HomeMy WebLinkAboutC-7307-4 - Beacon Bay, 54 - Lease 1994LEASE
THIS LEASE is made and entered into as of the -�/,./day of , 1994, by and between the CITY
OF NEWPORT BEACH, a Charter City and unicipal corporation ("Lessor"), and
k\\\Na V. Si vim\ A -� . Tv US k 2e ("Lessee"), regarding the real property commonly
referred to as Beacon Bay L t 5A .
•-
RECITALS
A. The City of Newport Beach, by virtue of a 1978 legislative grant found in Chapter 74 of the Statutes
of 1978 (the 'Beacon Bay Bill"), holds the right, title and interest to certain tidelands and uplands commonly
known as Beacon Bay and generally described in Exhibit A attached hereto and incorporated by reference.
B. The Beacon Bay Bill frees the "Westerly portion" of the filled tidelands from the public trust and
specifically authorizes the lease of the property for residential purposes subject to certain express statutory
conditions.
C. Beacon Bay, including the "Westerly Portion" thereof, has been divided into individual lots, with each
lot leased by the City for residential purposes until December 31, 2005.
D. On November 3, 1987, a majority of electors of the City approved a measure which authorized the
City Council to enter into new leases of residential lots in Beacon Bay for a period not to exceed fifty (50)
years.
E. On November 3, 1992, a majority of electors of the City approved Measure M which authorized the
City Council to lease tidelands and waterfront property consistent with the provisions of state law.
F. The City Council, pursuant to the authority conferred by the electors, entered into negotiations with
current lessees and the parties have agreed on the terms and conditions of a new lease with a fifty (50) year
term, provision for adjustments in lease payments to reflect changes in the value of Beacon Bay leaseholds,
and a recalculation of lease payments in the event of a transfer of the Lease by the Current Lessee or any
Subsequent Lessee (as defined herein).
G. Lessee acknowledges that the terms and conditions of this Lease may result in Lessee paying
substantially more or less than another Lessee for similar property depending upon the date this Lease is
executed, the date of any subsequent transfer, and the consideration paid for transfers of similarly situated
property.
H. Lessee acknowledges that accurate and complete reporting to the City of all consiNration paid for
the transfer of this Lease is vitally important to the City in that failure to fully report all consideration could
materially reduce the amount of rent received by the City from other Beacon Bay Lessees.
I. Lessor and Lessee acknowledge that the City has agreed to a fifty (50) year term and limited lease
payment increases in consideration of provisions which require payment of rent approximating fair market
rental value, without regard to any advantage maintained by Current Lessees, upon transfer by Current
Lessees and payment of deferred rent in the event the Lease is not signed on or before the Effective Date
(as defined herein).
J. The California State Lands Commission has reviewed the form of this Lease and determined that
it is in conformance with the provisions of relevant statutes, rules and regulations, including, without
limitation, the Beacon Bay Bill.
NB1-187371.V2 1 05/24/94
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situated parcels most recently transferred. Exempt transfers, as defined in Paragraph
3.6(3), shall not be used to calculate Average Actual Sales Value rent.
(3) "CPP' shall mean the Consumer Price Index - Los Angeles -Anaheim -Riverside Area,
All Urban Consumers, All Items, published by the United States Department of Labor,
Bureau of Labor Statistics (1982-1984=100). If the 1982-1984 base of said Consumer Price
Index should hereafter be changed, then the new base shall be converted to the 1982-1984
base and the base as so converted shall be used. In the event that the Consumer Price
Index, as now compiled and published, shall cease to be published, then the successor
index shall be used provided that an appropriate conversion from the old index to the new
index can feasibly be made. If such conversion cannot be made, or if no such index is
published, then another index most nearly comparable thereto recognized as authoritative
shall be substituted by agreement.
(4) "Current Lessee" shall mean the person or persons who, as of April 1, 1994 (the
"Cut-off Date"), was or were the Lessee under the Pre-existing Lease.
(5) "Deferred Rent" shall mean the total rent that a Current Lessee would have paid
had this Lease been executed on the Effective Date, through and including the date on
which this Lease was first executed, less the rent actually paid pursuant to the Pre-existing
Lease, together with interest at the rate of eight percent (8%) per annum calculated on the
balance due at the end of each Lease Year or portion thereof.
(6) "Effective Date" shall mean July 1, 1994.
(7) "Execution Date" shall mean the date when this Lease is executed by Lessee.
(8) "Initial Rent' shall mean the effective net rent for the Leased Land as determined
by the appraisal of George Hamilton Jones, with due consideration to the leasehold
advantage created by the Pre-existing Lease, all as shown on Exhibit C attached hereto
and incorporated herein by reference.
(9) "Person" shall mean any natural person or natural person(s) and does not include
any corporation, association, or business entity in any form except a financial institution or
other bona fide lender acting in the capacity of a lender or an inter vivos or living trust.
(10) "Pre-existing Lease" shall mean the Lease for the Leased Land which was effective
on January 1, 1988, and would, absent this Lease, expire on July 1, 2006.
4
(11) "Transferred" shall mean any sale, assignment, sublease or other transaction, other
than an exempt transfer as defined in Paragraph 3.6(3), pursuant to which the right to
possession of the premises and the right to sign a new lease identical to this Lease is
transferred to another person.
B. Rental Payments.
Lessee shall pay annual rent in the sum of,,t l vt Au y"y'l �W 0 -wja� tarn 4$ 7. Z Z 7. 0 0 ),
payable at the rate of5tx ky;1dre-awn dplIdA per month. Lessee shall
also pay, if applicable, deferred rent in the sum�epdrovisions
)upon execution of this Lease. Rent shall shcircle one) be adjusted every
seven (7) years after the date of transfer in accordance witht of Paragraph 3.B(4).
Annual rent, deferred rent, and periodic adjustments are based upon the following:
NB1-187371.V2 3 05/24/94
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off Date, the Subsequent Lessee shall pay annual rent equal to two and one-half
percent (21/2%) of Actual Sales Value determined as of the date of execution and in
accordance with Paragraph 3.A(1). The Subsequent Lessee shall also pay all
Deferred Rent concurrent with the execution of this Lease. The annual rent shall be
adjusted every seven (7) years following the Execution Date in accordance with the
provisions of Paragraph 3.6(4).
(d) Subsequent Lessee: In the event of any transfer of this Lease to a
Subsequent Lessee who wished to sign this Lease after the Cut-off Date in a
transaction other than an arm's length assignment of this Lease, and sale of the
improvements on the Leased Land, if any, such as a gift or transfer by inheritance
other than an exempt transfer under Paragraph 3.13(3), the Subsequent Lessee shall
pay annual rent equal to the Average Actual Sales Value Rent calculated as of the
date of the transfer in accordance with the provisions of Paragraph 3.A(2). The
Subsequent Lessee shall also pay all Deferred Rent concurrent with the execution
of this Lease. The annual rent shall be adjusted every seven (7) years following the
Execution Date in accordance with the provisions of Paragraph 3.13(4).
(3) Exempt Transfers.
The provisions of Paragraph 3.13 regarding transfers shall not operate to increase rent if:
(a) Lessee is assigning an interest in this Lease to a trustee under a deed of
trust for the benefit of a lender;
(b) the transfer is caused by the death of a spouse and the full interest of the
deceased spouse is transferred to a surviving spouse;
(c) the transfer of an interest in this Lease is between or among tenants in
common or joint tenants in ownership of the leasehold estate created by this
Lease, and such tenants in common or joint tenants first acquired their respective
interests in this Lease simultaneously;
(d) the transfer or assignment is by a bona fide lender acquiring title by
foreclosure or deed in lieu of foreclosure of a trust deed; or
(e) the transfer is a sublease of the premises for three years or less; provided,
however, that in determining the term of a sublease, any options or rights to renew
or extend the sublease shall be considered part of the term whether or not
exercised;
(f) the transfer is caused by the dissolution of the marriage of Lessee and the
full interest of one of the spouses is transferred to the other spouse;
(g) the transfer is to an inter vivos trust, living trust or other similar estate
planning arrangement of Lessee; provided, however, that the provisions of
Paragraph 3.0 shall apply upon the death of such Lessee if the beneficiary of such
trust or other arrangement is other than the surviving spouse or a tenant in
common or joint tenant in ownership of the leasehold estate created by this Lease,
and such tenants in common or joint tenants first acquired their respective interests
in this Lease simultaneously; or
NB1-187371.V2 5 05/24/94
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expiration of the Grace Period, Lessee shall pay Lessor a late payment charge equal to four
percent (4%) of each late payment, or portion thereof. Rent payments shall be payable to
the City of Newport Beach and sent, or delivered, to the Finance Director at the address
specified for service of notices. Rent shall be payable by Lessee to Lessor in such coin or
currency to the United States as at the time of payment is legal tender for public and private
debts. Lessor and Lessee agree that late charges specified in this paragraph represent a
fair and reasonable estimate of the cost Lessor will incur by reason of any late payment by
Lessee. Any late or missed payment of rent constitutes a default pursuant to paragraph 13
of this Lease. Any failure by Lessor to declare a default and initiate termination of this
Lease due to a late or missed payment shall not be considered a waiver of the right of
Lessor to do so for that or any other late or missed payment.
