Resolution No. 83401
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RESOLUTION NO. 8340
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND RATIFYING THE EXECUTION OF A
LEASE AGREEMENT BY AND BETWEEN THE CITY OF VERNON
AND STANLEY KIM AND JENNIFER KIM FOR THE MALBURG
GENERATING STATION PROJECT
WHEREAS, the City of Vernon ("City") is constructing a 134
MW Combined Cycle Power Plant officially named the Malburg Generating
Station (the "Malburg Project") for the purpose of installing
additional generating capacity that will yield an efficient, cost-
effective, and reliable source of electric generation to the City's
inhabitants; and
WHEREAS, the City needs to utilize property near the Malburg
Project area for construction -related uses, including parking and
assembly of equipment; and
WHEREAS, Stanley Kim and Jennifer Kim (the "Kims") own
property in Vernon that is commonly known as 2757 Leonis Boulevard
(the "Property"); and
WHEREAS, the Kims are willing to enter into a lease
agreement with the City for use of the Property during construction of
the Malburg Project; and
WHEREAS, an agreement has been negotiated with the Kims for
a period of twelve (12) months, commencing January 1, 2004, with a
payment of Ten Thousand Six Hundred Dollars ($10,600) for security
deposit and rent for the period January 1, 2004 through January 31,
2004, and thereafter the sum of Five Thousand Three Hundred Dollars
($5,300.00) per month payable on the first day of each month; and
WHEREAS, in order to meet the urgent need for the use of the
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Property for construction -related activities, the City Administrator
executed a Lease Agreement with the Kims dated December 23, 2003 (the
"Lease Agreement") and authorized payment of Ten Thousand Six Hundred
Dollars ($10,600) in accordance with the terms thereof, subject to
ratification by the City Council; and
WHEREAS, on January 6, 2004, the Finance Committee
considered the recommendation of Bruce V. Malkenhorst, the Director of
Finance, dated December 29, 2003, that the execution of the Lease
Agreement with the Kims be ratified; and
WHEREAS, the City Council desires to approve and ratify the
Lease Agreement, as executed by the City Administrator, and the
payment of fees in accordance therewith for the rental of the
Property; and
WHEREAS, the City Council of the City of Vernon has
determined that, pursuant to the provisions of subsection (a) of
Section 2.27 of the Vernon City Code, it is in the public interest and
necessity to ratify entering into the Lease Agreement with the Kims.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
(finds and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the City of Vernon hereby
ratifies the execution of the Lease Agreement with the Kims, a copy of
which is attached hereto as Exhibit "A" and made a part hereof.
SECTION 3: The City Council of the City of Vernon hereby
approves and ratifies the payment of fees in accordance with the terms
of the Lease Agreement.
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SECTION 4: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 7th day of January, 2004.
ATTEST:
BRUCE V. MALKENHORST, City Clerk
LEONIS C. MALBkRG, Mayo
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution No.
8340, was duly adopted by the City Council of the City of Vernon at a
regular meeting of the City Council duly held on Wednesday, January 7,
2004, and thereafter was duly signed by the Mayor of the City of
Vernon.
