. In City's sole discretion, it may
choose to do one or more of the following: (1) take any or all of such Trade Fixtures, personal
property and trade inventory as City property; (2) store any or all of such Trade Fixtures,
personal property and trade inventory in a public warehouse or other location at the sole cost,
expense and risk of Lessee, and for the account and in the name of Lessee; or (3) dispose of any
or all of such Trade Fixtures, personal property and trade inventory without any liability to
Page 33 of 40
12-3178/75071
Lessee. In addition, Lessee's indemnification, hold harmless and defense obligations set forth in
this Lease shall apply to such Trade Fixtures, personal property and/or trade inventory, and to
City's actions with respect thereto.
SECTION 49. FORCE MAJEURE - UNAVOIDABLE DELAYS
Should the performance of any act required by this Lease to be performed by either City
or Lessee be prevented or delayed by reason of an act of God, strike, lockout, labor troubles,
inability to secure materials, restrictive governmental laws or regulations, or any other cause
except financial inability not the fault of the party required to perform the act, the time for
performance of the act shall be extended for a period equivalent to the period of delay and
performance of the act during the period of delay shall be excused. Provided, however, that
nothing contained in this Section shall excuse the prompt payment of the Rent or other
consideration by Lessee as required by this Lease or the performance of any act rendered
difficult solely because of the financial condition of the party, City or Lessee, required to
perform the act.
SECTION 50. CITY' S OPTION TO CLOSE THE PREMISES
City may close the Premises without liability and without advance notice to Lessee
therefor at any time as City in its sole discretion deems necessary for the protection of life, limb
or property, or for public health, safety or welfare purposes, or upon reasonable notice to effect
any repair, remodeling or rebuilding deemed necessary by City in its sole discretion. The length
of time of any closing of the Premises by City longer than two (2) weeks during a period when
the Surf Museum would otherwise be open shall extend the term of the Lease by the same
amount of time. If this occurs, Lessee and City shall memorialize this extension in writing.
Page 34 of 40
12-3178/75071
SECTION 51. DELIVERIES OF SUPPLIES
City may establish the days and times deliveries of supplies may be made and advise
Lessee in writing thereof.
SECTION 52. CONFLICT OF INTEREST
Lessee warrants and covenants that no official or employee of City, nor any business
entity in which an official or employee of City is interested, (1) has been employed or retained
by Lessee to solicit or aid in the procuring of this Lease; or (2) shall be employed by Lessee in
the performance of this Lease without the immediate written divulgence of such fact to City. In
the event City determines that the employment of any such official, employee or business entity
is not compatible with such official's or employee's duties as an official or employee of City,
Lessee, upon request of City, shall terminate such employment immediately. For breaches or
violation of this Section, City shall have the right both to terminate this Lease without liability
and, in its discretion, recover the full amount of any such compensation paid to such official,
employee or business entity. No official or employee of City shall have any financial interest in
this Lease in violation of the applicable provisions of the California Government Code.
SECTION 53. NOTICE
Unless specifically providing for verbal or electronic notice, all notices, certificates, or other
communications required to be given hereunder shall be in writing and made in the following
manner, and shall be sufficiently given and deemed received when (a) personally delivered; or (b)
three (3) business days after being sent via United States certified mail — return receipt requested; or
(c) one (1) business day after being sent by reputable overnight courier, in each case to the
addresses specified below; provided that City and Lessee, by notice given hereunder, may designate.
different addresses to which subsequent notices, certificates or other communications will be sent:
Page 35 of 40
12-3178/75071
CITY:
LESSEE:
City of Huntington Beach Huntington Beach Marketing And
ATTN: Economic Development Director Visitors Bureau
2000 Main Street, P.O. Box 190 ATTN: Steve Bone
Huntington Beach, CA 92648 301 Main Street, Suite 208
Huntington Beach, CA 92648-1571
SECTION 54. COMPLIANCE WITH LAWS
Lessee, at its sole cost and expense, shall comply with all statutes, ordinances, regulations
and requirements of all governmental entities, including, without limitation, Federal, State,
county or municipal, relating to Lessee's use and occupancy of the Premises and/or operation of
the Surf Museum whether such statutes, ordinances, regulations and requirements be now in
force or hereinafter enacted. This Lease is expressly subject to the laws, regulations and policies
of City. Lessee shall deliver to City a copy of any notice from any governmental entity received
by Lessee regarding any alleged violation of law regarding the Lease, Premises or the Surf
Museum or from any person allegedly entitled to give notice under any conditions, covenants, or
restrictions binding or affecting the Premises. The judgment of any court of competent
jurisdiction, or the admission by- Lessee in a proceeding brought against Lessee by any
government entity, that Lessee has violated any such statute, ordinance, regulation or
requirement shall be conclusive as between City and Lessee and shall be grounds for termination
of this Lease by City.