C. Credit to Tidelands Fund. In calculating Initial Rent under this Lease, a credit was given
to certain of the Current Lessees equal to the annual amortization of the present value of the
additional property tax to be paid by such lessees during the remaining period of the Pre-existing
Lease. This credit, commonly referred to as the 'tax advantage", is shown on Exhibit D for each
affected lot. This credit was extended by Lessor to Current Lessees as consideration for entering
into this Lease. As a consideration in its approval of this Lease, the California State Lands
Commission required Lessor to credit its State supervised Tidelands Trust Fund by an amount
equivalent to the tax advantage derived from those lots in Beacon Bay comprising tidelands. This
amount is shown on Exhibit D for each affected lot comprising tidelands. Accordingly, Lessor has
unilaterally agreed to annually calculate the amount of such tax advantage derived from the
tidelands parcels in Beacon Bay and to credit an equivalent amount as revenue to the State
supervised Tidelands Trust Fund. This provision is included in this Lease to acknowledge the
agreement of Lessor with the California State Lands Commission, and does not affect the rights and
obligations of Lessor or Lessee under this Lease.
4. TRANSFERS.
A. Conditions Precedent to Transfer. Lessee may transfer this Lease subject to the prior
written consent of Lessor, which consent shall not be unreasonably withheld, delayed or
conditioned. Lessor shall consent to any transfer when Lessee and the proposed transferee have
complied with the following:
(1) Lessee shall furnish Lessor with executed copies of each and every document used
to effect the transfer.
(2) Lessee or the proposed transferee shall pay to Lessor a transfer fee of one hundred
dollars ($100.00); 'Ai
(3) Lessee shall execute a 'Termination of Leasehold Interest" for recordation; and
(4) The proposed transferee shall execute a new lease and execute a "Memorandum
of Lease" for recordation, which lease shall be identical to this Lease and have a term equal
to the remaining term of this Lease at the time of the transfer.
B. Transfer Information. The parties to any non-exempt transfer of this Lease shall provide
Lessor with all information relevant to a determination of the total consideration paid for the transfer,
as well as all documents which are relevant to the total consideration paid for the transfer. Lessee
and the proposed transferee shall provide this information not later than forty-five (45) days prior
to the proposed effective date of the transfer of this Lease. Lessor shall have the right, at its sole
discretion, to commission an appraisal of the fair market value of this Lease and improvements
NB1-187371.V2 05/24/94
V6/VZ/90 8 ZA'TL£L8T-T9N
sly6lx s,easseq loage Am yolynn aollou xaylo xo uolieulwxal to aollou 'llnelap to aollou ueuunn Aue
JO Adoo a siopue-i 6uiAldwoo 11e amI5 Bays aossaq („)apuaq 6uIAldwoo„) eouexgwnoue to axnleu
pue 'sSaippe 'eweu sll to aollou ueuunn aossaq ueAI6 sey xapuaq ayl ssalun aseaq slyl of luensind
aollou uaulxnn AUL, xepuaq Aue 9A16 01 uolie6llgo ou aney hays aossaq •xapuaq 01 83110N '8
•aouexgwnoua Aue to aollou ueulim xoud
aossaq eAl6 hays aassaq •aseaq slyl ul paplAoxd Alssaxdxo aslnrueglo se ideoxe aossaq to sisaxelul
pue sly6lx Ile of pue aseaq s14i ul suolioulsax pue suo111puoo 'slueuemo Ile of loofgns eq Keys
eouexgwnoue Auy •pueq peseaq ayi u1 lsaaaiul s,xossaq xagwnoue of xannod ayi aney lleys aossaq
iou aassaq JaylleN •aossaq to isenbei uodn ueol ayi 6uluxaouoo iepuel ayi pue aassaq ueen qeq
painoexe uolleluawnoop Ile y11nn aossaq aplAoxd of eeibe xepuel ayi pue aassaq 'xapuel aAlieind
ayi of saslwaxd ayi 01 81111 xo uolssessod ayi to aalsueal xol luawel5mie ue iou pue 'uolloesuml
6ulpuel opy euoq a sl ueol a xaylaym euiwjeiap of •aossaq to luasuoo eql inoyllnn esodxnd
Aue xol uo1loesmxl ueol epg euoq e w („ epuaq„) xapuel apy euoq Aue to xonel uI 'luawnilsul xellwls
xo `a6e61xow 'lsnal to peep Aq aseaq slyl aagwnoua Aew aassaq 'xagwnou3 01 1018 'd
'S3�Nt/li9Wfl�N3 'S
•9•E u01138S 10 suolslAoxd ayi of loafgns aseaq slyl to aalsueal a se asealgns
yons ieail of aossaq 11wxad (II) xo `aseaq slyl xapun aassaq ayi Aq llnelap to ivana ue eq (I) 'aossaq
to uolldo ayi le 'Mays asealgns polxodxnd xo paldwaue yons pue `ioalle xo aoxol ou to pue p1oA aq
hays easselgns eAllelnd eql of aseaq s1gi ul isaxaiul xey/sly to Ile AIlelluelsgns xo Ile to aassaq uegl
eql Aq xalsuexl a 'asln6slp of papualul Si xo 'se loal}a olwouooa awes ayl Allelluelsgns aney xo `ol
ivalembe Alleliuelsgns aq of peulwjelep sI yolynn seslwaxd ayi to asealgns polxodxnd Auy •pueq
paseaq ayi 10 aassalgns Aue pue aassaq ayi uaamleq `sluawaax6e Iwo Ile to Ilnl uI poslApe eq of
pue sluaweeibe uellpm lie to saldoo 8Al03ex of 'aassaq ayl of lsenbe i uaulxnn uodn 'iy6u ayi aney
sawil Ile le Ileys aossaq •aassalgns aAlieind ayi of aseaq slyi ul isaxaiw xay/sly to Ile AIle1lueisgns
xo lie to aassaq uayi eql Aq xalsuexl a 'asln6slp of papualul ale xo 'se 108119 OIW00038 awes
eql Allelluelsgns aney iou op 'ol lualeAlnbe Allelluelsgns lou axe sasealgns yons lI (sluawlsnfpe
leluax to ioedsax uI) 9•E ydex6exed to suolslAoxd xaylanl ayi woxl ldwaxa aq Aluo Ileys (e)(E)9'E
uolloas ul of paxxalax sxalsuexl leyl sallied ayl to ivalul ayi sI it •sasealgnS to 11pny •Q
•xalsuexl ldwaxa Aue loago of pasn sluawnoop
Ile to saldoo yllnn aossaq ysluxnl lleys aassaq '.ranamoq 'pap!noad '(S)9•S ydex6exed uI peouaxalax
„sxalsuexl ldwaxa„ ey1 xol paxmbax lou s1 luasuoo s,1oss8q •uo1lewxolul xalsuexl ldwaxa •0
•eluxollleo uxaylnos ul sleslexdde lellueplsax uI peouauedxe pue elwollleo to
aleis ayi ul ssoulsnq lonpuoo of pasueoll xaslexdde IyW ue Aq palonpuoo aq hays 9'b ydex6exed
slyl xapun aassaq xo aossaq Aq peuolsslwwoo leslexdde Auy •sleslexdde onnl ayi to obexane ayi
(II) xo 'xalsuexl ayl xol uoliexaplsuoo palels ayi (I) to xaleax6 ayi eq pet's sluawAed Ieluax pue luau
anIPA sales Ienioy 96exany bullelnoleo to sasodxnd xol enleA sales Ienioy ayi •uolleldwoo uodn
Ieslexdde ayi to Adoo Ilnl a yllnn aossaq aplAoxd Keys pue aossaq of aollou ayi xaile sAep (oc) A1x►yi
ueyi xalel ou paialdwoo aq of leslexdde yons asneo aassaq `luane yons ul •xaslexdde luepuedepul
ue Aq palonpuoo eq of xalsuexl to elep ayi to se uoaxayi sluaweAoxdwl pue aseaq slyi 10
enleA to lxew xnel ayi to lesmidde ue asneo of sloole aassaq ieyi aossaq sallliou aassaq ayi lxodax
ayi pue aollou-yons 6ui/geoax jade Shp (9L) uee:gll ulylIm ssalun sluawAed 1eluax pue luau onleA
sales Ienioy 96exany 6u11e1noleo to sasodxnd xol onleA seleS lenioy ayi poweep eq lleys enleA
pies pue 'uodax leslexdde yons to Adoo 11n1 a yllnn aassaq aPlAoxd pue aassaq eyi fi4gou os Heys
aossaq `(%00 luaoxad uai ueyl axow Aq aassaq ayi woxl pamooax uonewxolul ayi uo poseq pled
aq of uollexaPlsuoo lelol palels eql spaeoxe aossaq Aq peuolsslwwoo xaslexdde ayi Aq peulwxalep
enleA ayi 11 •aassaq ayl woxl uollewxolul pauolluawaxole ayi to aossaq Ag idlaoei jade sAep
(oc) Alxlyl ueyl xalel iou paloldwoo aq lleys Ieslexdde yons Auy •xalsuexl to alep ayi to se uoaxayi
under this Lease. Notice shall be deemed given by Lessor to Lender five (5) days following deposit
in the United States mail, certified and return receipt requested, postage prepaid, and sent to Lender
at the address furnished in writing by Lender.
