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FARM LEASE . . . I THIS INDENTURE is made th1s /day of October, 1990, by and between the CITY OF MOSCOW, a municipal corporation, hereinafter referred to as 'CITY' and BETTER LIVING, INC. , hereinafter referred to as 'LESSEE'; WITNESSETH: THAT IN CONSIDERATION OF THE RENTS, COVENANTS AND CONDITIONS HEREINAFTER CONTAINED, THE PARTIES AGREE AS FOLLOWS: 1. CITY does hereby lease, demise and let unto LESSEE, subject to the terms and conditions hereinafter set forth, the land owned by CITY described herein. The relationship between the CITY and the LESSEE is solely that of landlord and tenant. 2 . The property which is the subject of this lease is described as follows: The northeast quarter of the northwest quarter (less highway and property north of highway): 40. 32 acres in Government Lot 1; 40.2 9 acres in Government Lot 2 ; and the Southeast Quarter of the Northwest Quarter; Section 18, Township 40 North, Range 5 West B. M. , Latah County, Idaho. 3. TERM. This lease shall commence on October 1, 1990 and shall expire on September 30, 1991, unless replaced by a new lease at an earlier time. 4. RENT. As rental for the use of said premises, LESSEE shall pay CITY the total sum of 000. 00 to be paid as follows: 000. 00 on or before January 1, 1991; 000. 00 on or before June 1, 1991; and 000. 00 on or before September 15, 1991. All rents due shall be a lien on the crop on behalf of the CITY. It is understood by the parties that while the rent is based on the arable, currently farmed acreage, it is the intent of the lease to permit LESSEE to perform maintenance on the other non-cultivated acreage as well. ---PAGE BREAK--- LEASE; Page 2 5. LESSEE'S COVENANTS. A. LESSEE will furnish at their own cost and expense, all proper and convenient tools, utensils, farm implements, machinery, seed, and chemicals to carry on and cultivate said farm during said term and to furnish and provide all proper assistance and hired help necessary to complete the cultivation and farming of said cultivated real property. B. LESSEE will not suffer any liens or encumbrances to be created on CITY'S premises. C. LESSEE will crop and cultivate said real property and harvest, thresh and secure the crops gown thereon in good and skillful manner and will not commit nor permit any strip or waste of the premises, nor use, nor permit the same to be used, for any unlawful or objectionable purpose. D. LESSEE will do and perform all proper and ordinary work and labor and will give all the care and skill requisite, usual and necessary to work and crop said real property in a proper manner and style and to the best interests of CITY. E. The CITY retains the right to harvest to its own benefit all harvestable timber on the premises. F. LESSEE will indemnify and hold harmless the CITY from any and all loss or damage arising from LESSEE's operation of said premises, or its appurtenances or appliances. G. LESSEE shall, at their own expense, furnish all the labor and equipment necessary to be used in applying fertilizer and chemicals, including noxious weed chemicals. LESSEE shall keep the premises reasonably free of weeds. H. LESSEE shall not have the right to assign their interest in this lease. J. LESSEE shall take all action necessary to maintain the Federal crop allotment for this property. ---PAGE BREAK--- LEASE; Page 3 5. CITY'S COVENANTS. A. That if LESSEE pays the rent herein agreed to be paid, and upon observing, performing and keeping all and singular the covenants, conditions, and agreements contained herein on LESSEE's part to be performed and kept, LESSEE shall and may lawfully, peacefully and quietly have, hold, use, occupy, possess and enjoy said premises hereby leased, with the appurtenances and every part and parcel thereof, for and during the said term without any suit, hindrance or interruption of or by CITY or of or by any person lawfully claiming by, from and under CITY. B. CITY shall at all times pay all real property taxes and assessments lawfully levied and assessed upon said real property throughout the term of this lease. 6. MUTUAL COVENANTS. A. Any notice required to be given hereunder shall be given as follows: To CITY: City of Moscow, City Hall, 12 2 East Fourth Street, Moscow, Idaho 83843. To LESSEE: Better Living, Inc. , cjo Pres. Loreca Stauber, Rt. 1 Box 54, Genesee, ID 83832 . B. In any suit or action brought to enforce any of the covenants of this agreement, the successful party shall be entitled, as a part of the judgment rendered, to a reasonable attorney's fee in addition to costs allowed by law. C. This lease shall be binding upon the successors and assigns of the parties hereto. 