FORM 106

REAL ESTATE LEASE AGREEMENT

(Public Entity is the Lessee)

AGREEMENT, between __________________ (herein referred to as "LESSOR") and __________________ (Governmental Entity) (herein referred to as "LESSEE");

W I T N E S S E T H:

LESSOR leases and rents to LESSEE, and LESSEE leases and rents from LESSOR, the real property described on attached Exhibit "A" (if part of a building is leased, the leased area will be out-lined in red on a sketch of the building). 

The term of this lease is for a period of _____________ (years) (months) commencing on ______________ and terminating on _________________ under the following terms and conditions:

1.  RENT:  LESSEE agrees to pay LESSOR rent for the premises in monthly installments of $________ per (month)(year).

2.  ADDITIONAL RENT:  The parties agree that in addition to the rent, LESSEE agrees to pay or reimburse LESSOR for ________________________________.

3.  PROPERTY OF LESSEE:  LESSEE agrees to provide property insurance on its property.

4.  WARRANTIES:  LESSOR warrants that the premises and all appliances and equipment are in good working condition.

5.  MAINTENANCE ALTERATIONS AND IMPROVEMENTS:   No alteration, additions or improvements will be made to the structure, nor any sign placed upon the leased premises by LESSEE without first obtaining the written consent of LESSOR.  LESSOR agrees to maintain the premises at its cost except for   ________________________________________________.

6.  ENTRY BY LESSOR:  LESSOR shall have the right to enter the leased premises at any reasonable time to examine the same and determine the maintenance and state of repair.

7.  FIRE OR OTHER LOSS:  If any structure shall be damaged by fire, the elements or other causes, LESSOR will cause the same to be promptly repaired and restored unless caused by the acts or negligence of LESSEE or its employees, in which case LESSEE shall promptly restore and repair the premises.  If any structure is so damaged as to be unfit for use or occupancy, the rent of LESSEE shall be adjusted accordingly.  If any structure is destroyed to the extent of fifty percent (50%) or more of its value, LESSEE may, at its option, terminate this lease rather than restore the premises.

8.  TIME OF ESSENCE AND DEFAULT:  Time is of the essence of this agreement.  If LESSEE defaults in any of the terms of this agreement for a period of ten (10) days after written notice of default has been sent by LESSOR, then LESSOR, at its option and in addition to all other legal and equitable remedies, may declare this lease forfeited and terminated and re-enter and repossess the leased premises.  Upon such forfeiture and termination, all rights of LESSEE under this agreement shall immediately terminate.

      9.  RENEWALS:   Upon termination of this lease, LESSEE shall have the right to renew it for _________ additional _________ (year)(month) periods by giving written notice of renewal at least ________ days before the termination of this lease or any renewal thereof.  All renewals of this lease shall be under all of the same terms and conditions of this lease, or as agreed by the parties.

      10. ASSIGNMENT OR SUBLETTING PROHIBITED:  LESSEE shall not assign this lease nor sublet the whole or any part thereof without the written consent of LESSOR, which consent shall not be unreasonably withheld. 

11. USE OF PROPERTY:  Lessee will use the property for the purpose of _________________________ and shall at all times comply with all laws, regulations and ordinances.  The Lessee's use of the property shall not be changed without the consent of Lessor.

12. ENTIRE AGREEMENT: This is the entire agreement of the parties and can only be modified or amended in writing by the parties.

13. ATTORNEY FEES:  If action is brought to enforce the terms or provisions of this lease, or to enforce forfeiture for default, or to collect damages for breach, the prevailing party in such action shall be entitled to recover from the losing party reasonable attorney fees together with costs authorized by law.  In addition, LESSEE agrees to pay the sum of $______________ for costs and attorney fees for each notice of default served upon LESSEE by LESSOR. 

14. SERVICE OF NOTICES:  Any notice may be served upon LESSOR by certified mail to LESSOR at _____________________________ _______________________________, and any notice may be served upon LESSEE by certified mail to LESSEE at _____________________________ _______________________________.  Service of a notice by certified mail shall be deemed complete upon the date of the postmark by certified mail.  Either party may change the address for services of notice by written notice to the other party. 

  DATED this _______ day of _______________, 20____.

Form and content approved by __________________ as attorney for _______________ (Governmental Entity).