RENTAL AGREEMENT/LEASE

1. PREFACE. This lease may seem overly burdensome and onesided (in OUR favor). All WE do is agree to provide a safe, habitable place to live and YOU have to do most everything else. Actually, OUR part is not as easy as it might seem. There are a lot of things that can go wrong with an apartment not to mention the heating system, appliances, etc. Also, WE hope YOU can understand, if not fully appreciate, most of the terms of this agreement. If YOUR neighbor begins to play loud music just as YOU are trying to go to sleep, YOU will want US to be in a position to do something about it if a polite request from YOU doesn't seem to be working. Life in OUR little community under a lease like this is very similar to life in general. Someone else's right to drive 80 MPH infringes on YOUR right to enjoy a relatively safe trip somewhere. If YOU chose to exercise YOUR freedom and go through red lights, eventually YOU will not be able to drive at all. It's funny how life keeps training US all to do unto others as WE would have them do unto us. The fact that YOUR application has been approved means that WE feel YOU are an advocate of the "Golden Rule". YOU haven't had the opportunity to check out OUR resume so WE will simply try to prove to YOU during YOUR stay with US that WE abide by the same principle!

2. TO THE RESIDENT. This lease is a binding legal document. By signing it YOU and the Landlord agree to be bound by everything it contains. Before signing this lease, make sure all the blank spaces are filled in. Make sure that YOU understand what the lease means. After YOU sign the lease, ask for and keep a copy.

3. DEFINITIONS. Throughout this lease:

"WE", "US", and "OUR" means the landlord or owner of the premises, or anyone working for the owner.

“RESIDENT” means any person occupying the apartment for more than two weeks cumulative in any one year period.

"YOU" and "YOUR" means the resident(s) and person(s) who agree to rent the apartment.

“GUEST” means any occupant whose name is not listed above.

"Fixtures" means items that are physically attached to the building.

"Breach" means to do something that is prohibited by the terms of this lease or to fail to do something that is required under the terms of this lease.

"Perform" is the opposite of breach: It means to do everything required to be done and not to do anything that is prohibited by the terms of this lease.

"Terminate" means to bring to an end.

"Abandon" means to move out of the apartment (even if YOU have still left belongings behind) without first giving proper written notice.

“Lease” means this document, even if it reverts to a month-to-month rental agreement.

4. ACCEPTANCE OF APPLICATION. WE have accepted YOUR application to rent this apartment, and YOU say that everything on YOUR application is true and correct. YOUR application and Security deposit agreement are a part of this lease. IF WE LATER LEARN THAT INFORMATION ON YOUR APPLICATION IS FALSE OR THAT IMPORTANT INFORMATION HAS BEEN OMITTED, THIS LEASE WILL TERMINATE IMMEDIATELY AND YOU WILL BE REQUIRED TO VACATE THE APARTMENT. YOU expressly authorize US to obtain YOUR consumer credit report, which Owner or Owner’s agent may use if attempting to collect past due rent payments, late fees, or other charges from YOU, both during the term of the lease and thereafter.

Resident’s Initials _____ _____ _____ _____ Landlord’s Initials ______

5. APARTMENT AVAILABILITY. WE will use OUR best efforts to make the apartment available to YOU on the date stated above after 3:00 PM, but if, due to circumstances beyond OUR control it is not available, YOU do not have to start paying rent until the apartment is available or, if WE cannot make it available within 10 days, YOU may terminate this lease. If YOU chose to so terminate, YOU will tell US right away and WE will refund all rent paid in advance and the security deposit.

6. RENTAL OF APARTMENT AND MISCELLANEOUS CHARGES.

YOU agree to rent the apartment listed above for the term and amount listed above. YOU must pay the rent on the first day of each month in which it is due. Rent payments will be accepted by one check in full payment of the rent even though two or more persons may have signed the lease or occupied the apartment.