(SEAL)
BRUCE V. MALKENHORST, City Clerk
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EXHIBIT
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LEASE AGREEMENT
Execution Copy
THIS LEASE AGREEMENT is made, entered into and executed in
duplicate originals, either copy of which may be considered and used -
as the original hereof for all purposes, as of this ,20 day of
December, 2003, in the City of Vernon, County of Los Angeles,
California
BY AND BETWEEN
AND
RECITALS
THE CITY OF VERNON
(hereinafter referred to as
"Lessee")
4305 Santa Fe Avenue
Vernon, CA 90058-0805
STANLEY KIM and JENNIFER KIM
(hereinafter referred to as
"Lessor")
4427 Oakwood Ave
La Canada, CA 91011
WHEREAS, Lessor owns that certain real property and other
improvements located thereon situated in the City of Vernon, County of
Los Angeles, State of California, commonly known as 2757 Leonis
Boulevard (the "Premises") as shown on Exhibit "A", which is attached
hereto and made a part hereof by reference, containing approximately
36,300 square feet (0.83 acres) of industrial land (the "Leased
Area"); and
WHEREAS, Lessor desires to lease said Premises to Lessee and
Lessee desires to lease the Leased Area from Lessor for use by its
employees, its contractor, subcontractors and their employees in
connection with the construction of the Malburg Generating Station
Project (the "Project"); and
I NOW, THEREFORE, IN CONSIDERATION OF THE COVENANTS HEREIN
2 CONTAINED AND THE MUTUAL BENEFIT TO EACH PARTY, IT IS HEREBY AGREED AS
3 HEREIN SET FORTH:
4 SECTION 1. Leased Area. Lessor hereby leases to Lessee
5 the Leased Area depicted in Exhibit "A" for the purpose of parking,
6 storage of material and equipment, assembly of equipment and related
7 construction services in connection with Lessee's construction of the
8 Project (the "Permitted Use"). Ingress and egress access shall be
9 through the sliding gate on the Premises which faces Soto Street.
10 Lessee may use the Leonis Boulevard gate with prior approval of
11 Lessor. The term of this lease shall commence on January 1, 2004, for
12 a period of twelve (12) months, with a right by Lessee to extend the
13 lease on a month -to -month basis, until terminated pursuant to Section
14 6.
15 SECTION 2. Lease Fee. Lessee shall pay to Lessor at the
16 time this lease becomes effective, the sum of Ten Thousand Six Hundred
17 Dollars ($10,600.00). Such initial payment includes a security
18 deposit of Five Thousand Three Hundred Dollars ($5,300.00), and a
19 payment of Five Thousand Three Hundred Dollars ($5,300.00) for the
20 period January 1, 2004 through January 31, 2004. Thereafter, Lessee
21 shall pay Lessor a lease fee for its use of the Leased Area in the
22 amount of Five Thousand Three Hundred Dollars ($5,300.00) per month,
23 payable without notice or demand on or prior to the first day of each
24 month. Any partial month hereunder shall be prorated. Upon
25 termination, pursuant to Section 6, any prorated amount that is due
26 and payable to Lessee shall be refunded by Lessor. Additionally, the
27 security deposit paid by Lessee shall be refunded to Lessee, less any
28 amounts that are due to Lessor, including the cost of any clean-up or
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I SECTION 3. Maintenance and Alteration of Property. Lessee
2 shall be required to put in a temporary chain -link steel fence on the
3 west side of the Leased Area, as depicted on Exhibit "A." Lessee
4 shall be responsible for all materials and equipment placed upon said
5 property, shall not affix any permanent equipment or buildings to said
6 property, shall not cause or permit any liens of any kind or nature to
7 be levied against said premises for any work done or materials
8 furnished thereon and shall perform all reasonable maintenance.
9 SECTION 4. Indemnification. Lessee agrees and
10 acknowledges that its use of the Leased Area is at its sole risk and
11 Lessee hereby waives, releases and absolves Lessor, its officers,
12 agents, employees, Lessees and invitees (the "Lessor Parties") from
13 any and all costs, losses, damages, expenses, and liability from any
14 cause whatsoever, that Lessee may suffer its
y to personal property
15 located anywhere in the Leased Area or that it or its agents,
16 employees, principals, and invitees may suffer as a direct or indirect
17 consequence of Lessee's use of the Leased Area or access areas to the
18 Leased Area or for any other reason arising from or related to this
19 Agreement. Lessee shall indemnify, defend and hold harmless Lessor,
20 its officers, agents and employees against and from any and all claims
21 arising from Lessee's use of the Leased Area from any activity, work
22 or other thing done, permitted or suffered by the Lessee in or about
23 the Leased Area and shall further indemnify and hold harmless Lessor
24 against and from any and all claims arising from any act or negligence
25 of the Lessee or any officer, agent, employee, guest or invitee of the
26 Lessee, and from and against all costs, attorney's fees, expenses and
27 liabilities incurred by reason of any such claim or any action or
28 proceedings brought against Lessor by reason of any such claim.
