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Placerita Canyon State Park                                        Operating Agreement



                   (4) years. County shall be subject to State's audit requirements and remedies as
                   set forth herein.



                   10.    UTILITIES AND SERVICES
                          County shall be responsible for all expenses resulting from utilities

                   supplied to the Premises.  County shall be responsible for distribution systems
                   and all related expenses within the Premises.



                   11.    INSURANCE
                          A.     Liability Insurance: At its sole expense, County agrees to maintain

                   in force during the term of this Agreement comprehensive general liability
                   insurance, insuring against claims for injuries to persons or property occurring in,

                   upon, or about Premises.  The insurance shall have limits of not less than ONE
                   MILLION DOLLARS ($1,000,000) for injuries to person or persons; not less than

                   ONE MILLION DOLLARS ($1,000,000) for property damage; and said limits shall

                   be per occurrence and shall be adjusted annually to reflect changes in the prior
                   year's Consumer Price Index (CPI).

                          B.     Fire Insurance: Fire insurance with extended coverage
                   endorsements thereon on all improvements located on the Premises, whether

                   furnished by State or constructed upon the Premises by County and/or any

                   concessionaire, in an amount equal to the full replacement cost and/or value
                   thereof.  This policy shall contain a replacement cost endorsement naming the

                   County and/or any concessionaire as the insured provided that if there is a lender
                   on the security of the improvements so insured, the proceeds of any such policy

                   or policies may be made payable to such lender.

                          C.     State agrees that County, at County's option, may self-insure the
                   coverage’s required by this Section.

                          D.     Each policy of liability insurance shall contain additional named
                   insured endorsements in the name of the State of California, through its

                   Department of Parks and Recreation, as to all insurable interests of the State
                   including, but not limited to, the Premises and all contents as follows:




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