HomeMy WebLinkAboutFOLSOM GRAZING ASSOCIATION - CONTRACT - RFP - P992 SOAPSTONE GRAZING LEASESOAPSTONE PRAIRIE NATURAL AREA
GRAZING LEASE AGREEMENT
THIS AGREEMENT, made and entered into this 30th day of December, 2005, by
and between THE CITY OF FORT COLLINS, COLORADO, a municipal corporation
(hereinafter referred to as "the Lessor"), and FOLSOM GRAZING ASSOCIATION, a
Colorado corporation, (hereinafter referred to as "the Lessee").
WITNESSETH:
WHEREAS, the Lessor is the owner of that certain real property, together with
any improvements located thereon, situated in the County of Larimer, State of Colorado,
consisting of approximately 12,588 acres of land, commonly known as the Soapstone
Prairie Natural Area, the legal description of which is set forth in Exhibit "A" attached
hereto and incorporated herein by reference (hereinafter referred to as "the Property"), -
and
WHEREAS, the Lessor currently leases from the State of Colorado approximately
3,862 acres of land, together with any improvements located thereon, which land is
situated in the County of Larimer, State of Colorado, the legal description of which is set
forth on Exhibit "B" attached hereto and incorporated herein by reference (hereinafter
referred to as "the Colorado Lease Lands"); and
WHEREAS, the Property and the Colorado Lease Lands shall be hereinafter
referred to collectively as "the Leased Premises"; and
WHEREAS, the Lessor desires to lease the Leased Premises to the Lessee for
livestock grazing purposes only, and the Lessee desires to lease the Leased Premises from
the Lessor for livestock grazing purposes only.
NOW, THEREFORE, in consideration of the mutual covenants, promises, and
agreements herein contained, and other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties do hereby covenant, promise,
and agree to and with each other as follows:
Article I. Lease of the Leased Premises.
1.1 The Lessor does hereby lease, demise, and let unto the Lessee, and
the Lessee does hereby hire and take from the Lessor the Property.
1.2 The lease of the Property to the Lessee as provided in paragraph
1.1, above, shall include all the improvements located upon the Property including, but
not limited to, the ranch headquarters facilities. However, the Lessee must employ a
from the complete performance of the covenants herein contained on the part of the
Lessee to be performed.
ARTICLE XIL Mechanic's Liens.
12.1 The Lessee agrees to pay or cause to be paid promptly all bills and
charges for material, labor, or otherwise in connection with or arising out of any
alterations, additions, maintenance, repairs, or changes made by the Lessee or its agents
or subtenants to the Leased Premises; and the Lessee agrees to hold the Lessor free and
harmless against all liens and claims of liens for such labor and materials, or either of
them, filed against the Leased Premises or any part thereof and from and against any
expense and liability in connection therewith. The Lessee further agrees to discharge
(either by payment or by filing the necessary bond) any mechanic's, materialman's, or
other liens against the Leased Premises arising out of any payment due or alleged to be
due for any work, labor, services, materials, or supplies claimed to have been furnished at
the Lessee's request in, on, or about the Leased Premises and to indemnify the Lessor
against any lien or claim of lien attached to or upon the Leased Premises or any part
thereof by reason of any act or omission on the Lessee's part. The Lessee shall, however,
have the right to contest any mechanic's lien or claims filed against the Leased Premises,
provided the Lessee shall diligently prosecute any such contest and at all times
effectively stay or prevent any sale of the Leased Premises under execution or otherwise
and pay or otherwise satisfy any final judgment adjudging or enforcing such contested
liens and thereafter procure record satisfaction of the release thereof. The Lessee also
agrees in any such contest, at the Lessee's cost and expense, to defend the same on behalf
of the Lessor.
ARTICLE XIII. Condemnation
13.1 If, during the term of this Agreement: (a) the title to the whole or
substantially all of the Leased Premises shall be taken; or (b) if the Leased Premises shall
be deprived of adequate ingress or egress to or from all public streets and highways
abutting the Leased Premises, and the Lessee cannot reasonably operate upon the
remainder of the Leased Premises at the time of such taking as the result of the exercise
of the power of eminent domain (hereinafter referred to as "Proceedings"), then this
Lease shall terminate as of the date of such taking pursuant to such Proceedings. For the
purpose of construing the provisions of this Article, "Proceedings" shall include any
negotiated settlement of any matter involved in a condemnation; and a "taking" shall be
deemed to occur when title to the Leased Premises or possession thereof is acquired by
another governmental authority, whichever first occurs.
13.2 If, during the term of this Lease, title to less than the whole or title
to less than substantially all of the Leased Premises shall be taken in any such
Proceedings and the Lessee can reasonably operate on the remainder of the Leased
Premises at the time of such taking, this Lease shall not terminate. The Lessee's
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obligation to pay rent as provided in Article I11. above, however, shall be adjusted
accordingly.
13.3 All damages awarded for any taking described in this Article shall
belong to and be the property of the Lessor.
ARTICLE XIV. Total or Partial Destruction.
14.1 In case, during the term of this Lease, the Leased Premises or a
substantial part thereof shall be destroyed or shall be so damaged by fire or other
casualties so as to become unusable for livestock grazing purposes, then, in such event, at
the option of the Lessee, the term hereby created shall cease; and this Lease shall become
null and void from the date of such damage or destruction; and the Lessee shall
immediately surrender the Leased Premises and its interest therein to the Lessor.
Provided, however, that the Lessee shall exercise such option to so terminate this Lease
by notice in writing delivered to the Lessor within thirty (30) days after such damage or
destruction. In addition, the Lessee shall continue to be liable to the Lessor for such rent
that will have accrued up to the date of termination of this Lease. In the event the Lessor
shall not so elect to terminate this Lease, this Lease shall continue in full force and effect.
14.2 If the Leased Premises shall be only slightly injured by fire or the
elements so as not to render the same unusable for livestock grazing purposes, then the
Lessor shall repair the same with all reasonable speed. No compensation, off -set, or
claim shall be made by or allowed to the Lessee by reason of any inconvenience or
annoyance arising from the necessity of repairing any portion of the Leased Premises,
however the necessity may occur.
ARTICLE XV. Holding Over.
15.1 Any holding over after the expiration of the term of this Lease
Agreement or any extended term thereof, with the written consent of the Lessor, shall be
construed to be a tenancy from month -to -month on the same terms and conditions herein
specified at the same rental provided for herein.
ARTICLE XV]. Default of Lessee.
