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This lease agreement ("Lease") is dated this January S, 1997 by and between the City of
Redlands, a municipal corporation,1' "Landlord"), and Greg Pry and Debbie Pry (collectively
"Tenant"Lmull,
ord,for and in consideration of the rent to be paid by Tenant and of the covenants and
Pro%-,nons to be
and pmformed by Tenant under this Lease,hereby leases to Tenant, and Tenant
to lease from Landlord, the follown9: Carriage House in Prospect Park, 1352 Prospect Drive,
Redlands, California.("the Premises").
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ARTICLE I. TERM OF LEASE
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Section 1.01. This Lease shall be on a month to month basis,commencing at 12:01 a.m. on
January 1,1997 " nen ent Date"), and continuing until terminated.or cancelled by Landlor
date of cancellation, d
or Tenant by proidding written notice of such cancellation to the other >(303 days prior to the
ARTICLE 2, RENT
In-Lieu-Rent
Section 2.01. In lien of the payment of rent, and as consideration for Citv`s leasing of the
Pre es to Tenant,Tenant shall perforin the following duties with regard to the Premises:
I. Open and close the Carriage House for scheduled functions and events;
2. Open and close the chain. drive for scheduled ft1tictions and events;
3. Accept bookings of scheduled functions and events;
ARTICLE 3, USE OF PRECISE
Permitted Use
Sectim 3.01.Duting the term of this lease the Premises shall be used by Tenant as a private
residence, and for no other Purpose, by Tenant, Tenant shall not use or pen-nit the Premises to be
used for any other Purpose, without the prior written consent of the Landlord.
Insurance Hazards
Section 3.02.Tenant shall not commit or permit the commission of any acts on the Premises,
nor use or permit the use of the Premises in any manner,that will increase the existing rates for, or
cause the cancellation of, y fire, liability or'
ins e policy ins the Premises or the
improv tents on the Premises. Tenant shall5 at its o rr� cast d expense, comply with y d all
r is ofLandlords insurance e camers necessary,for the continued maintenance at reasonable
rates of fire and liability insurance policies on the Premises and the improvements on the Premises.
Waste or Nuisance
Section 3.03.Tenant shall not commit, or permit the commission by others of=any waste on
the Premises. Tenant shall not maintain, or pen-nit
t:h�.maintenance or commission of any
nuisance the Premises and Tenant shall not use or pe t the use of the Premises for any unlawful
p os -
Compliance with haws
Section 3.04. Tenant shah,.. at Tenant's own cost and expense, comply with all statutes,
ordinances, regulations and requirements of all governmental entities, both federal and state, and
municipal, relating to Tenant's use and occupancy of the Premises whether those statutes,
ordinances, regulations and requirements are now in force or are subsequently enacted. The
judgment ofany court ofcompetentiurisdiction, or the admission by Tenant in a proceeding brought
against Tenant by any governmental entity, that Tenant has violated any such statute, ordinance,
regulation or requirement shall be conclusive as between Landlord and Tenant and shall constitute
grounds for termination of this Lease by Landlord.
ARTICLE 4. TAXES AND LMLITIES
Utilities
Section 4.01. Tenant shall pay the sum of$75.00 dollars per month directly to the Friends
of Prospect Park for the ftimishing of water, seiner and waste disposal to the Premises during the
term of this Lease. Tenant shall hold Landlord free and hamiless from any and all charges for
electricity,gas and telephone service to the Premises.
ARTICLE 5, ALTERATIONS AND REPAIRS
Condition of Premises
Section 5.01. Tenant accepts the Premises, as well as the improvements located on the
Premises, in their present condition and stipulates with Landlord that the Premises and
improvements are in good, clean; safe and tenantable condition as of the date of this Le e.
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Maintenance by Landlord
Section 5.02. Landlord shall, at its own cast and expense,maintain in good condition and
repair the structural elements of the Premises. For purposes of thissection, struc elements'°
shall mean the exterior rood exterior walls-, structural supports d foundation of the Premises.
