MORENCI TOWNSITE RESIDENTIAL RENTAL AGREEMENT

Transcription

1 MORENCI TOWNSITE RESIDENTIAL RENTAL AGREEMENT This Residential Rental Agreement, hereinafter referred to as the "Lease", is made and entered into by the "Landlord" and the "Tenant", both of which are identified herein below, as of, PARTIES: This Lease is between Freeport-McMoRan Morenci Inc., a Delaware corporation, hereinafter referred to as "Landlord", and, hereinafter referred to as "Tenant" FMI EMPLOYEE IDENTIFICATION NUMBER: Tenant s FMI Employee identification number is: PERMITTED OCCUPANTS: No person other than Tenant and the "Permitted Occupants" identified below may occupy the "Premises" (herein below defined). a. b. c. d. e. f. Tenant shall submit to Landlord a Rental Application for review and approval, in Tenant s name and the names of any Permitted Occupants 18 years of age and older. Failure to provide an application and obtain approval for additional Permitted Occupants will be deemed a violation of this Lease, terminable pursuant to A.R.S Tenant shall provide Landlord with a current, written list of Permitted Occupants within 48 hours after a Permitted Occupant has vacated the Premises or a person who is not a Permitted Occupant has begun occupying the Premises. 2. LEASE OF PREMISES: Subject to the terms and conditions set forth in this Lease, Landlord agrees to lease to Tenant, and Tenant agrees to lease from Landlord, the following described real property, together with all improvements located thereon, located at, in the Morenci Townsite, County of Greenlee, State of Arizona (the "Premises"). 3. TERM: The "Term" of this Lease shall commence on, 20, hereinafter referred to as the Effective and continue to the first calendar day of the immediately following full calendar month. Thereafter, this Lease shall automatically renew for successive month to month terms commencing on that first calendar day of each month, unless sooner terminated. Except as otherwise provided by law, either Landlord or Tenant may terminate this Lease with written notice in accordance with A.R.S (B), which provides that a month to month residential lease may be terminated by a landlord or tenant by giving at least thirty (30) days written notice prior to the periodic rental date (that is, the first calendar of each month) specified in the notice. In case of nonpayment of rent, notice is not required. 4. RENT: Tenant shall pay to Landlord for leasing the Premises the sum of $ per month, plus applicable tax, hereinafter referred to as "Rent", in advance, without demand, offset (except as permitted by law), or notice, at or before 5:00 p.m. on the first (1st) day of each calendar month during the Term. An equitable proration of the first (1st) month's Rent shall be made if the Effective is other than the first (1st) day of a calendar month Tenant agrees that Landlord may adjust the Rent for the Premises at any time during the Term by giving Tenant written notice of the adjustment at least thirty (30) days prior to the periodic rental date specified in the notice For any portion of the Term during which Tenant is an employee of Landlord or any subsidiary of Landlord, Tenant by executing this Lease authorizes Landlord or any subsidiary of Landlord to deduct Rent and/or any other expense(s) and amount(s) due under this Lease from wages otherwise payable to Tenant by Landlord or any subsidiary of Landlord For any portion of the Term during which Tenant is not an employee of Landlord or any subsidiary of Landlord, or if for any reason Rent is not being payroll deducted, Tenant agrees to pay Rent and/or any other expense(s) and amount(s) under this Lease. Tenant is solely responsible for checking that all Rent deductions and expense(s) are deducted and agrees that if Rent is not deducted that prompt payment is made at the designated office of Landlord, in Morenci, Arizona, as specified in Section 5 of this Lease, Rent sent by mail, or dropped off through the night slot at Landlord s designated office, as specified in Section 5 of this Lease, after the close of business, shall not be deemed paid until it is received by Landlord. Rent must be paid with a personal check, cashiers check, certified check or money order. No cash will be accepted. Landlord reserves the right, in its sole and absolute discretion, to require the Rent to be paid only with a cashiers check, certified check or money order If Tenant s Rent is not Payroll deducted, Tenant affirms that one of the considerations for the rental rate specified above, is Resident s agreement to pay Rent when it is due. Given this, if Rent is delinquent, Tenant hereby agrees to pay an additional $5.00 per day additional rent beginning on the 6th of each month, continuing thereafter for each day until all sums owed to Landlord from Tenant have been paid in full. In addition, if demand for Rent is made through service of a Five (5) Day Rent Demand Letter, Tenant agrees to pay an additional $50.00 as additional rent for said service. If a Five (5) Day Notice has been served or if the rent is delinquent, Landlord reserves the right to demand payment in certified funds or cashiers check.

