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HomeMy WebLinkAboutC-3090 (G) - Harbor Island, 829 - Lease 2025 - "Balboa Yacht Basin Office"LEASE AGREEMENT by and between CITY OF NEWPORT BEACH, a California municipal corporation and charter city "City" and HEATHER DICKERSON INSURANCE AGENCY, a sole proprietorship "Tenant" Dated as of September 1, 2025 LEASE AGREEMENT THIS LEASE AGREEMENT ("Agreement") is made and entered into as of the 1 st day of September, 2025 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a municipal corporation and charter city ("City") and HEATHER DICKERSON INSURANCE AGENCY, a sole proprietorship ("Tenant"). City and Tenant are at times individually referred to as "Party" and collectively as "Parties" herein. RECITALS A. By virtue of a 1978 California legislative grant found in Chapter 74 of the Statutes of 1978, as amended, ("Tidelands Grant"), City acts on behalf of the State of California as trustee of certain tidelands located within the City's limits, including certain harbor frontage tidelands near the Balboa Island Channel ("Tidelands"). City is also the fee owner of certain abutting upland property containing parking and other commercial uses, collectively and more commonly known as the "Balboa Yacht Basin," located at 829 Harbor Island Drive, Newport Beach, California, Assessor's Parcel Number 050-210-02. The Balboa Yacht Basin includes a public marina, public restrooms, shipyard, parking lot, garage buildings used for storage, and buildings with residential apartments, offices and a restaurant ("Property"), as legally described and further depicted on Exhibit "A" attached hereto and incorporated herein by reference. The Property includes a seven hundred ninety (790) square foot office, which is depicted on Exhibit "B" attached hereto and incorporated herein by reference ("Premises"). B. City and Tenant desire to enter into this Agreement to allow Tenant to operate an office providing insurance services with a focus on coastal communities, not to include retail sales, at the Premises. C. Pursuant to City Council Policy F-7, the City conducted a review of recent appraisals for similar office facilities and reviewed comparable spaces on the market for rent or lease to determine the maximum or fair market value of the highest and best use rent for the Premises. D. The uses to be made of the Premises are consistent with provisions of the Local Coastal Plan and General Plan of the City, and the terms and conditions in this Agreement are consistent with the provisions of the City Charter and the ordinances of the City. E. The uses to be made of the Premises are consistent with provisions of the Tideland Grant pursuant to which the City obtained title to the Property. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, City and Tenant agree as follows: Lease Agreement - Heather Dickerson Insurance Agency Page 2 1. DEFINITIONS 1.1. General Definitions. As used in this Agreement, the following words and phrases shall have the following meanings: (a) Alteration — any addition or change to or modification of, the Premises made by Tenant, its employees, agents, and contractors including, without limitation, fixtures and signage. (b) Authorized Representative — any officer, agent, employee, or independent contractor retained or employed by either Party, acting within authority given by that Party. (c) Common Area — the areas immediately surrounding the Premises on the Property, which are available for non-exclusive use by City, Tenant, and other tenants and/or users. (d) Delivery Date — the date the City provides Tenant access to the Premises. (e) Expiration — the lapse of the time specified as the Term of this Agreement, including any extension of the Term resulting from the exercise of an option to extend. (f) Good Condition — neat and broom -clean and in substantially the same condition as of the Rent Commencement Date (reasonable wear and tear and casualty excepted), and is equivalent to similar phrases referring to physical adequacy in appearance and for use. (g) Hazardous Materials —shall mean: (i) any substance, product, waste or other material of any nature whatsoever which is or becomes listed, regulated, or addressed pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601 et seq. ("CERLCA"); the Hazardous Materials Transportation Act, 49 U.S.C. Section 5101, et seq.; the Resource Conversation and Recovery Act, 42 U.S.C. Section 6901 et seq. "RCRA"); the Toxic Substances Control Act, 15 U.S.C. Section 2601 et seq.; the Clean Water Act, 33 U.S.C. Section 1251 et seq.; the California Hazardous Waste Control Act, Health and Safety Code Section 25100 et seq.; the Carpenter -Presley -Tanner Hazardous Substance Account Act, Health and Safety Code Sections 78000 et seq.; the California Safe Drinking Water and Toxic Enforcement Act, Health and Safety Code Sections 25249.5 et seq.; California Health and Safety Code Sections 25280 et seq. (Underground Storage of Hazardous Substances); the California Hazardous Waste of Concern and Public Safety Act, Health and Safety Code Sections 25169.5 et seq.; California Health and Safety Code Sections 25501 et seq. (Hazardous Materials Response Plans and Inventory); or the Porter -Cologne Water Quality Control Act, Water Code Sections Lease Agreement - Heather Dickerson Insurance Agency Page 3 13000 et seq., all as they, from time -to -time may be amended or re - codified, (the above -cited statutes are here collectively referred to as the "Hazardous Substances Laws") or any other Federal, State or local statute, law, ordinance, resolution, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning, any hazardous, toxic or dangerous waste, substance or material, as now or at any time hereafter in effect; (ii) any substance, product, waste or other material of any nature whatsoever which may give rise to liability under any of the above statutes or under any statutory or common law theory, including but not limited to negligence, trespass, intentional tort, nuisance, waste or strict liability or under any reported decisions of a state or federal court; (iii) petroleum or crude oil; and (iv) asbestos. (h) Law — any judicial decision, statute, constitution, ordinance, resolution, regulation, rule, administrative order, or other requirement of any municipal, county, state, federal, or other government agency or authority having jurisdiction over the Parties and/or the Premises. (i) Lease Year — refers to successive twelve (12) month periods, commencing with the Effective Date of this Agreement. (j) Maintenance or Maintain — repairs replacement, maintenance, repainting, and cleaning. (k) Person — one (1) or more natural persons, or legal entities, including, without limitation, partnerships, corporations, trusts, estates, associations, or a combination of natural persons and legal entities. (1) Provision — any term, covenant, condition, or clause in this Agreement that defines, establishes, or limits, the performance required or permitted by either Party. (m) Rent — includes rent, late payment penalties, interest, taxes, and other similar monetary amounts and charges payable by Tenant under the Provisions of this Agreement. (n) Rent Commencement Date — the date Tenant begins paying Rent, commencing the first day of the first month following the Effective Date. (o) Successor — assignee, transferee, personal representative, heir, or other Person succeeding lawfully, and pursuant to the provisions of this Agreement, to the rights or obligations of either Party. (p) Termination — the termination of this Agreement, for any reason, prior to Expiration. Lease Agreement - Heather Dickerson Insurance Agency Page 4 2. LEASE OF PREMISES 2.1 City leases the Premises to Tenant and Tenant leases the Premises from City for the Term and on the conditions contained in this Agreement. 2.2 Tenant expressly acknowledges that the legislature of the State of California has placed public trust restrictions on use of the Premises pursuant to the Tidelands Grant as a portion of the Premises constitute filled tidelands. Tenant shall not take any action that would cause the City to be in violation of any provisions of the Tidelands Grant. If the State of California terminates or modifies the Tidelands Grant to prohibit the uses contemplated under this Agreement, this Agreement shall terminate as a result and the parties shall be released from all liabilities and obligations under this Agreement and City shall owe no compensation to Tenant. As of the Effective Date, City confirms the Premises conforms to the Tideland Grant. 2.3 As Is Condition of Premises. Tenant expressly accepts the Premises "as is" and acknowledges that City has made no representations or warranties as to the suitability of the Premises or any construction or improvement, whether or not known to either Party as of the Effective Date. Tenant shall conduct all tests necessary to determine the suitability of the Premises for any proposed construction or improvement, including, without limitation, the amount and extent of any fill, and related factors. Tenant expressly acknowledges that City shall not be liable for any damage or loss resulting from any subsurface or soil condition in, on, or under the Premises or adjacent property. Tenant expressly acknowledges that the Premises may constitute filled tidelands, and City has made no representation or warranty relative to the validity of the Beacon Bay Bill or the power of the legislature of the State of California to remove public trust restrictions on tidelands through legislation. Notwithstanding the foregoing, in the event of any challenge to the right and power of City to lease the Premises for the purposes provided in this Agreement, City agrees, at its sole cost and expense, to use all reasonable efforts to resist and defend against such challenge and to seek a ruling or judgment affirming and upholding the right and power of City to lease the Premises for the purposes provided in this Agreement. 2.4 Tenant further knowledges and accepts Tenant expressly accepts that the Premises is subject to any and all existing easements and encumbrances. City reserves the right to install, lay, construct, maintain, repair and operate such sanitary sewers, drains, storm water sewers, pipelines, manholes and connections; water, oil and gas pipelines; telephone and telegraph power lines and the appliances and appurtenances necessary or convenient in connection therewith in, over, upon, through, across and along the Premises or any part thereof, and to enter the Premises for any and all such purposes. City also reserves the right to grant franchises, easements, rights -of -way and permits in, over, upon, through, across and along any and all portions of the Premises. No right reserved by City in this clause shall be so exercised as to interfere unreasonably with Tenant's operations hereunder or to impair the security of any secured creditor of Tenant. Lease Agreement - Heather Dickerson Insurance Agency Page 5 3. TERM 3.1. Term. The "Term" of this Agreement shall be automatically renewing, consecutive ninety (90) calendar day periods from the Effective Date and shall expire on September 1, 2028, unless terminated in accordance with the other provisions of this Agreement. 3.2. Hold Over. Tenant has no right to retain possession of the Premises or any part thereof beyond the expiration or termination of this Agreement. In the event that Tenant holds over, then the Rent shall be increased to 150% of the Rent applicable immediately preceding the expiration or termination. Nothing contained herein shall be construed as consent by Landlord to any holding over by Tenant. Any holding over by Tenant of the Premises after the expiration or termination of this Agreement shall operate and be construed as a tenancy from month to month on all terms of this Agreement, terminable by either party upon thirty (30) days prior written notice to the other. 3.3. Redevelopment of Property. Should City redevelop the Property or Premises during the Term of the Agreement, which will materially interfere with Tenant's ability to occupy the Premises, City shall provide Tenant with at least ninety (90) calendar days prior written notice of termination of this Agreement. 4. REDEVELOPMENT OF PROPERTY 4.1. During the Term, Tenant understands and acknowledges that the City's redevelopment project at the Property may significantly disrupt Tenant's ability to occupy the Premises. Tenant shall fully cooperate with City, and City's tenants (other than Tenant), contractors, representatives and assignees ("Agents") during the redevelopment. 4.2. Tenant acknowledges that the Term commences after the date that City acquired the Property and Tenant agrees that its occupancy of the Premises is, will be, and shall remain as a "post -acquisition" occupant pursuant to applicable federal, state, and local laws and regulations providing for relocation assistance, benefits, or compensation for moving and for property interests (including without limitation furnishings, fixtures and equipment, goodwill, and moving expenses) (referred to herein as "Relocation Law"), as more fully set forth in Exhibit "C" attached hereto and incorporated herein by this reference. 5. RENT 5.1. Rent. Tenant agrees to pay City for the use and occupancy of the Premises the sum of Three Thousand One Hundred Sixty Dollars and 00/100 ($3,160.00) per month, payable in advance on or before the first day of the each month. Tenant shall commence payment of Rent on the Rent Commencement Date. Lease Agreement - Heather Dickerson Insurance Agency Page 6 5.2. Late Payment. Any payment due from Tenant to City under the provisions of this Agreement which is not paid within five (5) calendar days of the date due shall be subject to a ten percent (10%) late charge plus interest on the amount due at the rate of ten percent (10%) per annum from the date due and payable by the terms of this Agreement until the same shall be paid. All late charges and interest payments hereunder, shall, as incurred, become Rent due under this Agreement. City and Tenant agree that this late charge plus interest represents a reasonable estimate of such costs and expenses and is fair compensation to City for its loss suffered by such late payment by Tenant. 