Loading...
HomeMy WebLinkAboutContracts & Agreements_149-2026INDEMNIFICATION AND INSURANCE AGREEMENT BYAND BETWEEN CITY OF REDLANDS AND REDLANDS HISTORICAL MUSEUM ASSOCIATION This Indemnification and Insurance Agreement ("Agreement") is made and entered June 17, 2025 ("Effective Date"), by and between the City of Redlands, a municipal corporation and general law city ("City"), and the Redlands Historical Museum Association, a California nonprofit public benefit corporation ("RHMA"). City and RHMA are sometimes individually referred to herein as a "Party" and, together, as the "Parties." WHEREAS, City and RHMA entered into a License Agreement ("License") on April 21, 2026 wherein RHMA would operate the store and event pavilion in the Museum of Redlands located at 1 North Center Street, Redlands, CA ("Museum")for a period of twenty (20) years; and WHEREAS, the License requires RHMA to operate the Museum store and event pavilion using RHMA volunteers or City contractor(s) fully funded by RHMA; and WHEREAS, City is in the process of negotiating a professional services agreement for a consultant to assist with the operation of the Museum store and event pavilion to be fully funded by RHMA; and WHEREAS, City is in the process of hiring two (2) part-time city employees to assist with clerical and administrative support tasks in connection with the operation of the Museum store and event pavilion; and WHEREAS, RHMA wishes to utilize the paid services of three (3) employees or independent contractors hired by RHMA to assist with the operation of the Museum store and event pavilion as set forth in the License on an interim basis while City formalizes a professional services agreement with a consultant and completes the hiring process for two (2) part-time city employees; and WHEREAS, as consideration for City's authorization to allow RHMA to utilize the paid services of no more than three (3) RHMA employees or independent contractors during the term set forth herein, RHMA agrees to defend and indemnify and provide insurance coverage to City during the term of this Agreement. NOW, THERFORE, in consideration of the mutual promises contained herein, the Parties agree as follows: 1. During the term of this Agreement, RHMA may utilize no more than three (3) employees or independent contractors ("RHMA Personnel") to perform services in the Museum store and event pavilion. RHMA Personnel shall perform all services consistent with the terms, conditions and limitations set forth in the License, attached hereto as Exhibit "A" (the "Services"), and this Agreement. 2. RHMA understands and agrees to the following: a) RHMA Personnel are not employees or independent contractors of City or deemed to have been employed, retained or hired by City or on behalf of City. RHMA Personnel shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an employee, contractor, agent, partner, joint venturer of City nor shall RHMA Personnel have any authority, express or implied, to bind City to any obligations, except as permitted under the License. b) At all times during the term of this Agreement, RHMA Personnel shall be the employees or independent contractors of RHMA and shall be under RHMA's exclusive supervision, direction and control when performing the Services. RHMA will determine the means, methods and details of performing the Services, consistent with the requirements of the License and this Agreement. c) If required by City's Human Resources Department, RHMA Personnel shall submit to a background check and comply with any City requirements prior to performing the Services. As the Museum is also a workplace for City employees, RHMA Personnel shall, if directed by City's Human Resources Department, comply with all city policies, rules, and regulations while on the Museum premises, including but not limited to City's Harassment Prevention and Workplace Violence policies. d) RHMA shall be solely responsible to pay all wages, salaries, fees, expenses, compensation, benefits and other amounts due to RHMA Personnel in connection with their performance of the Services. RHMA shall be responsible for all reporting and withholding obligations respecting such RHMA Personnel, to the extent applicable, including, but not limited to: social security taxes, income tax withholdings and any other reporting and payroll withholding obligations. RHMA shall be responsible at its sole expense for unemployment insurance and disability insurance RHMA Personnel, as applicable. RHMA shall be solely responsible for compensating independent contractors providing the Services in the Museum. RHMA shall indemnify, defend and hold harmless City, and City's officers, officials, employees or vohmteers for any claims, damages, losses, expenses, fines, penalties, interest, judgments, demands, settlements and defense costs related to or arising from RHMA's employment or retention of RHMA Personnel, including, but not limited to: any alleged failure to comply with federal or state laws related to the employment and retention of RHMA Personnel, including but not limited to: hiring of RHMA Personnel, salary or compensation payments to RHMA Personnel; alleged failure to make contributions for benefits, if any, or provide insurance for RHMA Personnel; all contract disputes with RHMA Personnel who are independent contractors; and any liability for alleged misclassification of independent contractors. e) During the term of this Agreement, RHMA shall keep the Library Director informed on the performance of the Services by RHMA Personnel. 