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HomeMy WebLinkAboutOrdinance #4291 - Lease Real Property for a Term in Excess of Twenty Years Containing 3.944 Acres Located on Lake Canton ORDINANCE NO. 4291 AN ORDINANCE AUTHORIZING A LEASE REAL PROPERTY FOR A TERM IN EXCESS OF TWENTY (20) YEARS FOR REAL PROPERTY OWNED BY THE CITY OF CANTON CONTAINING 3.944 ACRES, MORE OR LESS, LOCATED ON LAKE CANTON AND EAST OF N DAL BAR ROAD CANTON IL 61520 AND SOUTH OF E OLD BEACH ROAD, CANTON IL 61520 WHEREAS, the City of Canton owns the following described real property: Part of the Northeast Quarter of Section 30, Township 7 North, Range 5 East of the Fourth Principal Meridian, more particularly described as follows: Beginning at an iron rod at the southwest corner of Lot 9 in Old Beach Addition, as shown on Plat of Survey recorded November 7, 2017 as Document No. 1778527 in Slide 539, thence North 74 degrees 20 minutes 57 seconds East (bearings based on Illinois State Plane Coordinate System, NAD83 (2011), West Zone) along the southerly line of said Old Beach Addition 256.75 feet; thence North 77 degrees 19 minutes 27 seconds East continuing along said southerly line 85.61 feet to the northwest corner of Lot 15 in said Old Beach Addition; thence South 01 degrees 09 minutes 00 seconds West along the westerly line of said Old Beach Addition 200.00 feet to the southwest corner of Lot 16 in said Old Beach Addition; thence South 22 degrees 57 minutes 21 seconds East continuing along said westerly line 197.37 feet to the southwest corner of Lot 18 in said Old Beach Addition; thence South 01 degrees 19 minutes 00 seconds West continuing along said westerly line and along the extension thereof 328.37 feet; thence North 53 degrees 00 minutes 39 seconds West 387.87 feet; thence North 5 degrees 59 minutes 47 seconds West 237.11 feet; thence North 37 degrees 49 minutes 17 seconds West 52.82 feet; thence North 15 degrees 11 minutes 24 seconds West 115.07 feet to the Point of Beginning. The above described tract contains 3.944 acres, more or less. WHEREAS, pursuant to Section 11-76-2 of the Illinois Municipal Code, 65 ILCS 5/11- 76-2, notice has been given of the proposal to lease such real estate, said notice having first been published on March 1, 2022 and having been published at least once in the Canton Daily Ledger, a newspaper published in the county in which the municipality is located, not less than 15 nor more than 30 days before the date on which it is proposed to adopt this Ordinance; and WHEREAS, pursuant to said notice, this Ordinance was adopted at the regular meeting of the City Council held on June 7, 2022; and WHEREAS, the corporate authorities of the City of Canton has determined that the best interests of the City of Canton and its residents will be served by the approval of the Pease, substantially in the form as attached hereto as "Exhibit A" for the use and purposes set forth therein. NOW, THEREFORE,BE IT ORDAINED by the City Council of the City of Canton, Fulton County, Illinois, as follows: 1. The City Council finds as facts the recitals hereinabove set forth. 2. The Lease to the John W. and Gloria D. Davis Land Trust Number 1, dated August 26, 2010, (attached hereto as "Exhibit A") is hereby approved by the City Council of the City of Canton for the lease of the following described real estate: Part of the Northeast Quarter of Section 30, Township 7 North, Range 5 East of the Fourth Principal Meridian, more particularly described as follows: Beginning at an iron rod at the southwest corner of Lot 9 in Old Beach Addition, as shown on Plat of Survey recorded November 7, 2017 as Document No. 1778527 in Slide 539, thence North 74 degrees 20 minutes 57 seconds East (bearings based on Illinois State Plane Coordinate System, NAD83 (2011), West Zone) along the southerly line of said Old Beach Addition 256.75 feet; thence North 77 degrees 19 minutes 27 seconds East continuing along said southerly line 85.61 feet to the northwest corner of Lot 15 in said Old Beach Addition; thence South 01 degrees 09 minutes 00 seconds West along the westerly line of said Old Beach Addition 200.00 feet to the southwest corner of Lot 16 in said Old Beach Addition; thence South 22 degrees 57 minutes 21 seconds East continuing along said westerly line 197.37 feet to the southwest corner of Lot 18 in said Old Beach Addition; thence South 01 degrees 19 minutes 00 seconds West continuing along said westerly line and along the extension thereof 328.37 feet; thence North 53 degrees 00 minutes 39 seconds West 387.87 feet; thence North 5 degrees 59 minutes 47 seconds West 237.11 feet; thence North 37 degrees 49 minutes 17 seconds West 52.82 feet; thence North 15 degrees 11 minutes 24 seconds West 115.07 feet to the Point of Beginning. The above described tract contains 3.944 acres, more or less. 3. Upon closing of the sale of real estate located adjacent to the above-described real property from the City to the John W. and Gloria D. Davis Land Trust Number 1, dated August 26, 2010, the Mayor is hereby authorized and directed to sign and the City Clerk is hereby authorized and directed to attest to a lease of the aforesaid real estate, and said lease shall be substantially in the form attached hereto as "Exhibit A." The Mayor and/or City Attorney are authorized to make reasonable, final revisions, as they deems necessary, to the Lease that are otherwise consistent with this Ordinance. In the event the sale transaction to the John W. and Gloria D. Davis Land Trust Number 1, dated August 26, 2010, pursuant to Ordinance No. , is terminated prior to closing, then this Ordinance shall be deemed null, void, and of no further effect and the Mayor shall not execute the lease. 4. The Mayor and the Clerk are hereby authorized,respectively, to execute and attest such other documents as may be necessary to the conveyance herein authorized. 5. This ordinance shall be in full force and effect from and after its passage, by a vote of at least three fourths of the corporate authorities now holding office, and approval in the manner provided by law. PASSED THIS 7th DAY OF JUNE, 2022. AYES: Alderperson Justin Nelson, Craig West, Angela Hale, Jeff Fritz, Angela Lingenfelter, Greg Gossett NAYES: None ABSENT: Alderperson Andra Chamberlin, John Lovell APPROVED THIS 7th DAY OF JUNE, 2022. APPROVED: ent A. McDowel M yor ATTES . r Diana P vley-Rock, City Clerk LEASE AGREEMENT This Lease Agreement ("Lease") dated this day of July, 2022 ("Effective Date"), by and between the City of Canton, an Illinois municipal corporation (the "Landlord" or "City"), and the John W. and Gloria D. Davis Land Trust Number 1, dated August 26, 2010 (the "Land Trust") BACKGROUND A. Landlord is a non-home rule municipal corporation in the State of Illinois governed by the Corporate Authorities of the City of Canton, which includes its City Council and Mayor, as may be referred to herein from time-to-time; B. Landlord is the owner of real property in Fulton County, Illinois that is described on Exhibit"A" (hereinafter referred to as the "Premises"); C. The Land Trust intends to assign this Lease within the sooner of(i) twelve (12) months of the Effective Date or (ii) a sale or transfer of any portion of the Premises from the Land Trust to a third party to a homeowner's association formed pursuant to the Illinois General Not For Profit Corporation Act of 1986, as amended (805 ILCS 1051101.01 et seq.) (the "Association") whose initial members are John W. and Gloria D. Davis; D. "Tenant" as used hereinafter shall include the Land Trust and/or the Association, as applicable. E. Tenant desires to lease the Premises together with all improvements and fixtures thereon and appurtenances thereto from Landlord pursuant to the terms of this Lease; and F. Landlord desires to lease the Premises together with all improvements and fixtures thereon and appurtenances thereto to Tenant. AGREEMENT In consideration of the foregoing and the terms, covenants and conditions contained in this Lease, Landlord and Tenant expressly agree as follows: 1. Rent. For the Initial Lease Term, upon execution of this Lease, Tenant shall pay to Landlord rent ("Initial Rent") in the amount of One Thousand and no/100 Dollars ($1,000.00) per year. For any Renewal Term, the "Renewal Term Rent" shall be the Rent payable during the previous Lease Term increased by Five Hundred and no/100 Dollars ($500.00). For purposes of this Lease, the term "Rent" shall include the Initial Term Rent and the Renewal Term Rent. All Rent shall be paid, in advance, in lawful money of the United Page 1 of 13 States, on or before January 1 each year, without any prior demand therefor, to Landlord at the address described in Section 22(e) or such place as Landlord may designate in writing from time to time. Rent for any partial year shall be prorated based on the actual number of days in the partial year and paid in advance at the commencement of the partial year period (as the applicable case may be). 2. Term. The term "Lease Term" shall mean the term of this Lease, which shall include the "Initial Lease Term" and the four (4) "Renewal Lease Terms" described below. The Initial Lease Term shall commence on the Effective Date and continue until July , 2027, unless this Lease is sooner terminated according to its terms or by mutual written agreement. Thereafter, if Tenant is in compliance with its obligations under this Lease at the time of exercise, the Tenant may extend this Lease through four (4), independently exercisable, Renewal Lease Terms, each of which shall be five (5) years in duration. Tenant will provide written notice of the exercise of such Renewal Lease Terms at least ninety (90) calendar days prior to the expiration of the Initial Lease Term or the first of the Renewal Lease Terms, whichever is applicable. All terms and conditions of this Lease shall remain the same during any Renewal Lease Term. 3. Possession. Tenant shall be given possession of the Premises on the Effective Date. 4. Use Of Premises. (a) Tenant's possession of and use of the Premises shall be limited to fishing, boating and other recreational activities for the Association's members and their guests and invitees. (b) No commercial or business use of the Premises shall be permitted without a duly adopted resolution or ordinance by Landlord's Corporate Authorities. (c) No residences, garages, sheds, docks, outbuildings, gazebos, or other structures may be built or placed upon the Premises except as otherwise set forth in this Lease or as may be permitted by a duly adopted resolution or ordinance of Landlord's Corporate Authorities from time-to-time. (d) Tenant and its members shall obey all rules, regulations, and ordinances of the City pertaining to Premises, the lake and surrounding lands and shall not allow violations by Tenant or its members families, guests or any other persons on the Premises. (e) Tenant shall not permit on or near the Premises anything in violation of any law, regulation, rule or ordinance — State, Federal, or local — or the regulations of any public authority, nor use or permit the premises to be used for any immoral or illegal purposes. Page 2 of 13 (f) Tenant shall not cause nor permit any objectionable noise or odor to be emitted from the Leased Property; nor will Tenant keep on the Leased Property any domestic livestock, poultry, or noisy or dangerous dog. (g) Tenant shall not do nor permit anything to be done or remain on the Leased Property or in or on the lake in any way tending to pollute the waters or to create a nuisance or disturb the peace or quiet of the neighborhood or annoy any occupant of neighboring properties. (h) Tenant represents and covenants that no environmentally harmful or toxic materials or dangerous or hazardous substances, or volatile or explosive materials, or other hazardous substances