5.3. Rent Adjustments. Rent shall be adjusted annually, on the first day of each Lease Year, to reflect increases in the cost of living as indicated by the Consumer Price Index described below. Rent shall be adjusted if the Consumer Price Index for the Los Angeles — Long Beach — Anaheim, CA Area, All Urban Consumers, All Items ("Index"), as published by the United States Department of Labor, Bureau of Labor Statistics ("Bureau"), increases over the Base Period Index. The initial "Base Period Index" shall be the Index for the calendar month which is four (4) months prior to the month of the Effective Date. The initial Base Period Index shall be compared with the Index for the same calendar month for each subsequent Lease Year ("Comparison Index"). The Comparison Index used for a given year's adjustment calculation will become the Base Period Index for purposes of the next annual Rent adjustment calculation. If the Comparison Index is higher than the Base Period Index, then Rent for the next Lease Year shall be increased by the amount of such percentage change. Should the Bureau discontinue the publication of the above Index, or publish same less frequently, or alter same in some other manner, then the Parties shall adopt a substitute Index or substitute procedure which reasonable reflects and monitors consumer prices. City shall notify Tenant in writing of any annual adjustment pursuant to this Section 5.3. 5.4. Payment Location. All payments of Rent shall be made in lawful money of the United States of America and shall be paid to City in person or by United States' mail, or overnight service, at the Cashier's Office located at 100 Civic Center Drive, P.O. Box 1768, Newport Beach, California, 92658, or to such other address as City may from time to time designated in writing to Tenant. If requested by City, Tenant shall make payments electronically (at www.newportbeachca.gov) or by wire transfer (at Tenant's cost). Tenant assumes all risk of loss and responsibility for late charges and delinquency rates if payments are not timely received by City regardless of the method of transmittal. 5.5. Additional Rent. Any provision in this Agreement that requires Tenant to pay additional amounts classified as "Additional Rent" shall be paid within ten (10) calendar days of City's written demand therefore (unless a different time for payment is expressly provided in this Agreement). Additional Rent does not reduce or offset Tenant's obligations to pay Rent. Lease Agreement - Heather Dickerson Insurance Agency Page 7 6. BUSINESS PURPOSES AND USE OF PREMISES 6.1. "Approved Use". The Premises are to be used by Tenant: (a) Soley and exclusively for the operation of a coastal community insurance sales office, not to include any retail sales; and (b) Tenant may not use the Premises for any other use except with prior written consent of the City. 6.2. Operation of Premises. Tenant shall operate and manage the Premises in a manner comparable to other high -quality businesses providing similar insurance services. Tenant shall not use or permit the use of the Premises in any manner that: (a) creates a nuisance; (b) violates any Law; or (c) is not in compliance with all statutes, laws, permits, use restrictions and regulations of City applicable to the Premises, Tenant, and/or Tenant's use of the Premises. Tenant assumes the risk of and shall cause all its workmen, customers and independent contractors to also comply with all laws regarding their activities at the Premises. Prior to engaging in any conduct on the Premises which is inconsistent with the terms of this Agreement, Tenant must obtain written consent from the City Manager and any required City permits and approvals. 6.3. Sales Restrictions. Tenant shall not display, sell or store merchandise outside the defined exterior walls and permanent doorways of said Premises, and no sale by auction in, upon and from said Premises, whether said auction be voluntary, involuntary, pursuant to any assignment for benefit of creditors or pursuant to any bankruptcy or other solvency proceedings, shall be conducted except such auctions that may be conducted by officers of a court with respect to any vessels in custody of Tenant. 6.4. Advertising Display. Tenant may, at its own expense, place signs in or upon the Premises subject to the prior written consent of the City as to the size, type, design and method of installation and in compliance with the City's sign code regulations and the deed restrictions applicable to the Premises. All signage placed by Tenant on, in or about the Premises shall remain the property of Tenant and shall be removed by Tenant upon Termination or Expiration of this Agreement at Tenant's expense; and any damage caused by removal shall be repaired at Tenant's expense. 6.5. Independent Contractor. City shall have no interest in the business of Tenant, and no liability for the business operations or sales of Tenant, whether or not caused by City's enforcement of City laws and regulations which apply to the Premises and/or Tenant. Nothing in this Agreement shall be deemed to constitute approval for Tenant or any of Tenant's employees or agents, to be the agents or employees of City. Lease Agreement - Heather Dickerson Insurance Agency Page 8 6.6. No Distress Sales. No auction, fire, bankruptcy, "going out of business" or other distress sales of any nature may be conducted on the Premises without the prior written consent of the City Manager or his/her designee. 6.7. Parking. City grants a non-exclusive right to the use of parking area(s) on the Property as noted in Exhibit "A" attached hereto and incorporated herein by reference. City reserves the right to assign parking in the future, but agrees that any such assignment of parking shall not materially diminish access to the Premises. 6.8. Smoking and Vaping. In addition to all other uses prohibited by this Agreement, smoking or vaping is prohibited on the Property and the Premises. "Smoking" means and includes inhaling, exhaling, burning, or carrying any lighted smoking equipment for tobacco or any other weed or plant. "Vaping" means and includes inhaling or exhaling any vaporized liquid or solid, usually from a battery -operated electronic device. 6.9. Balboa Yacht Basin Rules and Regulations. Tenant shall comply with the Balboa Yacht Basin Rules and Regulations attached hereto and incorporated herein as Exhibit "D", which may be amended from time to time. 7. TAXES, LICENSES AND OTHER OBLIGATIONS 7.1. Tenant shall pay before delinquency all lawful taxes, assessments, fees, and charges which at any time may be levied by the State, County, City or any tax or assessment levying body upon any interest in this Agreement or any possessory right which Tenant may have in or to the Property for any reason, as well as all taxes, assessments, fees, and charges on goods, merchandise, fixtures, appliances, equipment, and property owned by it in, on or about the Property. Tenant's obligation to pay taxes and assessments hereunder shall include but is not limited to the obligation to pay any taxes and/or assessments, or increases in taxes and/or assessments arising as a result of the execution of this Agreement. Tenant shall have the right to contest the amount of any assessment imposed against the Property or the possessory interest therein; provided, however, the entire expense of any such contest (including interest and penalties which may accrue in respect of such taxes) shall be the responsibility of Tenant; and provided further, Tenant shall pay under protest such assessment pending the outcome of such proceedings so long as neither the tax parcel nor the Property are in danger of being forfeited. City shall not be required to join in any proceedings to contest any assessment unless the provisions of any law, rule or regulation require such proceedings to be brought by or in the name of the City, which event the City shall join in such proceedings or permit the same to be brought in its name. Tenant will defend, indemnify and save harmless City from any Claims related to such proceedings in accordance with Section 13 below. In accordance with Section 107.6 of the California Revenue and Taxation Code, Tenant is specifically informed, and hereby acknowledges and agrees, that the Property and any fixtures, equipment, or other improvements installed or constructed thereon shall be subject to possessory Lease Agreement - Heather Dickerson Insurance Agency Page 9 interest taxes and assessments, and that such taxes and assessments shall be paid by Tenant prior to delinquency. Tenant shall include a statement in all Subleases to the effect that the interests created therein are derive from the Tenant's interest under this Agreement and that Tenant's interest requires the payment of a possessory interest tax. 7.2. Payment of Obligations. Tenant shall promptly pay, when due, any and all bills, debts, liabilities and obligations incurred by Tenant in connection with Tenant's occupation and use of the Premises including the construction and/or maintenance of the Improvements. 7.3. No Rent Offset. Any payments under this Section shall not reduce or offset Rent payments. City has no liability for such payments. 7.4. License. Tenant shall obtain and maintain in good standing all required licenses and permits required for operation of the business on the Premises, including but not limited to a City business license as required by the Newport Beach Municipal Code. 8. UTILITIES AND REFUSE COLLECTION 8.1. Basic Utilities. City shall pay for electricity, gas, water, and trash service. Tenant shall make all arrangements for and pay for all other utilities furnished to or used on the Premises, including, without limitation, telephone service, cable television, and janitorial service. Tenant bears all risk of interruption, cancellation and/or disruption of utility services on the Premises. 8.2. Refuse Collection. Refuse collection shall occur between 7:00 a.m. and 6:00 p.m. on non -holiday weekdays. Tenant shall keep the Premises free and clean of rubbish and litter and shall deposit accumulated rubbish and litter in containers designated by City. Trash containers shall be kept in an approved enclosed area. Tenant shall comply with the provisions of the Newport Beach Municipal Code and all other laws regarding the use, storage and disposal of Hazardous Materials. In no event shall Tenant allow Hazardous Materials related to the Premises to enter, be disposed of into, seep or otherwise be released into any sewer line, storm drain and/or adjacent bay waterway to the Premises. 9. ALTERATIONS TO THE PREMISES 9.1. Alterations Requiring Building Permits. Any Alteration that requires a building permit from City shall require the written consent of the City Manager or his/her designee, which shall not be unreasonably withheld so long as Tenant's Approved Use is not thereby being changed. Lease Agreement - Heather Dickerson Insurance Agency Page 10 9.2. Non -Structural Alterations Costing Less than $5,000. Tenant shall have the right to make, at its sole expense, such non-structural changes, Alterations, improvements and additions, costing less than $5,000 in and to the interior of the buildings, and Tenant may install therein such trade fixtures and equipment as it may deem advisable for the conduct of its business for the Approved Use of the Premises. Any Alteration costing more than $5,000 requires the prior written consent of the City Manager or his or her designee. 9.3. Quality of Work Performed. All work shall be performed in a good and workmanlike manner, shall substantially comply with the plans and specifications submitted to City and shall comply with all applicable governmental permits and Laws in force at the time permits are issued. All work shall be performed between 7:00 a.m. and 6:00 p.m. on non -holiday weekdays. Any contractors hired by Tenant shall be fully licensed, bonded, and insured. 9.4. Payment of Costs. Tenant shall pay all costs related to the construction of any Alterations by Tenant or its agents. Tenant shall keep the Premises free and clear of all mechanics' liens resulting from construction performed at the direction of Tenant. 9.5. Indemnification and Insurance. Tenant shall indemnify, defend, and hold harmless City, its elected or appointed officers, agents, officials, employees, and volunteers, and any person or entity owning or otherwise in legal control of the Property, except for Tenant, from any and all liability, losses, penalties, damage, costs, attorney fees, expenses, causes of action, claims, or judgments with respect to any damage or damages related to any work performed on the Premises by Tenant. Tenant's contractors and any subcontractors shall obtain insurance in an amount and form to be approved by City's Risk Manager, including workers' compensation insurance as required by law, general liability, automobile liability and builder's risk insurance covering improvements to be constructed, all pursuant to standard industry custom and practice. City, its elected or appointed officers, agents, officials, employees, volunteers, and any person or entity owning or otherwise in legal control of the property shall be named as an additional insured on the contractor's and any subcontractor's policies. City shall promptly provide Tenant with a copy of any claim filed by any third party with respect to work performed by Tenant. City has no obligation to or liability to Tenant incident to City's approval of Tenant's plans or issuance of permits for any improvements to the Premises. 