2 3. RHMA agrees to defend, indemnify and hold harmless City, and City's officers, officials, employees, agents and volunteers from and against any and all claims, causes of action, damages and liability, judgments, settlements resulting from the alleged negligent acts or omissions, and the alleged willful misconduct of RHMA, RHMA Personnel, and RHMA's officers, officials, employees, independent contractors, volunteers and invitees, related to or arising from this Agreement or the performance of the Services during the term of this Agreement; except for such loss or damage which was caused by the sole negligence or willful misconduct of City or City's officers, officials, employees, agents and volunteers. RHMA will conduct all defenses at its sole cost and expense and City shall provide RHMA with reasonable cooperation in such defense. This indemnity shall apply to all claims and liability regardless of whether any insurance policies of RHMA or any other parties are applicable thereto. The policy limits of any insurance of RHMA or other parties are not a limitation upon the obligation of RHMA under this indemnification, including without limitation the amount of indemnification to be provided by RHMA to City. This indemnification shall survive any termination or expiration of this Agreement. 4. RHMA shall provide insurance coverage for the duration of this Agreement. RHMA and RHMA Personnel shall not perform any Services unless and until the required insurance set forth below is obtained by RHMA and RHMA Personnel that are independent contractors. RHMA shall provide City with certificates of insurance and endorsements evidencing such insurance prior to RHMA Personnel performing the Services. Insurance policies shall include a provision prohibiting cancellation or modification of the policy except upon thirty (30) days prior written notice to City. a) Workers' Compensation and Employer's Liability insurance in the amount that meets statutory requirements with an insurance carrier acceptable to City, or certification to City that RHMA is self -insured or exempt from the workers' compensation laws of the State of California. RHMA shall execute and provide City with a "Workers' Compensation Insurance Certification," which is attached hereto as Exhibit `B" and incorporated herein by this reference, prior to performance of the Services. b) Comprehensive General Liability insurance with carriers acceptable to City in the minimum amount of One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) in the aggregate, public liability, property damage and personal injury is required. City shall be named as an additional insured and such insurance shall be primary and non-contributing to any insurance or self-insurance maintained by City. c) Professional liability insurance throughout the term of this Agreement in the amount of One Million Dollars ($1,000,000) per claim made. d) Business Auto Liability coverage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit bodily injury liability and 3 property damage liability. This coverage shall include all RHMA-owned vehicles, if any, used in connection with RHMA and RHMA Personnel's provision of the Services, hired and non -owned vehicles, and employee non -ownership vehicles. City shall be named as an additional insured and such insurance shall be primary and non-contributing to any insurance or self-insurance maintained by City. e) RHMA may retain RHMA Personnel as independent contractors to perform the Services; however, RHMA Personnel that are independent contractors must provide City with certificates of insurance and endorsements evidencing insurance consistent with this Agreement prior to performing the Services. Such insurance coverage shall add City as an additional insured to the insurance policies required and City shall be provided with the insurance endorsements by the independent contractors prior to performing the Services. f) RHMA's insurance coverage or that of any independent contractor retained by RHMA shall be primary insurance with respect to the City, and City's officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of RHMA's insurance or that of any independent contractor retained by RHMA and shall not contribute with it. 5. This Agreement, including all Exhibits attached hereto, represents the entire understanding of the Parties as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both Parties hereto. This Agreement shall not be interpreted for or against any Party hereto by reason of the fact that such Party may have drafted this Agreement or any of its provisions. 6. The term of this Agreement shall commence on the Effective Date first written above and terminate on September 2, 2026, unless earlier terminated in writing by either Party with five (5) days prior notice to the other Party. 