SECTION 55. INTERPRETATION OF THIS LEASE
The language of all parts of this Lease shall in all cases be construed as a whole,
according to its fair meaning, and not strictly for or against any of the parties. If any provision of
this Lease is held by an arbitrator or court of competent jurisdiction to be unenforceable, void,
illegal or invalid, such holding shall not invalidate or affect the remaining covenants and
Page 36 of 40
12-3178/75071
provisions of this Lease. No covenant or provision shall be deemed dependent upon any other
unless so expressly provided here. As used in this Lease, the masculine or neuter gender and
singular or plural number shall be deemed to include the other whenever the context so indicates
or requires. Nothing contained herein shall be construed so as to require the commission of any
act contrary to law, and wherever there is any conflict between any provision contained herein
and any present or future statute, law, ordinance or regulation contrary to which the parties have
no right to contract, then the latter shall prevail, and the provision of this Lease which is hereby
affected shall be curtailed and limited only to the extent necessary to bring it within the
requirements of the law.
SECTION 56. SURVIVAL
Terms and conditions of this Lease, which by their sense and context survive the
expiration or termination of this Lease, shall so survive.
SECTION 57. MODIFICATION
No waiver or modification of any language in this Lease shall be valid unless in writing
and duly executed by both parties.
SECTION 58. SECTION HEADINGS
The titles, captions, section, paragraph and subject headings, and descriptive phrases at
the beginning of the various sections in this Lease are merely descriptive and are included solely
for convenience of reference only and are not representative of matters included or excluded
from such provisions, and do not interpret, define, limit or describe, or construe the intent of the
parties or affect the construction or interpretation of any provision of this Lease.
Page 37 of 40
12-3178/75071
SECTION 59. BROKERS
Each party warrants to and for the benefit of the other that it has had no dealings with any
real estate broker or other agent (attorneys excepted) in connection with the negotiation or
making of this Lease.
SECTION 60. INDEPENDENT CONTRACTOR
Lessee is, and shall be, acting at all times in the performance of this Agreement as an
independent contractor herein and not as an employee of City. Lessee shall secure at its own
cost and expense, and be responsible for any and all payment of all taxes, social security, state
disability insurance compensation, unemployment compensation and other payroll deductions for
Lessee and its officers, agents and employees and all business licenses, if any, in connection with
the Lease and/or any services to be performed hereunder.
SECTION 61. ATTORNEY'S FEES
In the event suit is brought by either party to construe, interpret and/or enforce the terms
and/or provisions of this Lease or to secure the performance hereof, each party shall bear its own
attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees
from the non -prevailing party.
SECTION 62. LEGAL SERVICES SUBCONTRACTING PROHIBITED
Lessee and City agree that City is not liable for payment of any subcontractor work
involving legal services, and that such legal services are expressly outside the scope of services
contemplated hereunder. Lessee understands that pursuant to Huntington Beach City Charter
Section 309, the City Attorney is the exclusive legal counsel for City; and City shall not be liable
for payment of any legal services expenses incurred by Lessee.
Page 38 of 40
12-3178/75071
SECTION 63. GOVERNING LAW
This Lease shall be governed and construed in accordance with the laws of the State of
California.
SECTION 64. DUPLICATE ORIGINAL
The original of this Lease and one or more copies hereto have been prepared and signed
in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of
its execution and delivery, be deemed an original. Each duplicate original shall be deemed an
original instrument as against any party who signed it.
SECTION 65. ENTIRETY
The parties acknowledge and agree that they are entering into this Lease freely and
voluntarily following extensive arm's length negotiations, and that each has had the opportunity to
consult with legal counsel prior to executing this Lease. The parties also acknowledge and agree
that no representations, inducements, promises, agreements or warranties, oral or otherwise, have
been made by that party, or anyone acting on that party's behalf, which are not embodied in this
Lease, and that that party has not executed this Lease in reliance on any representation, inducement,
promise, agreement, warranty, fact or circumstance not expressly set forth in this Lease. The Lease,
and the attached exhibits, contain the entire agreement between the parties respecting the subject
matter of this Lease, the Premises, the leasing of the Premises to Lessee, or the lease term created
under this Lease and supercede all prior understandings and agreements, whether oral or in writing
between the parties respecting the subject matter hereof.