9.6. Disposition of Alterations at Expiration or Termination. Any Alterations made to the Premises shall remain on, and be surrendered with, the Premises on Expiration or Termination of this Agreement (excluding Tenant's fixtures, equipment, furniture, and movable decorations). However, City may elect, not less than thirty (30) calendar days prior to Expiration or Termination of this Agreement, to require Tenant to remove, at Tenant's sole cost, any Alterations that Tenant has made to the Premises, except those Alterations existing as of the Effective Date of this Agreement or approved by City. If City requires removal of Alterations, Tenant shall, at its sole cost, remove the Alterations and restore the Premises to its condition prior to installation of such Lease Agreement - Heather Dickerson Insurance Agency Page 11 Alterations, ordinary wear and tear excepted, before the last day of the Term, or within thirty (30) calendar days after notice is given, whichever is later. Prior to Expiration or within fifteen (15) calendar days after Termination of this Agreement, Tenant may remove any movable partitions, machinery, equipment, furniture, and trade fixtures previously installed by and solely paid for by Tenant, provided that Tenant repairs any damage to the Premises cause by removal and the structural future of the foundation and bulkhead areas of the Premises are not thereby worsened by such Tenant removal. 10. REPAIRS AND MAINTENANCE OF PREMISES 10.1. Maintenance and Repair by Tenant and City. Tenant agrees that it shall keep the non-structural portion of the Premises in Good Condition throughout the Term at its sole cost, and without expense to the City. City may perform Maintenance or repairs in the event Tenant fails to commence required Maintenance or repairs within the time provided by City in the written notice requesting such maintenance or repair (which shall not be less than five (5) calendar days unless and in case of emergency or urgent situation). Absent an emergency or urgent situation, should the Maintenance or repair required by the City's written notice require more than five (5) calendar days to commence or complete, Tenant must provide City with adequate assurance of due performance within five (5) calendar days of receipt of City's written notice requesting such Maintenance or repair or City may commence such requested repairs or Maintenance. The cost of any Maintenance or repairs by the City pursuant to this Subsection shall be payable as Additional Rent upon billing by City with the Tenant's next monthly Rent payment. 10.2. Entry by City. City and its Authorized Representatives may enter upon and inspect the Premises at any reasonable time for any lawful purpose. In case of emergency, City or its Authorized Representatives may enter the Premises by the master key if Tenant is not present to open and permit an entry. During entry, City and its Authorized Representatives shall exercise reasonable care relative to the Premises and to Tenant's property. Any entry to the Premises by City shall not be construed as a forcible or unlawful entry into, or a detainer of, the Premises, or an eviction of Tenant from the Premises or any portion thereof. 11. NO HYPOTHECATION Tenant explicitly covenants and agrees not to hypothecate, pledge, mortgage, assign as collateral, or otherwise encumber Tenant's leasehold interest in the Premises or any part thereof, whether voluntarily or by operation of law. Any attempted hypothecation or encumbrance in violation of this Section shall be null and void and shall constitute an immediate Event of Default under this Agreement, entitling Landlord to exercise all rights and remedies available at law or in equity. Lease Agreement - Heather Dickerson Insurance Agency Page 12 12. LIENS Tenant shall, at all times, indemnify and hold City harmless from any and all claims for labor or materials in connection with the construction, repair, alteration, or installation of any structure, capital improvement, equipment or facilities on the Property, and from the costs of defending against such claims, including reasonable attorney's fees. In the event any lien or stop notice is imposed or recorded on the Property as a result of the construction, repair, alteration of the Premises, installation of any equipment, Tenant shall, within thirty (30) calendar days from the filing of the lien or stop notice: (a) Record a valid release of lien or stop notice; (b) Deposit sufficient cash with City to cover the amount of the claim or lien or stop notice in question and authorize payment to the extent of said deposit to any person or entity that obtains any judgment with respect to said claim or lien or stop notice; (c) Furnish a set aside letter from Tenant's construction lender, in form and substance reasonably satisfactory to City, setting aside sufficient funds from Tenant's construction loan for the satisfaction of such lien; or (d) Procure and record a bond in accordance with the provisions of California Civil Code Section 8424, or other applicable statute, which frees the Property from the claim of lien or stop notice and from any action brought to foreclose the lien or stop notice. 13. INDEMNITY AND EXCULPATION; INSURANCE 13.1. Hold Harmless Clause. Tenant agrees to indemnify, defend and hold harmless the City, its Council, Boards, Commissions, Committees, officers, agents, officials, employees, volunteers and any person or entity owning or otherwise in legal control of the Property (collectively the "Indemnified Parties") from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, actions, causes of action, suits, judgments, fines, penalties, liabilities, losses, damages, costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a "Claim"; collectively, "Claims"), which may arise from or in any manner relate (directly or indirectly) to this Agreement, the Tenant, Tenant's employees, contractors or subcontractors, or agents on the Premises, or the occupation and use of the Premises, specifically including, but not limited to, any claim, liability, loss, or damage arising by and Tenant assumes all corresponding risk because of: (a) The death or injury of any Person caused or allegedly caused by the condition of the Premises or an act or omission of Tenant or an Lease Agreement - Heather Dickerson Insurance Agency Page 13 agent, contractor, employee, servant, sublessee or concessionaire of Tenant; and (b) Any work performed on the Premises or materials furnished to the Premises at the request of Tenant or any agent or employee of Tenant, with the exception of Maintenance performed by City; and (c) Tenant's failure to perform any provision of this Agreement or to comply with any requirement of Law or any requirement imposed on the Premises by any duly authorized governmental agency or political subdivision. 13.2. Indemnified Parties shall not be liable to Tenant for any damage to Tenant or Tenant's property, goodwill, increased Tenant operating costs, or loss of business or income by Tenant from any cause other than the sole negligent, or willful acts of Indemnified Parties. Except as otherwise expressly provided in this Agreement, Tenant releases and also waives all claims against Indemnified Parties for damages arising for any reason otherthan the gross negligent, intentional orwillful acts of Indemnified Parties. Indemnified Parties shall not be liable to Tenant for any damage to the Premises, Tenant's property, Tenant's goodwill, or Tenant's business income, caused in whole or in part by acts of nature including, without limitation, waves, wind and tidal flows. 13.3. This indemnity Section shall apply to all claims and liability regardless of whether any insurance policies are applicable. 13.4. Tenant's obligations in this Section 13 shall survive the expiration or earlier termination of this Agreement. 13.5. Insurance. Without limiting Tenant's indemnification of City, Tenant shall maintain insurance in the types and amounts specified in Exhibit "E," attached hereto and incorporated herein by this reference. 14. DAMAGE OR DESTRUCTION OF PREMISES 14.1. Destruction of Premises. If the Premises are totally or partially destroyed, rendering the Premises or any portion thereof totally or partially inaccessible or unusable, Tenant shall restore the Premises, at Tenant's sole cost and effort, to substantially the same condition as immediately prior to such destruction (including all trade fixtures, personal property, improvements and Alterations as are installed by Tenant, which shall be replaced by Tenant at its expense). Alternatively, Tenant may elect to terminate this Agreement, provided the damage was not caused by Tenant, without any liability from the City, by giving written notice of such election to City within sixty (60) calendar days after the date of the occurrence of any casualty if the cost of the restoration exceeds the amount of any available insurance proceeds, if the damage has been caused by an uninsured casualty or event, or if Tenant reasonably estimates that repairs of the Lease Agreement - Heather Dickerson Insurance Agency Page 14 Premises will take more than six (6) months. Upon such termination, insurance proceeds applicable to reconstruction of the Premises (excluding Tenant's personal property therein) shall be paid to City and Tenant shall have no further liability or obligations, excluding any indemnification or hold harmless provisions under this Agreement. 14.2. Replacement of Tenant's Property. In the event of the damage or destruction of improvements located on the Premises not giving rise to Tenant's option to terminate this Agreement, Tenant shall, at its own expense, replace and repair all Tenant's trade fixtures, equipment, machinery, furnishings, furniture and inventory as soon as reasonably possible to permit the prompt continuation of Tenant's business at the Premises for the Approved Use. 14.3. Destruction of Property. In the event that all or a portion of the Property or access to the Property in areas to be maintained by the City either under this Agreement or because City owns such other areas, is damaged, deteriorates or destroyed by fire or any other casualty not attributable to Tenant nor covered by Tenant insurance and as a result the Premises or a material portion of the Premises becomes inaccessible or commercially unusable for the Approved Use, and the damage or destruction cannot reasonably be repaired within twelve (12) months after the date of the casualty, City shall have the right, by notice to Tenant within sixty (60) calendar days of such casualty, to either: (a) Terminate this Agreement by giving Tenant written notice (which notice shall be given, if at all, within thirty (30) calendar days following the date of the casualty), in which case this Agreement shall be terminated thirty (30) calendar days following such City notice; (b) Confirm City's intention to repair such damage as soon as reasonably possible at City's expense, in which event this Agreement shall continue in full force and effect; however, Rent shall be abated in accordance with the procedures set forth in Section 15, below. Tenant may terminate this Agreement by giving City written notice at any time prior to the commencement of repairs if City agrees to repair the Property pursuant to this Section 14.3(b) and City fails to commence repairs within one hundred twenty (120) calendar days after giving Tenant written notice of its intention to repair. In such event, this Agreement shall terminate as of the date of notice from Tenant to City, and City shall have no further liability to Tenant under this Agreement; or (c) City has no liability to Tenant concerning such casualty or City election to repair or not repair. Lease Agreement - Heather Dickerson Insurance Agency Page 15 15. ABATEMENT OF RENT General Rule. In the event of damage or destruction of the Premises or damage to the Property that impacts the Premises and this Agreement is not terminated, Tenant shall continue to utilize the Premises for the operation of its business for the Approved Use to the extent it may be practicable and commercially reasonable. Rent shall abate in proportion to the area of the Premises that is rendered unusable for the Approved Use. The abatement of Rent shall commence on the date that use of the Premises is impacted and continue until the completion of those repairs necessary to restore full use of the Premises and Tenant's re -opening of the Premises. Tenant's obligation to pay taxes, assessments, license fees and other charges pursuant to this Agreement shall not be abated or reduced. Rent shall not abate if the damage or destruction to the Premises is the result of the negligence or willful act or omission of Tenant or its employees, officers, or agents. Tenant's right to abatement of Rent is contingent on payment of insurance proceeds, if any, equal to the amount of Rent pursuant to coverage required by Section 13.5, above. 16. PROHIBITION AGAINST VOLUNTARY ASSIGNMENT, SUBLETTING AND ENCUMBERING 16.1. Prohibition of Assignment. City and Tenant acknowledge that City is entering into this Agreement in reliance upon the business experience and abilities of Tenant to operate the Premises for the Approved Use. Consequently, Tenant shall not voluntarily delegate, assign or encumber its interest in this Agreement or in the Premises, or sublease substantially all or any part of the Premises, or allow any other person or entity to occupy or use all or any part of the Premises without the prior written consent of City. City's consent to any assignment or other transfer is subject to Tenant providing City with evidence reasonably satisfactory to City that the: (a) proposed transferee has financial strength and experience comparable to Tenant; (b) the use of the Premises by the proposed transferee is consistent with the terms of this Agreement and is for the Approved Use or a use approved by the City; (c) proposed transferee agrees to assume all current and future Tenant obligations and agrees that the City is not in default of the Agreement; and (d) Tenant is not then in material default of this Agreement. Except as otherwise expressly provided herein, any dissolution, merger, consolidation, reorganization of Tenant, or the sale or other transfer resulting in a transfer of a controlling percentage of the capital stock of Tenant, shall be deemed a voluntary assignment requiring City's consent above. However, the sale or transfer of a controlling percentage of the capital stock of Tenant pursuant to a public offering(s) of equity or debt instruments issued by Tenant, or other transfers of publicly traded capital stock or debt instruments shall not constitute a voluntary assignment and shall not require City's consent or approval if there is no change in the management of Tenant's business and if such successor otherwise maintains the Approved Use and satisfies the prior experience and business expertise tests above and is at least as creditworthy as Tenant at the time this Agreement is signed. The phrase "controlling percentage" means the ownership of, or the right to vote, stock possession of at least fifty percent (50%) of the total combined voting Lease Agreement - Heather Dickerson Insurance Agency Page 16 power of all classes of Tenant's capital stock issued, outstanding, and entitled to vote for the election of directors, except for ownership of publicly traded shares, warrants or similar equity interests in Tenant traded on a national exchange or over-the-counter markets. 