Landlord shall not be liable for y ages to Tenant or the property of Tenant resulting from
Landlord's failure to male any repairs required by this section urdesswritten notice of the need fol-
those
repairs has been given to Landlord by Tenant and Landlord has failed for a period of
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30) days after receipt of the notice, unless prevented by causes not the fault of the Landlord, to
make the needed repairs. Notu#ithstanding anything in this section to the contrary, Tenant shall
promptly reimburse Landlord for the full cost of any repairs made pursuant to this section required
because of the negligence or other fault; other than normal and proper use, of Tenant or its
employees,agents,subtenants or invitees if any. Landlord and its agents shall have the right to enter
the Premises at all reasonable times (and at any time during an emergency) for the purpose of
inspecting there or to make any repairs required to be made by Landlord under this Lease.
Maintenance by Tenant
Section 5.03. Except as otherwise provided for in Section 5.02 of this Lease,Tenant shall
at its ownn cost and expense keep and maintain all portions of the Premises and all portions of the
Premises all improvements located on the Premises in good order and repair and in as safe and
clean a condition as they were when received by Tenant from Landlord,reasonable wear and tear
excepted, vided,however,that Tenant shall not undertake any repairs without prior written notice
to,and the prior written consent o� Landlord.
Alterations and Liens
Section 5.04. Tenant shall not make or pen-nit any other person to make any alterations to
the Premises or to anyinprovements on the Premises without the prior written consent of Landlord.
Furthermore, any and all alterations, additions, improvements and fixtures, except furniture and
trade fixtures, made or placed in or on the Premises by Tenant or any other person shall on
tion or earlier termination of this Lease,become the property of Landlord and remain can the
Premises. Landlord shall have the option, however, on expiration or termination of this Lease, of
requiring Tenant at Tenant's sole coast and expense,to remove any or all such alterations, additions,
improvements or fixtures from the Premises.
Inspection by Landlord
Section 5.05. Tenant shall. permit Landlord and Landlord's agents, representatives or
employees to enter the Premises at all reasonable times for the purpose of inspecting the Premises
to Clete me whether Tenant is complying with the terms of this Lease, for the purpose of do'
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other lawfW acts that may be necessary to protect Landlord's interest in the Premises, or for the
Purpose of performing Landlord's duties under this Lease.
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Surrender of Premises
Section 5.06. On expiration or earlier termination of this Lease, Tenants promptly
surrender and deliver the Premises to Landlord in as good condition as they are now at the date of
this Lease, excluding reasonable wear and tear,and repairs required to be made by Landlord under
this Lease.
ARTICLE 6. INDEMNITY AND IN,SURA.NCE
Section 6.01. Tenant shall defend. indemnifv and hold Landlord and its elected officials,
officers and employees hamiless from and against any all liability to third parties resulting from
Tenants occupation and use of the Premises, specifically including without limitation, any claim,
liability,loss or damage arising by reason of
(a.)The death or injury of any person or persons,including Tenants or any person who is an
employ,—or agent ofTeriant,or by reason of the damage to or destruction of any property,including
property owned by Tenant or any person who is an employee or agent of Tenant, and caused or
allegedly caused by either the condition of the Premises, or some act or omission of Tenant or of
some ageK contractor,employee,servant subtenant or concessionaire of Tenant on the Premises;
(b) Any work performed on the Premises or materials fimushed to the Premises at the
insistence or request of Tenant or any agent or employee of Tenant; and
(c)Tenants&iltire to perform any provision of fl-ds Lease or to comply with any requirement
of law or any requirement imposed on Landlord or the Premises by any duly authorized
governmental agency.
Tenant's Personal Property
Section 6.02.Tenant shall, during the full term of this Lease and any renewals or extensions
hereof, maintain at Tenant's own cost and expense an insurance policy issued by a reputable
company authorized to conduct insurance business in California Misuring for theirfiiU insurable
value a fixtures and equipment in or on the Premises against damage or destruction by fire,theft
or the elements. Landlord shall be named an additional insured on such policy and the insurance
coverage evidenced by the policy shall be primary and non-contributing to any insurance or
self-insurance maintained by Landlord.