C. Modification. Lessor and Lessee agree that they will not modify, surrender or cancel this
Lease by mutual agreement without the prior written consent of Lender.
D. Rights of Lender. Any Lender holding or the beneficiary of a security interest or lien on
this Lease and the leasehold estate created hereby shall have the right, during the term of the
Lease, to:
(1) perform any act required of Lessee pursuant to this Lease;
(2) transfer this Lease to the purchaser at any foreclosure sale, the assignee in the
event of an assignment in lieu of foreclosure, or to acquire the interest of Lessee pursuant
to foreclosure or assignment and thereafter transfer this Lease to the Lender's successor.
Lender shall have no right to transfer this Lease unless and until Lender has cured all defaults
requiring the payment or expenditure of money by Lessee.
E. Right of Lender to Cure Default. Lessor shall give written notice of any default or breach
of this Lease by Lessee to Lender and afford Lender the opportunity, after notice, to:
(1) cure the breach or default within ten (10) days after expiration of the time period
granted to Lessee for curing the default if the default can be cured by payment of money;
(2) cure the breach or default within thirty (30) days after expiration of the time period
granted to Lessee for curing the default when the breach or default can be cured within that
period of time; or
(3) cure the breach or default in a reasonable time when something other than money
is required to cure the breach or default and cannot be performed within thirty (30) days
after expiration of the time period granted to Lessee for curing the default, provided the acts
necessary to cure the breach are commenced within thirty (30) days and thereafter
diligently pursued to completion by Lender.
F. Foreclosure in Lieu of Cure. Lender may forestall termination of this Lease for a default
or breach by Lessee by commencing foreclosure proceedings subject to strict compliance with the
following:
(1) proceedings are commenced within thirty (30) days after the later of (i) expiration
of the time period granted to Lessee for curing the default, or (ii) service on Lender of the
notice describing the breach or default;
(2) the proceedings are diligently pursued to completion in the manner authorized by
law; and
(3) Lender performs all of the terms, covenants and conditions of this Lease requiring
the payment or expenditure of money by Lessee until the proceedings are complete or are
discharged by redemption, satisfaction, payment or conveyance of this Lease to Lender.
NB1-187371.V2 9 05/24/94
b6/VZI90 Ol ZA'TL£L9L-T9N
aassaq pue 'Aq pe mbei aq Am 4014M sas!waJd 841 uo luawano.idwl jo amlongs Aue of siledej jo
suolleaalle 'suolllppe Aue 'apew eq of esneo jo 'a�ew pegs aassaq •sMe-1 qj!M a3ue11dwo:o •3
•uoll!puoo tielmes pue ales pue l►edai pue aapio pooh ui luaweAoidwl eql u!elu!ew
of tiesseoeu se jo Mel Aq pajinbei WOO 014101 saslw0Jd eql uo sluawanoadwi jaglo pue 'suleap
`siames 'spijM 'sedid `sa11!I!1n Ile panedaa pue peuielulew 'pelonalsuoo eq of esneo Reqs aassaq
•uo1lonilsep to a6ewep eql of 6uilum ui 'paluesuoo seg josse-1 pue uoilongsuooaj io 6ullepowei
glint uoilounluoo ui pe4oilsop bulaq eje sluawanoidwi eq1 ssalun `loalagl uo13onilsop Jo a6ewep
Aue 6uiMollol pue, paseaq eq1 uo sluawanadwl Am longsuooaj jo aledaa Reqs aassaq •u0111Puoo
Apapio pue Ajullues `albs 'uealo a ui pue medal pue aapio pooh u! 'sluawanoadw) jeglo pue
sAein>laed `sgano 'sNIeM 'sa!1!I!oej 'sajnlonals IIe 'uoilel!wil lnogllM 'bulpnIou! 'sesuaad eql `uieluiew
pue deeN 'aosse-1 of asuadxa ao lsoo Aue lnogl!M pue aseaq slgl to weal eql 6ulanp sewil IIe le 'Reqs
aassaq 'saslwaad eql to lied ao Ile lnoge ao uo ui saledaa ao `sluawanoadw! `suo1llppe `suolleaalle
'sa6uego Aue *Mew of paiinbaa eq lou Ilegs aossaq •sluawanoadw! to aoueualuleW '8
-Mel Aq pannbaa 3! Aouebe alels aaglo Aue pue uoissi w.uoo
lelseoo eluaol!leo aq1 woal saanlonals uleluiew jo/pue lonalsuoo of uoissn.wad ulelgo osle 11egs
aassaq •sueld pue 'seioilod `suoilein6aa `suoilnlosaa 'seoueulpao Ai!o IIe gllM Aldwoo Allnl pue l!waad
A1!o ale!adoadde Aq pezUoglne aae uo113na1suo3 pue saanlonals eql se buol os sesodand leiluepisaa
aol pueq paseaq eql uo saanlonals u!elulew pue lonalsuooaa 'lepouaaa `lonalsuoo 'gsllowep Am
aassaq •sesodand leguep!saa aol Alelos aq Ilegs pue-1 paseaq eql •pueq paseaq to ash V
3�Nt1N31N1t/W (INV 3sn •9
'Mel
alels Aq pap!Aad se lsnal to peep Aue aapun ales to aollou ao/pue llnelap to aollou Aue to
Adoo a aol isenbaa uall!aM s,aossaq `asuadxa alos s,eassaq le 'paooaa 'luawnalsul Alianoes
aaglo ao peep 1sna1 Aue to uojlepaooaa aql aa1}e sAep (00 ua1 ulgl!M `Reqs aassaq (z)
'aseaq s!ql of ai1!i sploq aapuaq eql se buol os Aluo
aseaq sigl aapun aassaq aq1 to suoilebilgo aql waoued of algell aq Ilegs aapuaq Auy ( l)
:aapuaq Aue pue aassaq aossaq of Aidde Reqs suolsmid buiMollol aql •snoeuellaos!W •H
•aseal Mau ay1 buiaedaad u! aassaq woal sesiwaad eql to uoissessod
6UI18Aoo9a 'aseaq sigj bu!leuiwaal u! paaanoui (seal s,Aawoue bulpnloui) sasuedxa
pue slsoo elgeuoseaa lie /fed eseel Mau eql to uoilnoexe uodn 'Ilegs aapuaq (t,)
•aapuaq Aq paipowei aq Algeuoseaa ueo legs
aassaq Aq pau!wwoo goeaaq ao llnelap aaglo Aue 'Apowei of bullpen u! 98a6e ao `Apawaa
AIlnl Reqs pue'uoileumal sl! aol 1nq aseal Mau eql to uoilnoaxe uodn anp aq pinoM
1e41 swns Ile pue Aue Aed pegs aapuaq `aossaq Aq eseal Mau 041 to uoilnoexe uo (g)
•elgeoildde aa6uol ou aae ao pap!llnl ueeq Apeaale aneq goigM asogl
aol ldeoxe aseaq sigl se suoilipuoo pue swa01 awes ag1 suleluoo aseal Mau aq1 (Z)
-aseaq s141 to uoileulwaal eql Jade Sf%ep
(OE) Ala!gl uigllM aapuaq Aq aossaq uo pejues si aseal Mau eql aol lsenbaa uall!aM eqi ( l)
:pap!Aoad eassel se aapuaq ql!M
areal Mau a olui aalua Ilegs aossaq 'aassaq Aq goeaaq ao llnelap Aue to asneoeq paleuiwaal aq ao
aleuiwaal aseaq sigl pinogs 'aseaq sigi to uolslAoad aaglo Aue 6uipue1sg11M9oN 'aseaq meN •0
shall otherwise observe and comply with, any law, statute, ordinance, plan, resolution or policy
applicable to the Premises. Lessee shall indemnify, defend and hold Lessor harmless from and
against any loss, liability, action, claim or damage, arising out of, or in any way related, to Lessee's
failure to comply with, and perform pursuant to, provisions of this subparagraph C. All repairs,
additions, and alterations to the structures or improvements on the Premises shall conform to all
applicable laws, ordinances, regulations, plans, policies and resolutions and all work shall be
performed with reasonable diligence, completed within a reasonable time, and performed at the sole
cost and expense of Lessee.
