HomeMy WebLinkAboutL-084 Kerman Ag Lease - executed.pdf L-084 Kerman Ag
Boyd/4010
1 LEASE AGREEMENT
2 THIS LEASE AGREEMENT ("LEASE") is made and entered into this 01-' day of
3 U CD 2022, by and between KENCO INVESTMENTS, INC., a
4 California corporation„ 275 S. Madera, Suite 100, Kerman, CA 93630 ("LESSOR"), and the
5 COUNTY OF FRESNO, a political subdivision of the State of California, 333 W. Pontiac Way,
6 Clovis, CA 93612 ("LESSEE"). LESSOR and LESSEE shall also be referred to herein singularly
7 as a "Party" and collectively as "Parties".
8 1. LEASED PREMISES-LESSOR hereby leases to LESSEE approximately 663.45
9 square feet at the location commonly known as 275 S. Madera Ave., Suite 102, Kerman, CA
10 93630, including common area parking and common area within the office complex (the
11 "Premises").
12 2. TERM -The primary term of this LEASE shall be for three (3)years, commencing
13 July 1, 2022 and ending on June 30, 2025 ("Primary Term"). In no event shall the entire term of
14 this LEASE extend beyond June 30, 2025. In the case of LESSEE, the County Administrative
15 Officer or the Director of Internal Services, or one of their designees, shall have the power to
16 provide such notice of non-renewal.
17 3. RENT - LESSEE agrees to pay rent to LESSOR for the Premises beginning on
18 July 1, 2022. The rent shall be paid in advance on or about the first of each month according to
19 the following schedule:
20
21 Rent Year Rent Per Month
2022 $ 1,194
22 2023 $ 1,194
2024 $ 1,194
23
24 The total rent paid under this LEASE shall not exceed forty-two thousand, nine hundred
25 eighty-four dollars ($42,984).
26
27 4. UTILITIES— LESSOR shall pay those metered costs associated with LESSEE'S
28 use of natural gas and electricity, water, garbage, and sewer services. LESSEE shall pay all
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1 costs associated with its use of telephone services.
2 5. USE - LESSEE shall use the Premises as office space for the County of Fresno.
3 LESSEE agrees to comply with all applicable laws, ordinances and regulations in connection
4 with such use.
5 LESSOR covenants that: (i) to its actual knowledge, the Premises are suitable for the
6 intended use and are in compliance with all applicable state, federal and local laws, ordinances
7 and regulations, including, but not limited to, safety regulations, health and building codes; and
8 (ii) the Premises shall remain in such compliance throughout the term of this LEASE.
9 6. MAINTENANCE AND REPAIRS — LESSOR shall be responsible for all exterior
10 and interior maintenance, including repair of air conditioning, heating units, plumbing systems,
11 electrical systems, interior light fixture ballasts and lamp replacement, fire sprinkler system,
12 roof, painting, flooring, landscape, parking, parking lot lighting, and other common area
13 maintenance at the Premises. LESSOR is also responsible for the structural condition of the
14 building, and agrees that the building will always be maintained in a condition acceptable for
15 the LESSEE'S intended use of the Premises. LESSOR's maintenance responsibilities shall
16 include carpet replacement and exterior and interior painting, as needed, due to normal wear
17 and tear.
18 In the event building systems such as air conditioning and heating units' malfunction,
19 restroom fixtures are not draining properly, or water intrusion, leaks or other events that
20 immediately impact the occupancy of the Premises by LESSEE occur, LESSOR shall respond
21 within twenty-four(24) hours after contact by LESSEE to initiate repairs and replace equipment
22 to restore the systems to full working order. Structural issues, including but not limited to
23 damaged doors, walls, roof, and windows shall be a priority, and shall be addressed within the
24 same day such are reported. LESSOR covenants that the Premises shall be maintained in
25 substantially the same condition as that existing at the commencement of this LEASE.
26 LESSOR shall replace, at the expense of LESSEE, any and all plate and other glass
27 damaged or broken in the windows or doors of the Premises by LESSEE'S employees or clients.
28 LESSEE shall pay for such repairs within forty-five (45) days of receiving an itemized bill from
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1 LESSOR. LESSOR shall replace, at the expense of LESSOR, any and all plate and other glass
2 damaged or broken in the windows or doors of the Premises by parties who are not LESSEE's
3 employees or clients, including unknown parties.