16.1 This Lease Agreement is made on the condition also that if any one
or more of the following events (hereinafter referred to as "an event of default") shall
happen:
(a) The Lessee shall default in the due and punctual payment of the rent or
any other amounts required to be paid hereunder and such default shall
continue for ten (10) days after the receipt of written notice from the
Lessor; or
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(b) The Lessee shall neglect or fail to perform or observe any of the other
covenants herein contained on the Lessee's part to be performed or
observed, and the Lessee shall fail to remedy the same within thirty (30)
days after the Lessee shall have received from the Lessor written notice
specifying such neglect or failure (or within such period, if any, as may be
reasonably required to cure such default if it is of such a nature that it
cannot be cured within said thirty (30) day period, provided that the
foundation shall have commenced to effect such a cure within said thirty
(30) days and shall proceed with due diligence to complete said cure); or
(c) The Lessee shall: (i) be adjudicated as bankrupt or insolvent; (ii) file a
petition in bankruptcy or for reorganization or for the adoption of an
arrangement under the Bankruptcy Act (as now constituted or in the future
amended); or (iii) make an assignment of its property for the benefit of its
creditors; or
(d) The Lessee shall neglect or fail to perform or observe any of the
covenants herein contained on the Lessee's part to be performed or
observed within one hundred and eighty (180) days after prior notice of
any such neglect or failure, whether or not such prior neglect or failure
was remedied within the time period provided in subparagraph (a) or (b),
above.
Then, and in any one or more such events of default, the Lessor shall have the right, at its
election and while any such event of default shall continue, to give the Lessee written
notice of its intention to terminate this Lease on the date of such given notice or any later
date specified therein; and on such specified date, the Lessee's right to possession of the
Leased Premises shall cease; and this Lease shall thereupon be terminated. The Lessor
may then re-enter and take exclusive possession of the Leased Premises or any part
thereof and repossess the same as the Lessor's former estate and expel the Lessee and
those claiming through or under the Lessee and remove the effects of both or either
(forcibly, if necessary) without being deemed guilty of any manner of trespass and
without prejudice to any remedies for arrearages of rent or preceding breaches of
covenants.
16.2 Alternatively, the Lessor may elect if an event of default occurs not
to terminate this Lease, but the Lessor shall still have the right to elect to retake exclusive
possession of the Leased Premises by evicting the Lessee if the Lessee has not otherwise
abandoned the Leased Premises. In the event the Lessor elects to so take exclusive
possession, the Lessee shall not be relieved of its obligations and liabilities under the
Lease, all of which shall survive such repossession. In the event of such repossession, the
Lessee shall pay to the Lessor as current liquidated damages:
A. The then value of the rent and other sums as herein provided which would
be payable if such repossession had not occurred; less
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B. The net proceeds, if any, of any reletting of the Leased Premises after
deducting all of the Lessor's expenses in connection with such reletting,
including, without limitation, all repossession costs, brokerage
commissions, legal expenses, attorneys fees, expenses of employees, and
necessary alteration costs and expenses in preparation of such reletting.
The Lessee shall pay such damages to the Lessor within thirty (30) days after receiving
written notice from the Lessor of such damages. If the Lessor shall be required to
commence any action or proceeding to collect the foregoing amounts, or to enforce any
other obligation of the Lessee under this Lease, the Lessor shall be entitled to
reimbursement for all costs and expenses incurred in said matter, including reasonable
attorney's fees.
ARTICLE XVII. Attorneys Fees.
17.1 The Lessee shall pay and indemnify the Lessor against all legal costs and
charges, including attorneys fees, lawfully and reasonably incurred in obtaining
possession of the Leased Premises after default of the Lessee or termination of this Lease,
incurred in enforcing any covenant of the Lessee herein contained or any right granted to
the Lessor, and incurred in collecting any rent, monies, or other damages owed by the
Lessee to the Lessor under this Lease.
ARTICLE XVIII. Lessee to Save Lessor Harmless.
18.1 The Lessee covenants that it will indemnify and hold the Lessor, and its
officers and employees, harmless from all claims, demands, judgments, costs, and
expenses, including attorneys fees, arising out of any accident or occurrence causing
injury to any person or property whomsoever or whatsoever due directly or indirectly to
the use or neglect of the Leased Premises or any part thereof by the Lessee and its
officers, agents, employees, licensees, and invitees or any entity or person (and their
officers, agents, employees, licensees, and invitees) holding under the Lessee, unless such
accident or occurrence results solely from the tortious misconduct or negligent act or
omission on the part of the Lessor, or its officers and employees; and the Lessee will
indemnify and hold harmless the Lessor, and its officers and employees, from all
damages and all penalties arising out of any failure of the Lessee, in any respect, to
comply with all of the requirements and provisions of this Lease Agreement; and the
Lessee covenants that the Lessee shall keep and save the Lessor, and its officers and
employees, and the Lessor's interest in and unto the Leased Premises forever harmless
from any penalty, damage, or charge imposed by any violation of any laws, whether
occasioned by an act or omission of the Lessee, or by another or others in the Leased
Premises holding under or through the Lessee. In addition, the Lessor, and its officers
and employees, shall not be liable to the Lessee for any livestock injuries or deaths,
regardless of cause, incurred in connection with such livestock grazing upon the Leased
Premises under this Lease Agreement, unless such injuries or deaths result from a
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negligent act or omission of the Lessor. However, any liability of the Lessor, or of its
officers and employees, to the Lessee shall be subject to all the defenses, immunities, and
limitations of the Colorado Governmental Immunity Act (Section 24-10-101, et sea.) and
to any other defenses, immunities, and limitations to liability available to the Lessor, and
its officers and employees, under the law.
ARTICLE X1X. Notices.
19.1 Any notice or other communication given by either party hereto to the
other relating to this Lease Agreement shall be hand -delivered or sent by registered or
certified mail, return receipt requested, addressed to such other party at its respective
addresses set forth below; and such notice or other communication shall be deemed given
when so hand -delivered or three (3) business days after so mailed:
If to the Lessor:
Natural Areas - Natural Resources Department
City of Fort Collins
Attn: John Stokes
P.O. Box 580
Fort Collins, CO 80522
With a copy to:
City Attorney's Office
City of Fort Collins
P.O. Box 580
Fort Collins, CO 80522
If to the Lessee:
Folsom Grazing Association
CIO Willie Altenburg, President
570 East County Road #64
Fort Collins, CO 80524
With a copy to:
The Dow Law Firm, LLC
C/O Tim Dow
PO Box 1578
Fort Collins, CO 80522
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ARTICLE XX. Hazardous Material.
20.1 As used herein, the term "Hazardous Material" means any
hazardous or toxic substance, material, or waste which is or becomes regulated by any
local governmental authority, the State of Colorado or the United States Government.