7. No waiver of any of the provisions of this Agreement shall be binding unless in the form of a writing signed by the Party against whom enforcement is sought, and no such waiver shall operate as a waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver. Except as specifically provided herein, no failure to exercise or any delay in exercising any right or remedy hereunder shall constitute a waiver thereof. 8. RHMA shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent, contractor, partner, or joint venturer nor shall RHMA have any authority, express or implied, to bind City to any obligations, except as permitted pursuant to the License. 9. RHMA shall not assign or transfer to any third party this Agreement or any obligations contained herein, and any assignment or attempted assignment shall be n void and may, in the sole discretion of City, result in City's immediate termination of this Agreement. 10. All notices, demands and other communications required or permitted hereunder shall be made in writing and shall be deemed to have been duly given if delivered by hand, against receipt, or mailed certified or registered mail and addressed as follows: City Clerk City of Redlands 35 Cajon Street PO Box 3005 (mailing) Redlands, CA 92373 jdonaldson@ci ofredlands.ora 909-798-7631 Redlands Historical Museum Association Attn: President P.O. Box 470 Redlands, CA 92373 info curedlandshistoricalmttseum.org 909-798-7632 11. If any provision or portion thereof of this Agreement shall be held by a court of competent jurisdiction to be invalid, void, or otherwise unenforceable, the remaining provisions shall remain enforceable to the fullest extent permitted by law. 12. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of California and venue shall be in the state courts in the County of San Bernardino. 13. In the event any action is commenced to enforce or interpret any of the terms or conditions of this Agreement, the prevailing Party shall, in addition to any costs and other relief, be entitled to the recovery of its reasonable attorneys' fees, including fees for the use of in-house counsel by a Party. 14. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, which together shall constitute the same instrument. [Signatures on Next Page] 5 below. IN WITNESS HEREOF, the Parties hereto duly executed this Agreement as of the date Executed on the 30 day of July, 2026, at Redlands, California CITY OF REDLANDS D l harles . Duggan, Jr., City Manager ATTEST: C��� d PWV(A. J e Donaldson, City Clerk L REDLANDS HISTORICAL MUSEUM ASSOCIATION ` Phil Doolittle, Treasurer EXHIBIT "A" LICENSE AGREEMENT 7 LICENSE AGREEMENT BY AND BETWEEN THE CITY OF REDLANDS AND THE REDLANDS HISTORICAL MUSEUM ASSOCIATION This License Agreement ("License") is made and entered in this 2 1 " day of April, 2026 ("Effective Date"), by and between the City of Redlands, a municipal corporation and general law city ("City"), and the Redlands Historical Museum Association, a California nonprofit public benefit corporation ("Licensee" or "RHMA"). City and Licensee are sometimes individually referred to herein as a "Party" and, together, as the "Parties." RECITALS WHEREAS, Licensee transferred to City property located at 1 North Center Street, Redlands, CA 92373, including a 24,000 square foot building and other improvements, including a store and event pavilion (the "Property") to be operated as the Museum of Redlands as particularly described in Exhibit "A," titled "Museum Site Plan;" and WHEREAS, the Parties are committed to promoting public understanding of and support for the Museum; and WHEREAS, Licensee desires to have use of certain areas of the Museum to further its mission and to financially support Museum operations; and WHEREAS, City and Licensee desire to enter into this License to set forth the terms and conditions under which the City will permit use of portions of the Property to Licensee; and WHEREAS, City and Licensee desire to cooperate to further the above -stated purpose in a way compatible with the City's operations of the Museum in service of the public interest. NOW, THEREFORE, in consideration of the mutual promises contained herein, the City and Licensee agree as follows: AGREEMENT Section 1. Premises. City hereby grants to Licensee a license to use the store area and event pavilion located at the Museum ("Premises") as more particularly described in Exhibits `B," and "C," titled "Store Area Plan" and "Event Pavilion Plan," respectively, which is attached hereto and incorporated herein by this reference. The Premises shall be used in connection with the activities described herein. This License is exclusive with respect to the store area, and non- exclusive with respect to the event pavilion. City shall continue to control the Property, including, without limitation, the right to issue additional permits and licenses so long as they do not conflict with this license. Section 2. Acknowledgment of License and Disclaimer of Tenancy. 