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LEASE 2015 N. JEFF CO PUBLIC LIBRARY - MT CITY (VOID)THIS LEASE HAS BEEN REPLACED--LESSOR SHOULD HAVE BEEN MONTANA CITY PROPERTIES, INC NOT HHR LEASE This Lease("Lease")made this fast day of January, 2015, between IIM LLP, PMB 2249,No. 1, Jackson Creek Rd,Montana City, MT 59634, "Lessor", and Jefferson County Library, Lessee, of North Jefferson County Public Library District Board of Trustees, 3 North Main Street, Clancy, MT 59634. 1. Description of Premises. Lessor leases to Lessee the premises located in the Montana City Store building know as the Montana City Store Front, consisting of 900 square feet and more specifically depicted on Exhibit"A" attached hereto. In addition, Lessee will have the use of square feet of storage space in the basement directly below the leased space. Lessee shall have use of the restrooms located in the Montana City Store during normal business hours. Lessee may schedule the conference room of the Elkhorn Mountain Inn or the Courtyard. Schedule of those areas shall be done through the manager of the Montana City Store. Lessee understands that the conference room and Courtyard are scheduled on a first come basis. 2. Purpose. Lessee shall use the Premises for the exclusive purpose of providing library services, or other activities specifically approved in writing by the Lessor. 3. Restrictions on Use. Lessee shall not conduct any activity that is unlawful, ultra-hazardous, or that would increase the premiums for liability insurance on the Premises. Lessee shall not store any hazardous materials on the Premises. All advertising material that is to be affixed to the exterior portions of - 1 - the building by Lessee shall conform to local ordinance and first be submitted in writing to Lessor for approval prior to installation. All materials installed shall be removed by Lessee on surrender of the Premises. Lessee shall not offer for sale any products comparable to those sold at the Montana City Store. Lessee will operate so as not to interfere with the operation of the neighboring business, the Elkhorn Mountain Inn. Lessee employees will not use parking located in the front of the building provided for the Montana City Store,but will use parking on the South side of the building provided for the Elkhorn Mountain Inn or the parking provided at the rear of the building. Clients of the library may park in front of the building. 4. Reservations by Lessor. Lessor shall have the right to enter the Premises to inspect the Premises and make repairs, alterations, or modifications as required. 5. Term of Lease. The term of the Lease shall be for a period of twelve months, commencing January 1, 2015 through December 31, 2015. Possession - -- - — - shall-be-Srantcd- mfg Lease. 6. Holdover. Any holding over of this lease after the expiration of the initial term or extension thereto shall be a month to month tenancy and not a period of years. 7. Rental. The rental for the leased space shall be Four Hundred Dollars ($400.00) per month payable in advance for the first six months of the lease and Five Hundred Dollars($500)thereafter. Lesee shall provide a security -2- deposit in the amount of Four Hundred Dollars ($400.00)which shall be returned at the termination of the lease if there is no damage to the leased space. 8. Utility Charges. Lessee shall be responsible for paying charges for heat, gas, electricity, or any other utility used on or consumed in the Premises. Lessee shall be allowed to dispose of garbage in the Montana City Store dumpster without additional charges. 9. Assignment and Sublease. Lessee shall not assign this Lease or sublet the Premises to another party without the express written approval of Lessor. 10. Repairs, Alterations, and Modifications. Lessee shall be responsible for all repairs required as a result of the negligent acts of Lessee or its agents. Lessee will carry out normal maintenance of the Premises. Structural repair or repair of heating or air conditioning units or permanent electrical system(s), shall be paid by Lessor. Lessee may, at its expense, alter or modify the Premises to suit its needs, provided that written consent of Lessor has fast been obtained. Lessee is responsible for all routine cleaning and maintenance. Lessor will be responsible for snow removal in the parking areas and the front side walk, while the Lessee will be responsible for snow removal on the walking areas in the back of the building. 11. Liability Insurance. Lessee shall furnish liability insurance obtained through Jefferson County under its Montana.Association of Counties (MACo) policies as determined by MACo. The amount recommended by the Lessor is -3- Three Hundred Thousand and no/100 Dollars ($300,000.00) for any injury, accident, occurrence, or property damage. Lessee will provide to Lessor a Certificate of Insurance naming Lessor as Additional Insured or such other comparable documentation as MACo provides to satisfy this provision. Lessee will provide to Lessor 30 days written notice upon cancellation of Insurance. 12 Events Triggering Breach or Default. The following events shall constitute breach of this Lease-for which Lessee shall be considered in default: (a) Lessee or any guarantor of this Lease becomes bankrupt or insolvent, or files a petition for bankruptcy or insolvency or for reorganization under any bankruptcy act, or for appointment of a receiver or trustee of all or a portion of Lessee's property. (b) Involuntary proceedings are instituted against Lessee under any bankruptcy act; (c) Lessee makes an assignment for the benefit of creditors. (d) Lessee abandons the Premises or suffers this Lease to be taken under any writ of execution. (e)Lessee-fails to pay any-rent when due-and-does not makethe-- delinquent payment within 15 days after receipt of notice of delinquency from Lessor. (f)Lessee fails to perform or comply with any of the covenants or conditions of this Lease for 15 days after receiving notice of the failure from Lessor. 13. Indemnification by Lessee. Lessee shall indemnify Lessor and save it harmless from and against any and all claims, actions, damages, liability, and expenses in connection with loss of life, personal injury, and/or damage to -4- property arising from or out of any occurrence in, upon, or at the Premises, or the occupancy or use by Lessee of the Premises or any part thereof, or occasioned wholly or in part by any act or omission of Lessee, Lessee's agents, contractors, employees, servants, Lessees, or concessionaires. 14. Attorney's Fees. If during the term of this Lease either Lessor or Lessee shall institute any action or proceeding against the other relating to the provisions of this Lease, or any default under this Lease, the unsuccessful party shall reimburse the successful party for the reasonable expenses of such action including reasonable attorney's fees and disbursements incurred by the successful pay NOW THEREFORE, the parties have affixed their signatures on the day first written above. HHR, Inc. North JeffCo Public Library District By: fpzi By: , (GC�yn/yp Partner Board f Trustees Chairman i'L/84 f "Lessor" "Lessee" _5 _