as that term may be defined by any governmental agency with jurisdiction (collectively "Hazardous Substances") will be used or stored by Tenant on the Premises. Tenant shall fully indemnify and hold harmless Landlord from all costs and expenses, including reasonable attorneys' fees, that Landlord may incur as a result of the presence of, release of, or threatened release of Hazardous Substances on the Premises because of any activity, or act or omission, of Tenant, its agents, employees, or invitees during the period described in this paragraph. Landlord represents and warrants that, to the best of Landlord's knowledge, there are no Hazardous Substances on the Premises as of the Effective Date. Landlord shall fully indemnify and hold harmless Tenant from all costs and expenses, including reasonable attorneys' fees, that Tenant may incur as a result of the presence of, release of, or threatened release of Hazardous Substances on the Premises because of any activity, or act or omission, of Landlord, its agents or employees, or invitees during the period described in this paragraph. (i) Representatives of the City may come upon the Premises as follows: i. At any and all times for the purpose of inspecting; ii. At any time to gain needed access to other land; iii. To plant and care for trees and other vegetation. iv. To construct, operate and maintain sewer, water and gas pipes, electrical lines pipes and lines for other services and their appurtenances; V. To improve and protect the shoreline; vi. To do any other work necessary to maintain the lake or its structures; or vii. For any other purpose to the extent that such use does not unreasonably interfere with the use of the Premises by Tenant or Tenant's invitees and agents. (j) The City is hereby released and held harmless from any and all damages, costs, expenses, liabilities, causes of action, or suits arising from or related to the exercising of any of its rights under this Section, including but not limited to the entering upon the Premises for any of the above reasons. 5. Installation of Dock/Slip/Lifts. It is understood by the parties that Tenant intends to install on the shoreline of the Premises (1) boat dock, set of boat slips, and/or boat lifts, including any ramps from the shore thereto (collectively "Boat Dock") for use exclusively Page 3 of 13 by the Association's membersor their guests for periods of no longer than seventy-two (72) hours. In no event shall said Boat Dock have more than six (6) slips/parking spaces for boats without the City's written permission. The installation, location, and construction of said Boat Dock will be permitted subject to the written approval of Mayor or his/her designee. Any modifications to the size, location, configuration, or structure of the Boat Dock must be approved in writing by the Mayor or his/her designee. Said Boat Dock shall not be used for any commercial or business purposes, however, Tenant may charge its members fees or assessments for use of the Boat Dock. No other boat docks, boat slips, boat lifts, swimming platforms, or other similar structures may be placed on the Premises or off the shoreline of the Premises. All maintenance and upkeep of the Boat Dock shall be the Tenant's responsibility and the Boat Dock shall be kept in a neat, clean, and safe condition. Tenant holds the City harmless and releases the City from any and all claims, damages and/or injuries resulting from or related to the installation, construction, maintenance, repair, removal, and use of the Boat Dock. 6. Condition Of Premises. Tenant acknowledges personal inspection and examination of the Premises and all parts thereof, and Tenant accepts the Premises in its existing condition. 7. Real Estate Taxes. During the Lease Term, Tenant shall be responsible for all real estate taxes and assessments for the Premises. Failure to timely pay any real estate taxes and assessments after.the Effective Date of this Lease shall be deemed a default of this Lease. 8. Utilities: No utilities shall be installed on the Premises without the written consent of the Mayor or his/her designee. Notwithstanding the foregoing, Tenant may install underground electrical utilities on the Premises for purposes of operating and safely using the Boat Dock described above, consistent with applicable laws, rules, ordinances, and regulations. To the extent utilities are permitted, Tenant shall be solely responsible for and pay all charges for water, garbage removal, electricity, telephone, cable, satellite/tv, internet, fiber, gas, wastewater treatment and/or disposal, or other service for the Leased Property (collectively "utilities"). Failure to pay such utilities shall be deemed a default of this Lease. Tenant shall also be responsible for the installation, maintenance, removal and/or repair of any water lines, sewer lines, wastewater treatment and/or disposal, private sewage disposal systems, electricity/power lines, internet/telephone/tv connections, fiber lines, gas lines, or other utility connections located upon the Premises. 9. Encumbrances/Liens. Tenant shall not mortgage or otherwise cause or allow any liens or encumbrances to be recorded or filed against the Premises, or the leasehold interest granted by this Lease, at any time. Failure to comply with this Paragraph shall be deemed a default of this Lease and grounds for immediate termination upon written notice by Landlord. 10. Insurance. During the Lease Term: a. Tenant shall procure, pay for and keep in force and effect the following: (comprehensive general liability insurance (including a blanket "contractual" liability endorsement and coverage on operations of independent contractors) insuring against liability for Page 4 of 13 personal injury, bodily injury, death and damage to property occurring in or about, or resulting from an occurrence in or about, the Premises with combined single limit coverage of not less than Two Million Dollars ($2,000,000) on account of bodily injuries to or the death of any one or more persons as a result of any occurrence and Five Hundred Thousand Dollars ($500,000) coverage for property damage. b. All policies of insurance required to be carried by Tenant pursuant to this Section 8: (i) shall name Landlord and such other parties in interest as Landlord designates as additional insureds; (ii) shall be primary insurance which provides that the insurer shall be liable for the full amount of the loss up to and including the total amount of liability set forth in the declarations without the right of contribution from any other insurance coverage of Landlord; (iii) shall be written by companies authorized to do business in the State of Illinois, shall be rated A- or better by Best's Insurance Rating System, or its equivalent and shall contain a deductible not exceeding Ten Thousand Dollars ($10,000); and (iv) shall provide that such policy shall not be subject to cancellation, lapse or change except after at least ten (10) days prior written notice to Landlord. C. A certificate of the insurer, certifying that such policy has been issued, providing the coverage required by this paragraph, and containing the provisions specified herein, shall be delivered to Landlord prior to or on the Effective Date and upon renewal of such policies, but not less than thirty (30) days prior to the expiration of the term for such coverage. d. Tenant shall obtain whatever contents insurance Tenant deems desirable, it being acknowledged by Tenant that Landlord has no obligation to Tenant for any damages to any of Tenant's personal property in or on the Premises. e. Within thirty (30) days of the end of the Initial Lease Term or any Renewal Lease Terms, Landlord may increase the coverage and/or deductible requirements contained in this Section upon written notice to Tenant. 11. Maintenance and Repair of the Premises. (a) Tenant will maintain the Premises during the Lease Term, in its present condition except as otherwise stated in this Lease. (b) Tenant shall keep the Leased Property neat and clean and free from noxious weeds and debris. (c) Tenant shall not permit any of the Premises to be denuded of vegetation or to be cultivated in such manner as to cause or permit soil erosion. Further, Tenant agrees to maintain the shoreline in good condition and must take reasonable and legal steps to protect the lake from pollution, undue erosion, and other injury. (d) Tenant shall care for and protect from injury all shade and ornamental trees, shrubbery, and sod, and may remove undergrowth and noxious weeds from the Premises; however, Tenant shall not remove, trim, or permit the removal or trimming of any trees more Page 5 of 13 than three inches in diameter without the consent of the City (which may be granted by the Mayor or his/her designee). Notwithstanding the foregoing, Tenant intends to do an initial sweep of shrubs, trees, undergrowth and noxious weeds, which the City agrees to permit subject to approval of the removal of said items by the City Engineer; (e) Tenant shall not allow yard waste including grass clippings, leaves or like material to enter the lake from the Premises (f) Tenant shall not use herbicides nor insecticides near the water of the lake nor anywhere rain may wash these chemicals into the lake except with the written permission of the Water Superintendent of the City of Canton, Illinois; (g) Tenant will maintain all improvements in good repair; (h) Exclude the general public from the Premises and from that part of the lake within 25 feet of the shoreline of the Premises (except as to navigation); (i) At the expiration of the Lease Term, Tenant shall deliver up the Premises in as good condition in which they were at the commencement of this Lease, ordinary wear and tear excepted. 12. Water Level. It is understood that the City will not be responsible for maintaining any certain lake level and will not be responsible for damage caused to Tenant's improvements (including, without limitation, the Boat Dock) or other property of Tenant by the action of the waters. The City reserves the right to raise/lower the water levels of Lake Canton, and the City shall not be responsible for damage caused to Tenant's improvements (including, without limitation, the Boat Dock) or other property of Tenant by said raising/lowering of the water levels of Lake Canton. 13. Condemnation. a. Right to Terminate. If as a result of any taking by means of the exercise of the power of eminent domain (including any voluntary sale or transfer by Landlord to any condemnor under threat of condemnation) all or any portion of the Premises, Tenant shall have the option to terminate this Lease. Tenant must exercise such option within thirty (30) days of the date that title vests, in the condemnor, to be'effective on the date that possession of that portion condemned is taken by the condemnor. b. Rebate of Prepaid Rent. If any part of the Premises is taken by condemnation and this Lease is not terminated, then Landlord shall rebate an amount of Rent equal to the following equation: Rent multiplied by a fraction, the numerator of which is the number of days remaining in the Lease Term and the denominator is 365 and multiplied by another fraction, the numerator of which is the number of acres transferred due to condemnation and the denominator of which is acreage of the Premises upon the execution of this Lease. Page 6 of 13 C. Division of Condemnation Award. Any award made as a result of any condemnation of the Premises shall belong to and be paid to Landlord, and Tenant hereby assigns to Landlord all of its right, title and interest in any such award; provided, however, Tenant shall be entitled to receive any condemnation award that is made to Tenant for loss of or damage to Tenant's trade fixtures, removable personal property and unamortized Alterations that have been paid for by Tenant, together with any relocation expenses as may be payable to Tenant for the relocation of Tenant's property. 