Page 39 of 40
12-3178/75071
HUNTINGTON BEACH MARKETING
AND VISITORS BUREA
By: /
print name
ITS: (circle one) Chairman esidentN' e President
F., E
By: - J
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prin name
ITS: (circle one) Secretary/ =Financial4/Asst.
Secretary - Treasurer
CITY OF HUNTINGTON BEACH, a
municipal corporation of the State of
California
REVIEW APPROVED: APPROVED AS TO FORM:
-C
I-
ityAfanager City Attorney
Page 40 of 40
12-3178/75071
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'9C_"I<" CERTIFICATE OF LIABILITY INSURANCE
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THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER($), AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER
IMPORTANT: If the certificate holder Is an ADDITIONAL INSURED, the policy(ies) must be endorsed If SUBROGATION IS WAIVED, subject to
the terms and conditions of the policy, certain policies may require an endorsement A statement on this certificate does not confer rights to the
certificate holder In lieu of such endorsements .
PRODUCER
Brilliant Insurance Services
5900 Can .
Canoga Ave., Suite 460
Woodland Hills, CA 91367
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PHONE .(618)264-0300 M c ! (818) 2 64-0699
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INS S AFFORDING COVERAGE
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MSURERA:C.N.A. Tnauranee
INSURED Huntington Beach Marketing and Visitors
INSURER 8:
INSURE
Bureau
301 Main Street:, Suite #208
INSURER D:
Huntington Beach, CA 92648
INSURER -
INSURER F:
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSR
TR
TYPE OF INSURANCE
ADD
POLICYNUMBER
2099622117
POLICYEFF
1/1/2011
POLICY E P
1/1/2012
LIMITS
EACH OCCURRENCE
2, 000, 000
A
GENERAL LIABILITY
COMMERCIAL GENERAL LIABILITY
CWMSMADE ® OCCUR
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$300,000
MEDEXP (Any oneperson)
$10,000
PERSONAL &ADVINJURY -
$2,000,000
GEN'L AGGREGATE LIMIT APPLIES PER:
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GENERAL AGGREGATE
$ 4 , 000, 000
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DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (Attach ACORD 101, Additional Remarks Schedule, If more apace In required)
411 Olive Ave., Huntington Beach, CA 92648
Cortificate.holder is listed as an additional insured.
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
City Of Huntington Beaoh THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
2000 Main street ACCORDANCE WITH THE POLICY PROVISIONS.
Huntington Beach, CA 92648 AUTHORIZED REPRESENTATIVE
01988.2010 ACORD CORPORATION. All riehts reserved.
AUURD 25 (2010105) The ACORD namo and logo are registered marks of ACORD
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POLICY NUMBER INSURED NAME AND ADDRESS
B 209962211.7 HUNTI'.NGTON REACH MARKETING AND VISITORS BUREAU
301 Main St Ste 208
HUNI'INGTON BEALH, CA 92bg8
POLICY CHANGES
ENDORSEMENT EFFECTIVE 9/10/12
This Change Endorsement changes the Policy. Please read it carefully.
This Change Endorsement is a part of your Policy and takes effect on the
effective date of your Policy, unless another effective date is shown.