D. As Is Condition of Premises. Lessee expressly accepts the Premises "as is" and
acknowledges that Lessor has made no representations or warranties as to the suitability of the
property or any construction or improvement. Lessee shall conduct all tests necessary to determine
the suitability of the property for any proposed construction or improvement, including, without
limitation, the amount and extent of any fill, and related factors. Lessee expressly acknowledges
that Lessor 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. Lessee expressly acknowledges that, while the
legislature of the State of California has purportedly removed the public trust restrictions on use of
the Property pursuant to the Beacon Bay Bill, the Leased Land may constitute filled tidelands, and
Lessor 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 Lessor to lease the Leased Land for the purposes provided in this Lease, Lessor 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 Lessor
to lease the Leased Land for the purposes provided in this Lease.
7. TAXES AND UTILITIES.
It is understood by Lessor and Lessee that this Lease shall give rise to a possessory interest tax obligation
and that the execution of this Lease will constitute a reassessment event which may give rise to a material
increase in the possessory interest tax currently payable by Lessee under the Pre-existing Lease. Lessee
shall pay, before delinquent, all utility charges and any general and special taxes, assessments or other
governmental charges, if any, which may be levied on the Leased Land, and/or any improvements,
including, without limitation, any possessory interest tax. Any lien for unpaid utilities, taxes, assessments
or charges shall not attach to the leasehold interest but only to improvements located on the Leased Land.
8. USE AND MAINTENANCE OF COMMON AREA.
Lessee shall have the right to use the streets, beaches, walkways, tennis courts, docks, piers, and common
landscaped areas in Beacon Bay (as depicted on Exhibit A) and which are leased to the Beacon Bay
Community Association by Lessor in consideration of the maintenance thereof by such Association and rent
to be paid by individual Lessees under their respective leases.
9. MAINTENANCE AND IMPROVEMENT OF INFRASTRUCTURE.
Lessor has no obligation to install, improve, repair, or maintain streets, curbs, gutters, water lines, sewer
lines, drainage facilities, street lighting or other facilities used by the residents of Beacon Bay (Infrastructure).
Notwithstanding Section 8 above, Lessor reserves the right, after a five (5) year period following the Effective
Date and upon approval by the Lessees representing a majority of the lots in Beacon Bay, to improve and
maintain streets, curbs, gutters, water lines, sewer lines', drainage facilities, street lighting, telephone and
electricity lines and other Infrastructure facilities in Beacon Bay at its initial cost and to assess Lessee for
NBL-187371.V2 11 05/24/94
b6/bZ/SO �` ZA'iLELBI-I9N
o1 rinfui jo Aliedoid of 96ewep to Nsu Ile sawnsse Agejeq aassaq `6ulo6aaol ayl to Iglaieua6 ay1 6u!llwll
Inoy1!M 'saslwaJd eqj inoge jo u! aassaq Aq peja}lns ao peulwiedaq � m yo!ynn s6ulyl jo )Iaom '�(lltiloe
Aue wal ao aassaq Aq ses!waad eqj to uolssassod jo asn ay1 o1 poloauuoo aauuew Am ui ao woa; bulspe
sallddns ao luawdmbe 'slupejew 'saowas `M ions 6uiAlddns jo buigs!wnl suolleaodioo jo swab 'suosied Ile
Pup Aue of 6ullinsai to 6u!n we 'seal ,sAeuione algeuoseei 6ulpni3u! 'Janaosleynn einleu Aue to spumep
pup 'sall!I!geiI 'sw!El0 `sassol 'sa6pwep 'slsoo 'suo!1p6!lgo 'uollop to sesnm 'suo1l3e Ile pup Aue lsule6p
pup woal seeAoidwe pup sluptues 'sluebe `smigo 'suo!ss!wwo0 pup spjeog '110uno0 A1!0 sl! 'josse-I
ssalwaey ploy pup pualaP `i(l!uwapu! Ileys aassaq 'sas!waJd ay1 uo jo u! aassaq Aq paaallns jo pou!wied
aq Aew yoigAA s6uigl ao liom 'Al!A113e Aup sp Mann sp 'saallAUI Jo slsen6 'WA!lpluasaidaa 'slua6e 'seaAoldwe
s,aasse-I jo 'aassaq Aq sas!wOJd ay1 10 uolssassod ao asn ay1 Jo 'sas!wald 8y1 10 uo11!PuO3 8y101 'Pale191
Aeon Aue u! ao `lo Ino bu!sue '1!ns ao w!Elo yons Aue to awoolno jo 1pow ay1 to sselpieft seal ,sAawoue
alcimoseei 6ulpniou! 'aaAeos1egm amleu Aue to spumep pup sa!1!I!ge!I `sw!elo 'sassol 'sa6pwep 'slsoo
'suolle6!igo 'uolloe to sesnuo 'suolloe Ile pup Aue 1sumbe pup wojl seeAoidwe pup s1ueAJas `s1u06E `saao!llo
`suolss1wwo0 Vue spieog 'I!ouno0 Aj!O s1! 'jossaq ssalwiey ploy pup puelop `A41uwapu! Keys aassaq
'NOUVOUINW30Nl 'Zl
•Isaaalui ui sioss000ns
s,eassaq pup aassaq uo 6ulpuiq aq Ilpys pup pual poseaq ay1 y1!nn unj pegs suolloulsaa pup suolllpuoo
'slupuanoo PIES 'aouaaalaj s!yl Aq uiejay palmodmoui pup olaaay pat4mae a 1!q!yx3 u! Pau!eluoo
se suoileAaasaJ pup suo!l0IJlsaa 'suo1l!puo0 'sluEuanoa Ile Aq punoq aq pup ap!gE of seeibe aassaq
SNOIIOIHIS38 dMd SN0I11aN00 'S1NVN3A00 11.
-aossaq 10 spJo0aJ le!oueu!l
ay1 woal Alelos pup Allenuue paumalap aq lleys sa!1!!loel Al!unwwoo 6ulleaado pup bu!ulelulew
10 slso0 ayl -asEaq s!y1 to 140paJq leualew a alnl!Isuoo l!eys Aed of aanl!el Aue pup 'onp lunowe
eqj 10 eollou uallunn ja:4e skep (0E) Alaiyl u!yl!m pled aq I!eys jossaq Aq pannoui slsoo Ienuue
ay1 10 aaeys Elea oad s,eassaq • (slol onnl-Xluanas Alluanno) Aeg uooeog u!yl!m slol le!luap!saa
to jagwnu ay1 Aq slsoo s Jossaq 6u!p!Alp Aq pauiwielop aq Ileys aaeys Elea oad s,eassaq •1uabe
luawa6Euew a Aq pabjeyo eel ay1 jo eel wowabeuew algeuoseal a bu!pnlou! `sall!I!oel Al!unwwoo
ay16u!lmodo pup 6umieluiew ui sesuedxa algeuoseei s,aosse-j to aaeys Elm oad a Aed Ileys aassaq
'Iuana yons ui sa11!l!0El Al!unwwoo eAoidwi ao llelsul 'j!edej 'welu!ew of uo!l000ssy Al!unwwo0
ayl to suo!Ie6llgo ayl ewnsse 'uo!le6!lgo InoLlIlm pup uolldo s1! le 'Aew jossaq 'sa!I!I!oel Al!unwwoo
u!Elulew o1 seseao ao si!el uolleioossy Allunwwo0 ayl l! '6 uo110aS 10 suolslnoid at -Il o1 luensind
aossaq 01 paAJasaJ sly61J ay1 01 uolllppe ul •seaad uowwo0 to aoueualuIBIN aossaq •0
•aseaq sigl to yoeaaq leualew a alnulsuoo Ileys g ydej6Eaed s1y1
pup y ydeift"Ed 10 suolsmid ay1 y1!nn Aldwo0 of aanllel s,eassaq •uo!lmossy ay1 Aq passassu ao
paml Apadoid sa6aeyo aaylo pue sluawssasse'seal'sanp plleA IIE A3uanbuilep alolaq 'uo!Ie!oossy
ay1 o1 fxEd o1 pup 'uoge!0ossy ayl to suo!1elnbei pup salna Ile pup `snnelAq 'uo!leaodmoul
to selailay ay1 Aq ap!ge o1 seeibe aassaq •suo!1p1n6aa pue safna y1!en aoueildwoO •8
-uo!1e!3ossy A1!unwwo0 Aeg uooeeq ay1 to
6u!puels pooh ui jegwew p 'uiewei o1 aseaq sigl to weal ay16u!anp pup 'awooaq of saaa6p aassaq
'luaweei6y s!y1 o1 luensind aassaq to sly61j ayl to Aue to e3uenulluoo ayl o1 uoil!puoo ssaadxe up
se pue 'aseaq sigl to uoilejap!suoo ay1 to Ind Ieualew a sy •uo11e!3ossd u! d!ysaagwoW .d
NOIIVIOOSSV AliNf1WW00 Ot
-aseaq s!yl to wiel
6UIUIEwaa ayl JOAO Iuaa 10 waol ayl u1 aassaq wojl slsoo yons loelloo of pup 'slsoo yons to aaeys e1ej oid e
persons in or about the Premises from any cause except for damage or injury resulting from the negligence
or willful, fraudulent or criminal conduct by Lessor and/or its officers, employees, agents and
representatives, and Lessee hereby waives all claims in respect thereof against Lessor.