14. Holdover by Tenant. If Tenant remains in possession of the Premises without the written consent of Landlord after the termination or expiration of this Lease, Landlord may recover possession of the Premises in the manner provided by law, and Tenant shall be subject to all the terms and conditions hereof and shall pay rent in an amount that equals the Rent multiplied by twenty-five percent (25%) on or before the first day of each month following the end of the Lease Term. 15. Default and Remedies. (a) Events of Tenant's Default. Each of the following shall be considered an "Event of Default": i. Tenant shall have failed to pay Rent or any money due under this Lease when due and such failure is not cured within five (5) days after delivery of written notice from Landlord specifying such failure to pay; or ii. Tenant shall have failed to perform any other term, covenant, or condition of this Lease except those requiring the payment of Rent or any money due under this Lease and Tenant shall have failed to cure such breach within thirty (30) days after written notice from Landlord specifying the nature of such breach; provided, however, that if Tenant's default cannot be reasonably cured within such thirty (30) day period, then Tenant shall not be in default if it commences to cure the default within such thirty (30) day period and thereafter diligently prosecutes such cure to completion; or iii. A receiver or similar officer becomes entitled to the leasehold interest of Tenant under this Lease; or iv. Levy, seizure, attachment or sale of the leasehold interest of Tenant under this Lease; or V. Tenant is dissolved, voluntarily or involuntarily, or is no longer in good standing with the Illinois Secretary of State; vi. Tenant becomes insolvent or unable to pay debts as they mature, or admits in writing to such effect, or makes an assignment for the benefit of creditors, or a Page 7 of 13 proceeding is instituted by or against Tenant alleging that Tenant is insolvent or unable to pay debts as they mature, or a petition under any bankruptcy or insolvency law is brought by or against Tenant. 16. Landlord's Remedies. Upon the occurrence of any Event of Default, Landlord may, at its option, without notice to or demand upon Tenant, exercise any one of more of the following remedies in addition to any others available at law or in equity: (a) Landlord may, with or without terminating this Lease, accelerate all Rent due hereunder and such accelerated Rent shall be immediately due and payable; and (b) Landlord may terminate this Lease by ten (10) days written notice to Tenant. Upon termination of this Lease, Landlord may immediately recover from Tenant all damages proximately resulting from the termination, including the cost of recovering the Premises, the unpaid rent that had been earned at the time of the termination of this Lease and the present value of unpaid rent that would have been earned from the date of such termination until the time this Lease would have expired. All such amounts shall be immediately due and payable from Tenant. 17. Performance by Landlord . In the event Tenant fails to perform any of its obligations under this Lease, Landlord may, at its option, perform such obligations on Tenant's behalf without waiving the Event of Default. Tenant agrees to repay Landlord any expenses incurred in such performance plus interest of twelve percent (12%) per annum from the date of Landlord's payment or incurrence of such expenses. 18. Waiver. No delay or omission in the exercise of any right or remedy accruing to either party upon any breach by the other party under this Lease shall impair such right or remedy or be construed as a waiver of any such breach. The waiver by either party of any breach of any provision of this Lease shall not be a waiver of any subsequent breach of the same or any other provision herein contained. 19. Duty to Mitigate Damages. In the event of a default by a party, the other party covenants and agrees to take any and all reasonable and appropriate action needed to mitigate damages incurred as a result of any such default. 20. Assignment and Subletting. Tenant shall not assign this Lease or sublet all or any part of the Premises without the prior written consent of Landlord, which may be withheld in Landlord's sole discretion. Notwithstanding the foregoing, within the sooner of (i) twelve (12) months of the Effective Date or (ii) a sale or transfer of any portion of the Premises from the Land Trust to a third party, the Land Trust shall assign this Lease to the Association on a form satisfactory to the Landlord. Nothing in this Section prohibits the Tenant from establishing rules and regulations for the Association. Page 8 of 13 21. Indemnification. Tenant shall indemnify, defend and hold Landlord harmless from and against all losses, damages, liabilities and expenses (including, but not limited to, reasonable attorneys fees),judgments, fines or penalties that result from any claim, action, suit or proceeding (whether civil, criminal, administrative or investigative, including associated appeals) arising out of any claims including, but not limited to, injuries to persons or property, sustained in or upon the Premises and/or the Boat Dock during Tenant's possession or use thereof except to the extent of negligence of or use by Landlord or its agents, invitees and guests. Landlord shall indemnify, defend and hold Tenant harmless from and against all losses, damages, liabilities and expenses (including, but not limited to, reasonable attorneys fees),judgments, fines or penalties that result from any claim, action, suit or proceeding (whether civil, criminal, administrative or investigative, including associated appeals) arising out of any claims including, but not limited to, injuries to persons or property, sustained in or upon the Premises prior to Tenant's possession thereof and the use of the Premises by Landlord or Landlord's agents and guests after the Tenant's possession except to the extent of negligence of Tenant or its agents, invitees and guests. 22. General Provisions. (a) No change to or modification of this Lease shall be valid unless that change or modification is in writing and is executed by the parties hereto. (b) No term, covenants or condition of this Lease shall be deemed to have been waived unless such waiver is in writing and is signed by the waiving party. The acceptance of any rent hereunder by Landlord shall not be deemed to be a waiver of any breach by Tenant of this Lease. (c) This Lease contains the entire agreement between the parties with respect to the subject matter hereof. (d) This Agreement may be executed in any number of counterparts, each of which shall be an original, and such counterparts together shall constitute one and the same instrument. (e) All notices, communications and demands hereunder shall be in writing and shall be deemed to have been properly given if (i) delivered in person or (ii) sent by registered or certified mail, postage prepaid, return receipt requested, to: If to the Tenant: with a copy to: Page 9 of 13 If to the Landlord: with a copy to: City of Canton City of Canton ATTN: Mayor ATTN: City Attorney 2 N. Main Street 2 N. Main Street Canton, Illinois 61520 Canton, Illinois 61520 or such other address as may be designated in writing. The notice shall be effective (i) upon delivery and (ii) two (2) days after the date of mailing. (f) In the event any action or legal proceeding is commenced to recover Rent, to terminate this Lease or to enforce any provision in connection with this Lease, the prevailing party shall be entitled to recover as a part of such action or proceedings, or in a separate action brought for that purpose, reasonable attorneys' fees and court costs as may be fixed by the court. (g) Should any provisions of this Lease prove to be invalid or illegal, such invalidity or illegality shall in no way affect, impair or invalidate any other provision hereof, and such remaining provisions shall remain in full force and effect. (h) Time is the essence with respect to the performance of every provision of this Lease in which time of performance is a factor. (i) The captions used in this Lease are for convenience only and shall not be considered in the construction or interpretation of any provision hereof. 0) This Lease shall, subject to the provisions regarding assignment, apply to and bind the respective heirs, successors, executors, administrators and assigns of Landlord and Tenant, including the members of the Association. The Association shall be responsible for ensuring compliance with the terms of this Lease by its members. (k) This Lease shall be construed and enforced in accordance with the internal laws, and not the law of conflicts, of the State of Illinois. (1) Each party had the opportunity to be represented by legal counsel during the negotiation resulting in this Agreement. The parties agree that the rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement (m) When the context of this Lease requires, the neuter gender includes the masculine, the feminine, a partnership or corporation or limited liability company or joint venture, and the singular includes the plural. Page 10 of 13 (n) Landlord represents and warrants that: (i) as of the Effective Date it is the fee owner of the Premises; (ii) it has full power and authority to execute this Lease and, as of the Effective Date, to convey to Tenant the leasehold estate granted herein; (iii) Tenant's quiet enjoyment of the Premises shall not be disturbed by Landlord, any party claiming through Landlord, or any other party, so long as Tenant is not in default hereunder beyond applicable grace period; and (iv) Landlord's signatory to this Lease is authorized to execute the Lease on behalf of the Landlord. [Remainder of Page Left Intentionally Blank] Page 11 of 13 Executed by the parties hereto as of the day and year first above written. LANDLORD: TENANT: CITY OF CANTON JOHN W. AND GLORIA D. DAVIS LAND TRUST NUMBER 1, Dated August 26, 2010 Ke t McDowell, Mayor John W. Davis, Co-Trustee Attest: Diana Pavley-Rock, City Clerk Gloria D. Davis, Co-Trustee Page 12 of 13 Exhibit A Legal Description of Premises Part of the Northeast Quarter of Section 30, Township 7 North, Range 5 East of the Fourth Principal Meridian, more particularly described as follows: Beginning at an iron rod at the southwest corner of Lot 9 in Old Beach Addition, as shown on Plat of Survey recorded November 7, 2017 as Document No. 1778527 in Slide 539, thence North 74 degrees 20 minutes 57 seconds East (bearings based on Illinois State Plane Coordinate System,NAD83 (2011), West Zone) along the southerly line of said Old Beach Addition 256.75 feet; thence North 77 degrees 19 minutes 27 seconds East continuing along said southerly line 85.61 feet to the northwest corner of Lot 15 in said Old Beach Addition; thence South 01 degrees 09 minutes 00 seconds West along the westerly line of said Old Beach Addition 200.00 feet to the southwest corner of Lot 16 in said Old Beach Addition; thence South 22 degrees 57 minutes 21 seconds East continuing along said westerly line 197.37 feet to the southwest corner of Lot 18 in said Old Beach Addition; thence South 01 degrees 19 minutes 00 seconds West continuing along said westerly line and along the extension thereof 328.37 feet; thence North 53 degrees 00 minutes 39 seconds West 387.87 feet; thence North 5 degrees 59 minutes 47 seconds West 237.11 feet; thence North 37 degrees 49 minutes 17 seconds West 52.82 feet; thence North 15 degrees 11 minutes 24 seconds West 115.07 feet to the Point of Beginning. The above described tract contains 3.944 acres, more or less. Page 13 of 13 kill T:;:4021556 