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LEASE OF PROPERTY THIS LEASE is made by and between Cass County., North Dakota (hereinafter "County") and Kenneth J Klocke (hereinafter "Lessee"). THE PARTIES HEREBY COVENANT AND AGREE AS FOLLOWS: Property: The County hereby offers to lease, and the Lessee agrees to lease, the property. situated in the Township of Stanley, County of Cass, State of North Dakota, described as: Lot 8 of Forest River Subdivision (hereinafter "property."). Term: The term oft. his lease shatl commence on April 1,2002, and expire at midnight on December 31, 2002. The terms and conditions of this Lease shall automatically renew for an additional thirty-six (36) month period unless either pa~. serves the other party with written notice of non-renewal within sixty (60) days prior to the lease expiration date. Rent: Rent shall be $ t 0 dollars per year. payable in advance of the commencement day, to the County by and through the Cass County Auditor at the address ~ven in the section herein entitled Notices. Use: The property shall only be used for purposes consistent with those contained in E..chibit I (attached). Furthermore, the property shall not be used for, among other purposes, parking vehicles; building any kind of structure without prior written approval of the County.; storage of any kind of equipment or personal property; placement of any sig-ns; raising or keeping of an/reals; or disposal of any kind of materials, whether hazardous or not. The determination of compliance with these limitations on use of the property, shall be at the County's sole discretion. Delivery of Possession: Lessee acknowledges that Lessee has inspected the property and accepts it as suitable for the purpose and use described in this Lease and that the property then complies with the use limitations. Insurance: At all times during the term of this Lease, Lessee shall maintain at Lessee's sole expense, public liability and property damage liability insurance in an amount not less than $500,000. Lessee shall deliver to County a copy of the certificate of insurance prior to the commencement, and renewal if applicable, of this Lease. County makes no representation that the limits of liabiliw specified herein are adequate to protect Lessee. Indemnification: County shall not be liable for any damage to Lessee, or any other person, or to any property, occuning on the premises or any part thereof, unless such damage is the proximate result of the negligence of an unlawful act of the County. Lessee agrees to hold the County harmless from any claims for damages occurring on the property,, no matter how caused, except for injury damages for which County is legally responsible. Page 1 of 4