1. Licensee acknowledges and agrees that City is the owner of Premises and that nothing in this License grants to Licensee any rights, title, or interest in the Premises, except for the revocable, exclusive right to use and operate the store area and the RHMA License Agreement,bm.04.16.26.FY2526-155 revocable, non-exclusive right to use the event pavilion as provided in this License. Licensee is not a tenant or lessee of City and holds no rights of tenancy or leasehold in relation to the Premises. 2. In consideration of City's grant of this License, Licensee specifically and expressly waives, releases, and relinquishes any and all rights to assert any claim of right, privilege, or interest in the Premises other than the revocable rights expressly granted by this License. 3. Licensee further acknowledges and agrees that without the representations and agreements set forth herein, City would not enter into this License. Section 3. Term. The term of this License shall commence on the Effective Date and continue for a period of twenty (20) years, unless terminated earlier as provided herein. Section 4. License Fee. The use of the Premises by Licensee shall be at no cost to Licensee. The Parties acknowledge that the use and operation of the store area and event pavilion under this License will be performed by Licensee at no cost to the City. All net revenues from the operation of the store and event pavilion shall be utilized as set forth herein and the Real Estate Transfer Agreement approved on June 17, 2025. In order to maintain this License, Licensee shall provide a net financial benefit to City of at least $5,000 per calendar year. Licensee shall provide to City, within thirty (30) days following the end of each calendar year, a written financial report in a form reasonably acceptable to City summarizing the net financial benefit provided to the Property, along with supporting documentation upon request to verify compliance with the minimum annual requirement. Section 5. Use of Premises. A. Store Area 1. Licensee is permitted exclusive use and operation of the store area and non-exclusive use of the front desk, surrounding lobby area, and Will J. Reid Library described in Exhibit `B" attached hereto and incorporated by reference herein. Licensee's use of the store area shall be for the sole purpose of selling merchandise for the sole benefit of the Museum. 2. The store area shall be operated only by RHMA volunteers or a City contractor, which costs shall be paid by Licensee under a separate funding agreement with City. 3. Library Director may object and cause the removal of merchandise within store area if it is determined that such merchandise is detrimental to the health, safety, or welfare of the public or City. Pre -packaged food and/or non-alcoholic beverages may be sold in the store area with prior written approval of the Library Director and with a valid San Bernardino County Health Permit. 4. Licensee shall stock the store area with merchandise at its sole cost and expense. Licensee shall be solely responsible for securing the merchandise from theft, damage or vandalism. The City shall not be liable for any stolen or damaged merchandise. In RHMA License Agreement.bm.04.16.26.FY2526-155 the event of termination of the License, Licensee shall retain ownership of any unsold merchandise. 5. The hours of operation for the store area shall align with Museum operating hours. The store area shall not be operated outside of Museum operating hours, unless Licensee obtains a permit for a special event in the Museum, and in that case, the store area may be operated during the special event with the approval of the Library Director. 6. A City employee must be present during the operating hours of the store area. B. Event Pavilion 1. Licensee is permitted non-exclusive use of the event pavilion area. Licensee is permitted to use the adjacent outdoor areas (loggia), Rochford Family Building interior restrooms, kitchen, green room, and southwest vehicular ramp, ancillary to its use of the event pavilion as described in Exhibit C. 2. Licensee shall operate the event pavilion, performing specific tasks, including but not limited to: addressing booking inquiries, booking events for RHMA, and third party events, the completion of rental applications, insurance, collection of rental fees for third party renters, and ensuring compliance with all City requirements for facility rentals consistent with City policies, regulations and ordinances. 3. Licensee shall not be required to pay a rental fee to the City for use of the event pavilion. However, the net revenue from Licensee's use of the event pavilion shall be paid to City as directed by the City. Licensee's events shall be subject to this Section B and consistent with City policies, regulations and ordinances, including insurance. 4. Licensee may also schedule events by third parties, including payment of rental fees and consistent with all City requirements for facility rentals and consistent with City policies, regulations and ordinances, including insurance. 5. City and RHMA shall maintain a central booking calendar. All events scheduled in the event pavilion must be approved by the Library Director prior to booking the event, which approval shall not be unreasonably withheld. 