i.220-371 r PATRICK O'BRIAN COUNTY CLERK & RECORDER FULTON COUNTY, IL RECORDED ON 08/181'2022 0S:26 HM RECORDING FEE 67.00 PAGES: 12 - The Above Space for Recorder's Use Only LEASE AGREEMENT This Lease Agreement ("Lease") dated this 1711' day of August, 2022 ("Effective Date"), by and between the City of Canton, an Illinois municipal corporation (the "Landlord" or "City"), and the John W. and Gloria D. Davis Land Trust Number 1, dated August 26, 2010 (the "Land Trust") BACKGROUND A. Landlord is a non-home rule municipal corporation in the State of Illinois governed by the Corporate Authorities of the City of Canton, which includes its City Council and Mayor, as may be referred to herein from time-to-time; B. Landlord is the owner of real property in Fulton County, Illinois that is described on Exhibit"A" (hereinafter referred to as the "Premises"); C. The Land Trust intends to assign this Lease within the sooner of (i) twelve (12) months of the Effective Date or(ii) a sale or transfer of any portion of the Premises from the Land Trust to a third party to a homeowner's association formed pursuant to the Illinois General Not For Profit Corporation Act of 1986, as amended (805 ILCS 105/101.01 et seq.) (the "Association")whose initial members are-John W. and Gloria D. Davis; D. "Tenant" as used hereinafter shall include the Land Trust and/or the Association, as applicable. E. Tenant desires to lease the Premises together with all improvements and fixtures thereon and appurtenances thereto from Landlord pursuant to the terms of this Lease; and r F. Landlord desires to lease the Premises together with all improvements and fixtures thereon and appurtenances thereto to Tenant. Page 1 of 12 AGREEMENT In consideration of the foregoing and the terms, covenants and conditions contained in this Lease,Landlord and Tenant expressly agree as follows: 1. Rent. For the Initial Lease Term, upon execution of this Lease, Tenant shall pay to Landlord rent("Initial Rent") in the amount of One Thousand and no/100 Dollars ($1,000.00) per year. For any Renewal Term, the"Renewal Term Rent" shall be the Rent payable during the previous Lease Term increased by Five Hundred and no/100 Dollars ($500.00). For purposes of this Lease, the term "Rent" shall include the Initial Term Rent and the Renewal Term Rent. All Rent shall be paid, in advance, in lawful money of the United States, on or before January 1 each year, without any prior demand therefor, to Landlord at the address described in Section 22(e) or such place as Landlord may designate in writing from time to time. Rent for any partial year shall be prorated based on the actual number of days in the partial year and paid in advance at the commencement of the partial year period (as the applicable case may be). 2. Term. The term "Lease Tenn" shall mean the term of this Lease, which shall include the "Initial Lease Term" and the four (4) "Renewal Lease Terms" described below. The Initial Lease Tenn shall commence on the Effective Date and continue until August 16, 2027, unless this Lease is sooner terminated according to its terms or by mutual written agreement. Thereafter, if Tenant is in compliance with its obligations under this Lease at the time of exercise, the Tenant may extend this Lease through four (4), independently exercisable, Renewal Lease Terms, each of which shall be five (5) years in duration. Tenant will provide written notice of the exercise of such Renewal Lease Terins at least ninety (90) calendar days prior to the expiration of the Initial Lease Tenn or the first of the Renewal Lease Terms,whichever is applicable. All terms and conditions of this Lease shall remain the same during any Renewal Lease Term. 3. Possession. Tenant shall be given possession of the Premises on the Effective Date. 4. Use Of Premises. (a) Tenant's possession of and use of the Premises shall be limited to fishing, boating and other recreational activities for the Association's members and their guests and invitees. (b) No commercial or business use of the Premises shall be permitted without a duly adopted resolution or ordinance by Landlord's Corporate Authorities, except as authorized in Section 5,Installation of Dock/Slip/Lifts, which shall not be considered a commercial use. (c) No residences, garages, sheds, docks, outbuildings, gazebos, or other structures may be built or placed upon the Premises except as otherwise set forth in this Lease or as may be permitted by a duly adopted resolution or ordinance of Landlord's Corporate Authorities from time-to-time. Page 2 of 12 (d) Tenant and its members shall obey all rules,regulations,and ordinances of the City pertaining to Premises,the lake and surrounding lands and shall not allow violations by Tenant or its members families, guests or any other persons on the Premises. (e) Tenant shall not permit on or near the Premises anything in violation of any law, regulation, rule or ordinance—State, Federal, or local—or the regulations of any public authority, nor use or permit the premises to be used for any immoral or illegal purposes. (f) Tenant shall not cause nor permit any objectionable noise or odor to be emitted from the Leased Property; nor will Tenant keep on the Leased Property any domestic livestock, poultry, or noisy or dangerous dog. (g) Tenant shall not do nor permit anything to be done or remain on the Leased Property or in or on the lake in any way tending to pollute the waters or to create a nuisance or disturb the peace or quiet of the neighborhood or annoy any occupant of neighboring properties. (h) Tenant represents and covenants that no environmentally harmful or toxic materials or dangerous or hazardous substances, or volatile or explosive materials, or other hazardous substances as that term may be defined by any governmental agency with jurisdiction(collectively "Hazardous Substances") will be used or stored by Tenant on the Premises. Tenant shall fully indemnify and .hold harmless Landlord from all costs and expenses, including reasonable attorneys' fees, that Landlord may incur as a result of the presence of, release of, or threatened release of Hazardous Substances on the Premises because of any activity, or act or omission, of Tenant, its agents, employees, or invitees during the period described in this paragraph. Landlord represents and warrants that, to the best of Landlord's knowledge, there are no Hazardous Substances on the Premises as of the Effective Date. Landlord shall fully indemnify and hold harmless Tenant from all costs and expenses, including reasonable attorneys' fees, that Tenant may incur as a result of the presence of, release of, or threatened release of Hazardous Substances on the Premises because of any activity, or act or omission, of Landlord, its agents or employees, or invitees during the period described in this paragraph. (i) Representatives of the City may come upon the Premises as follows: i. At any and all times for the purpose of inspecting; ii. At any time to gain needed access to other land; iii. To plant and care for trees and other vegetation. iv. To construct, operate and maintain sewer, water and gas pipes, electrical lines pipes and lines for other services and their appurtenances; V. To improve and protect the shoreline; vi. To do any other work necessary to maintain the lake or its structures; or vii. For any other purpose to the extent that such use does not unreasonably interfere with the use of the Premises by Tenant or Tenant's invitees and agents. Page 3 of 12 (j) The City is hereby released and held harmless from any and all damages, costs, expenses, liabilities, causes of action, or suits arising from or related to the exercising of any of its rights under this Section, including but not limited to the entering upon the Premises for any of the above reasons. 5. Installation of Dock/Slip/Lifts. It is understood by the parties that Tenant intends to install on the shoreline of the Premises(1)boat dock,set of boat slips,and/or boat lifts,including any ramps from the shore thereto (collectively "Boat Dock") for use exclusively by the Association's members or their guests for periods of no longer than seventy-two (72) hours. In no event shall said Boat Dock have more than six(6) slips/parking spaces for boats without the City's written permission.The installation,location,and construction of said Boat Dock will be permitted subject to the written approval of Mayor or his/her designee. Any modifications to the size, location, configuration, or structure of the Boat Dock must be approved in writing by the Mayor or his/her designee. Said Boat Dock shall not be used for any commercial or business purposes, however, Tenant may charge its members fees or assessments for use of the Boat Dock. No other boat docks, boat slips, boat lifts, swimming platforms, or other similar structures may be placed on the Premises or off the shoreline of the Premises.All maintenance and upkeep of the Boat Dock shall be the Tenant's responsibility and the Boat Dock shall be kept in a neat, clean, and safe condition.Tenant holds the City harmless and releases the City from any and all claims, damages and/or injuries resulting from or related to the installation, construction, maintenance, repair, removal, and use of the Boat Dock. 6. Condition Of Premises. Tenant acknowledges personal inspection and examination of the Premises and all parts thereof, and Tenant accepts the Premises in its existing condition. 7. Real Estate Taxes. During the Lease Term,Tenant shall be responsible for all real estate taxes and assessments for the Premises. Failure to timely pay any real estate taxes and assessments after the Effective Date of this Lease shall be deemed a default of this Lease. 8. Utilities: No utilities shall be installed on the Premises without the written consent of the Mayor or his/her designee.Notwithstanding the foregoing, Tenant may install underground electrical utilities on the Premises for purposes of operating and safely using the Boat Dock described above, consistent with applicable laws, rules, ordinances, and regulations. To the extent utilities are permitted;Tenant shall be solely responsible for and pay all charges for water,garbage removal, electricity,telephone, cable, satellite/tv, internet, fiber, gas, wastewater treatment and/or disposal, or other service for the Leased Property (collectively "utilities"). Failure to pay such utilities shall be deemed a default of this Lease.Tenant shall also be responsible for the installation, maintenance, removal and/or repair of any water lines, sewer lines, wastewater treatment and/or disposal, private sewage disposal systems, electricity/power lines, internet/telephone/tv connections, fiber lines, gas lines, or other utility connections located upon the Premises. 