2 4.6. Landlord further reserves the right to apply any payment as Landlord sees fit i.e. past due deposits, NSF fees, property damages, etc. A charge of $35.00 shall be levied on any check returned by the bank. After the second returned check, only money orders or cashiers checks will be accepted Tenant shall pay, prior to delinquency, all taxes assessed against the personal property of Tenant located on the Premises All expenses, sums and amounts required to be paid by Tenant under this Lease (other than the Security Deposit), whether or not so designated, are hereinafter considered "Rent". 5. PLACE OF PAYMENT: Except as provided otherwise in Section 4.3, all Rent and other amounts payable to Landlord hereunder shall be paid at Landlord s office at 401 Burro Alley in Morenci, Arizona, or by registered or certified mail to Landlord at P.O. Box 245, Morenci, Arizona 85540, or at such other address as Landlord may designate from time to time by providing thirty (30) days prior written notice to Tenant. 6. SECURITY DEPOSIT; REDECORATION FEE: Tenant agrees to pay a "Security Deposit" of $, which amount shall not exceed one and one-half monthly rental. Tenant shall not be entitled to any application or refund of interest accrued on the Security Deposit If Rent has been collected beyond the date of termination, it shall be refunded to Tenant upon Tenant's demand provided the Premises are vacated on the termination date and the Premises returned to Landlord in the condition called for by this Lease and by any attached Exhibits and the Rider to Lease, Community Policies Rules and Regulations of Tenancy (the Community Policies ). Subject to compliance by Landlord and Tenant with applicable provisions of the law and anything herein to the contrary notwithstanding, upon the expiration or sooner termination of the Lease, Tenant s or Permitted Occupants personal property remaining on the Premises, or money held by Landlord, may be applied to the payment of accrued rent and the amount of damages which Landlord has suffered by reason of Tenant's noncompliance with the provisions of this Lease In the event of a default by Tenant in the performance of any obligation under this Lease, Landlord may, at Landlord's option, apply all or any part of the Security Deposit to satisfy any default of Tenant under this Lease and any expenses arising from such default, including Landlord's costs for damage, repairs, any other expenses, and unpaid rent, in that order. In accordance with A.R.S (D), within fourteen (14) days, excluding Saturdays, Sundays and other legal holidays, following the expiration or sooner termination of this Lease, Landlord s receipt of Tenant s written demand, and delivery of possession of the Premises to Landlord in the condition called for by this Lease and by any attached Exhibits or the Community Policies. Landlord shall provide Tenant with an itemized list of all deductions to the Security Deposit together with the remaining amount of Security Deposit due and payable to Tenant, if any In addition to the Security Deposit; Tenant shall pay to Landlord a separate, non-refundable re-decoration fee of $, which fee shall be used by Landlord to help defray the costs of refurbishing the Premises after the expiration of the Lease prior to occupancy of the Premises by a future tenant. 7. USE OF PREMISES: It is understood and agreed by Tenant that the Premises are to be used solely for the purpose of a private personal residence. Tenant agrees to use the Premises only for a residential purpose for the exclusive use of Tenant and the Permitted Occupants, or as otherwise noted herein No person other than Tenant and the Permitted Occupants may occupy the Premises in any capacity without in each instance obtaining the prior written consent of Landlord Guests who will be staying at the Premises for a period in excess of fourteen (14) nights in any given six (6) month period will be considered Occupants and be approved by Landlord in writing prior to agreeing to any amendment to add the guests as Permitted Occupants for an extended stay on the Premises Tenant shall not create or allow any nuisance or unsafe condition to exist on the Premises Tenant shall not permit any use of the Premises that depreciates the improvements located thereon at a rate in excess of that caused by normal and reasonable wear and tear Tenant agrees not to use or allow to be used in any manner, directly or indirectly, the Premises or any part thereof for the purpose of vending intoxicating liquors, gambling or any unlawful purpose whatsoever Tenant agrees not to keep or have on the Premises any article, substance, or thing of dangerous or explosive character that would increase the danger of fire on the Premises, or that may reasonably be considered as "hazardous" by Landlord or which would in any way affect the validity of the Standard Fire Insurance Policy of the State of Arizona or increase the premium for any insurance on the Premises that Landlord may now or hereafter elect to carry Tenant agrees not to conduct any business activity on or from the Premises without first obtaining Landlord s prior written consent, which may be withheld in Landlord s sole and absolute discretion. 8. CONDITION OF PREMISES UPON INITIAL OCCUPANCY: Tenant has examined and knows the condition of the Premises and has received the same in good order and repair except as otherwise specified on the 2

3 Move-in Inspection Form provided by Landlord to Tenant. No representation as to the condition or repair of the Premises has been made by Landlord or its agents prior to or at the execution of the Lease, other than those expressed on the Move-in Inspection Form and the Tenant Expectations of As Is Housing Form, set forth on Exhibit D, attached hereto and incorporated herein by reference and made a part of this Lease. Tenant shall have twenty-four (24) hours after the time of Tenant's initial occupancy of the Premises to give Landlord written notice of any defects or needed repairs to the Premises that have not already been noted on the Move-in Inspection Form. If no such notice is given within that time, then Tenant is conclusively presumed to have received the Premises in good order and repair. 