The term "Hazardous Material" includes, without limitation, any material or substance
that is: (i) defined as a "hazardous substance" under applicable state law provisions; (ii)
petroleum; (iii) asbestos; (iv) designated as "hazardous substance" pursuant to Section
311 of the Federal Water Pollution Control Act (33 U.S.C. Section 1321); (v) defined as
"hazardous waste" pursuant to Section 1004 of the Federal Resource Conservation and
Recovery Act (42 U.S.C. Section 6903); (vi) defined as a "hazardous substance" pursuant
to Section 101 of the Comprehensive Environmental Response, Compensation and
Liability Act (42 U.S.C. Section 9601); or (vii) defined as a "regulated substance"
pursuant to Subchapter IX, Solid Waste Disposal Act (Regulation of Underground
Storage Tanks) (42 U.S.C. Section 6991).
20.2 The Lessee shall not cause or permit any Hazardous Materials to
be brought upon, kept, or used in or about the Leased Premises by the Lessee, its officers,
agents, employees, contractors, licensees, or invitees, without the prior written consent of
the Lessor (which the Lessor shall not unreasonably withhold as long as the Lessee
demonstrates to the Lessor's reasonable satisfaction that such Hazardous Material is
necessary or useful to the Lessee's operation; that it will be used, kept, and stored in a
manner that complies with all laws regulating any such Hazardous Material and will
protect and preserve the Leased Premises and any other property in a safe and
environmentally sound condition; and that the Hazardous Material will not materially
interfere with the Lessor's use of the Leased Premises or cause damage to said Leased
Premises.) If the Lessee breaches the obligation stated in the preceding sentence, or if the
presence of Hazardous Material on the Leased Premises caused or permitted by the
Lessee results in contamination of the Leased Premises or if contamination of the Leased
Premises by Hazardous Material otherwise occurs for which the Lessee is legally liable to
the Lessor for damage resulting therefrom, then the Lessee shall indemnify, defend, and
hold the Lessor, and its officers and employees, harmless from any and all claims,
judgments, damages, penalties, fines, costs, liabilities, or losses (including, without
limitation, diminution in value of the Leased Premises, damages for the loss or restriction
on use of the Leased Premises, and sums paid in settlement of claims, attorneys fees,
consulting fees, and expert fees) which arise during or after the Lease term as a result of
such contamination. This indemnification of the Lessor by the Lessee includes, without
limitation, any costs incurred in connection with any investigation of site conditions or
any clean-up, remedial, removal, or restoration work required by any federal, state, or
local governmental agency or political subdivision because of Hazardous Material
present in the soil or ground water on or under the Leased Premises. Without limiting the
foregoing, if the presence of any Hazardous Material on the Leased Premises caused or
permitted by the Lessee results in any contamination of the Leased Premises, the Lessee
shall promptly take all actions at its sole expense as are necessary to return to the Leased
Premises to the condition existing prior to the introduction of any such Hazardous
Material to the Leased Premises; provided that the Lessor's written approval of such
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action shall first be obtained, which approval shall not be unreasonably withheld so long
as such action would not potentially have any material adverse effect on the Leased
Premises or the Lessor's use of the Leased Premises.
ARTICLE XXI. Time of the Essence.
21.1 It is agreed that time shall be of the essence of this Lease Agreement and
each and every provision hereof.
ARTICLE XXII. Access and Use By Lessor.
22.1 It is expressly acknowledged and agreed that the Lessor, and its officers,
employees, and any other person properly authorized by the Lessor, shall at all times
retain the right to enter upon and use the Leased Premises for any purpose.
ARTICLE XXIII.. Education.
23.1 The Lessee or appropriate employee of the Lessee shall participate in six
(6) public tours of the Leased Premises each year. The Lessee's participation will
include describing ranching operations on Soapstone Prairie Natural Area as well as the
history of ranching in the area. The Lessor may conduct any other tours, whether public
or private, as Lessor deems reasonable and not inconsistent with Lessee's grazing
activities hereunder.
ARTICLE XXIV. "AS -IS" Nature of Leased Premises
24.1 The Lessee acknowledges and agrees that the Lessor has not made, does
not make, and specifically negates and disclaims any representations, warranties,
promises, covenants, agreements, or guarantees of any kind or character whatsoever,
whether expressed or implied, oral or written, past, present, or future, of, as to,
concerning or with respect to the Leased Premises and; (a) the value, nature, quality, or
condition of the Leased Premises, including, without limitation, the water, soil, and
geology of the Leased Premises; (b) the income to be derived from the Leased Premises;
(c) the suitability of the Leased Premises for any and all activities and uses which the
Lessee may conduct thereon including the grazing of livestock; (d) the compliance of or
by the Leased Premises or its operation with any laws, rules, ordinances, regulations of
any applicable governmental authority or body; (e) the habitability, merchantability,
marketability, profitability, or fitness for a particular purpose of the Leased Premises; (I)
the manner or quality of the construction or materials, if any, incorporated into the
improvements located on the Leased Premises; (g) the manner, quality, state of repair or
lack of repair of the improvements located on the Leased Premises; or (h) any other
matter with respect to the Leased Premises and the improvements located thereon, and
specifically, that the Lessor has not made, does not make and specifically disclaims any
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representations regarding compliance with any environmental protection, pollution, or
land use laws, rules, regulations, orders, or requirements, including solid waste, as
defined by the U.S. Environmental Protection Agency regulated at 40 C.F.R., Part 261, or
the disposal or existence, in or on the Leased Premises, of any hazardous substance, as
defined by the Comprehensive Environmental Response Compensation and Liability Act
of 1980, as amended, and regulations promulgated thereunder. The Lessee further
acknowledges and agrees that having been given the opportunity to inspect the Leased
Premises, and the improvements located thereon, the Lessee is relying solely on its own
investigation of the Leased Premises and not on any information provided or to be
provided by the Lessor. The Lessee further acknowledges and agrees that any
information provided or to be provided with respect to the Leased Premises was obtained
from a variety of sources and that the Lessor has not made any independent investigation
or verification of such information and makes no representations as to the accuracy or
completeness of such information. The Lessee agrees that the Lessor is not liable or
bound in any manner by any verbal or written statements or representations, or
information pertaining to the Leased Premises, or the improvements located thereon, or
the operation thereof, furnished by any real estate broker, agent, employee, servant, or
other person. The Lessee further acknowledges and agrees that to the maximum extent
permitted by law, the lease of the Leased Premises as provided herein is made on an "AS -
IS" condition and basis with all faults. It is understood and agreed that the rent provided
for under this Lease Agreement and any other consideration provided by the Lessee
under this Lease Agreement has been adjusted and taken into consideration by the Lessee
to reflect that all of the Leased Premises is being leased by the Lessee from the Lessor
subject to the foregoing.
ARTICLE XXV. General Provisions.
