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at its own expense and which it removes in accordance with section 5 of this agreement. <br /> <br /> 1.2 Right of Enjoyment; Purpose. Upon compliance by Lessee with its various obligations <br /> hereunder and except as provided herein, Lessee shall have the right of possession and quiet <br /> enjoyment of the Premises, provided that Lessee's use of the premises shall be restricted to the <br /> primary purpose of providing recreation and other community services to seniors and other incidental <br /> uses that are consistent with zoning, safety and other applicable laws and with EECA's 501(c)(3) <br /> status. <br /> <br /> 1.3 Condition of Lease. The making of the lease described in this Agreement and the execution <br /> hereof, are made in reliance upon Lessee's promise and covenant that Lessee will deliver to City, not <br /> later than March 1 of each year, Lessee's Annual Report described in Subsection 14.3, based on <br /> EECA's operation in the Kaufman Center for the previous calendar year. The first report, due March <br /> 1, 2006, must include a copy of Lessee's letter of determination of tax-exempt 501(c)(3) status from <br /> the Internal Revenue Service. <br /> <br />2. Rental. <br /> <br /> 2.1 Basic Rent. For occupancy of the Premises from July 1 (September 1 for 2005) through June <br /> 30 of each year, Lessee shall pay to City basic monthly rent in the amount shown in the following rent <br /> schedule. Rent shall be paid on or before the first of the month to City of Eugene contact as per <br /> Section 19. As an alternative, EECA may choose to make an annual payment in advance without <br /> penalty. <br /> <br /> 2.2 Rent Schedule. <br /> Monthly Annual Cost/SF/month <br /> <br /> Year One 2005-2006 $125 $1250 $.015 / SF <br /> Year Two 2006-2007 $250 $3000 $.03 / SF <br /> Year Three 2007-2008 $500 $6000 $.06 / SF <br /> Year Four 2008-2009 $1000 $12000 $.12/SF <br /> Year Five 2009-2010 $2000 $24000 $.24/SF <br /> <br /> 2.3 Additional Rent. As additional rent, Lessee shall pay the following: <br /> <br /> A. Cost of all insurance which Lessee is required to have; <br /> <br /> B. All amounts Lessee is required to expend for maintenance and repair of the Premises. <br /> <br /> C. All costs for utility services and security which Lessee is required to pay hereunder. <br /> <br /> D. Any taxes due on or with respect to the uses made of the Premises. <br /> <br /> E. If EECA subleases any portion of their leasehold interest to other parties, and such subleases <br /> totalmore than $1,000 per month, EECA will pay the City one-half of the total monthly rent received <br /> from the sublessees greater than $1000.00. The total monthly payment to the City will not exceed <br /> $2000.00. This additional rent to the City will be established at the time EECA creates a sublease <br /> with another party and gains the City approval for the sublease as per Section 16. Fees charged for <br /> temporary use of the building are not considered to be rent. <br /> <br />2006-03803 <br />Kaufman Senior Center Lease Page 2 <br /> <br /> <br />