6. The event pavilion shall be operated only by City staff, RHMA volunteers or City contractor(s) which costs shall be paid by Licensee under a separate funding agreement with City. 7. Licensee shall be responsible for staging and breakdown of rental events including post -event cleaning. All costs associated with holding RHMA events at the event pavilion shall be at the sole cost of Licensee. No city staff shall be used for rental events. 8. A City employee must be present during all events in the event pavilion and Licensee shall be responsible for associated overtime costs, if any. RHMA License Agreemenl.bm.04.16.26.FY2526-155 9. Noise levels for indoor and outdoor events shall not exceed those applicable limits pursuant to the Redlands Municipal Code. 10. Event pavilion capacity shall not exceed the maximum occupancy requirements as determined by the Redlands Fire Marshal. 11. Events shall not conflict with Museum operations and shall be coordinated with the Library Director at least thirty (30) days in advance. 12. An event which includes 200 attendees or greater shall be considered a "Large Event." Large Events shall be subject to the following additional conditions: a) An event plan shall be submitted for events of 200 or more attendees. Such plan shall include, but not be limited to, a description of any plans for offsite parking and security, and any other information requested by City. b) The event plan shall be submitted no later than 60 days in advance of the event, and a decision shall be rendered by City within 30 days of submittal of application approving or denying the event in the event pavilion. c) In no case shall an event located within the event pavilion exceed the maximum occupancy allowed in the event pavilion as determined by the Redlands Fire Marshal. 13. Licensee shall obtain any applicable local, county, and state permits for its events and shall indemnify, defend and hold harmless City, and its officers, officials, employees and agents for failure to obtain any required permits or to operate the event pavilion contrary to federal, state, county and local regulations and laws. 14. Licensee is prohibited from using the following in the event pavilion or adjacent outdoor areas: open flames or candles (battery -operated alternatives are allowed), and pyrotechnics. Space heaters are permitted upon approval by the Redlands Fire Marshal. 15. Licensee may serve alcohol at an approved event in the event pavilion with the prior written approval of the Library Director and in accordance with City rules, insurance requirements and applicable ABC regulations. 16. City shall utilize the event pavilion for City/Library-sponsored events. Licensee shall coordinate use of the event pavilion to ensure that RHMA-events do not conflict with City events. Section 6. RHMA Volunteers. Licensee may assign City -approved volunteers or City contractor(s), which costs shall be paid by Licensee under a separate funding agreement with City to the Premises to assist Licensee in operating the store area and the event pavilion under the following conditions: 4 RHMA License Agreement.bm.04.16.26.FY2526-155 A. Licensee shall supervise and control all volunteers or contractors while on the Premises. Under no circumstances shall Licensee or its volunteers or contractors direct or interfere with the work performed by city employees in the Museum. B. Licensee's volunteers or contractors shall only be assigned to the store area and the event pavilion and no other area in the Museum. C. Licensee shall confer with the Library Director to establish reporting mechanisms for incidents involving its volunteers. Communication protocols shall be developed to address issues or updates regarding volunteers. D. City shall approve all volunteers and contractors assigned to the Premises, and require background checks for all Licensee's volunteers and contractors assigned to work on the Premises in accordance with City policy. E. Conflicts between Licensee's volunteers/contractors and city employees shall be resolved by the City Manager or his/her designee, which decision shall be final. Section 7. Maintenance of Premises. Licensee shall maintain the Premises in a clean and orderly state. Any damage caused by Licensee's use of the Premises shall be repaired at Licensee's expense. The City shall retain the right to inspect the Premises and provide written notice of any required repairs or maintenance. Failure to act within fifteen (15) days of such notice shall result in the City performing the necessary work at Licensee's expense. Section 8. Indemnity. Licensee shall defend, indemnify and hold harmless City, and its elected officials, officers, employees and agents, from and against any and all claims, causes of action, damages and liability resulting from Licensee's negligent acts or omissions, and willful misconduct of Licensee, and its contractors, volunteers, employees, guests, agents and invitees arising from Licensee's occupation and use of the Premises or while on the Property, and the improvements or equipment thereon, during the term of this License. City shall indemnify and hold harmless Licensee from and against any and all claims, causes of action, damages and liability resulting solely from City's negligent acts or