9. MAINTENANCE; CONDITION OF PREMISES; LANDLORD OBLIGATIONS: Subject to Tenant's obligations under A.R.S. Section and pursuant to Section 10.1 below, during the Term, Landlord shall perform such repair and maintenance of the Premises as is required under the Act, defined in Section 33 below (i.e., A.R.S. Section now in effect or as hereafter amended). Landlord shall have no obligation to perform any repairs or maintenance until Tenant has given to Landlord written notice of the need therefor (except in an emergency, in which case oral notice shall suffice) and has provided Landlord reasonable access to the portion of the Premises requiring such repair or maintenance. Normal, routine maintenance of a general nature shall be the Tenant s responsibility unless approved and agreed to by Landlord s designated Property Manager by a written service order in accordance with Section below. 10. MAINTENANCE; CONDITION OF PREMISES; OBLIGATIONS: During the Term, Tenant shall and shall cause the Permitted Occupants and their respective guests and invitees to comply with the provisions of Section through , Section 22 and Section 23 below LEASE: Observe and comply with the Community Policies in effect from time to time, and/or which are attached to this Lease and incorporated herein by reference and made a part of this Lease BUILDING CODES: Observe and comply with all obligations imposed upon Tenant by applicable provisions of building codes materially affecting health and safety CLEANLINESS: Keep all aspects of the Premises in a clean, safe, and orderly condition and in as good a repair as when delivered to Tenant at the commencement of this Lease. Tenant agrees to notify Landlord immediately if the need for repair to any part of the Premises becomes apparent. Tenant further agrees not to paint, attach, or exhibit in, on or about the Premises any signs or placards, nor to alter or remove any part of the Premises' structure, equipment or fixtures, without the prior written consent of Landlord, which may be withheld in Landlord s sole and absolute discretion. Even if consented to, Tenant agrees to pay for any damages done WASTE REMOVAL: Properly dispose of all ashes, rubbish, garbage and other waste from the Premises in a clean and safe manner PLUMBING FIXTURES: Keep all plumbing fixtures in the Premises as clean as conditions permit PREMISES EQUIPMENT: Use in a reasonable manner all electrical, plumbing, sanitary, heating, ventilating, air-conditioning and other facilities and appliances in the Premises DAMAGE: Not destroy, deface, damage, or remove any part of the Premises or permit any person to do so If Tenant's willful conduct or negligence results in noncompliance with the provisions of this Lease, or applicable law, which can be remedied by repair, replacement or cleaning, Landlord reserves the right to remedy the damage caused by said willful conduct or negligence by causing the work to be done in a workmanlike manner, in which case Tenant shall pay to Landlord the actual and reasonable cost of repair, replacement or cleaning, or the fair and reasonable value thereof, immediately but no later than five (5) business days upon Landlord's presentation of an itemized bill Nothing contained herein shall in any way be deemed to require Landlord to insure or in any other manner be responsible for Tenant s personal property on or within the Premises. Tenant hereby waives all subrogation rights against Landlord arising under any policies of insurance carried by Tenant with respect to the Premises and/or the contents thereof BEHAVIOR: Conduct himself/herself and require other persons on the Premises with his/her consent to conduct themselves in a manner that will not disturb his/her neighbors' peaceful enjoyment of their premises and to ensure that no person deliberately or negligently destroys, defaces, damages, impairs, or removes any part of the Premises ACCESS-RELATED MODIFICATIONS: In compliance with 3604(f) of the Fair Housing Act, Landlord shall allow any Tenant who is a qualified individual under 3(2) of the Americans with 3

4 Disabilities Act to make reasonable access-related modifications to their private living space and common use space at Tenant's expense UTILITIES: Tenant shall furnish all utilities and/or services, including, but not limited to, electricity, gas, telephone, and cable television. Tenant shall pay a monthly trash service fee of $ per month, subject to change with thirty (30) days advance written notice, for regularly scheduled trash service. Monthly payment is due and payable at the same time and place tenant pays Rent PEST CONTROL: During the Lease Term, Tenant shall be solely responsible for all inside/outside extermination and pest control REQUEST FOR WORK: Tenant may request that any specified item of maintenance or repair for which Tenant is responsible be performed by Landlord, in which event Tenant shall pay to Landlord, or its designated agent, upon demand the cost of such repair or maintenance at Landlord s and/or its designated agent s then prevailing rates. After receiving notice from Tenant and a reasonable opportunity to obtain the necessary workmen and material therefor, Landlord shall perform the requested item of repair or maintenance. Landlord shall, upon request by Tenant, furnish to Tenant the estimated cost to complete the item or repair or maintenance at Landlord s then prevailing rates. 11. LEAD-BASED PAINT DISCLOSURE: In compliance with the U.S. Department of Housing and Urban Development, disclosure of any known lead-based paint or lead-based hazards is made part of this Lease. See Exhibit A, attached hereto and incorporated herein by this reference. 12. ACCESS FOR INSPECTIONS & REPAIRS: In addition, Landlord or its authorized agent and representative may, at reasonable and proper times, and with no less than a forty-eight (48) hour notice, except in the case of emergency or if it is impractical to give forty-eight (48) hours prior notice, enter the Premises to inspect, make necessary repairs, alterations, provide preventative maintenance, make improvements or otherwise allowed under the Act, defined in Section 33 below, supply necessary or agreed to services, or to exhibit the Premises to workmen, or contractors as permitted by the Act, inclusive. 