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LEASE - 2016 BOULDER RIVER/ELKHORN-HADLEY PARK GRAZING ASSOCIATION LEASE This Lease is between Jefferson County, a political subdivision of the State of Montana, acting through its Board of County Commissioners (Jefferson County), and the Boulder River/Elkhorn-Hadley Park Grazing Association acting by and through its authorized agent (Hadley Park). In consideration of the mutual covenants contained in this Lease and for other valuable consideration, Jefferson County agrees to lease to Hadley Park the real property described below under the following terms and conditions: 1. Leased Premises - Jefferson County hereby leases to Hadley Park the real property owned by Jefferson County and more particularly described as: JH Evans Addition to the Town of Boulder, a portion parcel 2, excluding in their entirety lots 11, 12, 13 and 14 and containing approximately 2.5 acres in the N.E. Y< of Section 32, T6N, R3W; All as shown on Certificate of Survey No. 168913 (Folio 437-B) in the Office of the Clerk and Recorder of Jefferson County, Montana, which certificate of survey delineates the areas subject to this Lease and those areas retained by Jefferson County for its Road Department shop facilities; RESERVING UNTO Grantor all existing access roads, rights-of-way, and other areas presently used or useful for access, ingress and egress, and used or useful for providing water, electricity, telephone, natural gas, and other utilities. 2. Lease Term - The term of this Lease is for ten (10)years. The Lease commences on January 26, 2016 and terminates at midnight on January 25, 2026. Not less than thirty days prior to the end of the lease term, Hadley-Park may seek to have the Lease renewed or extended. Any renewal or extension of the Lease, together with the terms and conditions of renewal, must be agreed to by Jefferson County. Provided however,this Lease shall sooner terminate if (a) Hadley Park ceases to use the premises for the purposes specified herein; (b) Hadley Park provides Jefferson County with sixty(60) days prior notice prior to the date of its termination of the lease. The notice must be in writing; Lease-Page 1 (c) Hadley Park fails to timely pay the annual lease payment or breaches any other provision of this Lease; or (d) Hadley Park uses any portion of the leased premises for any unlawful activity. 3. Annual Lease Payment - Hadley Park shall pay to Jefferson County the sum of one dollar($1.00) per year to lease the property described in this Lease. In accordance with past practice, Jefferson County will provide an invoice to Hadley Park for the full ten year lease obligation; ten dollars ($10.00). Hadley Park will promptly pay the lease payment upon receipt of the invoice. 4. Use - Hadley Park shall use the leased premises for the construction and use of corrals with a certified seal. In addition, the Hadley Park may use the leased premises for any other lawful public gathering, meeting, or activity. All such uses and activities shall be subject to licensing, subleasing, supervision, or direction by Jefferson County and its agents. 5. Leased Premises Improvements/Alterations - Hadley Park is permitted to make improvements to the leased premises. Improvements may be made by Hadley Park's agents, employees, and contractors. Minor structural alterations, remodeling, or improvements necessary to make the premises conform to the requirements of law do not need the prior written consent of Jefferson County. Other structural alterations,remodeling, and additions which are of a substantial and permanent nature maybe made only with the prior written authorization of Jefferson County. Such authorization shall not be unreasonably withheld. At the termination of this Lease, should Hadley Park not renew the Lease, it shall have the option to remove or dispose of non-permanent improvements. Such removal or disposal must be completed within sixty(60) days of the termination of this Lease. Lease - Page 2 Any permanent improvements placed upon the leased premises which cannot be removed without substantial damage to the leased premises, shall not be removed by Hadley Park at the termination of this Lease or any extension of this Lease. Any permanent improvement shall remain on the leased premises and be deemed to be the property of Jefferson County. However, should another person become the lessee of the premises, such person shall pay Hadley Park for the reasonable value of the improvements when the new lessee takes possession of the premises as is contemplated by Mont. Code Ann. § 7-8-2509. 6. Cost of Improvements/Alterations - The cost of all improvements, structural alterations, remodeling, changes, additions and repairs shall be paid by Hadley Park. Jefferson County is not responsible for any such costs. Hadley Park shall not permit a lien for the costs of any improvements or alterations to attach to the leased premises. 7. Utilities - All utilities (water, sewer, electricity, natural gas, telephone, etc.) provided to the leased premises shall be paid for by Hadley Park. 8. Warranties - Jefferson County covenants and warrants it has the full right and authority to grant this Lease. Hadley Park covenants and warrants it has the full right and authority to execute this Lease and to perform all of its terms and conditions. Jefferson County makes no warranties regarding: the condition of the leased premise; the leased premises' fitness for a particular use; whether the leased premises are in a safe or healthful condition; or, whether the leased premises meet applicable governmental statutes or regulations pertaining to public safety or health. 