omissions and willful misconduct and those of its employees and agents during the term of this License. This section shall survive any termination of this License. Section 9. Public Liability and Property Damage Insurance. Licensee shall maintain at its own cost for the term of this License, public liability and property damage insurance in the amount of two million dollars ($2,000,000) per occurrence and four million dollars ($4,000,000) in the aggregate, issued by an insurance company acceptable to City. Licensee shall provide City with a certificate of insurance and endorsements showing City as an additional insured on the policy prior to Licensee's use and occupancy of the Premises. Such insurance shall be primary with respect to City and non-contributory to any insurance or self- insurance maintained by City. The policy shall require that, before amending or canceling the policy, the issuing insurance company shall give City at least thirty (30) days prior written notice. City and Licensee RHMA License Agreement.bm.04.16.26.FY2526-155 acknowledge and agree that the insurance required of Licensee is subject to annual review by City and subject to increases in the amount and scope of coverage, as reasonably determined by City. Licensee shall procure and maintain Worker's Compensation Insurance, if applicable, in such amount as will fully comply with the laws of the State of California, and which shall indemnify, insure and provide legal defense for both Licensee and City against any loss, claim, or damage arising from injuries or occupational diseases happening to any worker employed by Licensee in, at or about the Premises. Section 10. Assignment Prohibited. Licensee shall not encumber, assign, sublease, or otherwise transfer this License, or any right or interest therein, without City Council approval. Any attempt to do so shall be null and void. Any encumbrance, assignment, sublease, or transfer of this License shall constitute a breach of this License and may, at the sole discretion of City, result in the immediate termination of this License. Section 11. Attorneys' Fees. In the event any action is commenced to enforce or interpret the terms or conditions of this License, the prevailing Party shall, in addition to any costs and other relief, be entitled to the recovery of its reasonable attorneys' fees, including fees for use of in- house counsel by a Party. Section 12. Notices. Any notice or other communication required, or which may be given, pursuant to this License, shall be in writing. Any such notice shall be deemed delivered (i) on the day of delivery in person; (ii) five (5) days after deposit in first class registered mail, with return receipt requested; (iii) on the actual delivery date if deposited with an overnight courier; or (iv) on the date sent by facsimile or electronic email transmission (including PDF), if confirmed with a copy sent contemporaneously by first class, certified, registered or express mail; in each case properly posted and fully prepaid to the appropriate address set forth below, or such other address as a party may provide notice of in accordance with this section: CITY: City Clerk City of Redlands 35 Cajon Street PO Box 3005 (mailing) Redlands, CA 92373 jdonaldson@cityofredlands.org 909-798-7531 Section 13. Termination. LICENSEE: Redlands Historical Museum Association Attn: President P.O. Box 470 Redlands, CA 92373 info@redlandshistoricalmuseum.org 909-798-7632 A. City shall have the right to terminate this License for cause in accordance with this Section 13 and subject to the default and cure provisions of Section 14. For purposes of this Agreement, "cause" shall be defined as the following: RHMA License Agreement.bm.04.16.26.FY2526-155 (i) Licensee allows, promotes, causes, tolerates or facilitates any activity, conduct or circumstance that occurs on or at the Premises, whether caused by Licensee, its volunteers or invitees or Licensee's use of the Premises, that: (a) Violates any provision of the Redlands Municipal Code or Ordinance or that violates state or federal law; (b) Creates an unsafe or unhealthy condition or environment for occupants of the Property or surrounding landowners or the public as determined by the City; (c) Produces excessive noise, noxious odors, smoke, or bright lights that unreasonably interfere with neighboring residents' quality of life as determined by the City; (d) Creates or facilitates improper parking/overburdens parking in the neighboring area, or other negative impacts to the surrounding neighboring properties or public spaces; (e) Causes more than three (3) calls for service in a calendar month from the Redlands Police Department and/or Redlands Fire Department; (f) Creates a public or private "nuisance" as that tern is defined in California Civil Code Section 3479 and as amended. (g) Is detrimental or harmful to the public or surrounding landowners as determined by the City. (ii) Failing to use all net revenues earned from use of the Premises pursuant to this License for the benefit of the Property in accordance with the terms of the Real Estate Transfer Agreement approved on June 17, 2025. (iii) Failing to comply with the audit