13. ASSIGNMENT AND SUBLETTING: Tenant agrees not to assign this Lease, or any interest herein, and shall not sublet the Premises or any part thereof or any right or privilege appurtenant thereto. Any such attempt at assignment or subletting without obtaining the prior written consent of Landlord, which consent may be withheld, conditioned or delayed in Landlord s sole and absolute discretion, shall be void. Should Landlord give consent, the terms, covenants and conditions of this Lease shall otherwise be binding upon, and inure to the benefit of the heirs, personal representative, and successors and assigns of the parties, but nothing herein shall release Tenant of any of its obligations or liabilities under this Lease. It is understood that Landlord may assign, convey or otherwise transfer Landlord's ownership of the Premises or any portion thereof, and all right, title and interest therein, as well as Landlord's interest in and to this Lease, in its sole discretion without consent of Tenant. 14. ABANDONMENT: If Tenant fails to continually occupy the Premises for seven (7) days after allowing the Rent for the Premises to be outstanding and unpaid for ten (10) days, and there is no reasonable evidence, other than the presence of Tenant's personal property, that Tenant is occupying the Premises, the Premises shall be deemed abandoned. The Premises shall also be deemed abandoned if Tenant is absent for five (5) days, Rent is outstanding and unpaid for five (5) days, and there is none of Tenant s personal property in the Premises. If the Premises are deemed abandoned, Landlord, after complying with the notice requirement of A.R.S , may immediately retake possession of Premises and re-rent the Premises. The Security Deposit held by Landlord at the time of retaking possession of the Premises shall be deemed forfeited and shall be applied to any accrued Rent or other reasonable costs due. Landlord may also remove all personal property left by Tenant after notifying Tenant. In accordance with A.R.S , Landlord shall also be entitled to dispose of Tenant s personal property if Tenant does not make a reasonable effort to recover said personal property within ten (10) days of the first rental due date occurring after Landlord's declaration of abandonment, or should Landlord determine that the value of the personal property is less than the cost to store and move said personal property, Landlord may dispose of the personal property without further notice to Tenant. 15. OPTION TO RENEW/RENT INCREASE: Intentionally Reserved by Landlord. 16. HOLDING OVER: If Tenant remains in possession without Landlord's consent termination of the Lease, Landlord may bring an action for possession and, if Tenant's holdover is willful and not in good faith, Landlord, in addition, may recover an amount equal to the equivalent of two (2) months' periodic rent, or twice the actual damages sustained by Landlord, whichever is greater. If Landlord consents to Tenant's continued occupancy, the holding over after termination of the Lease shall be construed to be a tenancy from month-to-month, at the same rental rate per month in effect on the date of the expiration or termination of this Lease, which rental rate may be increased by Landlord pursuant to the provisions of Section 4 above, and shall otherwise be on the terms and conditions herein specified, so far as applicable. If Tenant s continued occupancy is without Landlord s prior written consent, Tenant shall be liable for all damages as prescribed by Law. 4

5 17. VACATING/SURRENDER OF PREMISES PROCEDURE: Tenant shall vacate the Premises upon the termination of this Lease, leaving the Premises in the same condition as upon initial occupancy, normal wear and tear accepted, and shall deliver the keys to the Premises to Landlord. In compliance with the provisions of A.R.S , Tenant is hereby notified that Tenant may be present during the Move-out Inspection if prior written request is made by Tenant to Landlord. The collection or acceptance by Landlord of any Rent remaining due at the time of termination, or to become due after such notice has been given, shall not affect the right of Landlord to recover possession of the Premises under such notice. 18. FIRE OR CASUALTY DAMAGE: If during the Term the Premises are substantially damaged or destroyed by fire or casualty and it is determined by mutual consent of Landlord and Tenant that enjoyment of the Premises is substantially impaired, Tenant may do either of the following: 18.1 Immediately vacate the Premises and notify Landlord in writing within fourteen (14) days thereafter of Tenant's intention to terminate the Lease, in which case the Lease terminates as of the date of vacating If continued occupancy is lawful, vacate any part of the Premises rendered unusable by the fire or casualty, in which case Tenant's liability for Rent shall be reduced in proportion to the diminution in the fair rental value of the Premises If the Lease is terminated, Landlord shall return all, or such portion, of the Security Deposit recoverable under applicable law. Landlord shall provide an accounting for Rent in the event of termination or, if apportionment is to occur, as of the date Tenant vacates all or part of the Premises It is understood that if during the Term the Premises are damaged or destroyed by fire or casualty due to fault or neglect on the part of Tenant, the foregoing provisions are inapplicable and Landlord may resort to the rights and remedies hereunder and under applicable law, including without limiting the generality of the foregoing, the right to recover money damages from Tenant. 19. INSURANCE: Tenant s obligation under this Lease shall be to provide and maintain throughout the Term of this Lease, insurance coverage for the Tenants personal property and liability insurance for damage to the Premises through misuse, accident or neglect, in an amount sufficient to cover the full value of all items and damages. If Tenant fails to comply with this paragraph, Tenant agrees to hold Landlord harmless for any damage to Tenant s property or of others, which may be caused by accident, natural or other causes, or neglect. INITIALS INITIALS 20. HOLD HARMLESS: Tenant shall indemnify, defend, protect and hold Landlord and its parent, subsidiary and affiliated companies and their respective agents, officers, directors, employees, representatives and shareholders, harmless from and against all liabilities, obligations, losses, damages, penalties, claims, actions, suits, costs, charges and expenses, including reasonable attorneys' fees, which may be imposed upon, incurred by or asserted against Landlord arising from (a) any use or condition of the Premises by or attributable to Tenant or the Permitted Occupants or their respective agents, family members, invitees, or guests; (b) Tenant's breach of or default under this Lease; or (c) any harm to Tenant s Permitted Occupants, guests, or invitees occurring on or about the Premises. If any action or proceeding shall be brought against Landlord by reason of such claim, then Tenant, upon ten (10) days' written notice from Landlord, shall defend the same, at Tenant's sole cost and expense. Landlord shall not be liable for any damage to or theft of any personal property, goods, commodities or materials on or about the Premises. 