13. INSURANCE.
A. General Conditions. All insurance required to be carried pursuant to this Section 13 shall
be obtained from reputable carriers licensed to conduct business in the State of California. Each
policy required to be carried pursuant to this Section 13 shall name Lessee and Lessor as additional
named insureds, and shall provide that the policy may not be surrendered, cancelled or terminated,
or coverage reduced, without not less than twenty (20) days prior written notice to Lessor.
B. Fire Insurance. Lessee shall, during the term of this Lease, insure all structures and
improvements on the Leased Land against loss or damage by fire or other risk for residential
structures. The insurance shall provide coverage to at least ninety percent (90%) of the full insurable
replacement value of all improvements on the Leased Land, with the loss payable to Lessee unless
this Lease is terminated by Lessor for default of Lessee in which case the proceeds of insurance
shall be paid to Lessor.
C. Liability Insurance. Lessee shall, at Lessee's sole cost and expense, procure and maintain
during the term of this Lease, a broad form comprehensive coverage policy of public liability
insurance which insures Lessee and Lessor against any loss or liability caused by, or in any way
related to, the condition, for Lessee's use and occupation, of the premises in amounts not less than:
(1) $500,000 per occurrence for injury to, or death of, one person;
(2) $100,000 for damage to or destruction of property.
14. DEFAULT.
A. Events of Default. The occurrence of any one or more of the following events shall
constitute a material default and breach of this Lease by Lessee:
(1) the abandonment of the Premises by Lessee;
(2) the failure by Lessee to make any payment of rent when due if the failure continues
for three (3) days after written notice has been given to Lessee. In the event that Lessor
serves Lessee with a Notice to Pay Rent or Quit pursuant to applicable unlawful detainer
statutes, such Notice to Pay Rent or Quit shall also constitute the notice.Wquired by this
paragraph;
(3) the failure by Lessee to perform any of the provisions of this Lease and any Exhibits
attached hereto to be performed by Lessee, other than described in Paragraph 14.14(2)
above, if the failure to perform continues for a period of thirty (30) days after written notice
thereof has been given to Lessee. If the nature of Lessee's default is such that more than
thirty (30) days are reasonably required for its cure, then Lessee shall. not be in default if
Lessee commences the cure within said thirty (30) day period and thereafter diligently
prosecutes the cure to completion; or
(4) the failure of Lessee to provide Lessor with all relevant information regarding the
total consideration paid in conjunction with any transfer of this Lease;
NB1-187371.V2 13 05/24/94
46/4Z/90 17`
9ass8-1 anallaJ lou pays 6ulllalaJ agl 'saslwaJd ayl to uol;Jod a Jo Ile slalaJ aosse-1 11 *uolloe
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0141 ui pa11loeds awll 0141 lg sluewALd yons e>lgw llegs aassaq 's0slw0Jd ayl 10 uolssassod
01 lg6!J s,0asse-1 salgu!wiel Josses 18143 01ep 0141 of do aseaq s!yl Aq pannbe i slunowg
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IB saslwe'd ag110 uolliod g Jo pe falai lou peau 1nq 'Am Josses `esee-1 slyl of luensmd
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uo11g6llgo �(ug 10 aa
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obalueo.ied euo lg lunowg yons 6ullunooslp Aq palndwoo eq Ilegs (!) asnel0 ui of paJJalaJ
lunowe agl to imeMe 10 ow11 0141 le gljonn a41 -aosse-1 of anJoOe slunowe alep ag1 woJl
wnuue Jad (%o l)1ueoJad ual 10 aleJ agl le lsaialul 6ulMolle Aq palndwoo aq Ileys anoge (!)
asnelo ul of paiialaJ 1e141 uegl aaglo slunowe Ig1uaJ pe 10 ,piamB 10 awll ayl 1g ylJOM„ a141
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sesuedxa 'uolssassod 6u1Jan03aJ 10 1S03 ayl 'uolleuw!I lnogl!M '6ulpnlou! 'g3eaJq
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ay1 spaaoxa pagMg to owll ayl J011e weal ayl 10 eougleq ayl Jol 1uai leuo1l!ppe
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:6ulMollol
ag1 'uollel!w!I lnoyl!M '6ulpnloul 'Mel 10 uolslnoid Jaylo Aue Jo 'apoo I!AIO eluJollleo
941 to Z1961. uo1108g 01 luensind po1lllue s! Josse-1 yo114M o1 slunowe lle easse-1 woJl
JOAooaJ of pa1igue aq Ileys Josso-1 'luana Bons ul 1ossa-1 01 sas!waJd ayl to uolssassod
Japuaiins Alaig!pewwi pegs aassa-1 pug aleulwJal pegs aseaq slyl ase0 4011-iM ul 'sueaw
In1MgI Aug /(q saslwaJd posea-1 ayl to uolssassod o1 ly61J s,easse-1 algulwJal W
ZA'ILfLBI-i8N
:bulnnopol 0gl op 'Mel Aq paulwJad salpowei Jo sigblJ Aug 01 u0111ppe u! '/(euJ Jossa-1
'yt,L ydeJ6eJed u! poullop se eessa-1Aq llnelep Aue to luana agl uI •salpawaa s,pJ0lpuej '8
•0011ON 041 ul sloole os Josses ssalun esee-1 s!yl to uollgulwJal a Jo ejnl!ejio1 g poweep
aq pet's aollou Bons ON -awl1 to poped alggolldde eqj uiq:p^ 'aq Am asgo ayi se 'simig u1 s1
1ey11uai 041 Aed Jo asue-1 slgl to suolslAOJd 0141 wJoped aassaq legi pumep pgys pug 'suolslAoid
asual algeolidde 0141 pue 11nelop pa6alle 041 A41oeds pet's ytq gdgJ6gJed slgl Japun uaA16 s8011oN
-sAup (0E) A1*41 u!gl!M pa6Jeg0slp lou
si amzlas yons ejegm 'esee-1 ayi u! 1s0Jalu1 s,eassa-110 Jo saslwaJd ay1 le paluool slasse
s,a0ssa-I10 Ile -AIlglluelsgns to amzlas lelolpnf Jaylo Jo uol;noexe 'luewyogu-e 0141 JO 'sAgp
(0E) Alim u1141!M a0ss0-1 o1 pejolsoi lou s! uolssassod.ejegm 'asea-1 eqi u! Imam s,aassa-j
10 Jo saslwaJd 0141 1g palgool slassg s,00ss0-1 10 lig AIlg!luglsgns 10 uolssassod aile1 o1
3BA1808J Jo oeisnJl a 10 luawlulodde ayi'sAep (09) /(ixls ulyllM pesslwslp si awes ag1 ssalun
AoldniMueq o16u!lLIej MgI Aug 10 luawa6up ug Jo uollgzlue6Joej Jol uo1l!ied g Jo 1druMueq g
pa6pn1pe aassa-l.OAgg of uollged g 10 easso-1 isulg6g Jo Aq 6u1111 ayl 'saol!pejo 10 1!laueq
ag1 Jot luawa6uLJJe IgJaua6 Jo Iuawu6lssL, Ig1au96 Aue to easse-1 Aq 6uplew ay1 (g)
of any obligation pursuant to this Lease; provided, however, Lessor shall apply the rent or
other proceeds actually collected by virtue of the reletting against amounts due from
Lessee. Lessor may execute any agreement reletting all or a portion of the leased premises
and Lessee shall have no right to collect any proceeds due Lessor by virtue of any reletting.
Lessor shall not, by any reentry or reletting or other act, be deemed to:
(a) Have accepted any surrender by Lessee of this
Lease or the leased premises;
(b) have terminated this Lease; or
(c) have relieved Lessee of any obligation pursuant to this Lease unless Lessor
has given Lessee express written notice of Lessor's election to do so.