provisions contained in the Real Estate Transfer Agreement approved on June 17, 2025. (iv) Failing to use reasonable efforts to utilize the Premises continuously and in a commercially reasonable manner in order to maximize the potential financial benefit to the Property. (v) Failure to maintain an adequate number of volunteers or failure to fund a City contractor to operate the store area and/or event pavilion to the satisfaction of the City. (vi) Licensee fails to comply with any of the other terms of this Licensee. B. City has the right to terminate this License without complying with the default and cure provision of Section 14 in the following circumstances: (i) The City Council takes action to temporarily close the Property or the Premises for events beyond the City's reasonable control including but not limited to: acts of nature or of the public enemy; war; acts or orders of the State or Federal government; fires; floods; tidal waves; epidemics; quarantine restrictions; earthquakes; unusually severe weather; strikes, layoffs, or other substantial interruption of work because of labor disputes. Should the Property or Premises remain closed longer than one hundred eighty (180) days, the City may terminate RHMA License Agreement,bm.64.16.26.FY2526-155 this License without liability by providing thirty (30) days prior written notice to Licensee. (ii) The City Council takes action to temporarily close the Property or the Premises due to a federal, state or local declaration of emergency. Should the Property or Premises remain closed longer than one hundred eighty (180) days, the City may terminate this License without liability by providing thirty (30) days' prior written notice to Licensee. (iii) The City Council declares a fiscal emergency or otherwise does not appropriate or otherwise budget available funds to open and operate the Property or the Premises in any fiscal year, City may terminate this License by providing thirty (30) days' prior written notice to Licensee. (iv) The Property is transferred by the City either by sale, exchange, lease, assignment or any other form of transfer by the City of the Property. This License shall terminate immediately upon the effective date of such transfer of the Property. (v) The Property or the Premises are determined to be uninhabitable by the Redlands Building Official or Redlands Fire Marshal. City may terminate this License by providing five (5) days' prior written notice to Licensee. (vi) Either party becomes insolvent or commences proceedings in bankruptcy court or enters receivership or liquidation. City may terminate this License by providing thirty (30) days' prior written notice to Licensee. (vii) The City commences proceedings to disincorporate or if proceedings are commenced to dissolve Licensee's nonprofit corporate status. City may terminate this License by providing thirty (30) days' prior written notice to Licensee. C. Licensee may terminate this License at any time upon providing six (6) months' prior written notice to the City. Section 14. Default and Cure by Licensee. A. In the event City asserts that this License is subject to termination in accordance with Section 13.A, City shall provide Licensee with forty-five (45) days prior written notice of any intention to terminate this License and Licensee shall have the opportunity to cure any breach within said forty-five (45) day period to the satisfaction of the City. In the event that the breach is cured, then the License shall not be subject to termination. B. Failure of Licensee to cure any breach of this License to the satisfaction of the City and within the time period set forth in the written notice of breach may result in termination for cause by City. City shall have no liability for any claims or damages resulting to Licensee as a result of any exercise by City of its right to terminate this License. RHMA License Agreement.bm.04.16.26.FY2526-155 Section 15. Anti -Discrimination. During the performance of this License, Licensee shall not unlawfully discriminate against any person because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, reproductive health decision -making, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status pursuant to State and Federal law. Section 16. Entire Agreement. This License constitutes the entire agreement between the Parties with respect to the subject matter hereof. Any prior verbal or written representations or agreements respecting the Premises not expressly set forth herein are mull and void. Section 17. Amendment; Waiver. No term or provision of this License may be amended, altered, modified, or waived orally or by course of conduct, but only by an instrument in writing signed by a duly authorized officer or representative of each Party. No waiver by either Party of any provision of this License, or waiver of any breach of this License, shall be deemed to be a waiver of any other provision of this License, or of any subsequent breach by either Party of the same or any other provision of this License. The City Manager shall resolve any conflicts between the parties regarding interpretation of this License which decision shall be final. Section 