21. NOTICES: All notices to be given to Tenant will be personally delivered by hand, posted at the residence and mailed by registered or certified mail to the place held out by him as the place for receipt of communication, or in the absence of such designation, to Tenant's last known place of residence. All notices to be given to Landlord may be personally delivered by hand to Landlord s Office in Morenci, Arizona, or mailed by registered or certified mail to Landlord at P.O. Box 245, Morenci, Arizona T 22. he foregoing shall be the only acceptable means of notifying the other party. 23. POSSESSION AND QUIET ENJOYMENT: Subject to the timely performance by Tenant of all of its obligations under this Lease, Tenant shall be entitled to possession and quiet enjoyment of the Premises during the Term, without interruption by Landlord or any person lawfully claiming by, through or under Landlord. 24. AND PERMITTED OCCUPANT BEHAVIOR: Tenant and Permitted Occupants shall obey all lawful orders, rules and regulations of all government authorities and conform to the Community Policies attached hereto and made a part of this Lease. Tenant and Permitted Occupants hereby agree to comply with the terms and conditions provided in the "Crime Free Lease Addendum" set forth in Exhibit B, attached hereto and incorporated herein by this reference. Tenant and Permitted Occupants hereby acknowledge that violation of the Crime Free Lease Addendum may also subject Tenant and/or the Permitted Occupant, as determined by Landlord, to Landlord s No Trespass Policy for the Morenci Townsite as summarized on Schedule 1 to the Crime Free Lease Addendum. 5

6 Moreover, Tenant hereby agrees that Tenant s, Tenant s Permitted Occupants, and/or their guests' failure to comply with the terms and conditions provided in the Crime Free Lease Addendum shall be grounds for the immediate termination of this Lease. 25. BEHAVIOR OF GUEST(S) OF OR PERMITTED OCCUPANT: Tenant also agrees to require other persons on the Premises with his/her consent, or with the consent of Tenant s Permitted Occupants, to conduct themselves in a manner that will not disturb his/her neighbors peaceful enjoyment of their premises and the community, to insure that no person deliberately or negligently destroys, defaces, damages, impairs, or removes any part of the Premises, to obey all lawful order, rules and regulations of all government authorities, and to comply with the Community Policies and the Crime Free Lease Addendum. 26. SECURITY: Tenant hereby agrees and acknowledges that Landlord shall not provide and shall have no duty to provide any security services to Tenant or the community. Tenant shall look solely to the public police force for security protection and Tenant agrees and acknowledges that protection against criminal action is not within the power of Landlord, and should Landlord provide security services from time to time, those services cannot be relied upon by Tenant and shall not constitute a waiver of this provision or any other provision of this Lease, or in any manner modify this Lease. Landlord shall not be liable for failure to provide adequate security services or for criminal or wrongful actions by others against Tenant, Tenant's relatives, the Permitted Occupants, or Tenant's guests. 27. PETS: Except as provided in 3604(f) of the Fair Housing Act, and as required under the applicable provisions of the Americans with Disabilities Act, Tenant will not keep or allow in, on or about the Premises any live animals, birds or reptiles without the prior written approval from Landlord. Tenant further assumes full responsibility for each of Tenant s or Tenant s Permitted Occupants pet s actions and whereabouts at all times in accordance with the Community Policies attached hereto. Tenant further agrees to sign a "Pet Residency Agreement" substantially in the form of Exhibit C, attached hereto and incorporated herein by this reference, with respect to each and every approved pet. In no event will Tenant be allowed to keep in, on or about the Premises animals commonly referred to as "exotic pets" or "livestock" or "farm animals". 28. CONNECTIONS TO UTILITY SYSTEMS: Tenant shall not alter or make any connections to the electrical, plumbing, sanitary, heating, propane or ventilating systems or facilities on the Premises (other than plugging usual household appliances and equipment into existing electrical outlets and attaching garden hoses to existing water spigots), regardless of whether such connection is altered or made by Tenant or by another person for Tenant, unless Tenant first reports and describes to Landlord (in person at the Community Services office) the work to be done and Landlord consents to such work. Landlord may withhold its consent to any proposed alteration or connection for any reason whatsoever or may condition its consent upon certain requirements, including without limitation, requiring that the work be done by Landlord at Tenant's expense. In accordance with this Lease, Landlord shall have the right, but not the obligation, to enter the Premises to inspect any or all of the foregoing utility systems, and if upon inspection Landlord finds defective or unsafe alterations or connections, Tenant shall immediately, and at Tenant's cost, repair and correct the defect. If Tenant fails to do so within a reasonable time, or if Landlord finds any unauthorized alterations or connections, Landlord shall have the right, but not the obligation, to come upon the Premises and perform the work necessary to correct the defect or remove the unauthorized alteration or connection, and Tenant shall immediately upon demand reimburse Landlord for the actual cost of the work or the reasonable value thereof, whichever Landlord shall elect. Tenant shall also comply with the terms and conditions of the "Propane Hook-up Procedures and Policies" set forth in Exhibit E, attached hereto and incorporated herein by this reference. 29. HEADINGS: The headings and titles to the sections of this Lease are not a part of this Lease and shall have no effect on the construction or interpretation of any part hereof. 