7. LESSEES may, within the 12 month period, submit to CITY proposed programs of development and utilization for the subject property. These short and long term plans shall provide for management and development of the premises. These plans may provide for maintenance of the cultivated land, construction and maintenance of buildings and other improvements, management of the forested land, a tree management plan, and changes of ---PAGE BREAK--- LEASE; Page 4 present land use. 8. RENEWAL. A. The parties may, after submittal of the plans acceptable to the Council, mutually agree to amend the current lease, renew the lease, or enter into a new lease at any time for any term. B. Nothing shall prevent the parties from entering into subordinate written agreements relating to the management or development of the premises for the current term of this agreement. c. LESSEE may request credit against rent for future years for the value of certain permanent improvements constructed on the subject property. Such improvements may include, but are not limited to, the construction and/or remodeling of buildings and conservation improvements. To receive this credit, the project and dollar amount of the credit must be approved by CITY prior to construction of the improvement. To receive this credit there must be a showing that the improvement would provide benefit to the youth of the city. Such a grant is totally discretionary on the part of the city Council. 9. TERMINATION OF CONTRACT. In the event of the dissolution, bankruptcy or other failure of either CITY or LESSEE, this lease shall be of no further force and effect upon the receipt by either party of actual written or other constructive notice of said dissolution, bankruptcy or other failure. 10. TIME IS OF THE ESSENCE; DEFAULT. Time and the strict performance of all the terms, conditions and covenants of this lease are of the essence, and upon failure of LESSEE to strictly observe any of the conditions expressly required by LESSEE to be observed, CITY may declare this lease terminated at its option and may thereupon, at once, after 30 days written notice to LESSEE specifying wherein LESSEE is in default, and such default not having been cured within said 30 days period, enter upon and take possession of all of the said real property, and the appurtenances thereto belonging, and dispose LESSEE therefrom, without in any manner being held liable for ---PAGE BREAK--- damages or considered a trespasser; but nothing herein contained shall be construed as depriving CITY or its assigns of any right or remedy which they would otherwise have at law or equity for damages or to regain possession of said property. 11. ENTRY. The CITY reserves the right to enter upon the premises to observe LESSEE's activities at any time, without notice. LESSEE shall provide the CITY with keys to all locks established on the premises. The CITY will reimburse LESSEE should any damages to crops be occasioned by such entry. IN WITNESS WHEREOF, the CITY, by and through its Mayor and city Clerk and LESSEE, by and through its President and Secretary have executed this lease the day and year written in their respective acknowledgs. Secretary Better Living, Inc. c? .:23 Paul c. Agid1/ Mayor City of Moscow ATTEST: LEASE; Page 5 ---PAGE BREAK--- STATE OF IDAHO ss County of Latah On this 2nd day of October , 1990, before me, the undersigned, a Notary Public in and for the State of Idaho, personally appeared LORECA STAUBER, President and Pauli Owens , Secretary of Better Living, Inc., a non-profit, tax-exempt corporation, known or identified to me to be the persons whose names are subscribed to the above and foregoing instrument, and acknowledged to me that they executed the same in their corporate capacities. IN WITNESS WHEREOF, I have hereunto set my hand and notarial seal the date last above written. STATE OF IDAHO County of Latah ) ) ss ) Notary Public Idaho Residing at Commission Expires: 2/24/93 On this ?4 day of , 1990, before me, the undersigned, a Notary Public in and for the state of Idaho, personally appeared Paul c. Agidius, Mayor, and Elaine Russell, City Clerk, known or identified to me to be the persons whose names are subscribed to the above and foregoing instrument, and acknowledged to me that they executed the same in their official capacity. IN WITNESS WHEREOF, I have hereunto set my hand and notarial seal the date last above written. LEASE; Page 6 at? Notar i> Ublic f tate o idaho Residing at 222 Commission Expires: