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Section 3 Term <br /> A Tenant hereby agrees to lease the Sites from Landlord for the rent of Five <br /> Hundred Dollars ($500 00) per year payable within forty-five (45) days of the Effective Date of <br /> this Lease (thereafter payable annually on the anniversary of this Lease) for a terrn of five (5) <br /> years Rent shall be paid to the City of Redlands or to such other person as Landlord may, from <br /> time to time designate by written notice delivered to Tenant If Tenant fails to receive approval of <br /> a Drilling Permit from Landlord, or if Tenant fails to make application for a Drilling Permit within <br /> twelve (12) months of the Effective Date of this Lease, this Lease shall immediately terminate <br /> with no liability or responsibility by either Landlord or Tenant as to the other and any rent paid by <br /> Tenant shall be refunded to Tenant <br /> B The Tenn of this Lease shall be automatically extended for four (4) <br /> additional five(5)year terms(each a"Renewal Term")unless this Lease is terminated as otherwise <br /> provided for herein Rent shall be increased at the commencement of each Renewal Term by <br /> Twenty Five Percent (25%) of the rent in effect for the previous Term or Renewal Term <br /> Section 4 Use of Sites <br /> A Subject to the conditions set forth in the Drilling Perinit attached hereto and <br /> incorporated herein by reference as Exhibit C, during the Tenn of this Lease, the Sites shall be <br /> used by Tenant for the purpose of drilling, installing, removing, replacing, maintaining,repairing, <br /> modifying and operating, at its sole expense, the Wells Landlord hereby grants Tenant a license <br /> for ingress and egress to and from the Property twenty-four (24) hours per day, seven (7) days a <br /> week Tenant acknowledges that the Landlord's primary use of that portion of the San Timoteo <br /> Creek, including the Well Sites, is as a nature preserve and agrees to utilize the least intrusive <br /> means of accessing and constructing the Wells as is reasonably feasible as more particularly <br /> described in the "Well Cluster Construction Summary" included in Exhibit "B " Access shall be <br /> over or along an existing unpaved access road (not maintained by Landlord) extending from the <br /> nearest public right-of-way, to the Sites and includes use of that road as a temporary staging area <br /> during drilling and maintenance operations <br /> B All inforination collected by Tenant under this agreement relating to water <br /> conditions in the San Timoteo Creek shall be shared with Landlord Such data shall be submitted <br /> to Landlord in a summary report prepared by Tenant on a quarterly basis Reports may be sent by <br /> email or other electronic methods <br /> Section 5 As Is Condition Except as otherwise expressly stated herein, Tenant is <br /> leasing the Sites in"as is"condition and Landlord does not represent that the Sites are suitable for <br /> Tenant's intended use Tenant is responsible to undertake such due diligence as it deems necessary <br /> to determine the condition and suitability of the Sites <br /> Section b Title and Ouiet Possession Landlord represents and agrees that (a)it is the <br /> owner of the Property, (b)it has the right to enter into this Lease, (c)the person signing this Lease <br /> has the authority to sign on behalf of Landlord, and (d) Tenant is entitled to access to and use of <br /> the Sites as provided herein throughout the Tenn of this Lease, as may be extended <br /> Notwithstanding the foregoing, in the event of any situation that poses an emergency (i C , an <br /> immediate thieat of substantial harm to persons and/or property) which requires entry onto the <br /> 2 <br />