25.1 Words of the masculine gender shall include the feminine and
neuter gender; and when the sentence so indicates, words of the neuter gender shall refer
to any gender. Words in the singular shall include the plural and vice versa.
25.2 This Lease Agreement shall be construed according to its fair
meaning and as if prepared by both parties hereto and shall be deemed to be and contain
the entire understanding and agreement between the parties hereto. There shall be
deemed to be no other terms, conditions, promises, understandings, statements, or
representations, expressed or implied, concerning this Lease Agreement unless set forth
in writing and signed by both of the parties hereto.
25.3 The Article headings used herein are for convenience of reference
only and in no way shall define or limit the scope or intent of any provision under this
Lease Agreement.
25.4 Subject to the provisions hereof, the benefits of this Lease
Agreement and the burdens hereunder shall inure to and be binding upon the parties
hereto and their respective heirs, administrators, successors, and permitted assigns.
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25.5 The parties hereto agree that this Lease shall be governed by and
its terms construed under the laws of the State of Colorado. The parties further agree that
any judicial proceedings commenced by either of them to enforce any of the obligations,
covenants, and agreements contained herein, shall be commenced in the Larimer County
District or County Courts.
25.6 Nothing contained herein shall be deemed or construed by the
parties hereto nor by any third party as creating the relationship of principle and agent or
a partnership or a joint venture between the parties hereto, it being agreed that none of the
provisions set forth herein nor any acts of the parties herein shall be deemed to create a
relationship between the parties hereto other than the relationship of lessor and lessee.
25.7 Failure of the Lessor to exercise any right or rights accruing to it
by virtue of the Lessee's breach of any covenant, condition, or agreement herein shall not
operate as a waiver of the exercise of such right or rights in the event of any subsequent
breach by the Lessee, nor shall the Lessee be relieved thereby from its obligations under
the terms of this Lease Agreement.
25.8 This Lease Agreement is made for the sole and exclusive benefit of
the Lessor and the Lessee, their successors and assigns, and it is not made for the benefit
of any third party.
25.9 The remedies of the Lessor under this Lease shall be cumulative;
no one of them shall be construed as exclusive of any other or of any other remedy
provided by law.
25.10 The Lessor reserves the right to grant to any third party such
easements and rights -of -way as it desires over, across, and under portions of the Leased
Premises and to lease all or any portion of the Leased Premises to any other third party so
long as such easements, rights -of -way, and leases do not unreasonably interfere with the
Lessee's continuing use of the Leased Premises as provided in this Lease Agreement.
25.11 No act or thing done by the Lessor or the Lessor's officers or
employees during the term hereof shall be considered as an acceptance of the surrender of
the Leased Premises, and no agreement to accept such surrender shall be valid unless in
writing signed by the Lessor.
25.12 The Lessee, upon the expiration or termination of this Lease, either
by lapse of tern or otherwise, agrees to peacefully surrender to the Lessor the Leased
Premises, including the improvements located thereon together with any alterations,
additions, and changes made to such improvements by the Lessee during the term of this
Lease Agreement, in good repair, as hereinabove provided, and except for acts of God,
ordinary wear, and damage by fire or other casualty not caused by the negligence of the
Lessee or anyone under the Lessee's control.
25.13 The Lessee acknowledges and agrees that the Lessee has not relied
upon any statements, representations, agreements, or warranties except such as they are
expressed herein.
25.14 In the event any covenant, condition, or provision of this Lease
Agreement is held to be invalid by final judgment of any court of competent jurisdiction,
the invalidity of such a covenant, condition, or provision shall not in any way affect any
of the other covenants, conditions, or provisions of this Agreement, provided that the
invalidity of any such covenant, condition, or provision does not materially prejudice
either the Lessee or the Lessor in their respective rights and obligations under the valid
covenants, conditions, and provisions of this Lease Agreement.
25.15 To the extent necessary to carry out all of the terms and provisions
hereof, the said terms, obligations, and rights set forth herein shall survive and shall not
be affected by the expiration or termination of this Lease Agreement.
25.16 The parties hereto acknowledge that certain items of personal
property may now be located on the Leased Premises. The Lessor makes no
representations or warranties regarding its ownership of any such items of personal
property or regarding the condition of such items. The parties hereto acknowledge that
the said items of personal property located on the Leased Premises and within the
improvements located on the Leased Premises may belong to third parties. The Lessee
agrees to indemnify and hold harmless the Lessor, and its officers and employees, from
and against any liability for any improper use or disposition by the Lessee of any items of
personal property belonging to third parties.
25.17 Neither the Lessor nor the Lessee shall be deemed in violation of
this Lease Agreement if prevented from performing any of their respective obligations
hereunder by reason of strikes, boycotts, labor disputes, embargoes, shortage of energy or
materials, acts of God, acts of public enemies, acts of superior governmental authorities,
weather conditions, rights, rebellions, sabotage, or any other circumstances for which
they are not responsible or that are not within their control.
25.18 This Lease Agreement shall not be recorded. However, at the
request of the Lessee, the Lessor and the Lessee shall execute a memorandum of lease for
recording, containing the names of the parties, the legal description of the Leased
Premises, the term of the Lease and such other information as the parties shall mutually
agree upon.
25.19 The obligations of the Lessor to commit or expend funds after
calendar year 2006 are subject to and conditioned upon the annual appropriation of funds
sufficient and intended to carry out said obligations by the City Council, in its sole
discretion. In the event of nonappropriation by the Lessor of funds necessary to carry out
any such obligations, resulting in a material impairment of Lessee's right hereunder, the
Lessee shall be entitled to terminate the lease with no further recourse against the Lessor,
upon provision of thirty (30) days written notice to Lessor within sixty (60) days of said
nonappropriation by Lessor.
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ranch manager to occupy and use the ranch headquarters residence on a year round basis.
This employee shall be responsible for generally providing security and surveillance of
the Property to prevent persons from trespassing upon it. If the employee encounters or
observes trespassers upon the Property, the employee shall ask the trespasser to leave the
property immediately and if necessary notify the Larimer County Sheriffs Department
and notify the Lessor. It shall be the responsibility and obligation of the Lessee to ensure
that its employee residing on the Property, their dependents and any guests, strictly
comply with the requirements and restrictions set forth in this Lease Agreement, and with
all applicable laws, regulations and other legal requirements, in connection with the use
or occupation of the Property.
1.3 The Lessor does hereby sublease unto the Lessee, and the Lessee
does hereby sublet from the Lessor the Colorado Lease Lands. If Lessor acquires the
Colorado Lease Lands, said real property shall continue to be a part of the Leased
Premises hereunder.
Article 11. Term.