16.2. Exceptions. Notwithstanding the foregoing paragraphs or anything to the contrary contained herein, City's consent shall not be required for a transfer or assignment of any stock or interest by a shareholder or member if the Approved Use of the Premises is maintained, if such transfer is to a spouse, children or grandchildren or an assignment or subletting to an Affiliate, Subsidiary, or Successor of Tenant defined as follows: (a) An "Affiliate" is any corporation or other entity which directly or indirectly controls or is controlled or is under common control with Tenant (for purposes of this Section, "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 or other entity, whether through the ownership of voting securities or by contract or otherwise); (b) A "Subsidiary" shall mean any corporation or other entity not less than twenty five percent (25%) of whose outstanding stock shall, at the time, be owned directly or indirectly by Tenant and which is at least as creditworthy as Tenant; and (c) A "Successor" shall mean a corporation or other entity in which or with which Tenant is merged or consolidated, in accordance with applicable statutory provisions for merger or consolidation of corporations or a corporation or other entity acquiring a substantial portion of the property and assets of Tenant. 16.3. Continuing Effect. City's consent to any assignment, encumbrance, or sublease shall not relieve Tenant from its obligations or liabilities under this Agreement nor act as a waiver of the requirement that such consent be obtained to any subsequent assignment, encumbrance or sublease. 17. TENANT'S DEFAULT/CITY'S REMEDIES 17.1. Default by Tenant. The occurrence of any one (1) or more of the following events shall constitute a default and material breach of this Agreement by Tenant: (a) Failure of Tenant to pay Rent or any other payment required by this Agreement, as and when due, when such failure shall continue for a period of ten (10) calendar days after written notice of default from City to Tenant; Lease Agreement - Heather Dickerson Insurance Agency Page 17 (b) Except as specified in 17.1(a) above, the failure of Tenant to observe or perform any of the covenants, conditions or provisions of this Agreement to be observed or performed by Tenant where such failure shall continue for a period of thirty (30) calendar days after written notice thereof from City to Tenant; provided, however, that if the nature of Tenant's default is such that more than thirty (30) calendar days are reasonably required for its cure, then Tenant shall not be deemed to be in default if Tenant commences such cure within said thirty (30) calendar day period and thereafter diligently prosecutes such cure to completion; (c) Tenant becomes a "debtor" as defined in 11 U.S.C. Section 101 or any successor statute thereto, or should any adjudications in bankruptcy be rendered against Tenant, or should Tenant take or have taken against it, in any court pursuant to any statute either of the United States or of any State, a petition in bankruptcy or insolvency or for reorganization or for the appointment of a receiver or trustee of all or a portion of Tenant's property, and should the same not be dismissed within sixty (60) calendar days thereafter; (d) The making by Tenant of any general arrangement or assignment for the benefit of creditors; (e) The vacating or abandonment of the Premises by Tenant for a period of thirty (30) successive calendar days, without the prior written permission of the City's Authorized Representative; excluding closures caused by any force majeure, casualty, or condemnation, or by remodeling, reconstruction, alteration, repairs or permitted closures set forth under this Agreement); (f) The appointment of a trustee or receiver to take possession of substantially all of the assets of Tenant's assets located at the Premises or of Tenant's interest in this Agreement, where such appointment is not discharged within sixty (60) calendar days; or (g) The attachment, execution or the judicial seizure of substantially all of Tenant's assets located at the Premises or of Tenant's interest in the Agreement, where such seizure is not discharged within sixty (60) calendar days. 17.2. Remedies. (a) Cumulative Nature of Remedies. If any default by Tenant shall continue without cure beyond the time permitted under this Lease Agreement - Heather Dickerson Insurance Agency Page 18 Agreement, 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 to cumulatively or in the alternative. (b) Re-entry without Termination. City may re-enter the Premises, and, without terminating this Agreement, re -let all or a portion of the Premises. City may execute any agreements made under this provision in City's name and shall be entitled to all rents from the use, operation, or occupancy of the Premises. Tenant shall nevertheless pay to City on the dates specified in this Agreement the equivalent of all sums required of Tenant under this Agreement, plus City's expenses in conjunction with re -letting, less the proceeds of any re - letting or atonement. No act by or on behalf of City under this provision shall constitute a termination of this Agreement unless City gives Tenant specific written notice of termination. (c) Termination Agreement. City may terminate this Agreement by giving Tenant written notice of termination with a specified termination date. In the event City terminates this Agreement, City may recover possession of the Premises (which Tenant shall surrender and vacate upon demand) and remove all persons and property. City shall be entitled to recover the following as damages: 17.2.c.1. The value of any unpaid Rent or other charges that are unpaid at the time of Termination; 17.2.c.2. The value of the Rent and other charges that would have accrued after termination less the amount of Rent and charges the City received or could have received through the exercise of reasonable diligence as of the date of the award, provided, however, that City shall use its best efforts to re -lease the Premises and upon the City's re -leasing the Premises Tenant shall be released from all further liability for Rent and other charges that would have accrued after termination; 17.2.c.3. Any other amount necessary to reasonably compensate City for the detriment proximately caused by Tenant's failure to perform its obligations under this Agreement; and 17.2.c.4. At City's election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time -to -time by applicable California law. City shall be entitled to interest at the rate of ten percent (10%) per annum on all Lease Agreement - Heather Dickerson Insurance Agency Page 19 Rent and other charges from the date due or the date they would have accrued. City shall also be entitled to an award of the costs and expenses incurred by City in maintaining or preserving the Premises after default, preparing the Premises for re -letting, or repairing any damage caused by an act or omission of Tenant. 17.2.c.5. City may exercise any other right or remedy which City may have at law or equity. 17.3. Use of Tenant's Personal Property. In the event Tenant is in default past applicable notice and cure periods, City may use Tenant's personal property and any trade fixtures located on the Premises or any of such property and fixtures without compensation or liability to Tenant for use or damage. In the alternative, City may store the property and fixtures at the cost of Tenant. 17.4. City's Right to Cure Tenant's Default. Upon continuance of any default beyond applicable notice and cure periods, City may, but is not obligated to, cure the default at Tenant's cost. If City pays any money or performs any act required of, but not paid or performed by, Tenant after notice, the payment and/or the reasonable cost of performance shall be due as Additional Rent not later than ten (10) calendar days after service of a written demand accompanied by supporting documentation upon Tenant. 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 performance. 17.5. Waiver of Rights. Tenant 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 Tenant is evicted or City takes possession of the Premises by reason of any default by Tenant. 18. CONDEMNATION 18.1. Termination of the Agreement. Tenant or the City shall have the right to terminate this Agreement as of the date a public agency with lawful authority to condemn obtains possession or title to ten percent (10%), or more of the land area at the Premises, or the condemnation materially affects the conduct of Tenant's business in the Premises, or the Premises will no longer be suitable for the conduct of Tenant's business for the Approved Use. In the event of Termination pursuant to this subsection, Rent shall be prorated to the date of Termination, any unearned Rent shall be refunded to Tenant and Tenant shall have no further obligations under this Agreement. Tenant shall not grant a right of entry to any condemnor without the written consent of City. 18.2. No Termination of Agreement. If this Agreement is not terminated under Section 18.1, above, then this Agreement shall terminate as to the portion Lease Agreement - Heather Dickerson Insurance Agency Page 20 of the Premises taken upon the date which possession of said portion is taken, but this Agreement shall continue in force and effect as to the remainder of the Premises. Tenant shall, in the event of a taking of any portion of the Premises, be entitled to a reduction in the Rent in reasonable proportion to the area of the Premises so taken verses its impact on Tenant's continued operations for the Approved Use. 18.3. Allocation of Award. In the event that an award is made for an entire or partial taking or for damage to the Premises or any interest therein in any action in direct or inverse condemnation or in the event of a taking under the power of eminent domain, the Parties hereto agree that their respective rights to the award or compensation paid shall be as follows: (a) City shall be entitled to that Portion of the award received for the taking of the real property within the Premises, the value of this leasehold, including all buildings and other improvements to which City is entitled on Expiration or Termination of this Agreement, and for severance damages. (b) Tenant shall be entitled to any award that may be made for the taking of or injury to Tenant's business and profits, including any amount attributable to Tenant's personal property, fixtures, installations, or improvements in or on the Premises, Tenant's relocation expenses, but excluding any "bonus value" attributable to this Agreement. (c) Any interest payable on the total award shall be divided between City and Tenant in the same ratio as are the awards granted to them pursuant to the other provisions of this Section. 19. SUBJECT TO STATE LANDS COMMISSION GRANT The Premises are located on property that may be the subject of a grant from the State of California to the City that is administered by the State Lands Commission. Tenant shall not take any action that would cause the City to be in violation of any provisions of that grant. If the State Lands Commission terminates this grant for any reason or prevents the Premises from being used for the Approved Use, this Agreement terminates as a result and the Parties shall be released from all liabilities and obligations, excluding any outstanding Rent, indemnification or hold harmless provisions, under this Agreement. 20. WASTE OR NUISANCE Tenant shall not commit or permit the commission of any waste on the Premises. Tenant shall not maintain, commit, or permit any nuisance as defined in Section 3479 of the California Civil Code on the Premises. Tenant shall not use or permit the use of the Premises for any unlawful purpose. Lease Agreement - Heather Dickerson Insurance Agency Page 21 21. NO CONFLICTS OF USE Tenant shall not use, occupy or permit any portion of the Premises or Property to be used or occupied in violation of any Law. City represents and warrants that, to the best of City's knowledge: (i) Tenant's use of the Premises does not conflict with applicable Laws, and City knows of no reason why Tenant would be unable to obtain all required permits, licenses and approvals from the appropriate governmental authorities; (ii) the Premises is not in violation of any environmental laws, rules, or regulations and Tenant's contemplated uses will not cause any such violation; and (iii) the Premises is free of any and all Hazardous Materials as of the Delivery Date. 22. HAZARDOUS MATERIALS 22.1. From the Effective Date and throughout the Term, Tenant shall not use, occupy, nor permit the use of, any Hazardous Material in the construction, reconstruction or renovations of, or additions to the Project in violation of any applicable law, regulation, code or ordinance. Tenant shall, at its expense, comply, and require each of its Affiliates, subtenants, licensees and/or concessionaires of space in the Project or elsewhere on the Premises to comply, with all applicable laws, regulations, codes and ordinances relating to any Hazardous Material or to any Hazardous Material Activities, including obtaining and filing all applicable notices, permits, licenses and similar authorizations. 