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Property Occupancy LICENSE AGREEMENT This License Agreement is entered into this ~ay of June, 2004, by and between the City of Salina, Kansas (the "City") and Joseph T. Kroneberger and Audrey Kroneberger, Trustees, or their successors, of the Joseph T. Kroneberger Trust under agreement dated 10/25/1994, as amended and restated, and Audrey Kroneberger and Joseph T. Kroneberger, Trustees, or their successors, of the Audrey Kroneberger Trust under agreement dated 10/25/1994, as amended and restated, (the "Kronebergers"). Recitals A. The Kronebergers have sold to the City pursuant to a Contract of Sale of Real Estate dated June 1.'-1,2004, (the "Contract") the Saline County, Kansas, real estate described as: A parcel in Lot Five (5), East Gardens, an addition to the City of Salina, Saline County, Kansas, described as follows: Beginning at a point 74.81 feet South of the Northeast comer of Lot 5; thence South 51.54 feet along the East line of Lot 5; thence Southwesterly 109.21 feet along the South line of Lot 5; thence Northwesterly 49.00 feet on a line perpendicular to the North line of Lot 5; thence Northeasterly 125.47 feet along a line parallel to the North line of Lot 5 to the point of beginning. Described in Book 384 at Page 163 of the Records of Saline County, Kansas. Said tract contains 0.13 acres, more or less. together with all appurtenances, permanent improvements and fixtures (the "Property"). B. While closing on the sale of the Property by the Kronebergers to the City has closed this 'l \\..day of June, 2004, the Kronebergers desire to remain in possession of the Property and the City agrees to allow the Kronebergers to remain in possession of the Property strictly for the purposes and under the conditions set forth in this License Agreement. THE PARTIES THEREFORE AGREE: 1. Grant of License. The City grants a license to the Kronebergers permitting the Kronebergers to continue to occupy the Property through September 30, 2004, exclusively for the Kronebergers continued use in the same manner and for the same purpose as Kronebergers used the Property prior to its purchase by the City (the "License"). 2. Term of License. The License shall commence upon execution of this License Agreement and shall continue until the earlier of: A. Expiration of the License as set forth in Paragraph 1 above; or B. Notification of the City by the Kronebergers that the Kronebergers have vacated the Property prior to September 30, 2004. 3. Indemnification and Hold Harmless. The Kronebergers shall indemnify and hold the City and its current and former elected officials, agents, and employees harmless from all claims, liability, loss, damage, expense, or judgment, including attorneys' fees so incurred, arising from the Kronebergers' continued occupancy of the Property pursuant to the License (the "Indemnification"). The Kronebergers shall maintain in effect commercial general liability coverage of no less than $500,000 on a per occurrence basis, which includes coverage extending to the Indemnification, and shall provide the City with ongoing written proof of such coverage. The Kronebergers agree to defend against all claims brought or actions filed against the City with respect to the Kronebergers' occupancy of the Property pursuant to the License, whether such claims are rightfully or wrongfully brought or filed. The City agrees that the Kronebergers may employ attorneys of their own selection to appear and defend the claim or action on behalf of the City, at the sole expense of the Kronebergers. The Kronebergers shall have control of the defense in any such lawsuit and negotiations relating to its settlement. The City shall assist the Kronebergers as reasonably requested by the Kronebergers regarding such lawsuit. The Kronebergers agree to reimburse the City for all expenses, costs, and attorneys' fees incurred by the City in the enforcement of any part of the Kronebergers' agreement to indemnify the City. 4. Maintenance on Restoration. The City shall not be responsible for maintenance of the Property or restoration of damage to the Property from any cause during Kronebergers' continued occupancy. 5. Assignment of License. The assignment of any rights under this License Agreement by the Kronebergers shall not be permitted. 6. Binding Effect. This License Agreement shall be binding upon the parties, their successors and authorized assigns. Executed the day and year first above written. CITY OF SALINA, KANSAS Dennis M. Kissin er By: -2-