4 7. JANITORIAL SERVICES AND COST— LESSOR, at LESSOR's sole cost and
5 expense, shall procure and provide janitorial services and supplies at the Premises ("Janitorial
6 Services"). Such Janitorial Services shall be provided two (2) days per week.
7 LESSOR and LESSEE may agree to select a different janitorial service to correct
8 deterioration in the quality of the janitorial service, or for any other reason mutually agreed
9 upon by the parties.
10 8. COMPLIANCE WITH ALL LAWS —As to the Premises, LESSOR
11 acknowledges public funds are used for payments made by LESSEE under this LEASE and
12 for"public works" projects. Accordingly, LESSOR shall comply with, and shall ensure
13 compliance by all contractors and subcontractors with, all applicable laws and regulations,
14 including the payment of prevailing wages pursuant to Section 1770 et. seq. of the Labor
15 Code.
16 9. BREACH OF OBLIGATION TO MAINTAIN - In the event LESSOR breaches its
17 obligation to maintain the Premises as herein provided, LESSEE shall give written notice to
18 LESSOR within fifteen (15) days of the discovery of such breach. LESSOR shall then have
19 thirty (30) days from the date of notice to cure its breach, provided, however, that if the item of
20 maintenance is of such a nature that it requires more than thirty (30) days to complete, then
21 LESSOR shall have such additional time as is necessary to complete such maintenance as long
22 as LESSOR commences work on such maintenance within said thirty (30) day period and
23 diligently prosecutes such maintenance to completion. Subject to the foregoing, if the period for
24 cure expires and if, in LESSEE'S sole determination, LESSOR has failed to cure, and then
25 LESSEE may, at its election:
26 A. Terminate this LEASE as hereinafter provided. In such case, LESSEE shall
27 have the right to demand LESSOR refund any monies which were paid to
28 LESSOR pursuant to the LEASE but which were not earned by LESSOR by
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1 consequence of its breach. Upon receipt of such demand, LESSOR shall
2 promptly refund all such monies; or
3 B. Cure LESSOR'S breach and deduct the cost of such cure, together with
4 reasonable administrative costs, from LESSEE'S future rent obligation.
5 LESSEE'S decision to cure LESSOR'S breach shall not constitute a waiver of
6 any rights or remedies that LESSEE may have arising from this LEASE or by
7 operation of law.
8 If LESSOR's failure to maintain the Premises is of an urgent nature, and impairs
9 LESSEE's ability to conduct its business operations, or occupy the Premises, then LESSOR
10 shall have five (5) business days from notification of the breach to repair the Premises so that
11 LESSEE may resume operations. If LESSOR fails to satisfactorily perform such repairs, then
12 LESSEE may cure the default and deduct the cost from the next month's rent.
13 10. DESTRUCTION OR DAMAGE FROM CASUALTY - If the Premises are
14 damaged or destroyed as a result of fire, earthquake, act of God, or any other identifiable event
15 of a sudden, unexpected, or unusual nature (hereinafter the "Casualty"), then LESSOR shall
16 either promptly and diligently repair the damage at its own cost, or terminate this LEASE as
17 hereinafter provided.
18 A. LESSOR'S Election to Repair: If LESSOR elects to repair the Casualty
19 damage to the Premises, then it shall within thirty (30) days after the date of
20 Casualty provide written notice (hereinafter "Notice of Repair") to LESSEE
21 indicating the anticipated time required to repair. LESSOR shall bear the cost
22 of all repairs to the Premises, including the cost to repair any alterations or
23 fixtures installed or attached thereto by LESSEE. Such repairs shall restore
24 the Premises to substantially the same condition as that existing at the
25 commencement of this LEASE; such repairs shall also be made in compliance
26 with all applicable state and local building codes. LESSOR shall not be liable
27 to LESSEE for compensation for any loss of business, or any inconvenience or
28 annoyance arising from repair of the Premises as a result of the Casualty
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1 except for rent reduction as hereinafter provided. LESSEE shall be responsible
2 at its sole cost and expense for the replacement of its personal property.