9. Encumbrances/Liens. Tenant shall not mortgage or otherwise cause or allow any liens or encumbrances to be recorded or filed against the Premises,or the leasehold interest granted by this Lease, at any time. Failure to comply with this Paragraph shall be deemed a default of this Lease and grounds for immediate termination upon written notice by Landlord. Page 4 of 12 10. Insurance. During the Lease Term: a. Tenant shall procure, pay for and keep in force- and effect the following: (comprehensive general .liability insurance (including a blanket "contractual" liability endorsement and coverage on operations of independent contractors) insuring against liability for personal injury, bodily injury, death and damage to property occurring in or about, or resulting from an occurrence in or about,the Premises with combined single limit coverage of not less than Two Million Dollars ($2,000,000) on account of bodily injuries to or the death of any one or more persons as a result of any occurrence and Five Hundred Thousand Dollars ($500,000) coverage for property damage. b. All policies of insurance required to be carried by Tenant pursuant to this Section 8: (i) shall name Landlord-and such other parties in interest as Landlord designates as additional insureds; (ii) shall be primary insurance which provides that the insurer shall be liable for the full amount of the loss up to and including the total amount of liability set forth in the declarations without the right of contribution from any other insurance coverage of Landlord; (iii) shall be written by companies authorized to do business in the State of Illinois, shall be rated A- or better by Best's Insurance Rating System, or its equivalent and shall contain a deductible not exceeding Ten Thousand Dollars ($10,000); and (iv) shall provide that such policy shall not be subject to cancellation, lapse or change except after at least ten (10) days prior written notice to Landlord. C. A certificate of the insurer, certifying that such policy has been issued, providing the coverage required by this paragraph, and containing the provisions specified herein, shall be delivered to Landlord prior to or on the Effective Date and upon renewal of such policies, but not less than thirty (30) days prior to the expiration of the term for such coverage. d. Tenant shall obtain whatever contents insurance Tenant deems desirable, it being acknowledged by Tenant that Landlord has no obligation to Tenant for any damages to any of Tenant's personal property in or on the Premises. e. Within thirty (30) days of the end of the Initial Lease Term or any Renewal Lease Terms, Landlord may increase the coverage and/or deductible requirements contained in this Section upon written notice to Tenant. 11. Maintenance and Repair of the Premises. (a) Tenant will maintain the Premises during the Lease Term, in its present condition except as otherwise stated in this Lease. (b) Tenant shall keep the Leased Property neat and clean and free from noxious weeds and debris. (c) Tenant shall not permit any of the Premises to be denuded of vegetation or to be cultivated in such manner as to cause or permit soil erosion. Further, Tenant agrees to maintain Page 5 of 12 the shoreline in good condition and must take reasonable and legal steps to protect the lake from pollution, undue erosion, and other injury. (d) Tenant shall care for and protect from injury all shade and ornamental trees, shrubbery,and sod,and may remove undergrowth and noxious weeds from the Premises;however, Tenant shall not remove, trim, or permit the removal or trimming of any trees more than three inches in diameter without the consent of the City (which may be granted by the Mayor or his/her designee). Notwithstanding the foregoing, Tenant intends to do an initial sweep of shrubs, trees, undergrowth and noxious weeds, which the City agrees to permit subject to approval of the removal of said items by the City Engineer; (e) Tenant shall not allow yard waste including grass clippings, leaves or like material to enter the lake from the Premises (f) Tenant shall not use herbicides nor insecticides near the water of the lake nor anywhere rain may wash these chemicals into the lake except with the written permission of the Water Superintendent of the City of Canton,Illinois; (g) Tenant will maintain all improvements in good repair; (h) Exclude the general public from the Premises and from that part of the lake within 25 feet of the shoreline of the Premises (except as to navigation); (i) At the expiration of the Lease Term,Tenant shall deliver up the Premises in as good condition in which they were at the commencement of this Lease,ordinary wear and tear excepted. 12. Water Level. It is understood that the City will not be responsible for maintaining any certain lake level and will not be responsible for damage caused to Tenant's improvements (including, without limitation, the Boat Dock) or other property of Tenant by the action of the waters. The City reserves the right to raise/lower the water levels of Lake Canton, and the City shall not be responsible for damage caused to Tenant's improvements (including, without limitation, the Boat Dock) or other property of Tenant by said raising/lowering of the water levels of Lake Canton. 13. Condemnation. a. Right to Terminate. If as a result of any taking by means of the exercise of the power of eminent domain(including any voluntary sale or transfer by Landlord to any condemnor under threat of condemnation) all or any portion of the Premises, Tenant shall have the option to terminate this Lease. Tenant must exercise such option within thirty(30)days of the date that title vests, in the condemnor, to be effective on the date that possession of that portion condemned is taken by the condemnor. b. Rebate of Prepaid Rent. If any part of the Premises is taken by condemnation and this Lease is not terminated, then Landlord shall rebate an amount of Rent equal to the following equation: Rent multiplied by a fraction, the numerator of which is the number of days remaining Page 6 of 12 in the Lease Term and the denominator is 365 and multiplied by another fraction, the numerator of which is the number of acres transferred due to condemnation and the denominator of which is acreage of the Premises upon the execution of this Lease. C. Division of Condemnation Award. Any award made as a result of any condemnation of the Premises shall belong to and be paid to Landlord, and Tenant hereby assigns to Landlord all of its right, title and interest in any such award; provided, however, Tenant shall be entitled to receive any condemnation award that is made to Tenant for loss of or damage to Tenant's trade fixtures, removable personal property and unamortized Alterations that have been paid for by Tenant, together with any relocation expenses as may be payable to Tenant for the relocation of Tenant's property. 14. Holdover by Tenant. If Tenant remains in possession of the Premises without the written consent of Landlord after the termination or expiration of this Lease,Landlord may recover possession of the Premises in the manner provided by law, and Tenant shall be subject to all the terms and conditions hereof and shall pay rent in an amount that equals the Rent multiplied by twenty-five percent(25%) on or before the first day of each month following the end of the Lease Term. 15. Default and Remedies. (a) Events of Tenant's Default. Each of the following shall be considered an"Event of Default": i. Tenant shall have failed to pay Rent or any money due under this Lease when due and such failure is not cured within five (5) days after delivery of written notice from Landlord specifying such failure to pay; or ii. Tenant shall have failed to perform any other term, covenant, or condition of this Lease except those requiring the payment of Rent or any money due under this Lease and Tenant shall have failed to cure such breach within thirty (30) days after written notice from Landlord specifying the nature of such breach; provided, however, that if Tenant's default cannot be reasonably cured within such thirty (30) day period,then Tenant shall not be in default if it commences to cure the default within such thirty (30) day period and thereafter diligently prosecutes such cure to completion; or iii. A receiver or similar officer becomes entitled to the leasehold interest of Tenant under this Lease; or iv. Levy, seizure, attaclmient or sale of the leasehold interest of Tenant under this Lease; or V. Tenant is dissolved, voluntarily or involuntarily, or is no longer in good standing with the Illinois Secretary of State; Page 7 of 12 vi. Tenant becomes insolvent or unable to pay debts as they mature, or admits in writing to such effect, or makes an assignment for the benefit of creditors, or a proceeding is instituted by or against Tenant alleging that Tenant is insolvent or unable to pay debts as they mature, or a petition under any bankruptcy or insolvency law is brought by or against Tenant. 16. Landlord's Remedies. Upon the occurrence of any Event of Default, Landlord may, at its option, without notice to or demand upon Tenant, exercise any one of more of the following remedies in addition to any others available at law or in equity: (a) Landlord may, with or without terminating this Lease, accelerate all Rent due hereunder and such accelerated Rent shall be immediately due and payable; and (b) Landlord may terminate this Lease by ten(10)days written notice to Tenant. Upon termination of this Lease, Landlord may immediately recover from Tenant all damages proximately resulting from the termination, including the cost of recovering the Premises, the unpaid rent that had been earned at the time of the termination of this Lease and the present value of unpaid rent that would have been earned fiom the date of such termination until the time this Lease would have expired. All such amounts shall be immediately due and payable from Tenant. 17. Performance by Landlord . In the event Tenant fails to perform any of its obligations under this Lease, Landlord may, at its option, perform such obligations on Tenant's behalf without waiving the Event of Default. Tenant agrees to repay Landlord any expenses incurred in such performance plus interest of twelve percent (12%) per annum from the date of Landlord's payment or incurrence of such expenses. 18. Waiver. No delay or omission in the exercise of any right or remedy accruing to either party upon any breach by the other party under this Lease shall impair such right or remedy or be construed as a waiver of any such breach. The waiver by either party of any breach of any provision of this Lease shall not be a waiver of any subsequent breach of the same or any other provision herein contained. 19. Duty to Mitilzate Damages. In the event of a default by a party, the other party covenants and agrees to take any and all reasonable and appropriate action needed to mitigate damages incurred as a result of any such default. 20. Assignment and Subletting. Tenant shall not assign this Lease or sublet all or any part of the Premises without the prior written consent of Landlord, which may be withheld in Landlord's sole discretion. Notwithstanding the foregoing, within the sooner of (i) twelve (12) months of the Effective Date or(ii) a sale or transfer of any portion of the Premises from the Land Trust to a third party, the Land Trust shall assign this Lease to the Association on a form satisfactory to the Landlord. Nothing in this Section prohibits the Tenant from establishing rules and regulations for the Association. Page 8 of 12 21. Indemnification. Tenant shall indemnify, defend and hold Landlord harmless from and against all losses, damages, liabilities and expenses (including, but not limited to, reasonable attorneys fees),judgments, fines or penalties that result from any claim, action, suit or proceeding (whether civil, criminal, administrative or investigative, including associated appeals) arising out of any claims including,but not limited to, injuries to persons or property, sustained in or upon the Premises and/or the Boat Dock during Tenant's possession or use thereof except to the extent of negligence of or use by Landlord or its agents, invitees and guests. Landlord shall indemnify, defend and hold Tenant harmless from and against all losses, damages, liabilities and expenses (including, but not limited to, reasonable attorneys fees),judgments, fines or penalties that result from any claim, action, suit or proceeding (whether civil, criminal, administrative or investigative, including associated appeals) arising out of any claims including,but not limited to, injuries to persons or property, sustained in or upon the Premises prior to Tenant's possession thereof and the use of the Premises by Landlord or Landlord's agents and guests after the Tenant's possession except to the extent of negligence of Tenant or its agents, invitees and guests. 