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 18 of 57 Lease No. 20-107205 (c) Each permitted transferee shall assume all obligations under this Lease, including the payment of rent. No assignment, sublet, or transfer shall release, discharge, or otherwise affect the liability of Tenant. Tenant shall remain liable for the full and complete performance, satisfaction, and compliance with the terms of this Lease. (d) State’s consent under this Paragraph 9.1 does not constitute a waiver of any claims against Tenant for the violation of any term of this Lease. 9.2 Rent Payments Following Assignment. The acceptance by State of the payment of rent following an assignment or other transfer does not constitute consent to any assignment or transfer. 9.3 Terms of Subleases. (a) Tenant shall submit the terms of all subleases to State for prior approval. (b) Tenant shall incorporate the following requirements in all subleases: (1) The sublease must be consistent with and subject to all the terms and conditions of this Lease; (2) The sublease must provide that this Lease controls if the terms of the sublease conflict with the terms of this Lease; (3) The term of the sublease (including any period of time covered by a renewal option) must end before the Termination Date of the initial Term or any renewal term; (4) The sublease must terminate if this Lease terminates for any reason; (5) The sublease must include an acknowledgment that the subtenant has received a copy of this Lease; (6) The sublease must prohibit the prepayment to Tenant by the subtenant of more than one year of rent. (7) The sublease must identify the rental amount subtenant is to pay to Tenant; (8) The sublease must provide that there is no privity of contract between the subtenant and State; (9) The sublease must require removal of the subtenant’s Improvements and Personal Property upon termination of the sublease; (10) The subtenant’s permitted use must be within the scope of the Permitted Use; (11) The sublease must require the subtenant to indemnify, defend, and hold harmless State to the same extent Tenant is required to indemnify, defend, and hold harmless State under this Lease ; (12) The sublease must require the subtenant to meet the Insurance requirements under Section 10 unless State agrees in writing to exempt a subtenant from this requirement; (13) The sublease must require the subtenant to comply with the Financial Security requirements under Section 10 unless State agrees in writing to exempt a subtenant from this requirement; and DRAFT