2.1 The term of this Lease shall be for a period of one (1) year,
commencing as of 12 noon on the I" day of January, 2006. The term of the Lease shall
automatically renew each year for each of two (2) additional successive years continuing
until 12 noon on the 31s` day of December, 2008, unless terminated by operation of law
-or as otherwise provided in this Lease Agreement.
2.2 Grazing may begin with certain restrictions May 15 and end
November 15 unless moisture conditions and forage availability requires modification of
time, dates, or stocking rates (See Additional Provisions, Article XXVI). If modification
is necessary, the Lessor, in consultation with the Lessee, will determine modified grazing
dates and stocking rates. The Lessor reserves the right to make the final decision in
accordance with the terms of this Agreement.
The Lessor reserves the right to perform management activities at any time during the
year including the grazing season. Any management activity that has the potential to
influence stocking rates or grazing dates will be coordinated with the Lessee (See
Additional Provisions, Article XXVI).
The Lessor reserves the right to open the Leased Premises to public use at any time
during this Lease. Any modification to stocking rates, grazing dates, and grazing
rotations will be coordinated with the Lessee.
2.3 Initial stocking rates, grazing initiation and ending dates, animal
unit months for each pasture, and grazing rotation plans are identified in the Additional
Provisions (Article XXVI), and shall be set out in a Grazing Plan, an initial version of
which is attached hereto as Appendix A. Lessor shall provide a final version of the initial
Grazing Plan (for 2006) no later than May 15, 2006. Annual updates and modifications
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ARTICLE XXVI. Additional Provisions.
26.1 Lessor has initiated a short and long-term monitoring program to
document change in plant cover, plant species diversity, residual cover, biomass removal,
and soil stability in grazed and ungrazed conditions. The ungrazed condition may be
represented by grazing exclosures placed within each grazing unit. Grazed condition
will be represented within each grazing unit outside of the grazing exclosures. The total
acres in each pasture shall be reduced by 10 acres to accommodate grazing exclosures.
Lessor shall be responsible for placement of exclosures and data collection in connection
with the monitoring program.
26.2 The Lessee shall conduct in cooperation with the Lessor, a short
tern monitoring program as outlined in the Monitoring Manual for Grassland, Shrubland,
and Savanna Ecosystems,Voi. 1, USDA-ARS Jornada Experimental Range (Herrick et
al., 2005) (the "Monitoring Manual"). The Lessee shall gather data for all pastures
(grazed and ungrazed) consistent with the parameters and data points determined by the
Lessor. All data forms and material needed to conduct the monitoring program will be
provided by the Lessor.
26.3 The Lessee is responsible for maintaining a daily log of all weather
events to include' precipitation amounts, and daily high and low temperature. All data
forms and material needed to record information will be provided by the Lessor.
26.4 Grazing units and AUM/unit will be estimated one (1) year in
advance and adjustments made to AUM and grazing dates prior to the start of the grazing
season. The adjustments will be based on precipitation, information from previous years
monitoring programs, and anticipated forage production. In no case shall the Lessee
remove more than 50% of annual biomass in any given pasture in any grazing season.
26.5 The property is divided into eight (8) grazing units, which are
physically separated by fences and are as shown on Attachment A attached hereto and
incorporated herein by this reference (acres stated are approximate):
Brannigan 3758 ac
L&R 4716 ac
Jack Springs 3204 ac
East Canyon 1162 ac
West Canyon 1395 ac
Meadow 707 ac
HQ 241 ac
State Line 751 ac
The total number of AUMs allowed within each pasture along with a general
grazing season structure are listed below. Pastures can be divided or combined
for the purpose of developing a grazing rotation. However, a detailed explanation
20
for combining or dividing pastures must be provided along with a determination
that adequate water supplies and fences exist. Lessee shall be responsible for the
construction and maintenance of any temporary fence necessary to exclude cattle
from an area or to facilitate rotational grazing.
26.5.1. Brannigan, L&R, Jack Springs Pastures
L&R 1,000 AUM
Jack Springs 825 AUM
Brannigan 900 AUM
Grazing may be initiated in one (1) of the pastures listed in this subparagraph on
May 15 and may continue in that pasture until August 1. Grazing in the
remaining two (2) pastures may be initiated June 1 and shall take place for a total
of no more than three (3) months during the time period of June 1 to November
15. No pasture shall be selected for a May 15 start for consecutive years.
26.5.2 East Canyon, West Canyon, Meadow, HQ, State Line
East Canyon
270 AUM
West Canyon
325 AUM
Meadow
175 AUM
State Line
210 AUM
HQ
60 AUM
Grazing may be initiated in two (2) of the pastures listed in this subparagraph on
June 1. Grazing in the remaining three (3) pastures may be initiated August 15.
No pasture shall be selected for a June 1 start for consecutive years. No pasture
shall be grazed for a total of more than three (3) months during the time frame of
June I to November 15. Grazing in all pastures shall end on or before November
15.
26.5.3 Rest Phase
Approximately five percent (5%) of the total area available for grazing shall be
rested each grazing season. This 5% (approximately 800 acres) shall be in one
contiguous block and shall be selected annually in consultation with the Lessor.
Adjustments to animal units will be based on the range type in the rested area and
the relative percentage of the rested area to the grazing pasture where it is located.
The parties may by written agreement on an annual basis chose instead, to reduce
grazing in any one pasture by 5% of the total available animal units or
approximately 185 AU.
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IN WITNESS WHEREOF the parties hereto have caused this Lease Agreement to
be executed the day and year first above written.
TTEST:
City Clerk
APPROVED AS TO FORM:
V �/V
Senior Assistant Ci y o y
THE CITY OF FORT COLLINS,
COLORADO,
A Municipal Corporation
By: e 1
Dann Atteberry, City Manager
LESSEE:
a Colorado Corporation
1/6
AT EST:
Secretary
22
EXHIBIT A
LEGAL DESCRIPTION
Township 11 North, Range 68
West of the 6th P.M.
Section 5: ALL
Township 12 North, Range 68 West of the 6th P.M.
Section 19: All in State of Colorado
Section 20: S 1/2 SW 1/4 and SW 1/4 SE 1/4
Section 21: All in State of Colorado
Section 28: NE 1/4 NW 1/4, W 1/2 NE 1/4 and N 1/2 SE 1/4
Section 29: ALL
Section 30: NW 1/4
Section 31: ALL
Section 33: ALL
Township 11 North, Range 69 West of the 6th P.M.
Section 1: ALL
Section 4: NE 1/4
Township 12 North, Range 69 West of the 6th P.M.