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SECTION 5. Insurance. Lessee shall maintain, keep or
cause to be kept in force, commercial general liability insurance in
the minimum amount, including appropriate self -insured amounts, of one
million dollars, covering Lessee against claims of bodily injury,
personal injury and property damage arising out of Lessee's operations
or use of the Leased Area.
SRrTTC)M ti
(a) This lease may be terminated by Lessee after providing
Lessor with fifteen (15) days advance notice and complying with all
terms regarding cleanup and status of the property. Such notice may
be given by delivering the same personally or by mailing the same to
the address hereinabove given or to such address as each may in
writing from time to time direct, and the giving of such notice by
mail shall be complete at the time of mailing.
(b) Upon termination of this lease, Lessee shall leave the
premises clear of all debris and shall return the property in a
similar condition as it was in prior to the effective date of this
lease.
SECTION 7. Use of Property. Lessee shall not use the
premises or permit anything to be done in or about the Leased Area
which will in any way conflict with any law, statute, ordinance or
governmental rule or regulation now in force or which may hereafter be
enacted or promulgated. Lessee shall promptly comply with all laws,
statutes, ordinances and governmental rules, regulations or
requirements.
Lessee acknowledges that Lessor shall have no responsibility
for management of the Leased Area. Lessee, at Lessee's sole cost and
expense, will maintain and take good care of the Leased Area including
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any fixtures and appurtenances thereto, and make any and all repairs
thereto as and when needed to preserve them in good working order and
condition. Lessee acknowledges and agrees that Lessor will not be
obligated to make any repairs, alterations or improvements to the
Leased Area or to otherwise prepare the Leased Area for Lessee's use.
All damage or injury to the Leased Area or to any other part of the
Leased Area or premises, or to its fixtures, equipment and
appurtenances caused by or resulting from misuse or negligent conduct
or omission of Lessee, Lessee's agents, employees, or invitees will be
repaired, at Lessee's sole cost and expense, by Lessee to Lessor's
reasonable satisfaction. Lessee also will repair all damage to the
premises and the Leased Area caused by the moving of Lessee's
property.
SECTION 8. Notices. Any notices, demands or other
communications required or desired to be given or made under the terms
of this Lease Agreement shall be in writing and personally served, or
served by United States Mail with postage thereon fully prepaid and
addressed as follows:
LESSOR
STANLEY KIM
4427 Oakwood Ave.
La Canada, CA 91011
LESSEE
CITY OF VERNON
City Administrator
4305 Santa Fe Avenue
Vernon, CA 90058-0805
Any notice, demand or other communication shall be deemed
given or made on the day personally served, or, if service is by mail,
three (3) days following the date such notice was deposited in the
United States mail with postage thereon fully prepaid.
SECTION 9. Miscellaneous.
(a) Time is of the essence of this Agreement and each of
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I its provisions.
2 (b) If default shall be made in any of the covenants or
3 agreements of Lessee contained in this Agreement, Lessor may at its
4 option, terminate this lease by serving thirty-(30) days' notice in-
5 writing upon Lessee.
6 (c) It is understood and agreed that there are no oral
7 agreements between the parties hereto affecting this Agreement and
8 this Agreement supersedes and cancels any and all previous
9 negotiations, arrangements, brochures, agreements and understandings,
10 if any, between the parties hereto and none shall be used to interpret
11 or construe this Agreement. This Agreement and the lease granted
12 hereby may only be amended in a writingsigned b
g y the parties duly
13 authorized representatives, which such writing shall specifically
14 reference this Agreement.
15 (d) Upon the expiration of this Agreement, Lessee shall
16 relinquish possession of the Leased Area and have removed all of its
17 property from the Leased Area.
18 (e) If any term, provision or condition contained in this
19 Agreement, shall, to any extent, be invalid or unenforceable, the
20 remainder of this Agreement shall not be affected thereby
, and each
21 and every other term, provision and condition of this Agreement shall
22 be valid and enforceable to the fullest extent possibl
y y permitted by
23 law.