22. General Provisions. (a) No change to or modification of this Lease shall be valid unless that change or modification is in writing and is executed by the parties hereto. (b) No tenni, covenants or condition of this Lease shall be deemed to have been waived unless such waiver is in writing and is signed by the waiving party. The acceptance of any rent hereunder by Landlord shall not be deemed to be a waiver of any breach by Tenant of this Lease. (c) This Lease contains the entire agreement between the parties with respect to the subject matter hereof. (d) This Agreement may be executed in any number of counterparts, each of which shall be an original, and such counterparts together shall constitute one and the same instrument. (e) All notices, communications and demands hereunder shall be in writing and shall be deemed to have been properly given if (i) delivered in person or (ii) sent by registered or certified mail,postage prepaid, return receipt requested,to: If to the Tenant: with a copy to: John Davis Froehling, Weber& Schell,LLP 24784 East Old Beach Road Ronald Weber Canton, Illinois 61520 167 West Elm Street Canton, Illinois 61520 If to the Landlord: with a copy to: City of Canton City of Canton ATTN: Mayor ATTN: City Attorney 2 N. Main Street 2 N. Main Street Canton,Illinois 61520 Canton, Illinois 61520 Page 9 of 12 or such other address as may be designated in writing. The notice shall be effective (i) upon delivery and (ii) two (2) days after the date of mailing. (f) In the event any action or legal proceeding is commenced to recover Rent, to terminate this Lease or to enforce any provision in connection with this Lease,the prevailing party shall be entitled to recover.as a part of such action or proceedings, or in a separate action brought for that purpose, reasonable attorneys' fees and court costs as may be fixed by the court. (g) Should any provisions of this Lease prove to be invalid or illegal, such invalidity or illegality shall in no way affect, impair or invalidate any other provision hereof, and such remaining provisions shall remain in full force and effect. (h) Time is the essence with respect to the performance of every provision of this Lease in which time of performance is a factor. (i) The captions used in this Lease are for convenience only and shall not be considered in the construction or interpretation of any provision hereof. 0) This Lease shall, subject to the provisions regarding assignment, apply to and bind the respective heirs, successors, executors, administrators and assigns of Landlord and Tenant, including the members of the Association. The Association shall be responsible for ensuring compliance with the terms of this Lease by its members. (k) This Lease shall be construed and enforced in accordance with the internal laws, and not the law of conflicts, of the State of Illinois. (1) Each party had the opportunity to be represented by legal counsel during the negotiation resulting in this Agreement. The parties agree that the rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement (in) When the context of this Lease requires, the neuter gender includes the masculine, the feminine, a partnership or corporation or limited liability company or joint venture, and the singular includes the plural. (n) Landlord represents and warrants that: (i)as of the Effective Date it is the fee owner of the Premises; (ii) it has frill power and authority to execute this Lease and, as of the Effective Date, to convey to Tenant the leasehold estate granted herein; (iii) Tenant's quiet enjoyment of the Premises shall not be disturbed by Landlord, any party claiming through Landlord, or any other party, so long as Tenant is not in default hereunder beyond applicable grace period; and (iv) Landlord's signatory to this Lease is authorized to execute the Lease on behalf of the Landlord. Page 10 of 12 • v. Executed by the parties hereto as of the day and year first above written. LANDLORD: TENANT: CITY OF CANTON JOHN W. AND GLORIA D. DAVIS LAND TRIAT NUM/BER A dated August 26, 2010 .14 Kent A. McDowell, Ma ohn W. Davis, Co- rustee Attest: Brea J. Sdith-Walters,Acting City Clerk Gloria D. Davis, Co-Trustee Prepared by and return to: John J. McCarthy Attorney at Law 209 East Chestnut Street Suite 1 Canton,Illinois 61520 Page 11 of 12 Exhibit A Legal Description of Premises Part of the Northeast Quarter of Section 30, Township 7 North, Range 5 East of the Fourth Principal Meridian,more particularly described as follows: Beginning at an iron rod at the southwest corner of Lot 9 in Old Beach Addition, as shown on Plat of Survey recorded November 7, 2017 as Document No. 1778527 in Slide 539, thence North 74 degrees 20 minutes 57 seconds East (bearings based on Illinois State Plane Coordinate System, NAD83 (2011), West Zone) along the southerly line of said Old Beach Addition 256.75 feet; thence North 77 degrees 19 minutes 27 seconds East continuing along said southerly line 85.61 feet to the northwest corner of Lot 15 in said Old Beach Addition; thence South 01 degrees 09 minutes 00 seconds West along the westerly line of said Old Beach Addition 200.00 feet to the southwest corner of Lot 16 in said Old Beach Addition; thence South 22 degrees 57 minutes 21 seconds East continuing along said westerly line,197.37 feet to the southwest corner of Lot 18 in said Old Beach Addition; thence South 01 degrees 19 minutes 00 seconds West continuing along said westerly line and along the extension thereof 328.37 feet;thence North 53 degrees 00 minutes 39 seconds West 387.87 feet; thence North 5 degrees 59 minutes 47 seconds West 237.11 feet; thence North 37 degrees 49 minutes 17 seconds West 52.82 feet; thence North 15 degrees 11 minutes 24 seconds West 115.07 feet to the Point of Beginning. The above described tract contains 3.944 acres, more or less. Page 12 of 12 i :40c155o 2203371 PATRICK O'ERIAN COUNTY CLERE•'•. RECORDER FULTON COUNTY, IL RECORDED ON 08/18112022 08:26 AN RECORDING FEE 67.00 PAGES: 12 The Above Space for Recorder's Use Only LEASE AGREEMENT This Lease Agreement ("Lease") dated this 17th day of August, 2022 ("Effective Date"), by and between the City of Canton, an Illinois municipal corporation(the"Landlord" or "City"), and the John W. and Gloria D. Davis Land Trust Number 1, dated August 26, 2010 (the "Land Trust") BACKGROUND A. Landlord is a non-home rule municipal corporation in the State of Illinois governed by the Corporate Authorities of the City of Canton,which includes its City Council and Mayor, as may be referred to herein from time-to-time; B. Landlord is the owner of real property in Fulton County, Illinois that is described on Exhibit"A" (hereinafter referred to as the"Premises"); C. The Land Trust intends to assign this Lease within the sooner of(i) twelve (12) months of the Effective Date or(ii) a sale or transfer of any portion of the Premises from the Land Trust to a third parry to a homeowner's association formed pursuant to the Illinois General Not For Profit Corporation Act of 1986, as amended (805 ILCS 1051101.01 et seq.) (the "Association") whose initial members are John W. and Gloria D. Davis; D. "Tenant" as used hereinafter shall include the Land Trust and/or the Association, as applicable. E. Tenant desires to lease the Premises together-with all improvements and fixtures thereon and appurtenances thereto from Landlord pursuant to the terms of this Lease; and F. Landlord desires to lease the Premises together with all improvements and fixtures thereon and appurtenances thereto to Tenant. Page 1 of 12 AGREEMENT In consideration of the foregoing and the terms, covenants and conditions contained in this Lease,Landlord and Tenant expressly agree as follows: 1. Rent. For the Initial Lease Term, upon execution of this Lease, Tenant shall pay to Landlord rent("Initial Rent") in the amount of One Thousand and no/100 Dollars ($1,000.00) per year. For any Renewal Term,the "Renewal Term Rent" shall be the Rent payable during the previous Lease Term increased by Five Hundred and no/100 Dollars ($500.00). For purposes of this Lease, the term "Rent" shall include the Initial Term Rent and the Renewal Term Rent. All Rent shall be paid, in advance, in lawful money of the United States, on or before January 1 each year, without any prior demand therefor, to Landlord at the address described in Section 22(e) or such place as Landlord may designate in writing from time to time. Rent for any partial year shall be prorated based on the actual number of days in the partial year and paid in advance at the cominencement of the partial year period (as the applicable case may be). 2. Term. The term "Lease Tenn" shall mean the tern of this Lease, which shall include the "Initial Lease Term" and the four (4) "Renewal Lease Terms" described below. The Initial Lease Term shall commence on the Effective Date and continue until August 16, 2027, unless this Lease is sooner terminated according to its terms or by mutual written agreement. Thereafter, if Tenant is in compliance with its obligations under this Lease at the time of exercise, the Tenant may extend this Lease through four (4), independently exercisable, Renewal Lease Terms, each of which shall be five (5) years in duration. Tenant will provide written notice of the exercise of such Renewal Lease Terms at least ninety (90) calendar days prior to the expiration of the Initial Lease Term or the first of the Renewal Lease Terms,whichever is applicable. All terms and conditions of this Lease shall remain the same during any Renewal Lease Term. 3. Possession. Tenant shall be given possession of the Premises on the Effective Date. 4. Use Of Premises. (a) Tenant's possession of and use of the Premises shall be limited to fishing, boating and other recreational activities for the Association's members and their guests and invitees. (b) No commercial or business use of the Premises shall be permitted without a duly adopted resolution or ordinance by Landlord's Corporate Authorities, except as authorized in Section 5, Installation of Dock/Slip/Lifts, which shall not be considered a commercial use. (c) No residences, garages, sheds, docks, outbuildings, gazebos, or other structures may be built or placed upon the Premises except as otherwise set forth in this Lease or as may be permitted by a duly adopted resolution or ordinance of Landlord's Corporate Authorities from time-to-time. Page 2 of 12 (d) Tenant and its members shall obey all rules,regulations, and ordinances of the City pertaining to Premises,the lake and surrounding lands and shall not allow violations by Tenant or its members families, guests or any other persons on the Premises. .