Section 20: All in State of Colorado
Section 21: All in State of Colorado
Section 22: All in State of Colorado
Section 23: All in State of Colorado
Section 24: All in State of Colorado
Section 25: ALL
Section 27: ALL
Section 28: ALL
Section 29: ALL
Section 32: ALL
Section 33: ALL
Section 34: ALL
Section 35: ALL
EXHIBIT B
COLORADO LEASE LANDS
TOWNSHIP 11 NORTH - RANGE 68 WEST
Section 4 Lot 1
7822 acres
S2NE
80.00 "
Lot 2
78.18 "
S2NW
80.00 "
S2
320.00 "
Section 6 Lot 1
78.80 "
S2NE
80.00 "
Lot 2
39.70 "
Lot 3
75.90
SENW
40.00 "
NESW
40.00 "
Lot 4
76.30 "
SESW
40.00 "
SE
160.00 "
TOWNSHIP 12 NORTH - RANGE 68 WEST
Section 20 Lots I - 4
50.78 "
S2N2
160.00 "
N2S2
160.00 "
SESE
40.00 "
Section 28 E2NE
80.00 "
NWNW
40.00 "
S2NW
80.00 "
SW
160.00 "
S2SE
80.00 "
Section 30 NE
160.00 "
S2
314.88 "
Section 32 All 640.00 "
TOWNSHIP 12 NORTH - RANGE 69 WEST
Section 36 All 640.00 acres
The Premises are leased only for the following purposes by Lessee:
A. For grazing purposes 3,872.76 acres
B. For Irrigated agricultural purposes 0.00 acres
C. For dryland agricultural purposes 0.00 acres
D. For other purposes 0-00 acres
Total 3,872.76 acres
Appendix A
2006 Grazing Rotation and Timing Plan
The table below outlines the grazing plan for years 1-3. However, climatic conditions, grassland
response, and unanticipated management actions may modify this plan. This rotation schedule
reflects anticipated grazing dates, pasture rotations, and initial stocking rates and rest phase
option. A total of 3,580 AUM's per grazing season are reflected in this rotation schedule, which
incorporates the reduction in AUM's per the Rest Phase requirement. As this grazing lease
represents an adaptive approach to grassland management, stocking rates and starting dates will
be adjusted prior to the initiation of that years grazing plan and based on climatic conditions and
grassland response.
Pasture
Grazing Dates
Year 1
Year 2
Year 3
Brannigan
Jun 1 — Aug 15
Jack Springs
L&R (326)**
Brannigan (286)**
Jack Springs
256 **
L&R
Jun 15 — Sep 15
Brannigan (300)
Jack Springs
L&R (333)
(275
Jul 30 — Nov 1
L&R (333)
Brannigan 300
Jack S rin s (275)
HQ
Jun 15 — Sep 15
State Line (70)
HQ (20)
State Line (70)
East Canyori
Meadow (58)
East Canyon (90)
Meadow (58
West Canyon
Aug 30 — Nov 1
HQ (30)
Meadow (88)
HQ (30)
Meadow
East Canyon (135)
State Line (105)
East Canyon (135)
State Line
West Canyon (163) 1
West Canyon (162)1
West Canyon (163
-initiai stocking rates are included in parentheses.
"Rest Phase has been incorporated into these rotations.
to the Grazing Plan shall be made by Lessor as outlined in Additional Provisions, Article
XXVI, or as otherwise agreed by the parties.
2.4 Both parties acknowledge that either the Lessor or the Lessee may
cancel this lease at any time upon one hundred eighty (180) days advanced written notice.
Article Ill. Rent.
3.1 Except as otherwise provided in this Lease, the Lessee shall pay to
the Lessor, during the entire thirty six (36) month term of this Lease, rent calculated
based upon the formula of Ten Dollars and Sixty Eight Cents ($10.68) per month for each
animal (animal unit month or AUM) unit grazed upon the Leased Premises for a
minimum total of three thousand six hundred (3,600) AVMs per year, for minimum total
annual rent based on said minimum AUMs in the amount of Thirty Eight Thousand Four
Hundred and Forty Eight Dollars ($38,448.00). For purposes of this Lease, an animal
unit (AU) shall be defined as follows:
1. A cow and unweaned calf pair shall constitute one (1) animal unit.
2. A mature bull shall constitute one and one-half (1.5) animal units.
3. A yearling shall constitute one (1) animal unit.
4. A horse shall constitute one and one-half (1.5) animal units.
5. Five (5) sheep shall constitute one (1) animal unit.
6. A bison cow shall constitute one 1.0 animal unit.
7. A bison bull shall constitute one and one-half (1.5) animal units.
3.2 The annual rental for the term of this Lease shall be payable,
without demand or notice as follows: (1) the sum of Thirty Eight Thousand Four Hundred
Forty Eight Dollars ($38,448.00) shall be due and payable thirty percent (30%) on May
15 and seventy percent (70%) on December I of each year.
3.2.1 The Lessor agrees to credit the Lessee against the next rent
payment due for the then current lease year Lessee's actual documented expenses
(i.e. Lessee's ranch manager, vehicle, gasoline, and equipment) for activities
required in the Lease including range monitoring, weather monitoring, ranch
security, pasture log, ranch maintenance and improvements, participating in
public tours, and dalmation toadflax control as outlined in 1.2, 4.4, 5.1, 5.5, 5.5.1,
5.2, 23.1, 26.1, 26.2, and 26.3 for which Lessee has submitted written
documentation to Lessor no later than fifteen (15) days in advance of any said
credit, up to a maximum credit of Six Hundred Dollars ($600.00) per month.
3
3.3 All payments of rent, less credits outlined in 3.21, shall be made by
the Lessee to the Lessor at such place as the Lessor may, from time to time, designate in
writing. For the present, the Lessor designates City of Fort Collins Natural Resources
Department, Attn: Barbara Brock, 200 West Mountain, Fort Collins, Colorado 80522, as
the place for the making of rental payments. All such rent shall be payable in current
legal tender of the United States as the same is then by law constituted. Extensions of
time for the payment of any installment of rent or the acceptance by the Lessor of any
money other than of the kind herein specified shall not be a waiver of the right of the
Lessor to insist on having all other payments of rent made in the manner and at the time
herein specified.
3.4 Notwithstanding the foregoing provisions of this Article III, the
Lessee agrees that if the Lessor determines that the grazing conditions of the Leased
Premises warrant it, whether such conditions are drought, pestilence, insect infestation or
any other similar calamity, the Lessor may reduce the required maximum number of
animal unit months from three thousand six hundred (3,600) per year to that number that
is appropriate under the then existing grazing conditions. In such event, Lessor agrees
that Lessee's rental payment due in May or December shall be reduced by Ten Dollars
and Sixty Eight Cents ($10.68) per each AUM reduced from the original total of three
thousand six hundred (3,600) AVMs per year.