(3) Lessor may terminate this Lease by express written notice to Lessee of its election
to do so. The termination shall not relieve Lessee of any obligation which has accrued prior
to the date of termination. In the event of termination, Lessor shall be entitled to recover the
amount specified in Paragraph 14.B(1).
C. Default By Lessor. Lessor shall not be in default unless Lessor fails to perform obligations
required of Lessor within a reasonable time, but in no event later than thirty (30) days after written
notice by Lessee to Lessor specifying wherein Lessor has failed to perform such obligation. If the
nature of Lessor's obligation is such that more than thirty (30) days are required for performance,
then Lessor shall not be in default if Lessor commences performance within such thirty (30) day
period and thereafter diligently prosecutes the same to completion.
D. Stay of Obligations. Neither party shall be under any obligation to perform or comply with
its obligations pursuant to this Lease after the date of any default by the other party.
E. Determination of Rental Value. In any action or unlawful detainer commenced by Lessor,
the reasonable rental value of the Leased Land shall be deemed to be the amount of rent and
additional rent (such as reimbursement for costs of Infrastructure improvements or the payment of
taxes or assessments) for the period of the unlawful detainer, unless Lessor/Lessee shall prove to
the contrary by competent evidence.
F. Waiver of Rights. The failure or delay of either party to exercise any right or remedy shall
not be construed as a waiver of such right or remedy or any default by the other party. Lessor's
acceptance of any rent shall not be considered a waiver of any preexisting breach of default by
Lessee other than the failure to pay the particular rent accepted regardless of Lessor's knowledge
of the preexisting breach of default at the time rent is accepted.
G. Waiver of Right of Redemption. Lessee waives any right of redemption or relief from
forfeiture pursuant to Code of Civil Procedure Sections 1174 and 1179 and/or pursuant to *any
existing or future statutory or decisional law in the event Lessee is evicted or Lessor takes
possession of the Premises by reason of Lessee's default.
15. SURRENDER OF POSSESSION UPON EXPIRATION OR TERMINATION.
A. Surrender of Premises. Upon the expiration or termination of this Lease, Lessee agrees
to peaceably deliver possession of, and agrees to vacate without contest, legal or otherwise, the
Leased Land. Lessor, at its sole discretion, may record a document evidencing the expiration or
NB1-187371 . V2 15 05/24/94
46/bZ/90 91. ZA'TC£LST-I9N
PUB :aseaq sigl 10
weal aqj to uoilmicixe ay1 to amp a41 of 6uiNei 10 amp eqj wojl 6ululewai sjeoAjo
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euo 10 yljom juasaid aql jot jojoel e41 Aq onjuA 19)Ijew ngl yons 6uiAldilInw Aq
pejunooslp '6uplel to a1up aqj to se (buillemp yons of seoueuel,ndde pug 6uillemp
eqj 10 aAlsnloxe) peAoidwi su saslwaJd aqj to enleA 1aNjew alel eql (e)
:6uimollol aqj jo wns eqj of lenbe Junowe ue of paligue eq Ilggs josses ayl W
:smollol se poluoolle aq Ile4s uiejegl jsenjui ployaseal s,easse-i pug sas!wajd OLI l0 6u1mgl
Iglol a41 aol papiume sa6ewep pue uoljesuadwoo py •6uiMel Ielol - piemv to uolleoolid 'O
-- -oiejegl uollelaa u! A111!quil jeglanl Ilg woal posealai
aq uodnaiayl llels sallied all pug 'jouwapuoo aqj Aq buiNul to alep aqj of do eassa-I Aq pled
aq IIe4s uaNel loajall uoiliod jo puM pasga-1 aqj of elgginglju7e pug aapunajay aosso-1 of aassaq
Aq algeAed sa6jeyo jallo pug slsluaj Ile 'Ind ui jo alogm ui poleuiwial os si assay s!yj 11 'pus'I
pasea-i p!gs to 6upiel to alep a41 10 se aluum ial pug aseao (legs uaN ul loejayl uoiliod all jo pue-1
posea-1 aqj 01 pue u1 eassal aqj 10 Ojelso ployaseal eqj uayl 'u!ewop Jueu!wo 10 aamod aqj aapun
6uiNej Ieilied ao 6uiNej lejol a aq Ilegs aja41 'loajeq weal aqj buljnp '11 •6uiNel 10 100113 '8
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-s6ulpaaooad lewaol to
nail ut ulewop lueu!wo to jamod a41 jepun 6uplej a to leei4l jepun f%j!I!Jn o!Ignd ao Al!aollne
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-anoge pau!lap se 6uplsJ Iejol a einipsuoo lou scop 4oiLlm
sasmaid aqj to Aluo uoiliod g 10 6uiNel agj ueaw (legs fimiel jellied„ weal a41 (Z)
-sesodind Islluaplsai a4J jol easse-1 Aq loalagl asn all jiedw! Alleguelsgns ao Juanaad of se
pulal posea-1 all to 40nw os 10 6uplel all jo ulewop luou!wa 10 aamod all aapun sas!waid
aallue eqj 10 6ul>{ej all ueaw Ilels 9 L uo!loag s!ll ui pasn se „6ulmul lelol„ w.ial all ( L)
•swaal to suo11!u11aa V
'NitlW041N3NIW3 '9l
•uoijejap!suo0 Aug 10 luewAed eqj jnoyl!m fossa -i
10 Aliedoid aqj ewooeq I1e4s Aegi '8'Sl gcImbuied sigl ui pap!Aoid ewll aqj uigl!m peAowei jou
are sluaweAoidwi pug s6ulpl!nq aqj 10 AUB Juana agj ul 'UOIIIpuoo AIaapao pug ueelo a u! Jossaq
01 ses!waid eq) jo uolssessod jepuenns pue Isnowaa sage l5qulewei sjuawanoidwi ao s6u!pl!nq
ag110 sjagd aaglo pug sijgep 'suoilepunol Ile eAowei pug suoljeneoxe Ile II!l IIegs eesse-I •esga-1 s14j
10 wial eqj jo uo!lej!dxe m4u sAep (06) Ajeu!u uagl jejel ou ajaidwoo aq lsnw Ignowei pug easse-1
10 esuedxe pug jsoo egos eqj le eq Ileys lueweAoidwi jo 6u!pl!nq Aug to IgnoweH •pue-I posee-I
agj uo pollejsui ao 11Inq sluawanoidwi pug sbu!pl!nq Ile puM posea-1 aqj woJ1 eAowei of 14611 041
ane4 Ilg4s aassaq 'Mle-j s!gJ 10 suo!s!Awd e41 10 Aue to 1inglep ui uagj jou si eesse-I leyj uoilipuoo
uo pug 'asee-1 s141 10 uuej aqj 10 uoilej!dxa aqj uodN •sluawanoadwl 10 Ienowaa '8
•juawAed 10 wjol ael!w!s
Jo e0ugls!sse u011e00181 eA!aoaJ 01 1g6u Aug SWUM aassaq •1saJalu! ployaseal aqJ 10 uo!Jeu!wJal
(b) The present worth of rents due during the period from the date of taking
to the date of the expiration of the term of this Lease, computed by multiplying the
annual rent then payable by the factor for the present worth of one dollar ($1.00)
per annum at nine percent (9%) per annum compound interest (Inwood Coefficient)
for the number of years in such period.
(2) The Lessee shall be entitled to the amount remaining of the total award after
deducting therefrom the sums to be paid to Lessor as hereinafter provided.
D. Allocation of Award - Partial Taking. All compensation and damages awarded for the
taking of a portion of the Leased Premises shall be allocated and divided as follows:
(1) The Lessor shall be entitled to an amount equal to the sum of the following:
(a) The proportionate reduction of the fair market value of the Premises as
improved (exclusive of the dwelling and appurtenances to such dwelling) as of the
date of taking, discounted by multiplying such proportionate reduction in fair
market value by the factor for the present worth of one dollar ($1.00) at nine
percent (9%) per annum compound interest for the number of years remaining from
the date of taking to the date of expiration of the term of this Lease; and
(b) The present worth of the amount by which the rent is reduced computed
by multiplying the amount by which the annual rent is reduced by the factor for the
present worth of $1.00 per annum at 9% per annum compound interest (Inwood
Coefficient) for the number of years remaining from the date of taking to the date
of expiration of the term of this Lease.
(2) The Lessee shall be entitled to the amount remaining of the total award after
deducting therefrom the sums to be paid to Lessor as hereinabove provided.
E. Reduction of Rent on Partial Taking. In the event of a partial taking, the rent payable by
Lessee hereunder shall be adjusted from the date of taking to the date of the expiration of the term
of this Lease. Such rental adjustment will be made by reducing the basic rental payable by Lessee
in the ratio that the Fair Market Rental Value of the Premises at the date of taking bears to the Fair
Market Rental Value of the Premises immediately thereafter.