3 B. LESSOR'S Election to Terminate Due to Casualty: LESSOR may only elect to
4 terminate the LEASE due to Casualty if: the Premises have been destroyed or
5 substantially destroyed by said Casualty; and the estimated time to repair the
6 Premises exceeds ninety (90) days from the date of the Casualty. LESSOR
7 shall provide LESSEE with written notice of its election to terminate within thirty
8 (30) days after the date of Casualty.
9 C. Rent Reduction Due to Casualty: In the event of Casualty, LESSEE'S
10 obligation to pay the rent shall be reduced beginning on the date of the
11 Casualty. Such reduction shall be proportional to the damage caused to the
12 Premises by the Casualty as determined by LESSEE. If LESSOR elects to
13 repair the Premises pursuant to the terms of this LEASE, then the rent reduction
14 shall continue until the date of substantial completion of repair.
15 D. LESSEE'S Election to Terminate Due to Casualty: If LESSEE does not receive
16 a Notice of Repair from LESSOR within thirty (30) days after a Casualty, or if
17 the anticipated period of repair contained in the Notice of Repair exceeds ninety
18 (90) days, then LESSEE may elect to terminate this LEASE as hereinafter
19 provided. In such case, LESSEE shall have the right to demand that LESSOR
20 refund any monies which were paid to LESSOR pursuant to the LEASE but
21 which were not earned by LESSOR by consequence of the Casualty. Upon
22 receipt of such demand, LESSOR shall promptly refund all such monies.
23 11. TERMINATION - If, pursuant to the terms provided hereinabove, either LESSOR
24 or LESSEE has an election to terminate the LEASE and so elects, then notice of such
25 termination shall be made in writing to the non-terminating party. Such notice shall specify a
26 date of termination not less than ninety (90) days from the date of said notice.
27 In the case of LESSEE, the County Administrative Officer or the Director of Internal
28 Services, or one of their designees shall have the power to provide such notice to terminate the
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1 LEASE.
2 12. NON-FUNDING TERMINATION - This LEASE is contingent on the allocation of
3 funds by a governmental agency. Should funds not be allocated, this LEASE may be
4 terminated by the Board of Supervisors at any time by giving at least thirty (30) days prior
5 written notice to LESSOR.
6 13. NO ACCELERATION OF FUTURE RENT OR OTHER PAYMENTS/AMOUNTS —
7 Notwithstanding anything to the contrary contained herein this LEASE or any right or remedy
8 of which LESSOR may otherwise avail itself pursuant to applicable law, any right of LESSOR
9 to recover any Rent as provided in this LEASE shall be without acceleration of any future Rent
10 before it is due and payable hereunder. LESSOR hereby expressly waives its right to
11 accelerate rent in the event of a termination of this LEASE, pursuant to California Civil Code
12 section 1951.2.
13 14. HOLD HARMLESS - LESSOR agrees to indemnify, save, hold harmless, and at
14 LESSEE'S request, defend the LESSEE, its officers, agents, and employees from any and all
15 costs and expenses (including attorney's fees and costs), damages, liabilities, claims, and
16 losses occurring or resulting to LESSEE in connection with the performance, or failure to
17 perform, by LESSOR, its officers, agents, or employees under this LEASE, and from any and
18 all costs and expenses (including attorney's fees and costs), damages, liabilities, claims, and
19 losses occurring or resulting to any person, firm, or corporation who may be injured or damaged
20 by the performance, or failure to perform of LESSOR, its officers, agents, or employees under
21 the LEASE. This LEASE is made upon the expressed condition that the LESSEE is to be free
22 of all liability, damages or injury arising from structural failures of the leased Premises including
23 external walls, doors, roof and floor, unless caused by the negligence or willful misconduct of
24 LESSEE, its officers, agents or employees.
25 The parties acknowledge that as between LESSOR and LESSEE, each is responsible
26 for the negligence of its own employees and invitees.
27 15. INSURANCE -
28 A. LESSOR—Without limiting the LESSEE'S right to obtain indemnification
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1 from LESSOR or any third parties, LESSOR, at its sole expense, shall maintain in full force
2 and effect, the following insurance policies or a program of self-insurance throughout the term
3 of this LEASE:
4 I. Commercial General Liability - Commercial General Liability
5 Insurance with limits of not less than Two Million Dollars
6 ($2,000,000) per occurrence and an annual aggregate of Four
7 Million ($4,000,000). This policy shall be issued on a per occurrence
8 basis.