22.2. Notwithstanding any contrary provision of this Agreement, and in addition to the indemnification duties of Tenant set forth elsewhere in this Agreement, Tenant shall indemnify, defend with counsel reasonably acceptable to City, protect, and hold harmless City and its elected officials, officers, employees, agents, attorneys, volunteers and representatives from and against any and all losses, fines, penalties, claims, demands, obligations, actions, causes of action, suits, costs and expenses (including, without limitation, attorneys' fees, disbursements and court costs), damages, judgments, or liabilities, including, but not limited to, any repair, cleanup, detoxification, or preparation and implementation of any remedial, response, closure or other plan of any kind or nature which the City and its officials, officers, employees, agents, attorneys, volunteers or assigns may sustain or incur, or which may be imposed upon them, in connection with any breach of Tenant's obligations or representations in this Agreement or the use of the Premises under this Agreement, arising from or attributable to the Tenant Parties (defined below) storage or deposit of Hazardous Materials in violation of applicable laws. This section is intended to operate as an agreement pursuant to CERCLA, 42 USC Section 9607(e), and California Health and Safety Code Section 79860, to ensure, protect, hold harmless, and indemnify Landlord for any claim pursuant to the Hazardous Substance Laws or the common law. 22.3. Tenant does not, and shall not, authorize any third party to use, generate, manufacture, maintain, permit, store, or dispose of any Hazardous Materials in violation of applicable laws on, under, about or within the Premises. Lease Agreement - Heather Dickerson Insurance Agency Page 22 22.4. Upon expiration or earlier termination of this Agreement, Tenant shall deliver possession of the Premises in compliance with Hazardous Substance Laws. 22.5. If during the Term of this Agreement, Tenant becomes aware of (i) any actual or threatened release of any Hazardous Materials on, in, under, from, or about the Premises in violation of Hazardous Substance Laws; or (ii) any inquiry, investigation, proceeding, or claim by any government agency or other person regarding the presence of any Hazardous Materials in violation of Hazardous Substance Laws on, in, under, from or about the Premises, Tenant shall give City written notice of the release or inquiry within five (5) days after Tenant becomes aware or first has reason to believe there has been a release or inquiry and shall simultaneously furnish to City copies of any claims, notices of violation, reports, warning or other writings received by Tenant that concern the release or inquiry. 22.6. If the presence of any Hazardous Materials brought onto the Premises by Tenant or Tenant's employees, agents, subtenant, licensees, concessionaires, contractors, or invitees ("Tenant Parties"), or generated by same during the Term of this Agreement, results in contamination of the Premises or adjacent properties in violation of Hazardous Substance Laws, Tenant shall promptly take all necessary actions, at Tenant's sole expense, to remove or remediate such Hazardous Materials in full compliance with applicable laws. Tenant shall provide notice to City prior to performing any removal or remedial action. Tenant shall not propose nor agree to any covenant of use restriction as part of any removal or remediation required as a result of this provision without City's written consent. Tenant shall pay any costs City incurs in performing Tenant's obligation to clean-up contamination resulting from Tenant's operations or use of the Premises. 22.7. Should any clean-up of Hazardous Materials for which Tenant is responsible not be completed prior to the expiration or sooner termination of the Agreement, including any extensions thereof, then Tenant shall transfer the amounts required to complete clean-up into an escrow account, together with City -approved instructions for the disbursement of such amount in payment of the costs of any remaining clean-up as it is completed, and (ii) if the nature of the contamination or clean-up required of Tenant is of such a nature as to make the Premises untenable or unleasable, then Tenant shall be liable to City as a holdover lessee until the clean-up has been sufficiently completed to make the Premises suitable for lease to third parties. The estimated cost of the clean-up shall require approval of the City. 22.8. If City determines, in its reasonable discretion, that Tenant does not have insurance or other financial resources sufficient to enable Tenant to fulfill its obligations under this provision, whether or not accrued, liquidated, conditional, or contingent, then Tenant shall, at the request of City, procure and thereafter maintain in full force and effect such environmental impairment liability and/or pollution liability insurance policies and endorsements, or shall otherwise provide such collateral or security reasonably Lease Agreement - Heather Dickerson Insurance Agency Page 23 acceptable to City as is appropriate to assure that Tenant will be able to perform its duties and obligations hereunder. 22.9. Tenant's obligations in this Section 22 shall survive the expiration or earlier termination of this Agreement. 22.10. In the event that the presence of any Hazardous Materials not caused by Tenant is detected at the Property at any time during the Term of this Agreement and any Option Term, all remedial work shall be performed by City at City's expense. Tenant's obligation to pay Rent shall be abated pursuant to Section 15 to the extent Tenant is unable to conduct its business upon the Premises as a result of any remedial work that is performed subsequent to Tenant opening for business. Tenant shall have the right (but not the obligation) to terminate this Agreement, upon thirty (30) calendar days advance written notice to City in the event that Hazardous Materials, not caused by Tenant, are detected at the Premises and the presence or the remediation materially affects Tenant's ability to conduct its business at the Premises. 23. EVENT OF BANKRUPTCY 23.1. Assignment. If this Agreement is assigned to any Person or entity pursuant to the provisions of the Bankruptcy Code, 11 U.S.C. Sections 101 et seq. or any similar or successor statute ("Bankruptcy Code"), any and all monies or other consideration payable or otherwise to be delivered in connection with such assignment shall be paid or delivered to City, shall be and remain the exclusive property of City and shall not constitute property of Tenant or of the estate of Tenant within the meaning of the Bankruptcy Code. Any and all monies or other consideration constituting City's property under this Section not paid or delivered to City shall be held in trust for the benefit of City and be promptly paid or delivered to City. 23.2. Assumption of Obligations. Any Person or entity to which this Agreement is assigned pursuant to the provisions of the Bankruptcy Code shall be deemed without further act or deed to have assumed all of the obligations arising under this Agreement and any Amendments on and after the date of such assignment. 24. NOTICES Any notice, demand, request, consent, approval or communication that either party desires or is required to give shall be in writing and shall be deemed given three (3) calendar days after deposit with the United States Postal Service, postage prepaid, by registered or certified mail, return receipt requested or upon delivery if personally served. Unless notice of a different address has been given in accordance with this Section, all notices shall be addressed as follows: Lease Agreement - Heather Dickerson Insurance Agency Page 24 If to City: City of Newport Beach Attention: Real Property Administrator 100 Civic Center Drive Newport Beach, CA 92660 If to Tenant: Heather Dickerson Insurance Agency Heather Dickerson P.O. Box 3121 Newport Beach CA 92659 25. SURRENDER OF PREMISES At the expiration or earlier termination of this Agreement, Tenant shall surrender, at no cost to City, the possession of the Premises. Tenant shall leave the surrendered Premises, required personal property and fixtures in good and broom -clean condition, reasonable wear and tear excepted. All property that Tenant is not required to surrender, but that Tenant does abandon shall, at City's election, become City's property at expiration or termination. City shall owe no compensation to Tenant for any personal property or fixtures left at the Premises by Tenant more than fifteen (15) calendar days after the expiration or termination of this Agreement. Notwithstanding any other provision of this Agreement as permitted by California Public Resources Code Section 6312, or any successor statute, the parties agree that upon expiration or earlier termination of this Lesse, City shall have no liability or obligation to paV compensation for any improvements made to the Premises. 26. COMPLIANCE WITH ALL LAWS Tenant shall at its own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted and relating in any way to the Premises and/or this Agreement. 27. WAIVERS The waiver by either party of any breach or violation of any term, covenant or condition of this Agreement, or of any ordinance, law or regulation, shall not be deemed to be a waiver of any other term, covenant, condition, ordinance, law or regulation, or of any subsequent breach or violation of the same or other term, covenant, condition, ordinance, law or regulation. The subsequent acceptance by either party of any fee, performance, or other consideration which may become due or owing under this Agreement, shall not be deemed to be a waiver of any preceding breach or violation by Lease Agreement - Heather Dickerson Insurance Agency Page 25 the other party of any term, condition or covenant of this Agreement, or any applicable law, ordinance or regulation. 28. SEVERABILITY If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 29. CONFLICT In case of conflict, the more specific provision of this Agreement shall control. If any conflicts arise between the terms and conditions of this Agreement, and the terms and conditions of the attached exhibits or the documents expressly incorporated by reference, the terms and conditions of this Agreement shall control. 30. APPLICABLE LAW This Agreement shall be construed in accordance with the laws of the State of California. Any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange, State of California. 31. ENTIRE AGREEMENT; AMENDMENTS 31.1. The terms and conditions of this Agreement, all exhibits attached, and all documents expressly incorporated by reference, represent the entire agreement of the parties with respect to the subject matter of this Agreement. 31.2. This Agreement shall supersede any and all prior agreements, oral or written, regarding the subject matter between Tenant and City. 31.3. No other agreement, promise or statement, written or oral, relating to the subject matter of this Agreement, shall be valid or binding, except by way of a written amendment to this Agreement. 31.4. The terms and conditions of this Agreement shall not be altered or modified except by a written amendment to this Agreement signed by Tenant and the Authorized City Representative and approved as to form by the City Attorney. 31.5. Any obligation of the parties relating to monies owed, as well as those provisions relating to limitations on liability and actions, shall survive termination or expiration of this Agreement. 31.6. Each party has relied on its own inspection of the Premises and examination of this Agreement, the counsel of its own advisors, and the warranties, representations, Lease Agreement - Heather Dickerson Insurance Agency Page 26 and covenants in this Agreement. The failure or refusal of either party to inspect the Premises, to read this Agreement or other documents, or to obtain legal or other advice relevant to this transaction constitutes a waiver of any objection, contention, or claim that might have been based on such reading, inspection, or advice. 32. TIME IS OF THE ESSENCE Time is of the essence for this Agreement. 33. SUCCESSORS Subject to the provisions of this Agreement on assignment and subletting, each and all of the covenants and conditions of this Agreement shall be binding on and shall inure to the benefit of the heirs, successors, executors, administrators, assigns, and personal representatives of the respective parties. 34. INTERPRETATION The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 35. HEADINGS The captions of the various sections of this Agreement are for convenience and ease of reference only and do not define, limit augment, or describe the scope, content, or intent of this Agreement. 36. NO BROKERS Each party warrants to and for the benefit of the other than it has had no dealings with any real estate broker or other agent (attorneys excepted) in connection with the negotiation or making of this Agreement, and that no commission, fee or other compensation is owed regarding this Agreement by such other Party. 37. GENDER; NUMBER The neuter gender includes the feminine and masculine, the masculine includes the feminine and neuter, and the feminine includes the neuter, and each includes corporation, partnership, or other legal entity whenever the context requires. The singular number includes the plural whenever the context so requires. Lease Agreement - Heather Dickerson Insurance Agency Page 27 38. EXHIBITS All exhibits to which reference is made in this Agreement are incorporated by reference. Any reference to "this Agreement" includes matters incorporated by reference. 39. CITY BUSINESS LICENSE Tenant shall obtain and maintain during the duration of this Agreement, a City business license as required by the Newport Beach Municipal Code. 40. NO ATTORNEYS' FEES The prevailing party in any action brought to enforce the terms and conditions of this Agreement, or arising out of the performance of this Agreement, shall not be entitled to recover its attorneys' fees. 41. NONDISCRIMINATION Tenant, for itself and its successors, agrees that in the performance under this Agreement, Tenant shall not discriminate against any person because of the marital status or ancestry, gender, sexual orientation, etc. of that person or any characteristic listed or defined in Section 11135 of the Government Code. 42. NO THIRD PARTY BENEFICIARIES City (both as a lessor and as the City of Newport Beach) and Tenant do not intend, by any provision of this Agreement, to create in any third party, any benefit or right owed by one party, under the terms and conditions of this Agreement, to the other party. 