1999 AGN DEC 07 I26 - Laserfiche WebLink

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each party shall select one arbitrator; and within five (5) days of their selection, these two arbitrators shall mutually select the third arbitrator, who shall serve also as chairman of the arbitration panel. All other facets of the arbitration shall be conducted in accordance with the rules and regulations under the American Arbitration Association. 4. Purchase of Assets (a) Conveyance of Assets Upon execution of this Agreement, Lessor shall sell, and Lessee shall purchase, those certain fixed assets, equipment, and tools related to operation of the cemetery at Hermosa ("Assets") owned by Lessor and used in connection with activities performed on the Premises and currently located on or about the Premises. The Assets are more particularly described and listed in the Bill of Sale to be executed by Lessor concurrently with execution of this Agreement. By way of example, and not by way of limitation, the Assets include vaults, vault cart and a lowering device. Said Bill of Sale is attached hereto as Exhibit "C" and incorporated herein by reference. (b) Purchase Price It is hereby agreed and acknowledged that the assumption by Lessee of any and all pre -need obligations, as part of the Services, shall serve as, and constitute, the total purchase price and consideration for the Assets. Such pre -need obligations and activities are further set forth in the Scope of Services in Exhibit "B." 5. Performance Bond Lessee shall secure and maintain throughout the Term a performance or surety bond to guarantee and assure the timely and complete performance of the Services in an amount not less than ten percent (10%) of the Revenues generated during each calendar year of the Term. On or before the beginning of the first calendar quarter of each calendar year, Lessee shall estimate the amount of Revenues that will be generated during the upcoming calendar year upon which the amount of the bond shall be determined. Said estimate shall be subject to prior approval by Lessor. Such bond shall be in the form of a commercial blanket bond naming Lessor as obligee and providing at least thirty (30) days prior notice of cancellation. Lessee shall procure such bond from underwriters approved by Lessor's Finance Director, who are licensed in California, and rated not less than "A" by A.M. Best Company, Inc. The form of the bond and the surety are subject to approval of Lessor's City Attorney and Lessor's Risk Manager. 6. Permitted Use of the Premises (a) Use of the Premises The Premises shall be used for performance of the Services as set forth in this Agreement and for no other use or uses without the express written consent of Lessor. Lessee shall not commit or permit the commission of any acts on the Premises nor use or permit the use of the Premises in any way that: (i) violates or conflicts with any law, statute, ordinance, or governmental rule or regulation, whether now in force or hereinafter enacted, governing the Premises or (ii) constitutes the commission of waste on the Premises or the commission or maintenance of a nuisance as defined by the laws of the State of California. -4- RVPUB\JFF\531124