9 II. Property Insurance—Against all risk of loss to property, at full
10 replacement cost with no coinsurance penalty provision.
11 III. Worker's Compensation -A policy of Worker's Compensation
12 insurance may be required by the California Labor Code.
13 LESSOR shall obtain endorsements to the Commercial General Liability insurance
14 naming the County of Fresno, its officers, agents, and employees, individually and collectively,
15 as additional insured, but only insofar as the operations under this LEASE are concerned. Such
16 coverage for additional insured shall apply as primary insurance and any other insurance, or
17 self-insurance, maintained by, its officers, agents, and employees shall be excess only and not
18 contributing with insurance provided under LESSOR'S policies herein. This insurance shall not
19 be cancelled or changed without a minimum or thirty (30) days advance written notice given to
20 County.
21 Within (30) days from date LESSOR executes this LEASE, LESSOR shall provide
22 certificates of insurance and endorsement as stated above for all of the foregoing policies, as
23 required herein, to the County of Fresno, Attn: ISD Lease Services (L-084), 333 W. Pontiac
24 Way, Clovis, CA 93612, stating that such insurance coverages have been obtained and are in
25 full force; that the County, its officers, agents and employees will not be responsible for any
26 premiums on the policies; that such Commercial General Liability insurance names the County,
27 its officers, agents, and employees, individually and collectively, as additional insured, but only
28 insofar as the operations under this Lease are concerned; that such coverage for additional
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1 insured shall apply as primary insurance an any other insurance, or self- insurance shall not be
2 cancelled or changed without a minimum of thirty (30) days advance, written notice given to
3 County.
4 In the event LESSOR fails to keep in effect at all times insurance coverage as herein
5 provided, the LESSEE may, in addition to other remedies it may have, suspend or terminate this
6 LEASE upon the occurrence of such event.
7 All policies shall be with admitted insurers licensed to do business in the State of
8 California. Insurance purchased shall be purchased from companies possessing a current A.M
9 Best Company rating of A FSC VI I or better.
10 16. SURRENDER OF POSSESSION - Upon the expiration or termination of this
11 LEASE, LESSEE will surrender the Premises to LESSOR in such condition as that existing at
12 the commencement of this LEASE less reasonable wear and tear, less the effects of any
13 Casualty as herein defined, and less the effects of any breach of LESSOR'S covenant to
14 maintain. LESSEE will not be responsible for any damage which LESSEE was not obligated
15 hereunder to repair.
16 17. FIXTURES - LESSOR agrees that any equipment, fixtures or apparatus installed
17 in or on the Premises by LESSEE shall continue to be the property of LESSEE and may be
18 removed by LESSEE at any time. LESSEE shall pay for the repair of any damage caused by
19 the removal of fixtures. Any fixtures not removed when LESSEE surrenders possession shall
20 become the property of LESSOR.
21 18. RIGHT OF ENTRY - LESSOR, or its representative(s), upon twenty-four (24)
22 hours' notice, shall have the right to enter the Premises at any time during business hours, or at
23 such other time as LESSEE deems appropriate, to make any alterations, repairs or
24 improvements to the Premises. The normal business of LESSEE or its invitees shall not be
25 unnecessarily inconvenienced.
26 19. AMENDMENT - This LEASE may be amended in writing by the mutual consent
27 of the parties without in any way affecting the remainder.
28 20. NON-ASSIGNMENT - LESSEE shall not assign or transfer its rights or obligations
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1 under this LEASE, or sub-lease said Premises or any portion thereof, without the prior written
2 consent of the LESSOR.
3 21. GOVERNING LAW-Venue for any action arising out of or relating to this LEASE
4 shall be in Fresno County, California. This LEASE shall be governed by the laws of the State
5 of California.