3.5 In the event that the Lessee shall fail to pay when due any rental
payment required under this Lease, the unpaid rental amount shall accrue interest at the
rate of eighteen percent (18%) per annum from the due date until paid.
Article IV. Use of Leased Premises.
4.1 The Lessee shall use the Leased Premises for livestock grazing
purposes only, except as otherwise provided in this Lease. The lease does not allow for
feeding of livestock outside of the corrals, private or commercial recreational rights,
hunting, shooting, trapping or poisoning of wildlife of any kind, or control of prairie
dogs. All pets must be on a leash, caged or fenced, with the exception of two cats which
may roam freely around the ranch headquarters to control mice and for dogs owned or
controlled by the Lessee and used for ranching activities such as the herding of livestock.
Only licensed vehicles involved in ranching activities are allowed beyond the ranch
headquarters and are to remain on existing established roads. Unlicensed vehicles are
prohibited except that ATV's used for ranching activities may be used on or off
established roads. Off road use by ATV's shall be kept to an absolute minimum.
4.2 The Lessee shall not use the Leased Premises in such a manner so
as to violate any applicable law, statute, ordinance, rule, or regulation of any
governmental entity or body.
4.22 All cattle moved into Colorado from any other state or
country must strictly adhere to all Colorado Department of Agriculture and
4
U.S. Department of Agriculture regulations for animal movement into and
within Colorado.
4.3. The Lessee shall not permit or suffer the use of or presence on the
Property by the general public or by any persons other than Lessee's employees or
agents, who shall be permitted to occupy or use the Property only to the extent required
to carry out the purposes of the Lease. Lessee's employee residing in the ranch
headquarters residence may have personal invitees in the residence, but any other
presence on, or use of, the Property by said invitees is expressly prohibited.
4.4 The Lessee shall be responsible for security of the Leased
Premises, including by not limited to closing gates, reporting trespass or other violations
to the Larimer County Sheriff, Colorado Division of Wildlife or other appropriate
jurisdiction. The Lessee shall have at all times designated an appropriately trained and
qualified person to take primary responsibility for the Lessee in carrying out the
requirements of this paragraph.
ARTICLE V. Maintenance and Repairs.
5.1 The Lessee covenants and agrees at all times during the term of
this Lease, to maintain and keep in orderly condition and in a good state of repair, all of
the Leased Premises and the improvements located thereon, including, but not by way of
limitation, fencing and the buildings constituting the ranch headquarters. The Lessee,
however, shall only be responsible for such maintenance and repairs that are ordinary and
routine in nature (See Additional Provisions in Article VI. Alterations and
Improvements). The Lessor shall be responsible for the cost of all materials necessary for such
routine maintenance and repairs.
5.1.1 The Lessee or an employee of the Lessee must serve as the
ranch manager and occupy the house provided at Soapstone Prairie Natural Area.
Occupation must be for the entire term of the lease. Utilities serving said house
shall be the responsibility of Lessee. Lessee shall be responsible for notifying
Lessor of any condition in said house that render the same not suitable for human
habitation.
5.2 Lessee shall be responsible for notifying Lessor of maintenance
and repairs to the Leased Premises that are needed and are extraordinary and major in
nature. The Lessee shall be responsible for up to One Thousand Dollars ($1,000.00) in
labor. Any additional labor shall be the responsibility of the Lessor for such maintenance
and repairs (See Additional Provisions in Article VI. Alterations and Improvements).
5.3 All maintenance and repairs to the Leased Premises required of the
Lessee shall be made promptly and when necessary. In addition, all such maintenance
and repairs shall be done in a good and workmanlike manner and in compliance with all
applicable laws, statutes, ordinances, rules, orders, regulations, and requirements of all
5
federal, state, and county governments and the appropriate departments, commissions,
boards, and officers thereof.
5.4 The Lessee shall keep the Leased Premises clean and in good
sanitary condition, as required by the statutes, ordinances, resolutions, and health,
sanitary, and police regulations of the County of Larimer and State of Colorado. The
Lessee shall neither permit nor suffer a disorderly noise or nuisance whatsoever about the
Leased Premises having any tendency to annoy or disturb any persons occupying
adjacent land. The Lessee shall neither hold nor attempt to hold the Lessor liable for any
injury or damage, either approximate or remote, occasioned through or caused by any
maintenance, alterations, or repairs made by the Lessee upon or to the Leased Premises or
the improvements located thereon.
5.5 The Lessee shall be responsible for controlling noxious and toxic
plants found upon the Leased Premises. The cost of labor to control such plants shall be
the sole responsibility of the Lessee. The Lessor, however, shall be responsible for the
cost of any herbicides or other materials necessary to control such plants. In using any
herbicides or other materials to control noxious and toxic plants on the Leased Premises,
the Lessee shall comply with all applicable federal, state, and local laws, rules, and
regulations controlling the application and storage of such herbicides and materials. In
addition, the Lessee shall indemnify and hold the Lessor, and its officers and employees,
harmless from any and all claims, judgments, penalties, fines, costs, and attorney's fees
that may result from the Lessee's use, application, and storage of such herbicides and
other materials.
5.5.1 Lessee shall be responsible for implementing a Dalmation
Toadflax control plan to be prepared and provided by the Lessor no later than
May 15, 2006. The Lessee shall provide up to One Thousand Dollars ($1,000.00)
in labor, and the Lessor shall provide all materials necessary to implement said
Dalmation Toadflax control plan.
5.6. In addition to the Lessee's maintenance obligations as otherwise
set forth herein, the Lessee shall be responsible for maintenance of boundary and interior
fences and gates, and maintenance of all livestock watering facilities, including but not
limited to windmills, buried water pipes, pumps and stock tanks, which stock tanks shall
be filled prior to grazing activities and drained along with other water system
infrastructure upon completion of the grazing season. Lessor is responsible for supplying
all materials required for these maintenance activities.
5.7 If the Lessee fails to perform any maintenance or make any repairs
required of it to be made under this Lease, the Lessor may, but shall not be required to,
make such maintenance and repairs on the Lessee's account, and the Lessor may add its
costs and expenses for such repairs or replacements as additional rent due to the Lessor
under this Lease. Such amount shall then be paid to the Lessor by the Lessee within
thirty (30) days after receiving written notice from the Lessor of the costs and expenses
paid by the Lessor for such maintenance and repairs.
0
ARTICLE VI. Alterations and Improvements.
6.1 The Lessee shall make no alterations, additions, improvements, or
changes to the Leased Premises or the improvements located thereon without the prior
written approval of the Lessor. Any such alterations, additions, improvements, or
changes approved by the Lessor shall be done by the Lessee in a good and workmanlike
manner and shall be in compliance with all applicable building and zoning laws, and with
all other applicable laws, statutes, ordinances, orders, rules, regulations, and requirements
of all federal, state, and county governments and the appropriate departments,
commissions, boards, and officers thereof.