24 (f) Lessee and Lessor represent and warrant that neither
25 has had any dealings with any realtors, brokers or agents in
26 connection with the negotiation of this Agreement, with the exception
27 of McKinney-Travers•Oncor International on behalf of Lessee. Lessee
28 agrees to pay any fees earned by McKinney-Travers*Oncor International
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or any other realtor, broker or agent that it has used in connection
with this transaction. Lessor shall not be responsible for paying any
realtor, broker or agent fees unless Lessor has actually had dealings
with such a realtor, broker or agent that has not been disclosed
herein.
SECTION 10. Waivers. Failure by either party to exercise
any of the stipulated rights arising under this lease shall not be
considered a waiver of any right or condition hereof.
SECTION 11. Entire Agreement. This lease contains the
entire agreement of the parties and cannot be amended or modified
except by a written agreement.
SECTION 12. Recordation. This lease shall not be recorded.
SECTION 13. Governing Law. This lease shall be construed
and interpreted in accordance with the laws of the State of
California.
IN WITNESS WHEREOF, the parties have caused this Agreement
to be executed by duly authorized individuals effective as of the date
first written above.
APPROVED AS TO MERIC T. FRESCH, City Attorney
c —r 7
CI Y OF VERNON
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By:
Xi$ XG4x44AUA X "�tX
Bruce V. Malkenhorst, City
Administrator/City Clerk
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SUPPORTING
DOCUMENTS
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LEASE AGREEMENT
Execution Copy
THIS LEASE AGREEMENT is made, entered into and executed in
duplicate originals, either copy of which may be considered and used
as the original hereof for all purposes, as of this ;?zr14 day of
December, 2003, in the City of Vernon, County of Los Angeles,
California
BY AND BETWEEN
RECITALS
THE CITY OF VERNON
(hereinafter referred to as
"Lessee")
4305 Santa Fe Avenue
Vernon, CA 90058-0805
STANLEY KIM and JENNIFER KIM
(hereinafter referred to as
"Lessor")
4427 Oakwood Ave
La Canada, CA 91011
WHEREAS, Lessor owns that certain real property and other
improvements located thereon situated in the City of Vernon, County of
Los Angeles, State of California, commonly known as 2757 Leonis
Boulevard (the "Premises") as shown on Exhibit "A", which is attached
hereto and made a part hereof by reference, containing approximately
36,300 square feet (0.83 acres), of industrial land (the "Leased
Area"); and
WHEREAS, Lessor desires to lease said Premises to Lessee and
Lessee desires to lease the Leased Area from Lessor for use by its
employees, its contractor, subcontractors and their employees in
connection with the construction of the Malburg Generating Station
Project (the "Project"); and
I NOW, THEREFORE, IN CONSIDERATION OF THE COVENANTS HEREIN
2 CONTAINED AND THE MUTUAL BENEFIT TO EACH PARTY, IT IS HEREBY AGREED AS
3 HEREIN SET FORTH:
4 SECTION 1. Leased Area. Lessor hereby leases to Lessee
5 the Leased Area depicted in Exhibit "A" for the purpose of parking,
6 storage of material and equipment, assembly of equipment and related
7 construction services in connection with Lessee's construction of the
8 Project (the "Permitted Use"). Ingress and egress access shall be
9 through the sliding gate on the Premises which faces Soto Street.
10 Lessee may use the Leonis Boulevard gate with prior approval of
11 Lessor. The term of this lease shall commence on January 1, 2004, for
12 a period of twelve (12) months, with a right by Lessee to extend the
13 lease on a month -to -month basis, until terminated pursuant to Section
14 6.