18. Governing Law; Venue. This License is to be governed by and construed in accordance with the laws of the State of California, without regard to the principles of conflicts of laws. Any action by a party to this Agreement to enforce or interpret the terms hereof shall be maintained in the courts in San Bernardino County. Prior to the filing of any action, the parties shall attempt an informal resolution of the dispute by either meeting and conferring to discuss a resolution to the dispute or by initiating a mediation with each party paying half of such costs. Section 19. Relationship. The Parties intend by this License to establish the relationship of licensor and licensee only and do not intend to create a partnership, joint venture, joint enterprise, or any business relationship other than that of licensor and licensee. Section 20. Authority. Licensee hereby represents and warrants to City that it is (a) a duly organized and validly existing nonprofit public benefit corporation, formed and in good standing under the laws of the State of California; (b) has the power and authority and the legal right to conduct the business in which it is currently engaged; and (c) has all requisite power and authority and the legal right to consummate the transactions contemplated in this License. Licensee hereby further represents and warrants that this License has been duly authorized, and when executed by the signatory or signatories listed below, shall constitute a valid agreement binding on Licensee in accordance with the terms hereof. Section. 21. Counterparts. This License Agreement may be executed in counterparts, each of which is an original but all of which together constitute but one and the same instrument. Section 22. Severability. If any particular provision of this License is held invalid or unenforceable for any reason by a court of competent jurisdiction, this License shall otherwise remain in full force and effect and shall be construed in all respects as if such invalid or unenforceable provision was omitted. 9 RHMA License Agreement.bm.04.16.26.FY2526-155 Executed on the 2 1 " day of April, 2026, at Redlands, California CITY OF REDLANDS Mario Saucedo, Mayor ATTEST: e Donaldson, City Clerk 10 REDLANDS HISTORICAL MUSEUM ASSOCIATION Charlotte Burgess, President RHMA License Agreement.bm.04.16.26.FY2526-155 EXHIBIT A MUSEUM SITE PLAN :� ..c..,w �I,�`f `�°�,,� ��'-'mac-a + �ti � "� ; I �. ����"� �' •_ ; L, L�Jr —'. . •. .•„� e i re PARKINGSPACE54212b1�It1`[i 17 TT I 1 i _ _ � 1 i T a7rlarc�.cnaN � } i -�I — �m SITE PrPN a �.-:... A1.10 � ------------------ ---- — ---- ---' ----------`--- = ---------- - ----------- ems::__ .� ,r.. II RHMA License Agreement.bm.04.16.26.FY2526-155 EXHIBIT B STORE AREA PLAN --———— — —- �-- I r I USEUM 1 075 � I � - I i I •t PTiory I DfsK I I I I LOBBY I I I I I I I 12 Lobby area shall be available for RHMA use during non-public hours RHMA License Agree ment.bm.04.16.26.FY2526-155 EXHIBIT C EVENT PAVILION PLAN r I �_i. JII —_—_ ——— — — — -- ---— —————— —————— — — — — — —I!.-- —I y$�_ I _ VETs e w � SEATS TOTAL.,aa BANOVET SEATS - I_ I a 1 _ - STAIR z " 62B 1 - CORRIOOA ow -• COpRIWR EVENT PAVIUCVIi . _ I a I � �-_ NISEI RESTRO N Elor - 1 W �]I • ' I I EVENTS PAVASON 1 i� � 1 ' ' 1 - E:V EATS MAIN ROOM EiD1' _ —_ E-E u 9 PAViL10N - - EYfNT3 PAVILI N PROOpR %ITCNEN PAVILION I. SEATS STEI0.T,E LF,Q1. I I I 1 I I I I eI I DISPLAY I � ,PAVilBON 1 I + EIS I 1 1 I I I I I I I I L________________________________________.,,—__.—_—__.J na..+uas � Y q 13 IT RHMA License Agreement. 5m.04.16.26.FY2526-155 EXHIBIT B WORKERS' COMPENSATION INSURANCE CERTIFICATION Every employer, except the State, shall secure the payment of compensation in one or more of the following ways: (a) By being insured against liability to pay compensation by one or more insurers duly authorized to write compensation insurance in this State. (b) By securing from the Director of Industrial Relations, a certificate of consent to self - insure, either as an individual employer, or as one employer in a group of employers, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to self -insure and to pay any compensation that may become due to his or her employees. CHECK ONE ZI am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers' Compensation or to undertake self- insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work and activities required or permitted under this Agreement. (Labor Code §1861). I affirm that at all times, in performing the work and activities required or permitted under this Agreement, I shall not employ any person in any manner such that I become subject to the workers' compensation laws of California. However, at any time, if I employ any person such that I become subject to the workers' compensation laws of California, immediately I shall provide the City with a certificate of consent to self -insure, or a certification of workers' compensation insurance. I certify under penalty of perjury under the laws of the State of California that the information and representations made in this certificate are true and correct. REDLANDS HISTORICAL MUSEUM ASSOCIATION Date: % �o Phillip Doolittle, Treasurer