6 22. NOTICES-The persons and their addresses having authority to give and receive
7 notices under this LEASE include the following:
8 LESSEE: LESSOR:
9 County of Fresno (L-084) Kenco Investments, Inc., dba
Robert W. Bash, Director of Internal The Boyd Professional Center
10 Services/Chief Information Officer 275 S. Madera Ave., Suite 100
333 W. Pontiac Way Kerman, CA 93630
11 Clovis, CA 93612
12
13 All notices between the LESSEE and the LESSOR provided for or permitted under this
14 LEASE must be in writing and delivered either by personal service, by first-class United States mail,
15 by an overnight commercial courier service, or by telephonic facsimile transmission. A notice
16 delivered by personal service is effective upon service to the recipient. A notice delivered by first-
17 class United States mail is effective three LESSEE business days after deposit in the United States
18 mail, postage prepaid, addressed to the recipient. A notice delivered by an overnight commercial
19 courier service is effective one LESSEE business day after deposit with the overnight commercial
20 courier service, delivery fees prepaid, with delivery instructions given for next day delivery,
addressed to the recipient. A notice delivered by telephonic facsimile is effective when transmission
21
to the recipient is completed (but, if such transmission is completed outside of LESSEE business
22
hours, then such delivery shall be deemed to be effective at the next beginning of a LESSEE
23
business day), provided that the sender maintains a machine record of the completed transmission.
24
For all claims arising out of or related to this LEASE, nothing in this section establishes, waives, or
25 modifies any claims presentation requirements or procedures provided by law, including but not
26 limited to the Government Claims Act (Division 3.6 of Title 1 of the Government Code, beginning
27 with section 810).
28 23. ESTOPPEL CERTIFICATE — LESSEE shall, at any time upon not less than thirty
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1 (30) days prior request by LESSOR, execute, acknowledge and deliver to LESSOR a written
2 estoppel certificate, in a form satisfactory to LESSOR, certifying that this Lease is unmodified and
3 in full force and effect (or, if there have been modifications, that the same is in full force and effect
4 as modified and stating the modifications) and, if applicable, the dates to which the Rent and any
5 other charges have been paid in advance. Any such statement delivered pursuant to this Section
6 23 may be relied upon by third persons, including a prospective purchaser or encumbrancer of the
7 Premises.
8 LESSEE'S failure to execute and deliver an estoppel certificate within thirty (30) days after
9 LESSEE'S receipt of LESSOR'S written request therefore shall be conclusive upon LESSEE that
10 this Lease is in full force and effect, without modification except as may be represented by
11 LESSOR, that there are no uncured defaults in LESSOR'S performance, that not more than one
12 month's rental has been paid in advance, and that all other statements required to be made in the
13 estoppel certificate are conclusively made.
14 24. SUBORDINATION AND ATTORNMENT —At LESSOR'S option, this Lease shall
15 be subordinated to any mortgage or deed of trust which is now or shall hereafter be placed upon
16 the Premises, and LESSEE agrees to execute and deliver any instrument which may be necessary
17 to further effect the subordination of the Lease to any such mortgage or deed of trust; provided,
18 however, that such instrument of subordination shall provide, or the mortgagee or beneficiary of
19 such mortgage or deed of trust otherwise shall agree in writing in recordable form delivered to
20 LESSEE, that the mortgagee or beneficiary, including their successors and assigns, recognize
21 LESSEE's leasehold interest under this LEASE, and that so long as LESSEE is not in default under
22 this Lease, foreclosure of any such mortgage or deed of trust or sale pursuant to exercise of any
23 power of sale thereunder, or deed given in lieu thereof, shall not affect this LEASE, and LESSEE's
24 leasehold interest shall not be disturbed or otherwise adversely affected by reason of such
25 foreclosure or transfer of the Premises, and such foreclosure or sale, or deed given in lieu thereof,
26 shall be made subject to this LEASE, which shall continue in full force and effect, binding on
27 LESSEE, as lessee, and the transferee, as lessor. LESSEE shall attorn to the transferee as if said
28 transferee was LESSOR under this LEASE.
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1 25. DISCLOSURE OF SELF DEALING TRANSACTIONS — This provision is only
2 applicable if the LESSOR is operating as a corporation (a for-profit or non-profit corporation) or if
3 during the term of this LEASE, the LESSOR changes its status to operate as a corporation.
4 Members of LESSOR'S Board of Directors shall disclose any self-dealing transactions that
5 they are a party to while LESSOR is providing goods or performing services under this LEASE. A
6 self-dealing transaction shall mean a transaction to which the LESSOR is a party and in which one
7 or more of its directors has a material financial interest. Members of the Board of Directors shall
8 disclose any self-dealing transactions that they are a party to by completing and signing a Self-
9 Dealing Transaction Disclosure Form Exhibit "A", attached hereto and by this reference
10 incorporated herein, and submitting it to the County of Fresno prior to commencing with the self-
11 dealing transaction or immediately thereafter.
