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<br />LEASE OF PROPERTY <br />THIS LEASE is made by and between Cass County, North Dakota (hereinafter "County") and <br />Derrick L & Krista D Harr, 611 Hillside Dr, Fargo, ND 58104 (hereinafter "Lessee"). <br /> <br />THE PARTIES HEREBY COVENANT AND AGREE AS FOLLOWS: <br />1. Property: The County hereby offers to lease, and the Lessee agrees to lease, the property <br />situated in the Township of Stanley, County of Cass, State of North Dakota, described as: <br />Lot 23, Block 1 of Heritage Hills Estates (hereinafter "property"). <br /> <br />2. <br /> <br />Term: The term of this lease shall commence on January 1,2005 and expire at midnight <br />on December 31, 2005. The terms and conditions of this Lease shall automatically renew <br />for an additional twenty-four (24) month period unless either party serves the other party <br />with written notice of non-renewal within sixty (60) days prior to the lease expiration <br />date. <br /> <br />3. <br /> <br />Rent: Rent shall be $10 per year, or $30 for the lease period, payable in advance of the <br />commencement day, to the County by and through the Cass County Auditor at the address <br />given in the section herein entitled Notices. <br /> <br />4. <br /> <br />Use: The property shall only be used for purposes consistent with those contained in <br />Exhibit 1 (attached). Furthermore, the property shall not be used for, among other <br />purposes, parking vehicles; building any kind of structure without prior written approval <br />of the County; storage of any kind of equipment or personal property; placement of any <br />signs; raising or keeping of animals; or disposal of any kind of materials, whether <br />hazardous or not. The determination of compliance with these limitations on use of the <br />property shall be at the County's sole discretion. <br /> <br />5. <br /> <br />Delivery of Possession: Lessee acknowledges that Lessee has inspected the property and <br />accepts it as suitable for the purpose and use described in this Lease and that the property <br />then complies with the use limitations. <br /> <br />6, <br /> <br />Insurance: At all times during the term of this Lease, Lessee shall maintain at Lessee's <br />sole expense, public liability and property damage liability insurance in an amount not <br />less than $500,000, Lessee shall deliver to County a copy of the certificate of insurance <br />prior to the commencement, and renewal if applicable, ofthis Lease. County makes no <br />representation that the limits of liability specified herein are adequate to protect Lessee. <br /> <br />7. <br /> <br />Indemnification: County shall not be liable for any damage to Lessee, or any other person, <br />or to any property, occurring on the premises or any part thereof, unless such damage is <br />the proximate result of the negligence of an unlawful act of the County. Lessee agrees to <br />hold the County harmless from any claims for damages occurring on the property, no <br />matter how caused, except for injury damages for which County is legally responsible. <br /> <br />Page 1 of 4 <br />