Cancellation Requirements
Section 6.03.The irisurance policy shall be in a form reasonably satisfactory to Landlord and
sliall carry an endorsement that,before changing or canceling the policy,that the issuing insurance
company sliall give Landlord at least 30 days'prior written notice. Duplicate originals or certificates
of such insurarice policy shall be delivered to Landlord within ten (10)days of the date of execution
of this Lease.
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ARTICLE 7. DEFAULT,ASSIGNMENT,AND TE MIINTATIONT
Restriction Against Subletting or Assignment
Section 7.01. Tenant shat not encumber,assign. or otherwise transfer this Lease, any right
or in this Lease,or any right or interest in the Premises or any of the improvements that may
now ear here be construct d or installed on the Prernises. c it to t fast obtaining the express prior
written consent of Landlord. Tenant shall not sublet the Premise's or any part of the premises or
allow any ether person, other than Tenant's agents,servants and invitees to occupy the Premises or
any part of the Premises without the prior written consent of Landlord. A consent by Landlord to
one assignment one subletting or one occupation of the Premises by other person shall not be
deemed to be a consent to any subsequent assignment,subletting or occupation of the Premises by
other person. Any encumbrance, assignment- transfer or subletting without the prior written
consint of dlord,whether voluntary or involuntary,by operation of law or otherwise,is void and
shall at the option of Landlord, terminate this Lease. The consent of Landlord to any assignment of
Tenant`s interest in this Lease or the subletting by Tenant of the Premises or parts ofthe Premises
shall not be unreasonably withheld.
.Default Defined
Section 7.02.The occurrence of any of the following shall constitute a material default and
breach of this Lease by Tenant:
(a)Any&1=by Tenant to pay the rent or to make any other payment required to be made
by Tenant under this Lease.
(b) A failure by Tenant to observe and perform any ether provision of this Lease to be
observed or performed by Tenant, after written notice of Tenant's ure is given by Landlord to
Tenant.
(c)The making by Tenant of any general assignment for the benefit of creditors;the filing
by or against Tenant of a petition to have Tenant adjudged a banlaupt or of a petition for
reorganization or arrangement under any lain relating to bankruptcy(unless,in the case of petition
filed against Tenant,it is dismissed within 60 days`;the appointment of trustee or receiver to take
possession ofsubstantially all ofTenants assets located at the Premises or of Tenants interest in this
Lease, when possession is not restored to Tenant within 30 days; or the attachment execution,or
other judicial seizure of substantially all. of Tenant' s assets located at the Premises or of Tenanf s
interest in this Lease,when that seizure is not discharged within 30 days.
Termination of Lease and Recovery of Damages
Section 703.In the event of any default by Tenant under this Lease,in addition to any other
remedies available to Landlord at law or in equity=, Landlord shall have the t to terminate
this
Lease d all. rights o Tenant hereunder by giving mitten notice of the termination. No act of
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Landlord shall be construed as terminatingLease exeept written notice given by Landlord to
Tenant advising Tenant that Landlord elects to terminate the Lease. In the event Landlord elects to
terminate this Lease, Landlord may recover from Tenant:
(a) The worth at the time of award of any unpaid rent that had been earned at the time of
termination of this Lease;
(la)The worth at the time of award of the amount by which the unpaid rent that would have
been earned after termination of the lease until the time of award exceeds the amount of rental loss
that Tenant proves could have been reasonably avoided;
(c) The worth at the time of award of the amount by which the unpaid rent for the balance
ofthe term ofthis Lease after the time of award exceeds the amount of rental loss that Tenant proves
could be reasonably avoided;and
(d) Any other amount necessary to compensate Landlord for all detriment proximately
caused by Tenants .failure to perform its obligations under this Lease.
The term "rent" as used in this section shall mean the Minimum Rent,the Percentage Rentz
and all other sums required to be paid by Tenant pursuant to the terms of this Lease. As used in
subsections(a)and(b)above,the "worth at the time of award"is computed by allowing interest at
the rate of 10 percent per year. As used in subsection (c), the "worth at the time of award" is
computed by discounting that amount at the discount rate of the Federal Reserve Bank of San
Francisco at the time of award plus 1 percent.