(e) Tenant shall not permit on or near the Premises anything in violation of any law, regulation,rule or ordinance— State, Federal, or local—or the regulations of any public authority, nor use or permit the premises to be used for any immoral or illegal purposes. (f) Tenant shall not cause nor permit any objectionable noise or odor to be emitted from the Leased Property; nor will Tenant keep on the Leased Property any domestic livestock, poultry, or noisy or dangerous dog. (g) Tenant shall not do nor permit anything to be done or remain on the Leased Property or in or on the lake in any way tending to pollute the waters or to create a nuisance or disturb the peace or quiet of the neighborhood or annoy any occupant of neighboring properties. (h) Tenant represents and covenants that no environmentally harmful or toxic materials or dangerous or hazardous substances, or volatile or explosive materials, or other hazardous substances as that term may be defined by any governmental agency with jurisdiction(collectively "Hazardous Substances") will be used or stored by Tenant on the Premises. Tenant shall fully indemnify and .hold harmless Landlord from all costs and expenses, including reasonable attorneys' fees, that Landlord may incur as a result of the presence of, release of, or threatened release of Hazardous Substances on the Premises because of any activity, or act or omission, of Tenant, its agents, employees, or invitees during the period described in this paragraph. Landlord represents and warrants that, to the best of Landlord's knowledge, there are no Hazardous Substances on the Premises as of the Effective Date. Landlord shall fully indemnify and hold harmless Tenant from all costs and expenses, including reasonable attorneys' fees, that Tenant may incur as a result of the presence of, release of, or threatened release of Hazardous Substances on the Premises because of any activity, or act or omission, of Landlord, its agents or employees, or invitees during the period described in this paragraph. (i) Representatives of the City may come upon the Premises as follows: i. At any and all times for the purpose of inspecting; ii. At any time to gain needed access to other land; iii. To plant and care for trees and other vegetation. iv. To construct, operate and maintain sewer, water and gas pipes, electrical lines pipes and lines for other services and their appurtenances; V. To improve and protect the shoreline; vi. To do any other work necessary to maintain the lake or its structures; or vii. For any other purpose to the extent that such use does not unreasonably interfere with the use of the Premises by Tenant or Tenant's invitees and agents. Page 3 of 12 (j) The City is hereby released and held harmless from any and all damages, costs, expenses, liabilities, causes of action, or suits arising from or related to the exercising of any of its rights under this Section, including but not limited to the entering upon the Premises for any of the above reasons. 5. Installation of Dock/Slip/Lifts. It is understood by the parties that Tenant intends to install on the shoreline of the Premises(1)boat dock,set of boat slips,and/or boat lifts,including any ramps from the shore thereto (collectively "Boat Dock") for use exclusively by the Association's members or their guests for periods of no longer than seventy-two (72) hours. In no event shall said Boat Dock have more than six(6) slips/parking spaces for boats without the City's written permission.The installation,location,and construction of said Boat Dock will be permitted subject to the written approval of Mayor or his/her designee. Any modifications to the size, location, configuration, or structure of the Boat Dock must be approved in writing by the Mayor or his/her designee. Said Boat Dock shall not be used for any commercial or business purposes, however, Tenant may charge its members fees or assessments for use of the Boat Dock. No other boat docks, boat slips, boat lifts, swimming platforms, or other similar structures may be placed on the Premises or off the shoreline of the Premises.All maintenance and upkeep of the Boat Dock shall be the Tenant's responsibility and the Boat Dock shall be kept in a neat, clean, and safe condition. Tenant holds the City harmless and releases the City from any and all claims, damages and/or injuries resulting from or related to the installation, construction, maintenance, repair, removal, and use of the Boat Dock. 6. Condition Of Premises. Tenant acknowledges personal inspection and examination of the Premises and all parts thereof, and Tenant accepts the Premises in its existing condition. 7. Real Estate Taxes. During the Lease Term,Tenant shall be responsible for all real estate taxes and assessments for the Premises. Failure to timely pay any real estate taxes and assessments after the Effective Date of this Lease shall be deemed a default of this Lease. 8. Utilities: No utilities shall be installed on the Premises without the written consent of the Mayor or his/her designee.Notwithstanding the foregoing, Tenant may install underground electrical utilities on the Premises for purposes of operating and safely using the Boat Dock described above, consistent with applicable laws,rules, ordinances, and regulations. To the extent utilities are permitted,Tenant shall be solely responsible for and pay all charges for water, garbage removal, electricity,telephone, cable, satellite/tv, internet, fiber, gas, wastewater treatment and/or disposal, or other service for the Leased Property (collectively "utilities"). Failure to pay such utilities shall be deemed a default of this Lease.Tenant shall also be responsible for the installation, maintenance, removal and/or repair of any water lines, sewer lines, wastewater treatment and/or disposal, private sewage disposal systems, electricity/power lines, internet/telephone/tv connections, fiber lines, gas lines, or other utility connections located upon the Premises. 9. Encumbrances/Liens. Tenant shall not mortgage or otherwise cause or allow any liens or encumbrances to be recorded or filed against the Premises,or the leasehold interest granted by this Lease, at any time. Failure to comply with this Paragraph shall be deemed a default of this Lease and grounds for immediate termination upon written notice by Landlord. Page 4 of 12 10. Insurance. During the Lease Term: a. Tenant shall procure, pay for and keep in force and effect the following: (comprehensive general .liability insurance (including a blanket "contractual" liability endorsement and coverage on operations of independent contractors) insuring against liability for personal injury, bodily injury, death and damage to property occurring in or about, or resulting from an occurrence in or about,the Premises with combined single limit coverage of not less than Two Million Dollars($2,000,000) on account of bodily injuries to or the death of any one or more persons as a result of any occurrence and Five Hundred Thousand Dollars ($500,000) coverage for property damage. b. All policies of insurance required to be carried by Tenant pursuant to this Section 8: (i) shall name Landlord and such other parties in interest as Landlord designates as additional insureds; (ii) shall be primary insurance which provides that the insurer shall be liable for the full amount of the loss up to and including the total amount of liability set forth in the declarations without the right of contribution from any other insurance coverage of Landlord; (iii) shall be written by companies authorized to do business in the State of Illinois, shall be rated A- or better by Best's Insurance Rating System, or its equivalent and shall contain a deductible not exceeding Ten Thousand Dollars ($10,000); and (iv) shall provide that such policy shall not be subject to cancellation, lapse or change except after at least ten(10) days prior written notice to Landlord. C. A certificate of the insurer, certifying that such policy has been issued, providing the coverage required by this paragraph, and containing the provisions specified herein, shall be delivered to Landlord prior to or on the Effective Date and upon renewal of such policies, but not less than thirty (30) days prior to the expiration of the term for such coverage. d. Tenant shall obtain whatever contents insurance Tenant deems desirable, it being acknowledged by Tenant that Landlord has no obligation to Tenant for any damages to any of Tenant's personal property in or on the Premises. e. Within thirty (30) days of the end of the Initial Lease Term or any Renewal Lease Terms, Landlord may increase the coverage and/or deductible requirements contained in this Section upon written notice to Tenant. 11. Maintenance and Repair of the Premises. (a) Tenant will maintain the Premises during the Lease Term, in its present condition except as otherwise stated in this Lease. (b) Tenant shall keep the Leased Property neat and clean and free from noxious weeds and debris. (c) Tenant shall not permit any of the Premises to be denuded of vegetation or to be cultivated in such manner as to cause or permit soil erosion. Further, Tenant agrees to maintain Page 5 of 12 the shoreline in good condition and must take reasonable and legal steps to protect the lake from pollution, undue erosion, and other injury. (d) Tenant shall care for and protect from injury all shade and ornamental trees, shrubbery,and sod,and may remove undergrowth and noxious weeds from the Premises;however, Tenant shall not remove, trim, or permit the removal or trimming of any trees more than three inches in diameter without the consent of the City (which may be granted by the Mayor or his/her designee). Notwithstanding the foregoing, Tenant intends to do an initial sweep of shrubs, trees, undergrowth and noxious weeds, which the City agrees to pen-nit subject to approval of the removal of said items by the City Engineer; (e) Tenant shall not allow yard waste including grass clippings, leaves or like material to enter the lake from the Premises (f) Tenant shall not use herbicides nor insecticides near the water of the lake nor anywhere rain may wash these chemicals into the lake except with the written permission of the Water Superintendent of the City of Canton, Illinois; (g) Tenant will maintain all improvements in good repair; (h) Exclude the general public from the Premises and from that part of the lake within 25 feet of the shoreline of the Premises (except as to navigation); (i) At the expiration of the Lease Term,Tenant shall deliver up the Premises in as good condition in which they were at the commencement of this Lease,ordinary wear and tear excepted. 12. Water Level. It is understood that the City will not be responsible for maintaining any certain lake level and will not be responsible for damage caused to Tenant's improvements (including, without limitation, the Boat Dock) or other property of Tenant by the action of the waters. The City reserves the right to raise/lower the water levels of Lake Canton, and the City shall not be responsible for damage caused to Tenant's improvements (including, without limitation,the Boat Dock) or other property of Tenant by said raising/lowering of the water levels of Lake Canton. 13. Condemnation. a. Right to Terminate. If as a result of any taking by means of the exercise of the power of eminent domain(including any voluntary sale or transfer by Landlord to any condemnor under threat of condemnation) all or any portion of the Premises, Tenant shall have the option to terminate this Lease. Tenant must exercise such option within thirty (30) days of the date that title vests, in the condemnor, to be effective on the date that possession of that portion condemned is taken by the condemnor. b. Rebate of Prepaid Rent. If any part of the Premises is taken by condemnation and this Lease is not terminated, then Landlord shall rebate an amount of Rent equal to the following equation: Rent multiplied by a fraction, the numerator of which is the number of days remaining Page 6 of 12 in the Lease Term and the denominator is 365 and multiplied by another fraction, the numerator of which is the number of acres transferred due to condemnation and the denominator of which is acreage of the Premises upon the execution of this Lease. C. Division of Condemnation Award. Any award made as a result of any condemnation of the Premises shall belong to and be paid to Landlord, and Tenant hereby assigns to Landlord all of its right, title and interest in any such award; provided, however, Tenant shall be entitled to receive any condemnation award that is made to Tenant for loss of or damage to Tenant's trade fixtures, removable personal property and unamortized Alterations that have been paid for by Tenant, together with any relocation expenses as may be payable to Tenant for the relocation of Tenant's property. 