The rental rate listed above will be increased $50.00 per month for each additional person occupying the apartment over and above the names listed above, subject to OUR approval and then, only if we pre-approve the additional person(s).

If YOU are more than five (5) days late in paying the rent, YOU will pay a late charge of $50.00. That means received by the 5^th.

YOU will also pay all court costs and reasonable attorney's fees and collection fees that WE incur in enforcing OUR legal rights under this lease. A service charge of 1 1/2% per month will be added to all overdue accounts (18% APR).

YOU agree to pay all of OUR costs of re-renting, including advertising, if YOU breach this lease or abandon the apartment.

Page 1 of 4

YOU will also be charged the following fees for the following items:

Returned checks: $30.00 per check (or as MN Statute Allows)

Lost keys: $10.00 per key, or for the cost of new locks and keys if the main door key is lost.

Late move out: $100.00 plus actual damages

Token Charge: $50.00 as a token charge when a resident forgets their keys and requires resident manager to let them in after 7:00

PM or before 8:00 AM.

7. APPLIANCES AND PLUMBING. YOU are responsible for the proper use and maintenance of all appliances and plumbing in the apartment. YOU will be responsible for any damage that results from the misuse or abuse of any appliance or plumbing. YOU agree to promptly reimburse US for loss, or cost of repairs or service caused anywhere in the apartment or the apartment community by YOU or YOUR guests. WE may require payment at any time, including advance payment for repairs for which YOU or YOUR guests are liable. Any delay in Owner’s demand is not a waiver of such fees.

8. RESIDENT ACCEPTS PREMISES. YOU have examined the apartment and its fixtures and appliances and are satisfied with their condition. WE do not have to change, improve or decorate it or them. YOU will not abuse the apartment or any of the apartment fixtures and/or appliances. When YOU move out, YOU will leave the apartment and its fixtures and appliances in good condition except for ordinary wear and tear. If YOU cause damage to the apartment, fixtures or appliances, other than reasonable wear and tear, WE may charge YOU for the damage. You have looked over and signed the move-in forms.

9. RESIDENCE ONLY. YOU will use the apartment only as a residence and for no other purpose. YOU may not put any commercial or advertising signs in or on the building. No more than ______ persons may live in the apartment.

YOU will not allow any guest to stay for longer than a total of 2 weeks in any 12 month period unless they get prior written consent from US. Guests staying longer than 2 weeks in any 12 month period must fill out an application to have their names added to the lease for the apartment they are visiting. Thereafter, management will review the application in accordance with the community’s rental criteria before guest may stay in apartment. Residents may have a maximum of 2 guests staying with them at any given time. Additional guests may be allowed with Owner’s and Manager’s prior written consent. All guests must obey House Rules and abide by the terms of this Lease.

10. SAFETY AND SAFETY DISCLOSURES.

YOU acknowledge that there may or may not be asbestos, radon, lead paint, and/or other hazardous materials in and around the building YOU will be residing in. However, WE are not aware of any such hazardous materials on the premises.

YOU will not use the apartment in any way which might threaten YOUR safety or the safety of the building or the other residents.

YOU will agree to promptly notify US of any condition in the apartment or the building which endangers YOU, YOUR children, guests or other residents in the building.

YOU will not do anything that will cause OUR hazard insurance or other insurance to be voided or to have OUR insurance rates increased, such as, but not limited to, keeping flammable fluids or explosives in the apartment or storage areas (deck, if applicable).

11. FIRE OR OTHER CASUALTY. If YOU cannot live in the apartment or the building because of fire or other casualty, WE have the choice of either

Terminating this lease as of the date of the damage, or,

Within sixty (60) days, restoring the apartment or the building so YOU can live in it again. YOU will only have to pay rent in the proportion to the use YOU can make of the apartment and the building. Also, if the restoration takes longer than sixty (60) days, either WE or YOU may terminate this lease.