17. ATTORNEYS' FEES.
Should either party be required to employ counsel to enforce the terms, conditions and ggvenants of this
Lease, the prevailing party shall recover all reasonable attorneys' fees and charges (and court costs if
applicable) incurred therein, whether or not court proceedings were commenced.
18. REMEDIES CUMULATIVE.
The rights, powers, elections and remedies of the Lessor or Lessee contained in this Lease shall be
construed as cumulative and no one of them shall be considered exclusive of the other or exclusive of any
rights or remedies allowed by law, and the exercise of one or more rights, powers, elections or remedies
shall not impair or be deemed a waiver of Lessor's or Lessee's rights to exercise any other.
NB1-187371 . V2 17 05/24/94
b6/bZ/90 8l ZA't L£C8t-Z9N
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ao!lou uall!jm Loud ,sAep (0£) Aij!gl uodn jossaq jo jossaq /(q paleu!wial aq Aew Aouepual gluow-of-gluow
aql -Aouepual gluow-of-gluow a of algeo!idde aq Am Aet ll se jslosui aseaq s!ql 10 suo!s!Aoad eql
of loafgns gluow-of-gluow woal lueuel a pawaap aq 11egs aassaq uegl 'aassaq wojl luaa sideoos fossa-!
pue sallied eql ueemlaq 6u!llim u! luawaaa6e Aue lnogl!M asea-1 s!ql to weal agl to uo!lea!dxa Jal}e saslweJd
eql to uo!ssessod u! upwai 1legs 'aassaq japun 6upplo euoAue jo 'aassaq 1! 'JOAemOH -sallied Ile Aq
pau6!s 6u!1uM a ui ldaoxa pa!1!pow jauuew Aue u! jo 'pepualxe 'paMauej eq louueo aseaq s!gl 99A68 sallied
aql •uo!13aS s!ql u! pap!Aoid Alssaadxe se ldaoxa sas!waJd aql of ao u! s1g6la Aue aassaq OA16 ao aseaq
s!g140 leMauaa a a1n1puoo lou !legs weal aql 10 uo!lej!dxa mp, aassaq f%q JOAO 6u!ploq Auy •aseaq s!ql to
weal eql to uo!lej!dxa eql uodn ao!lou jeglml lnogrm p!oA pue llnu awooeq pue aleu!wial 11egs asea-1 s!ql
'a3AO E)NI0'10H 'ZZ
•uo!leo!unwwoo ao puewep
'ao!lou gons to pew sa1e1S pewit aql u! 1!sodep aql ja13e pue wa1 smog (ZL) oMl-Aluanas to uo!lej!dxa agl
(0 Jo '/UaA!Iap lenloe (!) to jaipea agl uodn ololdwoo pawaap aq Ilsgs aassaq jo aossaq uodn ao!Aaas gons
•aassaq aq1 of possaippe I!ew eql g6nagl Adoo a bu!pues osle pue saspoid
ay1 uo aould snono!dsuoo a ui ao!1ou aql 10 Adoo a bu!x!31s Aq uegl 'punol aq ueo auo ou 11 Cl
jo 'pueq paseaq aql bu!Adn000 aq Am oqm uo!laaos!p pue 96e olqups
to uosied awos ql!M Adoo s 6u!Aeal Aq pueq paseaq aql wojl luasge si aassaq 041 ll •0
ao 'aassaq Aq pags!uml ssaippe ssou!snq ao eouep!saa aql of 'p!edaid
a6elsod glp 'paggiao ao paialsibei `pvq salelS pa1!un ay1 u1 8311oN eql 6u!3!sodep Aq •g
jo'Alleuosied aassaq aql of Adoo a 6uuaA!lap /fig y
:jagl!a pa/uas aq Am 11 'aassaq uo jossaq Aq pomas aq of papualui si
ao!1ou l! •bu!llim u! aassaq of pegs!uanl je:geejeq aq Asw se ssaippe jaglo gons is ao '89L L-69926 eluaol!luo
'goeag :podmE)N '89L L xog •O•d 'pjeAelnog liodMaN 00CS V81O 40 10 'aa6euew AID 'aoAew aql 01
possaippe 'goeag liodMaN to A110 aq1 uo 'p!edaid abulsod y1!M `pagpiao ao paials!6ai 'I!ew Aq pamas ao
uaAI6 aq Aew 'aassaq /(q panaas ao uaA!6 aq o1 'Mel Aq jo aseaq s!ql Aq fol pap!Awd sao!lou ao ao!lou Auy
'S3O11ON 'LZ
•pueq paseaq 041 aano uo!lo!psunf lnWel
bu!Aeq AoIuabe jo Apoq Ieluawuaano6 j9g10 Aue jo 'goeag >JodMaN to 40 '06ueaO to f%lunoO 'e!wopluo 10
alelS eg110 sMel pue saoueu!pao 'salnlels 'suo!1elnbei 'salm pe y1!M Aldwoo of saaa6e pus slusuanoo aassaq
'SMV'I HIM 3ONVIldWOO '03
•eseaq s!ql 10 suo!3!puoo Jo suo!loplsaj 'sluewaaa6e
'slueuanoo `swial eql to Aue 10 jo awes eql 10 goeejq bu!paaoons Aus to JaA!eM s se penjlsuoo aq Iisgs
aseaq s!ql 10 suo!1!puoo ao suo!loplsai 'sluawoojbu 'slueuanoo 'swial eql 10 Aue to goeaaq Aus to JoApm ON
•uiejegl soueosalnboe Aue ao Aved aaglo agl 10 lied eql uo llnelop ao loalbau 'uo!ss!wo
gons /due 10 JaA!eM a se penjlsuoo aq Ilsgs jo aaMod jo lg6p gons ,&ue j!edw! pegs Aped aaglo eql 10 llnelap
Jo loalbau 'uo!ss!wo Aue wwl 6ulslje JaMod j01g6u Am es!ome of Aped jagl!e to uo!ss!wo jo Aclop ON
'a3AIVM ON '6L
23. QUIET ENJOYMENT.
Lessor covenants and agrees that Lessee, upon paying the rent set forth herein and observing and keeping
all covenants and agreements to be observed or kept by Lessor hereunder, shall quietly have and enjoy the
Leased Land during the term of this Lease without hindrance or molestation by anyone claiming by or
through Lessor.
24. SEVERABILITY.
If any term or provision of this Lease shall, to any extent be invalid or unenforceable, the remainder of this
Lease shall not be affected thereby, and each term and provision of this Lease shall remain valid and
enforceable to the fullest extent permitted by law.
25. MISCELLANEOUS
A. Representations. Lessee agrees that no representations as to the Premises have been
made by Lessor or by any person or agent acting for Lessor. Lessor and Lessee agrees and
acknowledges that this document contains the entire agreement of the parties, that there are no
verbal agreements" representations, warranties or other understandings affecting this agreement,
and Lessor and Lessee, as a material part of the consideration of this Lease, waives all claims
against the other for recision, damages, or otherwise by reason of any alleged covenant, agreement
or understanding not contained in this Lease.
B. Inurement. Each and all of the covenants, conditions and agreements herein contained
shall,' in accordance with the context, inure to the benefit of Lessor and Lessee and apply to and
bind Lessor and Lessee, as the case may be, their respective heirs, legatees, devisees, executors
and administrators, successors, assigns, licensees, permittees, or any person who may come into
possession or occupancy of said Leased Land or any part thereof in any manner whatsoever.
Nothing in this paragraph shall in any way alter the provisions herein contained against assignment
or subletting.
C. Joint Several Liability. If Lessee consists of more than one person, the covenants,
obligations and liabilities of Lessee pursuant to this Lease shall be the joint and several covenants,
obligations and liabilities of such persons.
D. Captions. The section and paragraph captions used in this Lease are for the convenience
of the parties and shall not be considered in the construction or interpretation of any provision.
E. Gender. In this Lease, the masculine gender includes the feminine and neuter and the
singular number includes the plural whenever the context so requires.
NB1-187371.V2 19 05/24/94
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STATE OF CALIFORNIA )ss.
COUNTY OF ORANGE )
On W , before me, Irene Butler personally
appeared �'� personally
known to me (or proved to me on the basis of satisfactory evidence)
to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the
same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s) or the
entity upon behalf of which the person(s) acted, executed the
instrument.
WITNESS my hand and official seal.
(SEAL)
Notary Public in and for said State
OPTIONAL INFORMATION
NE U 'LE''t
ryV Comm. #1008878
NOTARY PUBLIC CALIF
i 4 ORANGE COUNTY
Comm. Expiros Nov. 11, 11*7 •►
TITLE OR TYPE OF DOCUMENT
DATE OF DOCUMENT 6/�1/ NUMBER OF PAGES d
SIGNERS) OTHER THAN NAMED ABOVE N
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Exhibit A
yT
EXHIBIT B
Beacon Bay Lot 54 described as follows:
Lot 54 as shown on the map filed in Book 9, Pages 42 and 43 of Record
of Surveys, in the office of the County Recorder, County of Orange, State
of California.