14. Holdover by Tenant. If Tenant remains in possession of the Premises without the written consent of Landlord after the termination or expiration of this Lease,Landlord may recover possession of the Premises in the manner provided by law, and Tenant shall be subject to all the terms and conditions hereof and shall pay rent in an amount that equals the Rent multiplied by twenty-five percent(25%) on or before the first day of each month following the end of the Lease Term. 15. Default and Remedies. (a) Events of Tenant's Default. Each of the following shall be considered an"Event of Default": i. Tenant shall have failed to pay Rent or any money due under this Lease when due and such failure is not cured within five (5) days after delivery of written notice from Landlord specifying such failure to pay; or ii. Tenant shall have failed to perform any other term, covenant, or condition of this Lease except those requiring the payment of Rent or any money due under this Lease and Tenant shall have failed to cure such breach within thirty (30) days after written notice from Landlord specifying the nature of such breach; provided, however, that if Tenant's default cannot be reasonably cured within such thirty (30) day period,then Tenant shall.not be in default if it coinmences to cure the default within such thirty (30) day period and thereafter diligently prosecutes such cure to completion; or iii. A receiver or similar officer becomes entitled to the leasehold interest of Tenant under this Lease; or iv. Levy, seizure, attachment or sale of the leasehold interest of Tenant under this Lease; or V. Tenant is dissolved, voluntarily or involuntarily, or is no longer in good standing with the Illinois Secretary of State; Page 7 of 12 vi. Tenant becomes insolvent or unable to pay debts as they mature, or admits in writing to such effect, or makes an assignment for the benefit of creditors, or a proceeding is instituted by or against Tenant alleging that Tenant is insolvent or unable to pay debts as they mature, or a petition under any bankruptcy or i isolvency law is brought by or against Tenant. 16. Landlord's Remedies. Upon the occurrence of any Event of Default, Landlord may, at its option, without notice to or demand upon Tenant, exercise any one of more of the following remedies in addition to any others available at law or in equity: (a) Landlord may, with or without terminating this Lease, accelerate all Rent due hereunder and such accelerated Rent shall be immediately due and payable; and (b) Landlord may terminate this Lease by ten(10) days written notice to Tenant. Upon termination of this Lease, Landlord may immediately recover from Tenant all damages proximately resulting from the termination, including the cost of recovering the Premises, the unpaid rent that had been earned at the time of the termination of this Lease and the present value of unpaid rent that would have been earned from the date of such termination until the time this Lease would have expired. All such amounts shall be immmediately due and payable from Tenant. 17. Performance by Landlord . In the event Tenant fails to perform any of its obligations under this Lease, Landlord may, at its option, perform such obligations on Tenant's behalf without waiving the Event of Default. Tenant agrees to repay Landlord any expenses incurred in such performance plus interest of twelve percent (12%) per annum from the date of Landlord's payment or incurrence of such expenses. 18. Waiver. No delay or omission in the exercise of any right or remedy accruing to either party upon any breach by the other party under this Lease shall impair such right or remedy or be construed as a waiver of any such breach. The waiver by either party of any breach of any provision of this Lease shall not be a waiver of any subsequent breach of the same or any other provision herein contained. 19. Duty to Mitigate Damages. In the event of a default by a party, the other party covenants and agrees to take any and all reasonable and appropriate action needed to mitigate damages incurred as a result of any such default. 20. Assil4nment and Subletting. Tenant shall not assign this Lease or sublet all or any part of the Premises without the prior written consent of Landlord, which may be withheld in Landlord's sole discretion. Notwithstanding the foregoing, within the sooner of (i) twelve (12) months of the Effective Date or(ii) a sale or transfer of any portion of the Premises from the Land Trust to a third party, the Land Trust shall assign this Lease to the Association on a form satisfactory to the Landlord. Nothing in this Section prohibits the Tenant from establishing rules and regulations for the Association. Page 8 of 12 21. Indemnification. Tenant shall indemnify, defend and hold Landlord harmless from and against all losses, damages, liabilities and expenses (including, but not limited to, reasonable attorneys fees),judgments, fines or penalties that result from any claim, action, suit or proceeding (whether civil; criminal, administrative or investigative, including associated appeals) arising out of any claims including,but not limited to, injuries to persons or property, sustained in or upon the Premises and/or the Boat Dock during Tenant's possession or use thereof except to the extent of negligence of or use by Landlord or its agents, invitees and guests. Landlord shall indemnify, defend and hold Tenant harmless from and against all losses, damages, liabilities and expenses (including, but not limited to, reasonable attorneys fees),judgments, fines or penalties that result from any claim, action, suit or proceeding (whether civil, criminal, administrative or investigative, including associated appeals) arising out of any claims including,but not limited to, injuries to persons or property, sustained in or upon the Premises prior to Tenant's possession thereof and the use of the Premises by Landlord or Landlord's agents and guests after the Tenant's possession except to the extent of negligence of Tenant or its agents, invitees and guests. 22. General Provisions. (a) No change to or modification of this Lease shall be valid unless that change or modification is in writing and is executed by the parties hereto. (b) No team, covenants or condition of this Lease shall be deemed to have been waived unless such waiver is in writing and is signed by the waiving party. The acceptance of any rent hereunder by Landlord shall not be deemed to be a waiver of any breach by Tenant of this Lease. (c) This Lease contains the entire agreement between the parties with respect to the subject matter hereof. (d) This Agreement may be executed in any number of counterparts, each of which shall be an original, and such counterparts together shall constitute one and the same instrument. (e) All notices, communications and demands hereunder shall be in writing and shall be deemed to have been properly given if (i) delivered in person or (ii) sent by registered or certified mail, postage prepaid,return receipt requested,to: If to the Tenant: with a copy to: John Davis Froehling, Weber& Schell,LLP 24784 East Old Beach Road Ronald Weber Canton, Illinois 61520 167 West Elm Street Canton,Illinois 61520 If to the Landlord: with a copy to: City of Canton City of Canton ATTN: Mayor ATTN: City Attorney 2 N. Main Street 2 N. Main Street Canton, Illinois 61520 Canton,Illinois 61520 Page 9 of 12 or such other address as may be designated in writing. The notice shall be effective (i) upon delivery and (ii) two (2) days after the date of mailing. (f) In the event any action or legal proceeding is commenced to recover Rent, to terminate this Lease or to enforce any provision in connection with this Lease,the prevailing party shall be entitled to recover:as a part of such action or proceedings, or in a separate action brought for that purpose, reasonable attorneys' fees and court costs as may be fixed by the court. (g) Should any provisions of this Lease prove to be invalid or illegal, such invalidity or illegality shall in no way affect, impair or invalidate any other provision hereof, and such remaining provisions shall remain in full force and effect. (h) Time is the essence with respect to the performance of every provision of this Lease in which time of performance is a factor. (i) The captions used in this Lease are for convenience only and shall not be considered in the construction or interpretation of any provision hereof. (j) This Lease shall, subject to the provisions regarding assignment, apply to and bind the respective heirs, successors, executors, administrators and assigns of Landlord and Tenant, including the members of the Association. The Association shall be responsible for ensuring compliance with the terms of this Lease by its members. (k) This Lease shall be construed and enforced in accordance with the internal laws, and not the law of conflicts, of the State of Illinois. (1) Each party had the opportunity to be represented by legal counsel during the negotiation resulting in this Agreement. The parties agree that the rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement (m) When the context of this Lease requires, the neuter gender includes the masculine, the feminine, a partnership or corporation or limited liability company or joint venture, and the singular includes the plural. (n) Landlord represents and warrants that: (i)as of the Effective Date it is the fee owner of the Premises; (ii) it has full power and authority to execute this Lease and, as of the Effective Date,to convey to Tenant the leasehold estate granted herein; (iii)Tenant's quiet enjoyment of the Premises shall not be disturbed by Landlord, any party claiming through Landlord, or any other party, so long as Tenant is not in default hereunder beyond applicable grace period; and (iv) Landlord's signatory to this Lease is authorized to execute the Lease on behalf of the Landlord. Page 10 of 12 Y Executed by the parties hereto as of the day and year first above written. LANDLORD: TENANT: CITY OF CANTON JOHN W. AND GLORIA D. DAVIS LAND TT T NUMBER dated August 26, 2010 a Kent A. McDowell, Ma ohn W. Davis, Co- rustee Attest: �j� — - Q L J(V• ��1G�' �ndrea J. Smith-Walters,Acting City Clerk Gloria D. Davis, Co-Trustee Prepared by and return to: John J. McCarthy Attorney at Law 209 East Chestnut Street Suite 1 Canton, Illinois 61520 Page 11 of 12 • n Exhibit A Legal Description of Premises Part of the Northeast Quarter'of Section 30, Township 7 North, Range 5 East of the Fourth Principal Meridian,more particularly described as follows: Beginning at an iron rod at the southwest corner of Lot 9 in Old Beach Addition, as shown on Plat of Survey recorded November 7, 2017 as Document No. 1778527 in Slide 539, thence North 74 degrees 20 minutes 57 seconds East (bearings based on Illinois State Plane Coordinate System, NAD83 (2011), West Zone) along the southerly line of said Old Beach Addition 256.75 feet; thence North 77 degrees 19 minutes 27 seconds East continuing along said southerly line 85.61 feet to the northwest corner of Lot 15 in said Old Beach Addition; thence South 01 degrees 09 minutes 00 seconds West along the westerly line of said Old Beach Addition 200.00 feet to the southwest corner of Lot 16 in said Old Beach Addition; thence South 22 degrees 57 minutes 21 seconds East continuing along said westerly line 197.37 feet to the southwest corner of Lot 18 in said Old Beach Addition; thence South 01 degrees 19 minutes 00 seconds West continuing along said westerly line and along the extension thereof 328.37 feet;thence North 53 degrees 00 minutes 39 seconds West 387.87 feet; thence North 5 degrees 59 minutes 47 seconds West 237.11 feet; thence North 37 degrees 49 minutes 17 seconds West 52.82 feet; thence North 15 degrees 11 minutes 24 seconds West 115.07 feet to the Point of Beginning. The above described tract contains 3.944 acres, more or less. Page 12 of 12