12. GOVERNMENT LAWS AND ORDINANCES. YOU agree to abide by all local, State and Federal laws, and ordinances.

13. MISCELLANEOUS RULES.

DISTURBANCES: YOU agree not to act in any way which substantially disturbs the other residents. YOU will not use YOUR video or audio equipment at a loud volume nor engage in loud, domestic quarrels.

UNATTENDED CHILDREN: YOU agree not to leave children under the age of 11 years on or about the premises when YOU or a designated baby-sitter are not available for direct supervision.

ITEMS NOT ALLOWED IN THE BUILDING OR APARTMENT: The following items are not allowed to be used or stored in the apartment, in the building, or on the building grounds: Clothes washers or dryers; Boats, outboard motors, snowmobiles, and flammable or explosive substances; Pets such as cats or dogs, hamsters, guinea pigs, mice or other like animals; Bar-B-Que grills; Waterbeds or water-filled furniture. Natural Christmas trees. (Artificial trees are allowed.)

LITTER: YOU agree not to deposit litter in the common areas or building grounds nor to allow YOUR guests to do the same.

SNOW PLOWING: If YOU fail to cooperate with our snow plowing policy, YOUR vehicle may be towed and stored at YOUR expense. YOU agree not to sue US for any damage to YOUR vehicle caused by towing or for other reasons besides OUR direct negligence.

PARKING: Park in YOUR designated parking space if one is assigned, or in any stall in the parking lot that isn't reserved. Limit of one (1) car per licensed resident with a maximum of Two (2) cars per apartment. Inoperable or unregistered automobiles will be towed at YOUR expense but only after YOU do not respond to a 24 hour written notice.

DRIVING ON LAWNS: YOU will not drive any vehicle on the lawns at any time. . .even while moving in or out.

BICYCLES: YOU will park YOUR bicycles only in the bicycle storage facilities if provided or in your garage, if applicable or in your apartment.

WINDOW CLEANING: Indoor window cleaning is YOUR responsibility. YOU may, but YOU are not required to, clean the outside of the windows and YOU assume the risk of injuring yourself while cleaning the windows. YOU agree not to bring suit against anyone, for any injury suffered while cleaning the windows.

LOCKS: YOU may not alter any lock or install new locks on any door. We must have access to your apartment for emergencies.

14. ADDITIONAL RULES AND REGULATIONS. OUR rules and regulations, that WE post in the building or deliver to YOU at any time, are part of this lease and are effective as soon as delivered to YOUR apartment. YOU agree to comply with these written rules and regulations at all times. YOU acknowledge having received a copy of OUR current House Rules.

15. DAMAGE TO THE PROPERTY. YOU agree:

Not to damage the apartment, building or grounds;

To keep the apartment and building in a clean and tidy state, remove all trash from apartment in closed plastic bags, and never leave trash in building common areas;

To clean and dust the leased premises regularly, and keep the leased premises, particularly the kitchen and bath, clean;

To give US written notice of necessary repairs such as a water leak, excessive moisture, standing water, or mold growth inside the leased premises or in any community common area;

To promptly notify US in writing and by phone of any condition in the apartment or the building which may do damage to the apartment or the building or waste utilities, such as roof leaks, running toilets, leaks under sinks and/or leaking faucets.

16. NO TRANSFER OF RIGHTS. YOU may not transfer YOUR rights and obligations under this lease. YOU may not rent or sublease the apartment to anyone else or allow anyone, not listed on the lease, to live in the apartment for more than two weeks in any given year without OUR prior written consent.

Page 2 of 4

17. MOLD: To minimize the occurrence and growth of mold in the leased premises, YOU hereby agree to the following:

YOU shall remove any visible moisture accumulation in or on the leased premises, including on walls, windows, floors, ceilings, and bathroom fixtures; mop up spills and thoroughly dry affected area as soon as possible after occurrence; use exhaust fans in kitchen and bathroom when necessary; and keep climate and moisture in the leased premises at reasonable levels.

YOU shall be liable to US for damages sustained to the leased premises or to YOUR person or property as a result of YOUR failure to comply with the terms of this Mold clause.

