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4. TERM. The term of this Agreement (the "Term ") shall commence on the <br /> Effective Date, and unless sooner terminated pursuant to the provisions hereof, shall expire on <br /> the fifth (5 anniversary of the Effective Date. There may be one (I) additional five (5) year <br /> term extension ( "Extension "). Six (6) months prior to the end of the Term, the Lessee must give <br /> the City written notice of the intent to exercise this Extension. <br /> 5. RENT. The Lessee shall pay to the City rent for the Premises ( "Rent ") in the <br /> amount of One Hundred Dollars ($100) per year. Rent for the entire initial five -year term shall <br /> be due and payable in advance on the Effective Date to the City at the address shown in Section <br /> 17 or such other place as the City may designate in writing. <br /> 6. USE. It is agreed that the Premises shall be used primarily as a community <br /> service office, promoting the aforesaid aims and principles of the Lessee. Under no <br /> circumstances may alcoholic beverages be kept, distributed, or consumed on the Premises. The <br /> Premises shall be used in compliance with relevant local, state, and federal laws and regulations <br /> and for no other purpose without the prior written consent of the City. The Lessee shall not <br /> encroach on the public right of way adjacent to the Premises or on the portions of the property <br /> located at 401 Marina Boulevard that are not part of the Premises. <br /> 7. LESSEE'S COVENANTS. The Lessee covenants that it is in good standing and <br /> a 50I(c)(3) nonprofit organization. <br /> 8. TAXES. The Lessee agrees to pay all lawful real and personal property taxes and <br /> assessments levied by the State, County, the City or other tax or assessment levying bodies, upon <br /> any and all real and personal property or property interest it has or may have in the Premises <br /> described herein and any goods, wares, merchandise, equipment and other materials stored or <br /> kept therein. This Section is not intended to affect the Lessee's nonprofit tax exempt status and <br /> will apply only in the event the Lessee undertakes activities which create tax liabilities in spite of <br /> the Lessee's nonprofit tax exempt status. <br /> 9. MAINTENANCE AND REPAIRS. The Lessee shall at its sole cost and expense, <br /> and without any liability to the City, maintain the Premises and Improvements in good order and <br /> safe, sanitary and clean condition, reasonable wear and tear excluded. The Lessee shall operate, <br /> maintain and manage the Premises (including all landscaping and Improvements thereon) in <br /> good order and repair and in neat, clean sanitary and safe condition in compliance with all local, <br /> state and federal laws, statutes and regulations relating to the use, occupancy or operation of the <br /> Premises. The Lessee is required to maintain (at its sole expense) including, but not limited to: <br /> interior and exterior paint and carpet, all electrical conduit, wiring, etc., smoke alarms, public <br /> restrooms, roof, gutters, and HVAC (as further specified in Exhibit B). Without limiting the <br /> generality of the foregoing, the Lessee shall also be responsible for maintaining landscaping on <br /> the Premises designated in Exhibit A and for undertaking at the Lessee's sole expense, any <br /> necessary repair or resurfacing of paved surfaces on the Premises and any repair or maintenance <br /> of fencing. Such repairs shall be at least equal in quality to the original work, reasonable wear <br /> and tear accepted. The Lessee shall keep and maintain all portions of the Premises free of <br /> accumulation of dirt, rubbish, and graffiti. The Lessee shall take reasonable steps to ensure that <br /> access to the Premises is limited to the Lessee and the Lessee's agents, employees, contractors <br /> and subcontractors. The failure of the Lessee to maintain the Premises in accordance with this <br /> 2 <br />