43. LAWS It shall be the obligation of Tenant to comply with all laws, statutes, rules, and regulations relating in any way to the Premises including, but not limited to, State of California labor laws, rules and regulations and the parties agree that the City shall not be liable for any violation by Tenant (or Tenant's agent, sublessee or any party affiliated with Tenant) thereof. 44. NO DAMAGES Tenant acknowledges that City would not enter this Agreement if it were to be liable for damages (including, but not limited to, actual damages, economic damages, consequential damages, lost profits, loss of rents or other revenues, loss of business opportunity, loss of goodwill or loss of use) under, or relating to, this Agreement or any of the matters referred to in this Agreement, including, without limitation, any and all plans, Lease Agreement - Heather Dickerson Insurance Agency Page 28 permits, licenses or regulatory approvals, and CEQA documents. Accordingly, Tenant covenants and agrees, except as otherwise provided herein, on behalf of itself and its successors and assigns, not to sue City (either in its capacity as lessor in this Agreement or in its capacity as the City of Newport Beach) for damages (including, but not limited to, actual damages, economic damages, consequential damages, lost profits, loss of rents or other revenues, loss of business opportunity, loss of goodwill or loss of use) or monetary relief for any breach of this Agreement by City or for any dispute, controversy, or issue between City and Tenant arising out of or connected with this Agreement or any of the matters referred to in this Agreement, including, without limitation, any and all plans, permits, licenses or regulatory approvals, CEQA documents, or any future amendments or enactments thereto, and the parties expressly agree that declaratory relief, injunctive relief, mandate and specific performance shall be Tenant's sole and exclusive judicial remedies. 45. GOVERNMENT CLAIMS ACT Tenant and City agree that in addition to any claims filing or notice requirements in this Agreement, Tenant shall file any claim that Tenant may have against City in strict conformance with the Government Claims Act (Government Code sections 900 et seq.), or any successor statute. 46. COUNTERPARTS This agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute one (1) and the same instrument. [SIGNATURES ON NEXT PAGE] Lease Agreement - Heather Dickerson Insurance Agency Page 29 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date:: l 0 Z 5 By: A on C. Harp City Attorney PF ATTEST: Date: CITY OF NEWPORT BEACH, a California municipal corporation Date: $119 120 ZS By: Grq,ceX Leung Ci anager TENANT: Heather Dickerson Insurance Agency, a sole proprietorship Date: �y Signed in Counterpart By Moll Per Y Perry x„_, `` �E_� �" BY: Interim City Clerk '� Heather Dickerson Sole Proprietor Attachments: Exhibit "A" — Property Legal Description and Depiction Exhibit "B" — Premises Depiction Exhibit "C" — Waiver of Relocation Benefits Exhibit "D" — Balboa Yacht Basin Rules and Regulations Exhibit "E" — Insurance Requirement Lease Agreement - Heather Dickerson Insurance Agency Page 30 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: 6 � Z By: r Aa on C. Harp , '1 tiff City Attorney �'' ply ATTEST: Date: go Molly Perry Interim City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Grace K. Leung City Manager TENANT: Heather Dickerson Insurance Agency, a sole proprietorship Date: 'V F d �� S B: Heather Dickers Sole Proprietor Attachments: Exhibit "A" — Property Legal Description and Depiction Exhibit "B" — Premises Depiction Exhibit "C" — Waiver of Relocation Benefits Exhibit "D" — Balboa Yacht Basin Rules and Regulations Exhibit "E" — Insurance Requirement Lease Agreement - Heather Dickerson Insurance Agency Page 30 EXHIBIT "A" Property Legal Description and Depiction A parcel of land situated in the Northwest quarter (NW 1/4) of Section Thirty -Five (35), Township Six (6) South, Range Ten (10) West, S.B.B.& M., Orange County, California, more particularly described as follows, to -wit: Beginning at a point in the U.S. Bulkhead line between Station No. 200 and Station No. 101 as shown upon a map entitled "Harbor Lines, Newport Bay Harbor, California," approved May 2, 1936, by the Secretary of War, and on file in the office of the U.S. District Engineer at Los Angeles, California, said point of beginning being East 754.25 feet of said bulkhead Station No. 200, running thence North 424.71 feet to a point in the Northerly line of that certain parcel of land conveyed to City of Newport Beach by the Irvine Company, as described in a deed recorded September 25, 1929, in Book 306, Page 375, of official records of Orange County, California; thence South 850 43' East 772.15 feet to the Northeasterly corner of the last mentioned parcel of land; thence South along the Easterly line of the last mentioned parcel of land 367.01 feet to a point in said U.S. Bulkhead line between Station No. 200 and Station No. 101, thence West along said bulkhead line 770 feet to the point of beginning, containing approximately seven (7) acres. Lease Agreement - Heather Dickerson Insurance Agency Page A-1 I CIS LA N1I SA c � ♦ , , •� ,Wpon.arr, r9 / • ��<. 3 LLI r T° ♦ J f _Q�Is V o}c o �sp • / a JU. �, Sanfa.U,+ Hrithn ' 0� / VICTORIA ST co , ti0 / • " � RSIIY VVED4 t1Ir ,,,, 2 S> J� W Q�P P �<,.por.Mn• �<•.rrwt Nm W 19TH ST DPP Q� s v • j'�y / � - -T �. • &Lo,n, Hill ,z Isl RD S eo NI TA �ap<m,rQ�.n rV • TC QO �%`s � • `♦ • �fj(F - CANYON ' tla<k Bev S1e- tlKc.mon •rf N<,. pon HeiBhn Bark Bay Y '7 X<,rpmfffitls BaekBal• R IFS O P& ryfjr !� 3.• ,nrRlJe< Q>�v}♦ O r: o C� H B•�ehorn 8e,'aide •, a a.l>r �' �<rwncrnl<r r?Q O� Nr y.r �,cr liJ.irf< ID �� h W Q G il•rbm I•I.nd �/; rim Q:r..< 5t 2 �S ' \en•p—t Harbor r� E;At8OA ^ 1, B•r 1.1.d B, tr°� ylan•d 1n Ynr fora. yf Hub•r �7nr � B.1boa l.l•nJ - fweme<,nw,rBA�eOA �!P 0 TF �� It M,Rq MqR Nrn \r,.zon •• j Property p 4k „nor,«:1. C—D<1flu - NII:2 Disclaimer: N E w P o R T B E A C H Every reasonable effort has been made to assure the accuracy of the data provided, however, The City of Newport Beach and its employees and agents O� @ 0 4,000 8,000 disclaim any and all responsibility from or relating to any results obtained in its use. u Feet IFon% 6/10/2025 ��. .ram _ ,,.•' ��- "� �. .y , �.S.�r�: •. .' ,y _�j" COgs :: y:r;i + Back *a Viewl"ark"A s "t .14 •tom\ � r` 4 -.���` -. eq I'� - F, �:'� •. � Q*�� r� /r`cF D ";+�` pROM110Nqj T0" L Property ! --� �.-� �`" •�l'r r�'� � -�._ � �� j�•i��a! ilti� 1 ICI �-..�. �,_ \ FFARBORlbig . /G DF,• ~a q �yCC, �pw — LAND lie _ UW, ���I3�i- =/i1a���'[�_ V ��` •n.r��i�_ ��4r«•.E�'_ 4 Wes--_ Ln f +*rflrjn.3"� h�r.s r�RONy�:uUP r?•.N�4 tti. All �^�1 N� AL�GY n■ ; I fd7i ^-, �t�W v12' Q-• r P. 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F�itif _ Ors I�-lra,'le�n� N�. � J' ° f} 11 k �;1 /#f� Q'? -.fif xr Tr ¢ f a BALBOA AVE - r, ON�a ��i +" �''-�' • �f` Jw O �i.; � � •� •) �� armor' y ems' W ```�.��.. g'*�'�, f,� .ter Hf � T 7+ sf + �a�i +ems r� a, - r.yiN—T:3tT "Li i mac, t: `r ' � � � /. �`� '1� �' �! fs rest • �a-- --..: 1� � t��M,�ARROLL BEEK.r,4 P*' ��s r lar�i_iarx sil_ Pra N E%j i zip Disclaimer: N E w P O R T B E A C H Every reasonable effort has been made to assure the accuracy of the data provided, however, The City of Newport Beach and its employees and agents o�, @ disclaim any and all responsibility from or relating to 0 417 833 any results obtained in its use. u C,9C/FORa�P Feet ai�nnmG R' a# $ z'. w} 7esSr7t9 s4io or t45 ta3n OA• `i�b�z�� �,* LV ••��.* 7n 7p is tq iJ7 119-'r t 2hfi " s4YSIDE DR 16 _��= na Ti V, t rV f I nazis _ --•.. T 3';i' t.: _ 3EACON BAY i• i� ' R 4 Non-exclusive, non -designated parking at the Property rf%<,, �o o1W ti ti ry '� ? ��y- .�12s AL��y 'N d_- • � ' n°- o"'^�� N � 4 Ind?? t. lf�1J I' i 4 ar %�� a f iell 327: NE%xiz Disclaimer: N EWPORT BEACH Every reasonable effort has been made to assure the accuracy of the data provided, however, The City of SEW �Rr Newport Beach and its employees and agents 0 200 400 disclaim any and all responsibility from or relating to any results obtained in its use. u x CEF�aP Feet O FO au neon EXHIBIT "B" Premises Depiction Lease Agreement - Heather Dickerson Insurance Agency Page B-1 EXHIBIT B Office RSF: 790 sf SCALE: 1/2" = 11-0" SHEET SIZE: 11x17 10• s 0' m GRAPHIC SCALE —� 1614 829 Harbor Island Drive Newport Beach, CA WorkSpacePlans kim@workspaceplans.com jill@workspeceplans.com EXHIBIT "C" Waiver of Relocation Benefits This Waiver of Relocation Benefits ("Waiver") is made and entered into by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("Landlord") and HEATHER DICKERSON INSURANCE AGENCY, a sole proprietorship "("Tenant"), as of the date of the Lease Agreement ("Agreement") between City and Tenant to which this Waiver is attached. City and Tenant hereby agree that, notwithstanding anything contained in the Agreement to the contrary, the provisions set forth below shall be deemed to be part of the Agreement and shall supersede any inconsistent provisions therein. All references in the Agreement and in this Waiver shall mean the Agreement (and all exhibits attached thereto), as amended and supplemented, including by this Waiver. All capitalized terms not defined in this Waiver shall have the same meaning as set forth in the Agreement. This Waiver is effective as of the Effective Date. Tenant acknowledges it has read and understands the following terms and knowingly and voluntarily enters into the Agreement without coercion, undue influence or other inducement by City or any other person or entity. 1. STATUS OF POST -ACQUISITION TENANT. (a) City has informed Tenant that it is redeveloping the Property for public purposes, specifically the renovation, management, and maintenance of the buildings at the Property ("Public Facility"). City does not intend to begin construction until after the natural expiration of the Agreement and has informed Tenant that construction will not result in Tenant being displaced or required to move from the Premises before that time. (b) The proposed Public Facility may involve demolition and new construction of the subject Property and Premises. Since potential federal, state, and local funding would be planned for use in the Public Facility, the Relocation Law (defined herein) may apply to persons and businesses in lawful occupancy at the time an application for funding is submitted for federal, state and/or local funding. (c) Tenant enters into the Agreement in consideration of reduced rent and/or other concessions provided by the City. In entering into the Agreement, Tenant knowingly and voluntarily waives any eligibility it has or may have for relocation payments or assistance under the Relocation Law, which may include, without limitation, advisory assistance, payment for certain moving expenses, business re-establishment expenses, and expenses incurred in searching for a replacement business. Tenant understands that other businesses or persons in occupancy at the Property may be or become eligible for such relocation assistance. Tenant agrees its status shall hereby be deemed and shall remain as a post -acquisition tenant. Lease Agreement - Heather Dickerson Insurance Agency Page C-1 (d) After full consideration of the foregoing advisement and information, Tenant agrees that: (1) under the Relocation Law, including without limitation California Government Code Section 7260(c)(2), Tenant is not and will not become a "displaced person", having waived any and all rights to benefits or assistance under the Relocation Law; therefore, Tenant is not, and shall not become, entitled to relocation assistance or benefits if Tenant moves from the Premises for whatever reason at any time; and if for any reason Tenant shall ever be determined to be a "displaced person", Tenant does hereby expressly, intentionally, and knowingly waive each and any claim of entitlement to relocation assistance and/or benefits under the Relocation Law in connection with the Tenant's occupancy of the Premises under the Agreement. (e) Tenant represents, warrants, and agrees that it has not entered into any other lease, assignment or any other agreement allowing any third party to occupy all or any part of the Premises. Tenant represents, warrants, and agrees that as of the date of this Agreement, other than Tenant, no other person or entity has or will have any legal right to possess or occupy the Premises, excepting Tenant. 