12 26. AUTHORITY - Each individual executing this LEASE on behalf of LESSOR
13 represents and warrants that he or she is duly authorized to execute and deliver this LEASE.
14 27. ELECTRONIC SIGNATURES. The parties agree that this LEASE may be executed
15 by electronic signature as provided in this section. An "electronic signature" means any symbol or
16 process intended by an individual signing this LEASE to represent their signature, including but not
17 limited to (1) a digital signature; (2) a faxed version of an original handwritten signature; or (3) an
18 electronically scanned and transmitted (for example by PDF document)of a handwritten signature.
19 Each electronic signature affixed or attached to this LEASE (1) is deemed equivalent to a valid
20 original handwritten signature of the person signing this LEASE for all purposes, including but not
21 limited to evidentiary proof in any administrative or judicial proceeding, and (2) has the same force
22 and effect as the valid original handwritten signature of that person. The provisions of this section
23 satisfy the requirements of Civil Code section 1633.5, subdivision (b), in the Uniform Electronic
24 Transaction Act(Civil Code, Division 3, Part 2, Title 2.5, beginning with section 1633.1). Each party
25 using a digital signature represents that it has undertaken and satisfied the requirements of
26 Government Code section 16.5, subdivision (a), paragraphs (1)through (5), and agrees that each
27 other party may rely upon that representation. This LEASE is not conditioned upon the parties
28 conducting the transactions under it by electronic means and either party may sign this LEASE with
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1 an original handwritten signature.
2 28. ENTIRE LEASE - This LEASE constitutes the entire LEASE between the
3 LESSOR and LESSEE with respect to the subject matter hereof, and supersedes all prior
4 leases, negotiations, proposals, commitments, writings, advertisements, publications, and
5 understandings of any nature whatsoever unless expressly referenced in this LEASE.
6 This LEASE shall be binding on and inure to the benefit of LESSOR'S heirs successors
7 and assigns.
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1 EXECUTED as of the date first herein written.
2 LESSEE: LESSOR:
3 �
COON-OF-FR NO / KENCO INVESTMENTS, INC.
�
B
4 Robert W. Bash, Director of Internal
Services/Chief Information Officer
5 By
Kenneth R. Boyd, President
6 Date �`% �7�l I�-=�__.—
a,
7
8
9
10 APPROVED AS TO LEGAL FORM:
DANIELL C. CEDERBORG, COUNTY COUNSEL
11 By 1046�
12 Deputy
13 APPROVED AS TO ACCOUNTING FORM:
OSCAR J. GARCIA, C.P.A.
14 AUDITOR-CONTROLLER/TREASURER-
TAX COLLECTOR
15
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21
Fund 0001
22 Subclass 10000
Org No. 4010
23 Acct. No. 7340
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Exhibit A
SELF-DEALING TRANSACTION DISCLOSURE FORM
In order to conduct business with the County of Fresno (hereinafter referred to as "County"), members
of a contractor's board of directors (hereinafter referred to as "County Contractor"), must disclose any
self-dealing transactions that they are a party to while providing goods, performing services, or both for
the County. A self-dealing transaction is defined below:
"A self-dealing transaction means a transaction to which the corporation is a party and in which one
or more of its directors has a material financial interest"
The definition above will be utilized for purposes of completing this disclosure form.
INSTRUCTIONS
(1) Enter board member's name,job title (if applicable), and date this disclosure is being made.
(2) Enter the board member's company/agency name and address.
(3) Describe in detail the nature of the self-dealing transaction that is being disclosed to the
County.At a minimum, include a description of the following:
a. The name of the agency/company with which the corporation has the transaction; and
b. The nature of the material financial interest in the Corporation's transaction that the
board member has.
(4) Describe in detail why the self-dealing transaction is appropriate based on applicable
provisions of the Corporations Code.
(S) Form must be signed by the board member that is involved in the self-dealing transaction
described in Sections (3) and (4).
Exhibit A
(1)Company Board Member Information:
Name: Date:
Job Title:
(2)Company/Agency Name and Address:
(3)Disclosure(Please describe the nature of the self-dealing transaction you are a party to):
(4) Explain why this self-dealing transaction is consistent with the requirements of Corporations Code 5233(a):
(5)Authorized Signature
Signature: Date: