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<br />3. Use. The Prelnises shall be used by Lessee to pern1it Lessee to maintain a <br />representative Inodel railroad in 1/8ih scale; to constnlct a garden railroad for public <br />viewing; to operate in a first class n1anner a historical railroad museun1 containing an <br />attractive rotating display of railroad n1elllorabilia which shall be modified or upgraded at <br />least once a year, open to the public; and to provide the model railroad exhibit an average <br />of eight (8) hours per week. <br /> <br />Under no circUlnstances may alcoholic beverages be kept, distributed, or <br />consumed on the Pren1ises nor may any storage of iten1s of any nature take place outside <br />the building. <br /> <br />4. Assignment and Subletting. This lease shall not be assigned or transferred, nor <br />shall Lessee have the right to sublet the Premises or any part thereof without the consent <br />in writing of the City Council, evidenced by a resolution thereof duly adopted for said <br />purpose. <br /> <br />5. Taxes. Lessee agrees to pay all lawful real and personal property taxes and <br />assessments levied by the State, County, City or other tax or assessment levying bodies, <br />upon any and all real and personal propeliy or propeliy interest it has or may have in the <br />premises described herein and any goods, wares, lnerchandise, equipment and other <br />materials stored or kept therein. This paragraph is not intended to affect Lessee's <br />nonprofit tax exempt status and will apply only in the event Lessee undertakes activities <br />which create tax liabilities in spite of Lessee's nonprofit tax exempt status. <br /> <br />6. Repairs. Lessee shall, at no cost to City and without any liability to City, <br />lnaintain the Premises in good order and safe, sanitary and clean condition, and first class <br />appearance. Lessee shall provide City with a 24 hour contact telephone number for <br />immediate repairs and other emergencies. <br /> <br />7. Liens. Lessee agrees to pay for all labor done or materials furnished in <br />restoration, construction, repair, replacelnent, or improvements of the Premises by <br />Lessee, and to keep the Premises and ilnproven1ents and Lessee's possessory interest <br />therein free and clear of any lien or encumbrance of any kind whatsoever created by <br />Lessee's act or omission. <br /> <br />8. Hold Harmless. Lessee agrees to save and hold harmless the City, its officers <br />employees and volunteers and to inden1nify it or then1 against all claims of any nature <br />whatsoever from or by reason of any act or omission, negligent or otherwise, on the part <br />of Lessee, its agent, en1ployees and volunteers arising out of the use and n1aintenance of <br />the Premises and the improven1ents thereon. <br /> <br />9. Insurance. Until further notice Lessee shaIllnaintain in force an insurance <br />policy, or policies, which will insure and indemnify City against liability or financial loss <br />resulting from injury occurring to persons in or about the Premises in an amount not less <br />than One Million Dollars ($1,000,000) con1bined single limit applying to bodily and <br />nprsnnfll inillrv f1nn nrnnprtv nflmflPP This f1lllnllllt lll::lV np inrTP::lSpn ::J rp::lsnn::Jnlp <br />r-------- --J---./ _u_~ r--r---./ --.----0-- -.-.- _.u_.u_. _u_./ -- ...-.----- - .----..-~.~ <br /> <br />Page 2 of 5 <br />San Leandro Historical Railway Society Lease <br />831625-2 <br /> <br />July 2006 <br />