18. LANDLORD'S ENTRY. WE or someone acting on OUR behalf may enter YOUR apartment at any reasonable time to inspect the apartment, to make repairs or to show the apartment to prospective new residents, purchasers, insurance agents, or appraisers. If YOU refuse to allow US this kind of entry, and WE are unable to rent YOUR apartment for any reason the following month, YOU agree to pay US the rent for such following month even though YOU are no longer living in the apartment. But any months beyond that month following YOUR leaving will be entirely OUR responsibility even if YOU had refused US entry. We will try to give you at least a 24 hour notice except in an emergency situation.

19. INTERRUPTION OF SERVICES. Services WE provide may be interrupted by necessary actions such as repairs, renewals, improvements, alterations, or other causes beyond OUR control. If the services are interrupted for any of those reasons, it does not mean YOU are not being evicted . Also, WE do not have to pay damages to YOU, and YOU must continue to pay your full rent and perform all other terms of this lease as well.

20. SMOKE FREE BUILDING POLICY. The rental unit, common areas and within 15’ anywhere around the building will be designated as a smoke free space. It is YOUR responsibility to inform all guests of our smoke free policy. Smoking on the premises by anyone is a violation of the lease. If you or your guests do smoke in your apartment, you will be charged for time and material for a second coat of paint upon vacating if smoke damage warrants it.

21. SECURITY DEPOSIT. The Security Deposit stated at the beginning of this lease will be returned WITH INTEREST, within twenty-one (21) days after YOU move out AND WE receive YOUR forwarding address, but any amount that WE use to repair damage caused by YOU (other than reasonable wear and tear) will be subtracted from the deposit before computing the interest. Any cleaning not done will also be subtracted from the deposit. If the amount of the damage or cleaning is greater than the amount of the deposit YOU will pay US the difference. WE do not have to return the deposit listed above if YOU breach the lease and that breach results in YOUR eviction. YOU are reminded of Minnesota Statute Section 504.20, Subdivision 7(a), which says in part that YOU cannot withhold all or part of the rent for the final month of the lease on the ground that WE should use the deposit as rent. If YOU do not pay the final month's rent after WE notify YOU of this statute and demand the rent in writing, WE will be entitled to the following damages:

· The amount of the deposit that WE can keep under this lease to repair damage, cleaning or for the other reasons; plus

· As a penalty, interest on the deposit that ordinarily would be paid to YOU; plus

· The final month's rent .

If YOU Owe US any money, WE can keep all or part of the deposit to reduce the amount owed.

22. RESIDENT'S ALTERATIONS. You will not add to, alter, or improve the apartment without OUR advance written consent. If WE consent, YOU will pay for any damage WE suffer as a result of the addition, alteration or improvement. Also, YOU must pay the cost of restoring the apartment to the condition it was in when YOU moved in. WE do not have to remove any addition, alteration or improvement, and if WE do not, the alteration, addition, or improvement become OUR property and part of the apartment. If WE remove anything, some or all of YOUR deposit may be used for that cost, and if the deposit is not enough, YOU will pay the excess.

23. CONDEMNATION. If all or part of the building or the apartment is condemned for public use or under threat of eminent domain, WE or the condemning agency can terminate this lease on, and not before, the date when the property is needed for public use. WE do not have to share the condemnation award with YOU. If the lease is terminated for this reason, neither WE nor YOU has to do anything more under this lease, except that, if YOU have fully performed this lease, WE must return to YOU:

Any rent unused up to the date when YOU moved out, and

The deposit or whatever is left of it, plus any accrued interest.

24. NOTICE OF TERMINATION. At least sixty (60) days before this lease expires, YOU must give written notice of YOUR intention to vacate or this lease will automatically renew for another year, unless we fail to give you at least 60 days’ notice of our intent to renew it in which case it will revert to a month to month rental agreement.

25. GROUNDS FOR LANDLORD TO TERMINATE LEASE. WE have the choice of terminating both the lease and YOUR right to stay in the apartment, or just terminating YOUR right to stay in the apartment, at our option, if any of the following becomes true:

YOU do not timely pay YOUR rent in full; if rent is paid late six or more times in any given year, such late payments will constitute material non-compliance and is grounds for eviction.

YOU do not fully perform under this lease;

YOUR apartment is subject to attachment or any other legal process;

A receiver is appointed for any of YOUR property; or

YOU abandon the apartment;

YOU violate any provision contained in this Lease.

26. YOU AGREE NOT TO ENGAGE IN ILLEGAL ACTIVITY INCLUDING MAKE, SELL, POSSESS OR ALLOW ILLEGAL DRUGS OR ALCOHOL USE IN YOUR APARTMENT, IN THE BUILDING OR ON THE BUILDING PREMISES (as defined in Section 102 of the Controlled Substance Act (21 U.S.C. 802) or possession of drug paraphernalia (MN Statute 152.092). IF YOU, OR ANY OF YOUR GUESTS, VIOLATE THIS CLAUSE YOU LOSE THE RIGHT TO POSSESSION AND WE MAY FILE TO EVICT IMMEDIATELY WITHOUT GIVING ONE RENTAL PERIOD'S NOTICE. PROOF OF VIOLATION SHALL NOT REQUIRE CRIMINAL CONVICTION, BUT SHALL BE BY THE PREPONDERANCE OF THE EVIDENCE. A SINGLE VIOLATION SHALL BE DEEMED A SERIOUS VIOLATION OF THIS LEASE AND WILL BE CAUSE FOR TERMINATION OF TENACY.

27. VACATING. YOU agree to turn in all keys and vacate the apartment by 12:00 Noon on the day this lease terminates. If YOU and your belongings are not out at the required time, YOU will be responsible for a $100 late-move-out charge PLUS all damages suffered by US: including lost rent, advertising, court costs, and all legal and collection fees, and hotel/motel/storage rent WE may have to pay to the person coming in after YOU while he or she waits for YOU to get everything out and to turn in YOUR keys.

28. PARTIAL RENT PAYMENT EITHER BEFORE OR AFTER AN EVICTION ACTION. If YOU fail to pay rent on a timely basis, and WE bring an eviction action against YOU, YOU and WE agree that if YOU shall pay partial rent either before or after WE begin the eviction action, OUR acceptance of the rent does not waive OUR right to recover possession of the apartment for non-payment of rent or for any other breaches of the lease, and such acceptance will not require US to start a new eviction (Unlawful Detainer) action.

Page 3 of 4

29. MONTH-TO-MONTH RESIDENTS. If YOU are or become a month-to-month resident, YOU will give sixty (60) days written notice of YOUR intention to move out. This notice must be in writing and be given to US one day or more before YOUR second to last month's rent is due. In other words, YOU cannot, for example, decide on the 7^th of January that YOU will be moving on the 7^th of March. In such a case, YOU would be responsible for full rent for January through the end of March even though YOU had not lived there during the remaining 24 or so days of the term (March 7 - March 31). The resulting Rental Agreement will renew itself every month except that WE can raise the rent, or terminate the Rental Agreement, by giving YOU sixty (60) days written notice in the same manner as YOU may give YOUR 60 day notice to vacate.

30. LIABILITY OF RESIDENT AND LANDLORD.

DAMAGE OR INJURY TO RESIDENT OR HIS/HER PROPERTY:

WE are not responsible for any damage or injury that is done to YOU or YOUR property, guests or their property that was not caused by US. WE strongly recommend that YOU obtain Renter's Insurance to protect against injuries or property damage.

ACTS OF THIRD PARTIES:

WE are not responsible for the actions of any third parties (such as other residents, guests, intruders or trespassers) who, at a time they are not under OUR control, cause any damage, injury, if any, or harm to YOU or YOUR property. If such third parties are under our direct control, our responsibility is limited to our negligence in supervising them.