9. Jefferson County's Access to Leased Premises - Jefferson County's agents and representatives may enter upon and inspect the leasehold premises at any time for the purpose of Lease-Page 3 determining compliance with the provisions of this Lease and for the purpose of taking steps to protect the premises from imminent or ongoing damage or harm. 10. Insurance - During the term of this Lease, Hadley Park shall, at its expense, maintain a general comprehensive public liability insurance policy insuring Hadley Park against any and all liability for personal injury and injury or damage to property and which arises out of its use, occupancy, or maintenance of the leased premises. The minimum limits of liability for such insurance coverage shall not be less than one million dollars ($1,000,000.00) per occurrence. Jefferson County shall be named as an additional insured on the policy. Hadley Park shall supply certificates of insurance evidencing such coverage to Jefferson County within ten (10) days of execution of this Lease. Hadley Park may satisfy its insurance obligations by acquiring coverage within its "blanket' policy or policies of insurance, by appropriate amendment, rider, endorsement or other means. Hadley Park shall also, at its expense, maintain insurance coverage in a sufficient amount to cover losses by fire, vandalism, or other casualty for all improvements, alterations, additions, and fixtures placed upon the premises and constituting a permanent part thereof. Jefferson County shall be named as an additional insured. Insurance coverage for loss by fire, vandalism or other casualty for non-permanent improvements to the leased premises or for any personal property located upon the leased premises, shall be the sole responsibility of Hadley Park. 11. Indemnification - Except as may be otherwise provided in this lease, Hadley Park agrees to defend, indemnify, and hold harmless Jefferson County from any and all claims, demands, or actions, and any damages resulting therefrom, which arise out of or are a result of the performance of this Lease. Provided however, any such claim, demand or action must arise Lease-Page 4 out of the negligent act, error, or omission of Hadley Park, its agents, employees, or subcontractors. Except as may otherwise be provided for in this Lease, Jefferson County agrees to defend, indemnify, and hold harmless the Hadley Park from any and all claims, demands, or actions, and any damages resulting therefrom, which arise out of or are a result of the performance of this Lease. Provided however, any such claim, demand or action must arise out of the negligent act, error, or omission of the Jefferson County, its agents, employees or subcontractors. 12. Quiet Enjoyment- Jefferson County expressly agrees Hadley Park shall, at all times during the tern of this Lease, peacefully and quietly have, hold, use, occupy, possess and enjoy all rights and benefits granted by this Lease without suit, eviction or disturbance by Jefferson County, its agents or assigns. 13. Notice - Any notice required by this Lease is to be made by mailing the notice via Certified United States Mail,return receipt to: Board of County Commissioners Jefferson County, Montana PO Box H Boulder, MT 59632 14. Assignment - Hadley Park shall not assign this Lease without the prior written approval of Jefferson County. Jefferson County reserves the right to deny approval of any assignment for any reason it deems appropriate. Hadley Park shall be permitted to sublease the leased premises, in whole or in part, and may allow other persons and organizations to use the leased premises by permission or permit, without approval of Jefferson County. In no event however, shall Jefferson County be liable for any damage or injury caused by any such person or Lease-Page 5 organization who subleases the leased premises (in whole or in part). Jefferson County is further not liable to any other person or organization, or their property, whether on the leased premises as a guest, invitee, or otherwise, and Hadley Park shall hold harmless and indemnify Jefferson County against any claim, cost, demand, damage or liability arising out of the same. 15. Waiver - Failure of either party to enforce any provision of this Lease shall in no way constitute a waiver of such provision. Nor shall such conduct affect the validity of this Lease, any part thereof, or the right of either Party to enforce each and every provision of this Lease. 16. Modification - Any communications (written or spoken) shall not be deemed to modify, extend, or renew this Lease unless such communications are reduced to writing, signed by the authorized representative of each Party, and appended to this Lease. Should either Party seek modification of this Lease during its tern, that Party shall communicate to the other Party, in writing, regarding the specifics of the modification(s) sought. If the requested modification is agreed to, it shall be reduced to writing, be signed by the authorized representative of each Party, and be appended to this Lease. 17. Disputes - This Lease shall be governed by the laws of the State of Montana. Venue for any dispute shall be the Montana Fifth Judicial District Court, Jefferson County. In Witness Whereof Jefferson County, Montana and Boulder River/Elkhorn-Hadley Park Grazing Association have executed this Lease on the day and year first above written. Jefferson County, Montana n Bob Mullen, Chair Lease-Page 6 Wd�� eonard Wortman, Commissioner Cory Kirsch, Commissioner Boulder River/Elkhorn-Hadley Park Grazing Association By: Ed McCauley Its: Authorized Agd/nt ATTEST: Bonnie Ramey Jefferson County Clerk and Recorder (SEAL) Lease-Page 7 JEFFERSON COUNTY TREASURER'S OFFICE TERRI KUNZ, TREASURER PO BOX H BOULDER MT 59632 Cash Receipt: Printed 15:31:57- 04/19/16 Operator: Paulette Posted: 04/19/16 Batch: 11502 Transaction: 13 Receipted: 04/19/16 03:31:56 PM Description Total Name: Ed Mccauley S-,TE OF MONTT-�A ?ANTS & LEAS-.S 10.10 i Fund 1000 Acct 361000 CASH $10.00 ED MCCAULEY Check # Cash Paid 10.00 Credit Paid Less Change Given TOTAL: 10.00