2025/08/13 Council Agenda Packet

THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Lease (Rev. 7/20/2022) Page 17 of 57 Lease No. 20-107205 Cleanup is not a release from or waiver of any obligation for Hazardous Substances under this Lease. 8.10 Sampling by State, Reimbursement, and Split Samples. (a) State may enter the Property and conduct sampling, tests, audits, surveys, or investigations (“Tests”) of the Property at any time to determine the existence, scope, or effects of Hazardous Substances. (b) If such Tests, along with any other information, demonstrate a breach of Tenant’s obligations regarding Hazardous Substances under this Lease, Tenant shall promptly reimburse State for all costs associated with such Tests, provided State gave Tenant thirty (30) days’ advance notice in nonemergencies and reasonably practical notice in emergencies. (c) In nonemergencies, Tenant is entitled to obtain split samples of Test samples, provided Tenant gives State written notice requesting split samples at least ten (10) days before State conducts Tests. Upon demand, Tenant shall promptly reimburse State for additional cost, if any, of split samples. (d) If either Party conducts Tests on the Property, the conducting Party shall provide the other Party with validated final data and quality assurance/quality control/chain of custody information about the Tests within sixty (60) days of a written request by the other Party, unless Tests are part of a submittal under Paragraph 8.6(c) in which case Tenant shall submit data and information to State without written request by State. Neither party is obligated to provide any analytical summaries or the work product of experts. SECTION 9 ASSIGNMENT AND SUBLETTING 9.1 State Consent Required. Tenant shall not sell, convey, mortgage, assign, pledge, sublease, or otherwise transfer or encumber all or any part of Tenant’s interest in this Lease or the Property without State’s prior written consent, which shall be at State’s sole discretion. (a) In determining whether to consent, State may consider, among other items, the proposed transferee’s financial condition, business reputation, and experience, the nature of the proposed transferee’s business, the then-current value of the Property, and such other factors as may reasonably bear upon the suitability of the transferee as a tenant of the Property. State may refuse its consent to any conveyance, transfer, or encumbrance if it will result in a subdivision of the leasehold. Tenant shall submit information regarding any proposed transferee to State at least thirty (30) days prior to the date of the proposed transfer. (b) State reserves the right to condition its consent upon: (1) Changes in the terms and conditions of this Lease, including, but not limited to, the Annual Rent; and/or (2) The agreement of Tenant or transferee to conduct Tests for Hazardous Substances on the Property or on other property owned or occupied by Tenant or the transferee. DRAFT