15 SECTION 2. Lease Fee. Lessee shall pay to Lessor at the
16 time this lease becomes effective, the sum of Ten Thousand Six Hundred
17 Dollars ($10,600.00). Such initial payment includes a security
18 deposit of Five Thousand Three Hundred Dollars ($5,300.00), and a
19 payment of Five Thousand Three Hundred Dollars ($5,300.00) for the
20 period January 1, 2004 through January 31, 2004. Thereafter, Lessee
21 shall pay Lessor a lease fee for its use of the Leased Area in the
22 amount of Five Thousand Three Hundred Dollars ($5,300.00) per month,
23 payable without notice or demand on or prior to the first day of each
24 month. Any partial month hereunder shall be prorated. Upon
25 termination, pursuant to Section 6, any prorated amount that is due
26 and payable to Lessee shall be refunded by Lessor. Additionally, the
27 security deposit paid by Lessee shall be refunded to Lessee, less any
28 amounts that are due to Lessor, including the cost of any clean-up or
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I SECTION 3. Maintenance and Alteration of Property. Lessee
2 shall be required to put in a temporary chain -link steel fence on the
3 west side of the Leased Area, as depicted on Exhibit "A." Lessee
4 shall be responsible for all materials and equipment placed upon said
5 property, shall not affix any permanent equipment or buildings to said
6 property, shall not cause or permit any liens of any kind or nature to
7 be levied against said premises for any work done or materials
8 furnished thereon and shall perform all reasonable maintenance.
9 SECTION 4. Indemnification. Lessee agrees and
10 acknowledges that its use of the Leased Area is at its sole risk and
11 Lessee hereby waives, releases and absolves Lessor, its officers,
12 agents, employees, Lessees and invitees (the "Lessor Parties") from
13 any and all costs, losses, damages, expenses, and liability from any
14 cause whatsoever, that Lessee may suffer to its personal property
15 located anywhere in the Leased Area or that it or its agents,
16 employees, principals, and invitees may suffer as a direct or indirect
17 consequence of Lessee's use of the Leased Area or access areas to the
18 Leased'Area or for any other reason arising from or related to this
19 Agreement. Lessee shall indemnify, defend and hold harmless Lessor,
20 its officers, agents and employees against and from any and all claims
21 arising from Lessee's use of the Leased Area from any activity, work
22 or other thing done, permitted or suffered by the Lessee in or about
23 the Leased Area and shall further indemnify and hold harmless Lessor
24 against and from any and all claims arising from any act or negligence
25 of the Lessee or any officer, agent, employee, guest or invitee of the
26 Lessee, and from and against all costs, attorney's fees, expenses and
27 liabilities incurred by reason of any such claim or any action or
28 proceedings brought against Lessor by reason of any such claim.
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I SECTION 5. Insurance. Lessee shall maintain, keep or
2 cause to be kept in force, commercial general liability insurance in
3 the minimum amount, including appropriate self -insured amounts, of one
4 million dollars, covering Lessee against claims of bodily injury,
5 personal injury and property damage arising out of Lessee's operations
6 or use of the Leased Area.
7 SECTION 6. Termination.
8 (a) This lease may be terminated by Lessee after providing
9 Lessor with fifteen (15) days advance notice and complying with all
10 terms regarding cleanup and status of the property. Such notice may
11 be given by delivering the same personally or by mailing the same to
12 the address hereinabove given or to such address as each may in
13 writing from time to time direct, and the giving of such notice by
14 mail shall be complete at the time of mailing.
15 (b) Upon termination of this lease, Lessee shall leave the
16 premises clear of all debris and shall return the property in a
17 similar condition as it was in prior to the effective date of this
18 lease .
19 SECTION 7. Use of Property. Lessee shall not use the
20 premises or permit anything to be done in or about the Leased Area
21 which will in any way conflict with any law, statute, ordinance or
22 governmental rule or regulation now in force or which may hereafter be
23 enacted or promulgated. Lessee shall promptly comply with all laws,
24 statutes, ordinances and governmental rules, regulations or
25 requirements.