Landlord's Right to Continue Lease in Effect
Section 7.04. (a) If Tenant breaches this lease and abandons the Premises, Landlord may
continue this Lease in effect by not terminating Tenant's right to possession of the Premises, in
which event Landlord shall be entitled to enforce all its rights and remedies under this Lease,
including the right to recover the rent specified in this lease as it becomes due under this Lease. For
as long as Landlord does not terminate this Lease,Tenant shall have the right to assign or sublease
the Premises with the Landlord's prior written consent. Landlord shall not unreasonably withhold
consent.
)No act ofLaridlotd,including but not limited to Landlord's entry on the Premises, efforts
to relet the Premises,or maintenance of the Premises, shall be construed as an election to terminate
this Lease unless a written notice of that intention is given to Tenant or unless the termination of this
Lease is decreed by a court of competent jurisdiction,
Landlord's Right to cure Tenant Defaults
Section 7.05.IfTer. tbreaches or fails to perform any of the covenants or provisions of this
Lease, Landlord may, but shall not be required to cure Tenants breach. Any sum expended by
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Landlord,with the then maximum Legal rate of interest, shall be reimbursed by Tenant to Landlord
with the next due rent payment under this Lease.
Cumulative Remedies
Section 7.06. The remedies granted to Landlord in this section shall not be exclusive but
shall be cumulative and Mi addition to 01 remedies now or hereafter allowed by law,or provided in
this Lease.
Waiver of Breach
Section 7.07. The waiver of Landlord of any breach by Tenant of any of the provisions of
this Lease shah not constitute a continuing waiver or a waiver of any subsequent breach by Tenant
either of the same or another provision of this Lease,
ARTICLE 8, MISCELLANEOUS
Farce Majeure - Unavoidable Delays
Sect`on 8.41.If the performance of any act required by this Lease to be performed by either
Landlord or Tenant is prevented or delayed by reason of an act of God, strike, lockout, labor
troubles, inability to secure materials, restrictive governmental laws or regulations, or any other
cause except financial inability that i
is not the fault of the party required to perform the act,the time
for performance of the act will be extended for a period equivalent to the period of delay, and
performance of the act during the period of delay will be excused. However,nothing contained in
this section shall excuse the prompt payment of rent by Tenant as required by this Lease or the
performance of any act rendered difficult solely because of the financial condition of the party,
required to perform the act.
Attorneys'Fees
Section 8.02. If any legal action is commenced between the parties to this Lease concerning
the Premises,this Lease,or the rights and duties of either in relation to the premises or to this Lease,
the party prevailing in that action shall be entitled to, in addition to any other relief that may be
gmnted in the action,a reasonable sura as and for its attorneys'fees in that action that are determined
by the court.
Notices
Section 8.03. Except as otherwise expressly provided by lacy, any and all notices or other
communications required or permitted by this Lease or by law to be served on or given to either
party to Lease by the other party to this Lease shall be in writing and shall be deemed duly
served and given when personally- delivered to the party to whom they are directed, or in heu of
personal service,when deposited in the United States mail,first-class postage pre-paid, addressed
to Tenant at 1352 Prospect Drive, Redlands, California, 92373 or to Landlord at 35 Cajon Street,
Suite 200, P. Q. Box 3005, Redlands, California, 923'73. Either
� party; tenant or Landlord, may
its address for the purpose of this section by giving written notice of that change to the ether
party in the manner provided in this section.
Entire Agreement
Section 8.04. This Lease constitutes the entire agreement between Landlord and"Tenant
respecting the Premises,the leasing of the Premises to'Tenant and correctly sets forth the
obligations of Landlord and Tenant to each other as of its date_ Any agreements or
representations respecting the Premises or their leasing by Landlord to Tenant not expressly set
forth in this instrument are null and void.
Time of Essence
Section 8.05. Time is expressly declared to be of the essence in this Lease.
Executed on this-111h-day of Januazy, 1997,
CITY CSE REDLANDS ATTEST
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Swen Larson,Mayor gore Poyzer Ci y Clerk
TENANT
Gregory Pry