30. PREVIOUS AGREEMENTS: This Lease supersedes all previous leases and agreements, whether written or oral, relating to the same subject matter between Landlord and Tenant for the lease of the Premises described herein. 31. POLICIES: The Community Policies are attached as a Rider hereto, and are made a part of, this Lease. Tenant agrees to abide by the Community Policies as they are presently constituted, or as the same may be modified from time to time. Tenant acknowledges receipt of a copy of the Community Policies attached hereto and labeled as "Rider to Lease Community Policies Rules and Regulations of Tenancy". Any modification of the Community Policies shall be effective and binding upon Tenant thirty (30) days from the date written notice of such modifications is distributed to Tenant. It shall also be sufficient notice to Tenant if any such notice of modification of the rules and regulations is posted for thirty (30) continuous days in a conspicuous place within the common area of the Community Services office. 32. ENFORCEMENT; ATTORNEYS FEES: If Tenant fails to perform or abide by any of the terms of this Lease, such failure shall constitute a default and breach of this Lease. Landlord may then give Tenant written notice of such breach as required by the Act. If Tenant fails to correct the breach within the time set forth in the notice, in addition to Landlord s other rights and remedies available at law and in equity, Landlord may declare the Lease terminated due to the breach and may seek to evict Tenant from the Premises and recover the Rent due and yet to become due hereunder. The unsuccessful party in such an action or proceeding shall be liable to the prevailing party for reasonable costs, expenses, attorney fees, and collection costs, all of which shall be collectable whether or not such action is prosecuted to judgment. 6

7 33. ARIZONA RESIDENTIAL LANDLORD ACT: This Lease is governed by the laws of the State of Arizona and is intended to comply with the terms of the Arizona Residential Landlord Tenant Act (A.R.S through , inclusive, as may be amended from time to time (the Act )) and each of the parties hereto acknowledges that it is bound by the provisions thereof. To the extent that the terms hereof are allowed to modify the provisions of said Act, the terms hereof shall control as to conflicting language. 34. SEVERABILITY: If any provision of this Lease shall be deemed invalid or unenforceable, the remainder of this Lease shall nevertheless be and remain valid, binding and enforceable to the fullest extent permitted by law. 35. EMERGENCY REPAIRS: If Tenant fails to comply with its obligations set forth in Section 10 of this Lease, and Tenant s failure materially affects health and safety that can be remedied by repair, replacement of a damaged item or cleaning, and Tenant fails to comply as conditions require in case of an emergency or within fourteen (14) days after receiving written notice from Landlord specifying the breach and requesting Tenant to remedy it within that period of time, in addition to terminating this Lease, Landlord may, but is not obligated to, enter the Premises and cause the work to be done. Upon written demand from Landlord and receipt of an itemized bill for the actual and reasonable cost of the work performed (the Repair Costs ), Tenant shall pay the Repair Costs as additional rent on the next date when Rent is due, or if this Lease has been terminated, for immediate payment. 36. DISCLOSURE: In compliance with the provision A.R.S , Landlord does hereby disclose to Tenant the following: (a) The Management Company authorized to manage the Premises is: Name: Freeport-McMoRan Morenci Inc. Address: 401 Burro Alley Morenci, Arizona Attn: Rental Department Telephone Number: (928) (b) (c) The agency authorized for purposes of receiving service of process is: Freeport-McMoRan Morenci, Inc. c/o Freeport McMoRan Corporation, Attn: Land & Water Department, 333 North Central Avenue, Phoenix, Arizona The agency authorized for receiving notices and demands under this Lease is: Freeport-McMoRan Morenci Inc., Attn: Rental Department, 401 Burro Alley P.O. Box 245, Morenci, Arizona Tenant can obtain a free copy of the Act through the Office of the Arizona Secretary of State. 37. EMERGENCY NUMBER: In the event of a non-life threatening emergency involving the Premises, or after hours matter, Tenant may call the Security Mine Gate at (928) In the event of a life-threatening emergency, Tenant, Permitted Occupant or their guests should call AGREEMENT/ACKNOWLEDGMENT/ACCEPTANCE: I,, as Tenant, have read and agree to the entirety of the foregoing Lease, which includes the attached Community Policies and Rules and Regulations of Tenancy in effect from time to time, Pet Residency Agreement, Crime Free Lease Addendum, the No Trespass Policy for violators of the Crime Free Lease Addendum, and if applicable, any additional Exhibits, Schedules and Addenda or Riders. I understand that this Lease and the attachments embody the entire agreement and understanding between Landlord and Tenant and that there are no written agreements, understandings, conditions or representations, oral or written, express or implied, with reference to the subject matter thereof that are not merged herein or superseded hereby. I understand and agree to live within the spirit and the letter of this Lease, and also acknowledge that all blank spaces have been accurately filled in or are otherwise marked "n/a (not applicable)". [SIGNATURES APPEAR ON NEXT PAGE.] 7

8 : and LANDLORD: Freeport-McMoRan Morenci Inc., a Delaware corporation Name: Title: : ACKNOWLEDGES RECEIPT OF A COPY OF THIS LEASE Tenant s Initials: Tenant s Initials: [Signature Page to Morenci Townsite Residential Lease Agreement.] 8