SUMMARY OF SALIENT FACTS AND CONCLUSIONS - continued
SUMMARY OF VALUE INDICATIONS:
Existing
(1st year)
Unencumbered
Fair Market
Contract
Effective
Lot No.
Fee Lot Value
Rental Value
Rent
Net Rent
Water Front Lots
A
$1,330,000
$48,520
$23,125.08
$31,940.00
B
$1,200,000
$43,320
$12,506.85
$22,270.00
C
$1,031,000
$37,560
$16,625.04
$22,480.00
1
$947,000
$34,200
$8,020.80
$15,030.00
2
$1,131,000
$41,640
$8,825.40
$17,950.00
3
$1,263,000
$46,920
$24,250.08
$31,560.00
4
$1,318,000
$49,120
$10,458.96
$21,260.00
5
$1,341,000
$50,120
$20,012.04
$28,840.00
6
$1,386,000
$51,680
$25,000.00
$34,260.00
7
$1,210,000
$44,800
$24,999.96
$31,870.00
8
$1,177,000
$43,480
$43,750.00
$43,480.00
9
$1,298,000
$47,840
$42,500.04
$44,350.00
10
$1,342,000
$49,600
$24,999.96
$33,540.00
11
$1,122,000
$41,280
$9,020.52
$17,020.00
�
12
$1,100,000
$40,400
$14,250.00
$22,190.00
13
$1,100,000
$40,400
$23,625.00
$29,450.00
14
$1,243,000
$45,640
$10,312.56
$19,690.00
15
$1,265,000
$46,520
$10,836.47
$20,240.00
16
$1,067,000
$39,080
$8,508.48
$16,480.00
17
$1,067,000
$39,080
$16,250.04
$21,750.00
18
$1,067,000
$39,080
$8,508.48
$16,480.00
19
$1,243,000
$45,640
$10,020.02
$19,500.00
20
$1,147,000
$42,320
$8,727.84
$17,910.00
21
$1,058,000
$38,760
$20,224.50
$26,660.00
22
$1,036,000
$37,880
$41,250.00
$37,880.00
ES 1
$1,037,000
$37,880
$28,749.96
$31,920.00
ES 2
$1,037,000
$37,880
$24,625.00
$29,220.00
Subtotals:
$31,563,000
$1,160,640
$519,983.08
$705,220.00
Exhibit C m Page 1
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SUMMARY OF SALIENT FACTS AND CONCLUSIONS - continued
Exhibit C m Page 3'
Existing
(1st year)
Unencumbered
Fair Market
Contract
Effective
Lot No.
Fee Lot Value
Rental Value
Rent
Net Rent
Interior Lots - continued
61
$588,000
$18,162
$4,436.16
$8,482.00
ES 3
$474,000
$14,225
$8,750.04
$10,325.00
ES 4
$467,000
$13,962
$3,021.96
$6,322.00
ES 5
$470,000
$14,075
$10,000.08
$11,415.00
ES 6
$468,000
$14,000
$2,982.96
$6,310.00
ES 7
$461,000
$13,737
$2,966.04
$6,057.00
ES 8
$471,000
$13,925
$3,118.08
$6,455.00
Subtotal Int.:
$23,786,000
$724,637
$254,617.16
$397,807.00
Subtotal W.F.:
$31,563,000
$1,160,640
$519,983.08
$705,220.00
Grand Totals:
$55,349,000
$1,885,277
$774,600.24
$1,103,027.00
Exhibit C m Page 3'
Distribution of Rents and Tax Advantage between Tidelands and Uplands*
Beacon Bay 6/6/94 - Page 1
Exhibit D
(lstyear)
Proportionate Proportionate
Annual Amort.
Tidelands
Effective
%
%
Rent
Rent
of PV of Tax
Tax
Lot No.
Net Rent
Tidelands
Uplands
Tidelands
Uplands
Advantage
Advantage
Waterfront Lots
A
$31,940.00
100%
0%
$31,940
$0
$0
$0
B
$22,270.00
100%
0%
$22,270
$0
$930
$930
C
$22,480.00
100%
0%
$22,480
$0
$1,410
$1,410
1
$15,030.00
100%
0%
$15,030
$0
$2,080
$2,080
2
$17,950.00
100%
0%
$17,950
$0
$2,260
$2,260
3
$31,560.00
100%
0%
$31,560
$0
$560
$560
4
$21,260.00
100%
0%
$21,260
$0
$2,610
$2,610
5
$28,840.00
100%
0%
$28,840
$0
$1,620
$1,620
6
$34,260.00
100%
0%
$34,260
$0
$0
$0
7
$31,870.00
95%
5%
$30,276
$1,594
$0
$0
8
$43,480.00
50%
50%
$21,740
$21,740
$0
$0
9
$44,350.00
5%
95%
$2,217
$42,132
$0
$0
10
$33,540.00
0%
100%
$0
$33,540
$0
$0
11
$17,020.00
0%
100%
$0
$17,020
$3,200
$0
12
$22,190.00
0%
100%
$0
$22,190
$1,130
$0
13
$29,450.00
0%
100%
$0
$29,450
$0
$0
14
v $19,690.00
0%
100%
$0
$19,690
$2,880
$0
15
$20,240.00
20%
80%
$4,048
$16,192
$2,980
$596
16
$16,480.00
95%
5%
$15,656
$824
$2,640
$2,508
17
$21,750.00
100%
0%
$21,750
$0
$2,420
$2,420
18
$16,480.00
100%
0%
$16,480
$0
$2,640
$2,640
19
$19,500.00
100%
0%
$19,500
$0
$2,880
$2,880
20
$17,910.00
100%
0%
$17,910
$0
$2,470
$2,470
21
$26,660.00
100%
0%
$26,660
$0
$0
$0
22
$37,880.00
100%
0%
$37,880
$0
$0
$0
ES 1
$31,920.00
100%
0%
$31,920
$0
$0
$0
ES 2
$29,220.00
100%
0%
$29,220
$0
$0
$0
Waterfront
Subtotal:
$705,220.00
$500,848
$204,372
$34,710
$24,984
Beacon Bay 6/6/94 - Page 1
Exhibit D
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Distribution of Rents and Tax Advantage between Tidelands and Uplands*
*Effective Net Rents consider tax advantage. Discount rate for present value of annual
advantage is 6%. Rate for amortization of advantage is 7%. Rent and advantage
Figures are from 10/8/93 appraisal. Lots 3, 7, and 21 have been adjusted for new contract rent real estate taxes.
Beacon Bay 6/6/94 - Page 3
Exhibit e
(1st year)
Proportionate
Annual Amort.
Effective
%
Lot No.
Net Rent
Tidelands
Interior Lots - continued
Uplands
61
$8,482.00
0%
ES 3
$10,325.00
100%
ES 4
$6,322.00
100%
ES 5
$11,415.00
85%
ES 6
$6,310.00
0%
ES 7
$6,057.00
0%
ES 8
$6,455.00
0%
Interior Lots
$0
$0
Subtotal:
$397,807.00
$6,310
Add Waterfront:
$705,220.00
100%
Grand Total:
$1,103,027.00
$650
% of Total:
100%0
$0
*Effective Net Rents consider tax advantage. Discount rate for present value of annual
advantage is 6%. Rate for amortization of advantage is 7%. Rent and advantage
Figures are from 10/8/93 appraisal. Lots 3, 7, and 21 have been adjusted for new contract rent real estate taxes.
Beacon Bay 6/6/94 - Page 3
Exhibit e
Proportionate
Proportionate
Annual Amort.
Tidelands
%
Rent
Rent
of PV of Tax
Tax
Uplands
Tidelands
Uplands
Advantage
Advantage
100%
$0
$8,482
$720
$0
0%
$10,325
$0
$320
$320
0%
$6,322
$0
$500
$500
15%
$9,703
$1,712
$0
$0
100%
$0
$6,310
$500
$0
100%
$0
$6,057
$650
$0
100%
$0
$6,455
$410
$0
$109,592
$288,215
$19,930
$5,251
$500,848
$204,372
$34,710
$24,984
$610,440
$492,587
$54,640
$30,235
55%
45%
100%
55%
*Effective Net Rents consider tax advantage. Discount rate for present value of annual
advantage is 6%. Rate for amortization of advantage is 7%. Rent and advantage
Figures are from 10/8/93 appraisal. Lots 3, 7, and 21 have been adjusted for new contract rent real estate taxes.
Beacon Bay 6/6/94 - Page 3
Exhibit e