6.2 The Lessee hereby indemnifies and agrees to hold the Lessor
harmless from all liens, claims, or charges on account of any alterations, additions,
improvements, or changes made to the Leased Premises or the improvements located
thereon by the Lessee.
6.3 The Lessee shall be responsible for construction (and maintenance)
of any temporary fencing necessary to exclude cattle from an area or to facilitate
rotational grazing. Such temporary fencing shall be the property of the Lessee, except as
other wise agreed by the parties in writing. This does not include the construction or
maintenance of grazing exclosures used for monitoring purposes. The Lessor will provide
all materials necessary for construction and maintenance of such temporary fencing.
ARTICLE VII. Covenant of Title and Quiet Enjoyment
7.1 The Lessor covenants that it is well seized of and has good title to
lease the Property and to sublease the Colorado Lease Lands, and does warrant and will
defend the title thereto and will indemnify the Lessee against any damage or expense
which the Lessee may suffer by reason of any lien, encumbrance, restriction, or defect in
the title or description herein of the Property and the Colorado Lease Lands existing prior
to the date hereof, except and subject to the following:
a. All easements, covenants, reservations, restrictions, rights -of -way, and
prescriptive or adverse rights, in place or of record;
b. Any restrictions, reservations, or exceptions contained in any United
States or State of Colorado patents of record;
C. All zoning and other governmental rules and regulations; and
d. All oil, gas or other mineral reservations or exceptions of record.
7
0
ARTICLE VIII. Insurance.
8.1 The Lessee, at its sole cost and expense, shall, during the term of
this Lease, procure, pay for, and keep in full force and effect workers compensation
insurance for all of its employees to be engaged in work on the Leased Premises under
this Lease.
8.2 The Lessee, at its sole cost and expense, shall, during the term of
this Lease, procure, pay for, and keep in full force and effect a comprehensive policy of
general liability insurance covering the Leased Premises and insuring the Lessee in an
amount not less than One Million Dollars ($1,000,000.00) covering bodily injury,
including death to persons, personal injury, and property damage liability arising out of a
single occurrence. Such coverage shall include, without limitation, the insureds' liability
for property damage, bodily injuries, and death of persons in connection with the
operation, maintenance, or use of the Leased Premises (including acts or omissions of the
Lessee or of its officers, employees, or agents), liability arising out of lawsuits related to
employment contracts of the Lessee, and protection against liability for non -owned and
hired automobiles. Such coverage shall also include comprehensive automobile liability
insurance and coverage for such other risks as shall customarily be required by private
institutional mortgage lenders with regard to property similar in construction, location,
and use as the Leased Premises under this Lease Agreement.
8.3 All policies of insurance carried by the Lessee shall name the
Lessee as an insured and shall name the Lessor as an additional insured on the policy.
The policy or policies shall contain a provision that the policy or policies cannot be
canceled or materially altered either by the insured or the insurance company until fifteen
(15) days prior written notice thereof is given to the Lessor. Upon issuance or renewal of
any such insurance policy, the Lessee shall furnish a certified copy or duplicate original
of such policy or renewal thereof with proof of premium payment to the Lessor. Any
such policy shall contain waivers of subrogation and waivers of any defense based on
invalidity arising from any act or omission of any assignees or subleases of the Lessee.
8.4 No policy of insurance required by this Article VIII shall include a
deductible clause in an amount greater than Ten Thousand Dollars ($10,000.00). Any
insurance policy purchased by the Lessee must be written by an insurance carrier which
has a current rating by Best's Insurance Reports of "A" (Excellent) or better and a
financial rating of 'W' or better or such equivalent classification as may hereinafter be
required customarily for properties similarly situated and it must be approved by the
Lessee and the insurance carrier must be authorized by law to do business in the State of
Colorado. The Lessee shall not obtain any policy which, under the terms of the carrier's
charter, by-laws, or policy, loss payments are contingent upon action by the carrier's
board of directors, policy holders, or members. All insurance policies carried by the
Lessee may be reviewed at least annually by the Lessor to ascertain that the coverage
provided by such policy adequately covers those risks required by this Article VIII to be
insured by the Lessee.
8.5 In case of the breach of any provision of this Article VII1, the
Lessor, at its option, may take out and maintain, at the expense of the Lessee, such
insurance as the Lessor may deem proper and may bill the costs for such insurance
directly to the Lessee. When so billed, the Lessee shall reimburse the Lessor for the costs
of such insurance within thirty (30) days of being billed.
ARTICLE 1X. Utilities.
9.1 The Lessee agrees to pay all charges for water and sewer service,
gas, electricity, light, heat, power, trash removal, telephone, and other communication
services used, rendered, or supplied upon or in the Leased Premises and the
improvements located thereon, and to indemnify the Lessor against any liability or
damage on such account. All such utility charges shall be paid by the Lessee before the
date the same become delinquent.
ARTICLE X. Signs.
10.1 The Lessee shall not affix, erect, or maintain on the Leased
Premises any sign or placard without first obtaining the Lessor's prior written approval.
The costs of erection and maintenance of such sign or placard shall be the sole
responsibility of the Lessee. In addition, any sign or placard approved by the Lessor shall
comply with all state and county laws, rules, and regulations.
ARTICLE XI. Subletting and Assignment.
11.1 The Lessee covenants and agrees that it will not assign this Lease,
any interest or a part thereof, any right or privilege appurtenant thereto, nor mortgage or
hypothecate the leasehold without the prior written consent of the Lessor. A consent to
one assignment or hypothecation shall not be construed as a consent to any subsequent
assignment or hypothecation; and it is hereby mutually covenanted and agreed that,
unless such written consent has been obtained, any assignment or transfer or attempted
assignment or transfer of this Lease or any interest therein or hypothecation either by the
voluntary or the involuntary act of the Lessee or by operation of law or otherwise, shall,
at the option of the Lessor, tenninate this Lease; and any such purported assignment or
transfer without such consent shall be null and void. The Lessor's consent to any such
assignment shall not relieve the Lessee from any obligation under this Lease unless the
Lessor expressly agrees in writing to relieve the Lessee from such obligation.
11.2 If this Lease shall be assigned, or if the Leased Premises or any
part thereof shall be sublet or occupied by anyone other than the Lessee, without the prior
written consent of the Lessor as required in paragraph l l .l above, the Lessor may collect
rent from the assignee, subtenant, or occupant, and employ the net amount collected to
the rent herein reserved; and no such collection shall be deemed a release of the Lessee
E