9 EXHIBIT A LEAD-BASED PAINT DISCLOSURE LEAD-BASED PAINT WARNING STATEMENT Housing built before 1978 may contain lead-based paint. Lead from paint, paint chips, and dust can pose health hazards if not managed properly. Lead exposure is especially harmful to young children and pregnant women. Before renting pre 1978 housing, lessors must disclose the presence of lead-based paint and/or lead-based paint hazards in the dwelling. Lessees must also receive a federally approved pamphlet on lead poisoning prevention. [1] Morenci s Lead-Based Paint Disclosure also lists two tenant acknowledgements; that Morenci has: (1) disclosed to Tenant that the Premises may have been built prior to 1978 and that the Premises or a portion thereof may have been painted with a lead-based paint. (However, neither Landlord nor Landlord s Property Manager has conducted a risk assessment or investigation of the Property for lead-based paint, and do not have any risk assessments or reports in their possession); and (2) provided Tenant with a 2-day period in which to conduct a risk-assessment or inspect the Premises for lead-based paint hazards. Tenant expressly acknowledges review of the Lead-Based Paint Warning Statement and agrees that Landlord and Landlord s Property Manager have complied with the requirements of 42 U.S.C.A. 4852d set forth above as evidenced by Tenant s initials below. EXHIBIT B CRIME FREE LEASE ADDENDUM 9

10 In consideration of the execution or renewal of a Lease of the Premises identified in the Lease, Landlord and Tenant agree as follows: Tenant, Permitted Occupants, any member(s) of Tenant s household, a guest or any other person affiliated with Tenant at or near the Premises shall not engage in criminal activity, including drug-related criminal activity, on or near the said Premises. Drug-related criminal activity means the illegal manufacture, sale, distribution, use, or possession with intent to manufacture, sell, distribute, or use of a Controlled Substance (as defined in Section 102 of the Controlled Substance Act [21 U.S.C. 802] or in A.R.S ). In addition, Tenant, Permitted Occupants, any member(s) of Tenant s household, a guest or any other person affiliated with Tenant on or about the Premises: 1. Shall not engage in any act intended to facilitate criminal activity. 2. Will not permit the Premises to be used for, or to facilitate criminal activity. 3. Shall not engage in the unlawful manufacture, selling, transferring, possessing, using, or storing of a Controlled Substance (as defined in A.R.S ). 4. Shall not engage in any illegal activity, including, but not limited to: (a) an illegal discharge of a weapon; (b) homicide as defined in A.R.S through ; (c) prostitution as defined in A.R.S ; (d) criminal street gang activity as prescribed in A.R.S ; (e) participation in a criminal syndication or other activity as prohibited in A.R.S ; (f) threatening or intimidating as prohibited in A.R.S ; (g) assault as prohibited in A.R.S ; (h) acts that have been found to constitute a nuisance pursuant to A.R.S ; or (i) a breach of the lease agreement that otherwise jeopardizes the health, safety and welfare of the landlord, the landlord's agent or another tenant or involving imminent or actual serious property damage, all as provided for under A.R.S VIOLATION OF THE ABOVE PROVISIONS SHALL BE A MATERIAL AND IRREPARABLE VIOLATION OF THE LEASE AND GOOD CAUSE FOR IMMEDIATE TERMINATION OF TENANCY. A single violation of any of the provisions of this added addendum shall be deemed a serious violation and a material and irreparable non-compliance. All tenants and or occupants over the age of 18 must fill out a rental application and pass a background check to be approved to live in the Townsite of Morenci. It is understood that a single violation of any crimes involving murder, rapes, indecency with children, and child endangerment will result in an immediate termination of this Lease and ejection from the Townsite of Morenci. Applicants with multiple misdemeanors could also be denied housing as well ejected from the Townsite of Morenci depending on the severity of charges, and thereafter be deemed a trespasser. It is understood that a single violation shall be good cause for immediate termination of the lease under A.R.S , as provided in A.R.S Unless otherwise provided by law, proof of violation shall not require criminal conviction, but shall be by a preponderance of the evidence. Notwithstanding the foregoing provisions, Tenant, if the victim of domestic violence, may terminate the Lease pursuant to A.R.S. Section In case of a conflict between the provisions of this Crime Free Lease Addendum and any other provisions of the Lease, the provisions of this Addendum shall govern, subject to the applicable Arizona law. This CRIME FREE LEASE ADDENDUM is incorporated into the Lease executed or renewed this day between Landlord and Tenant. 10

11 Schedule 1 Summary of No Trespass Policy I. Notice of No Trespass Policy. Landlord has adopted a no trespass policy (the Policy ) in an effort to enhance the health, safety and welfare of Landlord s employees, Tenants and such Tenant s Permitted Occupants within the Morenci Townsite Property, and to further all Morenci Townsite residents right to quiet enjoyment under their respective Leases. Tenant or Tenant s Permitted Occupants that violate the terms of the Crime Free Lease Addendum to their respective Lease are subject to the Policy. II. Definitions A. Authorized Persons. Landlord owns the Morenci Townsite (hereafter the Morenci Townsite Property ) and entrance is restricted to those Tenant(s) and such Tenant s Permitted Occupants under such Tenant s valid existing Lease, as well as other authorized visitors and guests in accordance with the Lease ( Authorized Person(s) ). In addition, Landlord s commissioners, representative agents, and contractors, as well as, law enforcement officials carrying out official business are authorized to enter the Morenci Townsite Property. B. Trespasser. Any Authorized Person(s) who has violated the terms of the Crime Free Lease Addendum to the Lease or is otherwise determined by authorized Landlord personnel or local law enforcement officers to engage in activities that threaten the health, safety, welfare and/or right to peaceful enjoyment of other persons on or about the Morenci Townsite Property shall be deemed a trespasser as defined by A.R.S. Sections , or (a Trespasser ) under the Policy. Thereafter, authorized Landlord personnel and local law enforcement may prohibit any Trespasser from entering Morenci Townsite Property in accordance with this Policy. III. Procedure A. Trespass Determination. As determined by Landlord s designated Rental Department personnel (hereafter Authorized Agent ) or local law enforcement, any person who violates the terms of the Crime Free Lease Addendum to the Lease or has engaged in an activity that threatens the health, safety, welfare and/or right to peaceful enjoyment of another person(s) on and about the Morenci Townsite Property, may be deemed a Trespasser and prohibited from entering the Morenci Townsite Property. A Trespasser may be subject to arrest by local law enforcement in accordance A.R.S. Sections , or B. The Authorized Agent shall notify any identified Trespasser in writing (or orally followed up by written notice) (the Trespass Letter ). The Trespass Letter shall serve as formal notice of a violation of the Policy and that the Trespasser is prohibited from entering the Morenci Townsite Property for the period set forth therein. Unless successfully appealed (in accordance with the procedure set forth below), the Trespasser shall be placed and remain on the Authorized Agent s list of identified Trespassers (the Trespass List ) whose leasehold interest (if any) shall be immediately terminated in accordance with the Lease. 