31. RESIDENT WILL PAY RENT. YOU will always pay the rent even if YOU have an unsettled claim against US relating to this lease.

32. REMOVAL OF RESIDENT'S PROPERTY AND RE-RENTING.

In the event YOU breach this lease and WE decide to terminate only YOUR right to stay in the apartment, WE may remove YOUR property and YOU will still have to pay rent for the remaining term of this lease, plus any other amounts YOU owe. WE may also re-rent the apartment to anyone else, on whatever terms WE choose. If WE re-rent the apartment, WE can repair or decorate the apartment and charge YOU for the cost. If WE cannot recover the full rent and other expense due us under this lease plus all of OUR expenses by re-renting the apartment, YOU must make up the difference; but if the rent from re-renting is more than the full rent plus OUR expenses, the difference must be refunded to YOU at the end of this lease. YOU must reimburse US for the cost of removing any of YOUR property. WE are not responsible for the value, preservation, or safekeeping of YOUR property. YOU give up any claim to all property that YOU leave behind for more than sixty (60) days after vacating or abandoning the apartment, or sixty (60) days after being removed by the Sheriff as a result of a Writ of Restitution.

33. GROUND LEASES AND MORTGAGES. This lease is subordinate to ground leases or mortgages that cover the building and the apartment now or in the future.

34. INCOMPLETE ENFORCEMENT OF LANDLORD'S RIGHTS. If WE enforce any one or more of OUR rights, WE are not prevented from enforcing any of OUR other rights. OUR failure to enforce any rights does not mean that WE give up those rights. WE do not give up any rights by accepting only part of the rent or by accepting late payment of rent. OUR allowance of any default does not mean that WE are allowing later defaults. If any part of this lease is found to be unenforceable, the remainder will be enforced as if the unenforceable part had been omitted.

35. OTHERS BOUND TO THIS LEASE. This lease will bind and benefit everyone who stands in the same position legally as US and YOU: such as heirs, executors, administrators, and persons to whom rights have been assigned or transferred. Please inform your heirs of this clause.

36. ENTIRE AGREEMENT. Four pages of this lease contain all the agreements between US and YOU. Nothing WE have said to YOU or YOU have said to US changes the terms of this lease. If WE have said anything of importance or made any promises to YOU that are not contained in this lease, YOU should ask to have it inserted in this lease. Do that now in the space provided.

________________________________________________________________________________________________________________________________________________________________________________________________________________________

Resident’s Initials ____ ____ ____ ____

SIGNATURES.

BY SIGNING THIS LEASE, EACH OF YOU AGREES THAT YOU HAVE READ AND UNDERSTAND ALL PARTS OF THIS LEASE (INCLUDING UNEMPHASIZED PARTS) AND THAT YOU HAVE DONE SO BEFORE SIGNING IT. YOU AGREE TO BE BOUND INDIVIDUALLY AND SEVERALLY TO ALL OF ITS TERMS, CONDITIONS, AND OBLIGATIONS.

All residents must be listed above and all residents over the age of 18 must sign this lease.

Each resident is jointly and severally liable for all amounts due under the terms of this lease.

________________________________________

RESIDENT(S): Resident acknowledges receipt of a copy of this lease.

Dated: _____________________________ The Owner of this property is:

______________________________

LANDLORD/RESIDENT MANAGER: ______________________________

______________________________

by ______________________________________ ______________________________

Dated: ______________________________

(The following is required by Minnesota Statutes, Section 504.22)

The person authorized to manage the apartment and to accept service of process and give receipts for notices and demand is: Lee Bakewell or Mary Bakewell; 1846 Delaware Ave., West St. Paul, Minnesota 55118. All notices required under this lease should be sent to US at that address, AND NOT GIVEN TO THE RESIDENT MANAGER, CARETAKER, or maintenance person.

Page 4 of 4