2. TENANT'S RELEASE AND WAIVER OF CITY OF NEWPORT BEACH. Tenant is entering into the Agreement with City and agrees that all rights or obligations that exist or may arise out of the termination of Tenant's leasehold interest at some date in the future, whether for public, private or any other purposes, include Tenant's intentional release and waiver of any and all rights to seek remedies under the Relocation Law, to seek compensation for alleged severance damages, pre -condemnation damages, alleged loss of business goodwill, or for costs, interest, attorneys' fees, and/or any claim whatsoever that might arise out of or relate in any respect whatsoever directly or indirectly to the termination of Tenant's leasehold interest by Landlord. (a) Accordingly, Tenant acknowledges and agrees that should City terminate Tenant's leasehold interest such termination and the resulting move of Tenant's business and/or removal of Tenant's personal property from the Premises are non- compensable under the Relocation Law and other federal and state laws related to Tenant's move of its business from the Premises. (b) Tenant fully, intentionally, knowingly and voluntarily waives, releases and discharges City and its appointed and elected officials, officers, directors, employees, contractors, and agents (together "Indemnitees") from all and any manner of rights, demands, liabilities, obligations, claims, or cause of actions, in law or equity, of whatever kind or nature, whether known or unknown, whether now existing or hereinafter arising, which arise from or relate in any manner to (i) the use of the Premises for a public project or other public purposes or (ii) the relocation of any of Tenant's business operations or the relocation of any person or persons, business or businesses, or other occupant or occupants located on the Premises, including the specific waiver and release of all rights Lease Agreement - Heather Dickerson Insurance Agency Page C-2 under the Relocation Law and/or payments that otherwise may be required under such state or federal law. (c) Tenant waives all rights to compensation for any interest in the business operations at, on, or about the Premises including, but not limited to, land and improvements, fixtures, furniture, or equipment thereon, goodwill, severance damage, attorneys' fees or any other compensation of any nature whatsoever. (d) It is hereby intended that the release contained herein relates to both known and unknown claims that Tenant and any person or entity claiming by or through Tenant may have, or claim to have, against any of the Indemnitees with respect to the subject matter contained herein or the events relating thereto. By releasing and forever discharging claims both known and unknown which are related to or which arise under or in connection with, the items set out above, Tenant expressly waives any rights under California Civil Code Section 1542 and any similar law of any state or territory of the United States are expressly waived. Section 1542 reads as follows: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY." Tenant Initials: (e) In connection with the Agreement, and the above release and waiver, Tenant acknowledges that it is aware that it and its attorneys may hereafter discover claims or facts or legal theories in addition to or different from those which it know or believe to exist with respect to the claims released herein, but that Tenant's intention hereby is to fully, finally and forever release and waive all such claims, known or unknown, suspected or unsuspected, which do now exist, may exist or have existed in favor of Tenant. In furtherance of such intention, Tenant's entering into the Agreement shall evidence Tenant's full and complete release and waiver, notwithstanding the discovery or existence of any such additional claims, facts, or legal theories under applicable laws or regulations or otherwise relating to the Premises or the termination of Tenant's leasehold interest and later move from the Premises. Tenant acknowledges and agrees that its waiver and release is an essential and material term to the Agreement and that without it, City would not have consented to the Agreement. Tenant understands and acknowledges the significance and consequences of these provisions under the Agreement. (f) Tenant agrees, warrants and represents that it has carefully read the contents of the Agreement and that, in executing the Agreement, Tenant does so with full knowledge of any right which it may have, that it has received independent legal advice from its attorneys, or in the alternative, knowingly has determined not to seek legal advice Lease Agreement - Heather Dickerson Insurance Agency Page C-3 with respect to the matters set forth herein, and that Tenant has freely signed this Agreement without relying on any agreement, promise, statement or representation by or on behalf of any person or entity, including any and all Indemnitees, except as specifically set forth in the Agreement. (g) The statements, representations and recitals contained in the Agreement are to be considered contractual in nature and not merely recitations of fact. The Agreement, the advisements herein, and the above release and waiver shall be binding upon Tenant and its heirs, agents, successors, legal representatives and assigns. 3. RELOCATION LAW DEFINITION. "Relocation Law" as used herein shall mean applicable federal, state, and local laws and regulations, including without limitation (i) the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 ("URA"), 42 U.S.C. 4601-4655, and the implementing regulations at 49 CFR Part 24, (ii) the California Relocation Assistance Act, Government Code Section 7260, et seq. and the implementing regulations at Title 25, Section 6000, et seq. of the California Code of Regulations, and (iii) any other applicable federal, state or local enactment, regulation or practice providing for relocation assistance, benefits, or compensation for moving and for property interests (including without limitation furnishings, fixtures and equipment, goodwill, and moving expenses). Lease Agreement - Heather Dickerson Insurance Agency Page C-4 EXHIBIT "D" Balboa Yacht Basin Rules and Regulations Lease Agreement - Heather Dickerson Insurance Agency Page D-1 r BALBOA YACHT BASIN 829 Harbor Island Drive n Newport Beach, CA 92660 z (949) 673-0360 Rules and Regulations When a boat enters the Balboa Yacht Basin ("BYB"), it immediately comes under the jurisdiction of BYB and shall be berthed only where ordered and maneuvered as directed. Vessels may be relocated within BYB at City's discretion. The City ordinances, rules and regulations, summarized herein and as amended from time to time, and all other regulations established by regulatory bodies having jurisdiction at BYB, shall form a part of all Slip Rental Agreements as though printed thereon. The Balboa Yacht Basin is owned by the City of Newport Beach ("City") and managed by Bellport Group, Inc., located onsite at 829 Harbor Island Drive. There is no warranty of any kind as to the condition of the floats, walks, gangways, ramps or mooring gear, nor shall City be responsible therefore, or for injuries to persons or property occurring thereon or for any other reason, whether herein specifically stated or not. 1. No Vessel may be moored at the BYB unless a current Slip Rental Agreement or Temporary Slip Rental Agreement (collectively, the "Agreements") is in effect between Vessel Owner and City. All defined terms herein shall have the same meaning as in the Agreements. 2. Only the Vessel described in the Agreements and registered to Vessel Owner may occupy the assigned Slip. Only one boat is permitted to occupy a slip at any one time, unless otherwise approved by the Marina Manager. 3. Use of boats moored at BYB for unauthorized commercial purposes is prohibited. 4. No major repairs or complete overhauls shall be made on boats in BYB. Extent of the permitted repairs shall be at the discretion of the City. Disc sanding and spray painting are strictly forbidden. 5. Supplies, materials, accessories or gear of all kinds shall not be stored within BYB except in approved lockers. No additional locker boxes shall be placed on the docks by Vessel Owner. Maximum weight in lockers shall not exceed 70 pounds. 6. City reserves the right to inspect all boats to determine if they are properly identified and equipped for safe operation in accordance with Coast Guard and other applicable regulations. Page 1 of 4 7. No Vessel Owner shall throw, discharge, pump or deposit from any boat or float any refuse, oil, spirits, flammable liquid, or other polluting matter into BYB. All such matter shall be deposited in appropriately marked containers within BYB. 8. Use of boat toilets not equipped with storage devices approved by the state or local health departments is not permitted within BYB. City reserves the right to inspect all boats for installation and proper operation of such devices and holding tanks. 9. Unnecessary operation of engines in berths is not permitted. No excessive noise is allowed. Halyards should be tied away from masts. 10. Except for entering or leaving slips, marine engines, power generating equipment or other noise making machinery shall not be operated between the hours of 5:00 P.M. and 9:00 A.M. Engines may not be operated in gear while boats are secured to dock. 11. Water or power lines shall not cross main walks. 12. All boats shall be moored by Vessel Owner in a safe manner, on cleats, with strong and adequate lines. 13. The speed limit within BYB shall be dead slow, or wakeless speed, whichever is slower. 14. Fishing from the slips is not allowed. No cleaning of fish is permitted in BYB. 15. There shall be no laundering or drying of wearing apparel on the docks or on the dock or rigging of a boat in BYB. 16. Restrooms will remain locked at all times. All keys must be returned to the Marina Manager office upon termination of the Agreement. If not returned, the Key Deposit will be retained by the City. Keys must not be duplicated. 17. Vessel Owner shall notify the Marina Manager when they expect Vessel to be away from the Slip for any period in excess of thirty (30) days. Vessel Owner shall not sublet or otherwise grant others the use of the Slip. During any absence of the Vessel, City may use the Slip for any purpose without credit or compensation to Vessel Owner. 18. For security reasons, no dinghy, sabot, float or other similar boat shall be permitted to cruise up and down the fairways. All such boats must be kept on Vessel. The use of another slip at any time, for ANY non -emergency reason is not permitted. 19. The maximum distance by which any boat (including all projections such as transom platforms, booms, gait tanks, bowsprits, etc.) may extend beyond the end of the berth may not be more than ten percent (10%) of the length of the Slip beyond the end of the Slip. No part of the Vessel shall at any time extend over any portion of any dock at BYB. No part of any boat shall extend over the main walkway. 20. All equipment and electrical connections made by Vessel Owner must be approved by the Marina Manager. 21. No fueling or transferring of fuel from docks shall be permitted at any time. Page 2 of 4 22. Vessel Owner shall be responsible for any oil, paint, or other materials spilled, dripped or otherwise applied to the concrete fingers or walks adjacent to the boat slip. 23. Boat boarding steps shall be a maximum of one-half (1/2) the width of the finger and shall be of lightweight, open construction. No storage will be allowed under the boarding steps. 24. No dinghies, masts, bicycles, hibachis, etc. shall be stored on the docks. Items left or stored on the docks will be confiscated. 25. Trash containers are provided. Vessel Owners shall not place their own trash containers on the docks. 26. No cleats, dock wheels or other accessories shall be installed by Vessel Owner. The dockmaster should be contacted if additional accessories are necessary. 27. Any paint, varnish, etc. spilled on the docks or lockers shall be cleaned up immediately. If the spill cannot be removed by Vessel Owner, he should contact the Marina Manager for assistance. 28. Vessel Owner is encouraged to inform the Marina Manager of any leaks or other malfunctions with water or electricity, etc., so that they may be corrected as soon as possible. 29. ANIMALS SHALL BE LEASHED AT ALL TIMES. Should the size or temperament of a pet disturb others or should the pet commit any nuisance on the property of BYB, such animal shall be removed from BYB by Vessel Owner. 30. Children under twelve (12) years of age are not permitted on docks without the immediate presence of a parent or other responsible adult. 31. Disorderly or discourteous conduct by Vessel Owner or guests that might injure a person, cause damage to property or harm the reputation of BYB shall be cause for termination of the Vessel Owner's Agreement. 32. Vessel Owner shall park vehicles in areas designated for Basin parking. Parking areas shall not be used for storage of trailers without City's consent. 33. Vessel Owners are advised that it will be unlawful for any unauthorized person to solicit business or to offer goods, wares, merchandise or services for sale on the premises of BYB without the consent of the City. 34. "For Sale" or other unauthorized advertising signs are prohibited in BYB. 35. City is not responsible for any losses or damage to boats at BYB. Each Vessel Owner is responsible for damage which he and/or his boat may cause to other boats or improvements in BYB. 36. No swimming is permitted in BYB waters. Page 3 of 4 37. The City will not provide space for the storage of dinghies or miscellaneous Vessel Owner equipment on Basin property. 38. Hydro -lift hoists will not be allowed in BYB. 39. The Marina Manager may ascertain that strangers aboard yachts are authorized by Vessel Owner to be aboard. 40. Riding of skateboards, bicycles or motorcycles on the docks is not permitted. Slip Fees specified in the Agreement are determined by the size of the slip space or vessel size and permitted overhang. Rent is due in advance, payable by the first of the month. Electricity is charged for the previous month's use. Vessel is subject to impound if the account is delinquent. Vessel Owner will be liable for any cost of impounding and collection of account. These rules and regulations are subject to change upon five (5) calendar day's notice. Ralph Grippo Balboa Yacht Basin Manager Bellport Group, Inc. 949-723-7788 rarippo(-)bellwetherfinancialgroup.com Kelly Rinderknecht Balboa Yacht Basin Office Manager Bellport Group, Inc. 949-569-0723 krinderknecht(cD-themarinaatdanapoint.com Revised September 21, 2021 Page 4 of 4 EXHIBIT "E" Insurance Requirements Without limiting Tenant's indemnification of City, Tenant will obtain, provide, and maintain at its own expense during the Term of this Agreement, a policy or policies of insurance of the type, amounts, and form acceptable to City. The policy or policies shall provide, at a minimum, those items described below. 1. Provision of Insurance. Without limiting Tenant's indemnification of City, and prior to commencement of work on Premises by Tenant or Tenant's agents, representatives, consultants, contractors and/or subcontractors, Tenant shall obtain, provide and maintain at its own expense during the term of this Agreement policies of insurance of the type and amounts described below and in a form satisfactory to City. Tenant agrees to provide insurance in accordance with requirements set forth here. If Tenant uses existing coverage to comply and that coverage does not meet these requirements, Tenant agrees to amend, supplement or endorse the existing coverage. City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, passage of time, or other special circumstances. If the existing policies do not meet the insurance requirements set forth herein, Tenant agrees to amend, supplement, or endorse the policies to do so. 2. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the insurance commissioner to transact business of insurance in the State of California, with an assigned policyholders' rating of A - (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. 3. Coverage Requirements. A. Workers' Compensation Insurance. Tenant and Tenant's agents, representatives, consultants, contractors and/or subcontractors, shall maintain Workers' Compensation Insurance with statutory limits and Employer's Liability Insurance with a limit of at least one million dollars ($1,000,000) each accident for bodily injury by accident and each employee for bodily injury by disease in accordance with the laws of the State of California. Tenant and Tenant's agents, representatives, consultants, contractors and/or subcontractors, shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its City Lease Agreement - Heather Dickerson Insurance Agency Page E-1 Council, boards and commissions, officers, agents, volunteers and employees for all losses that relate in any way to this Agreement . B. General Liability Insurance. Tenant and Tenant's agents, representatives, consultants, contractors and/or subcontractors, shall maintain commercial general liability insurance, and if necessary excess/umbrella liability insurance, with coverage at least as broad as provided by Insurance Services Office form CG 00 01, in an amount not less than two million dollars ($2,000,000) per occurrence, four million dollars ($2,000,000) general aggregate. The policy shall cover liability arising from bodily injury, property damage, personal and advertising injury, and liability assumed under an insured contract (including the tort liability of another assumed in a business contract) with no endorsement or modification limiting the scope of coverage for liability assumed under a contract. Contractors, consultants and/or subcontractors shall provide coverage with a format at least as broad as provided by Insurance Services Office form CG 20 38 04 13. C. Automobile Liability Insurance. Tenant and Tenant's consultants, contractors and/or subcontractors shall maintain automobile insurance covering bodily injury and property damage for all activities of Tenant or all activities of Tenant's consultants, contractors and/or subcontractors arising out of or in connection with work to be performed on the Premises, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than one million dollars ($1,000,000) combined single limit each accident. D. Builder's Risk Insurance. During construction, Tenant shall require that Tenant's construction contractors and subcontractors maintain Builders Risk insurance or an installation floater as directed by City, covering damages to the work for "all risk" or special causes of loss form with limits equal to one hundred percent (100%) of the completed value of the work, with coverage to continue until final acceptance of the work by Tenant and City. City shall be included as an insured on such policy, and Tenant shall provide City with a copy of the policy. E. Contractors Pollution Legal Liability or Pollution Legal Liability insurance including onsite and offsite coverage for bodily injury (including death and mental anguish), property damage, non -owned disposal site liability, defense costs, cleanup costs, and pollution conditions that arise from or in connection with the transportation (including loading and unloading) by or on behalf of Tenant, of any waste or waste materials off or away from the project site. Coverage shall be provided for both sudden and accidental and gradual and continuous pollution events with limits no less than two Lease Agreement - Heather Dickerson Insurance Agency Page E-2 million dollars ($2,000,000) each loss and in the aggregate. The policy shall not exclude any hazardous materials for which there is exposure. F. Fire and Extended Coverage. Tenant shall maintain fire and extended coverage insurance, together with insurance against vandalism, theft and malicious mischief, on the Tenant's improvements and fixtures, alterations, trade fixtures, signs, equipment, personal property, inventory, and all other Alterations on or upon the Premises from loss or damage to the extent of their full replacement value. G. Loss of Rent. Tenant shall maintain loss of rent insurance insuring that the Rent will be paid to City for a period up to six (6) months if the Premises are destroyed or rendered unusable or inaccessible for commercial purposes by a risk insured under a special form property coverage policy including vandalism and malicious mischief endorsements. H. Excess/Umbrella Liability Insurance shall be "following form" of the underlying policy coverage, terms, conditions, and provisions and shall meet all the insurance requirements stated in this Agreement, including, but not limited to the additional insured, primary & non-contributory and waiver of subrogation insurance requirements stated herein. No insurance policies or self-insurance maintained by the City, whether primary, reinsurance or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until Tenant's primary and excess/umbrella liability policies are exhausted. 4. Endorsements: Policies shall contain or be endorsed to contain the following provisions: A. Waiver of Subrogation. All insurance policies maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against City, its City Council, boards and commissions, officers, agents, volunteers, employees or shall specifically allow Tenant or others providing insurance evidence in compliance with these requirements to waive their right of recovery prior to a loss. Tenant hereby waives its own right of recovery against City, and shall require similar written express waivers from each of its consultants, contractors or subcontractors. B. Additional Insured Status. The City, its City Council, boards and commissions, officers, agents, volunteers, employees are to be covered as an additional insured under all policies with respect to liability arising out of Tenant's activities related to this Agreement and with respect to use or occupancy of the Premises. City, its City Council, boards and commissions, Lease Agreement - Heather Dickerson Insurance Agency Page E-3 officers, agents, volunteers, employees shall be named as an additional insured on any of Tenant's contractor's and subcontractor's policies. C. Primary and Non -Contributory. Policies shall be considered primary insurance as respects to City, its City Council, boards and commissions, officers, agents, volunteers, employees as respects to all claims, losses, or liability arising directly or indirectly from Tenant's operations. Any insurance maintained by City, including any self -insured retention City may have, shall be considered excess insurance only and not contributory with the insurance provided hereunder. D. Liability Insurance. Liability insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. E. Reporting Provisions. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City of City, its City Council, boards and commissions, officers, agents, volunteers, employees . F. Notice of Cancellation. The insurance required by this Agreement shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) calendar days (ten (10) calendar days' written notice of non- payment of premium) written notice has been received by City. It is Tenant's obligation to ensure that provisions for such notice have been established. G. Loss Payee. Losses payable under the policy shall be paid to the City as its interests may appear. 5. Additional Agreements Between the Parties. The parties hereby agree to the following: A. General Obligations. In the event City determines that (i) the Tenant's activities on the Property creates an increased or decreased risk of loss to the City, (ii) greater insurance coverage is required due to the passage of time, or (iii) changes in the industry require different coverage be obtained, Tenant agrees that the minimum limits of any insurance policy required to be obtained by Tenant or Tenant's consultants, contractors or subcontractors, may be changed accordingly upon receipt of written notice from City. With respect to changes in insurance requirements that are available from Tenant's then -existing insurance carrier, Tenant shall deposit certificates evidencing acceptable insurance policies with City incorporating such changes within thirty (30) calendar days of receipt of such notice. With respect to changes in insurance requirements that are not available from Tenant's then- existing insurance carrier, Tenant shall deposit certificates Lease Agreement - Heather Dickerson Insurance Agency Page E-4 evidencing acceptable insurance policies with City, incorporating such changes, within ninety (90) calendar days of receipt of such notice. B. Use of Premises. Tenant agrees not to use the Premises in any manner, even if use is for purposes stated herein, that will result in the cancellation of any insurance City may have on the Premises or on adjacent premises, or that will cause cancellation of any other insurance coverage for the Premises or adjoining premises. Tenant further agrees not to keep on the Premises or permit to be kept, used, or sold thereon, anything prohibited by any fire or other insurance policy covering the Premises. Tenant shall, at its sole expense, comply with all reasonable requirements for maintaining fire and other insurance coverage on the Premises. C. Evidence of Insurance. All policies, endorsements, certificates, and/or binders shall be subject to approval by the City as to form and content. These requirements are subject to amendment or waiver only if approved in writing by the City. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15) days prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced, Tenant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies. D. Self -Insured Retentions. Any self -insured retentions must be declared to and approved by City. City reserves the right to require that self -insured retentions be eliminated, lowered, or replaced by a deductible. Self- insurance will not be considered to comply with these requirements unless approved by City. E. Contractual Liability. The coverage provided shall apply to the obligations assumed by Lessee under the indemnity provisions of this Agreement. F. Reporting Requirements. Tenant shall give City prompt and timely notice of any claim made or suit instituted arising out of or resulting from Tenant or Tenant's agents, representatives, consultants, contractors or subcontractors' performance under this Agreement. Lease Agreement - Heather Dickerson Insurance Agency Page E-5 G. Requirements Not Limiting. If Tenant, Tenant's consultants, contractors, and subcontractors maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the tenant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. H. Claims Made Policies. If coverage is written on a claims -made basis, the retroactive date of such insurance and all subsequent insurance shall coincide or precede the effective date of Tenant's initial Agreement with the City and continuous coverage shall be maintained, or an extended reporting period shall be exercised for a period of at least ten (10) years from termination or expiration of this Agreement. Insurance. Tenant and Tenant's consultants, contractors and/or subcontractors shall be subject to the insurance requirements contained herein unless otherwise specified in the provisions above or written approval is granted by the City. Tenant shall verify that all consultants, contractors and/or subcontractors maintain insurance meeting all the requirements stated herein, and Tenant shall ensure that City is an additional insured on insurance required from contractors, consultants and/or subcontractors. All required insurance shall be in force on the Effective Date, and shall be maintained continuously in force throughout the term of this Agreement. In addition, the cost of all required insurance shall be borne by Tenant or by Tenant's consultants, contractors or subcontractors. Tenant shall provide certificates of insurance, with original endorsements as required above, to City as evidence of the insurance coverage required herein. Insurance certificates must be approved by City prior to commencement of work or issuance of any permit. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. J. Failure to Maintain Insurance. If Tenant or Tenant's consultants, contractors or subcontractors fail or refuse to maintain insurance as required in this Agreement, or fail to provide proof of insurance, City has the right to declare this Agreement in default without further notice to Tenant, and City shall be entitled to exercise all available remedies. Lease Agreement - Heather Dickerson Insurance Agency Page E-6 `` 2 320 P+ 57 ® V 4 Search s1= Insured Insured Name Name: Heather Dickerson Insurance Heather Dickerson Insurance Agency (FV1 Agency n I Account Number: FV00001421 Heather Dickerson Insurance Agency Address: P.O. Box: 3121, Newport Beach, CA, USA, 92659 Active Records Only Status: Currently in Compliance. lAdvance Search Insured Tasks Admin Tools Insured View Business Unit(s) Print Insured Info s1i Insured Account Information Notes Account Number: FV00001421 1� History Risk Type: Professional Services — Deficiencies Agreement Coverages Do Not Call: Address Updated: Requirements Address Information Add - Mailing Address Physical Address Edit Insured: Heather Heather Dickerson Insurance Dickerson Agency Help Insurance Agency Video Tutorials - - Address 1: P.O. Box: 829 Harbor Island Drive, #D-1 3121 Address 2: City: Newport Newport Beach Beach I Rtnta• r A ('A Zip: Country: Contract Information Contract Number: Contract Start Date: Contract Effective Date: Description of Services. - Contact Information 92659 USA Lease Agreement for BYB, Suite D-1 92660 USA Contract End Date: Contract Expiration Date: Safety Form II: Contact Name: Debbie Misc: Wu rtz Phone Number: 9099871314 Alt Phone Number: Fax Number: 9099417701 E-Mail Address: debbie.hdickerson@farmersagency.com Approval Date: Rush: No Contract on File: No Certificate Received: Yes Indemnification Agreement: No Tax Id: This Account created by g16 on 08/11/2025.