1. The Trespass Letter shall, among other things, set forth: (a) the full name and address of the Trespasser; (b) the office contact information for the Authorized Agent issuing the Trespass Letter; (c) the reason(s) the identified person has been determined to be a Trespasser and the length of period for which the Trespasser shall be prohibited from entering the Morenci Townsite Property in accordance with this Policy; and (d) an explanation of the appeal process related to the Authorized Agent s determination that a person is a Trespasser, which appeal must be received by the Authorized Agent within thirty (30) days from the date of the Trespass Letter. 2. The Authorized Agent shall send the Trespass Letter to the Trespasser s last known address via certified mail, return receipt requested. In addition, the Authorized Agent may undertake reasonable efforts, but is not required, to notify and hand deliver a copy of the Trespass Letter to the Trespasser. Further, the Authorized Agent shall use reasonable efforts to notify any other Permitted Occupants under the Lease by regular mail. 3. In the event that the Trespasser is a juvenile, the Authorized Agent shall make a reasonable effort, but is not required, to deliver a copy of the Trespass Letter to the Trespasser s parent(s) or known legal guardian(s) by regular mail to the address specified in the Lease or other last known address. 4. The Authorized Agent has discretion to determine the period for which the Trespasser shall be prohibited from returning to the Morenci Townsite Property. Notwithstanding, the minimum period of prohibition of entry shall be one (1) year from the Authorized Agent s determination and the maximum period shall be for the life of the Trespasser dependent upon the seriousness of the breach of the Crime Free Lease Addendum or other activity that threatens the health, safety, welfare and/or right of peaceful enjoyment of other person(s) on or about the Morenci Townsite Property as set forth below. The duration of prohibition of entry shall also be subject to appeal as set forth herein. 11

12 Offense Homicide Sex offense subject to lifetime registration Period of Prohibited Entry lifetime lifetime Manufacture or production of illegal drugs on the Premises lifetime 5. Dependent on relevant circumstances, deemed Trespassers may continue to be employed by Landlord or Landlord s affiliates. In such cases, the Trespasser may arrive on the Morenci Townsite Property one (1) hour prior to night shift and one (1) hour after day shift solely for purposes of utilization of common areas of the Morenci Townsite Property (limited to Bashas, the U.S. Post Office and licensed eating establishments, including gas stations). Other appropriate restrictive conditions determined by the Authorized Agent may be applicable as set forth in the Trespass Letter. 6. In extenuating circumstances and for good cause shown (including advance written requests for visitation from other Morenci Townsite residents who are Permitted Occupants under the applicable Leases), the Authorized Agent may permit a Trespasser to enter certain the Morenci Townsite Property under restrictive conditions for overnight visits which shall not exceed fourteen (14) overnight stays in any twelve (12) consecutive month period. Such permission can be revoked at any time if any restrictive conditions are violated or further conduct that would otherwise be in violation of the Crime Free Lease Addendum occurs. IV. Appeal Process Upon a determination of Trespass by the Authorized Agent, the Trespasser shall have the right to request an appeal of the determination and subsequent removal from the Trespass List. A. Any appeal of the Authorized Agent s Trespass determination must be submitted in writing by the Trespasser to the Authorized Agent within thirty (30) calendar days of the date of the Trespass Letter. The Authorized Agent, together with another property manager from the Landlord s Rental Department and at least three (3) other designated Landlord management personnel (the Appeal Board ) shall review the appeal and make a determination based on any relevant submitted written information as to whether to affirm the determination of the Trespasser, rescind the determination and/or modify the prohibition of entry period and/or to permit a Trespasser s limited visitations to the Morenci Townsite Property. The determination of the Appeal Board shall be final. B. The Appeal Board will review each appeal in an open meeting forum during which the appellant and any desired appellant witness(s) may be present to participate within thirty (30) days of receipt of the written appeal. Prior to the meeting, the appellant shall provide the Appeal Board with any relevant: (1) documents; and/or (2) witness statements. C. The Appeal Board will make a final determination that will be provided to the appellant in writing within thirty (30) days of the Appeal Board meeting. V. Removal from the Trespass List. Trespassers placed on the Trespass List may not be removed by anyone except the Authorized Agent and/or the Appeal Board, as appropriate, in a written letter to the Trespasser. If it is the determination of the Appeal Board to remove the Trespasser from the Trespass List, the Authorized Agent shall remove him/her from the Trespass List immediately but shall retain discretion to do so on a probationary basis depending on relevant circumstances as may be determined by the Appeal Board. As evidenced by his or her signature below, Tenant agrees to the terms and conditions of the foregoing Policy, as may be amended by Landlord from time to time in a prior written notice to Tenant, and understands that violation of the Crime Free Lease Addendum and/or the terms of the Policy may subject Tenant or Tenant s Permitted Occupants to enforcement of the Policy. 12