The following Additional Insured(s) has (have) been amended
(corrected):
Form 4: SB300095A Title: Additional Insured- Broad Form Vendors
Name and Address: The City of Huntington Beach, its officers,
elected or appointed officials, employees, agents and volunteers
2000 Main Street
Huntington Beach, CA 92648
i
Cl �t79�s�
Chakman of Oho Board
G-56015-B (ED. 11/91)
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retaarry
CNA Connect
Endorsement Declaration
POLICY NUMBER COVERAGE PROVIDED BY FROM - POLICY PERIOD - TO
B 2099622117 TRANSPORTATION INSURANCE COMPANY 11/01/2011 11/01/2012
333 S. WABASH
CHICAGO, IL. 60604
INSURED NAME AND ADDRESS
HUNTINGTON BEACH MARKETING AND VISITORS BUREAU
301 Main St Ste 208
HUNTINGTON BEACH, CA 92648
AGENCY NU1MB= AG CY MUM AND ADDRESS
047746 BRILLIANT INS SERVICES
5900 CANOGA AVENUE, SUITE 460
WOODLAND HILLS, CA 91367
Phone Number: (818)264-0300
BRANCH NUMBER BRANCH MAKE AND ADDRESS
240 WOODLAND HILLS
TRILLIUM WEST TOWERS
6300 CANOGA AVE., STE, 1150W
WOODLAND HILLS, CA 91367
Phone Number. (800)262-8714
This policy becomes effective and expires at 12:01 A.M. standard time at your mailing
address on the dates shown above
This endorsement changes your policy. Please read it carefully.
The Named Insured is a Corporation.
The Endorsement Premium is $709.00 ADDITIONAL
Terrorism Risk Insurance Act Endorsement Premium $14.00 ADDITIONAL
i
Audit Period is Not Auditable
INSURED Page 1 of 3
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POLICY NUMBER iN'SORED P]AME AND ADDRESS
B 2099622117 HUNTINGTON BEACH MARKETING AND VISITORS BUREAU
301 Main St Ste 208
HUNTiNGTON BEACH, CA 92648
PROPERTY COVERAGE LIMIT OF INSURANCE
The following has Changed on your policy effective 06/11/2012
The following has been added to your policy effective 06/11/2012
Coinsurance Coverage: 90%
INSURED Page 2 of 3
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The following location/building has been added to this policy, effective 06/11/2012
LOCATION 2 SUiLDnIG 1
411 OLIVE AVE
HUNTINGTON BEACH, CA 92648
Construction: Frame
Class Description: Lro - Single Tenant, Retail, Noc, No Comml. Cooking
Inflation Guard 3%
PROPERTY COVZRRGZ
Accounts Receivable
Building
Electronic Data Processing
Equipment Breakdown
Fine Arts
Ordinance or Law - Demolition Cost, Increased Cost of Construction
Seasonal Increase: 25%
Sewer or Drain Back Up
Valuable Papers & Records
Chakman of tho Board
SB-146895-A (Ed. 01/06)
LXMIT OIF INSURANCE
$25,000
$287,000
$50,000
$287,000
$25,000
$25,000
$25,000
$25,000
Countersignature
4 j sa«e
INSURED Page 3 of 3
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CNA 333 S Wabash
Chicago, Illinois 60604
�ynumger rnxrr POIfCy.RBIIOd Ta C�verage`is Prov[ded By, Ageiay„
B2099622117 1/01/11 11/01/12 Transportation Insurance Company 047746240
Nametl lnsared,`And Address Agerii <:
HUNTINGTON BEACH bA TIXG AND VISITOR BRILLIANT INS SERVICES
301 Main St Ste 208 5900 CANOGA AVENUE, SUITE 460
HUNTINGTON BEACH, CA 92648 WOODLAND HILLS, CA 91367
** REVISED PAYMENT PLAN SCHEDULE **
THE BILLING FOR THIS POLICY WILL BE
FORWARDED TO YOU DIRECTLY FROM CNA.
THE PREMIUM AMOUNT FOR THIS TRANSACTION
IS $709.00 .
THIS PREMIUM WILL BE INVOICED BY CNA ON
A SEPARATE STATEMENT ACCORDING TO THE
N PAYMENT OPTION YOU SELECT.
i�
ISSUE DATE 06/25/12
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City ®f Huntington Beach
2000 Main Street s Huntington Beach, CA 92648
(714) 536-5227 ® www.huntingtonbeachca.gov
Office of the City Clerk
Joan L. Flynn, City Clerk
October 22, 2012
Huntington Beach Marketing & Visitors Bureau
Attn: Steve Bone
301 Main Street, Ste. 208
Huntington Beach CA 92648-1571
Dear Mr. Bone:
Enclosed for your records is a copy of the fully executed "Lease Agreement Between the
City of Huntington Beach and Huntington Beach Marketing and Visitors Bureau" for the
operation of a Surf Museum located at 411 Olive Ave.
Sincerely,
#,ih L. Flynn, (M
Clerk
JF:pe
Enclosure
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Sister Cities: Anjo, Japan A Waitakere, New Zealand