26 Lessee acknowledges that Lessor shall have no responsibility
27 for management of the Leased Area. Lessee, at Lessee's sole cost and
28 expense, will maintain and take good care of the Leased Area including
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I any fixtures and appurtenances thereto, and make any and all repairs
2 thereto as and when needed to preserve them in good working order and
3 condition. Lessee acknowledges and agrees that Lessor will not be
4 obligated to make any repairs, alterations or improvements to the
5 Leased Area or to otherwise prepare the Leased Area for Lessee's use.
6 All damage or injury to the Leased Area or to any other part of the
7 Leased Area or premises, or to its fixtures, equipment and
8 appurtenances caused by or resulting from misuse or negligent conduct
9 or omission of Lessee, Lessee's agents, employees, or invitees will be
10 repaired, at Lessee's sole cost and expense, by Lessee to Lessor's
11 reasonable satisfaction. Lessee also will repair all damage to the
12 premises and the Leased Area caused by the moving of Lessee's
13 property.
14 SECTION 8. Notices. Any notices, demands or other
15 communications required or desired to be given or made under the terms
16 of this Lease Agreement shall be in writing and personally served, or
17 served by United States Mail with postage thereon fully prepaid and
18 addres'sed as follows:
19 LESSOR LESSEE
20 STANLEY KIM CITY OF VERNON
21 4427 Oakwood Ave. City Administrator
La Canada, CA 91011 4305 Santa Fe Avenue
22 Vernon, CA 90058-0805
23 Any notice, demand or other communication shall be deemed
24 given or made on the day personally served, or, if service is by mail,
25 three (3) days following the date such notice was deposited in the
26 United States mail with postage thereon fully prepaid.
27 SECTION 9. Miscellaneous.
28 (a) Time is of the essence of this Agreement and each of
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I its provisions.
2 (b) If default shall be made in any of the covenants or
3 agreements of Lessee contained in this Agreement, Lessor may at its
4 option, terminate this lease by serving thirty-(30) days' notice in
5 writing upon Lessee.
6 (c) It is understood and agreed that there are no oral
7 agreements between the parties hereto affecting this Agreement and
8 this Agreement supersedes and cancels any and all previous
9 negotiations, arrangements, brochures, agreements and understandings,
10 if any, between the parties hereto and none shall be used to interpret
11 or construe this Agreement. This Agreement and the lease granted
12 hereby may only be amended in a writing signed by the parties duly
13 authorized representatives, which such writing shall specifically
14 reference this Agreement.
15 (d) Upon the expiration of this Agreement, Lessee shall
16 relinquish possession of the Leased Area and have removed all of its
17 property from the Leased Area.
18 (e) If any term, provision or condition contained in this
19 Agreement, shall, to any extent; be invalid or unenforceable, the
20 remainder of this Agreement shall not be affected thereby, and each
21 and every other term, provision and condition of this Agreement shall
22 be valid and enforceable to the fullest extent possibly permitted by
23 law..
24 (f) Lessee and Lessor represent and warrant that neither
25 has had any dealings with any realtors, brokers or agents in
26 connection with the negotiation of this Agreement, with the exception
27 of McKinney-Travers•Oncor International on behalf of Lessee. Lessee
28 agrees to pay any fees earned by McKinney-Travers•Oncor International
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or any other realtor, broker or agent that it has used in connection
with this transaction. Lessor shall not be responsible for paying any
realtor, broker or agent fees unless Lessor has actually had dealings
with such a realtor, broker or agent that has not been disclosed
herein.
SECTION 10. Waivers. Failure by either party to exercise
any of the stipulated rights arising under this lease shall not be
considered a waiver of any right or condition hereof.
SECTION 11. Entire Agreement. This lease contains the
entire agreement of the parties and cannot be amended or modified
except by a written agreement.
SECTION 12. Recordation. This lease shall not be recorded.
SECTION 13. Governing Law. This lease shall be construed
and interpreted in accordance with the laws of the State of
California.
IN WITNESS WHEREOF, the parties have caused this Agreement
to be executed by duly authorized individuals effective as of the date
first written above.
APPROVED AS TO FO
C
ERIC T. FRESCH, City Attorney
- 7 -
ITY OF VERNON
By:
Bruce V. Malkenhorst, City
Administrator/City Clerk
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